Displaying items by tag: Holcim
India: Shree Cement has appointed Neeraj Akhoury as its designated managing director. Hari Mohan Bangur has also been appointed as chair and Prashant Bangur as Vice Chair. All these personnel changes are subject to approval by the members of the company. In addition, Gopal Bangur has resigned as chair and will become Chairman Emeritus.
Akhoury holds nearly 30 years of professional experience in the cement and steel sectors. He began his career in 1993 at Tata Steel, working for both the cement and steel divisions. He joined Lafarge India in 1999 and worked as member of the Executive Committee responsible for corporate affairs followed by sales. In 2011, he moved to Nigeria as the head of Lafarge AshakaCem. Later, he was appointed as Strategy & Business Development Director for the Middle East & Africa at Lafarge’s headquarters in Paris. He became the head of LafargeHolcim Bangladesh in 2015 and then was appointed as the head of ACC in 2017 and Ambuja Cement in 2020.
Akhoury is a graduate in economics from Allahabad University and holds a Master of Business Administration (MBA) from the University of Liverpool. He has also studied one-year General Management Program at XLRI Jamshedpur and is an alumunus of Harvard Business School.
Lafarge Cement Syria fined US$778m for terror support
19 October 2022Syria/US: A US court has found Lafarge Cement Syria guilty of conspiring to provide material support to the terrorist organisations al-Nusrah Front (ANF) and ISIS in Northern Syria during 2013 and 2014. Lafarge Cement Syria and its parent company, France-based Lafarge, agreed in 2011 to pay the terrorists for Lafarge Cement Syria employees' 'protection' and the continuation of the Jalabiyeh cement plant's operations, as well as to gain an economic advantage over other Syrian competitors. During the duration of the agreement, Lafarge Cement Syria recorded US$70.3m in sales. Coalition forces fighting against ANF and ISIS damaged the plant in an airstrike 'to reduce the facility's military usefulness' on 16 October 2019.
The court ordered Lafarge Cement Syria to pay criminal fines and forfeiture totaling US$778m.
Update on the Philippines, October 2022
12 October 2022Cement imports are back on the agenda this week in the Philippines with the news that the Tariff Commission has backed repealing the duties currently being implemented. If it’s anything like what happened last time, back in 2019, the commission’s opinion will once again be passed back to the Department of Trade and Industry (DTI) for the final decision. The safeguard measure the commission wants to cut covers Ordinary Portland Cement (OPC) and Blended Cement. It summarised the situation as follows, “There is no existence of an imminent threat of serious injury and significant overall impairment to the position of the domestic cement industry in the near future.”
The commission reviewed the sector between 2019 and 2021 and concluded that the domestic cement industry maintained its market position, increased its mill capacities, stabilised its manufacturing costs and improved its profitability. It found that local producers recovered their profits in 2021, following the coronavirus pandemic. It also noted that imports continued to rise whilst the safeguard measure was in force. Volumes of imported OPC and blended cements increased at levels above 10% year-on-year in both the 2019 – 2020 and 2020 – 2021 periods. They also rose by 7% year-on-year to 3.51Mt in the first half of 2022 compared to the half-year average from 2019 - 2021. In the commission’s view, relaxing the duties on imported cement would slow price rises for both locally produced and imported cement leading to an overall national economic benefit.
Local cement producers in the Philippines are likely to be unhappy with the Tariff Commission’s recommendation. The Cement Manufacturers Association of the Philippines (CEMAP) spent the summer of 2022 lobbying for the safeguard measure to be extended past October 2022. It too pointed out that imports of cement had continued to grow even whilst the increased duties had been levied from 2019. A few days before the commission’s decision was published, APO Cement said that it had temporarily suspended operations at its Davao terminal. The subsidiary of Cemex Philippines blamed imports of cement, particularly from Vietnam, for the decision.
Yet, the local sector has been active over the last year with a number of capacity upgrades being launched or underway. In January 2022 the government gave tax breaks to San Miguel Equity Investments for the construction of a 2Mt/yr cement plant in Mindanao. In February 2022 San Miguel subsidiary Southern Concrete Industries said it was doubling the capacity of an upgrade to its grinding plant at Davao del Sur, with initial commissioning planned in mid-2022. Meanwhile, Solid Cement’s upgrade of a new production line at its integrated plant in Antipolo, Rizal, has been ongoing since it officially started in 2019. The current commissioning date for the subsidiary of Cemex is now expected in early 2024. In August 2022 Taiheiyo Cement Philippines held a groundbreaking ceremony for the start of construction of a new production line at its integrated San Fernando plant in Cebu. The US$85m project is due to be commissioned in mid-2024. Finally, importer Philcement revealed in late September 2022 that it had taken out a US$1.73m loan for an expansion and upgrades to its Mariveles cement terminal in Bataan.
