Displaying items by tag: GICA Group
GICA subsidiary receives fifth CE certificate of conformity
09 October 2023Algeria: The Chlef Cement and Derivatives Company, a subsidiary of GICA, has obtained the certificate of conformity to European standards (CE) for its GICA-Béton CEM I 42.5R cement product. It adds the CE mark to four other types of cement that already hold the same conformity certification, according to L’Expression newspaper. GICA- Béton CEM I 42.5.R is a high-performance Portland cement for concrete with rapid short-term strength, intended for cold areas, particularly in harsh winters, a season during which the formwork stripping period must be short. Its two day compressive strength is 20MPa.
CBAM: the Godzilla of carbon tariffs goes live
04 October 2023The European Union (EU) carbon border adjustment mechanism (CBAM) started its transitional phase this week ahead of the full adoption of the scheme in 2026. Importers of goods with a high carbon cost, including cement, will have to report the direct and indirect CO2 emissions associated with production. No financial penalty will be incurred during the transition period, but from 2026 onwards importers will have to start buying certificates at the EU emissions trading scheme (ETS) price. However, even the full version of the CBAM will be phased in with the cost of embedded emissions increased gradually from 2026 to 2034. Readers can catch up on the CBAM guidance for importers here.
Graph 1: Sources of cement and clinker imports to the EU in H1 2023. Source: Eurostat/Cembureau.
Global Cement Weekly has covered the EU CBAM frequently, but it is worth remembering which countries are most likely to be affected. According to data from Eurostat and Cembureau, the EU imported just over 10Mt of cement and clinker in 2022. This compares to around 2.5Mt in 2016. Graph 1 (above) is even more instructive, as it shows where the cement and clinker came from in the first half of 2023. Most of it was manufactured in countries on the periphery of the EU with, roughly, a third from Türkiye and a third from North Africa. These are the countries with the most to lose from the CBAM.
Graph 2: CO2 emissions intensity for cement exports. Green signifies cleaner than the EU average, Red signifies more carbon intensive than the EU average. Source: World Bank.
Türkiye is the most exposed. Data from Türkçimento shows that it exported 3.4Mt of cement and clinker into the EU in 2022 or 13% of its total exports. Bulgaria, Italy and Romania were the main destinations for cement. Belgium, Spain and France were the main targets for clinker. Notably, more clinker than cement was exported to the EU. For context, in total Türkiye exported 18.5Mt and 8.5Mt of cement and clinker respectively in 2022. The US was the leading destination for Turkish cement at 9.7Mt and Ivory Coast for clinker at 1.3Mt. Türkiye seems set to tackle the problem that CBAM poses for its iron and cement sectors by introducing its own emissions trading scheme. One view expressed has been that if the country has to pay for its carbon emissions it would much rather pocket the money domestically than see it go to a foreign entity. A relative CBAM Exposure Index put together by the World Bank by June 2023 suggested that Türkiye would actually benefit slightly in comparison to some of its cement exporting rivals as the CO2 emissions intensity of its cement exports was 4.85kg CO2eq/US$. This study’s pivot point was 4.97kg CO2eq/US$, putting Türkiye just across the line for increased competitiveness.
Cement export data for Algeria is harder to find but state-owned Groupe des Ciments d'Algérie (GICA) has been regularly issuing bulletins since 2018 detailing its cement exports. It previously had an export target of 2Mt for 2023 with destinations in Africa, Europe and South and Central America. Looking more widely, research by the African Climate Foundation (ACF) and the Firoz Lalji Institute for Africa at the London School of Economics and Political Science estimated that 12% of Africa’s cement exports ended up in the EU. It reckoned that the introduction of the CBAM and an EU ETS price of Euro87/t would reduce total African exports of cement to the EU by 3 - 5% if the EU ended its ETS free allowance. The World Bank CBAM Exposure study found that Egypt and Morocco were likely to become more competitive for cement exports but Tunisia less so. Unfortunately this analysis did not cover Algeria.
The third largest individual source of imports into the EU in the first half of 2023 was Ukraine. Research from the Kiev School of Economics estimated that the start of the CBAM would reduce the export volume of cement to the EU by 2 - 5%/yr. The World Bank study found that Ukraine would become less competitive as the emissions intensity of its cement exports was 7.62kg CO2eq/US$. This would be compounded by the fact that more than 90% of the country’s cement exports ended up in the EU. However, since the EU backed the country when Russia invaded in early 2022, imposing the CBAM on exports has acquired geopolitical consequences. There has been lobbying on this issue from various sources, so this situation might be one to watch to gain a sense of how the EU might react when its sustainability aims clash with its political imperatives.
One major risk for the cement exporting countries soon to be affected by the CBAM is if other countries start to do the same in a domino effect before the exporters introduce their own carbon pricing schemes. Türkiye is clearly alert to this. Other countries are thinking the same way. The US, for example, has had senators discuss the merits of setting up its own version. It is also wise to using sustainability legislation to further its own economic ends as the Inflation Reduction Act in 2022 showed. At the moment the US needs lots of cement imports but were this to change then the case to enact a US CBAM might grow.
