Displaying items by tag: Holcim
Building new buildings from old ones
19 April 2023Holcim launched its formal take on construction and demolition waste (CDW) this week with the unveiling of its ECOCycle technology platform at the BAU architecture fair in Munich. This amounts to managing the distribution, processing, grinding and recycling of CDW back into new building material products. It claims that its concrete, cement and aggregate products can contain 10 - 100% of CDW with no drop in performance.
It is hard to gauge whether this is marketing for existing operations or the start of something new. Yet, in its 2022 Sustainability Report, Holcim said that it recycled 6.8Mt of CDW back into building products and that it is on track to meet its target of 10Mt by 2025. This target was neatly put into words as wanting “to build more new buildings from old ones.” Ahead of the announcement of the launch of ECOCycle, it added that it was going to roll out its Susteno product around Europe. This product, made from 20% CDW, was originally released in Switzerland in the late 2010s. Notably, recent acquisitions by Holcim that connect to its growing focus on CDW include Poland-based Ol-Trans in July 2022, UK-based Wiltshire Heavy Building Materials in October 2022 and UK-based Sivyer Logistics in April 2023.
As covered by Global Cement Weekly in February 2023, Holcim is not the only heavy building materials company pivoting to CDW. The European Union (EU) set a 70% recovery target for it in 2020 and various cement company sustainability reports have described the region as being receptive to moves into this sector. Cemex set up a global waste management subsidiary called Regenera at the end of January 2023. This division covers both alternative fuels, CDW and industrial by-products, so it is more general than Holcim’s current effort, but it shows intent in the same direction. Cemex previously set a target of recycling 14Mt/yr CDW by 2030.
Heidelberg Materials has been working on developing recycled concrete paste and its ReConcrete-360° concrete recycling process. As of its last sustainability report, this process had been tested at the pilot scale and is now being developed and scaled for industrial application. In addition to acquiring UK-based Mick George Group in December 2022 Heidelberg Materials has also purchased Germany-based RWG Holding in January 2023 and Germany-based SER Group in February 2023. All three companies operate in the CDW sector.
The other notable contribution that Heidelberg Materials has been making is as a partner of the ‘Circular City - Building Material Registry for the City of Heidelberg’ project. When Heidelberg Materials announced its involvement in the initiative in mid-2022 it said it was the first city in Europe to apply the principles of urban mining. The goal of the project is to take an inventory of the city’s buildings and then compile it in a digital material registry. The basis for the registry is the Urban Mining Screener developed by EPEA (Environmental Protection Encouragement Agency). This programme can estimate the composition of buildings based on building data such as location, year of construction, building volume or building type. Circular economy supply chains can then act accordingly when a building is retrofitted, demolished or deconstructed. So, for example, at the start of the project it worked out that a former US Army housing estate conversion site was calculated to contain approximately 466,000t of material, with about half in the form of concrete, a fifth in the form of bricks and 5% as metal.
That last example compares to a European Commission estimate that, as a whole, Europe generates around 450 - 500Mt/yr of CDW. A third of this is concrete. As with alternative fuels and slag previously, this may be money going into the ground. Recycling building materials is not new but any significant increase in reusing CDW that can reduce the clinker factor of cement (and the cement factor of concrete) offers a potentially cheaper route to building materials decarbonisation than carbon capture and utilisation/storage at current costs. Hence the continued interest.
Switzerland: Holcim has launched ECOCycle, its initiative to recycle construction demolition materials into new building products. It says it can recycle construction demolition materials across a broad range of applications, from decarbonised raw materials in low-carbon cement formulation, to aggregates in concrete and fillers in road construction.
Jan Jenisch, the chief executive officer of Holcim, said “Across all metropolitan areas where we operate, we are at the forefront of driving circular construction to build new from the old. With our ECOCycle technology we can build cities from cities, recycling 100% of construction demolition materials into new solutions, so everything gets reused and nothing gets lost. With our world’s growing population and urbanisation, circular construction is essential to build a future that works for people and the planet.”
The building materials producer is deploying its ECOCycle technology across its range of products to scale up circular construction. It says that its process enables concrete, cement and aggregates to contain from 10 - 100% recycled construction and demolition waste with no change in performance. The initiative is supported by distributing, processing, grinding and recycling construction and demolition materials into new building material products.
ECOCycle brings together previous work Holcim has conducted in the field such as launching a cement in Switzerland made with 20% demolition and construction waste. The company is now launching this product elsewhere in Europe. In France it is building an affordable housing complex using 100% ECOCycle recycled concrete. In the UK it is building a residential area with 50% ECOCycle aggregates that have been made from 100% recycled construction demolition materials.
