Displaying items by tag: Cemex
Spain: Mexico-based Cemex subsidiary Cemex España has announced plans to resume activity at its Lloseta cement plant in Majorca at a limited production level. The UltimaHora newspaper has reported that the company will employ the staff who stayed on for maintenance purposes from the plant’s January 2019 closure. After suspending activity at the plant the company had until mid-April 2021 to inform the local government of its plans for the site.
Cemex is in the process of establishing a green hydrogen plant at Lloseta with a Euro10m EU grant. It said, "We do not rule out that in the future the cement plant may adapt and become an industrial benchmark in the use of green hydrogen for the production of cement with a low carbon footprint."
Mexico: Cemex has appointed Louisa (Lucy) P Rodriguez as its Executive Vice President of Investor Relations, Corporate Communication and Public Affairs. She was previously head of Investor Relations. In the new role Rodriguez will report directly to the group chief executive officer.
Rodriguez holds over 25 years’ experience in international finance and capital markets. She joined Cemex in 2006 in the Investor Relations Department. She also represents the company in the international financial community. Prior to working for Cemex, Rodriguez spent 15 years at Citibank where she worked in capital markets origination, debt syndicate and securitization financing for Emerging Market issuers. In her early career, she worked for KPMG in their Audit Department. She holds a BA in Economics from Trinity College in Connecticut, US and an MBA from New York University and a Masters from Columbia University School of International and Public Affairs. She has been a Certified Public Accountant.
Cemex USA uses Kespry drones for stockpile management
11 March 2021US: Kespry says that Cemex USA is using its drone and software product for stockpile management at its operations. A Cemex representative said that it has mapped 74,500ha of land over more than 4000 drone missions using Kespry’s product. The supplier uses autonomous aerial drones to gather survey data and then uses machine learning techniques to analyse the results.
Director of aggregate resources Matt Lewis said, “Kespry plays a critical role at both our cement and aggregates sites, despite operations being significantly different. Since initially adopting Kespry, we have been able to measure 21,100 stockpiles across our aggregates sites, while also collecting massive amounts of topographic data into the Kespry Cloud across our cement sites. The amount of time and money the Kespry platform has saved us is unmatched, and we wouldn’t be able to operate at this level if it weren’t for Kespry.”
Cemex Dominicana to recommission production line
09 March 2021Dominican Republic: Cemex Dominicana plans to recommission line 1 at its 2Mt/yr integrated San Pedro de Macorís plant. The move is expected to increase its existing clinker production capacity by more than 0.5Mt/yr. The reactivation is scheduled for the last quarter of 2021. It is part of Cemex Dominicana's growth plan, seeking to strengthen its capacity to response to both local market demand and the export market.
"At Cemex Dominicana, we reiterate our commitment to the sustainable development of the Dominican Republic, in the context of boosting the national economy, aiming with these investment plans to reduce the need for imports, promote local industry, and contribute to the generation of employment in the country," said José Antonio Cabrera, Director of Cemex Dominicana.
Cemex supplies cement for Santolea Canyon dam project
05 March 2021Spain: Cemex is supplying cement to the site of the upcoming Santolea Canyon dam in Aragon. The 59m-high structure will hold a 105hm3 reservoir, which will provide water to 2000 surrounding farms. Concrete pouring began at the site in March 2020 and is scheduled to reach completion in mid-2021.
Europe, the Middle East, Africa, and Asia regional president Sergio Menendez said, "We are very proud of our participation in the construction of the Santolea Canyon dam, a key project requiring materials and solutions of the highest technical and environmental specifications. The new Santolea dam will greatly contribute to support sustainable growth in the region”.
Cemex reintroduces bighorn sheep in Northwest Mexico
05 March 2021Mexico: Cemex has partnered with reintroduction specialist Ovis to release bighorn sheep at a site in Sierra El Viejo, Sonora state. The UMA El Plomito ranch supplied nine sheep. Four more sheep were born in the open pre-release pen which the sheep currently inhabit. The partners will support the animals with supplementary food and water while they adapt to their new environment.
Head of sustainability Vicente Saiso said, "The reintroduction of the bighorn sheep in Sonora represents one more example of our commitment to the conservation of biodiversity. It is a successful example of joint work between companies and conservation organisations to create a better future for our planet."
Cemex UK launches Supaflo Rapide screed
04 March 2021UK: Mexico-based Cemex subsidiary Cemex UK has announced the launch of Supaflo Rapide, a calcium sulphate binder-based screed for all domestic and commercial floor applications. The company said that the product achieved a moisture condition of below 75% relative humidity at between 10 and 15 days under controlled conditions.
