September 2024
Cementos Argos reports consolidated sales and profit drop in 2020 25 February 2021
Colombia: Cementos Argos’ full-year consolidated net sales in 2020 were US$2.52bn, down by 4% year-on-year from US$2.62bn in 2019. The group’s cement volumes declined by 9% to 14.7Mt from 16.1Mt. Net profit for the year was US$21.8m, down by 36% from US$34.1m. Volumes, sales and earnings before interest, taxation, depreciation and amortisation (EBITDA) declined in all three of the group’s regions.
The company said that in the fourth quarter of 2020 the construction sector maintained a ‘positive trend,’ supported by the strong performance of the residential segment. It also recorded a slight improvement in the infrastructure segment. The producer said that warehouses and data centre projects had partially offset the weak performance of the segment, as offices and retail had been the most impacted during the coronavirus pandemic.
Chief executive officer Juan Esteban Calle, “I would like thank each one of our employees for their full commitment and resilience during 2020. I believe the experience we all lived over the last year will lead us to be even stronger and more prepared to face the opportunities and challenges of the future.”
Clinker grinding halts in Lami 25 February 2021
Fiji: Grinding units in Lami have ceased operations since mid February 2021. The reason for the pause is complaints by community stakeholders about pollution, including clinker spillages on the road from the Port of Suva. The Fiji Times newspaper has reported that plant owners met stakeholders on 23 February 2021.
Environment and Waterways Ministry permanent secretary Joshua Wycliffe said, "The origins of the issue are the transport itself: there was spillage on the way to the cement factories. We have stopped the companies; if it is the transport companies that are breaching, we have stopped them. We are open to someone else doing it provided they have the permits, proper paperwork and also follow the rules and conditions.”
Egypt: Arab Swiss Engineering Company (ASEC) has launched legal action against Misr Beni Suef Cement. The latter terminated the supplier’s technical management contract in mid-February 2021. Arab Finance has reported that the producer alleges that ASEC breached its commitments regarding its Beni Suef cement plant’s production capacity.
Netherlands: Malvern Panalytical has launched a new version of Aeris, a compact X-ray diffractometer (XRD) product. The supplier said that the upgrade contains capabilities previously seen only in much larger systems. The device provides data from polycrystalline materials at ‘competitive’ speeds. Its operational interface simplifies XRD measurements. Grazing-incidence XRD (GIXRD) will enable the examination of thin films and coatings, while transmission measurements will provide more accurate data that are not affected by sample preparation artefacts.
Product manager Wilijan Vissers said, “I’m very proud that we’re launching our new Aeris – a model that continually raises the bar for powder XRD. By providing the data quality of a floor-standing system in a compact instrument, the new Aeris will enable a wider range of our customers to carry out in-depth materials analysis and optimise their processes – helping push the scientific frontier even further forward.”
Saudi Arabia: Saudi Readymix has received its certification from the American Concrete Institute (ACI) to provide ACI certified courses. The courses form a minimum qualification for concrete industry workers.
Saudi Readymix’s Commercial and Technical Director, Chris Leptokaridis said, “We are extremely proud of our research and development facility, it’s important role as a company knowledge hub and testing ground of all our future materials. It is the most advanced and well-equipped research facility of any readymix producer in the Middle East.”
The concrete producer will start accepting candidates for its courses in March 2021. It will offer ACI trainings courses in concrete field testing and concrete strength testing.
HeidelbergCement's divestment strategy 24 February 2021
News has been dripping out slowly over the last few months about which assets HeidelbergCement is planning to divest. This week reporting from Bloomberg suggested that the German-based building materials producer might be seriously considering selling one or more integrated plants in Spain. The idea is reportedly part of a wider review of its portfolio in the country with the possible inclusion of cement plants at San Sebastian and Bilbao at a future date also. A proposed price of Euro300m for the national business was put forward by the sources to the reporters but it is unclear how many cement plants that figure includes.
HeidelbergCement announced in July 2020 that it had reduced the value of its total assets by Euro3.4bn following a review. It blamed this on reduced demand for building materials due to the coronavirus pandemic and the devaluation of its Hanson subsidiary in the UK, in part related to the UK’s exit from the European Union. A divestment plan followed at its Capital Markets Day event in September 2020 when it said it was simplifying its country portfolio and prioritising the strongest market positions. To this end it said it was setting up a watch list of underperforming assets to keep an eye on.
Over the next few months a number of corporate reorganisations and actual confirmed divestments occurred as well as plenty of speculation. HeidelbergCement-controlled Suez Cement started to acquire a 100% stake in its own subsidiary, Tourah Portland Cement, in September 2020. Suez Cement then sold its majority stake in Kuwait-based Hilal Cement in late January 2021. This week HeidelbergCement Bangladesh informed the local stock exchange that it is planning to amalgamate its subsidiary Emirates Cement.
Signs that European reviews had taken place could be seen later in the autumn of 2020. In November 2020 the Italian press picked up on rumours that HeidelbergCement was planning to move subsidiary Italcementi’s research centre from Bergamo, Lombardy, to Heidelberg in Baden Württemberg. Whether this was ever a serious proposition or not, this appeared to have been avoided in early February 2021 when an Italian union said it had agreed with Italcementi to keep the research centre in Italy as well as a preserving jobs generally. Meanwhile, also in November 2020, France-based subsidiary Ciments Calcia announced a major upgrade at its integrated Airvault cement plant but along with the conversion of two other integrated plants into a grinding unit and a terminal respectively, and changes at the French headquarters at Guervill.
