Dyckerhoff boosts sales in Eastern Europe

Dyckerhoff boosts sales in Eastern Europe
Published: 31 January 2008

The preliminary results from Buzzi Unicem’s subsidiary Dyckerhoff show an increase in group cement shipments of 3.2% and a 25.0% increase in turnover to EUR1777m. Capital expenditure amounted to EUR181m and included the initial investments at the new Orenburg plant in Russia.
The German turnover rose by 5% to EUR505m, while cement shipments, including exports, were 5% higher, but domestic deliveries were slightly lower.  Domestic cement prices increased by around 9% for cement and by just under 9% in ready-mixed concrete.  Of the EUR9 list prices increase from the beginning of 2008, Dyckerhoff is expecting approximately EUR6m/t to stick.  An investment is now under way to increase white cement production at Amöneburg works from 0.20Mta to 0.35Mta to meet the increased demand for this product being seen in Germany and in neighbouring countries.  Luxembourg turnover rose by 19.7% to EUR91m, while cement sales were up by 16%, or 20% in the case of domestic deliveries, where prices were raised by 3%.  The Dutch operations produced an initial consolidated turnover of EUR140m, helped by a major ready-mixed concrete contract.
Polish turnover rose by 30.0% to EUR143m and, with prices some 19% higher in cement and around 23% higher in ready-mixed concrete.  Cement output from the Polish plant was just 0.4% higher, but additional volumes were imported from the Czech Republic and from Germany.  Czech cement shipments rose by 20.1%, while the turnover from the Czech and Slovak operations rose by 17.5% to EUR215m. Cement prices 4% higher and ready-mixed concrete prices were stable.
In the Ukraine, cement shipments rose by 12.4% and the turnover rose by 67.3% to €179m. Higher gas prices led to a near 70% rise in cement turnover, while concrete turnover was up by almost 40%. An old kiln is being in the process of being modernised and should be brought back into service in the autumn of this year, adding an annual clinker capacity of 0.4Mt at the Volyn works.  A new kiln should come on stream at Volyn in 2010/11.  Russian turnover rose by 59.7% to EUR198m as prices rose, while cement shipments were just 0.9% ahead because of capacity constraints at the Suchoi Log works until the 1.2Mta extension comes on stream next year.  The brand new cement works being built at Orenburg should go into production in 2010.