September 2024
US: Eagle Materials reported sales of US$2.1bn in 2022, up by 15% year-on-year from 2021 levels. The producer's earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 19% to US$782m. Its cement sales rose by 7% to US$1.1bn due to increased prices, despite a drop in volumes. Throughout the year, the company increased its production of Portland limestone cement (PLC).
President and CEO Michael Haack said "Looking ahead, we anticipate continued attractive fundamentals in our markets, despite headwinds relating to higher interest rates and affordability constraints in single-family residential construction. Among the favourable demand factors we expect will affect our results in future periods are projected funding increases for infrastructure projects and healthy demand for heavy industrial projects and multi-family residential construction. We remain well-positioned to capitalise on these conditions, given our geographical footprint across the (Central) US Heartland and fast-growing Sun Belt (Southern US) and our financial strength and flexibility."
Ramco Cements' sales rise in 2023 financial year 19 May 2023
India: Ramco Cements' sales were US$987m during the 2023 financial year, up by 36% year-on-year from US$726m during the 2022 financial year. The producer sold 15Mt of cement and dry mortar products, up by 36%. The Times of India newspaper has reported that the producer's profit after tax declined by 62% to US$41.5m from US$108m.
The producer expects that anticipated infrastructure investments and a 'normal' monsoon will maintain strong cement demand in India in the full-year 2023 financial year. It forecast growth in its profit margins from the second quarter of the 2024 financial year (July - September 2023) onward.
Global Cement and Concrete Association prepares shortlist for Innovandi Open Challenge 2023 19 May 2023
World: The Global Cement and Concrete Association (GCCA) has received over 70 submissions to its Innovandi Open Challenge 2023, and is now preparing the shortlist of startups to present their pitches on 30 June 2023. The Innovandi Open Challenge seeks new disruptive technologies to help to achieve net zero cement and concrete production by 2050. Startups selected under the challenge will have the opportunity to partner with the GCCA and its members to further develop their products.
GCCA cement director and innovation lead Claude Loréa said “To receive more than 70 quality applications from start-ups for this year’s Innovandi Open Challenge is hugely encouraging, and shows what level of interest and work is being done to help drive climate action, with applications received from every region of the world." She concluded "Our vital industry needs products which are affordable, scalable and easily adopted. We look forward to sifting through the applications with our member companies and working with those who are selected.”
Unacem increases first-quarter sales in 2023 19 May 2023
Peru: Unacem recorded consolidated sales of US$380m during the first quarter of 2023, corresponding to year-on-year growth of 2.6%. Despite this, the producer's earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 7.4% to US$105m. Unacem attributed its sales growth to 'strong' cement sales volumes in the US, as well as increased prices across its markets. The domestic Peruvian market contributed US$247m (65%) of Unacem's sales, up by 0.5% year-on-year. Peruvian cement volumes fell by 8%, while high fuel costs there contributed to a local decline in earnings.
Looking ahead to the full 2023 financial year, Unacem CEO Pedro Lerner expects the group's consolidated sales to rise year-on-year. He forecast a 10% drop in Peruvian cement volumes to 6Mt. Lerner said that the company is 'monitoring events' in neighbouring Ecuador, but considers it inevitable that on-going political disturbances will 'affect economic conditions' in the market.
Century Textiles & Industries to raise US$48.3m 19 May 2023
India: Century Textiles & Industries plans to raise US$48.3m by issue of non-convertible debentures (NCDs) on a private placement basis. Accord Fintech News has reported that the NCDs will be listed, rated, unsecured and redeemable.
UK: Breedon Group has acquired concrete block producer Broome Bros., construction firm Minster Surfacing and concrete block and aggregates producer Robinson Quarry Masters. Breedon Group said that the businesses will strengthen its presence around Doncaster in South Yorkshire, in Antrim, Northern Ireland, and 'from the Midlands to London.'
