
Displaying items by tag: GCW536
Chasing the building envelope
15 December 2021Saint-Gobain has headed back to the attention of the cement sector this week with a deal to buy GCP Applied Technologies and a joint-venture with Cementos Argos in Colombia.
The first development carries on the French conglomerate’s move into the construction chemicals market. In October 2021 it acquired Chryso for Euro1.02bn. Other recent deals include agreements to buy Romania-based construction chemicals company Duraziv in May 2021 and Mexico-based IMPAC in October 2021. The GCP Applied Technologies deal is valued at Euro2.3bn with closure planned by the end of 2022. As Saint-Gobain put it, “The combined platform of Weber, Chryso and GCP offers customers a highly comprehensive portfolio of construction chemicals solutions with strong complementary geographic footprints.” It says that it sees the planned acquisition as the “logical next step” to expand its market share in admixtures and additives. It also reckons that Chryso and GCP Applied Technologies are complimentary geographically with Chryso positions mostly in Europe, Middle East and Africa and with GCP’s positions in North America, Asia-Pacific and Latin America. Once the deal goes through, Saint-Gobain will operate 75 production sites in the sector in 38 countries. The specialty building materials part of GCP will then be integrated into the CertainTeed subsidiary in North America.
The arrangement in Colombia concerns a joint-venture intended to focus on lightweight and sustainable building materials. Detail is scarce beyond an announcement by Cementos Argos on its website but the focus appears to be on bringing in Saint-Gobain’s mortar products and/or technology into the local market.
This move towards the lightweight building materials market may sound familiar. That’s because it is similar to what Holcim has also been doing recently, notably with its acquisition of Firestone Building Products earlier this year. It is interesting though to see both companies targeting the lightweight sector from different places. Both have also framed their intentions in terms of sustainability goals. Notably, Saint-Gobain has far lower carbon emissions than many cement producers. For example, Holcim reported sales of around Euro22bn in 2020 with absolute gross Scope 1 CO2 emissions of 110Mt. Saint-Gobain reported sales of around Euro38bn with total Scope 1 CO2 emissions of 7.9Mt.
At an investors event in October 2021 Saint-Gobain’s chief executive officer Benoit Bazin said that the group’s ambition was to become the worldwide leader in light and sustainable construction. Saint-Gobain’s business portfolio was diverse already before the GCP announcement, with its construction products focused on ‘lighter’ materials such as gypsum wallboard, insulation and glass. Its expansion into the construction chemicals market is of relevance to the cement industry directly through the supply of admixtures for cement and concrete. It’s also of interest to wider trends in construction because the acquisitions show another company chasing the lightweight building materials market. One expectation, as countries and companies have signed up to net zero carbon commitments, is that the demand for lightweight materials in the building envelope will grow and companies are reacting accordingly. The question at this stage is whether there is space in their growing market for all of them.
Fauji Cement renews Qamar Haris Manzoor term as managing director
15 December 2021Pakistan: Fauji Cement has renewed Qamar Haris Manzoor as its managing director and chief executive officer (CEO). His current term will last three years until mid-December 2024. Qamar Haris Manzoor was first appointed as the head of the cement company in mid-2020.
Qamar Haris Manzoor holds over 33 years of experience in plant and project management. He started his career with ICI managing its soda ash plant operations subsequently working for Lotte Chemical, amongst other roles, where he eventually became its director of manufacturing. He later became the CEO of El Paso Technology Pakistan before following this with other leading roles at Hawa Energy and Naveena Group. He holds a master’s degree in chemical engineering from the University of Tennessee-Knoxville in the US in addition to management qualifications.
FLSmidth to carry out Pacasmayo cement plant upgrade
15 December 2021Peru: FLSmidth has secured a contract for the supply of a new pyro line for Cementos Pacasmayo’s Pacasmayo cement plant near Lima. The new line will give the plant an additional production capacity of 0.6Mt/yr. The supplier says that it plans to install a Cross-Bar cooler, low-NOx calciner, Jetflex burner, equipment for dosing and feeding and process automation. FLSmidth says that the upgrade will reduce the plant’s energy consumption and open new opportunities for the use of alternative fuel (AF).