Switzerland: Holcim has appointed Rodolfo Vargas Pedroza as Group Expert Geology. He previously worked as Group Lead Geology for the company from 2018. He has worked for Holcim Group since 2018 and other prior positions include Lead Geologist and Senior Mining Engineer. Before this he was the Head of Geology and Mining for Cemex from 2001 to 2011 and the Geology and Mining Manager for Cemex Colombia in the late 1990s. Vargas Pedroza is a graduate in geology from the Universidad Nacional de Colombia.
Holcim publishes Climate Report 2023
06 April 2023Switzerland: Holcim has published its Climate Report 2023, detailing the company’s progress towards meeting its sustainability commitments up to the end of 2022. The cement producer recorded net specific CO2 emissions per tonne of product of 562kg/t, down by 1.7% year-on-year from 572kg/t in 2021. In line with its 1.5°C climate change-aligned targets, Holcim is committed to 420kg/t specific CO2 emissions by 2030 and net zero by 2050.
Overall, the group’s Scope 1 CO2 emissions from cement production fell by 2.5% to 77Mt from 79Mt, while its Scope 2 emissions remained at 5Mt and its Scope 3 emissions fell by 11% to 47Mt from 53Mt. Its cement had an average clinker factor of 73%, down from 73.6% in 2021. Holcim processed 6.8Mt of construction and demolition waste, up by 3% from 6.6Mt. Meanwhile, its thermal substitution rate of alternative fuel (AF) rose to 28% from 26%.
CEO Jan Jenisch and chief sustainability officer Magali Anderson said “With our successful transformation, we reduced our CO2 per net sales by 21% in 2022, and commit to reducing it by over 10% in 2023. Accelerating the shift to net-zero cities requires deep partnerships across our value chain. In 2022 we engaged with public authorities to evolve building standards, with cities to scale up green demand in their projects, and with architects and engineers to specify sustainable solutions in their designs. We did this as a key partner for our customers, bringing solutions that help them achieve their sustainability goals.”
Holcim acquires Sivyer Logistics
06 April 2023UK: Holcim has acquired leading London construction and demolition waste (CDW) recycling company Sivyer Logistics. Sivyer Logistics produced 500,000t of recycled aggregates and manufactured soils from 1Mt of CDW across its six sites in 2022. Holcim says that the acquisition represents a step towards realising its target of 10Mt/yr of construction and demolition waste in Holcim products by 2025.
The group’s Europe regional head Miljan Gutovic said “Sivyer Logistics is an excellent addition to help us drive circular construction.” He added “I look forward to welcoming all employees of Sivyer Logistics and investing in our next era of growth together.”
Update on Hungary, April 2023
05 April 2023Heidelberg Materials’ reaction to changes in the law in Hungary received attention this week in the German press. The government introduced its Act on Hungarian Architecture in March 2023 that will enable it to set production levels and prices upon foreign-owned cement producers when the new legislation takes force in July 2023. An unnamed executive at the Germany-based Heidelberg Materials told Der Spiegel that, "These regulations represent a complete violation of all rules of the European single market.” They added that the Hungarian government appeared to be trying to force the producer to sell up. The report further alleges that the owners of Duna-Dráva Cement, Heidelberg Materials and Schwenk Zement, also received an offer to buy them out in mid-2022 from an individual with links to Prime Minister Victor Orbán.
This latest move to corral the cement sector in Hungary follows a number of recent changes in legislation. Notably, Decree 404 was introduced in July 2021. This set a 90% tax on the ‘excess’ profits of cement, plaster, chalk, gravel, sand, clay, lime and gypsum producers with the stated intention of wanting to prevent rising prices. The government set a threshold price for cement of Euro56/t at the time. At the same time it also blocked exports of cement and other raw materials of declared strategic importance unless affected companies had registered with the Ministry of the Interior. The European Commission (EC) responded to a parliamentary question on the matter in November 2021 saying that it had sent a formal letter to Hungary informing it that it was breaching some parts of the Treaty on the Functioning of the European Union (EU) on the free movement of goods. Although it noted that the new law also affected exports outside the EU, which was beyond the EC's remit. It added that the so-called ‘mining royalties’ did not seem to breach EU tax law.
Concerns over these issues between Hungary and Germany also surfaced in October 2022 when Orbán met with the German Chancellor Olaf Scholz. At this time Thomas Spannagl, the head of Schwenk Zement, said that the windfall profit tax in Hungary had a "serious negative" impact on business and that importers were not affected in the same way.
Heidelberg Materials’ subsidiary Duna-Dráva Cement is the largest cement producer by production capacity in Hungary with two integrated plants at Beremend and Vác. Together they have a production capacity of 2.8Mt/yr, according to the Global Cement Directory 2023, or about 70% of the country’s active national capacity. Heidelberg Materials reported that its result from equity accounted investments fell by 27% year-on-year to Euro262m in 2022 from Euro356m in 2023 due to a decline in earnings particularly in China and Hungary. This compares to a 4% drop to Euro3.74bn in its result from current operations before depreciation and amortisation across the whole business. Despite this it also noted that Hungary’s overall economic output had grown by 5% in 2022.
