Displaying items by tag: GCC

Mexico: GCC recorded consolidated net sales of US$179m in the first quarter of 2021, down by 2% year-on-year. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 9% to US$49.5m. In Mexico cement sales volumes rose by 6% but in the US they fell by 7.7% due to poor oil well cement sales.

The company’s chief executive officer Enrique Escalante said, "GCC started 2021 with strong financial performance - increasing EBITDA, free cash flow and EBITDA margin. Our results reflect momentum in the industry and show early signs that we are entering into a new phase of the industry's cycle with a stronger demand for most of our products. Therefore, we will focus our efforts in producing cement to supply pent-up demand." Escalante continued "Our backlog and the overall market trends of our business are encouraging in the US and Mexico. Both countries are emerging from tough and uncertain times into brighter months ahead. Our focus continues on maximising production, improving plant reliability, and optimising our logistics network to take advantage of the pent-up demand we are experiencing."

Mexico: Shareholders of the former Grupo Cementos de Chihuahua have approved a name change at an exceptional general meeting. The company will now trade as GCC.

Chief financial officer Luis Arias said, "We changed the name to GCC to better reflect our 2025 vision: to be the best cement company in North America with the proper balance of people, profit and the planet. It unifies our brand in multiple countries, mirrors the stock ticker and reflects how the market best knows us." He continued, "I wish to thank our shareholders for supporting and approving our new corporate name; we are now an organisation with a new name and renewed vision."

Mexico: Nearly 500 cement and concrete plants in the northern Mexican states of Chihuahua, Coahuila, Nuevo León and Sonora have partly or fully suspended production due to an on-going regional shortage of natural gas. The El Financiero newspaper reports that plants run by Grupo Cementos Chihuahua (GCC), Cemex, Holcim and Cruz Azul operate in this region.

GCC said that a lack of electricity and natural gas had affected production at three of its plants in Chihuahua, Samalayuca and Juárez. Mexican Association of the Ready-mix Concrete Industry (AMIC) president Ana Laura Burciaga said that the situation has caused a 50% drop in the cement supply to concrete plants.

The cause of the shortage is reported to be the suspension of natural gas exports from Texas, US. Mexican steel and automotive manufacturers have also been affected.

Mexico: Grupo Cementos de Chihuahua (GCC) recorded earnings before interest, depreciation, taxation and amortisation (EBITDA) of US$308m, up by 6% year-on-year from US$292m. Net sales rose by under 1% to US$939m from US$934m. US cement volumes rose by 5%, excluding oil well cement, and rose by 3% in Mexico. The company said that its cost-and-expense reduction plan saved it US$24.3m throughout the year. During the second quarter of 2020 it signed a long-term agreement to secure wind power to meet 50% of the energy needs of its Rapid City cement plant.

Chief executive officer Enrique Escalante said, “GCC wrapped up 2020 with strong operational and financial results despite the challenges created by the Covid-19 pandemic. These positive results show GCC’s adaptability, resilience and what we can do in challenging times. We experienced a mixed demand for our products in Mexico and the US and, with the exception of oil-well cement, both markets outperformed expectations. GCC generated top-line growth, EBITDA, a strong free cash flow and margin expansion, benefitting from the successful execution of a comprehensive plan to reduce costs and expenses. 2020 was also a year of significant progress in GCC’s efforts to implement sustainability best practices. As a result, we reached our first major milestone by reducing net CO2 emissions by 9% from the 2005 levels.” He added, “Looking ahead, GCC entered 2021 even stronger than last year; even though the situation is still fluid and challenging, we are optimistic and we will operate with the same rigorous approach to continue creating value for all of our stakeholders: our shareholders, customers, employees and the communities where we operate.”

US: The Portland Cement Association (PCA) has announced the winners of the 2020 Safety Innovation Awards. The awards recognise ‘creative safety-enhancing projects in the cement industry’ across five categories.

Buzzi Unicem USA’s Joliet, Illinois cement terminal won the distribution award for its barge entry ladder, which reduced fall hazards associated with unloading cement from barges. Ash Grove Cement’s Durkee, Oregon cement plant won the general facility award for its burner pipes cart upgrade, which reduced safety hazards associated with moving cement kiln burner pipes. Further hazard reductions were made by Buzzi Unicem USA’s Chattanooga, Tennessee cement plant’s finish mill access platform and the Monarch Cement Company’s Humboldt, Kansas cement plant’s noise reduction upgrade, which jointly won the milling/grinding award. The pyroprocessing award went to GCC of America’s Pueblo, Colorado plant for its semi-automated clinker feeding system, while the quarry award went to Ash Grove Cement’s Louisville, Nebraska plant for its dump box hardened material extraction tool.

PCA president and chief executive officer (CEO) Michael Ireland said, “Our industry prioritises the safety of its employees above all else. We are proud of our members’ efforts to pursue excellence in safety innovation for their company and their colleagues.”

