Displaying items by tag: HeidelbergCement
Hanson Cement makes changes to bulk products division
28 September 2016UK: Hanson Cement’s bulk products division has promoted John Doolan to key account manager and Neil Jackson has been appointed as field sales manager. Doolan and Jackson will report to Mark Hickingbottom, the recently appointed national commercial director – bulk cement.
Doolan, who has worked for Hanson Cement for a number of years in different commercial roles, will work closely with Hanson’s key account customers to create and deliver strategic plans. He will also develop internal and external relations to carry out the company’s vision of outstanding customer service.
Jackson, previously Hanson’s area sales manager for the Midlands, will focus on sales strategy across the bulk division. He will manage a team of five district sales managers and ensure that customers’ needs are placed at the centre of the business.
Claudius Peters receives silo order from Cesla cement plant
28 September 2016Russia: Claudius Peters has received an order to supply four silo conversions and a new loading plant, consisting of four loading bins at the 0.8Mt/yr Slantsev ‘Celsa’ cement plant near St Petersberg, owned by HeidelbergCement . As part of the modification works, the storage silos will be equipped with new bottom aeration and new discharge systems. The order is part of an upgrade to raise the plant’s production capacity to 1.2Mt/yr.
To convey the cement to the new loading plants, Claudius Peters will install two Fluidcon lines each, with a capacity of 300t/hour each, supplied with Claudius Peters X-pumps. Four truck loading plants with a capacity of 200t/hour will also be installed.
US competition body seeks public comment on Essroc sale to Argos
26 September 2016US: The Federal Trade Commission (FTC) is accepting public comments on an application from HeidelbergCement and Italcementi to sell the Essroc Martinsburg cement plant in West Virginia. The divestment is required by the FTC as part of the requirements of the acquisition of Italcementi and its subsidiary Essroc, by HeidlebergCement. The companies have sought permission from the FTC to sell the Martinsburg plant to the US division of Colombia’s Cementos Argos.
The Commission will decide whether to approve the proposed divestiture after expiration of a 30 -day public comment period. Public comments may be submitted until 24 October 2016.
US: An on-going mechanical failure is to shut down the Lehigh Cement Redding plant in California for an estimated 14 weeks. The problem with a gearbox has reportedly been occurring since January 2016 and has persisted despite equipment replacements. The cement producer is currently waiting for further replacement parts, according to the Redding Record Searchlight newspaper.
39 workers will also be laid off at the plant. Lehigh previously laid off 40 employees workers at the plant in 2009 due to a fall in construction activity in the market.
Karel Okleshtek appointed new general director of Mordovcement
07 September 2016Russia: Karel Okleshtek has been appointed the new general director of the Mordovcement plant (included in Eurocement Group). Previously, he headed a plant of the international group HeidelbergCement.
North with Cementos Argos
23 August 2016Cementos Argos’ deal to buy the Martinsburg cement plant in West Virginia from HeidelbergCement makes a lot of sense. After all, the Colombian-based cement producer has seen its US cement assets perform well so far in 2016 with a cement sales volumes increase of 29% year-on-year to 1.99Mt and an overall sales revenue boost of 19.7% to US$700m. Compare that to the challenges the company has faced so far this year on its home turf in Colombia. There, cement sales volumes fell by 15.5% to 2.47Mt and sales revenue fell slightly to US$465m.
Argos has picked up the Martinsburg cement plant and eight cement terminals in the surrounding states for US$660m. The sale was mandated by the US Federal Trade Commission as one of the conditions of HeidelbergCement’s purchase of Italcementi including its US subsidiary Essroc, the current owner of the plant.
Symbolically, the purchase takes Argos right up to the Mason–Dixon line, the old survey line sometimes used to describe the dividing line between the so-called ‘north’ and ‘south’ in the US. The cement plant is south of the line in West Virginia but some of the cement terminals are firmly in the north-east. Outside of the company’s home turf in Colombia it has a maritime presence around the Gulf of Mexico. Although Martinsburg is inland, the new terminals in Norfolk, Virginia and Baltimore push Argos’ distribution network up the east coast. This could potentially push Argos into conflict with the subject of last week’s column, McInnis Cement, a Canadian cement plant under construction with eventual aspirations to sell its cement to the US.