Finally, one should never discount the sheer amount of bureaucracy involved when dealing with the EU. The UK discovered this when it voted to leave the EU and now the rest of the world gets to enjoy it too! Christian Alexander Müller of Evonik told the Die Welt newspaper this week that Brussels had created a bureaucratic ‘Godzilla.' Another commentator noted that the European Commission only published its guidance document for importers on CBAM in mid-August 2023 and that helping export partners would be like teaching them Latin in just a few weeks. Bona fortuna!
Algeria: Groupe des Ciments d'Algéries (GICA) says that it exported 350,000t of clinker produced at its Chlef cement plant over the period between 1 January and 14 March 2023. Local press has reported that the producer aims to export a total of 2Mt of clinker throughout 2023. It is currently on track to reach 1.75Mt, 13% short of its target, but 17% greater than its 1.5Mt exported in 2022. The company despatched the clinker from the ports of Oran and Tenès, to customers in Africa, Europe and South and Central America. It would now like to begin delivering its clinker to Syria and Türkiye in order to help facilitate rebuilding efforts there in the wake of the catastrophic February 2023 earthquake.
GICA exports 3Mt of cement in 2022
17 February 2023Algeria: The GICA group exported a total of 3Mt of cement in 2022 for a total income of US$106m. Destinations included countries in West Africa, Latin America and Europe. The group is working, through its various subsidiaries, to increase its cement exports as part of the government's strategy aimed at diversifying non-hydrocarbon exports.
As part of this, its SCIMAT subsidiary recently obtained ISO 45001 and ISO 50001 certificates relating to health and safety and energy management standards to help it increase exports to the EU and US.
Fire reported at GICA Group’s Hadjar Soud plant in Algeria
07 December 2022Algeria: A fire has been reported at Groupe des Ciments d'Algéries’ (GICA) Hadjar Soud plant operated by Société des Ciments des Hadjar Soud (SCHS). An explosion occurred whilst narcotics and other substances were being incinerated in the plant’s kiln under the supervision of the Gendarmerie Nationale, according to the Reporters newspaper. 12 people were injured in the incident including five workers at the plant, five police officers and two soldiers. Most of the victims suffered third degree burns in the blast and are being treated locally.
GICA holds the majority stake in SCHS, while Italy-based Buzzi Unicem owns a 35% share.
Algeria: Groupe des Ciments d'Algérie (GICA) has obtained a certificate of conformity with European standards (CE) for three types of cement. The certification should allow the company to export more products to Europe, according to the Expression newspaper. It applies to its Gica Moudhad and Gica Béton products. The move follows similar certification of products with the Association Française de Normalisation (AFNOR) from the company’s Aïn El Kebira plant in July 2021. At the same time the Minister of Industry said it was helping the group with its export strategy.
In 2021 GICA exported 2.25Mt of cement to countries including the Ivory Coast, Gambia, Ghana, Mauritania, Senegal , Cameroon, Benin, Guinea, Brazil, Peru, the Dominican Republic, Haiti and a number of European countries.
Chlef cement plant to export 1.5Mt in 2022
09 March 2022Algeria: The Entreprise des Ciments et Dérives d’Ech-Cheliff (ECDE) plant plans to export 1.5Mt of cement in 2022. Exports will be sent to countries in Europe, Africa and Latin America, according to the Algeria Press Service. The subsidiary of Groupe des Ciments d'Algérie’s (GICA) opened a third production line at the site intended solely for exports. The unit has a production capacity of 4.2Mt/yr.
GICA Group exports expected to reach 2Mt in 2021
10 November 2021Algeria: Groupe des Ciments d'Algérie (GICA) expects that its cement exports should reach 2Mt by the end of 2021. The cement producer started exporting in 2018 with a total of 0.27Mt and has increased this since then. It renewed its desire for a new port to support its Chlef plant in the west of the country to further boost exports.
Algeria: Ahmed Zeghdar, the Minister of Industry, says that he will help reduce the difficulties that Groupe des Ciments d'Algérie (GICA) faces with its exports. During a meeting with the management of GICA the minister said that the government would assist with logistical problems linked to sea and land transport, according to the Expression newspaper. He also urged the company to increase its exports due to high domestic cement production capacity. GICA produced over 11Mt of cement in 2020 and this is expected to rise to nearly 17Mt in 2021. Its exports reached a value of nearly US$600m in 2020 and are forecast to reach US$1bn in 2021.
Société des Ciments de Hamma Bouziane and Société des ciments de Ain El Kebira plan 50,000t West African cement export operation
11 January 2021Algeria: Groupe des Ciments d'Algérie (GICA) subsidiaries Société des Ciments de Hamma Bouziane (SCHB) and Société des Ciments de Ain El Kebira (SCAEK) are planning to export 50,000t of cement to West Africa. The L’Expression newspaper has reported that SCHB will supply 35,000t of the cement, and SCAEK will supply the remainder. SCHB produced 0.8Mt of cement in 2020.