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Saint-Gobain looks set to increase its presence in the construction chemicals market this week when it announced a deal to buy Fosroc. A definitive agreement has been set for the acquisition valued at just over US$1bn. The purchase will be financed in cash and is expected to close in the first half of 2025.

The light construction materials company has been growing its construction chemicals capabilities for several years now. In 2021 it acquired Chryso for Euro1.02bn and then it bought GCP Applied Technologies for Euro2.3bn in 2022. Acquisitions of smaller companies in the sector, including Duraziv and IMPAC, also took place. With regards to the proposed Fosroc transaction, Saint-Gobain highlighted in its press release that the deal was “supported by solid macroeconomic factors including the transition towards low-carbon concrete.” It also noted that Fosroc’s geographic profile would strengthen its own presence in emerging markets such as India and the Middle East. Chryso’s market share is mainly in Europe, Turkey and Africa. GCP’s is in North America, Latin America and Asia-Pacific.

As Riccardo Stoppa, Saint-Gobain’s Business Director of Cement additives related to Global Cement Magazine in our May 2024 issue, the Construction Chemicals Business Unit of Saint-Gobain’s High Performance Solutions (SGHS) division broadly produces two groups of products for the cement and concrete sector: additives and admixtures; and a wider range of more recent products using newer chemistry approaches. Saint-Gobain’s total annual revenue is around €48bn/yr with SGCC’s contribution weighing in at around €1bn/yr. Most of that latter revenue derives from the former businesses of Chryso and GCP. Finally, Stoppa highlighted SGCC’s strength in North America, Europe and China but also highlighted the potential in the Middle East for its products. That last point makes interesting reading in light of the current Fosroc deal.

India was flagged as a benefit of the proposed Fosroc purchase. If any further reminder of the growth and market consolidation taking place there were needed, UltraTech Cement revealed this week that it is in the process of buying a 23% share of The India Cements. This story ties into the rivalry between the country’s two largest cement companies. Both UltraTech Cement and Adani Group are mounting up production capacity at pace through both acquisitions and by building new plants. All of this is rosy news for a company selling additives and admixtures to the cement and concrete market.

Saint-Gobain latest acquisition is subject to the usual regulatory conditions as one might expect. Yet, what Saint-Gobain didn’t mention in its statement, was that it reportedly had one of its sites in Türkiye visited in late 2023 as part of an international investigation into anti-competitive behaviour in the sector. Switzerland-based Sika was also linked to the case at the time. The UK-based Competition and Markets Authority (CMA) announced in October 2023 that it had launched an investigation into suspected anti-competitive conduct in relation to the supply of chemicals for use in the construction industry. It said it was working with the European Commission and that it had been in contact with other authorities, including the US Department of Justice, Antitrust Division. At this time Sika confirmed to Construction News that inspections had taken place into “suspected antitrust irregularities in the area of additives for concrete and cement.” However, it is important to note here that these were merely information gathering activities and no accusations of any breaches of competition law have been made so far. All of this suggests that Saint-Gobain does not seem too troubled by the interest of the various competition bodies with regards to its expansion plans.

In his interview, Stoppa told Global Cement Magazine that SGCC’s products allow cement and concrete producers to reduce the amount of cement used in their concrete. This is almost heretical thinking to a world that produces too much clinker. Yet Saint-Gobain is betting on exactly this outcome through the expansion of its construction chemicals division. Its purchase of Fosroc is the latest stage in this line of thought. It’s not the only company doing this. In May 2023 Sika completed its purchase of MBCC Group, another admixture manufacturer. Further sector consolidation looks likely.

India: Sumnesh Khandelwal has resigned as the Deputy Chief Financial Officer of JK Cements. He has been in post since late 2021. Prior to this he was the Deputy President – Commercial for JMC Projects and was the CEO of Robo Silicon Private. Earlier in his career he spent nearly 20 years working for UltraTech Cement, eventually becoming a Joint Executive President. Khandelwal is a chartered account affiliated to The Institute of Chartered Accountants of India.

