Displaying items by tag: Holcim
Russia: Cementum is preparing to upgrade the grinding capacity at its integrated Ferzikovo cement plant in Kaluga region. The US$40m project will add 0.3Mt/yr of grinding capacity to the plant. Other planned developments include building a dry building materials unit and a concrete plant. Maxim Goncharov, the general director of Cementum and Vitaly Bogachenko, the Director of Corporate Relations and Sustainable Development of Cementum, met with Vladislav Shapsha, the governor of the Kaluga Region, in mid-June 2023 at the St Petersburg International Economic Forum to discuss development in the region. Holcim’s divested Russian business rebranded as Cementum in early 2023.
France: Lafarge France has signed a memorandum of understanding with green hydrocarbons specialist Axens, utilities provider EDF and research firm IFP Energies Nouvelles for a synthetic fuel production trial. The partners will build a plant to produce kerosene using captured CO2 from a carbon capture installation at Lafarge France's Saint-Pierre-La-Cour cement plant. The project, called Take Kair, aims to produce fuel for use by aviation companies, including Air France-KLM Group.
Holcim France president François Petry said "The decarbonisation of our processes and products is at the heart of our strategic commitment to reach Net Zero by 2050. Beyond the modernisation of our production tools, we work on all industrial and technological levers to reduce our emissions, and thus decarbonise our industry. With the Take Kair project, we are taking a decisive step in the capture and management of our residual CO2 emissions and participate with our partners in the emergence of an innovative and sustainable sector serving the country's mobility needs."
Lafarge France, a subsidiary of Switzerland-based Holcim, announced a Euro40m investment in the 1.6Mt/yr Saint-Pierre-La-Cour cement plant to achieve carbon neutral cement production there in March 2022.
Update on South Africa, June 2023
21 June 2023Mining and materials company Afrimat said it was buying Lafarge South Africa this week. The assets it is acquiring include aggregate quarries, ready mix concrete (RMX) batching plants, one integrated cement plant, two cement grinding plants, cement terminals and fly-ash sources. The means of purchase is somewhat unusual, as Afrimat is paying around US$6m but it also appears to be taking responsibility for around US$50m of outstanding debt that Lafarge South Africa owes its parent company, Holcim. In a statement Afrimat’s chief executive officer (CEO) Andries van Heerden talked up the benefits for his company in terms of the boost to its aggregates and concrete businesses.
This is quite the change from 2012 when India-based Aditya Birla Group was reportedly looking into buying Lafarge South Africa. At this time the value for the business for a similar mix of assets, including 55 RMX plants and 20 quarries, was said to be to US$900m. Prior to this, Lafarge South Africa spent around US$170m in the late 2000s on increasing the production capacity at its integrated Lichtenburg plant and building its Randfontein grinding plant. Then in 2014, when the merger between Lafarge and Holcim was announced, Lafarge consolidated its Nigeria-based and South Africa-based operations as Lafarge Africa. It later decided to move the South African business to another Holcim subsidiary, Caricement, in 2019 to keep the business in Nigeria more profitable by reducing its debts. This transaction was valued at US$317m. At the time chair Mobolaji Balogun said that Lafarge South Africa’s operations had faced a challenging market in South Africa, with shrinking demand in an aggressively competitive sector. Afrimat is now buying Lafarge South Africa and its subsidiaries from Caricement.
Holcim isn’t alone in making an effort to sell up in South Africa. In April 2023 the Valor Econômico newspaper reported that Brazil-based InterCement was receiving offers for its remaining African-based assets in Mozambique and South Africa with a potential deal valued at around US$300m. InterCement runs Natal Portland Cement in South Africa, which operates one integrated plant and two grinding units. This follows the sale of its Egypt-based assets in January 2023 to an unnamed buyer.
PPC, the country’s largest cement producer, is staying put. However, it issued a mixed trading update this week ahead of the formal release of its annual results to 31 March 2023. Trading conditions in the interior of South Africa and Botswana were described as being ‘difficult,’ with cement sales volumes down by nearly 6% year-on-year and earnings before interest, taxation, depreciation and amortisation (EBITDA) down by 26%. Yet the group says it was able to grow its revenue. PPC’s CEO Roland van Wijnen added, “We therefore remain hopeful that the South African government will roll out its infrastructure development plans and protect the local cement market through the introduction of import tariffs to create a level playing field for domestic producers.” Dangote Cement subsidiary Sephaku Cement was more circumspect in its recent trading update but it too warned that, “deteriorating economic conditions and persistent challenges in the cement industry impacted Sephaku Cement’s financial performance to break-even levels.”
