Displaying items by tag: Australia

Australia: Boral’s sales were US$2.28bn in the 2023 financial year, which ended on 30 June 2023. This corresponds to a 38% year-on-year rise from the previous first half. The group’s net profit dropped by 1.3% to US$96.6m. It noted a rise in its costs of energy, labour and transport, which it expects to continue up to the end of June 2024, and possibly on throughout the second half of 2024.

The Sydney Morning Herald newspaper has reported that Australian residential construction activity dropped by 7.7% month-on-month in June 2023. Boral CEO Vik Bansal said that the company expects residential, commercial and civil construction to return to growth in the 2024 financial year.

Australia: James Hardie has published its Sustainability Report 2023, recording its progress towards achieving its sustainability goals up to the end of the 2023 financial year on 31 March 2023. The producer's Scope 1 and 2 CO₂ emissions dropped by 26% compared to 2019 levels, against a new target of a 42% drop by 2030. Environmental product declarations (EPDs) covered 94% of its sales, ahead of a target for the year of 80%. The company launched a new goal to include 30% minority-identified people in its US management.

Chief sustainability officer and vice president, environmental social and governance, Jill Kolling said “Sustainability is a continuous journey, but a necessary one to drive value for our stakeholders, while delivering on our ambition to be a more resilient company. From our boardroom to our manufacturing plants, we are giving sustainability a place at the table to drive meaningful impact and instill accountability across all facets of our organisation.”

Australia: Alternative cement and concrete producers have welcomed a new Australian civil engineering standard that allows builders to use reduced-CO₂ geopolymer concrete in infrastructure projects. Wagners, which produces Earth Friendly Concrete (EFC), said that the revision has removed on if its key barriers to wider market acceptance. EFC replaces 100% of cement with supplementary cementitious materials, including ground granulated blast furnace slag (GGBFS) and pulverised fly ash, by virtue of its binder technology. Wagners previously supplied EFC for the London Power Tunnels project in the UK, based on local technical approval-based building codes. The producer now expects a new standard like the Australian one to follow in the EU.

Australia: Cement Australia has commemorated the 100th anniversary of the start of operations at its Railton cement plant in Tasmania with a centenary dinner.

Production manager Garry Bissett said "When it opened up in 1923, they built the small kiln, and it was only capable of cement production of 25,000t/yr; now we're producing 1.4Mt/yr." He added that the workforce has fallen to less than half of its original size of 300 people, to 140. Bissett concluded "We're doing some major work, with a lot of capital upgrades in the near future."

Australia: Korea Hydro & Nuclear Power has concluded a memorandum of understanding (MoU) with Hallett Group and renewable energy consultancy Elecseed. Business Korea Daily News has reported that the signatories will collaborate on Hallett Group’s Green Cement Transformation project. The project aims to reduce CO₂ emissions by 300,000t/yr, and eventually by 1Mt/yr, by producing reduced-CO₂ cement from three industrial waste streams. It will also use green hydrogen. The US$83.6m project has US$13m-worth of funding from the government.

Additionally, the partners say that they will seek to foster a ‘globally competitive hydrogen export industry.’

Australia: Adbri has appointed Jared Gashel as its Chief Financial Officer (CFO). He succeeds Dianne Mong, who has held the position of Acting CFO since March 2023. Mong will resume her role as the company’s General Manager Finance.

Gashel holds over 20 years of financial experience in multiple industries. Prior to joining Adbri, he was Acting CFO at Boral from 2022 to March 2023. His previous post at Boral was as Executive General Manager Group Finance and Property. Before joining Boral, he held multiple senior finance executive roles in Australia and Switzerland, and spent more than a decade working for KPMG, where he specialised in advisory and capital markets.

The two largest cement producers in Japan released their results for their 2023 financial years this week. Much like manufacturers elsewhere in the world they reported mounting sales revenues, but they also noted losses. Input prices such as coal rose in 2022 and these were passed on to consumers in the form of higher prices. However, this was insufficient to stop them making a loss.

In the case of Taiheiyo Cement, its domestic sales volumes of cement remained stable at 13.4Mt in the year to 31 March 2023. It made a loss at home in Japan but still reported a profit in its overseas businesses, despite export volumes falling by 41% year-on-year to 2.44Mt. The group also noted delays at construction sites due to a lack of workers. Recent domestic developments for Taiheiyo include an agreement in October 2022 to buy the cement business of chemicals company Denka. Outside of Japan, in China, the group suspended the production and sale of cement from its Jiangnan-Onoda Cement subsidiary in February 2023 citing a 'tougher competitive environment,' although it justified this decision as part of its strategy to refocus on Southeast Asia. Then, in late April 2023, the company was forced to stop its proposed acquisition of the Tehachapi cement plant in the US due to an inability to obtain regulatory approval.

