Displaying items by tag: Cementir Holding

Italy: Cementir Holding recorded sales of €368m in the first quarter of 2025, in line with those in the first quarter of 2024. Earnings before interest, taxation, depreciation and amortisation (EBITDA) also remained level year-on-year at €66.4m. Operating costs totalled €302m, down by 2%. Cement and clinker sales dropped by 6%, with local declines in China, Egypt, Malaysia and Türkiye. The group reported the main driver of the decline as an export ban on Israel, affecting its Turkish operations. Net profit in the quarter was €30.3m, down by 48% year-on-year.

Cementir Holding confirmed its full-year targets of €1.75bn in sales and €415m in earnings, saying “The macroeconomic scenario remains characterised by uncertainty, exacerbated by the recent protectionist measures taken by the US administration, which could affect the growth rate of the global economy later this year. Overall, the results for the first quarter of 2025 were in line with management expectations.”

Denmark: Cementir Holding subsidiary Aalborg Portland Cement has awarded Christian Pfeiffer an engineering, procurement and construction (EPC) contract for the installation of a QDK-T 250-Z high-efficiency separator for Cement Mills 8 and 9 at its Rørdal plant. The equipment will integrate both mills into a shared separator system, in order to increase their total capacity and facilitate the production of new cements. The upgrade also includes the installation of a single replacement bucket elevator, two air slides with integrated flow impact meters and a bag filter system. Commissioning is scheduled for 2026.

Christian Pfeiffer’s Product Line Manager Cement, Juan Camilo Vanegas Aguirre, said “This was the first EPC offer jointly prepared by our team in Chennai, and reaching this agreement after two years of collaboration is a real achievement.”

Italy: Cementir reported revenues of €368m in the first quarter of 2025, down slightly from 2024. The company said this was despite the reduction in sales volumes in many regions and negative currency exchange effects in Egypt and Türkiye. Earnings before interest, taxation, depreciation and amortisation (EBITDA) also fell slightly to €66.4m from €66.5m. Profit before tax dropped by 48% year-on-year to €30.3m from €56.7m previously.

Cement and clinker sales declined by 6% to 2.24Mt, due to the Turkish government’s ban on exports to Israel active from the second quarter of 2024, as well as the general decline in the ‘main geographical areas’, with the exception of Malaysia, Egypt and China. Ready-mixed concrete volumes rose by 2%, while aggregates remained stable.

Chair and CEO Francesco Caltagirone said “Notwithstanding a modest reduction in cement sales volumes, group revenues for the first quarter of 2025 are in line with the same period of last year, as is EBITDA, which at constant exchange rates would instead have grown by 7.5% over 2024. Despite the current phase of significant geopolitical and trade uncertainty, we are keeping our industrial targets unchanged and continue on our decarbonisation path.”

Denmark: Air Liquide and Cementir Holding, via its Danish subsidiary Aalborg Portland, have signed the European Innovation Fund grant agreement for the ACCSION project at the Aalborg cement plant. The project aims to reduce the plant’s CO₂ emissions by 1.5Mt/yr, with the captured CO₂ transported via pipeline to onshore CO₂ storage facilities.

The value of the Innovation Fund grant is €220m, fully financed by the EU Emissions Trading System.

Italy: Cementir recorded a 0.4% year-on-year decrease in sales revenue to €1.687bn from €1.694bn in 2023. This was reportedly widespread across all geographical areas except Türkiye and Sweden, driven by lower volumes in some regions and the depreciation of the Turkish Lira and Egyptian Pound. Group earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 0.9% to €407m from €411m in 2023. Net profit rose by 0.1% to €201.6m from €201.4m. The group sold 10.72Mt of grey and white cement and clinker in 2024, up by 0.5% year-on-year from 10.67Mt in 2023. According to the group’s financial report, this was due to good trading in Türkiye and to a lesser extent in the US and Egypt, which offset the volumes reduction in other areas.

Francesco Caltagirone, chair and CEO, said “2024 has been another satisfactory year for our group, which demonstrated remarkable resilience despite the complex geopolitical and macroeconomic backdrop. We are preparing to face the next three years with a strengthened industrial footprint, thanks to the upgraded Kiln 4 in Belgium, the second production line in Egypt, and the opportunity to completely decarbonise our Aalborg plant by 2030 with a limited investment. We look forward to the challenges ahead with renewed confidence.”

Europe: 77 decarbonisation projects (including 14 for the cement sector) have signed grant agreements under the Innovation Fund 2023 Call (IF23), following the announcement of results in October 2024. The cement projects, spanning nine European countries, will begin operations between 2025 and 2029.

The funding, sourced from the EU Emissions Trading System, provides grants ranging from €4.4m to €234m, supporting projects expected to avoid 118Mt of CO₂. The total 77 projects funded have the potential to reduce emissions by around 398Mt of CO₂ equivalent over their first 10 years of operation. The projects funded in the cement industry mostly involve carbon capture and storage (CCS). Among the selected CCS projects are Carbon2Business in Germany, Olympus in Greece, Go4Zero in Belgium and Cementir’s Accsion project in Denmark.

Italy: Cementir Holding recorded cement and clinker sales volumes growth of 0.5% year-on-year in 2024, to 10.7Mt. Revenue fell by 0.4% year-on-year to €1.69bn, while earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 1% year-on-year to €407m. Profit before tax fell by 2% to €285m. The producer targets an increase in revenue to €2bn and EBITDA to €465m by 2027.