Mexico: Cementos Moctezuma has appointed Fortino Delgado Carrillo as its Director of Legal Affairs. He succeeds Belen Molins Benavent in the post.

Delgado has worked as Senior Legal Manager Litigation for Cementos Moctezuma since early 2021. Before this he held a variety of corporate legal roles for companies, including Monere Business, Inter-Con Security Systems and MultiPack. He also worked as the Director General for the National Human Rights Commission Mexico. Delgado holds law qualifications from the Universidad Nacional Autónoma de México and the Universidad de Castilla-La Mancha.

Global: Titan Group and Sinoma CBMI have signed a Memorandum of Understanding (MoU) to collaborate on new business opportunities and technological innovations, focusing on decarbonising and digitising cement manufacturing.

Chair of the Titan Group executive committee, Marcel Cobuz, said "Our partnership with Sinoma will enhance our Green Growth Strategy 2026, benefiting both companies and advancing efficiencies across various fronts. Together, we are transforming the building materials sector towards a net zero future."

The MoU extends the collaboration beyond their initial joint venture on Titan's cement plant in Albania, exploring further advancements in low-carbon fuel and cooler technologies, virtual cement applications, digital logistics and carbon capture solutions.

Switzerland: Holcim will close its historic site in Holderbank, Argovia, relocating approximately 200 employees to its headquarters in Zug from 2026. This move ends Holcim's 114-year presence in its founding location. Holcim will provide financial assistance for relocation or for those whose commute is affected, according to The Geneva Tribune. Prior to the transfer, the Zug headquarters will undergo renovation and expansion, eventually accommodating over 400 staff.

A spokesperson for Holcim said "The merger of the site and offices will not lead to any job cuts. There will be no layoffs."

India: Beumer will establish a production site in Reliance MET City, Jhajjar, with an investment of more than US$24m. The site covers over four hectares and represents a strategic expansion for Beumer's subsidiary, Beumer India. Construction is set to begin in mid 2024 with the plant's inauguration scheduled for September 2025.

UK: The Materials Processing Institute has launched the next phase of the EconoMISER programme with a €5m investment to develop sustainable technologies. The institute aims to advance research in alloy development, furnace modelling and decarbonisation of cement and concrete.

The institute will establish a new cement and concrete research centre and invest in technologies such as predictive artificial intelligence for alloy development. This initiative is part of the UK's effort to decarbonise critical sectors like cement through the EconoMISER programme, supported by UK Research and Innovation.

Pakistan: Domestic cement sales declined by 4.6% to 38.2Mt in FY2024 from 40Mt in FY2023, reflecting a slowdown in construction activities. Despite this, exports were up by 56% to 7.1Mt, contributing to a slight overall rise in cement dispatches of 1.6% to 45.3Mt in 2024, according to Dawn newspaper.

A spokesperson from The All Pakistan Cement Manufacturers Association said “Cement is not a luxury item but a basic necessity. The government must take measures to reduce construction costs to make it affordable for the masses.”

UK: Heidelberg Materials has announced the launch of a public consultation for its carbon capture and storage (CCS) project at Padeswood Cement Works. The consultation, which runs from 2 July - 12 August 2024, will gather public input on the proposed plans to install the CCS technology, which will capture up to 800,000t/yr of CO₂, according to local news reports.

The Padeswood CCS project is expected to create over 400 jobs and forms part of the HyNet North West initiative, a major industrial decarbonisation effort that includes constructing a 60km pipeline to transport CO₂ to depleted gas reservoirs in Liverpool Bay for storage.

UK: Aggregate Industries has commenced civil construction at its new manufacturing facility and import terminal at the Port of Tilbury. This new grinding station and storage facility aims to be fully operational by 2026.

The project will allow the company to supply conventional, low-carbon and circular cementitious materials 24 hours a day from five loading heads, meeting growing demands for sustainable building materials. It includes investments in new plant equipment for manufacturing blended cements and lower carbon cement components, such as ground granulated blast furnace slag and materials from construction demolition.