Displaying items by tag: CSN

We return to Brazil this week where Cimento Itambé has inaugurated a new kiln at its plant in Balsa Nova, Parana. The US$92m investment has added 0.6Mt/yr of cement production capacity to the unit, bringing its total to 3Mt/yr. Notably, the new kiln is intended to support the use of alternative fuels (AF) such as biomass and industrial waste. Local press reports that the new kiln can operate with a 50% AF thermal substitution rate (TSR) and in tests it has reached as high as 67%.

Local market leader Votorantim Cimentos has also embarked on an upgrade programme linked to increasing co-processing rates. In May 2025 it said that it had received and begun installing a new cement mill, supplied from China, at its Salto de Pirapora plant near São Paulo. Earlier in August 2025 it revealed that it was spending US$60m on upgrades at its Nobres and Cuiabá plants in Mato Grosso. A new cement grinding mill is to be installed at the Nobres plant. This should increase the site’s cement production capacity to 1.2Mt/yr from 0.6Mt/yr. At Cuiabá the company is installing a tyre shredding unit via its Verdura subsidiary to support increased rates of co-processing of AF. Work on these projects is set to start in 2025 with completion scheduled by the end of 2026.

These schemes are part of the group’s larger US$920m upgrade investment plans across the country. Announced in early 2024, this is intended to increase competitiveness and co-processing capacity and reduce CO₂ emissions. It will also add 3Mt/yr to the company’s production capacity. An investment of US$150m from the International Finance Corporation (IFC) in 2023 to Votorantim to support the uptake of AF is likely to have helped the decision to upgrade. The company currently has a target of a 50% TSR by 2030.

Of the other major producers, CSN is also aiming for a 50% TSR by 2030. It said in its 2024 sustainability report that all of its kilns were capable of processing AF. It also highlighted upgrade work at its Alhandra, Paraíba, plant in 2024 to handle, store and transport fuels, including biomass. InterCement reported some relatively high TSRs at individual plants in Brazil in 2023. For example, its Ijaci plant in Minas Gerais reportedly had a rate of 42%.

National Cement Industry Union (SNIC) data shows that the co-processing rate of AF reached 32% in 2023. The union says that this puts the sector ahead of its next target of 30% in the mid-2020s. The next one is to reach 35% by 2030. For reference, back in 2019 the country’s Cement Technology Roadmap reported that around 60% of cement kilns in the country were licensed by environmental agencies to co-process waste.

Graph 1: Sales of cement in Brazil, 2017 - 2025. Source: SNIC.

Looking at the domestic industry in general, SNIC reported growth in 2024 and the first seven months of 2025. Sales for the first seven months of the year grew by 4% year-on-year to 38.2Mt. This has been attributed to the real estate sector, boosted by the Minha Casa Minha Vida housing programme, and an expanding job market. Yet jitters remain, with fears of an economic slowdown in the second half of 2025 and uncertainty on how new US tariffs might affect the cement industry indirectly. Despite only exporting around 65,000t of cement in 2024 though, the association is wary of any indirect effects of tariffs.

It’s no surprise that cement plants in Brazil are prioritising AF usage. The market is buoyant and co-processing offers one of the cheapest routes to decarbonising cement production in the short-to-medium term. Increasing the use of AF can also potentially hedge against the cost of imported conventional fuels, such as coke, that are priced in US dollars. This is one example of SNIC’s concern over indirect effects on the cement industry from US tariffs via currency volatility. Expect AF rates to carry on rising.

The 18th Global CemFuels Conference & Exhibition on alternative fuels for cement and lime will take place on 17 - 18 September 2025 in Milan, Italy

It’s been a strong start to 2025 for the Brazilian cement sector. The National Cement Industry Union (SNIC) reported recently that cement sales in the first quarter of 2025 have been the strongest since 2015. Producers sold 15.6Mt in the three month period, a rise of 5.9% year-on-year from 14.7Mt in the same period in 2024.