Holcim Philippines’ president and chief executive officer Horia Adrain told local press in July 2022 that the cement sector was continuing to recover in 2022, following the coronavirus pandemic in 2020, but that the pace would be slower. And so it proved, with reduced revenue, earnings and profits reported by Holcim for the first half of 2022. Costs rose due to higher fuel and energy prices like elsewhere in the world but a construction ban in connection with the presidential election in May 2022 didn’t help either. Both CRH and Cemex Philippines reported a similar situation in their financial results. However, Eagle Cement did manage to raise its revenue in the same period.
The Tariff Commission has been explicit with its opinion about the impact of imports upon the local cement sector. Investment by the local producers has been forthcoming with a number of new plants and upgrades on the way. Finally, despite the market recovering since 2020, there has been less growth in the first half of 2022 due to global energy prices and the country’s elections. This last point has handed a gift to the cement producers as any further reductions in growth can be blamed on imports, whether it is connected or not. One thing is certain, if or when the safeguard measures are lifted, then the regular calls to restrict imports will resume just like they did prior to 2019.
El Salvador: Holcim El Salvador plans to invest up to US$50m over the next three years to help it generate 70% of the energy it uses. It plans to build a 17MW solar plant and a wind farm to enable this, according to La Prensa Gráfica newspaper. The investment will also help the subsidiary of Switzerland-based Holcim to progress towards its net-zero sustainability goals. The solar project has a budget of US$19m and will be built in agreement with AES Corporation. It will be located at Holcim’s integrated El Ronco cement plant. It will supply 21% of the energy used at both the El Ronco and Maya cement plants.
The investment has also included the installation of a solid waste shredder earlier in 2022. Its official inauguration is planned for mid-November 2022. Holcim El Salvador reached a 30% alternative fuels substitution rate in October 2022.
Ivory Coast: The local cement sector is preparing to reach a production capacity of 20Mt/yr by the end of 2022. Albert Kouatelay, director of deputy cabinet of the Ivorian Minister of Trade, Industry and Promotion of SMEs, made the comment at the launch event for LafargeHolcim Côte d'Ivoire's new white cement product, according to the Agence de Presse Africaine. The country has 13 cement plants and the latest boost is expected once a new cement unit starts operation. Domestic production capacity was reportedly 2.4Mt/yr in 2011, 12.5Mt/yr in 2019 and 17Mt/yr in 2022.
Holcim invests in COBOD International
07 October 2022Denmark: Switzerland-based Holcim has made an investment in 3D concrete printer supplier COBOD International. Holcim hopes that the investment will help it to further expand its TectorPrint 3D printing ink range. Holcim and COBOD International's collaboration dates to 2019, since which time the partners have 3D printed windmill tower bases in Denmark, a school in Malawi and a housing development in Kenya.
Holcim's head of global research and development Edelio Bermejo said “At Holcim, we are continuously expanding our range of building solutions to build better with less, working to improve living standards for all in a sustainable way. 3D concrete printing will help us meet these goals."
Holcim and TotalEnergies to work together on decarbonising upgrade to Obourg cement plant in Belgium
05 October 2022Belgium: Holcim and TotalEnergies have signed a memorandum of understanding (MOU) to work towards the full decarbonisation of the Obourg cement plant. Various energies and technologies will be assessed for the capture, utilisation and sequestration (CCUS) of around 1.3Mt/yr of CO2 emitted by the unit. The project will include working towards building an oxyfuel switchable kiln as part of an upgrade project at the plant and the transportation and use of the captured CO2 by TotalEnergies for a synthetic fuel producing scheme and/or deposit in geological storage in the North Sea.
TotalEnergies will also assess the development of renewable projects to power a new electrolyser, which would generate the green hydrogen needed to produce synthetic fuels. This new renewable energy production capacity would also power Holcim’s new oxyfuel kiln. Finally, the oxygen emitted by the electrolyser would be used to fuel the new kiln.
Bart Daneels, the chief executive officer of Holcim Belgium said “Cement industry decarbonisation is extremely challenging because of the process's inevitable CO2 emissions, which put us firmly in the hard-to-abate sector. CCUS is vital for Obourg to become the first net carbon neutral clinker plant in northwest Europe. We are very happy to work with TotalEnergies to accelerate the development of these CCUS solutions for GO4ZERO. By joining the first movers, we want to set the standards for future clinker manufacturing plants.”
Update on Kenya, September 2022
28 September 2022Nigerian billionaire Aliko Dangote was spotted attending the inauguration ceremony of Kenyan President William Ruto earlier in September 2022. This is relevant because Dangote’s cement company previously announced plans in 2016 to build two 1.5Mt/yr plants in Kenya, near Nairobi and Mombasa respectively. They were intended to become operational by 2021. Unfortunately, Dangote himself allegedly described Kenya as being more corrupt than Nigeria to Kenyan broadcast journalist Jeff Koinange a few years later and nothing more happened. Back in 2014 Ruto visited Dangote Cement’s Obajana plant in Kogi state in Nigeria when the politician was the Deputy President of Kenya. Dangote’s attendance at the presidential inauguration this month suggests at the very least that his relationship with Ruto remains active. Maybe more news on those planned plants will follow.