Francesco Caltagirone, chair and CEO, said “2024 has been another satisfactory year for our group, which demonstrated remarkable resilience despite the complex geopolitical and macroeconomic backdrop. We are preparing to face the next three years with a strengthened industrial footprint, thanks to: the upgraded Kiln 4 in Belgium, which will enhance efficiency through increased alternative fuels usage; the second production line in Egypt, now fully operational and able to generate additional export revenue; and the opportunity to completely decarbonise our Aalborg plant by 2030 with a limited investment. We look forward to the challenges ahead with renewed confidence.”

Italy: Cementir Holding has blamed a fall in earnings in the first nine months of 2024 on “lower results achieved in all geographical areas except Egypt.” It added that sales had fallen due to a decrease in volumes in some places and negative currency effects in Türkiye and Egypt. The group’s revenue fell by 5% year-on-year to €1.24bn in the first nine months of 2024, from €1.30bn in the same period in 2023. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 9% to €296m from €326m. Sales volumes of cement and clinker remained stable at 7.98Mt. It noted that volumes increases were reported in Türkiye and, to a lesser extent, in Malaysia and the US. However, volumes of ready-mixed concrete rose by 5% to 3.33Mm³ from 3.18Mm³.

Francesco Caltagirone Jr, chair and CEO, said “The results for the first nine months of 2024 are in line with our expectations and, after several quarters of contraction, signs of a market turnaround in some geographies are emerging in the third quarter of 2024. We are strengthening our competitive position through initiatives such as: the investment on Kiln 4 in Belgium, the restart of the second line in Egypt, the acquisition in concrete in Nordic & Baltic, a new limestone quarry in Malaysia, and the repurchase of a large part of the minority interest in our Egyptian subsidiary, to prepare ourselves for any upcoming market opportunities”.

Energy has been the theme for a couple of cement news stories of note from Egypt this week. The first concerns the government’s impending plan to centralise distribution of mazut (heavy fuel oil) to cement plants to help them cope with ongoing power shortages. Earlier in the week Cemex signed a deal with the Assiut Governorate to operate a second municipal solid refuse processing unit in the country. The company’s first Regenera facility, in Mahala, started operations in May 2024. Another story from mid-September 2024, along the same theme, covered the inauguration of an 18MW waste heat recovery (WHR) unit at Heidelberg Materials Egypt's Helwan Cement plant.

The wider story is that the country has faced so-called load shedding, or power rationing, since mid-2023 due to falling gas production, rising energy demand and negative currency exchange effects making it harder to buy fuel imports. The power cuts were extended in duration in July 2024 due to a heat wave. The government then said in late September 2024 that it is making investments to prevent domestic power cuts in 2025.

The cement stories mentioned above show some of the ways cement companies cut their energy costs. Two potential ways of doing this are to increase the use of alternative fuels (AF), such as municipal solid waste, or to install a WHR unit. Titan Cement, for example, reported AF thermal substitution rates of above 40% in Alexandria and above 30% in Beni Suef in the first half of 2024. The local press hasn’t reported power shortages amongst the country’s cement producers, but the plans to control the distribution of mazut suggest that either ‘something’ has happened or the government is trying to avoid ‘something.’ Readers may recall that producers have periodically faced step changes in power supplies over the years. In the mid-2010s, for example, lots of plants switched from heavy fuel oil and gas to coal. The energy price fluctuations following the start of the Russia - Ukraine war in 2022 then saw the price of coal rise.

However, what the foreign-owned producers have complained about in the first half of 2024 is the declining exchange rate of the Egyptian Pound. Cementir, Cemex and Titan Cement all noted this. However, Titan reckoned that International Monetary Fund and European Union investment had actually eased the economic situation in the first half of the year leading to an increase in the number of large construction projects.

One effect of the currency problems upon the cement market has been a focus on exports. At the start of September 2024 the Federation of Egyptian Industries said that national cement consumption in 2024 was expected to drop by 4% year-on-year to 45Mt. However, exports were projected to rise to 15Mt. The first and second most popular destinations so far in 2024 have been the Ivory Coast and Ghana. Yet, exports to Libya, the third biggest external market, may have had the biggest effect. These have been blamed for creating a shortage of trucks that was causing delays to the local construction sector. The round-journey from Egypt to Libya can take up to 12 days. This has left building sites bereft of raw material deliveries because all the trucks are elsewhere! Vicat acknowledged the growing importance of imports for its business in Egypt in its half-year report for 2024. It said that ‘sluggish’ domestic market conditions “were more than offset by growth in cement and clinker volumes for export to the Mediterranean and Africa regions.”

The wider picture of the cement sector in Egypt remains one of overcapacity with integrated capacity estimated above 70Mt/yr. The government introduced cement production quotas in mid-2021 and this stabilised prices (and profits). The recent state of the local economy may have strained this, but the latest round of external investment appears to have buoyed things for now. Although the effects of the Israeli military action in Lebanon may have unforeseen consequences upon neighbouring markets. In the meantime, cutting energy costs and growing exports offer two ways for producers to raise their profits.

Egypt: Cementir Holding’s Aalborg Portland Holding has acquired an additional 25% stake in Sinai White Portland Cement (SWCC) from Sinai Cement Company for approximately €30m. This represents Sinai Cement Company’s entire stake. Following this transaction, Cementir will indirectly hold 96.5% of SWCC’s share capital.