Heidelberg Cement To Take Over Italcementi

Heidelberg Cement to become 2nd largest cement company

Germany's biggest cement producer is all set to acquire a 45% share in Italcementi as a first step. On open offer would be made to minority shareholders to acquire the rest later after the initial deal goes through. With this the total combined cement production capacity will be 200 Million tonnes. Heidelberg Cement currently produces around 140 Million tonnes of cement, its smaller rival Italcementi around 60 Million tonnes of cement.

The combined cement company will have operations in over 60 countries worldwide. This deal comes just weeks after the massive Lafarge and Holcim merger. The Pesenti family,one of Italy's biggest and oldest industrial dynasties, agreed to sell their 45-per-cent stake in Italcementi for 10.60 euros per share, in a mega deal worth around 1.66 billion euros, representing a premium of more than 65% over the average market price reflected in the last three months. The Pesenti family will receive approx. 5% shares of the combined group as part of the deal making them the second largest shareholders after Germany’s Merckle family.

You can read more updates in the links below.

Heidelberg Cement To Acquire Italcementi.
Italcementi to be taken over.
Mega Cement Aquisition.

ACC Cement Sales

Cement Markets : Harbinger Of Things To Come

ACC Cements Q1 results with a show of Rs.131.4 crores shocked most analysts particularly the analysts who predicted a net profit of Rs.205 crore.

The key factors for the fall in net profits inspite of ACC Cement selling more cement, can be attributed to rising costs in terms of coal, cement freight, retail diesel prices and employee remuneration.

Cement price pressure due to surplus cement capacities with the exception of South India and East India cement markets in turn has contributed to the drop in ACC Cements net profits.

Read more on ACC Cement Sales and net profits...

Poor Concrete Growth In Cement Markets

Cement Markets Yet To Take Off

With the revival of the monsoon, cement markets are showing signs of marginal improvement over previous months. Cement industry experts are now projecting growth figures in the region of 5 percent. This is against actual growth figures of 8.4 percent for the corresponding period last year.

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Earthquake resistant concrete

Eco-friendly concrete

Experts from the University of Sheffield, Sheffield and the Imperial College, London have in a European Union funded project found that rubber, steel and textile fibres in old tyres can be reused in the making of a more eco-friendly concrete that is not only tougher but also highly resistant to earthquakes.

Read more on the innovative use of old tyres in the making of better concrete here at earthquake resistant concrete.

JSW Cements' Innovative Plan

Increase in cement capacity at reduced costs

A master plan drawn by Harvard Business School-trained JSW scion Parth Jindal wherein cement making costs are reduced by 3/4ths by setting up grinding units closer to cement retail markets as against the traditional method of cement clinker units placed near limestone mines and sources.

This innovative plan, a brainchild of Parth Jindal, will enable JSW Cement to add 1 tonne of cement capacity at approx. Rs.180 crore, against Rs. 840 crore needed to set up a similar cement capacity under the traditional method.

An added edge that JSW Cement has is in the growth potential of Slag Cement in the country. JSW cement sources its slag from its sister company JSW Steel at competitive prices.

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Cement Market Expansion

Top 10 Cement Producers

Birla Corporation has currentlty an installed capacity of 9.3 Million tonnes per annum. The company has plans to expand that capacity to 15 Million tonnes per annum. This will make this cement producer one of the top 10 cement players in the country. The plan envisages a time frame of four years.

The current cement market scenario is that there is a glut brought about by capacities built up by cement producers anticipating a higher demand in the cement markets which did not materialise.

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Cement Market Expansion