The result has been attributed to a growing real estate market boosted by housing schemes such as the ongoing Minha Casa Minha Vida programme. SNIC also noted a growing labour market and wage increases, although sales from infrastructure projects failed to keep up. Unfortunately, SNIC is wary of whether the positive news will continue in the second half of 2025. Risks such as interest rates, growing general debt levels and the effects of any potential international trade wars all lie ahead.

Graph 1: Cement production in Brazil, 2017 - 2024. Production estimated for 2024 based on National Cement Industry Union (SNIC) preliminary data on sales. Source: SNIC.

Based on preliminary SNIC data from December 2024, the country likely had its best year in 2024 since the market peaked in the mid-2010s. Cement sales were reported to have risen by 3.9% to 64.7Mt in 2024. Consumption was 73Mt. An estimate of production based on the same rate of growth suggests that cement production may have grown to 69Mt in 2024 from 66.5Mt in 2023.

The three main cement companies - Votorantim Cimentos, InterCement and CSN - each reported domestic earnings growth in 2024. In Votorantim’s case net revenue in Brazil was flat in 2024 at US$1.39bn but its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 4% year-on-year to US$390m supported by higher prices, volumes and lower costs. InterCement has been in a debt resolution process since December 2024, which will be discussed below. Its sales volumes of cement were flat at 8.6Mt and sales revenue fell by 6.6% to US$557m. Yet, adjusted EBITDA rose by 10.2% to US$135m. CSN’s sales volumes of cement increased by 5.9% to 13.5Mt and its cement business sales revenue by 5.7% to US$810m. However, its adjusted EBITDA zoomed ahead by 39.5% to US$231m. The group attributed its higher sales volumes of cement to its strategy of focusing on logistics and distribution centres to target new markets, build market share and boost synergies.

As covered by Global Cement Weekly previously, InterCement has been trying to sell assets since at least the early 2010s. High debt levels have been a problem more recently and the company entered into judicial recovery, a court-led debt recovery process, in December 2024. How this process plays out should inform the nature of any subsequent divestment of assets. InterCement attempted to sell its subsidiary in Argentina, Loma Nega, to CSN in 2024. Unfortunately, this reportedly failed due to the appreciation of Loma Negra and due to disagreements between bondholders and shareholders of parent company Mover, according to the Valor Econômico newspaper. At home in Brazil, Buzzi, CSN, Huaxin Cement, Polimix, Vicat and Votorantim have all been linked to a potential sale of InterCement assets in a piecemeal fashion. Votorantim, in particular, is expected to face opposition from the local competition regulator CADE if it attempted to buy all of InterCement’s cement plants.

It’s positive to see the cement industry in Brazil starting to reach the sales levels last recorded in 2014. SNIC, understandably, isn't taking anything for granted. It’s warned of more modest growth in 2025, compared to the strong opening quarter, with levels forecast to be somewhere between 1 - 1.5%. It says that this will depend on the “evolution of the economy, monetary policy and investments in infrastructure and housing.” It has also warned of “uncertainties arising from the US.” The other big ‘if’ is whether InterCement can actually start selling cement plants in 2025. Time will tell.

Canada: Sustainable materials startup EnviCore has raised US$3m in its seed funding round led by CSN Inova Ventures (the corporate venture capital arm of Brazil’s Companhia Siderúrgica Nacional), Heidelberg Materials and others. The funding will scale up Envicore’s production of low-carbon supplementary cementitious materials (SCMs), like mining tailings, slag, shale and glass. The company’s technology reportedly reduces the carbon footprint of cement production by up to 30%, using recycled mineral feedstock, with the SCMs replacing up to 35% of Portland cement in concrete. Proceeds will expand EnviCore's production capacity and support new business development, operations and research and development efforts. Heidelberg Materials, together with EnviCore, will conduct a feasibility study for a pilot SCM production facility close to one of Heidelberg Materials’ recycling hubs.

