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Spain’s Grupo Cementos Portland Valderrivas sees growth in foreign markets

World Cement,

Spain’s Grupo Cementos Portland Valderrivas (GCPV) has released its results for 2012. The company continued to feel the effects of the economic crisis and ailing construction sector in Spain, with EBITDA falling by 54.7% y/y to €69.8 million and turnover down 12.9% y/y to €653.7 million. However, GCPV did reduce its losses from €327.4 million in 2011 to €147.1 million in 2012.

While domestic sales declined in line with cement consumption levels in Spain, which dropped 34% y/y according to Oficemen, the company’s exports doubled to reach 1.4 million t. Sales also increased in the foreign markets in which GCPV operates. In the US, sales were up 9% and by 34% in Tunisia, although the latter percentage difference was affected by the social unrest in 2011, which temporarily halted production at the Enfidha plant. Whereas the domestic market represented 65% of the company’s turnover in 2011, it accounted for just 49% in 2012. The cement producer has recently demonstrated its intention to enhance its presence in foreign markets and reduce its exposure to the national market by signing an asset swap agreement with CRH. This sees CRH transfer its 26% share in Corporación Uniland SA to GCPV, who will then transfer its 99% stake in Cementos Lemona SA to CRH. Corporación Uniland operates plants in the US and Tunisia, as well as in Catalonia, Spain.

GCPV is carrying out a restructuring process, outlined in its Plan NewVal, which includes the aim to adapt capacity to the current market situation. The 2012 accounts are surcharged by nonrecurring expenses, which see the deduction of €105 million before taxes, including derivatives of the restructuring process in Spain (€46.9 million) and the reorganisation of assets.

Adapted from press release by Louise Fordham.

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