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Displaying items by tag: Heidelberg Materials
US: Heidelberg Materials has won negotiation for up to US$5m in funding from the US Environmental Protection Agency (EPA) to develop a web-based tool for cement facilities to produce Environmental Product Declarations (EPD). The funding is part of the EPA’s grant initiative to report and reduce emissions from the manufacture of construction materials, which awarded nearly US$160m to 38 recipients nationally.
Price controls on cement in Ghana, July 2024
17 July 2024A battle over cement pricing in Ghana reached a new stage this week when the Chamber of Cement Manufacturers (COCMAG) hit back at proposed government regulation. Frédéric Albrecht, the chair of the association, told a meeting that about 80% of local production costs linked to cement manufacture are related to the local currency exchange rate. So fixing the price would do little to address the main cause behind rises.
Albrecht was speaking at a stakeholders’ forum organised by the Ghana Chamber of Construction. The group was convened to discuss the government’s proposed Ghana Standards Authority (Pricing of Cement) Regulations 2024 that were formally presented in the country’s parliament in early July 2024. The association argues that the cement sector has not been consulted properly over the proposal and that introducing it could have negative consequences for the construction sector as a whole. It says that imported clinker is subject to numerous taxes and that the average price of cement has actually lagged behind the rate of inflation.
The government is dealing with an economic crisis that forced it to default on its external debts in 2022 and ask the International Monetary Fund for support. This has led to depreciation of the local currency and high inflation. Around the same time the authorities have also been attempting to regulate the cement sector more closely. In 2022 the Ghana Standards Authority (GSA) took action against a brand of cement, Empire Cement, that appeared to be on sale without any of the required permits. Then in the autumn of 2023 the Ghana Revenue Authority (GRA) shut down Wan Heng Ghana’s grinding plant in Tema after the company failed to pay a major tax bill. Action by the GSA followed when it shut down three more plants in the Ashanti Region - Xin An Safe Cement Ghana, Kumasi Cement Ghana and Unicem Cement Ghana - for using inferior materials in cement production.
In April 2024 a nine-member committee was established to monitor and coordinate the local cement industry. Notably, cement producers have been required to register with the committee in order to secure a licence to manufacture cement. Kobina Tahir Hammond, the Trade and Indus¬try Minister, then said in late June 2024 that the government wanted to intervene in cement pricing to protect consumers from what he described as the ‘haphazard’ increment in cement prices by manufacturers. A legislative instrument doing just that was presented in parliament on 2 July 2024. Around the same time the GSA reportedly threatened to close down ‘several’ more cement plants for non-compliance.
The cement industry in Ghana is particularly vulnerable to currency exchange effects as it is dominated by grinding plants. One integrated cement plant, Savanna Diamond Cement, was launched in the north of the country in the mid 2010s. However, this compares to 14 licensed grinding plants in the country reported in the local media. This includes units run by Ciments de l’Afrique (CIMAF), Dangote Cement, Diamond Cement (WACEM) and Heidelberg Materials subsidiary Ghacem and its CBI Ghana joint-venture amongst others. This makes it one of the countries in Sub-Saharan Africa with the most grinding plants, along with places such as Mozambique and South Africa. When the Ministry of Trade and Industry started a consultation on regulating the cement sector in late 2023 it calculated that the country produced 7.2Mt of cement in 2021 and that the country had an overcapacity of 3.5Mt. This gives the country an estimated cement production capacity of just below 11Mt/yr.
Some sense of the growing costs that the cement sector in Ghana is facing can be seen in the Ghana Statistical Trade Report for 2023. Clinker was the country’s third biggest import by value at US$206m. It was only exceeded by diesel and other automotive oil products. The Ghana Statistical Service reported that most of the country’s imported clinker in 2023 came from Egypt, South Africa and its neighbours in West Africa. Both Dangote Cement and Heidelberg Materials flagged up the country’s economy as being hyperinflationary in their respective annual reports for 2023.
