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19 June 2024
Saudi Arabia: Qassim Cement Company (QCC) has successfully completed the acquisition of Hail Cement Company (HCC) for US$378m. The transaction, initially announced on 25 September 2022, involved increasing QCC's capital to facilitate the acquisition of all HCC shares. The acquisition follows a binding implementation agreement reported by HCC on the Saudi Exchange.
Kazakhstan: Steppe Cement saw a notable decrease in net profit to US$4.5m in 2023, down from US$17.9m in 2022. The company also reported a decrease in revenue to US$81.8m from US$86.7m in 2022, largely due to competitive pressures and logistical challenges, that affected exports. Despite these hurdles, domestic sales grew by 4%, though exports nearly ceased, reflecting the new capacities in neighbouring Uzbekistan which have driven down prices and diminished profits from exports.
The country's cement market contracted slightly to 11.5Mt in 2023, with per capita consumption settling at 575kg. The local cement industry has balanced demand and production, but seasonal fluctuations continue to affect the market, particularly in northern regions. Production costs increased by US$8m and the company has responded by increasing capacity by 0.1Mt with a US$3.1m capital expenditure aimed to enhance efficiency at its facilities. Looking ahead to 2024, an additional US$2.4m is earmarked for further improvements.
Spain: Heidelberg Materials, the owner of Cementos Rezola, has announced a restructuring plan that will affect 56 employees, roughly half of the workforce at the Añorga plant in Donostia. This decision comes as part of an employment regulation filing (ERE) linked to the cessation of clinker production in a move towards decarbonising cement manufacturing.
The company has proposed 15 early retirements, 30 internal relocations (to other plants within the group) and 11 external relocations. Unions have clarified that of the internal transfers, 15 positions are offered at the Arrigorriaga plant in Bizkaia. Management stated that those not interested in relocation options within the group will be offered external relocation solutions and can avail of measures the company will implement to assist in finding new employment in the labour market.
The company said “The ERE targets positions that are no longer required as a result of the cessation of clinker production, necessary to meet decarbonisation obligations.”
Despite the significant impact of the ERE, the company highlighted that this represents a proportion ‘substantially lower than the decrease in activity volume’ at the Añorga plant. It also confirmed plans to continue cement production in Añorga using clinker produced at the ‘more efficient plant in Arrigorriaga’.
This transition will support a €32m investment from 2024 to 2026 aimed at decarbonising both plants. Half of this investment will be allocated to the Añorga plant to transform it into a facility specialising in ‘sustainable’ cement.
Rohrdorf cement plant installs rooftop solar panels 19 June 2024
Germany: Rohrdorfer has started operation of a new photovoltaic (PV) unit at its Rohrdorf cement plant near Rosenheim in Upper Bavaria. The rooftop PV installation comprises 1000 modules, covers around 2000m2 and has a peak output of 400kW. The construction time of the solar panels took five weeks. Modules supplied by Hecker Solar were installed by Elektro Ecker.
The cement plant has produced around one third of its electricity requirements via a waste heat recovery unit since 2011. Rohrdorf Group aims to generate 30% of its electricity from renewable sources as a whole by 2033.
Afghanistan: The Ministry of Mines and Petroleum has awarded three new contracts for the construction of cement plants in Herat, Kandahar and Parwan. Xinhua News Agency has reported the total value of the contracts as US$500m.
The government aims to achieve national self-sufficiency in cement production by rebuilding destroyed cement plants and building new ones. Plans are in motion to grant further contracts for the construction of cement plants in Jawzjan, Logar and Samangan.
South Korea: Korea Cement has plans to conduct a capital increase of US$36.3m. The producer said that it will use the funds to invest in its operations.
SCG launches reduced-CO2 cement in Vietnam 19 June 2024
Vietnam: Siam Cement Group (SCG) has announced the launch of a new 20% reduced CO2 cement in Vietnam. Việt Nam News has reported that SCG achieved the reduction through technical upgrades to its cement production, alternative fuels co-processing and waste heat recovery. The producer said the move is a response to growing demand for lower-carbon alternatives in the country’s cement market.
Deputy country director for Vietnam Tanakorn Theeramankong said "For the first time, SCG has introduced a new low carbon cement to the Vietnamese market, marking a significant step forward in our journey to achieve net-zero emissions. By pursuing advanced technologies to develop low carbon cement, we not only reduce our environmental impact but also set a new standard for Vietnam’s construction industry."
Indian government to build 4m/yr new rural homes 19 June 2024
India: The newly re-elected Indian government has approved the construction of 20m new rural homes up to the end of the 2030 financial year on 31 March 2030. This will entail the construction of new units at a rate of 4m/yr. The Business Standard newspaper has reported that the government raised rural homebuilding subsidies by 67% to US$2400/home, and by 69% to US$2640 in hill country. It said that this is necessary due to a rise in the price of building materials.
Worker dies at UltraTech Cement’s Manawar plant 19 June 2024
India: A worker has died after being caught in a belt at Ultratech Cement’s Manawar cement plant in Madhya Pradesh’s Dhar District on the morning of 17 June 2023. Local press reported that 30-year-old Tikam Singh succumbed to his injuries after becoming trapped in the equipment. The police have launched an investigation into the incident.