Displaying items by tag: US
Cemex USA partners with Membrane Technology & Research for government-funded Balcones cement plant carbon capture study
10 November 2020US: The Department of Energy has granted Cemex funding to “research and develop innovative carbon capture technology” at its Balcones, Texas cement plant. The company says that this will partly fund an 18-month feasibility study of partner company Membrane Technology & Research’s membrane carbon capture product at the plant. It says that, if successful, the study will be “an important advancement towards Cemex’s ambition to deliver net-zero carbon dioxide (CO2) concrete globally by 2050.”
USA president Jaime Muguiro said, “At Cemex, sustainability is embedded in our operations and we are consistently looking for opportunities to reduce our carbon footprint. We strive to develop and gradually adapt new technology which will help us achieve our ambition to deliver net-zero CO2 concrete to all of our customers. With this grant, we will be able to leverage our expertise to define the feasibility of implementing the membrane carbon capture technology in a cost-effective manner.”
Membrane Technology & Research has supplied membrane-based separation systems to the petrochemical, natural gas, and refining industries since 1992. Vice President of Technology Tim Merkel said, “Cement plant emissions are a good target for the CO2 capture membrane technology that we’ve been developing with Department of Energy support.” He added, “We look forward to working with Cemex on this exciting project to confirm that our technology can capture cement plant emissions at a minimal cost.”
US: Eagle Materials recorded sales of US$875m in the six months between 1 April 2020 and 30 September 2020, the first half of its 2020 financial year, up by 16% year-on-year from US$756m in the first half of the 2019 financial year. Net earnings were US$192m, up by 70% from US$113m. Total cement shipments rose by 28% to 4.27Mt from 3.33Mt.
President and chief executive officer (CEO) Michael Haack said, “We are pleased to have delivered another quarter of record revenue and net earnings growth while further strengthening our balance sheet. Our end markets remain resilient as Covid-19-related uncertainty persists: the housing market continued its strong rebound, cement demand remained robust, despite wet weather in the first half of September.” He added that the company shipped a record 2.2Mt of cement during the quarter.
LafargeHolcim boosts earnings in third quarter of 2020
30 October 2020Switzerland: LafargeHolcim’s like-for-like net sales fell by 2.6% year-on-year to Euro6.04bn in the third quarter of 2020 from Euro6.68bn in the same period in 2019. However, its recurring earnings before interest and taxation (EBIT) rose by 10% to Euro1.35bn from Euro1.33bn. It attributed recurring EBIT margin growth to margin increase in its cement business and cost management under the ‘Health, Cost & Cash’ action plan. For the first nine months of 2020 net sales fell by 7.9% year-on-year to Euro16.0bn from Euro18.9bn in the same period in 2019. Its EBIT decreased by 7.2% to Euro2.47bn from Euro2.88bn.
“Our third quarter results demonstrate the resilience of our business and the strength of our decentralized, empowered operating model,” said chief executive officer (CEO) Jan Jenisch. “In addition, the Group saw an increase in revenues from its branded products, which are sold across its broad distribution and retail network. For example, the company recorded a volume increase of 5% in its cement bag sales.”
Third quarter sales and earnings were either stable in improved in most regions with the exception of North America and Middle East Africa. In North America volumes were reduced by coronavirus and a slowdown in the oil and gas industry in western Canada. Overall sales fell in Middle East Africa but earnings were aided by sales volume growth in Nigeria. Elsewhere, cement market recovery was noted in Mexico and Brazil and weaker markets mentioned in the Philippines and Australia.
Grupo Cementos de Chihuahua increases nine-month earnings amid consistent sales levels
28 October 2020Mexico: Grupo Cementos de Chihuahua (GCC) recorded nine-month net sales of US$705m in 2020, down slightly from US$706 in the same period of 2019. Operating earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 10% to US$227m from US$206.
Chief executive officer (CEO) Enrique Escalante said, “We experienced mixed demand for our products in most of our markets in Mexico and the US, however both exceeded our expectations from the beginning of the Covid-19 pandemic. Looking forward, our backlog remains encouraging, while overall macro conditions show mixed signs, and short-term uncertainty prevails, mainly regarding Covid-19 outbreaks and weather. Therefore, our goal is to maintain our financial strength, keep people safe and employed, and to continue to serve GCC’s life blood - our invaluable customers.”
