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Uptick in cement sales

KARACHI: Total cement sales — export and local despatches — posted a meagre growth of 1.67 per cent to 26.765 million tonnes during the first seven months of this fiscal year mainly due to reduction in government spending on infrastructure projects.

However, exports surged 50.47pc to 4.141m tonnes during the July-January period of 2018-19, from 2.775m tonnes in the corresponding period, showed data released by All Pakistan Cement Manufacturers Association on Wednesday.

On a year-on-year basis, the overall cement sales witnessed a decline of 10.70pc to 3.646m tonnes in January against despatches of 4.083m tonnes in Jan 2018.

The industry exported 0.579m tonnes in January as against 0.347m tonnes in Jan 2018.

For the first time this fiscal year, the domestic consumption recorded a nominal decline in the Southern region, while the downslide in the Northern region of the country continued unabated. Uptake in North was only 2.355m tonnes last month against 3.018m tonnes consumed in Jan 2018. The consumption in the South slipped from 0.719m tonnes in Jan 2018 to 0.711m tonnes in January.

A look at the regional performance shows that mills located in the North suffered more than the mills located in the South. The domestic consumption of North-based mills declined by 8.43pc to 17.831m tonnes in the first seven months of this fiscal year from 19.473m tonnes in same period last year.

Published in Dawn, February 7th, 2019

Thatta Cement earns PKR300m in 1HFY19

Thatta Cement earns PKR300m in 1HFY19

Thatta Cement Co Ltd (TCCL) announced its financial results for the half year ended 31 December 2018 with consolidated earnings at PKR300m (US$2.1m), down by 6.54 per cent YoY, as compared to PKR321m reported in the same period last year.

According to TCCL’s notification to Pakistan Stock Exchange (PSX) on 6 February, company sales during the half year period increased by 34.54 per cent YoY to PKR2.33bn as compared to PKR1.73bn during the same period last year.

The company incurred higher distribution cost of PKR137m and less administrative expenses of PKR56m, compared to PKR35m and PKR70m, respectively, in the same period last year.
No cash dividend/bonus/right shares were announced by the company.

The company has a single cement plant having capacity of 488,250t in Thatta, Sindh province.

FLSmidth focus on the environment at new Indian cement plant

Using all state-of-the-art technology for the project, Dalmia Bharat Group will minimise its environmental impact and maximise its productivity at their new Rajgangpur site.

From crusher to packing plant, the project is designed to optimise power and fuel efficiency. The purpose is not only to reduce operating costs, but also to achieve the smallest possible environmental footprint. To meet the high ambitions for the project, Dalamia Bharat selected FLSmidth to deliver the complete full flow sheet of the latest equipment and machinery including; electrical, instrumentation and automation equipment.

The purpose is not only to reduce operating costs, but also to achieve the smallest possible environmental footprint.

Dalmia Bharat has been one of the top performing companies in cement manufacturing since 1939. The company now controls an expandable capacity of 26.1 million tonnes of cement, which is among the highest capacities in the Indian cement industry.

Once completed in 2019, the new integrated cement plant will set new standards for Indian cement production both in terms productivity and its environmental impact.

“We have worked closely with Dalmia Bharat for the past many years. This is a company strongly committed to its environmental responsibility. We are very proud to have been chosen to partner in this project, which will increase the company’s overall output and lower their cost of operations, all with a minimal impact on the environment during the lifetime of the plant,” says Hari TR, Head of Cement at FLSmidth in India.

Publish by Flsmidth

PPC lobbies for cement import tariffs

The cement producer says the tariffs will level the playing field as imports jumped 80% between January and November 2018

Listed cement producer PPC is lobbying government body International Trade Administration Commission (Itac) for the imposition of tariffs to curb the influx of cement imports.  

For PPC, the cement imports, which jumped 80% between January and November 2018, worsened the subdued consumer environment and gloomy construction sector. The increase comes on the back of a 71% increase in imported cement in the six months to end-September 2018.

The company said the majority of the cement imports were from Vietnam, China and Pakistan.

“PPC is lobbying for appropriate tariffs for imports for all countries, which will level the playing field. Currently, tariffs are only levied on cement imports from Pakistan. Furthermore, considering the current muted economic environment, a total ban would be appropriate,” PPC said in a statement. 

The company pointed to over-capacity in the local market, saying current capacity was about 18-million tonnes a year, compared to a demand of approximately 14-million tonnes a year “with the growth outlook being muted”.

