Friday, February 6, 2015

GREECE: Τιτάν: Ανακοίνωση

Η θυγατρική του Ομίλου Alvacim Ltd εξαγόρασε το 20% των μετοχών της θυγατρικής του Ομίλου στην Αλβανία AΝΤΕΑ CEMENT SHA (ΑΝΤΕΑ), ποσοστό που κατείχε η European Bank for Reconstruction and Development (ΕBRD). Έτσι, η συμμετοχή του Ομίλου ΤΙΤΑΝ στο μετοχικό κεφάλαιο της ΑΝΤΕΑ ανέρχεται σε ποσοστό 80% ενώ το υπόλοιπο 20% διατηρεί η International Finance Corporation (IFC).

Ο Όμιλος ΤΙΤΑΝ είναι ένας ανεξάρτητος παραγωγός τσιμέντου και άλλων δομικών υλικών με περισσότερα από 100 χρόνια βιομηχανικής εμπειρίας. Έχοντας έδρα την Ελλάδα, διαθέτει εργοστάσια παραγωγής τσιμέντου σε εννέα χώρες και είναι οργανωμένος σε τέσσερις γεωγραφικούς τομείς: Ελλάδα και Δυτική Ευρώπη, ΗΠΑ, Νοτιοανατολική Ευρώπη και Ανατολική Μεσόγειο. Καθ΄ όλη την διάρκεια της ιστορίας του, ο Όμιλος ΤΙΤΑΝ επιδίωξε να συνδυάσει τη λειτουργική αρτιότητα με το σεβασμό στον άνθρωπο, την κοινωνία και το περιβάλλον.

Το 2013 πούλησε 17,2 εκ. τόνους τσιμέντου και υλικών με παρεμφερείς ιδιότητες, 3,4 εκ. μ3 ετοίμου σκυροδέματος, 12,3 εκ. τόνους αδρανών υλικών και διάφορα ακόμη οικοδομικά υλικά όπως τσιμεντόλιθους, έτοιμα κονιάματα κλπ.

Λεπτομερή οικονομικά και άλλα στοιχεία παρέχονται στην ιστοσελίδα του Ομίλου ΤΙΤΑΝ με διεύθυνση: www.titan-cement.com

Η ανωτέρω ανακοίνωση κοινοποιήθηκε στο Χ.Α. και στην Επιτροπή Κεφαλαιαγοράς και βρίσκεται αναρτημένη στην ιστοσελίδα του Χ.Α.

ITALY: Pesenti, puntiamo a merger in Asia e Africa

Gruppo volta pagina su Holcim-Lafarge dopo mega offerta Crh (Il Sole 24 Ore Radiocor) - Milano, 05 feb - "L'offerta di Crh (gruppo irlandese, ndr) sugli asset di Holcim-Lafarge non ci sorprende, le valutazioni fatte sono molto alte, oltre il range piu' alto che ci saremmo aspettati, con multipli di 8,5. Per noi non e' cambiato lo scenario industriale, anzi ci sono opportunita' da cogliere e abbiamo come obiettivo l'Asia e una priorita' per l'Africa Subsahariana, noi siamo nel Nord Africa e dobbiamo posizionarci piu' al sud". e' quanto ha riferito Carlo Pesenti, consigliere delgato del gruppo Italcementi, in merito agli obiettivi di M&A del gruppo.

Pesenti ha quindi ribadito l'interesse ad una campagna acquisti, qualora si presentasse l'opportunita', in aree geografiche dove Italcementi punta ad espandersi, girando quindi pagina sulle eventuali opportunita' che potevano emergere dalla fusione dei gruppo cementieri Holcim e Lafarge.

MEXICO: Cemex buscará vender activos por hasta 1,500 mdd

La mexicana Cemex, una de las mayores cementeras del mundo, anunció este jueves un plan de reducción de costos y venta de activos que busca mejorar su estructura financiera y reducir su deuda en busca de recuperar su grado de inversión, luego de presentar resultados mixtos del cuarto trimestre.

