
Displaying items by tag: GCW479
Buzzi builds in Brazil
28 October 2020Buzzi Unicem beefed up its presence in Brazil this week with the announcement that it is buying CRH’s local cement plants through its Companhia Nacional de Cimento (CNC) joint-venture with Grupo Ricardo Brennand. The deal covers CRH Brazil’s three integrated plants at Cantagalo in Rio de Janeiro, and, Arcos and Matozinhos in Minas Gerais. It also throws in two grinding plants including the Santa Luzia Plant in Minas Gerais for a total of US$218m, although the final figure may change depending on conditions such as the net financial situation at the closing date.
The purchase brings up two trends. Firstly, it’s a continuation of CRH’s refocus on safe havens in Europe and North America. The Ireland-based building materials producer originally picked up these plants in the wake of the formation of LafargeHolcim in 2015 as part of a package deal for Euro6.5bn in its ‘bolt-on’ acquisition expansion phase. Most of the assets in that deal were in Europe and North America, although it did see CRH also build a presence in the Philippines.
Since late 2019 reports have emerged in the press about plans to sell up in Brazil and the Philippines. Whether CRH has made any profit on its sale in Brazil is hard to tell given the scale of its purchases from Lafarge and Holcim in 2015. The focus was likely on those key markets closer to home. Yet cement sales in Brazil peaked in 2014 before the national economy were hit by falling commodity and oil prices that contributed to a recession as well as the Petrobras political crisis. Sales bottomed out in 2018 and have been building steam since. Now is certainly the time to consider departure with a good price given the National Cement Industry Union’s (SNIC) glowing data for September 2020.
For Buzzi Unicem, the proposed acquisition represents the next step on its multinational ambitions, pushing Brazil into its fifth biggest territory in terms of cement production capacity after Italy, the US, Mexico and Germany. Its timing was good in September 2018, when it agreed to buy a 50% stake in the Brazilian company BCPAR from Grupo Ricardo Brennand for Euro150m, because local sales were finally starting to pick up. Once again Buzzi Unicem has also picked up cement production assets for a capacity price just below US$100/t. This time it faces a similar balance of uncertainty with the Brazilian cement industry reporting continuing growth but facing an uncertain future from the economic effects, locally and worldwide, from the coronavirus pandemic.
One point to note here is that as part of its deal with Grupo Ricardo Brennand in 2018, Buzzi Unicem had the right to buy the remaining 50% of BCPAR from Grupo Ricardo Brennand until 1 January 2025. Presumably, though, the option to buy Grupo Ricardo Brennand out of BCPA remains valid. This makes it interesting that Buzzi Unicem chose further expansion over consolidation of its existing business. Four years remain for it to buy the rest of BCPAR if it wants to.
Given the concentration of the Brazilian business in the south-east of the country it seems unlikely that the acquisition would be turned down since the enlarged BCPAR will hold a production base behind larger producers like Votorantim or InterCement. However, Cimento Nacional’s Sete Lagoas plant and CRH Brazil’s Matozinhos plant are both close in Belo Horizonte and this may cause concerns. Now it’s over to the Brazilian regulators to approve or decline the deal and the various parties to finalise.
Ireland: Ecocem Group has appointed John Reddy as Group Quality and Innovation Application Manager. In the new role he will lead a growing technical team across Europe including Ireland, UK, Sweden, Benelux and France. He is tasked with developing the product pipeline for the group and assisting with product commercialisation across Europe.
Conor O’Riain, Group Managing Director said, “His undeniable commitment to Ecocem and the cement industry is unquestionable and this new role signifies the growth of Ecocem products across Europe. His appointment marks his advocacy to improving the standard of ground granulated blast-furnace slag (GGBS) cement production across the industry”.
Reddy joined Ecocem Ireland in 2004 and has worked for the group in various technical roles. He is a chartered engineer and is a graduate of Civil Engineering from the Dublin Institute of Technology (DIT) and holds an MSc in Advanced Concrete Technology from Queens University, Belfast. His master’s thesis ‘Investigating the thermal activation of GGBS concrete’ was published at the 9th International Concrete Conference and subsequently won the Irish Concrete Society, Sean DeCourcy student award in 2017.
Cemex reports 4% nine-month sales fall so far in 2020
28 October 2020Mexico: Cemex’s net sales in the first nine months of 2020 were US$9.43bn, down by 4% year-on-year from US$9.87bn in the corresponding period of 2019. Operating earnings before interest, taxation, depreciation and amortisation (EBITDA) was US$1.82bn, in line with the first nine months of 2019. Cement volumes fell by 2% to 46.2Mt from 47.2Mt. The group said that sales volumes increased in most regions in the third quarter of 2020 as economies began to reopen following the Covid-19 lockdown.
Fernando A González, the chief executive officer (CEO) of Cemex said, “We are pleased with our performance in the third quarter in which all regions participated in earnings recovery. Indeed, during the quarter, we experienced EBITDA recovery from the second quarter decline, due to Covid-19, as well as strong year-over-year growth. Operation Resilience played a key role in this performance.”
