September 2024
Cementir Holding buys Compagnie des Ciments Belges 25 July 2016
Belgium: HeidelbergCement, through its subsidiary Ciments Français, has agreed to sell its operations in Belgium, primarily consisting of Italcementi’s Belgian subsidiary Compagnie des Ciments Belges (CCB), to Aalborg Portland Holding, a subsidiary indirectly 100% controlled by Cementir Holding. The transaction has been valued at Euro312m on a cash and debt-free basis. The transaction is expected to close in the second half of 2016.
“With the disposal of the Belgium assets we fulfil the obligation of the European Commission and improve the net financial position of HeidelbergCement after the acquisition of the 45% share in Italcementi,” said Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “We are well on track to reach our target of at least Euro1bn of proceeds from disposals.”
The divestment of operations in Belgium was offered to the European Commission in order to address competition concerns caused by the group’s acquisition of Italcementi. The sale to Cementir Holding is subject to the approval of the European Commission.
Siam City Cement buys Holcim Lanka 25 July 2016
Sri Lanka: LafargeHolcim has signed an agreement with Siam City Cement to sell Holcim Lanka for US$400m. Holcim Lanka operates one integrated plant and one grinding plant in the country. The transaction is expected to close in the third quarter of 2016.
The proceeds from the sale of Holcim Lanka will be used by Lafarge Holcim to further reduce debt. The Sri Lanka sale follows the divestment of Lafarge India to Nirma that was announced in mid-July 2016. The group says it has now secured three-quarters of its targets to reduce its debt by Euro3.2bn in 2016.
US: The Oregon Department of Environmental Quality (DEQ) is working with Lehigh Cement to investigate a potential source of hexavalent chromium (chromium six) emissions from a cement terminal in Portland. The environmental agency suspects that cement dust may be a contributing source of chromium six that it has monitored since March 2016 in southeast Portland. The DEQ is working with the cement company to improve its dust-capturing efforts when unloading cement from railcars.
“We're concerned about the persistence of elevated levels of chromium,” said Pete Shepherd, interim DEQ director. “We are making every effort to bring those levels down.” The DEQ has also required a nearby glass manufacturer to clean its exhaust stacks to tackle the problem.
Turkey: General contractor Bilim Makina has commissioned Beumer to supply and mount equipment at a cement plant project in Elazig. The order includes 13 bucket elevators for the transport of cement, clinker and raw meal, six apron conveyors and 13 silo discharge systems for clinker transport. The greenfield plant is expected to achieve a capacity of 5000t/day. Sycs İnşaar Çimento Madencilik is the user of this plant.
Two high-capacity belt bucket elevators with a centre distance of 133m each are included in the scope of supply. They are used for feeding the preheater tower with raw meal. Owing to the size of this plant, a conveying capacity of 500t/hr is achieved using steel wire belts.
The supply of the comprehensive technology has been completed. Beumer is now installing the plant.
HeidelbergCement releases Sustainability Report 2015 21 July 2016
Germany: HeidelbergCement has released its seventh Sustainability Report so far. Highlights from the report include a reduction of specific net CO2 emissions by 22% to 606kg/t of cement (compared to 1990 levels) and a decreased clinker factor of 75%. However, specific emissions for NOx, SO2 and mercury all rose slightly from 2014.
“The numbers show what kind of progress HeidelbergCement made in 2015,” said Bernd Scheifele, CEO of HeidelbergCement. “We have also substantially intensified our commitment to the development of technologies to use CO2 as a resource, and we have entered into very promising cooperative research projects. This puts us at the forefront of the movement in the cement industry.”
The 2015 report is also the first to present data on water management, following the implementation of industry indicators for water reporting at all cement plants in 2013 and 2014.
Ukraine: Cement production has increased by 10.5% year-on-year, to 3.19Mt/yr according to Roman Skilsky, CEO of the Ukrcement cement producers' association. Skilsky expects for the country’s annual cement production to grow by 10% to over 9Mt in 2016 in comments made to Interfax-Ukraine.
Exports of cement grew by 71% to 62,700t in January to March 2016. However, Skilsky attributed the rise to the introduction of various restrictions by key exports markets including Moldova and Belarus. Skilsky also said that the introduction of European standards for cement production in Ukraine could help to restrict counterfeit products on the market.
Dyckerhoff Cement Ukraine, HeidelbergCement Ukraine, Ivano-Frankivskcement, Eurocement-Ukraine, Podilsky Cement, Mykolaivcement and Cement LLC (part of CRH Group) are all members of Ukrcement.
