Displaying items by tag: Ireland

Ireland: Poor sales in the UK and Switzerland have reduced the sales of CRH’s Europe Heavyside division, which includes its European cement operations. The division’s sales revenue fell slightly to Euro6.90bn in 2017 from Euro6.95bn in 2016. Despite this the division reported market recovery in Ireland, France, Poland and Finland. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 7% year-on-year to Euro839m from Euro781m.

Overall, the group’s sales for its continuing operations rose by 1.7% to Euro25.2bn from Euro24.8bn. Its EBITDA rose by 5.6% to Euro3.15bn from Euro2.98bn.

“2017 was a year of continued profit growth for CRH. We benefited from increases in underlying demand in the Americas and positive momentum in Europe, and with focus on performance improvement and operational delivery, margins and returns were ahead of last year in our American and European Divisions,” said chief executive officer (CEO) Albert Manifold.

The group’s Americas Materials division’s sales rose by 5% to Euro7.97bn from Euro7.60bn and earnings rose similarly. The division said that its cement business in North America saw total volumes rise by 3% ahead with ‘marginal’ price increases, supported by stronger demand in the US. It added that the division has continued to optimise its terminal network and market penetration by repositioning more volumes to the US from Canada, where competitive market conditions remain, especially in Quebec.

Ireland/UK: Breedon Aggregates is reportedly in talks to buy a part or all of Ireland’s Lagan Group, according to the Sunday Times newspaper. Breedon Aggregates and Lagan’s subsidiary Whitemountain operate an asphalt joint venture at present. However, Lagan Group did not respond to a request for comment on the talks.

Breedon Aggregates purchased Hope Construction Materials in 2016, which included the Hope cement plant. The acquisition boosted Breedon’s financial results in 2017 giving it a revenue of Euro523m and it described the year as the, “…most eventful year in the group’s history.”

Lagan Cement operates a 0.7Mt/yr plant in Kinnegad in Ireland. In late 2012 it proposed a joint venture with Quinn Building Products. However, the deal fell through in early 2013 following the receipt of a package containing a bullet which was sent in the post to the Lagan's chief executive, Kevin Lagan. The bullet, which was sent to Lagan at his Belfast office, was accompanied by a message stating, "Quinn ... is this what you want".

Ireland: Ernst Bärtschi has retired from the board of CRH. He was appointed to the board of directors in 2011. A Swiss national he was previously the chief executive officer of Sika and had worked for Schindler Group.

The last week marked a step change to the US industry with the news that Ireland’s CRH has agreed to buy Ash Grove Cement. The latter is the largest remaining cement producer still owned by an American company. Its history dates back 135 years to its founding in 1882, with links to the Sunderland family for over a century. Following the acquisition, each of the top five cement producing firms in the US will be operated by multinational corporations based in foreign countries.

Although this scenario is not new to many other countries around the world, it is rare for a nation with a cement industry of this scale. The US is the third biggest cement producer worldwide. Out of the top ten cement producing nations Global Cement Magazine identified in its Top 100 Report 2017 feature in December 2016 only Egypt doesn’t have a local company to match the multinationals. China has China National Building Material (CNBM), for example and India has UltraTech cement and so on and so forth.

The actual sale covers Ash Grove Cement’s eight cement plants and 23 cement terminals, as well as its ready mix concrete and aggregate businesses, for US$3.5bn. Altogether its cement plants have a production capacity of 9.5Mt/yr and this really puts into contrast the Cementir Italia deal last week. HeidelbergCement has agreed to buy that company for around Euro57/t. CRH is buying Ash Grove Cement for US$368/t. That’s more that five times as much!

To be fair they are very different markets, with Italy’s cement sector consolidating near the bottom of a business cycle and the US growing with some promise. For comparison with other recent US acquisitions, CRH is offering to pay about the same as Summit Materials did to Lafarge for a cement plant and seven terminals in mid-2015. Other than that a few of the more recent transactions have been between US$200 – 300/t. The gradual price inflation for cement production capacity indicates that there is confidence in the US cement market.

In terms of CRH’s enhanced presence in North America following the completion of the deal, it currently operates two cement plants in the US: the American Cement Sumterville plant in Florida, a joint venture with Elementia, and the Trident plant in Montana. The CRH US division also runs five terminals in the Midwest and Northeast. This compliments Ash Grove Cement’s presence in the West, Midwest and South. Throw in CRH’s Canadian cement plants in Ontario and Quebec and CRH has the makings of a seriously strong cement business in North America. The only obvious impediment could be the close proximity of the CRH Trident plant and the Ash Grove Cement Montana City plant. Both are in Montana within 115km of each other and they are the only integrated plants in the state. A Federal Trade Commission arranged divestment in this location seems likely.