En una presentación en Internet, Cemex dijo que espera generar 300 millones de dólares este año en reducción de costos y gastos financieros, así como vender activos por entre 1,000 y 1,500 millones de dólares, en los próximos 12 a 18 meses.

Cemex, que el año pasado vendió activos por 250 millones de dólares, detalló que el plan de desinversiones incluye desde la venta de activos no estratégicos hasta emitir acciones de alguna de sus unidades de negocios, como lo hicieron con sus operaciones latinoamericanas.

El director general de Cemex, Fernando González, explicó en una conferencia vía Internet que la prioridad de la compañía es recuperar la estructura de capital de grado de inversión que tenía en 2007, antes de que triplicara su deuda con la compra de la australiana Rinker, y justo antes de la crisis global.

Actualmente, la cementera tiene calificaciones de riesgo crediticio de B+ por parte de las agencias Standard & Poor's y Fitch, cuatro niveles abajo del grado de inversión.

Y aunque, la compañía se ha estado recuperando, todavía arrastra unos 16,291 millones de dólares de deuda total, que espera reducir en la medida en que su rentabilidad vaya mejorando, apoyada en la sólida demanda por sus productos en Estados Unidos y México, sus principales mercados.

La cementera espera este año pagar al menos 500 millones de dólares de deuda e invertir 800 millones de dólares en mantenimiento y activos fijos.

Cemex, que este año tiene vencimientos de deuda por 1,203 millones de dólares, dijo que todavía tiene espacio para refinanciar pasivos con cupones superiores al 9.0%.

Además, la cementera espera que sus volúmenes de ventas de cemento crezcan este año en un dígito medio, un nivel similar al del 2014.

Los resultados del cuarto trimestre de la empresa y el anuncio de la venta de activos, dispararon las acciones de Cemex en la Bolsa mexicana. Los papeles ganaron un 13.09%, a 14.77 pesos, su mayor alza desde noviembre del 2011.

ITALY: Cementir chiude 2014 con Ebitda +13,4%, vede 2015 a 190 mln

Cementir ha chiuso il 2014 con un margine operativo lordo a 192,4 milioni di euro in crescita del 13,4% anche per benefici non ricorrenti e ha una previsione di Ebitda per il 2015 a 190 milioni circa.

Lo rende noto un comunicato diffuso al termine del cda che ha esaminato il preconsuntivo di bilancio.

Francesco Caltagirone Jr, presidente e Ad del gruppo che fa capo alla holding omonima della famiglia, ha sottolineato nella nota che il 2014 si è chiuso "con risultati operativi superiori agli obiettivi prefissati per l'anno" e con un calo del debito finanziario netto al di sotto dei 280 milioni previsti, finendo a 278,3 milioni di euro.

Nel dettaglio il margine operativo 2014, cresciuto di 22,7 milioni, ha beneficiato di componenti straordinarie per 12 milioni al netto delle quali sarebbe stato in linea con il target fissato dal management, spiega la nota.

Per l'anno in corso Cementir holding si aspetta di arrivare a un margine operativo di 190 milioni e un indebitamento ancora in calo a 230 milioni "con investimenti industriali programmati per circa 70-75 milioni", spiega la società.

Cementir prevede per il 2015 "un aumento dei volumi di vendita sia di cemento che di calcestruzzo, l'operatività delle società attive nel trattamento dei rifiuti in Turchia e UK, efficienze sui costi delle energie, oltre che effetti positivi sui costi fissi principalmente dovuti al proseguimento della riorganizzazione in Italia".

Thursday, February 5, 2015

ALGERIA: Un nouveau centre de distribution ouvert à M’Sila

Lafarge Algérie, par le biais d’un communiqué adressé ce mercredi 4 février 2015 à notre rédaction, qu’elle a procédé dans la journée du mardi 3 février à l’inauguration de son nouveau centre de distribution des matériaux de construction au niveau de la zone industrielle de M’Sila.

