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There’s no single theme this week, just a few news stories of note that may have wider significance.

Firstly comes the news that Semen Indonesia subsidiary Semen Padang has been exporting 25,000t of cement to Australia. This follows a consignment of 35,000t of clinker to Bangladesh. The company is hoping to hit a cement and clinker export target of 1.58Mt in 2020 in spite of the on-going coronavirus pandemic. It reached 1.09Mt (about 70%) of this by mid-September 2020 through exports to Bangladesh, Myanmar, Philippines, Australia, Sri Lanka and Maldives.

The wider picture here is that local sales in Indonesia fell by 7.7% year-on-year to 27.2Mt in the first half of 2020 from 29.4Mt in the same period in 2019, according to data from the Indonesian Cement Association (ASI). Cement and clinker exports are up by 32.8% to 3.7Mt from 2.8Mt. Semen Indonesia’s revenue is down but it has managed to hold its earnings up so far. During press rounds in late August 2020 its marketing and supply chain director, Adi Munandir, told local press that he expected domestic demand to fall by up to 15% in 2020 due to effects of coronavirus on private construction and government infrastructure plans. Analysts reckon that the worst of the demand slump hit in the second quarter of 2020 when government-related coronavirus restrictions were implemented, so Semen Indonesia’s third quarter results will closely scrutinised.

One of Semen Padang export targets is the Maldives. This chimes with another story this week because Oman-based Raysut Cement has just bought a majority stake in a cement terminal from Lafarge Maldives for US$8m. The 9000t capacity Thilafusi cement terminal is located on the island of Thilafusi, Kaafu and was expanded in 2015. Raysut Cement has tended to stick to markets in the southern Arabian Peninsula and the east coast of Africa, with projects planned in Madagascar and Somaliland. Yet expansion plans in places further away such as India and Georgia have also been mentioned publicly. A greater presence in the Maldives is a solid step towards Raysut heading eastwards. This would also mirror the plans of the country’s gypsum sector to dominate African and Asian markets and a general longer term shift in global markets from west to east.

One place west that has been doing well in cement though is Brazil. National Cement Industry Union (SNIC) data for September 2020 show a 21% year-on-year boom in cement sales to 5.8Mt and a 9.4% year-on-year increase to 44.6Mt for the first nine months of 2020. Earlier in the year the country’s limited coronavirus suppression methods were attributed for letting the recovering cement sector grow. Now, SNIC has directly thanked government support for civil construction. However, Paulo Camillo Penna, the president of SNIC said. “The results are surprising so far, but that doesn't give us security in the long run,” due to a bubble of real estate and commercial activity that already appears to be declining. Given the slump in cement demand from 2015 to 2018 it’s understandable that SNIC is taking the recovery cautiously.

And to finish we have two connected stories about Cemex. Following the release of its resilience strategy in September 2020, the company has now declared that its integrated Rüdersdorf cement plant in Germany will be the centrepiece of its CO2 reduction plans as part of ‘Vision Rüdersdorf.’ Details are light at present but we expect some kind of carbon capture and storage or usage project. An addendum to this – or perhaps it’s the other way round (!) – is that Cemex has also just announced further credit amendments but with sustainability-linked metrics. Cemex’s chief financial officer (CFO) Maher Al-Haffar said, “We are especially proud that this transaction represents one of the largest sustainability-linked loans in the world.” The teeth of this arrangement remain to be seen but the integration of finance and sustainability has serious implications generally.

Watch out for a research and development themed interview with Cemex and Synhelion in the December 2020 issue of Global Cement Magazine

Turkey: The Turkish Cement Manufacturers’ Association (TÇMB) has appointed Volkan Bozay as its chief executive officer (CEO). Outgoing CEO Ismail Bulut will continue his activities as an advisor to the chairman of the board of directors.

Bozay has held a mixture of public and private sector jobs during his career including a role at the R&D Unit of Undersecretariat of Treasury and Foreign Trade, head of the Finance Department of the Housing Development Administration of Turkey (TOKI) and as a board member of the Emlak Konut Real Estate Investment Company. He also worked as the Assistant General Manager at the General Directorate of Promotions of the Ministry of Culture and Tourism and has worked as a Corporate Relations Manager at British American Tobacco, Turkey.

Bozay holds a Master of Business Administration (MBA) on finance and strategy from the Peter F Drucker School of Management at Claremont Graduate University, US and has a BA degree in Business Administration from the Middle East Technical University (METU) in Ankara. He has also served as a board member for the Turkish Exporters’ Assembly and the National Association of Tobacco Products Manufacturers at Aegean Exporters' Association (EIB).

Australia: Boral has appointed Tino La Spina as its Chief Finance & Strategy Officer. He succeeds Rosaline Ng, who will work with La Spina during a transition period and then leave Boral in early 2021.

La Spina is a qualified chartered accountant whose early career was in taxation and audit functions and who has spent the past 25 years in finance, strategy and leadership roles primarily in the airline industry. In 2019 Tino was appointed as the chief executive officer (CEO) of Qantas International, before leaving Qantas in August 2020 due to coronavirus-related industry disruption. He held a variety of strategy and financial roles before being appointed Group Chief Financial Officer in 2014. Prior to joining Qantas in 2006, he spent five years as Finance Director and Deputy CEO of the National Express Group and five years with Ansett.

He has a Bachelor of Business (Accounting) from Swinburne University in Melbourne, a Graduate Diploma Investment & Finance from the Australian Securities Institute and is a Member of the Institute of Chartered Accountants.

