Displaying items by tag: LafargeHolcim

US: Switzerland-based LafargeHolcim has become a founder member of the MIT Climate and Sustainability Consortium with the Massachusetts Institute of Technology (MIT). The group says that the consortium aims to accelerate climate action through innovation. It says that it will represent the building materials industry in working with MIT’s research team to develop ‘scalable solutions’ to tackle climate change. It joins 12 other companies, including Apple, Boeing and IBM.

Chief executive officer Jan Jenisch said, “I am committed to building a net zero future, driving innovative and sustainable building solutions that work for people and the planet. With the urgency of today’s climate crisis, no single organisation can tackle it alone. That’s why I am proud to be joining MIT’s alliance of like-minded industry leaders and academic partners to scale up our climate action together.”

Ghana/Nigeria: LafargeHolcim subsidiary Lafarge Africa plans to sell its 35% subsidiary Continental Blue Investment (CBI) Ghana. CBI Ghana runs the Supacem brand from the Tema Free Zone near Accra. It reportedly started building a cement grinding plant at the site in 2017 for a cost of US$55m.

Canada: LafargeHolcim subsidiary Lafarge Canada, Svante and France-based Total have completed Phase 2 of the CO₂MENT carbon capture and storage (CCS) project at Lafarge Canada’s Richmond cement plant. The completed phase consisted of construction and installation of the CO₂MENT technology to capture and filter the flue gas. Lafarge Canada said that Phase 3, scheduled for construction over the next three years, will include the installation of a liquefaction unit, the development of an expansion project to further reduce emissions and a business case review for further expansion across the Lafarge network

Western Canada president and chief executive officer Brad Kohl said “This has been a turbulent year for business and people due to the Covid-19 pandemic with many large scale projects being put on hold, but the perseverance that the people working at the Richmond cement plant continue to show is evident in the success of Project CO₂MENT.” He added “To continue leading change in the building materials industry means we are always looking to partner with like-minded thought leaders such as Svante and Total. This partnership is showcasing our drive towards a net-zero future, and we are seeing this vision become a reality right now with the completion of this phase.”

Czech Republic: Lafarge Cement has appointed Pavel Zdeněk as its sales director. He is a graduate in economics and trade in construction from the Czech Technical University in Prague. During his professional career, he has worked for companies such as Gfk and Icoma Research, in account management roles, before becoming the director of Soprema for the Czech Republic and Slovakia. His most recent position was a division manager at 3M Czechia, where he was responsible for marketing and sales of industrial tapes and adhesives for the automotive industry.

Spain: LafargeHolcim subsidiary Holcim España has informed the works council and employees of its Jerez de la Frontera cement plant of possible planned changes to the plant’s production structure. The company intends to convert the cement plant into a grinding-only facility. The reasons for the decision were regional overcapacity, falling export volumes and prices and reduced allocations of EU CO₂ emissions credits. It says that under the plan the new grinding plant would continue to serve the market in the region. The communication constitutes the beginning of a collective dismissal process.

General director Isidoro Miranda said that the company wants “to work with the social partners to reach an agreement that allows the continuity of our activity in the town of Jerez.”

Switzerland: Holcim Switzerland has started using three full electric concrete mixer trucks. The subsidiary of LafargeHolcim is working with Designwerk, a Switzerland-based company specialising in the electric mobility sector. Designwerk has equipped a motorless basic chassis of a Volvo vehicle with electric motors for both locomotion and the mixing drum. This is intended to be sustainable and offer quiet driving, mixing and unloading. The three vehicles are expected to save around 90t/yr of CO₂.

The trucks are labeled with the Futuricum brand and are active in the St Gallen, Zurich and Basel regions. The building materials company says that electric vehicles suit concrete logistics because they cover relatively short transport routes and have a fixed starting point with a battery charging station in the Holcim concrete works. Holcim says it obtains the electricity it needs exclusively from renewable energy sources.

Spain: LafargeHolcim has successfully demolished a 78.5m high silo at its Los Barrios Port Terminal in the Port of Algeciras. The company is currently dismantling its unit at the port. A specialised company was hired by the cement producer to conduct the operation following a survey.

LafargeHolcim took what appeared to be a surprising decision this week when it announced it was buying roofing and building envelope producer Firestone Building Products (FSBP). The deal raises eyebrows because it seems to be a departure from the building material producer’s previous dedication to its three major pillars: cement, aggregates and ready-mixed concrete. Yet, it follows the logic of sticking to safer markets both geographically and in terms of sustainability.