PPC said imports into Cape Town increased by 48% to approximately 209,000 tonnes. This, however, was still substantially lower than the imports into Durban which increased by 84%.

On Tuesday, PPC said in the nine months to end-December 2018 cement volumes slumped between 2% and 3% “against the backdrop of estimated market contraction of [between] 4% and 5%”.

PPC attributed the fall in cement sales for the nine months to an “uncharacteristically weak” December as well as subdued construction activity.

PPC’s drop off in volumes followed the latest FNB/BER civil confidence index rising by one point to 18 in the fourth quarter of 2018 and remaining below 20 for the sixth consecutive quarter. The civil confidence index reflects the state of business conditions in the civil engineering industry. 

The group, which also makes aggregates, ready-mix cement, lime and limestone, as well as fly ash, said average cement prices only increased 1% to 2% in Southern Africa. The company also implemented price increases of between 8% and 12% on January 15 in certain regions.

PPC said its lime business has shown resilience in profitability, while the aggregates and ready-mix business remains under pressure.  The group said volumes at its Zimbabwean business experienced operational problems in the third quarter of the financial year, resulting in lower growth of volumes. It raised alarm over the impact of the fuel hikes in that country, which it said had placed Zimbabweans under strain.

PPC shares were up 0.36% to R5.65 on Tuesday.

Published by Business Day

CDA officials who granted illegal lease extension to Fecto held accountable

Cement factory Fecto that quarries limestone and is nestled in the Margalla Hills National Park area was granted an extension of lease illegally by the Capital Development Authority.

However, in a fresh move, an inquiry committee had been formed, headed by the most senior officers against three serving alleged accused officers as well as six retired officers.

The Human Resource Directorate Confidential Deputy Director (DD) Asif Ali Khan issued a notice mentioning that an inquiry committee has been formed against the three allegedly accused officers namely CDA Law Deputy Director General (DG) Najma Azhar, CDA West Environment Director Muhammad Irsha and CDA Sanitation Deputy Director Arif Masood over extension of lease to the Fecto Cement illegally.

The notification added that three members’ committee comprised upon the following officers. The committee will be headed by Audit & Accounts DG Fazal-i-Mabood as chairman of the inquiry committee, while two other members will be Works Director Habibullah Sheikh and Environment & Parks DD Rana Kashif Nazir.

The notice added that the committee also determines the role of the following officers if involved in any financial loss.

The retired officers consist of former Environement DG Dr Sheikh Suleman, former Environment Deputy DG Malik Aulya Khan, former Environment director Muzaffar Khan, former Forests additional director Irfan Khan, former Law director Abdul Baqi and former Regional Planning director Mehboob Ali Khan.

The human resource officer issued a notice mentioning that an inquiry committee has been formed against the three accused officers

The notification shows directives that the committee will submit its report in upcoming 15 days from the date of proceeding.

The above top brass official of the civic body is allegedly accused of awarding extension to a cement firm for carrying out mining activities in Margalla Hills which is banned according to Environment Laws.

The cement firm has in the past caused disturbances destructions resulting in environmental losses because of its heavy machinery and loud activities.

It is pertinent to mention that the 30-year limestone mining lease to Fecto expired on June 7, 2012 but was extended by the Islamabad Capital Territory Industries & Mineral Development director and the office of chief commissioner for another 18 years.

Supreme Court (SC)’s three-judge bench in 2015 while hearing an environment protection petition issued remarks that allowing pit mining is the most devastating form of environmental degradation.

In recent years, while presenting before the SC, the capital’s civic agency informed the court that the lease of a cement factory has been cancelled and a challan for Rs 420 million against it has been prepared for illegally operating at Margalla Hills area.

CDA submitted a report to the apex court on a suo motu case regarding illegal activities at Margalla Hills National Park area.

Following the formation of the inquiry committee, a top brass officer wishing anonymity said while talking exclusively to Daily Times that according to the Wildlife Ordinance 1979, mining activities are banned in Margalla Hills and if there’s a clear ordinance of environment, how come the top brass officers awarded extension to the cement firm? He added that as Pakistan is passing through serious consequences of global warming in recent times, in that sense awarding extension to environment polluters is a crime and accused faces should be dealt strictly. He expressed satisfaction with the officers heading the inquiry committee although he added that the report should be made public in future for media and courts.

Published in Daily Times, January 19th 2019.