Sibcem Reports 14 % YoY Production Increase in Q1

Sibcem’s plants produced 14 % cement more YoY in Q1 2020 — 525,000 tons. Cement demand surged due to an increase in numbers of large construction projects in Buryatia, the Kemerovo and Chita regions. Topkinsky Cement in the Kemerovo region produced almost 387,700 tons of cement (+21 % YoY), Krasnoyarskiy Cement produced 97,600 tons (-17 % YoY), TimlyuyCement produced 39,600 tons (+73 % YoY), Siberian Concrete shipped 42,100 m3 dry mixes to consumers (-15 % YoY).

Cement consumption in the regions of Siberia, Buryatia and the Trans-Baikal Territory reached 844,500 tons in Q1 2020 (+14.5 % YoY). But in April a significant decrease in demand was recorded.

In 2019, Sibcem's enterprises increased production compared to the previous year by 3 %, (up to 3.2 million tons). As per First Vice President of Sibcem Gennady Rasskazov, even though the company's analysts predicted an increase in the annual capacity of the Siberian market by 3-5 % in 2020 and Q1 showed growth, now they expect a 7-10 % reduction as April shows a steep decline in cement demand.

In April 2020, Sibcem, along with the EUROCEMENT group, was included in the government list of essential companies for the Russian economy. Such enterprises have the right to apply for state support during the COVID-19 pandemic.