West Europe regional quality and product technology director Steve Crompton said, “Our technical expertise has enabled us to develop a new, more sustainable, premium quality screed that will help increase the efficiency of the job site, allow effective use of labour and improve the climate impact of projects. Supaflo Rapide uses an enhanced calcium sulphate binder and the latest admixture technology to cut down on drying time while maintaining the speed of installation associated with these types of screeds.” He added, “This will greatly benefit construction companies as they juggle the on-going challenges of site working requirements alongside increasing demand for fast and safe completion of jobs with a lower environmental impact.”
2020 roundup for the cement multinationals
03 March 2021LafargeHolcim’s financial results for 2020 arrived this week, giving us data on many of the larger multinational cement producers. The Chinese ones are yet to release their results and some of the larger other ones such as CRH, Votorantim and InterCement are pending too. Yet, what we have so far gives a selective view on an unusual year. Revenue was down for most producers year-on-year in 2020 due to the effects of the coronavirus pandemic upon construction activity and demand for building materials. There were large regional differences between how countries implemented different lockdowns, how markets responded and how they bounced back afterwards. Generally, the financial effects of this were felt in the first half of 2020 with recovery in the second.
Graph 1: Sales revenue from selected cement producers in 2019 and 2020. Source: Company reports. Note: Figures calculated for Indian producers.
Graph 2: Cement sales volumes from selected cement producers in 2019 and 2020. Source: Company reports. Note: Figures calculated for Indian producers.
LafargeHolcim’s figure in Graph 1 above is a little misleading given that it has divested assets. Its like-for-like reduction in net sales was more like 6%, a similar figure to HeidelbergCement’s. Both experienced mixed results in North America and Europe but not terribly so. LafargeHolcim did relatively well in Latin America. HeidelbergCement found growth in its Africa-Eastern Mediterranean Basin region. It’s also worth noting the comparative leverage of each company: 1.4x for LafargeHolcim and 1.86x for HeidelbergCement. Both are slimming down but the latter’s ongoing divestment plan (see GCW 494) can be seen in the context of its debt to earnings ratio and the cash crisis that coronavirus threw up in 2020.
The contrast between these companies and Cemex and Buzzi Unicem is striking. Both of these benefitted from operations in the North America and parts of Europe. In Cemex’s case sales in Mexico and the US, made the difference despite falling sales elsewhere. Buzzi Unicem’s sales also held up in the US especially in the second half of the year. Europe was more mixed for both producers with growth reported in Germany but losses elsewhere.
The Indian producers tell a different story but one no less notable. Despite a near complete shutdown of production for around a month from late March 2020, the regional market largely recovered. As UltraTech Cement told it in January 2021, “Recovery from the Covid-19 led disruption of the economy has been rapid. This has been fuelled by quicker demand stabilisation, supply side restoration and greater cost efficiencies.” It added that rural residential housing had driven growth and that government-infrastructure projects had helped too. It expects pent-up urban demand to improve with the gradual return of the migrant workforce.
Unfortunately, Semen Indonesia, the leading Indonesian producer, suffered as the country’s production overcapacity was further hit by scaling back of government-based infrastructure projects as it tackled the health situation instead. Its solution has been to focus on export markets instead with new countries including Myanmar, Brunei Darussalam and Taiwan added in 2020 joining existing ones such as China, Australia and Bangladesh. The company’s total sales volumes may have fallen by 8% year-on-year to 40Mt in 2020 but sales outside of Indonesia, including exports, grew by 23% to 6.3Mt.
On a final note it’s sobering to see that the third largest seller of cement in this line-up was UltraTech Cement, a mainly regional producer. Regional in this sense though refers to India, the world’s second largest cement market. By installed production capacity it’s the fifth largest company in the world after CNBM, Anhui Conch, LafargeHolcim and HeidelbergCement. This move towards regionalisation among the large cement producers can also be seen in the large western-based multinationals as they are heading towards fewer but more selective locations. More on the world’s largest producer, China, when the producers start to releases their financial results towards the end of March 2021. Whatever 2021 brings, let’s hope it’s better than 2020.
Caribbean Cement grows sales in 2020 due to local market
03 March 2021Jamaica: Caribbean Cement’s revenue grew by 13% year-on-year to US$134m in 2020 from US$119m in 2019. Operating earnings rose by 32% to US$42m from US$28.8m. The subsidiary of Mexico-based Cemex said that he increase in revenue was related to stronger domestic demand and the company's capacity to supply the local market.
Mexico: Cemex plans to start using hydrogen as part of its fuel mix at its cement plants around the world in 2021. The estimated cost of the roll-out is US$40m. The company says it completed the deployment of its hydrogen technology across all of its cement plants in Europe in 2020 following trials at the Alicante Cement Plant in Spain in mid- 2019.
Global operations, technical and energy vice-president Roberto Ponguta said, “The fast adoption of this new hydrogen-based technology is a clear example of Cemex's innovation efforts and its strong commitment to decarbonise the cement production process.” He added, "We continue to identify and deploy existing technologies which have a high potential to contribute to our sustainability goals, and hydrogen is a key lever.”