Displaying items by tag: Switzerland
LafargeHolcim steps back from BASF Construction Chemicals bid
10 October 2019Germany/Switzerland: LafargeHolcim has dropped a bid for BASF Construction Chemicals due to pricing issues, according to sources quoted by Bloomberg. The heavy building materials producer was also concerned about the length of the sale process and issues concerning integrating it into the group.
Romania/Switzerland: Romania’s anti-trust authority has completed its review of LafargeHolcim’s takeover of the precast concrete manufacturer Someco for an undisclosed sum. SeeNews has reported that the body found that “no significant obstacles to effective competition” were raised by the deal.
Somaco’s five precast concrete and one aerated concrete block production plants, which employ 750 people, made sales of Euro56m in 2018.
Meetings called for Jura Cement quarry expansion debate
30 September 2019Switzerland: Extraordinary Community Meetings have been scheduled in the municipalities of Veltheim and Auenstein for 22 and 23 January 2020 for further consultations with groups representing opposition to Jura Cement’s Jakobsberg-Egg quarry development plans in both districts. The company is planning a total 10.5ha expansion across both municipalities and an operational change to material processing, beginning in 2022.
Switzerland: LafargeHolcim’s executive committee has taken on Magali Anderson in the newly-created role of Chief Sustainability Officer. Anderson is a mechanical engineer with extensive managerial and functional experience who joined LafargeHolcim in 2016 as its Head of Health and Safety. LafargeHolcim CEO Jan Jensich has stated that the appointment “will accelerate LafargeHolcim’s vision of running its operations with zero harm to people and the environment.”
ABB’s new generation interface advances process control
19 September 2019Switzerland: Minerals process control innovator ABB has unveiled new visual control graphics for its Ability System 800xA, which is installed at 450 cement and mining sites worldwide. The platform, called 800xA 6.1, is compatible with other existing ABB and external vendor subsystems.
“As the main interface between humans and the production site, visualisation is critical,” said Michael Marending, lead engineer at ABB. The upgrade allows for extensive customisation for tailored presentation including navigation shortcuts, and features a specially designed alarm system.
Vicat fights poor markets in Turkey, Switzerland, Indian and West Africa in first half of 2019
02 August 2019France: Vicat’s sales rose by 4.6% year-on-year to Euro1.34bn in the first half of 2019 from Euro1.28bn in the same period in 2018. This was mainly due to its acquisition of Brazil’s Ciplan in late 2018. At constant scope and exchange rates its sales fell by 0.6% due to poor markets in Turkey, Switzerland, Indian and West Africa. Its earnings before interest and tax fell by 9.4% to Euro97m from Euro107m. Cement sales volumes dropped by 4.9% to 10.8Mt from 11.4Mt and concrete volumes decreased by 6.7% to 4.3Mm3 from 4.57Mm3.
“In the first half of 2019, solid performances in France, Asia and the US drove an increase in our sales and earnings before interest, taxation, deprecation and amortisation (EBITDA). These results reflect a marked improvement in the operational profitability given the on-going increase in consumed energy costs, the deteriorating macroeconomic situation in Turkey and the exceptional rainfalls in California that we experienced in the first half,” said Guy Sidos, the group’s chief executive officer (CEO).
By region, the group’s sales and earnings rose in France but fell in the rest of Europe. Sales grew in the Americas region, even without the Ciplan acquisition, but earnings fell due to a Euro10.6mn settlement payment booked in the US in the first half of 2018. The group’s sales fell in India but earnings rose due to price increases. Poor markets in Turkey and Egypt hit sales and caused a loss.
Switzerland: LafargeHolcim’s divestments in Southeast Asia have coincided with a positive first half to 2019. Its net sales rose by 3.5% year-on-year on a like-for-like basis to Euro11.8bn in the first half of 2019 from Euro12bn in the same period in 2018. Its recurring earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 7.2% in real-terms to Euro2.41bn from Euro2.25bn. Its cement sales volumes rose slightly by 0.7% on a like-for-like basis to 104Mt and sales of ready-mixed concrete decreased by 2% to 23.6Mm3.
“We have achieved a strong first half of the year and successfully continued our profitable growth strategy. All business segments have contributed to this success and to the continued over-proportional growth in profitability,” said Jan Jenisch, the chief executive officer (CEO) of the company. The group attributed the growth to ‘successful’ pricing and growing cement volumes.
The race to digitise the cement industry
10 July 2019The big announcement from LafargeHolcim this week was the launch of its Industry 4.0 plan known as ‘Plants of Tomorrow.’ The scheme hopes to use automation technologies and robotics, artificial intelligence, predictive maintenance and digital twin technologies across the company’s entire production process. Operational efficiency gains of 15 - 20% are promised.
