Cement Americas

FALL 2017

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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4 CEMENT AMERICAS • Fall 2017 • www.cementamericas.com CEMENTSCOPE FLSmidth has been awarded an order from Cielo Azul Cementos y Calizas S.A. for engineering, procurement and supply of a complete cement production line with the latest environmental pollution control systems and technology. The facility will be located near the city of Treinta y Tres, approximately 300 km from Montevideo, and marks the established ready mix concrete player's entry into the cement production business. The $30+ million order comprises of a complete range of equipment ranging from crushing to a palletizing system. FLSmidth will deliver energy-efficient tech- nology including ATOX vertical roller mills for raw and coal grinding, an OKTM 25-3 vertical mill for cement grinding, FLSmidth Cross-Bar cooler and a low- NOx in-line-calciner kiln system. "We are proud that Cielo Azul has chosen FLSmidth as their partner as they enter the world of cement produc- tion. FLSmidth has a 135-year proven track record of understanding and sharing our customers' ambitions. We develop the most advanced technology in our industries and offer market-leading product and service ranges. Together with Cielo Azul, we will leverage on our knowl- edge and experience to deliver the most energy-efficient cement plant in Uruguay," said Per Mejnert Kristensen, group executive vice president, cement division. The order will be fully executed by the end of 2018. FLSmidth Helps Cielo Azul Enter Cement Market Italcementi S.p.A., HeidelbergCement`s Italian subsidi- ary, received notice of a fine decision of the Italian Com- petition Authority in an antitrust investigation mainly relating to alleged market coordination in the Italian grey cement markets, including concerted price increas- es. The fine amounts to €84 million ($99.2 million). The alleged infringements relate to the period from June 2011 until January 2016, when Italcementi did not belong to the HeidelbergCement Group. Heidelberg- Cement has precautionary informed the former con- trolling shareholder of Italcementi S.p.A. as the Share Purchase Agreement includes customary protection against such risks. Italcementi will lodge an appeal against the Authority's decision and the relevant fine, as the company believes that the Authority's alleged charges are unfounded both in fact and in law and is firmly convinced that it has act- ed in full compliance with antitrust legislation. Italcementi to Appeal Decision in Antitrust Investigation Argos Cement Shipments Up 15 Percent in First Half of 2017 Cementos Argos, a subsidiary of Grupo Argos, closed the first half of 2017 with positive results and a good macroeconomic outlook in its most relevant markets. Cement shipment volumes reached 8 million tons, growing 15 percent and ready mix shipments were 5.4 million cubic meters, a decrease of 7 percent. The company reached $1.5 million in revenues and $219 million in EBITDA, 4 percent and 26 percent lower than the first half of 2016, respectively. However, contrary to the results obtained from January to March, the second quarter showed a recovery in net income reaching $18 million between April and June and $700,000 year to date. This represents better prospects for the company in the Colombian market and the progressive achieve- ment of its goals in operating efficiencies, as well as a greater contribution from business in the United States. At the end of the first half of the year, the company's horizons are favorable thanks to its internationalization strategy, which is in line with the objective of diversify- ing its own risk of competing in a cyclical industry. "The positive results obtained in the U.S., Caribbean and Central America, partially offset the challenges we are facing in the Colombian market," said Juan Esteban Calle, Cementos Argos CEO. "As of June 30, 73 percent of revenues and 77 percent of EBITDA were generated abroad in dollars or in currencies largely related to the dollar. Additionally, we expect a better second half of the year in the local market as a result of growth in ship- ments to the 4G projects in Colombia and the recovery in consumption that should appear as a result of the reduction in interest rates." The United States totaled 52 percent of the company's revenue in the first half-year and 40 percent of its EBIT- DA, as well as 36 percent and 67 percent of the vol- umes of shipped cement and concrete, respectively. As of June 30, Argos USA generated $759 million in reve-

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