September 2024
Asia Cement (Russia) renews Freight One haulage contract 14 January 2022
Russia: Asia Cement has extended its contract with Freight One for the transportation of its cement by rail from Chais, Penza region. The producer said that it will aim to dispatch 164,000t of cement under the contract in 2022.
Spain: Cement Science Group (CemSciG) and the University of Málaga (UMA) have received a US$50,000 donation from US-based CSA Research for their research into reduced-CO2 cement production. The funding will continue the partners’ work at UMA’s department of inorganic chemistry, crystallography and minerology into alternative methods of cement production. Titles of their on-going projects include ‘Optimisation and Processing of LC3 Eco-Cements with Spanish Clays,’ ‘Microstructure Analyses of Limestone Calcined Clay Cements by Advanced Synchrotron Techniques’ and ‘Reduction of Cement Industry CO2 Emissions without Loss of Mechanical Properties.’
Cemex supplies concrete for Khalifa Port 14 January 2022
UAE: Cemex has supplied 400,000m3 of advanced semi-dry heavy-duty concrete to Abu Dhabi Ports Group’s Khalifa Port. Cemex said that the concrete’s composition maximises its lifespan, increasing sustainability.
LafargeHolcim US’ Ste. Genevieve and Alpena cement plants complete transition to Portland limestone cement production 13 January 2022
US: LafargeHolcim US has announced the successful transition of two further plants to Portland limestone cement production. The company’s 4.5Mt/yr Ste. Genevieve, Missouri, cement plant and 2.4Mt/yr Alpena, Michigan, plant have begun exclusively producing its OneCem reduced-CO2 Portland limestone cement (PLC).
LafargeHolcim US’ manufacturing North vice president Michael Nixon said "LafargeHolcim is fully engaged in making carbon reduction an urgent priority and 100% dedicated to leading the market transformation needed for climate stability." He added "To achieve net-zero commitments by midcentury, we must start now in accelerating the adoption of low-carbon building solutions to mitigate the impacts of climate change."
LafargeHolcim US successfully transitioned its Midlothian, Texas, cement plant to PLC production in 2021.
Steppe Cement increases its cement sales in 2021 13 January 2022
Kazakhstan: Steppe Cement sold US$83.4m-worth of cement in 2021, up by 16% year-on-year from its US$71.7m-worth in 2020. Its sales volumes totalled 1.69Mt for the year, up by 2.4% from 1.65Mt in 2020. It exported 202,000t of cement, down by 57% from 86,500t. The company said that production limitations prevented it from fully meeting demand, and it concentrated on local markets. Regarding its outlook in 2022, Steppe Cement said “We have a healthy cash balance and are continuing our capital expenditure (CAPEX) programme to increase the production capacity of the company by 5% by mid-2022.”
Dow Jones Newswires has reported that Kazakhstan’s 2021 full-year cement consumption was 11.6Mt, up by 23% year-on-year from 9.4Mt in 2020. A rule change to pension withdrawals permitting allocations for home improvement and construction bolstered demand growth. Exports fell by 20% to 1.6Mt from 2Mt, while imports rose by 33% to 800,000t from 600,000t.
A TEC to install ReduChlor chlorine bypass system at Holcim Schweiz’s Eclépens cement plant 13 January 2022
Switzerland: A TEC has secured a contract to install a new ReduChlor chlorine bypass system at Holcim Schweiz’s Eclépens cement plant in Vaud. The supplier says that it will also fit a bypass dust handling system and upgrade the alternative fuel (AF) feeding system at the plant.
Holcim Costa Rica receives Positive Packaging certificate 13 January 2022
Costa Rica: Société Générale de Surveillance has awarded Holcim Costa Rica its Positive Packaging certificate for 100% packaging energy recovery in 2021. The company offset the 1500t carbon footprint of its packaging production for the year by sorting and co-processing 14,000t of paper as fuel. It sourced the paper from its customer cement bag return scheme and through municipal recycling services run by fellow Holcim subsidiary Geocycle Costa Rica.
Holcim Costa Rica sustainability coordinator Catalina Mora said “Waste management is a global challenge, so this project has a direct impact on our contribution as a company to the vision of sustainability for the country.”
Saudi Aramco and China Building Materials Academy launch Nonmetallic Excellence and Innovation Center in Beijing 13 January 2022
China: Saudi Aramco and China Building Materials Academy (CBMA) have launched the Nonmetallic Excellence and Innovation Center (NEXCEL) in Beijing. The centre will leverage CBMA's expertise and resources to promote the development and application of nonmetallic technologies offering superior lifecycle cost, efficiency and environmental performance to metal-based alternatives in Chinese construction.
Saudi Aramco’s senior vice president of technical services Ahmad Al-Sa'adi said “We are excited to be part of this important initiative with CBMA, to jointly advance the use of nonmetallics in building and construction in China. At Aramco, we have been developing and deploying nonmetallic solutions within our own operations for more than 20 years as they offer superior lifecycle cost, efficiency and environmental advantages over their metal alternatives.”
There have been a couple of acquisitions of note this week in the north-western US and Holcim has picked up another building solutions company. To find out how the latter relates to former photography products producer Kodak, read on.