There wasn’t much detail beyond the use of the Siggenthal integrated cement plant in Switzerland as the ‘lighthouse’ of the scheme, where around 30 proof-of-concept technology ideas will be tested. One technology it did flesh out a little was its long-running Technical Information System (TIS). This follows the work between Holcim and the power and automation product supplier ABB. LafargeHolcim says that over 80% of its plants around the world use the TIS to provide data transparency at plant, country, regional and global level. It added that some country operations have more than a decade of historic technical data available. This last point is pertinent as the data could potentially be used to support the training of any machine learning algorithms the company might want to invest in. The building materials company also mentioned its LH Maqer subsidiary. This startup incubator was launched at the end of 2018.
LafargeHolcim appears to be playing catch up here with Cemex, which has steadily been promoting its own Industry 4.0 developments in recent years. Emphasis on ‘promotion’ here as only yesterday, the day LafargeHolcim made its big reveal, Cemex happened to release information about a recent roundtable in France that it participated in on digitisation and productivity in the construction sector.
Notably in March 2019, the Mexican multinational struck a deal with Petuum to implement its Industrial AI Autopilot software products for autonomous cement plant operations at its plants around the world in March 2019. Readers can find out more about Petuum’s work with Cemex in the June 2019 issue of Global Cement Magazine. In late 2017 Cemex too set up a division, Cemex Ventures, to engage with startups, universities and other organisations. Cemex has also been building its digital customer integration platform Cemex Go since around the same time.
One interpretation of Industry 4.0 is as a German-industrial approach to the so-called fourth or digital revolution pushed by Anglophone software companies. The idea of taking as much data from a production process, such as making cement, is enticing but the prospect of actually doing something useful with this tsunami of information is daunting. Typically algorithm techniques or predictive maintenance seem so far to focus on discrete parts of a process such as a finish grinding mill or final product logistics networks. Companies like Germany’s Inform focus on the latter for example and, incidentally, it celebrated its 50th anniversary this week.
If automated systems start making apparently nonsensical yet useful decisions across the whole raw materials, production and supply chains, then Industry 4.0 will reach its full potential. This moment, if it comes, will be analogous to the time IBM’s computer Deep Blue managed to beat chess grandmaster Garry Kasparov in the late 1990s. What’s more likely are automated systems that can perform consistently outside the human operator comfort zone edging up against hard physical process constraints.
Meanwhile, what will be interesting to watch here is whether LafargeHolcim will be able to leverage any advantage over Cemex by having more cement plants to pull data from. Before LafargeHolcim started selling off its south-east Asian subsidiaries it had more than three times as many cement plants as Cemex. If data really is more valuable than oil these days then starting late in the industrial digital arms race may not be as deleterious as one might first think.
Switzerland: LafargeHolcim has launched a four-year industrial automation plan called ‘Plants of Tomorrow.’ It includes Industry 4.0 concepts such as automation technologies and robotics, artificial intelligence, predictive maintenance and digital twin technologies for its entire production process. The plan is expected to show 15 – 20% operational efficiency gains. It also claims that the initiative is, “one of the largest roll-outs of Industry 4.0 technologies in the building materials industry.”
“Transforming the way we produce cement is one of the focus areas of our digitalisation strategy and the ‘Plants of Tomorrow’ initiative will turn Industry 4.0 into reality at our plants. These innovative solutions make cement production safer, more efficient and environmentally fit,” said Solomon Baumgartner Aviles, Global Head Cement Manufacturing.
The building materials company is presently working on more than 30 pilot projects covering all regions where the company is active. The company’s integrated cement plant at Siggenthal in Switzerland will be a trial site where the integration of all relevant modules will be tested.
One examples of where LafargeHolcim has started the plan include a partnership with Swiss start-up Flyability to use drones to increase the frequency of inspections at plants while simultaneously reducing cost and increasing safety for employees by inspecting confined spaces. The concept is being rolled out to several markets, including Switzerland, France, Germany, the UK, the US, Canada, India and Russia. It is also using a subsidiary, Maqer, to identify technology startups with promising technology. It aims to harness the potential of this through new partnership models with both manufacturing and software companies.
LafargeHolcim has already launched technology to track performance centrally and allocated resources to support the plant network in real time. More than 80% of LafargeHolcim’s cement plants are already connected to its Technical Information System that provides data transparency at plant, country, regional and global level. Some country operations have more than a decade of historic technical data available. Other systems allow the remote control of certain parts of the operations through online condition monitoring systems. Since its implementation in 2006, this system has saved over Euro70m and an additional 3Mt of cement sold through fewer breakdowns.
Germany/Switzerland: LafargeHolcim has reportedly placed a bid for BASF Construction Chemicals, according to sources quoted by Bloomberg. The cement producer has reached the second round of the bidding processing, along with companies including Bain Capital, Cinven and Standard Industries. The auction of the subsidiary of BASF that produces admixtures, mortars and grouts is expected to reach as much as Euro3bn. LafargeHolcim chief executive officer (CEO Jan Jenisch said in May 2019 that the company is considering at least 10 bolt-on assets purchases for 2019.