Just before Christmas the bigger speculations started to appear in the press, with a story suggesting that HeidelbergCement was considering selling assets in California, US, with a target price of US$1.5bn for three integrated plants and associated concrete and aggregate units. That story is particularly beguiling given Cemex’s decision this month to reopen a kiln in Mexico to supply cement to the southwest US to meet shortages (See GCW 493)! Incidentally, readers should also note the story this week about a shortage of natural gas exports from Texas, US, that has caused cement plants in northern Mexico to shut down. This week, as mentioned at the start, has seen Spain added to the list of places that HeidelbergCement might be considering selling up in. The Spanish market like Italy has been rationalising heavily over the last decade particularly as export markets have dwindled. Oficemen, the Spanish cement association, reported that domestic cement consumption fell by 10% year-on-year to 13.3Mt in 2020 from 14.7Mt in 2019. On top of this Oficemen has repeatedly warned of the threat that CO2 emissions prices pose for its members’ exports.
Group chairman Dominik von Achten told Reuters this month that the company plans to sell the first of the five assets in early-to-mid 2021. Of course he wouldn’t say where, except for adding that the company would stay in ‘rock solid’ markets like Northern Europe. Indonesia has been seen as a candidate for disposal by analysts, likely due to local production overcapacity levels and LafargeHolcim’s own departure in Indonesia 2018. All Von Achten would say on the matter was that Indonesia was an ‘important’ market for the group. Whether it’s seen as important for reducing company debt or building value remains to be seen. HeidelbergCement hasn’t exactly been shy about saying what they are doing over the last half year or so but they are only going so far and they won’t comment on speculation. So in the meantime we must wait to find out more.
Holcim Philippines appoints Horia Adrian as head 24 February 2021
Philippines: Horia Adrian has been appointed as the president and chief executive officer (CEO) of Holcim Philippines. He succeeds John Stull will be reassigned to another position within LafargeHolcim Group after three years in the post.
Adrian is a graduate of the masters degree programme in business administration at Anjou University in South Korea and of the bachelors and masters programme in mechanical engineering at ‘Dunărea de Jos’ University in Galați in Romania. He joined the LafargeHolcim Group in 2000 as a project manager for Holcim Romania’s Ready-mix and Aggregates Division. Between 2004 and 2010 he was the sales, marketing and logistics director, and respectively the CEO, of Garadagh Cement in Azerbaijan. He later became the CEO of Romania and Market Head Emerging Europe in 2018.
Cementa appoints Matilda Hoffstedt as manager of Slite plant 24 February 2021
Sweden: HeidelbergCement subsidiary Cementa has appointed Matilda Hoffstedt as the manager of its integrated Slite plant. She will succeed the current plant manager, Fred Grönwall, in June 2021. Grönwall has been in post since 2018 and will leave the company.
Hoffstedt holds a master's degree in science from Uppsala University and started working for HeidelbergCement in 1998. She worked as a supervisor and project manager at Slite until 2010. Later she ran operations at the Skövde plant for 10 years until 2020 and is currently working as Manager Technical Support for HeidelbergCement Northern Europe.
Progressive Planet appoint new advisors 24 February 2021
Canada: Progressive Planet Solutions has appointed Randy Gue and Chris Halsey-Brandt to its advisory board. The company is developing pozzolan-based supplementary cementitious material (SCM) products. It operates its Z1 Zeolite quarry in Cache Creek, British Columbia and is working on other projects also in the province.
Gue will advise on introducing Progressive Planet's developing products into the marketplace with the initial focus on markets for PozGlass SCM. Randy spent 17 years with Lafarge Canada as the Director of Business Development and Resource Recovery where he led Lafarge's Western North American initiative to reduce variable operating costs by developing business-to-business relationships primarily related to the recovery and reuse of wastes and by-product streams from industries and institutions.
Halsey-Brandt will assist in financial analysis of the first PozGlass SCM manufacturing plant and will also assist in evaluating opportunities to grow the company through strategic acquisitions. He is both a chartered professional accountant (CPA) and a chartered business valuator (CBV). At present Halsey-Brandt owns and operates a successful food processing business. Prior to becoming an entrepreneur, he was a partner at Blair Mackay Mynett Valuations, an independent firm in Vancouver providing business valuation services.
Adbri’s revenue hit by lower demand in 2020 24 February 2021
Australia: Adbri’s revenue fell by 4% year-on-year to US$1.15bn in 2020 from US$1.20bn in 2019. Underlying earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased by 3% to US$216m from US$222m. Despite construction growth in Western Australia, cement volumes were reported as being down by 7.1%. The company said that clinker volumes dropped by 23% due to lower offtake by its Sunstake Cement joint venture partner Boral. It added that the impact of the coronavirus pandemic had been ‘well managed’ and that all sites remained operational.
“In the context of the challenging operating environment, the financial outcomes we delivered for the 2020 financial year are better than we had expected and reflect the successes of our cost-out and business improvement programs. Adbri also benefitted from improving demand in the Western Australian market during the period which offset slowing demand in east coast markets, particularly in New South Wales,” said Nick Miller, Adbri’s chief executive officer.