«Ce nouveau centre de distribution s’inscrit dans la stratégie commerciale de Lafarge Algérie de se rapprocher de l'utilisateur final, pour mettre à disposition une gamme de produits complète de grande qualité à des prix stables», a précisé le rédacteur du communiqué.

Cette nouvelle plate-forme, ajoute la même source, qui «est dotée de moyens modernes et performants afin de servir une clientèle exigeante», permet «la création de 19 nouveaux emplois et une cinquantaine d’emplois indirects».

Cet investissement de Lafarge Algérie vient de renforcer un réseau de distribution composé de neuf centres de distribution dont deux centres de conditionnement.

Rappelons que le groupe français Lafarge, 2ème producteur de matériaux de construction à savoir le ciment, plâtre, granulats et béton en Algérie, possède deux cimenteries à M’Sila et Oggaz (Mascara) avec une capacité totale de production de 8,6 millions de tonnes par an et gère également en partenariat avec GICA la cimenterie de Meftah.

Le groupe qui compte également 25 centres de production de béton d’une capacité d’un millions de mètres cube vient de lancer la première enseigne de supermarché de matériaux de construction Batistore, «permettant un accès stable aux matériaux de construction en qualité, choix et à des prix adorables».

WORLD: Vicat voit son CA bondir de 8%

Le cimentier Vicat termine l’année 2014 avec un chiffre d’affaires en progression de 8%, une bonne nouvelle due entre autres à la croissance soutenue de son activité en Inde et au Kazakhstan ainsi qu’à la solidité de sa situation financière.

Le groupe Vicat affiche donc un chiffre d’affaires consolidé 2014 de 2,4 milliards d’euros, soit une hausse de 8% en comparaison à la même période un an plus tôt, à périmètre et taux de change constants. Ces bons résultats s’expliquent par une croissance importante enregistrée en Inde et au Kazakhstan et à un redressement de l’activité en Egypte et aux Etats-Unis. Cependant, bien que le groupe Vicat dispose d’une situation financière robuste, le contexte macro-économique particulièrement difficile en France perturbe l’activité du cimentier dans l’Hexagone.

Les résultats de Vicat se décomposent comme suit : l’activité ciment s’envole avec une hausse de 17,7%, pendant que la branche "Béton & granulats" recule de 1,5% ; le segment "Autres produits et services" se maintient avec une timide hausse de 0,3%. C’est désormais l’activité ciment qui pèse le plus lourd dans le chiffre d’affaires total du groupe (53,7%), derrière le béton et les granulats (31,9%) puis les "Autres produits et services" (14,4%).

SAUDI ARABIA: Saudi cement makers seek resumption of exports

Saudi cement manufacturers are talking to the government to resume exports after lower demand in the second half of 2014 created a surplus of nearly 22 million tonnes, a newspaper in the Gulf Kingdom reported on Tuesday.

“We will again meet with ministry of trade and industry officials to discuss the resumption of cement exports,” chairman of the national committee of Saudi cement companies Jihad Al Rasheed told the Arabic language daily ‘Al Eqtisadiah.’

He said previous talks have made progress and that the committee received ‘positive signals’ from the government to allow cement producers to export their surplus.

Al Rasheed said a seasonal decline in local demand in the second half created a cement output surplus of nearly 22 million tonnes.

But he expected consumption to recover to about 35 million tonnes in the first half of this year, adding that this would allow cement factories to boost sales.

He told the paper that markets to be targeted by cement exporters include Egypt, Yemen, Iraq, Sudan, Ethiopia and Eritrea.

The paper quoted an unnamed manager of a local cement company as saying the trade and industry ministry feared that allowing cement manufacturers to resume exports would create a deficit in the domestic market.

