Displaying items by tag: Heidelberg Materials

Bulgaria: Heidelberg Materials subsidiary Devnya Cement has commenced construction of the ANRAV.beta carbon capture pilot unit at its Devnya cement plant near Varna. Construction will take ‘a few months,’ followed by a pilot trial lasting 12 – 24 months. The ANRAV system will rely on OxyCal oxygen-enriched burner technology to eventually capture 800,000t/yr of CO₂ from 3Mt/yr of plant flue emissions. The project has Euro190m in grants from the EU Innovation Fund and is scheduled for delivery in 2028.

Heidelberg Materials’ Northern and Eastern Europe-Central Asia regional director Ernest Jelito said “The OxyCal technology we will be trialling in Devnya is a crucial addition to our portfolio of capture technologies. Obtaining solid operational data from industrial pilots like this is essential to ensure the successful implementation of projects under our comprehensive CCUS investment programme. At the same time, we can demonstrate an economically feasible way to decarbonise carbon-intensive industries in Eastern Europe.”

The Indian corporate rumour mill ramped up this week with speculation that UltraTech Cement and Adani Group might possibly be interested in buying Heidelberg Materials' assets in India. This follows the story broken by the Economist newspaper last week that JSW Cement had made an unsolicited offer to buy them. However, when HeidelbergCement India was asked by the Bombay Stock Exchange what exactly was going on, it replied that it was unaware of any such development and that it did not comment on market speculation.

A week later though and now another related story has popped up. In this case it is unclear exactly what the Hindu newspaper actually knew. The country’s two largest cement producers are locked in a battle for capacity expansion and any opportunity is likely to be of interest to them both. Yet the newspaper did quote a source who said that any divestment by HeidelbergCement India (HCI) would involve a “full-fledged bidding process,” implying that something may be going on.

Germany-based Heidelberg Materials operates four main subsidiaries in India: Gulbarga Cement; HC Trading (India); HCI; and Zuari Cement. HCI and Zuari Cement are the main two in terms of cement production. Heidelberg Materials entered the market in 2006 via a number of purchases and a joint-venture. It then acquired Zuari Cement via its takeover of Italcementi in 2016. Between them the two subsidiaries operate four integrated plants, three grinding plants and one terminal in Central and Southern India. Altogether the company says it has a total cement production capacity of 14Mt/yr. Gulbarga Cement, meanwhile, is a long running project via Zuari Cement to build a new integrated plant at Gulbarga in Karnataka. As of mid-2021 at least the company was still finalising planning and permitting requirements.

HCI’s income fell by 3% year-on-year to US$275m in the financial year to the end of March 2023 from US$282m in the same period that ended in 2022. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 39% to US$35.4m from US$58.2m, its lowest figure since at least its 2017 financial year. The company blamed this on higher fuel prices, although it has been trying to offset this by optimising its fuel and power mix. Unfortunately, it was not able to pass these costs on to its customers through price rises due to competition and new cement plants being commissioned in its market areas. Its revenue and profits improved somewhat in the quarter to July 2023. Recent financial data on Zuari Cement appears to be unavailable, possibly in part due to the company changing the dates of its financial year in 2020. However, it reported revenue of US$249m in its 2021 financial year, a broadly comparable figure to HCI’s. When asked during the company’s earnings call in July 2023, HCI’s managing director Joydeep Mukherjee did confirm that the company was looking at a potential merger with Zuari Cement. However, the company was waiting for the right time before it would consider actually doing it.

The Indian cement market has been consolidating in recent years. Companies have been increasing their production capacity, competition has been intensifying and the spike in fuel prices in 2022 battered profits. Adani Group’s acquisition of Holcim’s businesses in 2022 has probably been the most visible example of this trend towards mergers and acquisitions. It follows UltraTech Cement’s acquisition of Jaiprakash Associates in 2017. Heidelberg Materials has been steadily selling off bits and pieces of its cement business since the mid 2010s but at a slower pace than Holcim. Selected sales have occurred in Italy, Spain, Georgia, Ukraine and various countries in Africa, but the biggest was the sale of its US West region to Martin Marietta Materials for US$2.3bn in 2021. It reinforced this process with its ‘Beyond 2020’ strategy with the stated aim to simplify its country portfolio and prioritise its strongest market positions. A large-scale divestment of its operations in India would certainly fit with this plan. Whether the current reporting is accurate or not, Heidelberg Materials’ intentions for its Indian operations are certainly worth keeping an eye on.

Australia: Cement Australia has signed a new three-year rail haulage agreement with Pacific National to transport shipping containers of cement, sand, fly ash, slag and lime. This will also includes the interstate and inter-city transport of cement and supplementary cementitious materials between large cities and throughout North Queensland. Cement Australia and Pacific National have a partnership that dates back over five years.

Pacific National is Australia’s largest private rail freight operator.

Poland: Górażdże Cement has announced an investment of Euro261m in planned sustainability upgrades to its Górażdże cement plant in Opole Voivodeship, the Polish News Bulletin newspaper has reported. The Heidelberg Materials subsidiary plans to build a carbon capture installation, a green energy source and a facility to recycle construction and demolition waste for use in its cement production.

