Displaying items by tag: Cemex
Cemex to spend US$850m on plant upgrades in 2019
29 March 2019Mexico: Rogelio Zambrano, president of the board of directors of Cemex, says that the group intends to spend US$850m towards expanding existing cement plants and promoting renewable energy projects in 2019. Around US$160m will be invested in Mexico, mainly in central and southeastern plants, according to the Expansión newspaper. Zambrano made the comments at an annual investors meeting. The group has also published its integrated report for 2018. It reported a 27.1% alternative fuels substitution rate for the business and a 26% rate of power consumption for cement production from renewable sources.
Cemex makes progress towards divestment target
22 March 2019Mexico: Cemex says it has made ‘significant’ progress towards its US$1.5 – 2bn asset disposal target by the end of 2020. Since the target was announced in mid-2018 the group has announced the divestment of assets in northern Europe, a terminal in Manaus in Brazil, aggregates and ready-mix concrete (RMX) assets in Germany, its white cement business including the Buñol cement plant in Spain and other assets. These sales will generate around US$750m or half of its lower target.
“We remain completely committed towards the goal of achieving an investment grade capital structure and will continue our disciplined deleveraging and improvement of our capital structure,” said Fernando A Gonzalez, the chief executive officer (CEO) of Cemex.
Poland: Germany’s Bilfinger is installing refractory linings at Cemex Polska’s Rudniki cement plant. It is also carrying out assembly work at various parts of the unit. The industrial services company is installing the refractory linings for parts of the plant, which entails using around 2000t of refractory material within a five-month period. It is part of the installation of a new cement clinker production line at the site.
The contract comes under Bilfinger’s Engineering & Maintenance Continental Europe division. Companies for which Bilfinger has worked on past contracts in Poland include cement producers CRH and Dyckerhoff.
Spain: Turkey’s Çimsa Çimento has purchased Cemex’s white cement business in Spain, including its Buñol plant, for around US$180m. Cemex expects to sign the final agreement in April 2019 and close this divestment during the second half of 2019. The proposed divestment does not include Cemex’s white cement business in Mexico, nor its interest in Lehigh Cement in the US.
“With the purchase of the Buñol white cement plant in Spain, we are upgrading our game in the white cement sector, the highest value-added business in the global cement market. With the integration of the Buñol white cement plant to our production and distribution networks, we will increase our white cement production capacity by 40%, translating into Çimsa becoming the world's largest white cement company,” said Tamer Saka, the president of Sabancı Holding Cement Group and chairman of Çimsa. He added that Çimsa is among Turkey’s leading exporters. In 2018 it generated over 50% of its operational profit from overseas operations.
Once a final agreement is reached the transaction is subject to standard regulatory approval.
Mexico/US: Cemex has entered into a global agreement with Petuum to implement its Industrial AI Autopilot software products for autonomous cement plant operations at its plants around the world. The products for cement plant operations are being deployed at select Cemex USA and Mexico plants and will continue to be rolled out in 2019.
"We expect our yield improvements and energy savings to be up to 7%, from the connected AI-based autopilots, which is game-changing for our industry,” said Rodrigo Quintero, Operations Digital Technologies Manager at Cemex.
Petuum says that its Industrial AI Autopilot suite of products can deliver real-time forecasts for key process variables, prescriptions for critical control variables and supervised autosteer aligned with business objectives for all cement plant operations including clinker cooler, preheater, rotary kiln, pyro-process, ball mill and vertical mill processes to achieve lowered energy consumption, optimised fuel mix and increased throughput while maintaining stable operation and product quality. The products are integrated with plant control systems and OSIsoft PI data infrastructure for scalable and standardised deployments across multiple lines and plants globally.
The joint Cemex and Petuum teams achieved a cruise-control-like supervised ‘autosteer mode,’ where the AI Autopilot could run operations with full engage-disengage control available to the operator.
To find out more about Pettum visit: https://petuum.com/
Cemex receives certification from Concrete Sustainability Council for German concrete plants
21 March 2019Germany: Cemex has received certification from the Concrete Sustainability Council (CSC) certification for five of its ready-mix concrete (RMX) plants in Berlin and Potsdam. The CSC acts as a certification system, grading building materials facilities on environmental, social and governance practices throughout supply chains. The auditing was conducted by Kiwa Deutschland, an independent certification body recognised by the CSC.
Germany: Cemex has reached a binding agreement to sell its aggregates and ready-mix concrete assets in the north and northwest regions of Germany to GP Günter Papenburg for around Euro87m. It expects to sign the final agreement in April 2019 and close the divestment during the second quarter of 2019.
