September 2024
Germany/Australia: Calix subsidiary Leilac has concluded a licence agreement with Heidelberg Materials for use of its carbon capture technology. The cement producer holds the licence indefinitely and for all operations across the globe. It said that Leilac’s technology offers effective capture of unavoidable cement plant CO2 emissions with minimal operational impact.
Heidelberg Materials currently has one Leilac system installed at its Lixhe plant in Belgium. It expects to commence construction of a second unit at its Hanover plant in Germany in 2023. Together, the installations will be able to capture 125,000t/yr of CO2. The producer says that both projects pave the way for future full-scale deployment of Leilac’s carbon capture model.
Cement Australia partners with Mitsubishi Gas Chemical Company for green methanol trial at Gladstone cement plant 28 October 2022
Australia: Cement Australia’s Gladstone cement plant in Queensland will host a study of methanol production from green hydrogen and captured CO2. Japan-based Mitsubishi Gas Chemical Company will supply its green methanol production technology, while hydrogen and oxygen feedstocks will be sourced locally. Cement Australia and Mitsubishi Gas Chemical Company will collaborate on commercialisation of their green methanol. Cement Australia said that carbon capture and its utilisation in value added products is a strategic pillar of the company’s decarbonisation roadmap.
The cement producer said “The Gladstone region is the ideal location for growing a diverse green hydrogen sector, with abundant renewable energy sources, existing infrastructure, including port facilities, and a highly skilled workforce. The green hydrogen economy is a priority for the Queensland government under the Queensland Hydrogen Industry Strategy.”
BBMG Corporation issues US$276m in bonds 28 October 2022
China: BBMG Corporation has issued US$276m in short-term commercial paper on the international bond market. The bonds have a maturity date of 24 March 2023. Bank of Beijing is the main underwriter of the offering.
China Knowledge Press News has reported that BBMG Corporation has a one-year outstanding balance of US$2.53bn and a total outstanding balance of US$6.39bn.
Cemex increases nine-month 2022 sales and income 27 October 2022
Mexico: Cemex sold 47.8Mt of cement in the first nine months of 2022, down by 5.3% year-on-year from 40.5Mt in the same period of 2021. Despite this, its consolidated revenues rose by 8%, to US$11.7bn from US$10.8bn. The group's cost of sales grew by 12% to US$8.09bn from US$7.25bn, and its operating earnings before interest, depreciation, taxation, depreciation and amortisation (EBITDA) dropped by 6.6%. Nonetheless, contributions from discontinued operations led to net income growth of 72%, to US$987m from US$574m.
Cemex said that higher prices in local currency terms drove sales growth across all of its regions. As a percentage of sales, costs grew to 70% from 68%, mainly on account of energy price rises. Operating EBITDA fell across all regions apart from Europe, the Middle East, Africa and Asia (EMEAA), where it rose by 2.5% to US$524m from US$511m. Cemex noted Europe's 'remarkable resilience' in implementing 'double-digit' price increases to increase earnings, while also crossing a threshold of 40% in CO2 emissions reduction from its 1990 baseline.
Yamama Cement commissions new cement plant 27 October 2022
Saudi Arabia: Yamama Cement has commissioned its second cement plant, with 20,000t/day in capacity across two clinker lines. The producer invested US$1.25bn in the plant's construction, which was carried out by Germany-based ThyssenKrupp. The facility is equipped with seven raw materials crushers, a 3.7km-long limestone conveyor belt, 110,000t of storage capacity, four Quadropol roller mills, two Dopol preheater towers, two Polro rotary kilns, two Polytrack clinker coolers, three 100,000t clinker silos, four Polycom high-pressure roller mills, six 22,590t and 25,000t cement silos and 22,000m³
in water storage basins. The new plant is situated in the eastern Arabian Desert, 80km from Riyadh.
Yamama Cement also operates the 6.4Mt/yr Al Karj Cement plant, 70km from Riyadh.
Spain: Cementos Molins' consolidated sales were Euro959m over the first nine months of 2022, up by 37% year-on-year from the same period in 2021. Cementos Molins attributed the growth to an increase in sales across all of its businesses and the 'significant' contribution of new acquisitions from 2021. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 11% to Euro208m, while its net profit rose by 3% to Euro90m. The group noted a 'strong performance' by its South American and Asian business. In general, it faced high costs growth, offset partly by increased product prices and the effects of its successful operational efficiency plans. Costs rose especially sharply in Spain, leading to margins deterioration there, while the impacts of hyperinflation in Argentina were lower than in the corresponding period of 2019.
Cementos Molins' net debt continued to decline throughout the period, to reach Euro137m, 0.5x its EBITDA. The group said that its financial position will give it leverage in its execution of new growth opportunities and its 2030 sustainability roadmap.
Regarding the company's third-quarter 2022 performance, chief executive officer Julio Rodríguez said "Despite a very challenging and uncertain global environment and the negative impact of high inflation costs, once again Cementos Molins has delivered very solid results in the third quarter. This performance is the outcome of the contribution of a very professional and committed team worldwide, whom I would like to thank for their big effort in such a difficult environment."