Grupo Cementos de Chihuahua increases nine-month earnings amid consistent sales levels
28 October 2020Mexico: Grupo Cementos de Chihuahua (GCC) recorded nine-month net sales of US$705m in 2020, down slightly from US$706 in the same period of 2019. Operating earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 10% to US$227m from US$206.
Chief executive officer (CEO) Enrique Escalante said, “We experienced mixed demand for our products in most of our markets in Mexico and the US, however both exceeded our expectations from the beginning of the Covid-19 pandemic. Looking forward, our backlog remains encouraging, while overall macro conditions show mixed signs, and short-term uncertainty prevails, mainly regarding Covid-19 outbreaks and weather. Therefore, our goal is to maintain our financial strength, keep people safe and employed, and to continue to serve GCC’s life blood - our invaluable customers.”
LafargeHolcim launches EcoLabel green cement and concrete brand
28 October 2020Switzerland: LafargeHolcim has announced the launch of EcoLabel, a brand to encapsulate its green cements and concretes. All products bearing the label must have either a 30% lower carbon dioxide (CO2) footprint compared to the local industry standard or use 20% recycled content. The company says that the reason behind EcoLabel is to “support builders in making greener choices” and to “accelerate the company’s Net Zero Journey.”
Chief sustainability officer Magali Anderson said, “I am very proud of how our company is turning our net zero pledge into action across more than 70 countries, with our broad range of green building solutions. The EcoLabel is a key milestone on this journey, confirming LafargeHolcim’s commitment to lead the way in sustainability and innovation.”
Cementownia Warta orders Aumund arched plate conveyor
28 October 2020Poland: Cementownia Warta has ordered a BPB-SF heavy-duty arched plate conveyor for the new limestone crushing facility at its Warta integrated cement plant from Germany-based Aumund. The supplier says that it will deliver the equipment before the end of 2020.
Aumund said that it has delivered “more than 20 machines” to the Warta plant since the producer placed its first order with the company in 1998. In 2020 it delivered five KZB pan conveyors of a total capacity of 2300t/hr as part of a project to construct a 120,000t steel-roofed concrete silo at the plant.
US: Green Business Certification Inc has awarded Titan America’s Pennsuco cement plant in Medley, Florida the TRUE Platinum zero waste certificate. TRUE, which stands for “Total Resource Use and Efficiency,” provides a ratings systems by which facilities can receive recognition for achieving zero waste goals. The Pennsuco plant, “repurposed office supplies and materials, composted organic waste and xeriscaped – the process of landscaping that reduces or eliminates the need for supplemental water from irrigation – among other major initiatives.” The plant is the first in the cement industry to achieve TRUE Platinum certification.
Environmental engineer Allyson Tombesi, who led the zero waste recertification, said, “It’s not just about receiving an award: being zero waste is about considering how we can minimise our impacts so that future generations have the opportunity to live in a sustainable environment. The programme was created with a goal to encourage our employees to lead a zero-waste lifestyle at both the plant and at home. Through programme participation, we hope to inspire our employees and our industry to take action that benefits the future of our planet.”
Construction of 3.5Mt/yr Duqm cement plant set to begin in Oman
27 October 2020Oman: Duqm Cement Projects International (DCPI) is set to begin construction of its new 3.5Mt/yr-capacity integrated cement plant at the port of Duqm. The Times of Oman newspaper has reported the value of the company’s investment in the plant as US$435m. DCPI said, “The economy of scales resulting from the envisaged capacity of 10,000t/day, coupled with the latest technology, would help us in achieving our aim of becoming one of the most efficient cement producers in the region.”
CRH to sell Brazilian business to Companhia Nacional de Cimento
27 October 2020Brazil: Ireland-based CRH has agreed to sell its Brazilian business to Companhia Nacional de Cimento (CNC), a joint venture between Italy-based Buzzi Unicem and Grupo Ricardo Brennand, for US$218m. The related assets include three integrated cement plants and two grinding plants. The sale is subject to approval by the Brazilian Competition Authority (CADE). CRH Brazil sold approximately 2.5Mt of cement in 2019.
In 2019 CRH sold its 50% stake in India-based My Home Industries for US$354m. Outside of Europe and North America it retains subsidiaries in the Philippines and China.
Lafarge Poland to upgrade Małogoszcz cement plant
27 October 2020Poland: Lafarge Poland has shared plans to modernise its 2Mt/yr Małogoszcz cement plant in Świętokrzyskie Voivodeship. The company says its planned investment of Euro100m will, “increase technical efficiency and minimise environmental impacts by reducing CO2 emissions by 20% and energy consumption by 33%.” The project, which will partly be carried out in partnership with Krakow Technology Park, is scheduled for completion in 2023.
Lafarge Poland president Xavier Guesnu said that the modernisation is part of the company’s effort to meet its commitment of 55% emissions reduction to 300kg/t of cement in 2030 from 667kg/t in 1990.