Sumitomo Osaka reported a similar situation, with cement sales volumes also down year-on-year. Again, cement price increases were unable to catch coal prices made worse by negative currency exchange effects. Having got the bad news out of the way, it then it took the opportunity to outline its medium term strategy to 2035. It said that becoming carbon neutral was the key to this. In its 2022 financial year cement accounted for around 70% of total sales. However, it is now aiming to reduce this to 65% by 2025 and 50% by 2035. If this sounds familiar this is because it is similar to what Holcim is doing with its growing light building materials division and its diversification away from the heavy building materials trio of cement, concrete and aggregates. Sumitomo Osaka plans to invest over US$3.5bn towards this goal by developing its presence in the semiconductors sector, building its business in Australia and starting new ventures in decarbonisation.

Of the other cement producers, Tokuyama Corporation said in late April 2023 that it was considering suspending operation of one of the three kilns at its 4.54Mt/yr Nanyo cement plant as part of measures to strengthen profitability. It reported a growing loss for the current financial year that it blamed on raw material and fuel costs. Mitsubishi Materials and Ube Industries formed their merged cement businesses in April 2022 known as Mitsubishi UBE Cement Corporation. Ube said, as part of its latest financial results, that, despite a gradual decrease in the domestic market, cement sales had remained stable but that the business was “heavily affected” by rising energy prices such as coal. It added that demand for cement and concrete remain strong in its overseas market in North America.

Graph 1: Sales and exports of cement in Japan from 2013 – 2022. Source: Japan Cement Association.

The Japanese cement market peaked in the 1990s. Domestic sales of cement in Japan have declined over the last decade, as can be seen in Graph 1 above, but at a slower rate. Exports rose to a peak of just under 12Mt in 2017 but have slipped a little since then. Data from the Japan Cement Association placed production at 53.2Mt in 2022 compared to 61.7Mt in 2013. This trend explains the move by the cement producers towards decarbonisation, offshoring, diversification and consolidation. The bump in fuel prices over the past year may have accelerated this process, as examples such as Taiheiyo Cement’s takeover of Denka and Sumitomo Osaka’s new business strategy suggest. The race continues to keep cement production profitable in a changing business environment.

Australia: James Hardie's sales were US$3.77bn during the 2023 financial year, up by 4% year-on-year from 2022 financial year levels. Its flagship North America fibre cement segment increased its sales by 9% to US$2.79bn, its Asia Pacific fibre cement segment increased its sales by 1% to US$527m and its Europe Building Products segment increased its sales by 3% to US$470m.

James Hardie's CEO, Aaron Erter, said “We delivered full-year adjusted net income and operating cash flows of US$606m and US$608m respectively. I am pleased with how the team adjusted during the 2023 financial year to prepare the company to thrive through this cycle. This is reflected in our strong fourth quarter results, including all three regions delivering significant earnings before interest and taxation (EBIT) margin improvement sequentially in the fourth quarter.”

Looking forward to the first quarter of the 2024 financial year, James Hardie forecast adjusted net income growth of between -6% and +6.9%, to US$145 - 165m, throughout the quarter.

Australia: Adbri says that the cost of an upgrade at its Kwinana grinding plant is now estimated to be US$255 – 277m following an engineering design, schedule and budget review. The original estimate for the project in December 2020 was US$130m. The cement producer has blamed the increase in cost on mounting construction costs, a labour shortage and supply chain issues. Commissioning for the upgrade remains scheduled for the second quarter of 2024 with full operation forecast for the third quarter.

Adbri’s chief executive officer Mark Irwin said, “While we are disappointed the project cost is materially higher than initially forecasted, we remain confident the Kwinana Upgrade will support solid returns over the long term. The project continues to have a positive net present value. We have used this review period to also strengthen our project delivery team, adding experience and capability.” He added “The consolidation of Adbri’s two existing cement production sites in Western Australia into a single, world class facility at Kwinana positions Adbri to take advantage of continued growth in the local market. We also expect to deliver greater operational savings than originally forecasted.”

UK: A consortium led by Australia-based First Graphene including Breedon Cement, Morgan Sindall Construction and the University of Manchester plans to start a trial producing graphene-enhanced cement in June 2023. The project will aim to produce around 2000t of the cement in the first instance. Its performance as a binder in mortar and concrete systems will be analysed to assess the performance improvement, prior to use in real-world demonstrations by Morgan Sindall Construction. Data from Breedon and First Graphene production sites has already been analysed by the University of Manchester and found graphene enhanced cement to both offset CO₂ and demonstrate potential mechanical benefits, even at graphene loading levels less than 0.06%.The project is supported by a Euro215m grant from the Innovate UK scheme.

Michael Bell, the managing director and chief executive officer of First Graphene, said “Our research and development in collaboration with some of the world’s most innovative materials technology organisations, coupled with buy-in from industry partners to trial our graphene products, sets the foundation for a strong commercialisation pathway.” He added, “Greening of the concrete and cement sector provides our company with a great opportunity to strengthen both our revenue and ultimately profitability as market demand for decarbonisation technologies and materials increases.”