CEO and co-founder Shahrukh Shamim said "This investment marks a pivotal moment in our journey to commercialise a game-changing technology in the cement industry. The support from CSN, Heidelberg Materials and other investors will allow us to scale up quickly and meet the growing demand for greener building solutions."

Brazil: Companhia Siderúrgica Nacional (CSN) will invest approximately US$530m to build a cement plant and a limestone plant in Itaperuçu, Curitiba. Noticias Financieras News has reported that the project is set to begin construction in 2025 and will create 3000 jobs. The cement plant will receive about US$500m, covering 150 hectares with an additional 70 hectares for mining.

Currently, the company is obtaining environmental licences from the Water and Land Institute and will be supported by the government when construction starts in 2025. The initiative benefits from tax incentives under the Paraná Competitivo programme, which provides a tax reduction for companies and industries that want to invest in the state, aligning with efforts to boost local employment and economic growth.

Argentina: InterCement, the Brazilian group owning Loma Negra, has extended an exclusivity period with Companhia Siderúrgica Nacional (CSN) until 12 August 2024 to finalise the sale of its assets. Despite no firm commitment to sell, this move sidelines local investor Marcelo Mindlin's bid.

InterCement said in a statement "There is no signed document that generates any firm obligation or commitment on its part, its shareholder, and/or its subsidiaries in connection with the potential transaction."

According to CE Noticias Financieras, InterCement is under financial strain with debts of US$1.6bn. It is continuing to negotiate with creditors and strategise asset divestments.

Argentina: Loma Negra reported a substantial 27% year-on-year drop in sales to US$123m and a 34% reduction in adjusted earnings before interest, depreciation and amortisation (EBITDA) to US$42m in the first quarter of 2024, impacted by declining cement volumes. This financial report coincides with its parent company InterCement's discussions to sell Loma Negra's operations in Brazil and Argentina to Compañía Siderúrgica Nacional. Although lower demand affected cement dispatch, it was also particularly affected by the political transition and economic environment, as well as adverse weather conditions in March 2024.

CEO Sergio Faifman said "The stabilisation plan being implemented by the new government after the strong devaluation in December has made rapid progress by significantly reducing inflation and achieving a fiscal surplus, but economic activity is still in negative territory, affecting the construction industry."

Brazil: InterCement, part of the Camargo Correa Group, has now signed an exclusivity contract with Companhia Siderúrgica Nacional (CSN). CSN is interested in acquiring its operations in Brazil and Argentina. The contract is effective until 12 July 2024 and is part of efforts to address the company’s debt, which the market estimates at over US$1.5bn. The contract also involves the potential purchase of shares representing 100% of its capital. The value of the transaction is part of current negotiations, but it is reportedly valued at around US$700m, according to CE Noticias Financieras News.

InterCement operates plants in Argentina, Brazil, Paraguay and Egypt, as part of Camargo Correa's cement business divestment plan. Previously, in June 2023, InterCement divested its subsidiaries in Mozambique and South Africa.

Brazil: Companhia Siderúrgica Nacional (CSN), Votorantim Cimentos and China-based Huaxin Cement have all submitted ‘virtually’ identical bids for InterCement's assets in Brazil. Valor International News has reported that Huaxin Cement may be the bidder that best 'pleases' InterCement. As a would-be market newcomer, its acquisition of the business would not require investigation by the Administrative Council for Economic Defence (CADE).

For rival bidder CSN, growth in Brazil would shape its planned initial public offering of its local cement subsidiary CSN Cimentos later in 2024. The group reportedly plans to appoint current CFO Marcelo Ribeiro as CEO of CSN Cimentos.

InterCement confirmed this week that it is accepting bids for its sale. The local financial press had been covering InterCement’s progress towards this since the autumn when it was reported that it appointed BTG Pactual to manage the sale.