Just before the new laws affecting cement companies starting arriving in mid-July 2021, the Hungarian Competition Authority started an investigation into a “drastic” increase in raw material prices. This followed a warning a year earlier in 2020 that it had started competition supervision proceedings against the three main market participants: Duna-Dráva Cement, Lafarge Cement and CRH. All three are foreign-owned companies.
Lafarge Cement Hungary operates the Kiralyegyháza plant and it is due to change its name to Holcim in May 2023. Its predecessor companies, Holcim and Lafarge, also used to run plants at Hejocsaba and Lábatlan before the merger in 2015. However, the Hejocsaba plant ran into legal problems between Holcim and another investor, shut in 2011 and was later forcibly taken over by the other party in 2014. Today the plant operates as Hejőcsabai Cement- és Mészipari (HCM) but cement production is reportedly yet to restart nearly a decade later and Holcim says that legal proceedings are still ongoing. The Lábatlan plant, meanwhile, closed for good in the early 2010s. CRH took over some of Holcim’s other operations in Hungary in 2015 at the same time as the formation of LafargeHolcim but does not run any cement plants in the country at present. It does own cement plants in nearby countries that are able to supply the Hungarian market as well as running 19 concrete units. It describes itself as the “number two player” in the local market. It wasn’t specific on Hungary in its financial results for 2022 but it did describe sales in its Europe East region as being ahead of 2021, “due to a strong focus on commercial actions to offset significant cost inflation.”
Construction costs in Hungary do appear to have grown faster than other European countries in the second half of 2021 as the country came out of the coronavirus pandemic. However, the country's anti-immigrant labour stance may have also contributed to the situation, in addition to the high-energy prices and supply chain bottlenecks experienced elsewhere. In addition, cement companies are also capable of monopolistic behaviour. For example, Duna-Dráva Cement’s proposed acquisition of Cemex Croatia was blocked by the EC back in 2017 on competition grounds. However, given how international the cement industry has become, it is surprising to see this kind of treatment from a government within the European Union.
Thailand: Siam City Cement has appointed Ramjan Sachdeva as its group chief financial officer. He succeeds Mark Anatol Schmidt in the role.
Prior to this he was the Group Head Internal Audit and Compliance for Siam City Cement in Thailand and the Group Commercial Director for mining company Vedanta in India. Earlier in his career he spent eight years working for Holcim in India in procurement and audit roles, as well as for Nestlé.
Sachdeva holds a degree in mechanical engineering from the Thapar Institute of Engineering & Technology in India and a master of business administration qualification from the University of Leicester in the UK.
Holcim Argentina seeking Young Leaders
05 April 2023Argentina: Holcim Argentina has announced the launch of its Young Leaders youth professional development programme in its host provinces of Córdoba, Buenos Aires, Jujuy and Mendoza. The programme seeks to identify 15 'innovative, curious and results-oriented' young talents with qualifications and experience in the area of industrial, mechanical, electrical and chemical engineering, business administration, marketing, architecture or logistics. Those chosen will occupy eight-month placements at the company, beginning on 15 May 2023. There, they will manage projects under the guidance of a tutor.
Holcim Argentina's head of talent and development Claudia Vitale said "Young Leaders is specially designed to accelerate young professionals' growth by placing them in a high-performance team. It is an excellent opportunity for personal and professional development in a global industry-leading company."
Holcim completes Duro-Last acquisition
04 April 2023US: Holcim has completed its acquisition of roofing systems producer Duro-Last.
CEO Jan Jenisch said "This is another exciting step in the expansion of Solutions and Products, advancing our Strategy 2025 - Accelerating Green Growth." He added "I am excited to welcome all 840 Duro-Last employees to the Holcim family. Duro-Last is a perfect strategic fit for our roofing business. Its proprietary technologies and leading brands complement our offering in the fast-growing North American market. Its energy-efficient systems and excellence in recycling will further advance our leadership in sustainability."
Holcim Mexico launches Fuerte Más reduced-CO2 cement
30 March 2023Mexico: Holcim Mexico has commenced production of its Fuerte Más reduced-CO2 cement at its cement plants in Macuspana and Tabasco at a combined rate of 60,000t/yr. The cement offers 50% reduced CO2 emissions and 10% higher physical performance than ordinary Portland cement (OPC). The El Economista newspaper has reported that Holcim Mexico replaces some of the clinker in the cement with locally-sourced minerals from Southeast Mexico. Chemical compounds in the material colour the cement red.
The Centre for Technological Innovation for Construction (CITEC) Toluca verified the product as suitable for all applications. Holcim Mexico's industrial director Adrián Belli said that comparable green cements are currently only available in France and Italy.