Displaying items by tag: LafargeHolcim

France: LafargeHolcim subsidiary Lafarge France has announced a planned upgrade to its 120,000m³/yr Javel concrete plant involving a capacity reduction to 80,000m3/yr. It says that this corresponds to the significant reduction in the production capacity of the future Mirabeau power station and ’the expectations of residents and public authorities.’ The company has described the project as a ‘modernisation’ and from 2023 it will see at least 50% of its production become low or very-low carbon concrete products.

The producer said, “LafargeHolcim's approach by requesting the withdrawal of the existing authorisation thus consolidates its commitments vis-à-vis the stakeholders in the consultation process. The enforcement of the environmental controls announced by Paris Seine Normandy Ports (HAROPA) will of course be maintained and LafargeHolcim is fully in favour of maintaining the strictest controls on the part of the state services.”

Manoj Kumar Rustagi was on hand yesterday to discuss JSW Cement’s operations in the UAE at the Virtual Middle Eastern Cement Conference. At the event, jointly organised by Global Cement Magazine and the Arab Union for Cement and Building Materials (AUCBM), Rustagi mainly stuck to the development of the producer’s new integrated plant in the Fujairah Free Zone but he also gave an overview of JSW Cement’s presence in India. For example, as part of an industrial conglomerate, JSW Group, the cement producer benefits from links to steel production by JSW Steel that enables it to use blast furnace slag. Notably, JSW Cement’s Shiva Cement subsidiary announced plans at the end of November 2020 to spend around US$200m on a new 1.4Mt/yr integrated cement plant in Sundergarh district, Odisha with the clinker production line supplied by ThyssenKrupp Industries India.

JSW Cement is not alone in ordering new production capacity. This week, UltraTech Cement approved a planned increase of 12.87Mt/yr for around US$740m. This is in addition to new capacity projects of 6.7Mt/yr that are currently underway. All of these new projects are scheduled to be commissioned in a phased manner by the end of the 2023 Indian financial year (by March 2023). It is unclear at present how exactly these projects are distributed but they are centred in the Northern, Central and Western Zones of the country, and the new tranche includes the previously announced Pali plant in Rajasthan. At this price the inference is that the much of the new capacity will be in the form of grinding plants and/or upgrades to existing clinker lines. Around the same time as this, LafargeHolcim said it wants to spend US$112m on waste heat recovery (WHR) plants for six of its cement plants in India by the end of 2022.

Graph 1: Change in Indian cement production year-on-year (%). Source: Office of the Economic Adviser.

These three projects by major producers suggest that the Indian cement sector is recovering from the effects of the coronavirus lockdown in late March 2020. Graph 1 above shows the sector finally recovering in October 2020, with growth of 3% year-on-year to 26.9Mt. Kumar Mangalam Birla, the chairman of Aditya Birla Group, credited the economic situation with the Indian government’s Atmanirbhar Bharat stimulus program for his decision to commit to UltraTech Cement’s spending spree. This outlook gels with that of Fitch Ratings. The credit ratings agency has forecast in a recent report that ‘strong’ margins during the first half of the 2021 financial year (April – September 2020) are going to limit the financial risks to the larger Indian cement companies despite the lower cement sales volumes due to coronavirus. Pent-up demand helped the industry recover after the lockdown and this was further aided by lower energy/fuel costs and general cost cutting.

Needless to say all of the above is good news for the Indian cement industry after the year it has had. One thought to consider from all of this is who might UltraTech Cement order its mills and clinker lines from? Atmanirbhar, the name of the Indian stimulus plan, has been described as ‘self-reliance’ or ‘self-sufficiency’ in the local press. Unfortunately, relations have been poor between India and China in 2020 due to armed skirmishes along the Line of Actual Control on the border, amongst other issues. Ordering a new clinker production line from, say China-based Sinoma, may not look especially ‘self-sufficient’ in the current climate.

The proceedings pack and video from the Virtual Middle Eastern Cement Conference 2020 is availabe to buy now

France: LafargeHolcim subsidiary Lafarge France has installed a new rotary kiln at its Martres-Tolosane cement plant. The installation is part of a Euro120m project to build a new production line at the site. The work will also increase the plant’s alternative fuels (AF) substitution rate to 80% from 30%.