Titan Group tightens emissions reduction commitments 27 October 2022
Greece: Titan Group has set new CO2 reduction targets by adding Scope 3 emissions. Titan Group had previously committed to a 21% Scope 1 emissions reduction and a 42% Scope 2 emissions reduction per tonne of cementitious material between 2020 and 2030. Titan Group reduced its total CO2 emissions by 20% between 1990 and 2021, and by 5.5% year-on-year in the third quarter of 2022. Its latest targets are currently under review by the Science-Based Targets Initiative (SBTi).
Titan Group chair Marcel Cobuz said “The initiatives in our decarbonisation roadmap offer significant business growth opportunities. Our technology and sales teams across all our markets are focused on decarbonising our operations more quickly and offering our customers more and more sustainable and circular solutions.”
Austria: Rail logistics company ÖBB Rail Cargo Group (RCG) says that its haulage of 80,000t/yr of granulated blast furnace slag (GBFS) and clinker to and from w&p Zement's Wietersdorf cement plant in Carinthia by rail has removed 3200 trucks/yr from the road since its start in 2019. RCG's trains deliver the plant's clinker to the Peggau-Deutschfeistritz railway station in Styria, and return to the plant laden with GBFS from steel producer Voestalpine's nearby Leoben refinery.
RCG said that w&p Zement is currently working to increase its operations' reliance on rail, adding "Further innovative transport solutions are already being worked on."
Obstacles for Obajana 26 October 2022
Dangote Cement’s Obajana plant has been the focus of an argument between the cement producer and the Kogi State Government (KSG) in recent weeks. The integrated plant was forced to close in early October 2022 and then reopened in mid-October 2022 following an order by the Federal Government. The dispute then entered a legal phase, with the state government taking Dangote Cement to court. The case is ongoing.
The current stage of the disagreement dates back to late August 2022 when the Kogi State House of Assembly reportedly set up a committee to investigate the shares that the state owned in Dangote Cement and other organisations as part of an initiative to examine tax revenue from mining companies. By the end of September 2022 this had turned into a discussion about how exactly Dangote Cement had originally acquired its shares in the Obajana cement plant in Kogi state as well as how much tax it was paying. In early October 2022 the local government ordered the closure of the plant. Events then turned nasty as local vigilantes attacked the plant and hurt some of its staff. In the general unrest that followed the Kogi State House of Assembly was destroyed in a fire. The plant partially reopened fairly quickly and then fully once the Federal Government intervened. Legal action was then started at the Kogi High Court.
Unusually for this kind of disagreement both sides have published detailed information on their respective arguments. Dangote Cement’s parent company Dangote Industries outlined how it originally came to build and own the Obajana cement plant. In short, it signed deals in 2002 and 2003 to buy a 100% stake in Obajana Cement from the KSG, before the plant was built, with the proviso that the state could later buy a 5% share within five years. Dangote Industries then independently financed and built the plant and Obajana Cement later became Dangote Cement. Crucially, according to Dangote Industries, KSG never bought its 5% share. On the opposing side, the KSG has published what it says is the original contract and annexes that it signed with Dangote Industries. This agrees with some of what Dangote Industries has said, especially the part about the option to buy a 5% stake within five years. However, according to reports in the local press, KSG is attempting to persuade the judiciary to cancel the original contract on the grounds that it lacked clear consideration of what should pass from the state to Dangote Industries in return for giving the latter full ownership of Obajana Cement. In other words, the KSG is querying whether the contract is valid given that it received apparently nothing for giving a company away.
The Obajana cement plant was later built and it became operational in 2007. Today it is the largest cement plant in Nigeria and one of the largest in Africa. It produces around a third of the country’s cement and this is why its closure earlier in October 2022 became a national issue. Since the early 2000s Dangote Cement has become the biggest cement producer in Sub-Saharan Africa. It is both a success story for the region and the world.
There may be issues with the perceived or actual contribution Dangote Cement is making locally in Kogi State. These are the kinds of issues that both companies and governments contend with continually. Companies consider where it is cost effective to place investments and governments try to entice them. It is possible that the KSG gave Obajana Cement to Dangote Industries in what it retrospectively considers is a poor deal. It is also possible that Dangote Cement has not paid sufficient tax, although it strongly denies this, and the KSG seems to have moved on from this line of attack. What may be the bigger issue here is if Dangote Cement is perceived to have not paid its dues in Kogi State. However, it seems odd that the KSG would suddenly decide to go after Dangote Industries nearly 20 years after agreeing to the deal. It also seems strange that no lawyer for either party flagged the consideration issue at the time. Thankfully calmness has now prevailed in the state and the cement plant remains open. It is for the courts to decide the validity of the original contract between Dangote Industries and the KSG.
Jeon Gun-Sik appointed as president of Hanil Cement 26 October 2022
South Korea: Hanil Cement has appointed its chief executive officer (CEO) and vice-president Jeon Gun-Sik as its president. He first joined the company in 1991, according to the Maeil Business Newspaper. He worked as the vice plant manager of the Danyang Plant, the head of the business planning department, the head of the business division and the executive vice-president of the head office of Hanil Hyundai Cement. Notably in 2017 he oversaw the acquisition of Hyundai Cement, a subsidiary now known as Hanil Hyundai Cement, that he also runs as CEO and president.