US: Green Business Certification Inc has awarded Titan America’s Pennsuco cement plant in Medley, Florida the TRUE Platinum zero waste certificate. TRUE, which stands for “Total Resource Use and Efficiency,” provides a ratings systems by which facilities can receive recognition for achieving zero waste goals. The Pennsuco plant, “repurposed office supplies and materials, composted organic waste and xeriscaped – the process of landscaping that reduces or eliminates the need for supplemental water from irrigation – among other major initiatives.” The plant is the first in the cement industry to achieve TRUE Platinum certification.
Environmental engineer Allyson Tombesi, who led the zero waste recertification, said, “It’s not just about receiving an award: being zero waste is about considering how we can minimise our impacts so that future generations have the opportunity to live in a sustainable environment. The programme was created with a goal to encourage our employees to lead a zero-waste lifestyle at both the plant and at home. Through programme participation, we hope to inspire our employees and our industry to take action that benefits the future of our planet.”
Update on the US: October 2020
21 October 2020Ed Sullivan was present to tell Global Cement Live viewers about the Portland Cement Association’s (PCA) autumn forecast last week. The PCA expects US cement consumption to drop by 1.5% year-on-year on 2020. This is a weighted average of its three projections, which cover a gradual recovery from coronavirus-related economic disruption, a less controlled scenario and one where wide-spread vaccination has a positive effect in the second half of 2021. The first scenario is the PCA Market Intelligence’s most likely one but only the fast vaccination scenario predicts a return to growth in 2021. This is wide but understandable deviation from the PCA’s autumn forecast in 2019 that expected moderate growth albeit a slowly weakening economy. Almost nobody seriously expected 2020 to turn out like it has. Follow the link at the bottom of this article to view the presentation in full.
Graph 1: Portland & Blended Cement shipments by US region in 2019 and 2020. Source: United States Geological Survey (USGS).
We’ll now take a general look at the US cement industry so far in 2020 to compliment Sullivan’s economic overview. Up until 2020 cement consumption, production and imports had been growing steadily since the financial crash in 2008. Using August 2020 data the PCA says this is changing. Graph 1 above shows a general reverse of the position in the autumn of 2019 [LINK] with declines in the South and North-East and growth in the West and Midwest. Imports alongside this have continued to build. Overall, national cement shipments increased by 2.2% year-on-year to just under 50Mt in January to July 2020 from 48.9Mt in the same period in 2019. This was driven by growth of 10.8% in the Midwest. Missouri is the standout in the region, behind only Texas and California nationally as the third biggest cement shipping state so far in 2020.
From the corporate side, LafargeHolcim, the US’ biggest cement producer, described North America as having, “…the most resilience of all regions despite Covid-19 restrictions in some areas.” It reported an overall fall in cement volumes of 1.4% year-on-year to 8.9Mt in the first half of 2020. However, it didn’t go into specifics for the US. Cemex’s experience seemed to be doing better with an 8% rise in cement volumes supported by the infrastructure and residential sectors. HeidelbergCement went further and described the impact of coronavirus on the US economy as ‘significant.’ It reported a decrease in cement deliveries at its North American plants of 4.9%, to 7.1Mt. Both Buzzi Unicem and CRH reported cement sales growth of 4 – 5%, with CRH noting that, “strong volume trends in West supported by growth in our downstream businesses drove performance.”
Perusing the industry news reveals a slew of environmental stories. So far in 2020, Holcim US said it was going to run a carbon capture and storage (CCS) study at its Portland cement plant in Colorado, Alamo Cement signed a deal to build a solar farm, Grupo Cementos de Chihuahua’s (GCC) Rapid City plant in South Dakota announced plans for a wind farm, CalPortland launched a sustainable product line with a lower clinker factor, LafargeHolcim launched its ECOPact low-carbon concrete range, LafargeHolcim US also said it was adopting new environmental product declarations and Holcim US opened a solar power plant at its Hagerstown cement plant. There have been a few upgrade stories, like the new line being built at National Cement’s Ragland plant in Alabama or Lhoist’s new lime kiln projects, but Lehigh Hanson said it was suspending work on the upgrade to its Mitchell plant in Indiana in April 2020.