“We believe the government should allow us to export in the second half when there is a surplus in production due to lower demand. The government should allow cement companies to export during that period so they can dispose of their surplus,” he said.

PHILIPPINES: Cement makers to raise prices

Cement companies are set to raise prices by P10 per 40-kilogram bag of cement within the week, at the start of the peak period for construction activities.

Three cement companies issued separate advisories to their distributors about the impending price hike for cement products.

Cemex Corp., La Farge Cement Corp. and Eagle Cement are poised to increase cement prices at the earliest possible time this week, according to the advisories.

Cemex’s Rizal cement currently sells for P198 per bag while Lafarge’s Republic brand sells at P197. Eagle Cement sells its product at P193 per bag.

Concerned cement companies could not be reached for comment as of press time.

Holcim Cement, which has yet to issue an advisory, said “prices normally move up and down depending on the season and usually summer is the peak of construction season.”

The planned price hike ran contrary to the Trade Department’s plea to manufacturers to reduce prices based on 50-percent reduction in fuel prices.

Trade Undersecretary for consumer welfare and protection Victorio Mario Dimagiba said his office had not yet received any notice for cement price hike.

The Trade Department and manufacturers have a standing agreement that a manufacturer should inform the agency first before implementing any price adjustment.

Dimagiba said its latest price monitoring report showed that retail prices of cement actually declined. “As you know all cement brands reduced prices in November 2014 from a high of P230,” he said.

The National Price Coordinating Council will meet Tuesday to review existing supply and price situation.

The Cement Manufacturers Association of the Philippines said cement robust sales were observed in all four quarters of 2014, but the fourth-quarter figure posted the highest growth.

Cement sales climbed 9.6 percent in 2014 to 20.2 million metric tons from 19.44 million MT in 2013, on the back of healthy growth in construction.

Fourth-quarter cement sales jumped 15.7 percent to 5.21 million MT from 4.5 million MT recorded in the same period in 2013 while third-quarter sales increased 11.9 percent to 5.4 million MT from 4.8 million MT.

In the first two quarters of 2014, cement sales posted a 6-percent incremental output, reaching 10.7 million MT from 10.1 million MT in 2013.

CeMAP said the ongoing public-private partnership projects also contributed to the rise in cement demand and sales.

It said infrastructure disbursements were channeled mostly to ongoing reconstruction and rehabilitation efforts in communities devastated by typhoon Yolanda.

USA: Cement Use To Grow 8% in 2015, But Low Oil Prices Won't Help Much

Growing job markets, consumer confidence and construction spending will contribute to higher cement consumption in the U.S. this year, rising an annual 8% to 93 million metric tons (MMT), according to the Portland Cement Association. Low oil prices will provide an added financial stimulus to consumers and contractors, but immediate cutbacks in the oil field are expected to offset any long-term gains in construction activity, PCA notes.

PCA expects housing starts to rise this year to 1.2 million units as 3 million new jobs are created, driving consumer spending and demand for residential construction, which is expected to account for nearly 60% of all cement consumption in the U.S. this year.

“There is broad based, and in some cases, unbridled optimism that has been absent for a decade,” said Ed Sullivan, the trade group’s chief economist on Feb. 3 as this year’s World of Concrete show was getting underway. “What we are seeing now is the healing of deep wounds.”

The Skokie, Ill.-based PCA forecasts cement use to grow another 7.9% in 2016 to 100 MMT. The two-year forecast comes on the heels of last year’s growth of 8.2% to 86 MMT, driven largely by nonresidential construction and public works, which combined accounted for 87% of U.S. cement consumption.

Visitors to the World of Concrete reflected optimism in PCA’s cement forecast. “Everything points to the market being good for awhile,” said Glen Teel, CEO of Baltimore-based Peri Formwork Systems Inc. Unlike prior shows, the company was exhibiting outside for the first time in a larger, 2,400-sq-ft booth Peri used to showcase new lines of form panels, slab systems and protective screens.

