Displaying items by tag: Australia

Germany: HeidelbergCement’s profit was Euro1.24bn in 2019, down by 3.4% from Euro1.23bn in 2018. Its revenue grew by 4.3% to Euro18.9bn from Euro18.1bn. HeidelbergCement says that it reduced its specific net CO₂ emissions by 1.5% year-on-year to 590kg/t from 599kg/t in 2018 and ‘intensified its research and development (R&D) efforts on carbon capture and utilisation/storage (CCU/S)’ in every operating region globally.

The group announced a year-on-year increase in volumes in the first two months of 2020, with all but three of its plants (HeidelbergCement subsidiary Italcementi’s 2.8Mt/yr Calusco plant, 2.5Mt/yr Rezzato plant and 0.6Mt/yr Tavernola plant in Lombardy region, Italy) still operating through the coronavirus pandemic, though it noted that construction is slowing in the US, Australia and Western Europe due to the outbreak.

HeidelbergCement cancelled its 7 May 2020 annual general meeting (AGM) ‘due to the spread of the coronavirus.’

Australia: The New South Wales Environment Protection Authority (EPA) has issued a US$9800 fine and a clean-up order to Boral for damage caused by a discharge of slurry from its Maclean concrete plant. The Daily Examiner newspaper has reported that a member of the public alerted the body to the spill, which issued from a storm drain into the Clarence River, on 15 October 2019. EPA north regulatory operations director Karen Marler said that the slurry ‘appeared to have been discharging from the Boral plant for some time prior.’ She said, “Subsequent EPA inspections confirm the clean-up and actions taken to improve plant operation were effective.”

Australia: Adelaide Brighton’s profit in 2019 was US$31.1m, down by 74% from US$122m in 2018. Sales were down by 7% to US$997m from US$1.07bn. Adelaide Brighton chairman Raymond Barro explained that ‘increased competition and softer demand for construction materials’ locally impacted revenue and earnings. He said that ‘cost pressures across sea freight, transport and raw materials’ caused the dive in profit.

The Queensland state government in Australia took a blunt approach to health and safety earlier this month when a report it commissioned said that it expected 12 deaths to occur in the mines and quarries sector over the next five years unless changes were made. This is far removed from the usual news stories that industry magazines like Global Cement and others cover. Typically, these are either plants or companies reaching Lost Time Injury (LTI) milestones or sad (but thankfully rare) reports of death.

The forecast in Queensland was based on a review of fatalities in the sector that the state commissioned from Sean Brady, Department of Natural Resource, Mines and Energy, looking at the years 2000 to 2019. Year-by-year the figures were significantly lower than those occurring in the 1900 to 2000 period but didn’t appear to have any discernable pattern. However, when presented as a 12-month rolling sum of fatalities, a two to three year cycle seemed to occur. Brady then went on to look at how the fatalities happened, how the industry behaved and reacted and what could be done to improve the situation. His recommendations included looking more deeply at the causes of seemingly unrelated accidents and then changing overall organisational behaviour and insight through methods such as adopting principles of High Reliability Organisational theory, simplifying the reporting system and changing the standard safety indicators like LTI.

That last point is interesting given the prevalence of LTI indicators on corporate sustainability reports in the cement industry. The point that Brady cites here is that LTI can become a measure of how well injuries are managed, not how safely an organisation is performing. For example, the definition of what an injury is can be manipulated, leading to distortion, as can workers being brought back to work before they recover or into lighter duties. Instead he recommends that ‘serious accidents’ be used in place of LTI. These are defined as incidents that result in a fatality or incidents where an individual requires admission to hospital for treatment of an injury. The preference here is based on so-called ‘serious accidents’ being unambiguous and transparent because they are defined by a third-party medical practitioner.

Wider critiques of health and safety measurements have identified under-reporting of incidents arising from safety incentive programmes, safety culture, employee perceptions of reporting and workplace bullying. This isn’t to say that the LTI measure is not fit for purpose. It has undoubtedly led to higher safety conditions around the world, with reduced injury and mortality from working conditions, and it allows for comparisons between organisations. Yet, any health and safety metric or indicator could be liable to bias or manipulation either unconsciously or consciously. Serious accidents, for example, could be potentially undermined by an organisation having its own medical centre and would also suffer from different health care systems in different locations. Throw in different legislative frameworks around the world and comparing countries can also start to become confusing.