India: ACC has started commercial production at its 2.79Mt/yr integrated cement plant at Jamul, Chhattisgarh. The subsidiary of LafargeHolcim also has two new cement grinding plants, one at Jamul and one at Sindri in Jharkhand. These are expected to be commissioned by the end of September 2016. The projects are planned to strengthen the cement producer’s consumer base in east India.
India: LafargeHolcim has received the approval of the Cabinet Committee on Economic Affairs to simplify its corporate structure. The transaction has already been approved by all other stakeholders, including independent directors, minority shareholders, the Securities and Exchange Board of India, stock exchanges and respective High Courts in India. LafargeHolcim is now awaiting formal communication from the Foreign Investment Promotion Board in order to close the transaction.
Through intragroup restructuring, LafargeHolcim will increase its shareholding in Ambuja to 61.14%. Ambuja, in turn, will acquire LafargeHolcim’s 50.05% stake in ACC Limited.
The transaction will be effected through a merger of Holcim India Private Ltd. (HIPL), a wholly owned financial holding subsidiary, with Ambuja. In a two-stage deal, Ambuja will first acquire, through a purchase, a 24% stake in HIPL for a cash consideration of US$521m, followed by a stock merger between HIPL and Ambuja. As part of the merger, LafargeHolcim will receive 584 million new equity shares of Ambuja resulting in an increase of its ownership in Ambuja from the current 50.28% to 61.14%.
The Great Wall of Donald Trump 20 July 2016
Back in the May 2016 issue of Global Cement Magazine we asked key people at the Portland Cement Association how they thought the US presidential election might affect the local cement industry. Wisely, for an advocacy organisation with offices in Washington DC, no one would be drawn, citing a lack of information. At that point it was still unclear who was going to be on the final ticket. However, we all missed a trick because one candidate, Donald Trump, had been talking about building ‘a border fence like you have never seen before’ since at least mid-2014. And that fence could potentially require a lot of cement.
Researchers at market analysts Bernstein’s sent a note to clients last week ahead of the Republican National Convention looking at the implications of if Donald Trump became president of the US and actually set out to build his 40ft high concrete wall between the US and Mexico. The result would be a 2.4Mt boost in demand for cement from cement producers near to the border. In terms of market demand Bernstein concluded that this would add over 1% to cement demand in both 2018 and 2019, a healthy ‘shot in the arm’ to the already pepped-up US cement industry, which is currently growing at around 5%/yr.
Map 1: Map of cement and ready-mix concrete plants near to the US - Mexico border. Source: Bernstein Materials Blast. Note – Bernstein does not show the Capitol Cement plant in San Antonio.
Needless to say, Bernstein’s calculations pile-drive assumptions into assumptions, atop of Trump’s political rhetoric. It bases its calculations on a border wall similar to the Israeli West Bank barrier built out of precast concrete panels. It also tries to model how much concrete and cement would be required depending on the differing height’s Trump has trumpeted at his rallies.
The kicker to this tongue-in-cheek analysis is that the construction company that stands to benefit the most from this infrastructure project is Mexican!
Cemex has significantly more cement plants and ready-mix concrete plants than any other company within a 200-mile zone either side of the border. Looking at integrated cement plants alone, it has six plants in the regions near to the proposed wall from the east and west coasts. Its nearest competitors, CalPortland with four plants and Grupo Cementos de Chihuahua with three plants, are more regionally based in the western US and Chihuahua state in Mexico. Clearly Cemex didn’t rate the chances of Donald Trump’s wall actually happening when it agreed to sell its Odessa cement plant to Grupo Cementos de Chihuahua in May 2016.
All of this goes to show that, wherever you stand on the Donald Trump presidency bid, if you manufacture cement near the US-Mexican border you might be working overtime if he (a) actually becomes president, (b) actually manages to start building his wall and (c) actually decides to make it using cement. Yet before anybody starts popping champagne corks consider this: there might also be unintended consequences for the cement sector. Restricting current legal and illegal migration trends from Mexico to the US might have a greater negative effect on the US cement industry, and the overall economy, than ordering one large infrastructure project. Working that one out is harder than a guesstimate of how much cement a border wall might consume. Probably best not to ask at this stage who might actually pay for the Great Wall of Donald Trump.
UK: Hope Cement will use polyethylene (PE) packaging with the Roto-Packer Adams 10 from Haver & Boecker at its Dagenham terminal near London. The site started starting using the Adams system and a palletiser made by Newtec in June 2016, with an operation speed of 1200 bags/hr.
“We want the best benefits and services for our customers. PE packaging here plays an important role. Retailers and wholesalers can increase their stock levels and construction companies can leave their bags outside in the open without worry, no matter what the weather is,” said Gary Brennand, commercial director at Hope Cement. Brennand also cited safety and bag cleanliness as benefits of the new packaging.