Cement Americas

SPR 2013

Cement Americas provides comprehensive coverage of the North and South American cement markets from raw material extraction to delivery and tranportation to end user.

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NEWS AMERICAS Cemex's Fairborn Plant Receives API Certification Cemex USA announced that its Fairborn, Ohio, cement plant received license from the American Petroleum Institute (API) to monogram well cements that meet API certification. For more than 100 years, Cemex has provided well cements to specific downhole requirements that result in consistent formulations to fit any operating environment. Bolivia Expects to Double Cement Imports in 2013 State-owned Insumos Bolivia (IB) expects to double the import of Peruvian Yura cement this year from 1.3 million bags in 2012 to 2.5 million bags, or 5.9 Mt, in 2013. IB Director General Oscar Sandy said there are a number of possible agreements in the pipeline that would require substantial volumes of cement. Firstly, IB hopes to conclude a deal with the Misicuni Co. to construct a dam in Cochabamba. The project would require 150,000 bags in the first half of the year. In addition, within the framework of the Social Housing Plan, the government will be requesting 1.8 million bags. "Now, if we consolidate both inter-institutional agreements, we would be importing 2.5 million bags of Peruvian cement," Sandy explained. Sandy added that the imported value would be marketed mainly in La Paz, Cochabamba and Santa Cruz as these regions have been in need of additional cement in the past few years. In 2011, Bolivia imported 1.01 Mt of Peruvian cement of which nearly half (485,269 t) was sold in La Paz with a further third in Cochabamba and a fifth in Santa Cruz. 8 "Receiving certification from API for our well cement products is a reflection our R&D; team's expertise in product development," said Karl Watson, Jr., president, Cemex USA. "We look forward to continuing our longstanding history serving the oil and gas industry by providing superior customer service, through a dedicated and specialized team, and continuing to offer technical services, construction products and field services specifically tailored for the oil and gas industry." Cemex serves the oil and gas industry with five of its regional production plants and throughout one of the largest logistics networks in the nation. This wide-ranging plant and logistics network is capable of producing the widest product offering of well cements across the U.S. "Cemex is proud to continue strengthening its position in the Marcellus and Utica shale plays, which represent high growth potential for unconventional exploration and production methods," said Frank Craddock, executive vice president, commercial and public affairs, Cemex USA. "This effort reaffirms our long-term commitment to this sector, not only in the Northeast but also in other key regions, as we aim to maintain our position as a leading supplier of choice for well cements." Holcim 2012 Results Released According to a recent press release, Holcim increased consolidated net sales, operating EBITDA and net income despite the difficult economic environment in Europe and restructuring costs in 2012. The Holcim Leadership Journey, which is well under way across the whole Group, also supported operating performance. In 2013, Holcim expects increasing sales volumes and significant growth in operating EBITDA and operating profit. Once again, Holcim delivered more cement, with consolidated volumes of 148 million tons representing an increase of 2.5 percent. The strongest volume growth was achieved in North America, followed by Asia and Latin America. However, shipments decreased in Europe due to the crisis and in the region Africa Middle East due to the political instability. Aggregates sales volumes, which are primarily supplied in mature markets, decreased by 7.7 percent to 159.7 million tons, and deliveries of readymix concrete recorded a drop of 3.1 percent to 46.9 million cu. m, despite an increase in North America. In the fourth quarter, cement deliveries increased 1.1 percent to 36.6 million tons. The largest sales increase came from North America, followed by Latin America and Asia Pacific, despite a slower resurgence in demand after the monsoon in India. Aggregates sales volumes remained below the previous year's level, dropping by 7.6 percent to 39.4 million tons. Holcim anticipates an increase in sales of cement in 2013, but it will be challenging to reach the previous year's levels in the aggregates and ready-mix concrete businesses. While Group regions Asia Pacific, North America and Latin America are expected to witness higher sales volumes, Holcim is somewhat less optimistic with regard to Europe and Africa Middle East. CEMENT AMERICAS • Spring 2013 • www.cementamericas.com

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