Powtech, 27/9 - 29/9, Nuremberg, Germany. Leading trade fair for Powder & Bulk Solids Procssings & Analytics. Get Your Ticket Now!
Powtech, 27/9 - 29/9, Nuremberg, Germany. Leading trade fair for Powder & Bulk Solids Procssings & Analytics. Get Your Ticket Now!
Global Cement
Online condition monitoring experts for proactive and predictive maintenance - DALOG
Your Particulate and Gaseous pollution abatement partner - Thermax
  • Home
  • News
  • Conferences
  • Magazine
  • Directory
  • Reports
  • Members
  • Live
  • Login
  • Advertise
  • Knowledge Base
  • Alternative Fuels
  • Services
  • Jobs
  • Privacy & Cookie Policy
  • About
  • Register
  • Trial subscription
  • Contact
News CRH

Displaying items by tag: CRH

Subscribe to this RSS feed

Quebec minister calls for end of labour dispute at Ash Grove’s Joliette cement plant

11 April 2022

Canada: Jean Boulet, the labour minister of Quebec, has called for an end to a long-running labour dispute at Ash Grove’s Joliette cement plant that has been running since mid-2021. Around 130 members of the Unifor union were locked out by management, according to Postmedia Breaking News. In a message on social media Boulet invited the parties to "concentrate their efforts at the negotiation table with a conciliator." The union alleges that company owner CRH has been importing raw materials to make cement from Greece or Turkey whilst the workers have been excluded from the plant. Negotiations will continue in mid-April 2022.

Published in Global Cement News
Read more...

Eqiom secures European Commission Innovation Fund funding for Lumbres cement plant upgrade

04 April 2022

France: The European Commission (EC) has awarded funding under its Innovation Fund 2021 for CRH subsidiary Eqiom’s upgrade to its Lumbres, Hauts-de-France, cement plant. The work includes the replacement of a kiln and the installation of a carbon capture, utilisation and storage (CCUS) system at the plant, in collaboration with Air Liquide. The producer says that the project is one of seven selected under the EC’s K6 programme of innovation funding in line with the EU Green Deal.

Published in Global Cement News
Read more...

How much does Holcim value Russia?

30 March 2022

The economic fallout from the war in Ukraine continued this week with the news that Holcim plans to leave the Russian market. It said that it took the decision based on its “values to operate in the most responsible manner.” The company’s Russian subsidiary added that all of its plants would continue to operate as normal while it considered its divestment options.

Holcim’s road to withdrawal has been staggered. In February 2022 at the start of the war it pronounced its sympathy for any affected colleagues and their families and made a Euro1m donation to the Red Cross. Later it said that it would continue operating its business in Russia by following all regulations and supplying the local market. However, at this time it said it would suspend further capital investments in Russia and that it would “not benefit from our presence in this market.”

It’s unknown what prompted Holcim to take the plunge with Russia one month after the war started. At the very least, making decisions over assets valued this highly takes time. CM Pro has reported that the Russian government has considered introducing reference prices for building materials for infrastructure projects and that the Federal Antimonopoly Service (FAS) has been monitoring prices for ‘unreasonable’ growth over the last month. This follows grumbling by the Ministry of Industry and Trade in late 2021 about an apparent low capacity utilisation rate in the country despite shortages in the Central Federal District.

CRH said that it was leaving its Russian concrete business in early March 2022. Yet the decision by Holcim makes it the first of the three western multinational cement producers with large-scale operations in Russia to publicly say it’s pulling out. Holcim, HeidelbergCement and Buzzi Unicem each operate at least two integrated cement plants in the region.

Lafarge entered the Russian market in 1996. Its successor Holcim runs plants at Voskresensk and Kolomna in the Moscow region, at Ferzikovo in the Kaluga region and Volsk in the Saratov region. Together the plants have a production capacity of around 9Mt/yr. Over the last decade Holcim and its predecessor has invested at least a reported Euro1.3bn in three of the plants. The dry-production line Ferzikovo plant was built in 2015. The Shchurovsky plant in Kolomna was originally founded in 1870 and claims to be the oldest in the country. In 2011 it started commissioned a new dry production line. The Volsk plant started a modernisation project in 2017. The fourth, the Voskresensk plant, was mothballed in 2016. However, in early February 2022 LafargeHolcim Russia said it was aiming to spend Euro23m towards restarting production at the site. This was likely due to a boom in construction in 2021. The subsidiary also owns three aggregate quarries in the Republic of Karelia region of the country, near the border with Finland.