India: The Hindu newspaper has reported that Adani Cement and UltraTech Cement may submit offers for Heidelberg Materials’ Indian business. This follows the news that parent company Heidelberg Materials has reportedly entered into talks with JSW Cement over the possible sale of the business. It consists of cement plants in Andhra Pradesh, Madhya Pradesh, Karnataka and Telangana, in addition to a cement terminal and four grinding plants across India.

Global Cement reported on 4 October 2023 that Heidelberg Materials’ Indian subsidiary HeidelbergCement India had said it was ‘unaware’ of any discussions between its parent company and JSW Cement.

Germany: Heidelberg Materials has announced several senior-level changes to its corporate structure, with the establishment of some new roles. Jon Morrish, currently responsible for Western & Southern Europe, will take on responsibility for the newly established group area of Europe as of January 2024. This will follow the retirement of Ernest Jelito, currently responsible for Northern & Eastern Europe-Central Asia and the Competence Center Cement of Heidelberg Materials, at the end of December 2023.

Elsewhere, Roberto Callieri, General Manager Italy, will be promoted to the Heidelberg Materials Managing Board and take on responsibility for Asia as of January 2024. Incumbent Kevin Gluskie’s term will end at the end of January 2024. As part of the change, René Aldach, chief financial officer, will assume additional responsibility for Australia as of January 2024. Axel Conrads, currently President of the Midwest Region in the US, will be promoted to the Heidelberg Materials Managing Board, taking over the new role of chief technical officer as of February 2024.

India: HeidelbergCement India has clarified that it is ‘unaware’ of reported discussions between its parent company Heidelberg Materials and JSW Cement over the possible transfer of the former’s Indian assets, Reuters has reported.

Heidelberg Materials owns 13.4Mt/yr-worth of cement capacity in India, of which HeidelbergCement India comprises 6.3Mt (47%).

India: Heidelberg Materials has entered preliminary discussions over the possible acquisition of its Indian business by JSW Cement. The business commands 13.4Mt/yr in cement production capacity, 7.1Mt/yr (53%) of it via Zuari Cement and 6.3Mt (47%) via HeidelbergCement India.

ET Now News has reported that JSW Cement made an unsolicited offer for the assets. The company aims to raise its capacity by 46% to 60Mt/yr by the end of 2028, in order to be among the top five cement producers in India.

UK: Germany-based Heidelberg Materials has introduced customers and investors to Heidelberg Materials UK, its UK subsidiary formerly known as Hanson UK. The latest rebrand signifies increasing collaboration across the group’s geographies as a global business with one voice. Heidelberg Materials UK will launch rebranded packaging for its cement and other products in early 2024 and transition its branding across its sites and vehicles by October 2025.

Heidelberg Materials UK CEO Simon Willis said “The construction sector faces global challenges such as climate change and the digitalisation of our industry; challenges we are better placed to meet as a strong, united group. Having a single brand name and identity sends a clear and consistent message to our increasingly global customers.” Willis added “It will allow us to work together to lead the field in driving down carbon emissions; promote the circular economy by recycling and reusing construction waste; develop digital solutions to provide added value to our customers and develop sustainable and innovative building materials.”

US: The Portland Cement Association (PCA) has announced the winners of its 2023 Safety Innovation and Chairman's Safety Performance Awards.

The Safety Innovation Award Program recognises companies that have developed innovative practices, projects and programs that improve safety at cement plants in the US. Entries are judged in five areas: innovation, ease of use and ease of construction, effectiveness and risk prevention. The recipients were:

• Distribution: Continental Cement, Continental Port Allen Terminal, Chesterfield, Missouri
• Quarry: CalPortland Company, CalPortland Oro Grande Plant, Oro Grande, California
• Pyroprocessing: GCC of America, GCC Tijeras Plant, Tijeras, New Mexio
• General Facility: Mitsubishi Cement Corporation, Mitsubishi Cushenbury Plant, Lucerne Valley, California

The Chairman’s Safety Performance Awards are given to member cement plants that did not have a reportable injury or illness during the year. Fifteen plants achieved this in 2023, which represented more than 10% of all active cement facilities in the US and its territories. The recipients were:

• Argos USA, Atlanta, Georgia
• Argos USA, Newberry, Florida
• Argos Puerto Rico Corp, Dorado, Puerto Rico
• Ash Grove Cement Company (CRH), Durkee, Oregon
• Ash Grove Cement Company (CRH), Midlothian, Texas
• Buzzi Unicem USA, Chattanooga, Tennessee
• Buzzi Unicem USA, Maryneal, Texas
• CalPortland Company, Rillito, Arizona
• GCC of America, Odessa, Texas
• Heidelberg Materials, Bellingham, Washington
• Martin Marietta Materials, New Braunfels, Texas
• Martin Marietta Materials, Midlothian, Texas
• Martin Marietta Materials, Tehachapi, California
• National Cement Company of California, Kern, California
• St Marys Cement (Votorantim), Detroit, Michigan