This tension between data and real-life safety is acknowledged by the Global Cement and Concrete Association (GCCA) in its sustainability guidance from late 2018. It distinguishes between so-called ‘lagging’ indicators, like LTI and fatalities, which show the effectiveness of a safety programme after the fact and the importance of continual safety improvement plans that aim to prevent adverse events before they happen. It is easy to become lost in a dust storm of facts and figures on health and safety but, as the Queensland authorities and the GCCA agree, measuring health and safety is a means to an end. The aim is zero harm to everyone involved.

Australia: A report commissioned by the Queensland Ministry of Mines has investigated the causes of all 47 deaths in mines and quarries in the state between 2000 and 2019, concluding that systemic, organisational, supervision or training failures caused the deaths in almost all cases. The report proposed that the state government should require quarry operators to use the Serious Accident Frequency Rate (SAFR) as their metric for health and safety monitoring, calling the Lost Time Injury Frequency Rate (LTIFR) unreliable because it is prone to manipulation, being “a measure of how the industry manages injuries after they have occurred. It is possible, therefore, to reduce the LTIFR without making the industry safer,” said the report’s author Sean Brady.

In the Australian 2019 financial year, ending 31 July 2019, six people died in Queensland’s quarries and mine.

Australia: Boral has seen a 40% decrease in its profit during the first half of its fiscal year a period that ended on 31 December 2019. Its profit fell to US$90.4m for the period from US$151m a year earlier. Boral said that this was due to higher costs and weak housing activity in Australia and South Korea. It was also affected by the costs of transactions between its USG-Boral joint-venture partner USG and Knauf, which bought USG in 2019, along with its interest in USG-Boral.

Australia: The Australian Competition and Consumer Commission (ACCC) says that Barro Group’s acquisition of a 43% stake in Adelaide Brighton will not ‘substantially’ lessen competition. The ACCC examined the completed acquisition closely because the two vertically integrated companies have overlap in the market for the supply of cement, ready-mixed concrete and aggregates.

It found Barro and Adelaide Brighton will continue to face competition from Boral, Holcim and Hanson, three large vertically integrated competitors with national operations, along with a number of smaller independent competitors. The ACCC looked at competition impacts on the pre-mixed concrete and aggregates markets in Melbourne, Brisbane and Townsville, where Barro and Adelaide Brighton’s operations overlap and did not identify any areas of concern.

Barro did not seek informal merger clearance from the ACCC prior to acquiring Adelaide Brighton. However, the ACCC says it may reopen its investigation if it receives further information that alters its current conclusions.

Australia: National press in Australia has reported that the Irish building materials giant CRH has approached Boral regarding a possible takeover. CRH snapped up US$6.5bn of assets from Lafarge and Holcim in 2015 following their merger to become LafargeHolcim, and it consequently became the third-largest building materials supplier by market value internationally.

The speculation comes amid market expectations that Boral could be broken up if a takeover does not unfold soon. Suitors have looked at Boral before but a deal has never eventuated. The company’s market value is US$3.9bn, so it could be within the grasp of a cash-rich strategic player or private equity firm from overseas. Three years ago Boral was worth more than US$4.8bn.

Meanwhile, Australia's devastating recent bushfires have affected Boral’s Berrima plant in New South Wales, likely leading to lower production and margins. This was due to extended leave for staff and road closures.

Australia: German refractory producer Refratechnik has acquired Queensland Magnesia (QMAG). The acquisition adds 300,000Mt/yr of magnesium oxide to Refratechnik’s supply of raw materials. The company said, “With a common focus on performance excellence, we will deliver greater value to our customers.”

Australia: Adelaide Brighton’s court dispute with Concrete Supply has ended in a ruling in favour of the former. The Advertiser newspaper has reported that between August 2009 and November 2017 Adelaide Brighton supplied US$22.6 to Concrete Supply, for which Concrete Supply paid US$14.5 before entering administration in November 2017. Federal Court judge Anthony Besanko ruled that Concrete Supply ‘could not reasonably have held a genuine belief that it was entitled to the alleged discount or rebate.’