The assets in Germany being divested consist of four aggregates quarries and four ready-mix concrete (RMX) plants in north Germany, and nine aggregates quarries and fourteen RMX plants in northwest Germany.
The proceeds expected to be obtained from this divestment will be used mainly for debt reduction and for general corporate purposes. The transaction is subject to standard regulatory approval.
US: Argos USA’s Harleyville cement plant in South Carolina and Grupo Cementos de Chihuahua’s (GCC) Pueblo plant in Colorado have been awarded Energy Star certification by the Environmental Protection Agency (EPA) for the first time. Altogether 100 manufacturing plants across different industries earned the certification in 2018.
24 cement plants received the certification in 13 states. These cement companies included Alamo Cement, Argos USA, Buzzi Unicem, CalPortland, Cemex, Continental Cement, GCC, Holcim US, Lehigh Cement, Salt River Materials and Titan America.
“America’s cement manufacturers’ commitment to sustainable manufacturing have led to improved equipment reliability, energy efficiency, and the increased the use of alternative fuels,” said Portland Cement Association president and chief executive officer (CEO) Mike Ireland.
2018 for the cement multinationals
13 March 2019All the major multinational cement producers reported growing sales in 2018. Yet, the big growth was found outside of Europe, with China Resources Cement (CRC), Ultratech Cement and Dangote Cement all posting sales revenue growth of above 10%. Similarly, cement sales volumes continued to rise. CRC and Ultratech Cement were the standouts here, with the latter benefitting from its acquisitions including, most recently, Binani Cement. Concrete sales volumes were the same, rising for all the companies with the exception of Buzzi Unicem. It suffered market issues in Italy and Germany.
Graph 1: Sales revenue from selected multinational cement producers in 2017 and 2018 (Euro billions). Source: Company financial reports.
Graph 2: Cement sales volumes from selected multinational cement producers in 2017 and 2018 (Mt). Source: Company financial reports.
Graph 3: Ready-mixed concrete sales volumes from selected multinational concrete producers in 2017 and 2018 (Mm3). Source: Company financial reports.
With the major Chinese producers, including CNBM and Anhui Conch, yet to release their annual results for 2018, CRC is included in this roundup to give an idea of how that market is performing. Both CNBM and Anhui Conch have released profit alerts anticipating bumper results in 2018 though. This is likely due to boosted local cement prices.
The major story for the European-based producers was one of asset sales and debt reduction. LafargeHolcim returned to positive income in 2018 with a focus on its Strategy 2022 programme. HeidelbergCement’s earnings were hit by poor weather in the US and insufficient divestments. Cemex, although based in Mexico, retains a significant European presence and so it included here. It suffered from poor sales outside of its base in Mexico and the US. CRH continued on its trajectory as the world’s biggest building materials company with solid sales and earnings growth. Interestingly though given its expansion strategy in recent years CRH’s debt to earnings before interest, taxation, depreciation and amortisation (EBTIDA) ratio remains better than the other three majors above, even after its purchase of Ash Grove Cement in mid-2018 taken into account. Although other financial comparisons are worth considering, such as EBITDA margin.
Despite Cemex’s relatively high net debt compared to its peers it has been cutting its debt the fastest, at 8% to US$10.4bn in 2018. Its current plan is to reach an ‘investment-grade’ balance sheet by 2020. LafargeHolcim and HeidelbergCement are in ‘cuts’ mode leading to all sorts of speculation about where they might sell next. The wilder rumours in the press include preparations by LafargeHolcim to sell its entire operation in the Middle East and Africa. Similar tales about a sale in the Philippines are more credible but remain unconfirmed. HeidelbergCement is keeping its cards closer to its chest but poor performing territories that might be up for sale include some of its Italian plants and parts of Africa.
Of the larger producers without a European presence, Ultratech Cement has been negatively effected by energy costs during the nine months to the end of 2018 with its income and EBITDA down. Dangote Cement’s performance in 2018 was driven by sales at home in Nigeria although earnings elsewhere continued to grow.
With all of this in mind the scene appears set for a breakout by a major Chinese producer to buy a big bolt-on acquisition or expansion by regional or national players along the lines of that seen by Semen Indonesia or UltraTech Cement. Taiwan Cement has been ahead here with its purchase of a 40% stake in Turkey’s Oyak Cement but what we’re really waiting for is a majority position within a country or territory. At which point CNBM and the like will have earned its place in the 2019 version of this article. Perhaps the age of truly multinational cement producer is coming to an end as regional players become more prominent.
Mexico: Cemex Mexico’s Guadalajara cement plant has been awarded Clean Industry Certification by the Federal Attorney for Environmental Protection (PROFEPA). The plant first received recognition for its environmental compliance in 1997, according to the El Informer newspaper.