September 2024
Cemex refinances US$347m loan 08 December 2023
Mexico: Cemex has increased its borrowing under a credit agreement with Banorte by 15% to US$347m, and extended its maturity to 2028 from 2026 previously.
Cemex told investors "The credit agreement, denominated in Mexican pesos, will have an interest rate margin dependent on the leverage ratio slightly lower than that applicable prior to the refinancing, and financial obligations consistent with an investment grade capital structure."
Earth Uprising targets Lafarge France sites 08 December 2023
France: Climate protest group Earth Uprising says that it will target sites belonging to Holcim subsidiary Lafarge France for demonstrations as part of planned actions between 9 and 12 December 2023. Ouest France News has reported that the demonstrations will include a ‘festive but determined’ gathering at Lafarge France’s Saint-Barthélemy-d'Anjou concrete plant in Maine-et-Loire on 10 December 2023.
Lafarge France said “The people who intend to respond to this call for mobilisation against our sites have the wrong target. Of all industrial sectors, ours is moving the fastest and strongest in favour of the climate.” It added “Moreover, we are useful to society. The country's needs for housing, public facilities and infrastructure are immense, and concrete represents the best solution to meet them.”
GCC to expand Odessa cement plant 07 December 2023
US: Mexico-based GCC has hired ThyssenKrupp Polysius North America to build a 3000t/day clinker production line at its Odessa plant in Texas. When commissioned in late 2025, the line is expected to more than double the plant’s clinker capacity to 2Mt/yr across three kilns. The supplier says the project will also lower the plant’s annual CO2 emissions by 13%.
GCC chief executive officer Enrique Escalante said "We remain strongly committed to delivering strong stakeholder value, while investing in the future growth of our business. With the expansion of the Odessa plant, we will ensure GCC is prepared for a new phase of the industry cycle."
Adani Cement to use 60% renewable energy by 2028 07 December 2023
India: Adani Group says that it will power 60% of its cement production using renewable energy by 2028. In a post on X, the group noted that its Adani Cement business uses fly ash or slag in cement production at 90% of its plants.
UAE/UK: The Global Cement and Concrete Association (GCCA) has welcomed the launch of the Canada/UAE co-led Cement Breakthrough Initiative at the COP28 climate conference in Dubai on 6 December 2023. Prior to the launch of the initiative, the GCCA hosted a roundtable for representatives of the cement industry and governments.
GCCA chief executive officer Thomas Guillot said "We support and welcome the launch of the Cement Breakthrough Initiative. Cement and concrete are essential for so much of our modern world and will also be needed for meeting the challenges ahead. They will play a key role in providing resilient and sustainable infrastructure and safely housing communities around our planet. Our member companies are fully committed to a net zero future – and it will take the combined efforts of industry and government to deliver on this commitment. This is the decade to deliver, and we are delighted to work with the Cement Breakthrough Initiative and the government of Canada to accelerate the transition."
Belarus: The US government sanctioned the management company of Belarusian Cement Company on 6 December 2023. PrimePress News has reported that 10 other Belarus-based companies and eight individuals were also added to the US sanctions list. This is the latest group of additions since the US and its allies began sanctioning Belarusian entities in connection to election rigging, human rights abuses and complicity in the on-going Russian invasion of Ukraine.
US: Germany-based drives supplier Flender has received the Supplier Excellence Recognition Award 2023 from engineering firm Caterpillar. The award recognises suppliers that demonstrate a commitment to excellence and drive a zero-defect culture. Caterpillar said that Flender exceeded 95% delivery reliability, with zero defects, during 2023. Contracts included gearboxes, remanufactured gearboxes, spare parts and couplings for Caterpillar’s 7495 Rope Shovel. The 7495 Rope Shovel is used in quarrying, including in the cement industry.
Caterpillar’s senior vice president strategic procurement and planning Pam Heminger said “Caterpillar’s reputation for world-class products and services stands on the shoulders of our global and diverse team – and that team includes our international and diverse supply network. By working together, we can deliver on our purpose to help our customers build a better, more sustainable world.”
Update on cement at COP28 06 December 2023
The Global Cement & Concrete Association (GCCA) has been cheerleading at the 2023 United Nations Climate Change Conference (COP28) in Dubai this week with the release of a progress report on the sector’s work towards reaching net zero by 2050. The headline figures are that net CO2 emissions per tonne of cementitious material fell by 23% in 2021 compared to 1990 based on Getting the Numbers Right (GNR) data. Energy efficiency improved by 19% and the fossil fuel component used by the cement sector has fallen to 80% from 98% in 1990. The GCCA has described 2020 - 2030 as the “decade to make it happen” and has set some targets to back this up. Its members intend to reduce CO2 emissions per tonne of cement by 20% by 2030 compared to 2020 levels and concrete CO2 emissions per m3 by 25% over the same time-frame.