At this point all eyes are on the US Presidential election scheduled to run on 3 November 2020. Donald Trump’s long promised but never delivered infrastructure still hasn’t arrived although blame could be apportioned to both sides of the local political divide for this. The PCA believes that both presidential candidates will probably see it through although the Republicans’ interpretation might well involve more cement! In the interest of balance though, it also expects the Democrats to focus on low-income housing construction. At this stage it seems more likely that the early arrival of a coronavirus vaccine will have more impact on the cement industry in the short to medium term than the results of the election.
US: The Portland Cement Association (PCA) has forecasted a fourth-quarter cement demand decline of 1.5% year-on-year in 2020, slowing to 0.9% throughout 2021. It said that all three of its post-coronavirus economic recovery scenarios involved a decline until mid-2021, primarily due to “weak construction sectors specifically within retail, hotel and office” non-residential markets, though in the best-case scenario a vaccine could prompt a recovery in these sectors, reducing total demand decline to 0.1% in the second half of 2021. A worst-case ‘W-shaped’ scenario would result from state governments implementing second lockdowns.
Senior vice president and chief economist Ed Sullivan said, “We think that the gradual sustained recovery – the 'U' – has the largest likelihood, followed by the 'vaccine' scenario. The growth-interrupted 'W' scenario is the least likely. He said that in each case federal spending in the fourth quarter of 2020 and the first quarter of 2021 would be essential “in preventing a deep and prolonged downturn in economic recovery,” as it did in the second and third quarters of 2020.
Schenck Process signs supply contract with BFM Global
16 October 2020North America: Germany-based Schenck Process has awarded a contract for the supply of “fitting connectors, spigots and bulk bag loaders to one of its North American plants” to original equipment manufacturing (OEM) company BFM Global. It says it will integrate BFM Global products in pneumatic conveying, dust collection, weighing and feeding systems produced at the plant, all of which it sells to the cement industry.
Americas regional president Jay Brown said, “Entering this partnership with BFM Global aligns with our strategy of providing industry recognised parts and system components to our customer base. Working with a company that understands the challenges of bulk material handling strengthens our solutions capabilities. We look forward to what this partnership will bring to Schenck Process and the customers we serve.”
LafargeHolcim faces US$270m compensation claim over violation of US sanctions in Cuba
12 October 2020Cuba/US: A court in Florida has accepted a request for damages worth US$270m from LafargeHolcim to over 20 parties from Cuba whose land was nationalised and subsequently had a cement plant built on it. The claim alleges that Switzerland-based Holderbank has held a stake in the partly-state owned Carlos Marx cement plant near Cienfuegos since 2001 via a deliberately “complex network of letterbox companies and transactions” in the Netherlands and Spain, according to the Tages Anzeiger newspaper. Holderbank later became Holcim and then LafargeHolcim.
The building materials producer’s alleged involvement may constitute a violation of the US embargo on trade with Cuba for companies active in the US. The claim has been aided by a clause in the US’s Cuban blockade law, activated by President Donald Trump, enabling Cubans to claim damages in US courts for expropriated property from private companies which profited from them.
Holcim US opens solar power plant at Hagerstown cement plant
09 October 2020US: LafargeHolcim subsidiary Holcim US has opened a 10MW solar power plant at its Hagerstown, Maryland cement plant in partnership with Greenbacker Renewable Energy Company. The producer says that the power plant will supply 25% of the cement plant’s energy needs, reducing its carbon dioxide (CO2) emissions by 12,400t/yr.
LafargeHolcim cement US operations chief executive officer (CEO) Jamie Gentoso said, “As solar technologies continue to improve, this abundant energy source stands out as both a sustainable and economical solution to follow through on our commitment to minimise emissions and reduce our carbon footprint. We already have access to large areas of land with a high concentration of sunlight, so utilising solar energy is an easy decision. As we strive toward becoming a net-zero company, clean energy is a key part of our strategy. We hope to install enough renewable energy to power all of our plants and give back to the surrounding communities by 2026; this new solar array is just the beginning for us.”