CEO Rob Wood said “Many of our transactions come to us through our local knowledge and personal engagement with the owners. As a result, our active mergers and acquisitions pipeline has continued to yield high quality, earnings-enhancing opportunities that will enable us to progress our sustainable growth strategy." He added "Each of these independent family-run businesses is aligned with our vertically-integrated operating model, providing further opportunity to pull through upstream building materials while extending our downstream footprint to deliver profitable growth.”
Business Live News has reported that the group has also completed its transition to the London Stock Exchange from the AIM exchange. Breedon Group said that this will enhance its corporate profile by helping to attract greater international investment.
Iraq: Najmat Al Samawa Company for Cement Manufacturing (NASCCM) plans to build a new 1.82Mt/yr clinker line at its Samawa cement plant. When commissioned, the new line will more than double the plant's clinker capacity to 3Mt/yr. Pakistan Company News has reported that the expanded plant will secure a supply of clinker for the producer's Basra grinding plant.
NASCCM is a joint venture of Al Shumookh Group and Pakistan-based Lucky Cement.
UK: Aggregate Industries, Breedon, Lhoist and Tarmac have announced the launch of the Peak Cluster, a carbon capture and storage cluster of cement and lime plants. The partners aim to eliminate 3Mt/yr of emissions from operations across their plants in Cheshire, Derbyshire and Staffordshire by capturing 100% of their CO2 emissions. Progressive Energy will oversee the capture and transportation of CO2 from the plants for storage below the Irish Sea. Possible storage partners for the cluster are Liverpool Bay CCS or the upcoming Morecambe Net Zero storage project. When operational, the Peak Cluster will eliminate 40% of emissions from UK cement and lime production. Participating cement plants are Aggregate Industries' 1Mt/yr Cauldon cement plant in Staffordshire, Breedon's 1.5Mt/yr Hope plant in Derbyshire and Tarmac's 0.8Mt/yr Tunstead plant in Derbyshire.
Mineral Products Association (MPA) energy and climate change director Diana Casey said “The launch of the Peak Cluster is an exciting and vital step forward in the journey of the cement and lime sectors towards net zero. The region is a historic heartland for cement and lime production providing highly skilled jobs for local communities, and a secure supply of essential materials to the UK economy." She concluded "The UK Concrete and Cement Industry Roadmap to Beyond Net Zero highlighted the importance of carbon capture for the decarbonisation of the cement and concrete supply chain, and the Peak Cluster is an essential part of that transition. This launch demonstrates the commitment of cement and lime producers to transition to net zero to secure the future of these important industries, and the vital products they produce, in a net zero world.”
Heidelberg Materials North America to install carbon capture system at Mitchell cement plant 18 May 2023
US: Heidelberg Materials North America has secured funding for a feasibility study for a 2Mt/yr carbon capture installation at its Mitchell cement plant in Indiana. The study will also investigate possible storage and utilisation solutions for a future installation. The producer says that the US government's Department of Energy has pledged US$5m in funding towards the US$10m study.
Heidelberg Materials North America president and CEO Chris Ward said “We are pleased for this additional federal funding to help move our Mitchell carbon capture project forward. Heidelberg Materials recognises the significant role that carbon capture will play in achieving its goal of net zero carbon, and we are very excited to take the next steps in exploring this technology at our new cement plant in Mitchell.”
Trinidad Cement's sales rise in 2022 18 May 2023
Trinidad & Tobago: Trinidad Cements' sales were US$309.6m in 2022, up by 9% year-on-year. Group earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 19% to US$77.0m. The Trinidad and Tobago Guardian newspaper has reported that the producer recorded a US$16.1m loss during the fourth quarter of the year. The producer attributed this to a weather-related drop in cement demand across its markets, as well as restructuring costs for its Barbados-based subsidiary Arawak Cement.
Trinidad Cement chair David Inglefield and managing director Francisco Aguilera Mendoza said "We will ensure that our operations remain resilient by continuing effective cost management initiatives to maximise value in this challenging economic environment. Additionally, we expect improved productivity and efficiency of our equipment on completion of major planned maintenance in 2023."