LafargeHolcim resumes aggregate business

The cement maker's stocks surge 7.12pc

FE REPORT | Published: March 28, 2022 22:55:08

Shares of LafargeHolcim Bangladesh, a multinational cement maker listed with the stock market, surged 7.12 per cent on Monday following the news that the government allowed it to re-start aggregates business.
The cement producer resumed its aggregates business after the Ministry of Industries gave permission to produce and sell aggregates in the open market.
"The Ministry of Industries issued a letter giving the company permission to produce and sell aggregates in open market," said the company in a filing with the Dhaka Stock Exchange (DSE) website on Monday.
Accordingly, the company is re-starting its aggregates business with immediate effect.
The Ministry of Industries also mentioned in the letter that the permission shall be valid until the government finalises the policy for producing aggregates through crushing limestone, according to the filing.
"After such a policy is published by the government, the company has to apply again for the permission under the Policy," it added.
Aggregates is a broad category of coarse particulate material used in construction, including sand, gravel, crushed stone, slag, recycled concrete and geo-synthetic aggregates.
LafargeHolcim Bangladesh commenced commercial production of clear-size graded aggregate in January 2021.
The aggregate is graded limestone chips having uniform size and shape conforming to international standards, the company said earlier.
The company has set up the crushing unit with ancillary equipment on the premises of its existing integrated clinker and cement manufacturing plant in Chhatak, Sunamganj.
With an investment of Tk 401 million, the facility has the capacity to produce 1.2-million tonnes of clear-sized graded aggregate per annum.
The annual demand for clear-sized aggregate is an estimated 15-million tonnes and Bangladesh relies on imports from countries such as India, Bhutan, Vietnam, Oman and the UAE for supply.
Earlier in mid-September 2021, the Ministry of Industries directed the LafargeHolcim to stop its aggregates business citing lack of the necessary approval.
The company challenged the legality of the ministry's directive and on 11 October, 2021, the High Court issued a rule against the ministry.
On 16 November, 2021, the Division Bench heard the matter and passed a one-month stay order against the ministry's directive. The company started its aggregates business once again after the stay order.
But on the next day, the ministry went to the Appellate Division.
A Chamber Bench, upon hearing the parties, again stayed the Division Bench's stay order for two weeks. The company once again had to stop its aggregates business.
Each share of LafargeHolcim, which was listed on the DSE in 2003, closed at Tk 76.70 on Monday. Its shares traded between Tk 43.80 and Tk 107.50 in the last one year.
LafargeHolcim declared a 25 per cent cash dividend for the year ended on December 31, 2021.
The company has reported consolidated earnings per share (EPS) of Tk 3.34 for the year ended on December 31, 2021, as against Tk 2.03 for the same period of the previous year.