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US: The Environmental Protection Agency (EPA) has awarded CalPortland’s Rillito cement plant in Arizona with its ninth consecutive Energy Star. Efforts towards energy intensity reduction at the plant included: replacing two preheater tower cyclones, installing 11km of new belting to a quarry belt conveyor, replacing the kiln baghouse fan and dust collector bags, increasing the plant’s focus on energy efficiency by expanding its energy team, conducting more frequent energy meetings and communicating energy efficiency best practices throughout the plant.
President and chief executive officer (CEO) Allen Hamblen said “CalPortland is pleased to accept the EPA’s Energy Star 2020 certification in recognition of our energy efficiency efforts at the Rillito plant. We continue to demonstrate our commitment to environmental stewardship and Energy Star while also reducing our energy costs through the hard work of our employees and our corporate energy management culture.”
Ukraine court upholds anti-dumping duties on cement from Russia, Belarus and Moldova 14 January 2021
Ukraine: The District Administrative Court of Kiev has dismissed Belarusian Cement Company (BCC)’s claim against the government’s Interdepartmental Commission on International Trade for the cancellation of anti-dumping duties on cement. The duties on imported cement are 57% the value of goods from Belarus, 94% from Moldova and 115% from Russia. The commission introduced the tariffs in late May 2019 and they will expire in late May 2024.
The law firm representing third parties Dyckerhoff Cement Ukraine, HeidelbergCement Ukraine, Ivano-Frankivsk Ukraine and CRH subsidiary Podilsky Cement said "The court recognised the need to protect the violated rights of national cement producers in Ukraine from dumped imports of goods to Ukraine.” It added that the imports had caused ‘significant damage’ to national producers.
Cemex Mexico to undertake road repairs in Puebla State 14 January 2021
Mexico: Cemex Mexico has signed an agreement with the state government of Puebla for the repair of 5km of road near Tepeaca. The El Sol de Mexico newspaper has reported that under the agreement Cemex will supply hydraulic concrete for the works. The company plans to first repair a 3km stretch of the road, then complete the remaining 2km in 2022.
President Juan Romero said “The purpose of Cemex is to build a better future. That is the reason that drives us to get up every day. We started at home, by building it for the more than 12,000 employees who work in the company and we made sure that everyone found in Cemex the best place to work and develop personally and professionally; but we also do it for our clients, with products of the highest quality and giving the greatest focus and attention to all the projects in which we participate, from the smallest expansion or remodeling of a small rural house to the large infrastructure works that they are underway in the country.”
In 2019 and 2020 the company invested US$3.5m in social projects in Puebla State. It repaired 4.5km of roads and donated 160t of concrete.
Yorkshire Water tests new concrete surface technology in the UK 14 January 2021
UK: Yorkshire Water is trialling a new concrete surface applicant designed to prolong the lifespan of concrete. It says that the alumina and zirconia silicate ceramic surface treatment protects concrete from wet/dry and freeze/thaw cycles, peeling, flaking, chalking and delaminating. This reduces the need for replacement of concrete structures, reducing CO2 intensity by 43% compared to bare concrete, according to the company. Advanced materials producer Haydale supplied the product.
Senior project manager Jonathan LeMoine said “In early 2021 we will be using one of our capital partners to apply the material to a number of our chemical bunds. The results will be immediately apparent and will pave the way for a larger programme of works protecting our assets.” He added “We often invest in trialling new technologies and techniques to pave the way for lower emissions in our capital expenditure (CAPEX) and operating expenditure (OPEX) solutions. We’re excited to see the results from this trial, and hope that it will provide a low carbon alternative to demolishing and rebuilding.”
LafargeHolcim heads to the roof
Written by David Perilli, Global Cement
13 January 2021
LafargeHolcim took what appeared to be a surprising decision this week when it announced it was buying roofing and building envelope producer Firestone Building Products (FSBP). The deal raises eyebrows because it seems to be a departure from the building material producer’s previous dedication to its three major pillars: cement, aggregates and ready-mixed concrete. Yet, it follows the logic of sticking to safer markets both geographically and in terms of sustainability.
First some background. Originally, Global Cement was following the auction for FSBP via its sister publication Global Insulation. Reporting from Bloomberg in December 2020 focused on more obvious bidders such as Ireland-based insulation producer Kingspan and roofing products producer Standard Industries. However, Kingspan has been struggling publicly with fallout from the Grenfell Tower fire inquiry in the UK. Despite not formally supplying any of its products for the tower block in London, it has become embroiled in the allegations of a general culture of cheating safety tests for foam board-based insulation products. At the almost the same time that it dropped out of the FSBP bidding, its chief executive officer (CEO) Gene Murtagh apologised for ‘process shortcomings’ that had been highlighted by the ongoing inquiry. Make of this what you will. No word on why Standard Industries left proceedings but it also seems to part of a consortium trying to take over US-based chemical producer WR Grace. All of this is relevant because, from publicly-available sources, LafargeHolcim appeared to emerge out of nowhere to snaffle up FSBP. However, it seems ludicrous that a company with a revenue of around Euro25bn in 2019 could simply pull something like Euro2.8bn out of its pocket at the last minute. It’s likely it was quietly in the bidding process the whole time.
Back in the early 2010s Lafarge was busy selling off its major ‘non-core’ assets like its gypsum business in the wake of picking up debts from acquisitions like cement-producer Orascom in the Middle East. This then turned into a string of divestments following the merger with Holcim to try and shore up the business along with a general pivot towards concrete as the key end-product as sustainability concerns gathered pace. Producing cement remains a major part of LafargeHolcim’s business but a focus on the whole lifecycle of concrete is vital as a hedge against the high process emissions associated with making clinker. Cement factories run the risk of becoming so-called stranded assets depending on future government regulations.
In its acquisition statement LafargeHolcim played up the sustainability credentials of buying FSBP. It noted that up to 60% of buildings’ energy is lost through roofs and that FSBP’s products help to reduce this. Then it made the link that FSBP’s technologies and products complement LafargeHolcim’s sustainable building solutions like its ECOPact green concrete and its EcoLabel sustainable product range. Later, when LafargeHolcim CEO Jan Jenisch spoke to US broadcaster CNBC he described the move as a ‘perfect fit’ for his company’s goal, “to be the most sustainable and most innovative building materials supplier in the future.” The geographical point of the acquisition hasn’t been dwelt on as much as sustainability but no doubt buying a business based in the US with revenue of US$1.8bn is seen as being far safer than buying, say, a similar concern in East Asia.
Investing in a business that sells products that reduce energy loss in the building envelope follows the trend of the moving sustainability-related risk along the supply chain from cement to concrete and beyond. Ultimately consumers will have to pick up the true carbon price of their buildings, but if building materials producers buy more of the envelope they can spread this cost more thinly and hopefully build up the market in the process. One can also imagine it fitting with the mindset of CEO Jan Jenisch, the former boss of Sika, a company that sells speciality chemicals across a wide range of markets. The real test here is whether LafargeHolcim will buy more companies in the wider building materials sector or if other heavy building materials producers will copy them. If so then the days of heavy building material producers sticking to the three pillars of cement, aggregates and concrete may be numbered.