September 2024
Mexico advances tyre recycling for cement production 05 July 2024
Mexico: The Secretariat of the Environment (Sedema) has reported that over 5600 tyres collected from illegal dumps in the districts of Xochimilco and Gustavo Madero have been transported to a treatment plant to be used as an alternative fuel for cement production. This initiative is part of a strategy to manage tyre waste, supported by a collaboration with Geocycle Mexico. The effort aims to address public environmental issues caused by tyre disposal in public spaces and environmentally sensitive areas, potentially leading to wildfires. Sedema also plans to expand tyre collection through the Reciclatrón Program to promote comprehensive waste management and reduce the reliance on fossil fuels and mineral extraction.
Zimbabwe: Bulawayo City Council has turned down Labenmon Investments' application to establish a cement grinding plant in Cowdray Park, citing ‘significant’ environmental risks. The plant had an expected output of 900,000t/yr. The council stated the proposed site's proximity to residential areas posed potential pollution hazards, leading to the suggestion of relocation to Umguza District. Concerns were also raised regarding the choice of a foreign company over local alternatives like PPC Cement.
FLSmidth Cement to cooperate with Carbon Re 04 July 2024
UK: FLSmidth Cement has entered a cooperation with Carbon Re, a UK-based climate tech company, to integrate FLSmidth Cement’s process control software, PXP, with Carbon Re’s AI-powered cloud platform. This integration will provide cement producers with access to new process optimisation capabilities.
Global: Lhyfe and Fives have signed a memorandum of understanding to provide a decarbonised solution for the cement industry, covering everything from hydrogen production to combustion. This initiative is designed to accelerate the energy transition by enabling the use of hydrogen in process industries without the need to modify existing equipment.
Lhyfe will produce and supply green hydrogen, while Fives will offer optimised and safe solutions for its use in industrial combustion processes, including cement production.
India: Cement volumes in India are projected to rise by 7-8% year-on-year in the 2025 financial year, driven by sustained demand from the infrastructure and housing sectors. This forecast is supported by the government's focus on infrastructure projects, sanction of additional houses and industrial capital expenditure, according to a report by the credit rating agency ICRA.
The Indo-Asian News Service reports that capacity addition in the cement industry is estimated at 63-70Mt between FY25 and FY26, with approximately 33-35Mt expected in FY25 alone. The capacity utilisation is expected to rise to 71% in FY25 from 70% in FY24, backed by higher cement volumes.
Ghana to regulate cement prices with new legislation 04 July 2024
Ghana: Minister of Trade and Industry, K Hammond, has presented the Ghana Standards Authority (Pricing of Cement) Regulations 2024 in Parliament. This legislative instrument aims to control cement prices in response to rising costs.
The legislation follows government efforts to persuade manufacturers to reduce prices and address public concerns over escalating costs, according to the Daily Guide Network. Despite opposition from the National Democratic Congress lawmakers and cement producers, the regulation will likely become law after a 21-sitting day period in Parliament. The new law will introduce a price stabilisation fund to ensure consistent cement prices across the country.
Mr Hammond said "For a long time, we haven’t seen cement prices de-escalating. It's always escalating. I think there's something fundamentally wrong with the pricing of cement in the country.”
Saint-Gobain looks set to increase its presence in the construction chemicals market this week when it announced a deal to buy Fosroc. A definitive agreement has been set for the acquisition valued at just over US$1bn. The purchase will be financed in cash and is expected to close in the first half of 2025.
The light construction materials company has been growing its construction chemicals capabilities for several years now. In 2021 it acquired Chryso for Euro1.02bn and then it bought GCP Applied Technologies for Euro2.3bn in 2022. Acquisitions of smaller companies in the sector, including Duraziv and IMPAC, also took place. With regards to the proposed Fosroc transaction, Saint-Gobain highlighted in its press release that the deal was “supported by solid macroeconomic factors including the transition towards low-carbon concrete.” It also noted that Fosroc’s geographic profile would strengthen its own presence in emerging markets such as India and the Middle East. Chryso’s market share is mainly in Europe, Turkey and Africa. GCP’s is in North America, Latin America and Asia-Pacific.