Much of the above makes for gloomy reading. As the local trade association Cement and Concrete South Africa (CCSA) has laid out to local media, the market faces the problem of having 20Mt/yr of production capacity, 12Mt/yr of demand and over 1Mt/yr of imports compounding the problem. Lobbying by local producers against imports has been a feature of the market since the early 2010s and this work continues through the efforts of the CCSA and others. However, the plea by PPC for government infrastructure spending suggests that the market faces more systemic problems. As a consequence some cement producers are trying to leave the market, while others are attempting to tough it out.
Holcim US partners with NorthStar Clean Energy for solar power installation at Alpena cement plant
16 June 2023US: Holcim US has announced plans for a 25MW solar power plant to serve 75% of the electricity needs of its Alpena cement plant in Michigan. The company says that the installation at the Alpena plant will be the largest in the US Midwest Region. Holcim US chose NorthStar Clean Energy to build the array, which it says will eliminate 25,000t/yr of CO2 emissions.
Other planned projects at the Alpena cement plant include an upgrade to the plant's dock in order to accommodate larger vessels and reduce the number of trips in its Great Lakes transport operations.
Holcim US' senior vice president, manufacturing, Michael Nixon said “As Holcim is showing in Alpena, the path to net-zero carbon emissions requires a blend of proactive solutions. Whether it’s using alternative fuels or implementing renewable energy from solar power, we are committed to reducing our reliance on fossil fuels — a goal that will benefit the environment as a whole and the Alpena community we have called home for more than 115 years.”
Holcim acquires Minerales y Agregados
15 June 2023Guatemala: Switzerland-based Holcim has acquired mortars and adhesives producer Minerales y Agregados, Reuters has reported. Holcim described Guatemala as a 'high-growth market.'
Argentina: Holcim Argentina has commissioned its new 120,000t/yr mortar plant at its Malagueño cement plant in Córdoba. The plant cost US$5m to build. It is equipped with six 100t raw material silos and eight 1t additive silos. It also has a 2000l mixer, three packing machines and an automated palletiser. Holcim Argentina says that the plant will produce its Tector Adhesive and Tector Revoques ranges of mortar.
Holcim Argentina chief executive officer Christian Dedeu said “This new plant is aligned with our purpose of generating progress for people and the planet, accompanied by a diversification of our product portfolio. It consolidates us as the leading company in innovative solutions for construction.”
Ireland: Ecocem has appointed Jaouad Nadah as its Innovation Project Manager. He will be responsible for the coordination of the company’s ACT technology as it scales up development. This will include supporting a range of partnerships under development by Ecocem across Europe and beyond. Nadah previously worked for CRH-subsidiary Eqiom and Holcim, with a focus on innovation in the low carbon cement market. Ecocem launched ACT in late 2022. It says it is an alternative materials-based cement ingredient capable of reducing the CO2 emissions of cement production by up to 70%.
US: Holcim US has joined the New York Value of Distributed Energy Resources (VDER) program as part of its plans to enter Purchase Power Agreements (PPA) so that it can use more renewable energy sources. The scheme is intended to help support its investment in on-site renewable energy generation.
Atl Martinez, the Vice President of Procurement at Holcim North America, said “Holcim US is focused on driving significant progress to meet our Green Growth Strategy goals, so we consistently evaluate our environmental impact and opportunities to incorporate more sustainable solutions into our operations.” He added, “Through the New York VDER program, we support not only our ongoing investment in on-site generation but also community solar projects that help drive greener outcomes for all.”
The company will host three separate solar arrays on Holcim's non-mineable aggregate sites. These sites, operating in conjunction with various other offsite arrays within the Holcim VDER agreement, are expected to generate more than 80GWh/yr of energy. Energy generated from these sites will effectively power seven aggregate and cement sites through renewable energy credits.
Other work by Holcim US towards net zero includes its participation in the Northeast Regional Clean Hydrogen Hub program. The company has also expanded its renewable portfolio to include a 40MW battery storage system and 78MW of solar arrays in Ohio, Maryland and Arkansas. In late 2022, it entered into its first virtual power purchase agreement (VPPA) with the Electric Reliability Council of Texas (ERCOT).
Romania: Holcim Romania says that it has received Euro15.7m-worth of funding from the Romanian government. Romania Insiders News has reported that the company declined comment on its intended use of the funds.
Holcim Romania controls 3.5Mt/yr-worth of integrated production capacity across three cement plants in Argeș, Bihor and Cluj counties.
Philippines: Holcim Philippines introduced Holcim Optima, a blended Portland limestone cement (PLC), on the Philippine market on 8 June 2023. The Business Mirror newspaper has reported that Holcim Optima cement offers 10% reduced CO2 emissions compared to ordinary Portland cement (OPC).
President and CEO Horia Adrian said that Holcim Optima cement 'delivers the same strength, workability and durability as OPC and remains compatible with other cement additives such as slag and fly ash. The new product is best used in large building projects and available in bulk.' Adrian added "It is a timely product for the Philippines, as infrastructure building accelerates and green demand grows."