Argument and counter-argument over cement pricing is prevalent around the world especially in Africa. Fellow West African country Nigeria, for example, has endured plenty of very public dialogue and debate about the price of cement. In Ghana’s case it seems more likely than not that factors beyond the control of the local cement companies are driving the prices given the grinding-dominated nature of the sector with lots of different companies involved. Negative currency effects and inflation look more likely to be driving cement prices than anything else, although one should always be wary of the potential for cartel-like behaviour by cement producers. The economic crisis in Ghana certainly fits the bill for the conventional introduction of price controls on selected commodities but getting the fine tuning right could be difficult in practice. Fixed prices will reassure consumers in the short term provided supplies hold. Beyond this the actual causes of the high cement prices should emerge in time.
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.
Update on the UK, June 2024
26 June 2024The Hillhead Quarrying, Construction and Recycling Show is in full flow this week, taking place near Buxton in Derbyshire. As one delegate marvelled on the panoramic minibus journey down to the quarry, “It’s like a music festival without the music and… other stuff.” Indeed. Of course what one doesn’t find at Glastonbury and the like is a near comprehensive range of suppliers, over 600 of them, to the industry all in one place… in a quarry! Where else can one get up close and see the new hydrogen-powered generators and excavating vehicles that are being piloted? The official attendance figures don’t get released until after the event but on the ground it looks as busy as ever. It’s truly the place to be this week.
The show gives us a reason to take a look at the UK cement sector. Like many other countries around the world it is an election year in the UK, with a General Election scheduled for 4 July 2024. The result of this should determine the next Prime Minister and the ruling party. So, naturally, the MPA, the trade association for the aggregates, asphalt, cement, concrete, dimension stone, lime, mortar and industrial sand industries, is taking the opportunity to remind the political parties what its priorities are. The quick version is: support for decarbonisation; a streamlined planning system; and better delivery of projects. This sounds familiar to priorities in other countries but one British spin on this includes the UK’s carbon border adjustment mechanism (CBAM).
Graph 1: Domestic cement sales and imports in the UK, 2017 – 2022. Source: MPA.
Edwin Trout’s feature on the UK cement sector in the June 2024 issue of Global Cement Magazine presents a good overview of the last 12 months. The general UK economy has faced shocks in recent years such as Brexit, Covid-19 and the war in Ukraine. However, this has been further compounded by a downturn and high interest rates since late 2022 when the then Prime Minister Liz Truss caused market turbulence in the wake of a badly received government financial statement. As Trout relates, sales of heavy building materials have been in relative decline since mid-2022 with more of the same expected in 2024. Production of cement in 2023 is currently uncertain given the reporting time lag from the MPA but up until 2022 domestic cement sales fell somewhat but imports grew. This has created a situation where overall cement sales in 2022 were 12Mt, not far behind the annual level in the early 2000s. However, the share of imports has nearly doubled since then. More recent MPA data on mortar and ready-mixed concrete sales throughout the first nine months of 2023 suggest that market activity has decreased and poor weather at the start of 2024 looks set to have made this worse.
Despite the apparent slowdown in building materials sales the cement companies have been conducting smaller-scale maintenance and upgrade projects at their facilities and supply chain schemes such as the cement storage unit for deep sea shipping lines that Aggregate Industries said in February 2024 it was going to build at the Port of Southampton. The news the cement companies want to show off has been a steady stream of information about ongoing decarbonisation projects in the cement sector. C-Capture started a carbon capture trial at Heidelberg Materials’ Ketton cement works in Rutland in May 2024, Capsol Technologies said in March 2024 that it had been selected to conduct a study on its carbon capture technology at Aggregate Industries Cauldon cement plant in Staffordshire, Heidelberg Materials' Ribblesdale cement plant in Lancashire announced in March 2024 that it was taking part in a study to assess the use of ammonia as a hydrogen source for fuelling cement kilns and Heidelberg Materials awarded Japan-based Mitsubishi Heavy Industries (MHI) a front end engineering design contract for a carbon capture installation at its Padeswood cement plant in Flintshire in February 2024. Finally, on the divestment front, CRH completed the sale of its UK-based lime business to SigmaRoc for €155m in March 2024. The business operates from sites in Tunstead and Hindlow with five permitted lime kilns.