Crude Change

Low oil prices, if they continue, will help give “a little dose of extra” to consumers’ bank accounts, translating into increased construction spending, Sullivan noted. He cited data from the Energy Information Administration forecasting oil prices to average $55 per barrel this year and $71 next year.

“Without question, lower oil prices are good for the U.S. economy,” Sullivan said. However, he warned that the stronger economic growth will take a year or more to sink in and may have little effect on new construction starts.

“The timing for that to unfold is a long process,” Sullivan explained. “The positive impacts on construction activity occur next year, by and large, and they will be relatively small.”

In contrast, oil-producing states will be “harder hit” by the low oil prices, Sullivan said.

“When you have oil prices drop in half, you disrupt drilling activity immediately,” Sullivan said. “That will materialize in 2015. It’s a net minor negative, but keep in mind, not all regions will be impacted in the same way.”

State and local public works, benefitting from healthier tax receipts, is expected to contribute to some increasing cement use, accounting for 15% of consumption this year. If the federal government produces a long-term highway and transit bill, “that adds even more strength,” Sullivan said.

Low oil prices may not translate into low asphalt prices for paving roads, however. Crude oil this year is expected to cost 40% less on average than last year, but the cost of concrete pavements will remain competitive with asphalt, Sullivan predicted.

“What we are starting to see is a constraint in supply,” he said, because refineries are producing small amounts of asphalt overall from each barrel of oil.

“Asphalt prices aren’t going to fall very much,” Sullivan said.

ZAMBIA: $200m cement factory on cards


SCIROCCO Enterprises Limited has entered into an agreement with a consortium to construct a state of the art cement factory in Lusaka’s Makeni area at cost of US$200 million.

Scirocco Enterprise managing director Moustafa Saadi said at a press briefing in Lusaka yesterday that the modern cement factory will have the capacity to produce 2,500 tonnes of cement per day.

Mr Saadi said the company has been incorporated in Zambia and it will be known as Amaka Cement Industries Limited.

He said Scirocco has entered into an agreement with a Chinese firm and an international funder to carry out the multi-million dollar project.

“The agreement has been signed and feasibility study is being undertaken to establish the viability of the project. As soon as the exploration work that needs to be carried out is finalised, environmental impact assessment will be carried out to comply with the prevailing laws.

“We expect that the process can be concluded quickly without any undue delays. We are looking forward to the support of our community and various government institutions to facilitate the process in order to begin the physical work,” Mr Saadi said.

The factory that we will be put up will be a modern and efficient one that will exceed all the environmental regulations in Zambia and will have a positive impact on the economy of the area and the nation as a whole.

He said construction of the plant is earmarked to start in September this year and it is expected to be completed by 2017.

Mr Saadi said Amaka Cement Industries will be producing two grades of cement for local and international markets.

He said over 500 people will be engaged during the construction period while 200 people will be employed on a full time basis once production starts.

INDIA: Dalmia Cement partners with IFC for resource efficiency assessments

Dalmia Cement Bharat Limited (DCBL), a subsidiary of Dalmia Bharat Limited, has signed a co-operation agreement with the International Finance Corporation (IFC) to conduct resource efficiency assessments and mobilise investments at its manufacturing facilities. Under the agreement, Dalmia Cement has initiated phase-II, in which the feasibility study of 27 technical papers of the Low Carbon technology roadmap will be undertaken to establish the implementation potential. 

This initiative will help Dalmia Cement identify improvement opportunities in energy consumption, leading to lower GHG emission and contributing to sustainability and green cement. The phase I of the initiative (FY 2011-2013) was developed in partnership with World Business Council for Sustainable Development (WBCSD)'s Cement Sustainability Initiative (CSI) and the International Energy Agency (IEA), resulted in development of 27 technical papers on various aspects of manufacturing of cement and an overall GHG emissions roadmap for Indian cement industry.