Mexico: Cemex says that it has agreed upon an amendment to its facilities agreement to extend US$1.1bn of term loan maturities to 2025 from 2022, and US$1.1bn of commitments under the revolving credit facility to 2023 from 2022. It says that the sustainability criteria incorporated into the interest rates of the facilities agreement, now worth US$3.2bn, make it ‘one of the largest sustainability-linked loans in the world.’ The company adds that it will prepay US$530m to institutions participating in the extension, corresponding to the July 2021 amortisation under the facilities agreement, and extending its debt maturity profile through to July 2023.

The group has also decided to redenominate its debt away from the US dollar. US$313m of exposure under the term loans that are part of the facilities agreement will convert to Mexican Pesos and US$82m will convert to Euros.

Brazil: Cement sales rose by 21% year-on-year to 5.8Mt in September 2020 from 4.8Mt in September 2019. Data from the National Cement Industry Union (SNIC) shows that sales increased by 9.4% year-on-year to 44.6Mt in the first nine months of 2020 from 40.8Mt in the same period in 2019. Particular gains for the year to date were noted in the North-East and Central-West regions. SNIC has attributed the sales growth to government support for civil construction.

“The results are surprising so far, but that doesn't give us security in the long run,” said Paulo Camillo Penna, president of SNIC. “Sales are being sustained, in the great majority, by real estate construction, the maintenance of the pace of works and small residential reforms and also in the commercial activity that already presents a decline in consumption due to its operation,” However he also noted that activity had been, “subjected to a huge and unexpected pressure of demand, especially since June 2020.” As such SNIC has called for resumption of infrastructure work to stabilise demand.

South Africa: PPC recorded sales of US$618m in the 2020 financial year, which ended 31 March 2020, down by 2.4% year-on-year from US$634m in the 2019 financial year. Earnings before interest, taxation, depreciation and amortisation fell by 17% to US$97.0m from US$118m.

Chief executive officer (CEO) Roland van Wijnen said, “The 2020 financial year was characterised by difficult trading conditions, especially in South Africa. The global Covid-19 pandemic, which emerged during the last month of the financial year, further exacerbated an already difficult trading cycle. While we have seen a decline in our financial performance, we also see that the actions we have taken to reposition PPC to deliver sustainable value for all our stakeholders are beginning to yield results.”

He added, “After the resumption of trading in the 2021 financial year, the performance across all of our core businesses has been encouraging. The group’s capital restructuring remains a key priority. Over the next nine months, we will take the strategic and operational actions needed to improve the group’s financial position and performance. It is encouraging to see how PPC employees have come together to drive performance to sustain our purpose to empower people to experience a better quality of life.”

Germany: Cemex Zement has announced the start of carbon-neutral building materials development at its 1.9Mt/yr Rüdersdorf, Brandenburg cement plant. Called Vision Rüdersdorf, the project consists of, “the comprehensive investigation of various approaches to breakthrough technologies in order to prevent process-related carbon dioxide (CO₂) from entering the atmosphere, but to use it for beneficial purposes. The investigation areas can be divided into capture, storage or use of CO₂. This will help towards Cemex’s target of 55% CO₂ emissions reduction across Europe by 2030 and its commitment to deliver carbon-neutral concrete by 2050.

Chief executive officer (CEO) Rüdiger Kuhn said, “For years, sustainable success has been achieved here in the reduction of fossil fuels and in the selection of alternative recipe ingredients for cement. The experienced team is always looking for possible improvements. When it came to determining the best possible CO₂ emission values, the Rüdersdorf plant was always at the forefront of the European cement industry and has thus also earned an excellent reputation in the global Cemex organisation.”

In order to realise Vision Rüdersdorf, the producer has partnered with companies from other industries. Managing director and plant manager Stefan Schmorleiz said, “In an interesting approach, the CO₂ that we capture is used as a raw material for downstream processes in the chemical industry. Another approach is to innovate in the storage of CO₂. With these efforts, and our commitment to review and invest in these technologies, Cemex Zement is making a contribution to the decarbonisation of the cement industry.”

Bangladesh: Production at Premier Cement’s new plants at Narayanganj and Chattogram has been delayed until November 2020 due to the coronavirus pandemic. Mohammed Amirul Haque, managing director of the cement producer, said that the projects have been delayed due to the absence of some technical personnel from China and Denmark, according to the Daily Star newspaper. The units were originally scheduled to start commercial production in June 2020 but this is now expected to start in December 2020. Both plants have a combined budget of around US$150m. Denmark-based FLSmidth was reported to be supplying mills for the plants.

Maldives: Lafarge Maldives has rebranded to Raysut Maldives Cement following its 75% acquisition by Oman-based Raysut Cement. State Trading Organization retains its 25% stake in the joint venture, which operates the 75,000t/yr-capacity Thilafushi Island cement terminal. The company says that it plans to expand the terminal’s capacity by 167% to 0.2Mt/yr by 2022.

Raysut Cement group chief executive officer Joey Ghose said, “Our foray into the Maldives will help drive self-sufficiency of cement in Maldives, which currently is predominantly an import market. Raysut is looking at adding local value in the Maldives by installing production facilities to ensure there is at least 40% local content. This will also make the market more competitive from a price point of view, which will have a positive impact on infrastructure development in the country.”

India: Naveen Patnaik, the chief minister of Odisha, has attended the inauguration of Ramco Cement’s new cement grinding plant at Haridaspur. The unit had a cost of just under US$100m and has created 105 direct jobs. A LM 46.2+2 CS type vertical roller mill with a capacity of 3750kW has ordered from Germany-based Loesche in 2018 for the project. The cement producer says that the plant is designed to be ‘totally dust free,’ including bag filters designed to ensure emission levels below 30mg/m³.