
Displaying items by tag: Holcim
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."
Update on cement diversification, June 2023
07 June 2023Taiwan Cement said this week that it is aiming for cement to account for less than half of its sales by 2025. At the annual shareholders’ meeting chair Nelson Chang defended the cement sector as a core business but said that the company was expanding more into the green energy sector through its energy storage and vehicle charging lines. Chang directly linked the strategy to growing carbon taxes around the world, such as the European Union Emissions Trading Scheme, where the carbon price has been occasionally close to pushing past Euro100/t since early 2022. Taiwan Cement formed a joint venture with Türkiye-based Oyak Group in 2018 that runs Cimpor in Portugal.
Company |
Cement share of business |
Other main sectors |
CNBM |
45% |
Aggregates, concrete, gypsum, wind turbines, batteries, engineering |
Anhui Conch |
78% |
Aggregates, concrete, sand, trading |
Holcim |
51% |
Aggregates, concrete, lightweight building materials |
Heidelberg Materials |
44% |
Aggregates, concrete, asphalt |
UltraTech Cement |
95% |
Concrete |
Taiwan Cement |
68% |
Power supply, rechargeable lithium-ion battery, sea and land transportation |
Taiheiyo Cement |
70% |
Aggregates, concrete |
Table 1: Cement business share by revenue of selected cement producers. Source: Corporate annual reports.
Taiwan Cement’s plan to decrease its reliance on cement is becoming a familiar one. Holcim notably revealed in 2021 that it was growing its light building materials division. Its cement division represented 60% of sales in 2020 with concrete and aggregates making up most of the rest to 92% and the remaining 8% on other products including light building materials. This started to change with the acquisition of roofing and building envelope producer Firestone Building Products in 2021. Other similar acquisitions have followed. Holcim’s current target is to grow the Solutions & Products division to around 30% by 2025, with cement reduced to somewhere between a third and half of sales. Earlier this year Japan-based Taiheiyo Cement said it was doing a similar thing as part of its medium-term strategy to 2035. In its case cement represented 70% of its sales in 2022 but it is now aiming to reduce this to 65% by 2025 and 50% by 2035.
A common pattern for the business composition of European cement companies is a mixture of heavy building materials made up of cement, concrete and aggregate. However, not every cement company follows the same route. Some cement companies are simply parts of larger conglomerates. UltraTech Cement, for example, is mostly just a cement company. However, it is also part of Aditya Birla Group, which runs a wide range of industries including chemicals, textiles, financial services, telecoms, mining and more. Depending on how one looks at it, UltraTech Cement’s cement business ratio is large or Aditya Birla Group’s ratio is small. Siam Cement Group (SCG) in Thailand is another example of a cement producer operated by a conglomerate with other major businesses.
A different approach that some cement producers take is to mix cement production with complimentary businesses outside of heavy building materials. A good example of this is Votorantim Cement in Brazil, which manufactures cement and steel. Companhia Siderúrgica Nacional (CSN) is another Brazil-based cement producer that is also well known for steel production. Adani Group in India, meanwhile, was well known for logistics, power generation and airports before it purchased Ambuja Cements and ACC from Holcim in 2022.
The driver for cement companies looking to reduce cement as a proportion of their businesses has varied between the three examples presented above. Holcim’s approach has been in response to growing European carbon costs but it also fits with a general desire to broaden its business as the company has sought to reshape itself following the merger between Lafarge and Holcim. Taiheiyo Cement’s plans also have a sustainability angle but the Japanese market has been in slow decline since the 1990s and this has been made worse by the spike in energy prices since 2022. Investing in new businesses makes sense for either of these reasons. Lastly, Taiwan Cement says it is taking action in response to carbon prices around the world. However, its proximity to many other large-scale producers in the Far East may also be a factor. Whether more companies follow suit and also start to reduce the ratio of their cement businesses remains to be seen. Yet, mounting carbon taxes and global production overcapacity look set to make more of the larger cement producers consider their options in certain places.
Lafarge Canada commits US$11,200/yr to extended Forêt-Boucher Foundation biodiversity collaboration
07 June 2023Canada: Holcim subsidiary Lafarge Canada has extended its biodiversity collaboration with the Forêt-Boucher Foundation. Under the expanded partnership, Lafarge Canada has committed to annual contributions of US$11,200/yr until 2028.
The collaboration will focus its efforts on conservation of the Boucher Forest in Quebec, near the site of Lafarge Canada’s Klock quarry. Boucher Forest contains habitats with 1150 different species.
US: Holcim US has inaugurated a waste tyre processing plant at its Alpena cement plant in Michigan. The facility will process 22,000t/yr of tyres into refuse-derived fuel (RDF) for use at the cement plant. Holcim US partner Geocycle will collect, pre-process and deliver the tyres to the new facility.