As a continuation of phase –I, the phase-II part of the project entails taking up a feasibility study at DCBL’s Dalmiapuram plant for assessing the suitability of implementation of the various low carbon technologies. Dalmiapuram unit would be assessed on improvement opportunities in five areas namely energy efficiency, product mix/clinker factor/blending, alternate fuel & raw materials, waste heat recovery and renewable energy.

“Imbibing sustainable practices in our plants has been a key focus area for us at Dalmia Cement. This agreement will pave the way to making our Dalmiapuram plant even more energy efficient. We are looking forward to IFC’s guidance and advisory support to implement this,” said Mahendra Singhi, Group CEO Cement, DCBL.

“Reducing carbon emission is imperative for a clean, pollution-free environment. This can be achieved by implementing sustainable practices and using alternate fuels and raw materials. We are happy to be associated on this project and explore ways to implement green technology,” said Chandrasekar Govindarajalu, team leader, clean energy and resource efficiency South Asia, IFC.

NEPAL: Dangote starts preparations to set up cement factory in Nepal

A team of technical experts from Dangote Group recently visited potential sites in Makawanpur and Dhading districts to study the feasibility of opening a cement factory there.

A technical team comprising of civil engineers, geologists and mine experts visited different sites in the district, according to K R Rao, team leader of director of Dangote Group´s Cement Production Division. 

According to Rao, the team has sent limestone samples collected from the sites for laboratory tests. We will choose the project site and start land acquisition process within two months, he added.

The Nigerian business conglomerate plans to open a cement factory with daily capacity of 6,000 tons in Nepal.

Hikmat Thapa, chief of food production division of Dangote Group, said this is the largest group of experts that has visited Nepal since the registration of company in June last year. 

According to the group, Nepal will be the 15th country for Dangote´s cement factory operations.

The government has already approved the group´s proposal to invest US$ 550 million to establish a cement factory. For the purpose, the group has registered ´Dangote Cement Nepal Private Limited´ at the Office of Company Registrar. 

"We will start cement production by June, 2017. Our product will be of high quality as we will put in place high-tech quality control mechanism. Similarly, we are adopting ´vertical roller mill´ technology which is a modern and efficient technology," Rao told Republica.

Rao said the group has seen cement market in Nepal growing. "We expect the market to grow to 6 million tons a year by 2010," he added.

Nepal currently consumes 3.5 million tons of cement annually. It imports 1.5 million tons of cement every year. However, with big factories coming up, experts say the country will soon be able to start cement to neighboring countries.

“We are also eying the markets in Bihar and Utter Pradesh of India,” Rao said. 

As the government has prioritized infrastructure development, mega projects like hydropower, road, airport and irrigation projects are coming up in different parts of the country. These projects are likely to propel demand for cement and other construction materials in the near future.

Officials of Dangote Group said they have already started the process to procure cement plant for Nepal. They also said they would soon acquire license to operate limestone mine.

Investment being made by Dangote Group in Nepal is one of the largest Foreign Direct Investment (FDI) in the country´s manufacturing sector.

Dangote Group´s technical officials have not yet decided alternative power supply for the proposed plant. "Though our initial plan was to invest in hydropower project, we have aborted it as it takes lot of time to develop. We are thinking of investing coal or diesel-fed plants to arrange stable power supply," Rao said.

The proposed factory needs 35 MW of uninterrupted power supply. 

Dangote´s technical team returned to Nigeria on Wednesday after wrapping up their five-day study trip. 

Dangote Group is credited for expanding cement production in Nigeria. Nigeria produced 32 million tons of cement in 2014, compared to 2 million tons in 2002. Dangote alone produced 25 million tons in 2014. 

Along with cement, Dangote has factories producing sugar, salt refinery, pasta and noodles, among others, in different countries. It is also involved in real estate business. Aliko Dangote, the richest man in African continent and 23rd in Forbes´ billionaire list, is the owner of Dangote Group.