As Riccardo Stoppa, Saint-Gobain’s Business Director of Cement additives related to Global Cement Magazine in our May 2024 issue, the Construction Chemicals Business Unit of Saint-Gobain’s High Performance Solutions (SGHS) division broadly produces two groups of products for the cement and concrete sector: additives and admixtures; and a wider range of more recent products using newer chemistry approaches. Saint-Gobain’s total annual revenue is around €48bn/yr with SGCC’s contribution weighing in at around €1bn/yr. Most of that latter revenue derives from the former businesses of Chryso and GCP. Finally, Stoppa highlighted SGCC’s strength in North America, Europe and China but also highlighted the potential in the Middle East for its products. That last point makes interesting reading in light of the current Fosroc deal.
India was flagged as a benefit of the proposed Fosroc purchase. If any further reminder of the growth and market consolidation taking place there were needed, UltraTech Cement revealed this week that it is in the process of buying a 23% share of The India Cements. This story ties into the rivalry between the country’s two largest cement companies. Both UltraTech Cement and Adani Group are mounting up production capacity at pace through both acquisitions and by building new plants. All of this is rosy news for a company selling additives and admixtures to the cement and concrete market.
Saint-Gobain latest acquisition is subject to the usual regulatory conditions as one might expect. Yet, what Saint-Gobain didn’t mention in its statement, was that it reportedly had one of its sites in Türkiye visited in late 2023 as part of an international investigation into anti-competitive behaviour in the sector. Switzerland-based Sika was also linked to the case at the time. The UK-based Competition and Markets Authority (CMA) announced in October 2023 that it had launched an investigation into suspected anti-competitive conduct in relation to the supply of chemicals for use in the construction industry. It said it was working with the European Commission and that it had been in contact with other authorities, including the US Department of Justice, Antitrust Division. At this time Sika confirmed to Construction News that inspections had taken place into “suspected antitrust irregularities in the area of additives for concrete and cement.” However, it is important to note here that these were merely information gathering activities and no accusations of any breaches of competition law have been made so far. All of this suggests that Saint-Gobain does not seem too troubled by the interest of the various competition bodies with regards to its expansion plans.
In his interview, Stoppa told Global Cement Magazine that SGCC’s products allow cement and concrete producers to reduce the amount of cement used in their concrete. This is almost heretical thinking to a world that produces too much clinker. Yet Saint-Gobain is betting on exactly this outcome through the expansion of its construction chemicals division. Its purchase of Fosroc is the latest stage in this line of thought. It’s not the only company doing this. In May 2023 Sika completed its purchase of MBCC Group, another admixture manufacturer. Further sector consolidation looks likely.
India: Sumnesh Khandelwal has resigned as the Deputy Chief Financial Officer of JK Cements. He has been in post since late 2021. Prior to this he was the Deputy President – Commercial for JMC Projects and was the CEO of Robo Silicon Private. Earlier in his career he spent nearly 20 years working for UltraTech Cement, eventually becoming a Joint Executive President. Khandelwal is a chartered account affiliated to The Institute of Chartered Accountants of India.
Mexico: Cementos Moctezuma has appointed Fortino Delgado Carrillo as its Director of Legal Affairs. He succeeds Belen Molins Benavent in the post.
Delgado has worked as Senior Legal Manager Litigation for Cementos Moctezuma since early 2021. Before this he held a variety of corporate legal roles for companies, including Monere Business, Inter-Con Security Systems and MultiPack. He also worked as the Director General for the National Human Rights Commission Mexico. Delgado holds law qualifications from the Universidad Nacional Autónoma de México and the Universidad de Castilla-La Mancha.
Global: Titan Group and Sinoma CBMI have signed a Memorandum of Understanding (MoU) to collaborate on new business opportunities and technological innovations, focusing on decarbonising and digitising cement manufacturing.
Chair of the Titan Group executive committee, Marcel Cobuz, said "Our partnership with Sinoma will enhance our Green Growth Strategy 2026, benefiting both companies and advancing efficiencies across various fronts. Together, we are transforming the building materials sector towards a net zero future."
The MoU extends the collaboration beyond their initial joint venture on Titan's cement plant in Albania, exploring further advancements in low-carbon fuel and cooler technologies, virtual cement applications, digital logistics and carbon capture solutions.