US: The Portland Cement Association has announced the winners of the Energy Environment Awards 2020. Cementos Argos’ 1.1Mt/yr Harleyville, South Carolina cement plant won the Energy Efficiency Award “by reducing kiln specific heat consumption and increasing the utilisation of the new vertical cement mill,” while CRH subsidiary Ash Grove Cement’s 1.0Mt/yr Midlothian cement plant won the Environmental Performance Award for “operating a whole-tyre burning system utilising a first-in-the-US hot disk system supplied with whole tyres from a nearby tyre recycling company.” Other winners were GCC’s 0.9Mt/yr Odessa, Texas cement plant for Innovation, LafargeHolcim’s 2.2Mt/yr Holly Hill, South Carolina plant for Land Stewardship, Titan Cement's Roanoke Cement Troutville plant for Outreach and HeidelbergCement subsidiary Lehigh Hanson’s 3.2Mt/yr Union Bridge, Maryland plant for Overall Environmental Excellence.

PCA president and chief executive officer (CEO) Michael Ireland said, “America’s cement manufacturers continue to focus on researching and developing new and innovative ways to reduce environmental footprint. The companies receiving these awards are great examples of our industry’s commitment to sustainability and energy efficiency.”

Mexico: Grupo Cementos de Chihuahua’s (GCC) net sales rose by 5% year-on-year to US$424m in the first half of 2020 from US$404m in the same period in 2019. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 16.4% to US$127m from US$109m. Its US cement and ready-mix concrete (RMC) sales volumes increased by 3.6% and 17.2% respectively. However, Mexican cement and RMC sales volumes fell by 7.2% and 23.7% respectively. Although most of GCC’s sales came from the US, it said that Mexican sales were affected by negative currency affects and the local coronavirus-related lockdown.

"Increased concrete and cement volumes in the US demonstrate the construction industry's tailwinds and resiliency on the back of improved weather conditions. EBITDA growth, free cash flow generation and margin expansion reflected the successful execution of a comprehensive plan to reduce costs and expenses,” said Enrique Escalante, GCC's chief executive officer (CEO). He added that since the company was seeing market conditions ‘deteriorate’ and high levels of uncertainty that the company expected ‘additional challenges in the quarters ahead.’ As such it hoped for, ‘further economic stimuli from the governments, including a sizable infrastructure bill.’

US: The Portland Cement Association (PCA) has announced the winners of its Chairman’s Safety Performance Award for outstanding safety performance in Portland cement production in the US.

The winners were: Cemex USA’s Clinchfield, Georgia and Victorville, California plants; Lehigh Hanson’s Cupertino, California and Tehachapi, California plants; Titan America’s Medley, Florida and Troutville, Virginia plants; LafargeHolcim’s Morgan, Utah and Theodore, Alabama plants; Buzzi Unicem’s Chattanooga, Tennessee plant; GCC of America’s Pueblo, Colorado plant; and Argos USA’s Atlanta, Georgia grinding plant.

PCA chair Tom Beck said, “We’re proud to highlight these top safety performers. Our industry is constantly focused on doing everything possible to assure our employees go home in the same condition as they arrived.”

US: Grupo Cementos de Chihuahua’s (GCC) Rapid City plant in South Dakota is working with Black Hills Energy to use wind power for around 50% of its electricity requirements. GCC has joined Black Hills Energy’s Renewable Ready Program, which will supply energy for 15 years.

Black Hills Energy will build a wind-power generating facility in 2020 to supply the plant located near Cheyenne in Wyoming. The Corriedale Wind Energy Project is anticipated to produce energy by the first quarter of 2021 that will be shared with subscribers in South Dakota and Wyoming. The program was designed for large commercial and industrial customers and governmental agencies in the company’s electric service territories in South Dakota and Wyoming.

“By choosing low-cost renewable energy resources to power our business, we’re able to advance our business goals and sustainability objectives while also supporting the expansion of affordable, renewable energy development in the region,” said Ron Henley, US division president of GCC.

Mexico: Group Cementos Chihuahua (GCC) reported a better-than-expected fourth quarter in 2019, due largely to record sales volumes in the US, its main market. A delay to the start of the construction season, an order book containing contracts for oil well cement and alternative energy projects and strong residential and infrastructure segments, boosted its cement sales volumes by 12.3%. Along with an increase of 2.9% in prices overall (4.8% rise in the US), this gave rise to sales figures 13.2% higher than in the fourth quarter of 2018.

"Our excellent operational execution and robust distribution network, supported by improved climate, once again contributed to record volumes in cement in the US, surpassing our estimates," said Enrique Escalante, GCC’s Managing Director.

In its domestic Mexican market, sales increased by 5.6% due to a mixture of higher prices and appreciation of the national currency. Industrial warehouse construction segments, mining projects and middle housing in border towns were factors for the rise.