OMAN: Raysut Cement Q4 Net Rises 9.2%, Misses Forecasts

Oman’s Raysut Cement reported a 9.2 per cent increase in fourth-quarter profit after tax on Thursday that missed analysts’ estimates, according to Reuters calculations.

The company made a profit of OMR6.55 million($17.0 million) in the three months to Dec. 31, up from OMR6.00 million in the prior-year period, Reuters calculated based on the company’s financial statements and Reuters data.

Analysts polled by Reuters had on average forecast Raysut’s quarterly profit would be OMR7.55 million.

The firm made a profit of OMR27.43 million in 2014, versus a profit of OMR27.53 million in 2013, according to a statement to Muscat’s bourse.

Tuesday, February 3, 2015

BANGLADESH: Cement sales poised to rise if political turmoil ends

Cement consumption in Bangladesh is expected to grow 13-14 percent this year, riding on the development of roads and bridges and small rural housing projects, the managing director of Holcim Cement Bangladesh said yesterday.

“We are confident and positive about the scope of the cement market,” said Sumanta Pandit.

But growth will largely depend on the political situation, Pandit told The Daily Star in an interview at the company's office in Dhaka. “Sales will grow if the political situation improves in the coming days.”

The Swiss company has already witnessed 'a marginal decline of sales' in its Bangladesh operations due to the nonstop blockade that has disrupted the supply chain, he said.

Like other sectors, the cement industry was also affected in 2013 due to political unrest. “We were looking forward to a great 2015. But unfortunately, the political situation has again taken a negative turn. We only expect that a better situation will prevail.”

In 2014, cement consumption grew 12-13 percent, said Pandit, an Indian national, who took up his current assignment in October 2014.

The installed capacity of cement factories in Bangladesh is 33-35 million tonnes a year, while annual demand is 20-21 million tonnes as of 2014.

“Most plants operate at 50 to 60 percent efficiency, which is why we still have scope for cement growth. In spite of all these issues, companies are still staying afloat.”

More than 35 to 40 companies are operating actively in the market.

Pandit, 49, has nearly 25 years of experience in the cement industry and worked in different cement companies such Ambuja, Lafarge, and UltraTech.

Prior to Holcim, he was the country manager for Emirates Cement, a Bangladesh unit of India-based UltraTech Cement.

Holcim is bullish about the multinational's prospects in the country, thanks to the ongoing high-profile infrastructure projects, which will pave the way for more growth.

“We look at the Bangladesh market with great positivity,” he said, adding that the company recently invested Tk 3,000 million to expand its production capacity to two million tonnes a year.

Holcim is also upbeat on being a premium cement supplier to the ongoing Padma bridge project. 

“Considering our global and local expertise and experience in large and infrastructural projects, we are expecting the concerned authorities to allow us to participate in the Padma Bridge project, and the other projects centring it.”

“We are hopeful and enthusiastic about being a part of the growth process of Bangladesh, and we would like to be an important part of any development in this country, for which we are already in talks with consultants. Hopefully, we will be one of the premium suppliers for this project,” he said.

Holcim has contributed to building some of the longest bridges around the world.

In Bangladesh, the Bangabandhu Multipurpose Bridge and Syed Nazrul Islam Bridge (Bhairab bridge) have been built with Holcim cement, he said.

Pandit said Bangladesh will be able to earn a huge sum of foreign currency from cement exports, especially to north-eastern India, if the government provides export incentives and if bilateral cooperation between India and Bangladesh is further improved.

Bangladesh exports 40,000-50,000 tonnes of cement a month to the seven-sister market in India. Indian manufactures are now offering cement at lower rates than Bangladeshi companies due to tax benefits.

Currently, Bangladeshi cement makers cannot compete with Indian manufacturers as there is a price gap of Tk 50-Tk 70 a bag between Indian cement and Bangladeshi cement.