Selling up in Russia looks set to be difficult for Holcim. This is principally due to the European and American economic sanctions and the Russian government’s stated intention to nationalise the assets of any company trying to leave. This is clearly why Holcim has worded its plans so vaguely. If or when a peace deal is reached between Russia and Ukraine, the business environment could change significantly, depending on the terms, complicating any existing sale process. Determining how much Holcim might want to get from such a sale in these conditions is complex. Smikom bought Eurocement from Sberbank for Euro2.1bn in 2021 giving it 10 plants. Could Holcim realistically expect to sell its plants for around Euro200m each in the current environment? As for the hit Holcim might take, in its annual report for 2021 it said that the group’s Russian operations represented around 1% of the 2021 consolidated net sales. This would have been around Euro260m. Its Russian cement production capacity was reported as being 9Mt/yr in 2021 or 3% of the group’s global figure of 293Mt/yr.

Finally, it is worth noting though that Lafarge’s charges of ‘complicity in crimes against humanity’ also continued to be tested in the French courts this week. The legal case relates to the conduct of Lafarge in Syria between 2011 and 2014. This is totally separate from the situation in Russia but it does highlight the issue of corporate ethics for the group once again. Following proceedings in December 2021, Beat Hess, chair of the board of Holcim said, “The described events concerning Lafarge SA were concealed from the Holcim board at the time of the merger in 2015 and go completely against the values of our company.” Consider that use of ‘values’ again. Holcim may be about to find out how much it is prepared to pay for its values as it departs Russia.

Published in Analysis
Read more...

Vicat to test new alternative raw materials at Xeuilley cement plant

23 March 2022

France: Vicat plans to use a kiln at its 1Mt/yr Xeuilley, Meurthe-et-Moselle, cement plant for trials of cement production using new alternative raw materials developed under the international CO2Redres supplementary cementitious materials (SCM) project. The project brings together Vicat, HeidelbergCement subsidiary CBR, Buzzi Unicem subsidiary Cimalux and CRH subsidiary Eqiom in an effort to map mineral resources, waste deposits and usable residues ‘on a cross-border scale.’ On the basis of this research, the partners will seek to develop new SCMs for use in cement production.

Published in Global Cement News
Read more...

CRH completes latest US$300m phase of share buyback programme

17 March 2022

Ireland: CRH says that it completed another phase in its on-going share buyback programme on 16 March 2022. The group purchased US$300m-worth of shares, bringing its total cash returned since the beginning of the programme in May 2018 to US$3.2bn. On 17 March 2022, it concluded an agreement to begin the purchase of a further US$300m-worth of its shares by 27 June 2022. The producer instructed investors that any decision in relation to any future buyback programmes will be based on an ongoing assessment of the capital needs of the business and general market conditions.

Published in Global Cement News
Read more...

Turkish coal imports, March 2022

09 March 2022

Türkçimento’s Volkan Bozay took to the airwaves last week to raise the issues that the war in Ukraine is causing for Turkey-based cement producers. The head of the Turkish Cement Manufacturers’ Association explained, to the local Bloomberg HT channel, that the dramatic jump in the price of Newcastle Coal posed a serious threat to the sector. The price jumped nearly US$100/t in a single day in early March 2022. Bozay said that the cost of cement from a plant using imported coal would consequently rise by around US$15/t. He added that the association’s members had an average of 15 – 20 days of coal stocks.

Graph 1: Price of coal, March 2020 – March 2021. Source: Trading Economics.

Graph 1: Price of coal, March 2020 – March 2021. Source: Trading Economics.