That’s it for this short recap on the UK for now. For a longer look at the UK cement sector read Edwin Trout’s feature in June 2024 issue of Global Cement Magazine.
Hillhead 2024 runs until 27 June 2024
Andrew Boileau appointed as managing director of MQP
26 June 2024UK: MQP (Midland Quarry Products) has appointed Andrew Boileau as its managing director. He succeeds Rick Green, who has retired after a 40-year career in the industry, taking responsibility for MQP’s three quarries and 10 asphalt plants located across the Midlands. MQP is a subsidiary of Heidelberg Materials.
Boileau previously worked as the Programme Director for STARK Building Materials. He has also held various senior roles at Saint-Gobain, including Managing Director of Gibbs and Dandy.
US: Heidelberg Materials has successfully converted its cement plant in Speed, Indiana, into a slag grinding facility. The facility ceased Portland cement production in 2023 following the opening of a new plant in Mitchell, Indiana, and now produces slag cement using domestically sourced slag granules. The Speed site has a grinding capacity of over 400,000t/yr and also functions as a distribution hub for the Mitchell plant's cement and other products.
Global: Heidelberg Materials has launched the sixth edition of the Quarry Life Award, encouraging global participation to develop sustainable quarry management solutions. Open to researchers, students, communities, non-government organisations (NGO) and nature enthusiasts, the competition offers a prize fund of around €300,000 and aligns with the company's commitment to the Global Goal for Nature. Partnering with organisations like BirdLife International, the initiative aims to enhance biodiversity at extraction sites. Since its inception in 2011, the Quarry Life Award has spurred over 450 projects aimed at biodiversity protection. The 2025 edition will see Heidelberg Materials open its quarries for selected projects, with Türkiye, Egypt, Kazakhstan and Indonesia joining as new participants.
Chief sustainability officer Nicola Kimm said "The Quarry Life Award is a key element of our biodiversity strategy, which relies on strong partnerships with stakeholders to engage across science, industry, and local communities. To truly move from biodiversity loss to gain, a concerted effort is needed by everyone, working together in the recovery of nature at a landscape scale."
Heidelberg Materials and Linde launch first large-scale CCU facility at Lengfurt cement plant
20 June 2024Germany: Heidelberg Materials, in partnership with Linde, is constructing a large-scale carbon capture and utilisation (CCU) facility at its Lengfurt cement plant, set to start operating in 2025. According to the company, it will be the first of its kind. The project is named Capture-to-Use (CAP2U) and will capture 70,000t/yr of CO₂.
Christian Knell, general manager of Heidelberg Materials Germany, said "With the amine scrubbing technology applied here in Lengfurt, we are demonstrating the capture and utilisation of CO₂ on an industrial scale for the first time in the cement industry in Germany.”
Katharina Beumelburg appointed as Chief Sustainability & New Technologies Officer at Heidelberg Materials
19 June 2024Germany: Heidelberg Materials has appointed Katharina Beumelburg as its Chief Sustainability & New Technologies Officer. She succeeds Nicola Kimm, who will leave the company on 31 August 2024. Beumelburg will take up her position on 1 October 2024.
Beumelburg joins Heidelberg Materials from SLB (formerly Schlumberger), where she has worked as the Chief Strategy and Sustainability Officer since May 2021. Previously, she spent over 15 years at Siemens, Siemens Energy, and Hydrogen Europe, focusing on business strategy and excellence as well as energy systems. She has studied Industrial Engineering and Mechanical Engineering and holds a PhD in Robotics and Automation from the University of Stuttgart.
Stefano Gallini appointed as president of Federbeton
19 June 2024Italy: The Italian cement association Federbeton has appointed Stefano Gallini as its president. He succeeds Roberto Callieri in the position.
Gallini is currently the CEO of Heidelberg Materials Italia, a role he assumed at the start of 2024. Before this he was the West African Region Managing Director for Heildelberg Materials and the Managing Director for Sierra Leone. Gallini previously worked for Italcementi from 2000 to 2017 becoming the company’s Chief Commercial Officer Egypt in 2010.