Back in the US specifically the new plant will bring Argos’ total of integrated cement plants to four, joining Roberta in Alabama, Newberry in Florida and Harleyville in South Carolina. All together the producer will have a production capacity of around 6Mt/yr in the US following the acquisition. Back in 2014 when Global Cement visited Martinsburg the plant was distributing its cement about 60:40 via truck and rail. At that time the plant was shifting cement in an area from central Ohio eastwards to western Pennsylvania and south to southern Virginia, as well as in North Carolina.
Argos has paid US$300/t for Martinsburg’s production capacity of 2.2Mt/yr. As ever determining the cost of the terminals proves difficult. This compares to the US$267t/yr that Grupo Cementos de Chihuahua (GCC) paid to pick up two plants from Cemex in May 2016 or the US$375/t that Summit Materials paid Lafarge for a cement plant and seven terminals in July 2015. Previous Argos purchases in the US were around US$220 – 250/t for deals with Lafarge and Vulcan in 2011 and 2014 respectively. It is also worth considering that Essroc upgraded Martinsburg significantly in 2010 to a dry-process kiln and that the site has a waste-to-solid-fuel plant from Entsorga due to become operational in 2017.
The purchase of Martinsburg by Argos seems like an obvious move. It predicts a compound annual growth rate of 5.4% for cement consumption in the American states it operates within between 2016 and 2020. However, this may be optimistic given that the Portland Cement Association’s chief economist Ed Sullivan has downgraded his consumption forecasts for the US as a whole to 3.4% from 5% as he waits for the recovery to really kick in. The southern US states have also recovered faster since a low in 2009 than the northeastern ones. The purchase marks a new chapter in Cementos Argos’ expansion strategy
Hanson Cement promotes Mark Hickingbottom and Andy Simpson
23 August 2016UK: Hanson Cement has appointed Mark Hickingbottom as its national commercial director for bulk cement and Andy Simpson as its national commercial director – packed. The appointments follow the recent retirement of commercial director Keith Ellis.
Hickingbottom has sales and marketing experience within Hanson’s bulk cement team, as well as a degree in Business Management. He is an associate member of The Institute of Concrete Technology and has spent over 12 years at Hanson delivering strategic plans across its product range.
Simpson, previously responsible for sales of all Hanson’s packed products, will build on developing trading relations with merchant customers as well as working with internal teams. He has over 15 years’ experience with Hanson and holds a degree in Business Studies.
US: The Essroc cement plant in Speed, Indiana has lots its appeal to burn alternative fuels. Local government officials have decided that the plant will have to apply for rezoning to order to burn hazardous waste, comprising solvents, paints and other chemicals along with coal, according to the Washington Times newspaper.
“I’m disappointed in the decision, but I’m confident that we’ve got other means to obtain the required authorisation to continue with the project,” said Jeremy Black, the plant manager.
Local residents who are suing the plant have accused Essroc of misleading them regarding which fuels the company intends to burn. Essroc have denied the claim.
US: HeidelbergCement, through its subsidiaries Essroc and Lehigh Hanson, has entered into a definitive agreement with Argos USA, a subsidiary of Cementos Argos, to sell its Martinsburg, West Virginia cement plant and eight related terminals. The disposal was required by the Federal Trade Commission (FTC) to address competition concerns arising from its acquisition of Italcementi. The agreement is subject to the approval of the FTC and other customary closing conditions. The transaction purchase price is US$660m on a cash and debt-free basis. HeidelbergCement expects the transaction to close in the fourth quarter of 2016.
“With the disposal of the Martinsburg plant we have successfully finalised our disposal programme in the context of the Italcementi acquisition,” said Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “Together with the disposals of the non-core assets and the Belgium assets of Italcementi we have exceeded our Euro1bn target on disposal proceeds and thereby further improved the net financial position of HeidelbergCement.”
US: The Federal Trade Commission (FTC) has approved a final order settling charges, following a public comment period, that the proposed US$4.2bn merger of German cement producer HeidelbergCement and Italian producer Italcementi would likely be anticompetitive. Under the order, first announced in June 2016, the companies are required to divest to an FTC-approved buyer an Essroc cement plant and quarry in Martinsburg, West Virginia; seven Essroc terminals in Maryland, Virginia, and Pennsylvania; and a Lehigh terminal in Solvay, New York. At the buyer’s option, the order also requires the merged company to divest two additional Essroc terminals in Ohio.