In a separate press release Türkçimento revealed that Turkey, as a whole, imported approximately US$1.5bn of coal from Russia in 2021. The cement industry imported about 5Mt of coal in 2021, from all sources, although the majority of this came from Russia. Coal shipments from Russia since the start of the war were reported as ‘very limited or even not possible.’ It was further explained that each US$10/t increase in the price of coal put up plant production costs by US$1.5/t of cement.

Naturally Bozay’s appearance on a television news show carried a lobbying aspect. He called for government import standards – such as the sulphur ratio, lower heating values and volatile matter limits - to be relaxed to allow coal to be imported more freely from sources such as Colombia, Indonesia and South Africa. There was also a push to let in more alternative fuels such as tyres and waste-derived fuels. The bit that Bozay didn’t mention though was how many of his members had long term coal supply contracts in place to cushion them, from short term price inflation at least. Yet, if coal shipments from Russia have simply stopped, then the price is irrelevant. A cement kiln configured to run on coal stops when it uses up its stocks.

Turkey was the world’s fifth largest cement producer in 2021 according to the United States Geological Survey (USGS). Türkçimento data shows that in 2020 it exported 145,000t of cement to Russia by sea. Overall it exported 16.3Mt of cement and 13.5Mt of clinker. The US, Israel, Syria, Haiti and Libya were the top destinations for cement. Notably, Ukraine was the sixth largest recipients of cement, with 752,000t imported, although anti-dumping legislation introduced in mid-2021 looked set to reduce it until the war started. Ghana, Ivory Coast, Guinea, Cameroon and Belgium were the principal recipients of clinker. Cumulative cement exports for the year to October 2021 were up by 3% year-on-year compared to the first 10 months of 2020. Clinker exports were down by 27% though. Overall domestic production and sales in Turkey rose by 9.5%, suggested an estimated production figure of 79Mt for 2021.

Other fallout in the cement sector from the war in Ukraine this week included Ireland-based CRH’s decision to quit the Russian market. It entered the region in 1998 through a subsidiary based in Finland and was operating seven ready-mixed concrete plants via its LujaBetomix joint venture. CRH says that all operations in Russia have now stopped. In 2021 it sold its lime business in Russia, Fels Izvest, to Russia-based Bonolit. Although selling concrete plants is not trivial, these are far cheaper assets than clinker production lines. Germany-based HeidelbergCement, Italy-based Buzzi Unicem and Switzerland-based Holcim each operate at least one integrated cement plant in Russia. So far these companies have publicly expressed dismay at the humanitarian crisis unfolding in Ukraine and made donations to the Red Cross.

Graph 2: European Union Emission Trading Scheme price, 2020 – March 2022. Source: Sandbag.

Graph 2: European Union Emission Trading Scheme price, 2020 – March 2022. Source: Sandbag.

Finally, one more surprise this week has been a crash in the European Union (EU) Emission Trading Scheme (ETS) carbon price from a high of Euro96/t in early February 2022 to Euro58/t on 7 March 2022. As other commentators have stated, normally the carbon price would be expected to follow the energy market, but this hasn’t happened. Instead investors have pulled out, possibly to maintain liquidity for other markets.

With the US set to ban Russian oil, gas and coal imports and phase-outs to varying degrees promised by the UK and the EU in 2022, we can expect more turbulence from energy markets in the coming days. As the Turkish example above shows, all of this can... and will... have effects on cement production.

Published in Analysis
Read more...

CRH exits Russian market

04 March 2022

Russia/Ukraine: CRH says that it has withdrawn from the Russian building materials market. It operated seven ready-mix concrete batching plants and a concrete panel plant in St Petersburg through its subsidiaries LujaBetomix and Rudus. CEO Albert Manifold estimated the group’s investments in the businesses to be Euro1.5 – 2m. RTÉ News has reported that Manifold called the operations ‘infinitesimally small,’ and said that a Russian withdrawal had previously been on the group’s radar anyway.

CRH says that it has suspended its Ukrainian operations, which reportedly generated Euro281m in sales in 2021, and continues to support its 820 employees in the country in every way it can.

Published in Global Cement News
Read more...

CRH’s sales and earnings climb in 2021

03 March 2022

Ireland: CRH’s consolidated sales rose by 12% year-on-year in 2021 to Euro28bn. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) for the year rose by 16% to Euro4.83bn.