Ash Grove Cement’s chairman Charlie Sunderland, described CRH as his company’s biggest customer when the acquisition was announced. Buying Ash Grove Cement fills in one more piece in CRH’s construction materials puzzle in North America. Its American divisions have generated more than half of its revenue since at least 2014 dominating asphalt, aggregate and ready mix concrete markets. Yet it has lacked a cement market presence to match this. This changes when the deal with Ash Grove Cement completes.

Ireland: Maeve Carton plans to retire as Group Transformation Director of CRH and from its board on 31 August 2017. Since joining CRH in 1988, Maeve has held a number of senior financial roles prior to joining the board as Finance Director in May 2010. She was appointed Group Transformation Director in January 2016.

Ireland: Ecocem Ireland has appointed Micheál McKittrick as its Managing Director for Ireland and the UK. His role involves the management of all aspects of the Irish and UK operations. McKittrick is a Chartered Engineer and graduate of Trinity College Dublin. He previously worked in several senior roles with Atkins Consulting Engineers.

Once again Ecocem has shone the torch this week for a rare thing within Europe these days: a growing cement company. Its latest project is an import terminal in Sweden, as part of a deal with Bolidan, which launched on 22 September 2016. This supports an arrangement to supply cement for the Boliden Garpenberg mine. The agreement also includes supply for the Boliden Tara Mines in Ireland.

This follows the announcement to build a new slag grinding plant in Dunkirk, France in early September 2016 and the opening of a new terminal in Runcorn, UK earlier in the year. The 1.4Mt/yr Dunkirk plant is a joint-venture with the steelmaker ArcelorMittal, intended to target markets in north of France and in the UK. Once complete it will join Ecocem’s growing collection of grinding units in Ireland, France and the Netherlands. The slag-cement producer operates a 0.35Mt/yr plant at Dublin, a 0.7Mt/yr plant at Fos in the south of France and a 0.35Mt/yr plant at Moerdijk under its subsidiary Orcem Netherlands.

The focus on the UK makes sense given that Ecocem said that it had made commitments to sell more product in the UK in its first year than its total domestic sales in 2016. This followed the situation where, prior to entering the British market, Ecocem had to stop taking orders in the short term due to demand. If this is actually the case then it is unsurprising to note that Ecocem is also building a second UK terminal at Sheerness at the mouth of the River Thames near to London. As an aside, Francis Flower bought the Scunthorpe ground granulated blast furnace slag (GGBS) plant from Hanson Cement in mid-2015 after the local market regulator requested the sale.

As Charlie Zeynel, ZAG International, says in an interview to be published in the October 2016 issues of Global Cement Magazine, that supplementary cementitous materials, including slags, in cement blends has grown worldwide, particularly in Europe and Japan, where GGBS cement represents around 25% and 30% of cement sales respectively. Zeynel goes on to say that GGBS usage is set to rise in other parts of the world, particularly the US, but this helps to explain the market Ecocem is operating in within northern Europe.

Ecocem seems well aware of the potential for slag cements in the US because it is attempting to build a Euro45m grinding plant Vallejo, California under its Orcem Americas subsidiary. The process has so far been dogged by planning problems at the proposed site as well as organised local opposition, which does not want a new industrial plant in the neighbourhood and issues such as the increased traffic it would bring. The irony here is that Ecocem bills itself as an environmentally friendly cement producer. Yet even environmentally-friendly cement needs to be manufactured and taken to site.

To misquote Kermit the Frog: it’s not easy selling green cement. However, Ecocem’s progress in Europe is encouraging both in the UK and the wider area. Roll on the opening of the Sheerness terminal.

Find out more about Ecocem's operations here: www.ecocem.fr/en/

Ireland: Rebecca McDonald has resigned from the board of CRH with immediate effect. The non-executive director for the building materials producer cited family commitments as her reason for resigning.

Ireland: Mark Towe has confirmed his intention to retire from the CRH Board at the end of 2016. Towe, who joined CRH in 1997 and was appointed a CRH Director in July 2008, will continue in his role as Chairman, CRH Americas.

Ireland: CRH appointed William J Teuber, Jr as a non-executive Director with effect from 3 March 2016.

Teuber, aged 64 years and a US citizen, is the Vice Chairman at EMC Corporation, a global leader in enabling businesses and service providers to transform their operations and deliver IT as a service. In previous roles he was responsible for EMC’s global sales and distribution organisation (2006 – 2012) and served as Chief Financial Officer leading the company’s worldwide finance operation (1996 - 2006). Prior to joining EMC he was a partner in the audit and financial advisory services practice of Coopers & Lybrand.

Teuber is a member of the Board of Directors of Popular, a diversified financial services company, and Inovalon Holdings, a healthcare technology company. He holds an MBA degree from Babson College, a Master of Science in Taxation from Bentley College, and a Bachelors Degree from Holy Cross.