Starting with the north-western US, HeildelbergCement announced that it finalised the acquisition of Corliss Resources, a large family-owned aggregates and ready-mixed concrete company, for an undisclosed sum. The purchase includes major aggregate operations with sales volumes of about 2Mt/yr and reserves and resources of about 170Mt and four ready-mixed concrete (RMX) plants selling about 0.3Mm3/yr in the Greater Seattle area.
Global Cement normally sticks to cement but Holcim did something similar last week. It completed the acquisition of Cowden, another ready-mixed concrete and aggregate producer based in Bellingham in Washington state. This sale includes two RMX plants, eight aggregate facilities and a hauling fleet. Again, there was no word of the price.
Both the HeildelbergCement and Holcim purchases in the north-western US fit the selective bolt-on approach both companies have favoured in recent years. Looking specifically at the US, the United States Geological Survey (USGS) reported that estimated production for consumption of construction sand and gravel grew by 7% year-on-year to 753Mt in the first nine months of 2021. Estimated total construction aggregate production rose by 5% to 1.9Gt. Within the country, Washington’s sales of construction aggregates increased by 16% to 33Mt, the third largest rate by state nationally. Meanwhile, cement shipments for the country grew by 4% to 79.9Mt although they actually fell by 3% in Washington. This compares to annual growth of 2.8% in cement consumption in 2021 that the Portland Cement Association (PCA) was forecasting for the Pacific region of the US in the middle of 2021.
Holcim has been snapping up aggregates or RMX assets in established markets throughout 2021. These include US-based Marshall Concrete Products in December 2021, US-based Utelite Corporation in September 2021, Germany-based Heinrich Teufel in July 2021, the aggregates business and two RMX plants from Greece-based Halyps in May 2021 and Edile Commerciale and Cemex Rhone Alpes in Italy and France in February 2021. At the same time HeidelbergCement was mainly divesting itself of aggregates and RMX assets. It sold Halyps to Holcim and later in the same month agreed to sell its US West region to Martin Marietta Materials for US$2.3bn. The deal included cement, aggregates, RMX and asphalt businesses in California, Arizona, Oregon and Nevada. This covered two of its cement plants, with the exception of the 1.5Mt/yr Permanente cement plant in California, related distribution terminals, 17 active aggregates sites and several downstream operations. This makes the acquisition of new aggregate and RMX assets in Washington by HeildelbergCement interesting as we can see the company adjusting to its new market position. Although subsidiary Lehigh Hanson does not have a cement plant in the state it does operate a terminal in Seattle as well as other aggregate and RMX operations. North across the border in Canada though it still runs the integrated Delta Cement plant and terminal near Vancouver.
Returning to Holcim’s other acquisition this week brings us to Holcim’s target to expand the net sales of its Solutions & Products division to 30% of the group total by 2025 as part of its plans to decarbonise. This week it took one more step towards this goal with an agreement to buy France-based PRB Group, a manufacturer of coatings, insulations, adhesives and flooring systems. Global Cement Weekly has covered this topic a few times but, to recap, it started in January 2021 when Holcim announced it was buying roofing and building envelope producer Firestone Building Products for US$3.4bn. Various other related acquisitions have followed including an agreement to buy US-based Malarkey Roofing Products in December 2021.
How any of this relates to Kodak is as follows. Holcim’s predecessor Lafarge previously owned a major business away from cement, concrete and aggregates, namely gypsum. The gypsum wallboard business, like roofing, emits far less carbon than clinker production. In 2010 Lafarge’s gypsum business constituted nearly 9% of group revenue and it described itself as the third largest company in the sector worldwide. This was divested in the early 2010s in response to debts accrued by Lafarge’s acquisition of Orascom Cement in 2008. A decade later this decision appears to be the opposite of Holcim’s current strategy and indeed much of the cement sector’s current attempts to lower its carbon risk.
Kodak infamously filed for bankruptcy in 2012 after failing to move from analogue photography products to the digital market. The question cement company strategists should be asking themselves is whether their sector faces the same kind of disruption from the government and investment response to climate change. Lafarge apparently didn’t think so 10 years ago. Its successor Holcim does.
Adam Auer appointed as next head of Cement Association of Canada 12 January 2022
Canada: The Cement Association of Canada (CAC) has appointed Adam Auer as its next president and chief executive officer (CEO) with effect from the start of April 2022. He will succeed long-standing president and CEO Michael McSweeney, who has held the post for 12 years. McSweeney will remain as a strategic advisor to Adam Auer until the end of June 2022.
Auer holds over 20 years’ experience as a sustainability professional working with public, private and non-profit institutions. As the CAC’s Vice President of Environment and Sustainability he has worked with government, industry, environmental and other civil society groups to promote and enhance concrete’s contribution to sustainability, with a specific emphasis on life cycle approaches to climate change mitigation and adaptation. Prior to joining the CAC in 2012, Auer managed Environment Canada’s Corporate Environmental Innovation initiative, a multi-stakeholder program to promote the business and financial case for corporate environmental leadership and the link between sustainability and an innovative and competitive economy. He holds a Master of Environmental Studies from York University and a Bachelor of Science in Ecology from the University of British Columbia.