West China Cement has released its results for 2013. Highlights of the report are provided below.
- The group achieved revenue of RMB4167.8 million, up 18.3% from the RMB3524.1 million reached in 2012.
- Cement sales volumes increased by 23.1% y/y to 17.6 million t in 2013. Total clinker and cement sales volumes reached 18.2 million. Volumes were boosted by strong demand in Shaanxi Province and a larger market share in the region, as well as growing activity in the infrastructure sector.
- Gross profit was up by 8% y/y to RMB729.3 million. This increase was driven by higher revenue and greater sales volumes.
Expansion and acquisition
- No further expansion took place in Shaanxi Province in 2013 and the Group has no immediate plans to do so.
- Two plants are currently being developed. A brownfield project in Xinjiang Province with a production capacity of 1.5 million tpa and a 1.8 million tpa brownfield project in Guizhou Province. Both plants are expected to be completed in 2H14. Once finished, these plants will enable the Group to reach its 2015 capacity target of 27 million t. At present the Group’s capacity stands at 23.7 million tpa.
- The Xinjiang Yutian plant and Line 2 at the Shangluo Danfeng plant began operating in 2013, following completion of construction in 2012.
- Last year, West China Cement built a cement kiln waste sludge treatment facility at its Lantian plant, the first of its kind in Shaanxi Province and Northwest China. The facility will treat industrial and municipal waste from the Xi’an and Xianyang area. Phase 1 was completed in January 2014 and once phase 2 has been completed the facility will treat 210 000 tpa of waste sludge.
- As of 31 December 2013, residual heat recovery systems were in place at 13 of the Group’s 17 production lines and more than 80% of the company’s operate heat recycling systems. These cut electricity consumption by some 30% and lower CO2 emissions by around 20 000 t/million t of cement production.
- The Group continues to carry put measures to ensure it meets stricter NOX and PM emission standards that will come into force in 2014 and 2015. De-NOX equipment has been installed at the majority of plants in Shaanxi, and installation at the Shangluo Zhen’an plant will be completed this year. As of 31 January 2014, three of the Group’s production lines had been modified to meet PM emission standards. Similar modifications will be completed at two further plants in 1H14.
The full 2013 annual results report can be found here.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/asia-pacific-rim/19032014/west_china_cement_2013_results_915/