Pandit also called upon the government to arrange low-cost loans for the housing sector in a bid to boost apartment sales. Bangladeshi banks charge 15-16 percent on home loans at present.

The interest rate on housing loans in Bangladesh is still higher than in the Middle East and India. Currently, Indian banks charge 9- 9.25 percent on an average on long-term loans, while it is below 5 percent in the UAE, he said.

Founded in 1912, Holcim has operations in more than 70 countries and is the market leader in cement production in India, Australia, Azerbaijan, Slovakia, Switzerland and Latin America.

Holcim Bangladesh began its journey in September 2000 by acquiring Hyundai Cement Bangladesh. Gradually, Holcim solidified its interest in the country by acquiring two more plants: United Cement Industries at Meghnaghat and Saiham Cement Industries in Mongla. Its Bangladesh operation employs about 600 full-time and temporary employees.

EUROPE: CRH shares jump after €6.5bn asset deal

Shares in CRH jumped 6 per cent on Monday as investors applauded the Irish cement company’s decision to spend €6.5bn on assets of rivals Holcim and Lafarge, despite saying it would partially fund the deal through selling new shares.

The deal, agreed early on Sunday morning, will make it the third largest building materials business in the world by market value, having beat out a consortium led by Blackstone. It is by far the biggest deal CRH has agreed.

Ireland’s largest construction company, with a market capitalisation of €15.8bn, will sell 74m of stock, equal to just under 10 per cent of its share capital, and will also fund the deal with new debt and €2bn of cash from its balance sheet.

Although CRH has expanded through acquisitions for the past several decades, these have tended to be smaller transactions. It has spent $24bn on roughly 650 acquisitions since 2000.

“Put simply, we saw this as the right deal, at the right time and at the right price. It was too good an opportunity to turn down,” said CRH chief executive Albert Manifold on Monday.

“This is not a shift in strategy for us — normally we do around €2bn worth of acquisitions per year. This is just compressing 2.5 years of those transactions into a single deal.”

Mr Manifold also responded to speculation about whether the group would consider partners after the deal closes, including with buyout group KKR.

“Not all of these assets are going to remain long term in our group, that’s for sure. Some of these assets, we will be required to take partners on,” he said.

“One of those areas is the United Kingdom and we will look at whether we feel it’s appropriate to allocate all of the capital at this moment of time or to take on some partners. We have had a number of discussions with people. We are in discussions with KKR about investing in the UK.”

The assets being acquired include all of Lafarge’s UK operations, which will leave CRH with a number one market position in the British market for cement, aggregates, ready-mix concrete, asphalt and construction.

Outside the Irish and UK markets, the deal will also allow CRH to significantly expand its business globally. It will comprise of assets producing cement, aggregates, ready-mixed concrete and asphalt in North America, western Europe, Central and eastern Europe and the emerging markets.

Analysts at Cantor Fitzgerald in Dublin echoed the broader investor enthusiasm seen in early market trading on Monday, saying: “While not the most straightforward of deals, we believe significant demand exists for the materials assets globally — shown by the existence of multiple serious buyers for Lafarge Holcim assets.”

“CRH has a history of acquisition and successfully integrating businesses into its operations,” they added.

Holcim and Lafarge are selling the assets to win regulatory approval to merge and become the world’s biggest cement maker. CRH said it expected the businesses it is buying to earn revenue of €5.1bn and adjusted earnings of €752m in 2014.

In a conference call on Monday, the chief executives of the merger partners said the CRH deal price included the assumption by the Irish company of about €1.3bn of debt. The sale ensured their merger was on track for completion in the first half of 2015 with the vast majority of the assets they needed to sell now placed with buyers, they said.

Lafarge CEO Bruno Lafont said the CRH offer “was the best, both on the contractual side and on price”.

The deal requires shareholder approval. The “newco” employs 15,000 people in 11 countries, and CRH expects net synergies of €90m by the third year.