The Valor Econômico newspaper then revealed this week that Companhia Siderúrgica Nacional (CSN), Votorantim and China-based Huaxin Cement had all submitted bids. InterCement admitted that it had received offers but didn’t say from who, and pointed out that no deal had been signed yet. Valor said that Votorantim was part of a consortium including Polimix (parent company of Mizu Cimentos) and Buzzi. However, Votorantim issued a statement affirming its involvement but pointing out that it was acting alone and not part of a consortium. Finally, Valor reported that InterCement is looking to raise at least US$1.2bn from the sale of its business in Brazil. In Argentina, Loma Negra confirmed what its parent company, InterCement, was doing. La Nación newspaper also reckoned that the parent company might be looking for over US$700m for the subsidiary.

Rumours that InterCement was looking to sell assets have swirled around since the early 2010s when InterCement picked up the Brazil-based assets of Cimpor and Votorantim bought the international ones. The local market then collapsed giving InterCement a hard time, although when it started to rally in the late 2010s the talk turned to a potential initial public offering. More recently the focus has been on InterCement’s high level of debt and pending maturation dates. It publicly said it was working towards a new capital structure in May 2023 and various debt negotiations followed. By the end of the third quarter of 2023 it reported debts in debentures and senior notes of just under US$1.6bn. It signed a deal to sell its subsidiary in Egypt in January 2023 to an unspecified buyer and then divested its operations in Mozambique and South Africa to Huaxin Cement for just over US$230m in December 2023.

It is noteworthy that InterCement has gone public about its divestment intentions now, given previous coverage in the local press and the poor state of its finances in 2023. In November 2023, for example, Valor reported that CSN had hired Morgan Stanley to represent it in a dispute over the sale. At this time Huaxin Cement plus Titan, Buzzi, Polimix and Vicat were all said to be interested. CSN was also said to be waiting until the results of the presidential election in Argentina first before committing to any deal. Yet InterCement said nothing about what was going on at this time.

The other issue is whether InterCement wants to sell its assets in one big piece or in sections. This would be of particular interest to Votorantim, and CSN to a lesser extent, since they control 30% and 20% of the cement market respectively, according to Valor. Data based on cement production capacity data from the Global Cement Directory makes the gap between the two companies wider since Votorantim holds 46% compared to CSN’s 9%. The point here is that the local competition regulator, the Administrative Court of the Brazilian Administrative Council of Economic Defence (CADE), would be more likely to intervene if it determined that one company might be about to distort the market. Clearly this could happen if Votorantim struck a deal to buy InterCement but there might also be issues regionally with CSN or indeed some of the other local cement producers. Alternatively, Votorantim might be interested in buying Loma Negra instead. All InterCement has said on the matter is that it is “evaluating strategic alternatives, such as private placement, merger, or partnership with a strategic player, or even a potential divestment.”

Any potential sales of InterCement would be the biggest adjustment to the Brazilian cement sector since CSN bought Holcim Brazil for just over US$1bn in mid-2022. There appear to be plenty of potential vendors for both the businesses in Brazil and Argentina but whether InterCement sells its assets in one big lump or in separate pieces may be an issue almost as important as the price, given the competition concerns. Finally, could this be the first major China-based acquisition in the cement sector in South America? Huaxin Cement demonstrated willingness to buy plants from InterCement in Africa in 2023 and it has been linked in the current auction. Unlike previous talk of InterCement selling up, this time it seems serious given the divestments in Africa and the scale of the debt. An outcome seems likely in the coming months.

Brazil: Holcim has closed the sale of its business in Brazil to Companhia Siderúrgica Nacional (CSN) for an enterprise value of US$1.025bn. The deal was closed following approvals from the Brazilian authorities. This transaction includes Holcim’s five integrated cement plants, four grinding units, six aggregates sites and 19 ready-mix concrete facilities.

Holcim said that Latin America remains a core strategic growth region for the group. In the first half of 2022 it completed a new cement production line in El Salvador and significantly expanded its aggregates operations in El Salvador, Ecuador and Colombia. The company also continued to expand its Disensa retail network across the region with over 2000 stores now open across eight countries.