First some background. Originally, Global Cement was following the auction for FSBP via its sister publication Global Insulation. Reporting from Bloomberg in December 2020 focused on more obvious bidders such as Ireland-based insulation producer Kingspan and roofing products producer Standard Industries. However, Kingspan has been struggling publicly with fallout from the Grenfell Tower fire inquiry in the UK. Despite not formally supplying any of its products for the tower block in London, it has become embroiled in the allegations of a general culture of cheating safety tests for foam board-based insulation products. At the almost the same time that it dropped out of the FSBP bidding, its chief executive officer (CEO) Gene Murtagh apologised for ‘process shortcomings’ that had been highlighted by the ongoing inquiry. Make of this what you will. No word on why Standard Industries left proceedings but it also seems to part of a consortium trying to take over US-based chemical producer WR Grace. All of this is relevant because, from publicly-available sources, LafargeHolcim appeared to emerge out of nowhere to snaffle up FSBP. However, it seems ludicrous that a company with a revenue of around Euro25bn in 2019 could simply pull something like Euro2.8bn out of its pocket at the last minute. It’s likely it was quietly in the bidding process the whole time.

Back in the early 2010s Lafarge was busy selling off its major ‘non-core’ assets like its gypsum business in the wake of picking up debts from acquisitions like cement-producer Orascom in the Middle East. This then turned into a string of divestments following the merger with Holcim to try and shore up the business along with a general pivot towards concrete as the key end-product as sustainability concerns gathered pace. Producing cement remains a major part of LafargeHolcim’s business but a focus on the whole lifecycle of concrete is vital as a hedge against the high process emissions associated with making clinker. Cement factories run the risk of becoming so-called stranded assets depending on future government regulations.

In its acquisition statement LafargeHolcim played up the sustainability credentials of buying FSBP. It noted that up to 60% of buildings’ energy is lost through roofs and that FSBP’s products help to reduce this. Then it made the link that FSBP’s technologies and products complement LafargeHolcim’s sustainable building solutions like its ECOPact green concrete and its EcoLabel sustainable product range. Later, when LafargeHolcim CEO Jan Jenisch spoke to US broadcaster CNBC he described the move as a ‘perfect fit’ for his company’s goal, “to be the most sustainable and most innovative building materials supplier in the future.” The geographical point of the acquisition hasn’t been dwelt on as much as sustainability but no doubt buying a business based in the US with revenue of US$1.8bn is seen as being far safer than buying, say, a similar concern in East Asia.

Investing in a business that sells products that reduce energy loss in the building envelope follows the trend of the moving sustainability-related risk along the supply chain from cement to concrete and beyond. Ultimately consumers will have to pick up the true carbon price of their buildings, but if building materials producers buy more of the envelope they can spread this cost more thinly and hopefully build up the market in the process. One can also imagine it fitting with the mindset of CEO Jan Jenisch, the former boss of Sika, a company that sells speciality chemicals across a wide range of markets. The real test here is whether LafargeHolcim will buy more companies in the wider building materials sector or if other heavy building materials producers will copy them. If so then the days of heavy building material producers sticking to the three pillars of cement, aggregates and concrete may be numbered.

Romania: Holcim Romania has appointed Bogdan Dobre as its chief executive officer (CEO). He suceeds Horia Adrian, who has held the post for the last three years.

Dobre started working for Holcim Romania in 2000. Originally he worked as Regional Cement Sales Manager before later becoming National Cement Sales Manager and eventually Commercial Director for the company in 2013 until 2020. He graduated from the Organic Chemistry Faculty within Bucharest University and holds an Executive Master of Business Administration (EMBA) from Tiffin University, US.

US: LafargeHolcim has signed an agreement to buy Firestone Building Products from Bridgestone Americas for US$3.4bn. The company said that the new subsidiary recorded estimated net sales of US$1.8bn and earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$270m. The group will finance the deal through cash and debt. It said that the acquisition is a milestone in its transformation to become the ‘global leader in innovative and sustainable building solutions.’

Chief Executive Officer Jan Jenisch said, “I am excited to be entering the highly attractive roofing business. With Firestone Building Products we are strengthening our biggest market, the US, while also building a global growth and innovation platform for the company. Today’s milestone is a strategic leap on our journey to become the global leader in innovative and sustainable building solutions to build a world that works for people and the planet. I have great respect for the high-calibre leadership and expertise of the Firestone Building Products’ team and look forward to welcoming them into the LafargeHolcim family.”