Replies to post #205425 on Sulja Bros. Building Supplies, Ltd (SLJB)

[bizzyboy2]

Thanks goblin,,,you are on the ball!

biz

[Grande25]

Good game, Goblin.

[oreodiamonds]

No spokesman in this PR - This should keep our head above water. IMO

[oreodiamonds]

TODC Tall Order Distribution Contracts - Thats an interesting new term

[Green Goblin]

They still haven't given us anything verifiable in this PR but at least they're talking.

[Heywood40]

The Directors of SLJB?

Who are the Directors of SLJB?

They are going to "stay the course"?

Do they think BushSpeak is going to reassure us?

[knocker]

Cement in the UAE - outlook

100 million tons of cement, thats a lot of cement and the headline figure is frankly hard to believe.

That is quite a lot (!) of cement, but we don't know the number of years of cement output for distribution this refers to, except that the PR talks about long-term contracts - I don't know what long term is in the context of construction supplies and/or the middle east.

So lets have a look at the cement industry in the middle east - even though the PR does not mention exactly where the cement would be going to. However, on this message board it has previously been mentioned that PV has talked about an Egyptian cement factory as an acquisition target. We all believe that, right? lol.

In Egypt, 2004, 28.7m tons cement was produced, but nominal capacity for production was 38.2m. Supply exceeds demand - new customers needed.

In Saudi Arabia, production was 25.5m (2004) exceeding nominal capacity of 22.7m. Demand exceeds supply, got the factories turning over capacity (with the additional costs that engenders).

UAE a smaller player 9.8m production, 11.1m capacity, though I feel 2004 data are quite out of date for UAE given the construction boom.

http://www.aucbm.org/arabic/memclck/pdf_stat/ae04.pdf


Cement Demand in the UAE:

"In collusion with this trend, demand for cement in the UAE increased to 14 mtpa in 2005 from a mere 5.8 mtpa in 2001. Simultaneously, per capita cement consumption (2005) stood at 2,920 kg as against the GCC’s average of 2,025 kg and the world average of only 320 kg. With the multi-million green field projects going on stream, per capita cement consumption in the UAE is expected to hit 3500 kg by 2010."

http://www.taib.com/reports/E01025081006/EQ_FCI.AD_AUG06.pdf

Supply is picking up in the UAE (http://www.menareport.com/en/business,Industry/204326) but in the interim - one two three years (my guess) there's a supply shortage, hence need for imports. But the rate of construction growth is such that until the boom bursts, demand will continue to skyrocket.

Cement demand and outlook

this is an interesting article about future gulf cement trends
http://www.link2exports.co.uk/regions.asp?pid=474&lsid=2120&edname=18637.htm&ped=18637

I've got to run, but have a read - lots of oversupply predicted in the middle east as well as lots of demand in the UAE, someones got to get the cement to the market and those deals need brokering. The 100m seems just too high, unless thats many many years production, but there is potential for some deals to be brokered, the initial ramada contract was 7 mtpa, that is at least closer to feasible if still a little (a lot) on the high side, but what do i know, well not a lot here!

[karbin12]

SLJB is a cheeeze factory.....

[siron]

For a company that SS said would be run under the Six Sigma method it is obvious it is not in place. Yet another PR that was that has not been satisfied. looks like I'll be holding for a long time.