FLSmidth’s head of projects and upgrades and senior vice president Anders Josefsen said “We are very excited to work with Cementos Pacasmayo on this project – not only on growing the business, but doing it in a sustainable way. The new line will be equipped with a state-of-the-art pyro system including several of our MissionZero solutions. With this, Pacasmayo makes a significant investment in future-proofing its production.” He added “The Pacasmayo project is a prime example of our capabilities within process design: ensuring the integration to an existing plant, while also demonstrating our ability to deliver equipment that meets demands for energy and fuel efficiency.”
Vietnam: Vietcombank Securities Company (VCBS) has forecast a 16% year-on-year rise in Vietnam’s cement and clinker exports to 44.5Mt from 38.4Mt. 22.3Mt (50%) of the 2021 exports will be to China. Viet Nam News has reported that VCBS forecast a drop in Vietnam’s cement and clinker exports to China in 2022 due to a Chinese property market slowdown. From 2023, the Vietnam government plans to raise its clinker export tariff to 10% from 5%.
India: SCG International India has announced the launch of a joint venture with autoclaved aerated concrete block producer Bigbloc Construction. The joint venture will produce and sell lightweight concrete panels. It expects to commission a new 2.6Mm3/yr concrete panel plant in Gujarat in 2022. Bigbloc Construction holds the majority 52% stake in the venture.
India: A Telangana court has blocked Southern Power Distribution Company of Telangana from disconnecting the power supply to some of Anjani Portland Cement’s cement operations in the state. The power supply is seeking to take the measure among other ‘coercive steps’ in an on-going dispute with the producer. Reuters News has reported that Southern Power Distribution Company of Telangana has issued a demand letter for alleged breach of obligations by Anjani Portland Cement.
Siam Cement Group to spend US$2bn on CO2 reduction by 2030
15 December 2021Thailand: Siam Cement Group (SCG) plans to spend US$2bn towards meeting its CO2 reduction target by 2030. The industrial group and cement producer intends to reduce its emissions by 20% by the end of the decade, according to the Bangkok Post newspaper. Chief executive officer Roongrote Rangsiyopash, said that the investment will be made from 2022 to 2030 and that it follows the United Nation’s Sustainable Development Goals (SDG), the Thai government's bio, circular and green (BCG) economic model and environmental, social and governance standards (ESG). After 2030 the group has a net zero goal for 2050.
In cement production the SCG wants to increase its rate of alternative fuels such as biomass and refuse-derived fuel. It also wants to invest in carbon capture utilisation and storage, use electric vehicles and use artificial intelligence systems in energy management. The group plans to reduce coal usage at its cement plants in Thailand, Vietnam, Laos, Cambodia and Indonesia by 50% in 2022. It also plans to use more electricity generated by renewable energy for its factories.
Yanbu Cement completes production line upgrade
15 December 2021Saudi Arabia: Yanbu Cement has completed an upgrade project to Line 4 at its integrated plant. It previously, in April 2021, reported delays to the work due to difficulty obtaining spare parts. The cement producer says that the cost of the project remains unchanged.
Opterra signs renewable power deal with Statkraft
15 December 2021Germany: Opterra has signed a power purchase agreement (PPA) with Statkraft for the supply of electricity from onshore wind farms. The renewable energy producer will supply around 30GWh to the subsidiary of CRH’s integrated cement plants at Karsdorf in Saxony-Anhalt, Wössingen in Baden-Württemberg and a grinding plant at Sötenich in North Rhine-Westphalia between 2022 and 2025. The wind power will be generated at four wind farms.
Government reacts to cement price hike in Trinidad & Tobago
15 December 2021Trinidad & Tobago: The government has reacted to a 15% rise in the price of cement by increasing imports and delaying an increase in taxes on the commodity. The country’s sole producer, Trinidad Cement (TCL), says that its price rise is set to start on 20 December 2021, according to the Trinidad Express newspaper. It has blamed this on mounting input costs such as gas, spare parts and other materials.
However, the Ministry of Trade and Industry (MTI) told the cement producer that it viewed any price rise as ‘unacceptable’ given that 90% of inputs to production were local. In response the government has doubled the quota for cement imports to 150,000t in 2022 with each individual importer receiving a 50% boost to their own quotas. It has also agreed with the Council for Trade and Economic Development (COTED) of the Caribbean Community (CARICOM) to suspend the Common External Tariff (CET) on hydraulic cement and a planned rise in the duty to 20% for one year to the end of 2022.
TCL’s competitor Rock Hard Cement, a cement importer, ended local operations in August 2021 after losing a court case against the country’s Ministry of Trade and Industry in July 2021.