CEO Albert Manifold said "Our 2021 performance reflects the outstanding commitment and resilience of our people as well as the benefits of our integrated, customer-focused business strategy. Despite an inflationary input cost environment, we expanded our margins and delivered good growth in profits, returns and cash generation. This further underpins our strong and flexible balance sheet, providing us with significant opportunities for future growth and value creation.” Looking to the future, Manifold said “While the demand backdrop remains favourable across our markets, there are a number of challenges and uncertainties which we must continue to manage carefully as we look to deliver further value for our shareholders in the year ahead."

Published in Global Cement News
Read more...

2021 roundup for the cement multinationals

02 March 2022

Cement markets have mostly recovered following the shock emergence of coronavirus in 2020. Most of the producers that have released their results so far for 2021 have reported strong boosts to sales revenue and racing earnings as something more like normality resumed. The following roundup covers a selective group of cement companies around the world.

The recovery in 2021 has made the outliers in the companies covered here noteworthy. UltraTech Cement, Semen Indonesia and Dangote Cement are all large regional companies with dominant positions domestically and varying degrees of international spread. As can be seen in Graph 1, UltraTech Cement and Dangote Cement both reported very large increases in sales, over 20% year-on-year. By contrast, Semen Indonesia sales fell very slightly.

Graph 1: Sales revenue from selected cement producers in 2020 and 2021. Source: Company reports. Note: Figures calculated for UltraTech Cement.

Graph 1: Sales revenue from selected cement producers in 2020 and 2021. Source: Company reports. Note: Figures calculated for UltraTech Cement.

One reason for UltraTech Cement and Dangote Cement’s success can be seen in Graph 2 (below). Both companies managed to sell more cement in 2021. Semen Indonesia did not due to Indonesia’s production overcapacity and new competitors. It also blamed a significant rises in coal prices for a 9% drop in its earnings before interest, taxation, depreciation and amortisation (EBITDA).

UltraTech Cement has been wary of successive waves of coronavirus throughout its 2022 financial year, but generally the Indian regional markets have recovered and government-backed rural housing and infrastructure spending have supported growth. It did note rising coal prices earlier in the year, but these were reported to have somewhat softened during the quarter to 31 December 2021. It is worth noting that the ongoing war in Ukraine is affecting energy markets but more on this at the end of this article. Dangote Cement’s performance was slowed somewhat by the start of coronavirus but it has since resumed its turbo-charged trajectory with volumes, revenue and earnings growth all above 10% in 2021. Mostly this performance is supported by the Nigerian market but the company is doing well internationally too.

Graph 2: Cement sales volumes from selected cement producers in 2019 and 2020. Source: Company reports. Note: Figures calculated for UltraTech Cement.

Graph 2: Cement sales volumes from selected cement producers in 2019 and 2020. Source: Company reports. Note: Figures calculated for UltraTech Cement.

Holcim and HeidelbergCement’s increase in sales revenue in 2021 are actually fairly similar on a like-for-like basis, both with around 10%. The former’s sales volumes were up across cement, ready-mixed concrete and aggregates in each of its regions around the world, as were sales revenue. Holcim’s big move in 2021 has been the expansion of its Solutions & Products segment with the acquisition of Firestone in April 2021. Now this has continued with the completion of the Malarkey Roofing Products purchase on 1 March 2022, a few days after it released its 2021 results. Chief executive officer Jan Jenisch described the move towards lightweight building materials as generating, “further double-digit growth engines for the company.” As an aside, it was fascinating to see CRH leave the building envelope business this week, mostly based in the US, with an agreement to sell up its division for US$3.8bn to private equity. The business CRH is divesting sells architectural glass, storefront systems, architectural glazing systems and related hardware to customers primarily in North America. CRH is clearly pursuing a different business strategy to Holcim.

HeidelbergCement has also reported a strong year in 2021 albeit without the Holcim razzle-dazzle of barging into new market areas. It noted significant increases in energy prices and pandemic‐related lockdowns in some key markets in Asia. It described a very slight cement sales volume decline in Africa and the Middle East and a drop in earnings in Asia. Its trump cards are its carbon capture projects coming down the pipeline. It’s keen to remind investors about this with the unspoken implication that it might save the company money in the future when carbon taxes bite further.

