Displaying items by tag: Brazil

Brazil: Votorantim Cimentos has secured a US$150m loan from the International Finance Corporation for an upgrade to its Salto de Pirapora cement plant in São Paulo. The producer aims to increase the alternative fuel (AF) substitution rate at the 4.8Mt/yr plant, and reduce its CO₂ emissions. It says that the loan is tied to sustainability performance indicators (SPIs), based on the reduction in the plant’s Scope 1 CO₂ emissions.

Mozambique/South Africa: China-based Huaxin Cement has agreed to buy the Africa-based business of InterCement for US$265m. The deal includes the Brazil-based company’s assets in Mozambique and South Africa. It follows InterCement’s sale of its business in Egypt earlier in 2023 to an unnamed buyer. The company will use the latest proposed sale to reduce its debts. The transaction will be subject to approval from regulators in China, Mozambique and South Africa. InterCement appointed JP Morgan as its financial advisor to the sale of its operations in Egypt, Mozambique and South Africa.

InterCement operates two integrated cement plants and three grinding plants in Mozambique under its Cimentos de Moçambique subsidiary and one integrated plant and two grinding plants in South Africa under its Natal Portland Cement subsidiary. Huaxin Cement’s operations in Africa include subsidiaries in Malawi, Tanzania and Zambia.

Brazil: Votorantim Cimentos recorded consolidated sales of US$1.18bn during the first quarter of 2023, corresponding to year-on-year growth of 18%. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) also rose, by 85% to US$158m. Cement sales volumes fell in Brazil and Bolivia, but rose in Spain. The producer noted 'pressure' from high raw materials, freight and fuel costs in Brazil.

CEO Osvaldo Ayres Filho said "Price management implemented globally to face cost inflation contributed to the positive results in the quarter, despite the still volatile and uncertain scenario in the global economy. The company remains firm and aligned with its strategic plan, financially solid and prepared for the opportunities and challenges that lie ahead."

Brazil: Votorantim Cimentos has appointed Osvaldo Ayres Filho as its global chief executive officer (CEO). He succeeds Marcelo Castelli in the post, who is becoming a member of the board of directors.

Ayres Filho holds over 25 years of professional experience working for companies such as Avon, Fibria and Ciba Chemicals. He joined Votorantim Cimentos in 2012 and has held the positions of financial director for the Europe, Asia and Africa region, operations director for the Southeast region in Brazil, financial director for the Brazilian business and global chief financial officer and Investor Relations Officer, with additional responsibility for the areas of strategy, information technology, mergers and acquisitions and global procurement. He became the company’s chief operations officer in 2021 with responsibility for cement, logistics and adjacent businesses. Ayres Filho holds a degree in business administration from Mackenzie Presbyterian University and a postgraduate degree in administration from the Getulio Vargas Foundation.

Brazil: Votorantim Cimentos has opened a new terminal in Fortaleza. The 19,000m² unit replaces a previous site in the city in Ceará state. The new terminal location is close to a railway line operated by Ferrovia Transnordestina Logística (FTL) to support logistics. It will supply the northeastern market with cement from the Poty brand and adhesive and mortars from the Votomassa product line. Sustainability features of the new terminal include a recycling system for the water used to wash forklift trucks.

Votorantim Cimentos operates two integrated cement plant in Ceará, at Sobral and Pecém respectively, as well as three terminals.

Mozambique/South Africa: InterCement, a Brazil-based cement producer controlled by Mover (formerly Camargo Corrêa), has started to receive offers for its assets in South Africa and Mozambique. The US-based bank JP Morgan is advising the company on structuring the group’s business in Africa. The value of the deal has been estimated at around US$300m.

The company previously announced the sale of its Egyptian unit in January 2023, undertaken to reduce its debt, which has come under pressure from rising global interest rates. The company must refinance US$548m in senior notes by May 2024, which were previously raised when InterCement acquired Portugal’s Cimpor through Camargo Corrêa in 2010.

InterCement sold 17.8Mt of cement in 2022 excluding the Egyptian unit.

Brazil: Data from the Brazilian National Cement Industry Association (SNIC) shows that total cement sales fell by 1.2% year-on-year to 14.7Mt in the first three months of 2023 from 14.9Mt in the same period in 2022. SNIC has blamed the decline in consumption on a poor economic situation, household debt and political uncertainty. Sales fell in all regions, except for the northeast, with a particular dip in the central-west area. Exports dropped by just under 50% to 58,000t. 12-month accumulated sales have been following a general downward trend since a peak of 64.8Mt in June 2021 compared to 62.5Mt in March 2023.

Paulo Camillo Penna, the president of SNIC, said “Projecting the government's expectation and the use of the input in the promised units until 2026, the cement industry in Brazil projects an increase of 8Mt of cement, if all constructions are made of masonry blocks, and of 12Mt, in the case of using concrete walls.”

Brazil: Votorantim Cimentos recorded specific CO₂ emissions per tonne of cement of 579kg/t in 2022, down by 3% year-on-year from 2021 levels and by 24% from its 1990 baseline.

The group achieved an alternative fuel (AF) thermal substitution rate of 27% in 2022, compared with 22% in 2021, marking strong progress towards its 2030 target of 53%. Meanwhile, its cement’s clinker factor fell to 74% from 75%, against a 2030 target of 68%.

Votorantim Cimentos’ global director of sustainability, institutional relations, product development, engineering and energy, Álvaro Lorenz, said “Fighting the negative effects of climate change is at the heart of our strategy and aligns with our focus on competitiveness and on creating a positive legacy for society. We continue to work to optimise our product portfolio, explore opportunities in the circular economy and develop new technologies. The improvements in our performance in 2022 reinforce our commitment and ongoing efforts to support the carbon neutral agenda.”

Brazil: Secil Supremo Cimentos has appointed FLSmidth to carry out a pyro process upgrade at its Adrianópolis cement plant in Paraná. The Denmark-based supplier says that it plans to carry out modifications on the plant's preheater, cooler and related auxiliary equipment. It says the new equipment will expand the plant's capacity to 3900t/day, corresponding to an annual production capacity of 1.42Mt/yr. It will also enable it to increase its alternative fuel (AF) substitution rate to 40%. Secil Supremo Cimentos' AF mix consists of shredded tyres, wood and other refuse-derived fuels.

FLSmidth's head of capital sales, Jens Jonas Skov Larsen, said “We are grateful for our continued partnership with Supremo, which has consistently invested in the latest technology. As the plant was already operating an ILC five-stage preheater from FLSmidth, it was well positioned to use AF.”

Greece: Titan Cement Group’s sales rose by 33% year-on-year to Euro2.28bn in 2022, while its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 20% to Euro331m. The producer sold 17.2Mt of cement, up by 2% year-on-year from 16.8Mt. Its USA sales rose by 34% to Euro1.31bn, its Southeastern Europe sales rose by 33% to Euro386m, its Greece and Western Europe sales rose by 22% to Euro326m, its Eastern Mediterranean sales rose by 48% to Euro256m and its Brazil-based joint venture Apodi’s sales rose by 38% to Euro115.9m. During the year, the group commenced exports of Type IL Portland limestone cement (PLC) from its Samsun, Türkiye, cement terminal to the US.

Group chair Marcel Cobuz said “The great performance results highlight the group's ability to adapt to market conditions and to activate effective growth strategies, driving positive financial performance mainly in US and Europe, where we serve the majority of our customers and have close to 90% of our sales. They also underscore the group’s resilience, adaptability and commitment of all our great teams to transform the group commercially and technologically while digitising our customer journey and decarbonising aggressively, delivering long-term value to all our stakeholders.”