Graph 1: Cement in Kenya, 2018 – June 2022. Source: Kenya National Bureau of Statistics (KNBS).
The reason why the owner of Africa’s largest cement company might be interested in the Kenyan market can be seen in its latest cement production figures. Data from the Kenya National Bureau of Statistics (KNBS) shows that production for the first half of 2022 grew by 20% year-on-year to 4.95Mt in the first half of 2022, from 4.12Mt in the same period in 2021. Cement production was broadly similar in 2018 and 2019 at around 6Mt. It then increased by 25% to 9.25Mt in 2021 from 7.41Mt in 2020. On a rolling annual basis, production picked up at the start of 2020 and has risen consistently since then each month, peaking at over 10Mt in May 2022.
However, the elections in August 2022 probably slowed this growth trend, despite being much more peaceful than those in 2007, although the KNBS is yet to release the data. Bamburi Cement said in its outlook for the second half of 2022 that it expected markets to recover after the ballot. The subsidiary of Holcim reported increasing turnover in the first half of 2022, due to mounting sales volumes and price rises, but its profit fell sharply. It blamed this on fuel and logistics inflation, growing clinker import costs as well as negative currency exchange effects.
That last point about imported clinker is worth noting given that a government report in late 2021 found that the country had a clinker shortage of up to 3.3Mt/yr. Yet, the KNBS data in recent years shows that cement production and consumption are broadly similar, suggesting that the shortfall in clinker is being imported. The report added that 59% of the imported clinker originated from Egypt, tariff free, due to a free trade agreement. Local producers were reported to have been operating at a 65% capacity utilisation rate. Egypt and the UAE accounted for most of the imported clinker followed by Saudi Arabia. An interview in the Standard newspaper at this time with Bamburi Cement’s managing director Seddiq Hassani revealed that, despite locally produced clinker being cheaper than imported clinker, some producers were reluctant to hand control of a key input material over to their local competitors. Other producers, predictably, were trying to persuade the government to raise the duty on imports of clinker from 10% to 25%. Tariff discussions have continued in 2022.
So far in 2022 the other big stories in the sector have included Bamburi Cement’s plans to build two solar power plants and a major repair to the kiln shell at East Africa Portland Cement’s (EAPCC) Athi River cement plant. The solar plants will be built next to Bamburi Cement’s integrated Mombasa plant and its Nairobi grinding plant. Once operational in 2023 they are anticipated to supply up to 40% of the cement producer’s total power supply. Devki Group, the owner of National Cement, also announced plans in August 2022 to set up a wind farm near Mombasa. However, this seems more like an attempt to diversify the group into electricity production rather than to supply its own plant near Nairobi. EAPCC’s upgrade project has completed this week after about a month and half of work. It is intended to increase the plant’s cement production by 50%.
Cement production started in rise in 2020 but the Covid-19 pandemic may have constrained this. Production (and consumption) then jumped up in 2021 and looks set to do similar in 2022 bar a possible blip from the elections in August 2022. This is despite the global market issues arising from the end of Covid-19 and the war in Ukraine. These may be uncertain times but the fundamentals for the Kenyan cement market look positive despite rising end prices. Unsurprisingly, it looks likely that Dangote Cement remains keen to extend its business to Kenya.
Carmen Díaz appointed as director general of LafargeHolcim España
28 September 2022Spain: LafargeHolcim España has appointed Carmen Díaz appointed as its director general. She succeeds Isidoro Miranda in the position and will report to Miljan Gutovic, Region Head EMEA at Holcim Group.
Díaz trained as a chemical engineer from the University of Oviedo and has taken the General Management Program (PDG) from the IESE Business School. She started working for Lafarge in 2002 as the head of its concrete business in Spain. She held the position of VP Commercial Performance in 2014 with responsibility for 30 countries. Later she became the Head of Ready-Mix Commercial and then the General Manager for the ReadySet Mix Digital Venture. Most recently she was worked as the Commercial Director of Spain for LafargeHolcim.
Three cement producers among Spanish pollution top 10 in 2021
28 September 2022Spain: Sustainability Observatory's Decarbonisation 2022 report has named FCC, Cemex and Holcim on a list of Spain's top 10 CO2 emitters. Construction conglomerate FCC, parent company of Cementos Portland Valderrivas, was the seventh largest contributor the country's CO2 emissions during the year. Mexico-based Cemex placed joint eighth with energy provider Iberdrola at 2.4Mt-worth of CO2 emissions in 2021, followed by Switzerland-based Holcim with 2Mt.
Spanish CO2 emissions grew by 5.1% year-on-year in 2021, and by 3% across industries subject to emissions credit trading, which include the cement sector. Together, the top 10 emitters accounted for 57% of these industries' emissions, and 19% of total national emissions.