Both Cemex and Buzzi Unicem followed the growth pattern seen in sales and earnings by the other larger multinational producers covered above. Central and South American markets really took off for Cemex in 2021, starting with its home market in Mexico. However, growth was present, although slower, in both its largest markets in the US and its Europe, Middle East, Africa and Asia region. Notably cement volumes in the Philippines grew by 7% and that’s even with the devastation caused by typhoons at the end of the year taken into account. Similarly, Buzzi Unicem performed well in 2021 due to growth in Italy, the US and Eastern Europe compensating for a small sales decline in Germany. As mentioned in Update on Ukraine, February 2022 Buzzi Unicem has particular exposure to the war in Ukraine as it operates two cement plants in Ukraine and two units in Russia but this is a problem for the 2022 financial year.

To finish on Ukraine, first and foremost, a human tragedy is unfolding. Yet the war also presents many economic challenges to financial markets through sanctions and counter-actions. A recession in Russia looks likely as do energy price surges in the US and Europe leading to further inflation and, perhaps, recessions too. All this potentially lies ahead. For now, the dilemma for US and European-based cement companies and suppliers with operations in Russia is reputational. Should they continue to do business in Russia as public opinion hardens and companies like BP, Shell, Equinor, HSBC and AerCap head for the exit? The Russian government has blocked foreign companies and individuals from selling shares locally but pressure looks set to intensify for such companies to do something.

Published in Analysis
Read more...

CRH develops contingency plans in Ukraine crisis

02 March 2022

Ukraine/Ireland: CRH says that it is monitoring the on-going Ukrainian invasion crisis as it impacts its employees, assets and the continuity of its operations in the country. The Irish Times newspaper has reported that the company has developed contingency plans, which it will deploy as necessary.

CRH’s Cemark subsidiary employs 800 people in Ukraine, where it has operated since 1999.

Published in Global Cement News
Read more...
  • Start
  • Prev
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • Next
  • End
Page 2 of 30
“AI
“Loesche
“Airscape
Acquisition Cemex China CO2 concrete coronavirus Export France Germany Government grinding plant HeidelbergCement Holcim Import India Lafarge LafargeHolcim Mexico Nigeria Pakistan Plant Product Production Results Russia Sales Sustainability UK Upgrade US
« August 2022 »
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31        



Sign up for FREE to Global Cement Weekly
Global Cement LinkedIn
Global Cement Facebook
Global Cement Twitter
  • Home
  • News
  • Conferences
  • Magazine
  • Directory
  • Reports
  • Members
  • Live
  • Login
  • Advertise
  • Knowledge Base
  • Alternative Fuels
  • Services
  • Jobs
  • Privacy & Cookie Policy
  • About
  • Register
  • Trial subscription
  • Contact
  • Conferences & Webinars >>
  • Global Ash
  • Global CemBoards
  • Global CemCCUS
  • Global CemEnergy
  • Global CemFuels
  • Global CemPower
  • Global CemProcess
  • Global CemProducer
  • Global Cement Quality Control
  • Global CemTrans
  • Global ConChems
  • Global Concrete
  • Global FutureCem
  • Global Gypsum
  • Global GypSupply
  • Global Insulation
  • Global Slag
  • Global Synthetic Gypsum
  • Global Well Cem
  • African Cement
  • Asian Cement
  • American Cement
  • European Cement
  • Middle Eastern Cement
  • Magazine >>
  • Latest issue
  • Articles
  • Editorial programme
  • Contributors
  • Link
  • Awards
  • Back issues
  • Subscribe
  • Photography
  • Register for free copies
  • The Last Word
  • Websites >>
  • Global Gypsum
  • Global Slag
  • Global CemFuels
  • Global Concrete
  • Global Insulation
  • Pro Global Media
  • PRoIDS Online
  • Social >>
  • LinkedIn
  • Facebook
  • Twitter

© 2022 Pro Global Media Ltd. All rights reserved.