Holcim US’ North regional senior vice president of manufacturing Michael Nixon said "Holcim has invested more than US$100m in eco-friendly technologies at the Alpena plant in the past 15 years. The tyre-derived fuel facility is another strong demonstration of our commitment to reducing emissions."
Germany: Holcim Deutschland has commenced a carbon capture trial at its 950,000t/yr Beckum cement plant in Beckum-Kollenbach, North Rhine-Westphalia. The trial will employ amine scrubbing technology to separate CO2, which it will then seek to commercialise for other industrial uses. Holcim Deutschland's partners for the project are Technische Universität Berlin and construction engineering firm thyssenkrupp Uhde. The trial also has funding from the German government.
Holcim to set Science Based Targets for Nature
26 May 2023Switzerland: Holcim has announced its participation in the Science Based Targets Network's Science Based Targets for Nature pilot. Under the initaitive, Holcim will submit targets for the conservation of land and freshwater ecosystems for validation later in 2023.
Holcim's chief sustainability and innovation officer Magali Anderson said "Setting science-based targets for nature is key to making a real and measurable impact to preserve and restore biodiversity and freshwater ecosystems. As part of this initiative, we aim to bring our climate and nature action closer together."
Lafarge Emirates Cement starts building waste heat recovery plant at Fujairah cement plant
25 May 2023UAE: Holcim subsidiary Lafarge Emirates Cement (LEC) has begun construction of a 10MW waste heat recovery (WHR) plant at its 3.2Mt/yr Fujairah cement plant. Supplier Engie Solutions says that it expects to commission the installation later in 2023. Trade Arabia News has reported that the equipment is based on a closed-loop organic Rankine cycle and will eliminate 29,000t/yr of CO2 - 28% of the Fujairah cement plant's energy-related CO2 emissions.
LEC general manager Olivier Milhaud said "Engie’s energy-as-a-service model means guaranteed energy savings and higher reliability and resilience, with no capital outlay and no need for additional staff." He continued "We are fully committed to the UAE’s sustainability goals, including the 2050 Net Zero vision."
Hungary: The Hungarian National Professional Association of Construction Contractors (ÉVOSZ) has claimed that the government of Hungary has initiated negotiations to acquire Duna Dráva Cement and Holcim Magyarország. 24.hu News has reported that the construction industry is facing on-going cement supply issues due to a purported decline in domestic production. ÉVOSZ said that its members’ reliance on imports of cement has risen to 60% from 40%.
Duna Dráva Cement clarified that its joint owners, Germany-based Heidelberg Materials and Schwenk Zement, are ‘committed to their investment in Hungary and are not negotiating its sale.’
Meanwhile, Switzerland-based Holcim said "We are not in a position to comment on the news that the Hungarian state is negotiating with domestic cement producers and/or their foreign owners for the purpose of acquiring shares."
Europe: Holcim plans to deploy 1000 new electric trucks in its operations across Europe before 2030. The cement producer ordered the vehicles from Sweden-based Volvo. Both companies are founding members of the First Movers Coalition low-CO2 technology alliance. Holcim expects the initiative to reduce its annual CO2 emissions from road transport by 50%. It will take delivery of the first new trucks by the end of 2023.
Chair and CEO Jan Jenisch said “The net zero transition requires deep collaboration across value chains. We are excited to be partnering with Volvo to decarbonise our European operations’ logistics with electric fleets, advancing our goal to reach 30% of zero-emission heavy-duty trucks by 2030.”
UK: Aggregate Industries, Breedon, Lhoist and Tarmac have announced the launch of the Peak Cluster, a carbon capture and storage cluster of cement and lime plants. The partners aim to eliminate 3Mt/yr of emissions from operations across their plants in Cheshire, Derbyshire and Staffordshire by capturing 100% of their CO2 emissions. Progressive Energy will oversee the capture and transportation of CO2 from the plants for storage below the Irish Sea. Possible storage partners for the cluster are Liverpool Bay CCS or the upcoming Morecambe Net Zero storage project. When operational, the Peak Cluster will eliminate 40% of emissions from UK cement and lime production. Participating cement plants are Aggregate Industries' 1Mt/yr Cauldon cement plant in Staffordshire, Breedon's 1.5Mt/yr Hope plant in Derbyshire and Tarmac's 0.8Mt/yr Tunstead plant in Derbyshire.
Mineral Products Association (MPA) energy and climate change director Diana Casey said “The launch of the Peak Cluster is an exciting and vital step forward in the journey of the cement and lime sectors towards net zero. The region is a historic heartland for cement and lime production providing highly skilled jobs for local communities, and a secure supply of essential materials to the UK economy." She concluded "The UK Concrete and Cement Industry Roadmap to Beyond Net Zero highlighted the importance of carbon capture for the decarbonisation of the cement and concrete supply chain, and the Peak Cluster is an essential part of that transition. This launch demonstrates the commitment of cement and lime producers to transition to net zero to secure the future of these important industries, and the vital products they produce, in a net zero world.”