The new developments for the cement sector at COP28 so far have been the launch of separate but apparently similar initiatives to help decarbonisation through coordination between nations. The Cement Breakthrough Agenda, backed by the government of Canada and other partners, follows the creation of the Breakthrough Agenda at the 2021 United Nations Climate Change Conference (COP26) whereby designated governments lead so-called ‘Priority Actions’ to decarbonise various sectors. The idea is to collaborate on measures such as policies, regulations and technologies to help reduce the cost of future investment in decarbonisation. The priority actions will be developed in 2023, worked towards in 2024 and then revised on a regular basis thereafter. The German Chancellor Olaf Scholz also launched the so-called ‘Climate Club’ on 1 December 2023 to help developing nations invest in technologies to decarbonise sectors such as cement and steel production. The intention is to set up the technical groundwork for a standardised calculation of CO2 intensity in selected products, such as cement and steel, set definitions on what net zero is for these sectors and then set up a platform to connect countries with funding and technical support from governments and the private sector. Neither the Cement Breakthrough Agenda nor the Climate Club has mentioned funding though.
Additionally, Holcim announced that it had become a founding member of the Sustainable Markets Initiative’s SMI Circularity Task Force. The group aims to promote the circular economy to the private and public sector. Holcim was keen to point out that it is already recycling nearly 7Mt/yr of construction and demolition waste, with a target of 10Mt/yr pencilled in by 2025.
Other groups are not as upbeat as the GCCA though. The Global Carbon Project, for example, has estimated in its annual Global Carbon Budget that global fossil CO2 emissions are set to rise by 1.4% year-on-year to 36.8Bnt in 2023. This figure includes both the CO2 released by cement production and the CO2 uptake from cement carbonation. Ongoing research by Robbie Andrew, a greenhouse gas emissions scientist at the CICERO Center for Climate Research in Norway and the Global Carbon Project, found that process emissions by the cement sector fell for the first time since 2015 in 2022, to reach 1.61Bnt. This decrease was most likely due to China’s falling cement production in 2022, stemming from a downturn in the local real estate sector. However, both the data from GCCA and the Global Carbon Project may be right simultaneously as they look at the emissions of the cement sector in different ways.
The GCCA’s job is to advocate for the cement and concrete sector and it is presenting itself well at COP28. Since its formation, it has set up roadmaps, encouraged collaboration and innovation, and is now reporting back on its progress. Net zero remains the goal by 2050, but the GCCA is being upfront about the role carbon capture, utilisation and storage (CCUS) is expected to play after 2030 and the lack of any full-scale CCUS units so far. Yet it is tracking what has happened so far through the Green Cement Technology Tracker in conjunction with Leadership Group for Industry Transition (LeadIT).
As for the rest of COP28, various reports have been aired in the international press about whether the conference will call for a formal phase out of fossil fuels in some form or another. Whether it actually happens is another matter entirely, especially considering that the president of COP28 is the chief executive officer of the Abu Dhabi National Oil Company, and any eventual language would likely be vague. Yet the work by the GGCA and others has started to make the unthinkable a little more thinkable.
Massimo Toso elected as chair of Portland Cement Association 06 December 2023
US: The Portland Cement Association (PCA) has elected Massimo Toso as its next chair. He is the current president and chief executive officer (CEO) of Buzzi Unicem USA and has worked as the vice chair of the association. He succeeds Filiberto Ruiz, president and CEO of Votorantim Cimentos North America, in the post.
Monica Manolas has been elected as vice chair. She is the first woman in the 21st century to be elected to the position and she currently works as the president of Ash Grove East. Jorge Wagner, CEO of Votorantim Cimentos North America, was also elected to the PCA Board of Directors.
Puneet Yadu Dalmia appointed as head of Dalmia Cement (Bharat) 06 December 2023
India: Dalmia Cement (Bharat) has appointed Puneet Yadu Dalmia as its managing director and chief executive officer (CEO) for a five-year term with effect from 8 December 2023. He succeeds Mahendra Singhi, who will become the strategic advisor to the managing director and CEO.
Puneet Dalmia has been the managing director of parent company Dalmia Bharat since 2004. Prior to this he co-founded JobsAhead.com in 1999, which was sold to Monster.com in 2004. He is also the chair of the Development Council for Cement Industry (DCCI) set up by the Government of India in 2021. He holds a Master of Business Administration (MBA) from the Indian Institute Of Management in Bangalore and an undergraduate degree from the Indian Institute of Technology Delhi.