Displaying items by tag: GCW695

Zimbabwe: Khayah Cement has begun corporate rescue proceedings with appointed supervisor Grant Thornton (Zimbabwe). The Sunday News has reported that the company is in financial trouble following equipment failures affecting its vertical roller mill. Grant Thornton (Zimbabwe) has called a meeting of Khayah Cement’s stakeholders and creditors in Harare on 19 February 2025. The rescue process aims to remove the need for liquidation.

Khayah Cement switched over from integrated to grinding-only production in 2023.

Thailand: Siam Cement Group (SCG) has forecast a 5% year-on-year rise in its full-year revenues due to economic revival and the government’s current stimulus package. President and CEO Thammasak Sethaudom said that increased customer purchasing power in Vietnam will raise SCG’s local cement and building material sales

SCG’s additional focuses will be on entering the Australia and North America markets and developing its high value-added products segment.

Germany: The Carbon Management Allianz (CMA), an association of emissions-intensive industrial producers in Germany, including cement companies, has urged lawmakers to legislate a framework for carbon capture, utilisation and storage (CCUS) in the country.

Energie & Management News has reported that CMA Chair Alexandra Decker said “Delays jeopardise investments. Regulatory clarity is urgently needed to scale these technologies and achieve the cement industry’s decarbonisation goal by 2039.”

Germany is due to elect a new parliament and government on 23 February 2025.

Vietnam: The general director of Vietnam Cement Industry Corporation (VICEM), Nguyen Thanh Tung, says that Vietnam will suffer continued cement overcapacity amid high production costs in 2025. Full-year production is forecast at 125Mt, 96% greater than an expected domestic demand of 63.5Mt. Việt Nam News has reported that Vietnam’s cement exports face an on-going investigation in Taiwan, and are already subject to anti-dumping duties in the Philippines.

VICEM aims to raise its domestic clinker sales volumes by 8% year-on-year to 18Mt, in order to generate sales of US$1.16bn. To this end, Tung urged the government to adopt cement reinforcement in roadbuilding, as well as lifting the export tax on cement.

US: Eagle Materials raised its sales in the first nine months of 2024, by under 1%, to US$1.79bn. Its profit also grew by under 1%, to US$569m. However, sales by its Heavy Materials Sector, which includes its cement, concrete and aggregates businesses, declined by 4% to US$352m. Cement revenue for the quarter was also down by 4% to US$295m, reflecting lower cement sales volume and increase in cement maintenance costs due to the planned outages at the company’s Oklahoma and Texas cement plants during the quarter. Cement sales volumes decreased by 7% to 1.7Mt.

President and CEO Michael Haack praised the company’s overall growth in the face of ‘ongoing adverse weather’ in the Midwest and Great Plains markets, which reportedly affected sales volume of the company’s cement business. He said “While the path to lower interest rates and improved home-buying affordability is less certain today, we remain optimistic about our businesses and our ability to execute on the opportunities in front of us. On the cement side, spending from the Infrastructure Investment and Jobs Act is still in the beginning phases, which should support multiple years of strong cement demand.”

Dominican Republic: Cementos Progreso Holdings has acquired Cemex’s operations in the Dominican Republic, as well as the company’s export business in Haiti. The deal was first announced in August 2024, and has now been completed, having met all legal requirements. The company said that it will retain the 500 existing staff, in order to continue ‘offering products and services of the highest quality.’ Cementos Progreso now operates in eight countries in Latin America and the Caribbean.

Mexico: GCC has reported a 0.2% increase in its 2024 consolidated net sales to US$1.36bn, whilst sales in the fourth quarter of the 2024 financial year declined by 1% to US$335m.

US operations showed strength, with 4% sales growth and 4.5% increase in concrete volumes in the fourth quarter. Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 6% to US$500m for 2024, with the fourth quarter showing 4% growth to US$122m.

CEO Enrique Escalante said "GCC delivered exceptional results once again in 2024. Despite navigating a challenging economic environment, we achieved record-breaking sales, EBITDA, margins and net income. These results underscore our team’s flexibility and agility to successfully execute our strategy. Looking ahead, we remain cautious about demand dynamics. The fundamentals of our business remain strong, especially in the US market where we generated more than 75% of our EBITDA.”

Japan/Australia: Mitsubishi UBE Cement Corporation (MUCC) has invested US$5m in cleantech firm MCi Carbon, becoming the fourth major Japanese investor alongside ITOCHU Corporation, Mizuho Bank and Sumitomo Mitsui Trust Bank.

The partnership includes a collaboration agreement focusing on mineral carbonation technology and a three-way memorandum of understanding with ITOCHU Corporation.

MUCC will utilise MCi's technology to decarbonise cement production in Japan through CO₂ emissions abatement and development of low-carbon materials.

The investment supports the commissioning of MCi's 'Myrtle' mineral carbonation demonstration plant in Australia.

India: Shree Cement has reported that, in the third quarter of the 2025 financial year, its profit after tax fell by 72%, to US$22.4m, down from US$81m in the previous corresponding period. The company’s net consolidated total income declined by 12% year-on-year to US$540m, whilst sales volumes increased by 15% to 8.77Mt compared to the second quarter of the 2025 financial year. The company plans to commission its ongoing expansion projects in Rajasthan, Karnataka, Chhattisgarh and Uttar Pradesh in the first quarter of the 2025-2026 financial year.

Global: The World Cement Association (WCA) projects a 22% decline in global cement demand by 2050. Price increases are expected to continue in European and North American markets, while significant market restructuring is already underway to address overcapacity in China and Japan. Multinational companies are scaling back cement business and focusing instead on North America, while cement production in Europe continues to decline due to strict CO₂ regulations and capacity reductions.

India's cement production has surpassed 200Mt/yr, with domestic firms strengthening their position as multinationals exit the market. Chinese producers are expanding their presence, particularly in Africa and Southeast Asia.

WCA president Wei Rushan said “To remain both profitable and environmentally responsible, the cement industry must aim to reduce capacity by 50%, from 4.7Bnt/yr to 2.3Bnt/yr within the next decade. This requires focusing on modern, sustainable production units.”