The company said, “Once completed the work will increase the productivity of the cement plant, while reducing its environmental impact. The plant will be equipped with the latest environmental technologies, thus increasing the share of energy recovery from waste and its use in the production of clinker. The work will reduce energy consumption, reduce the carbon dioxide (CO₂) footprint by 25% - 30% per tonne of cement and create local circular economy loops with partners in the greater South-West.” The on-going upgrade to the plant is on schedule for completion in November 2021.

Bangladesh: LafargeHolcim subsidiary LafargeHolcim Bangladesh has donated US$117,000 to the Bangladesh Labour Welfare Foundation (BLWF) fund. The New Nation newspaper has reported that State Minister for Labour and Employment Monnujan Sufian received the cheque on behalf of the BLWF, which in 2020 supported 10,500 workers with US$5.2m-worth of financial support.

India: Switzerland-based LafargeHolcim plans to invest US$112m in implementing waste heat recovery (WHR) plants across six of its cement plants in India by the end of 2022. The group has estimated a net carbon dioxide (CO₂) emissions reduction of 0.5Mt/yr as a result of the installations, towards its target of a 65% total reduction between 2018 and 2030.

Chief Sustainability Officer (CSO) Magali Anderson said, "On our net zero journey, we set ourselves an ambitious scope-two target. I am very excited to see India leading the way by investing US$112m in WHR. This major step forward builds on our procurement teams’ work in renewable energy."

When commissioned, the new plants will double the group’s WHR power generation capacity in India.

Kenya: LafargeHolcim subsidiary Bamburi Cement has made a donation of personal protective equipment (PPE) worth US$46,800 to coronavirus rapid response teams and 11 health facilities in Kajiado, Kilifi, Kwale, Machakos and Mombasa Counties. The company said that the donations include “N95 masks, surgical gloves, coveralls, goggles, face shields and shoe covers.” This will constitute part of the US$140,000 donations promised by the company to “support the fight against the spread of Covid-19.”

Group managing director Seddiq Hassani said, "During the cheque handover to the Covid-19 Emergency Response Fund Board earlier this year, we committed to continued support to Covid-19 management efforts and therefore, with the escalating numbers of Covid-19 cases, today we fulfil our promise with this donation to our frontline healthcare workers who continue to serve with fortitude by ensuring that they remain safe while serving Kenyans. We value their priceless role in battling Coronavirus.” He added, “We care for the community and we are determined to be part of the solution to this pandemic and make a difference for the benefit of us all.”

Bangladesh: LafargeHolcim Group subsidiary LafargeHolcim Bangladesh has launched Holcim Water Protect, a water-resistant cement “developed through the company’s in-house product innovation and manufacturing capabilities in collaboration with the Innovation Centre of LafargeHolcim Group.” The product is “scientifically formulated and customised for the Bangladesh market by leveraging LafargeHolcim Group’s Smart Blend Technology (SBT). Holcim Water Protect ensures reduced capillary action, resisting the permeation of water thus making it damp and seepage resistant.” The company says that use of the product will result in “stronger and more durable homes” compared to Ordinary Portland Cement (OPC).

Chief executive officer (CEO) Rajesh Surana said, “We are delighted to introduce our most innovative and premium product Holcim Water Protect for our customers in Bangladesh. This product has been developed through continuous consumer engagement, research and thorough understanding of the damaging impact of water on houses. Given the heavy rainfall in Bangladesh, we believe that Holcim Water Protect shall help our customers build their dream homes, free from dampness and seepages.”

Zimbabwe: LafargeHolcim subsidiary Lafarge Cement Zimbabwe has said that cement demand has increased by 34% quarter-on-quarter in the third quarter of 2020 following the end of the national coronavirus lockdown. Business Weekly News has reported that the company said that cement demand in July 2020 was the highest in that month since July 2003 due to a 7% year-on-year sales rise.

Company chair Kumbirai Katsande said, “As business activity progressively continued to gain momentum into the third quarter of 2020, the demand for cement consequently outstripped supply, causing considerable supply backlog.” Katsande said that the shortage will ease as demand decreases “associated with rainfall” in the fourth quarter of 2020.

There were mixed feelings evoked by HeidelbergCement’s good news last week that its French subsidiary Ciments Calcia is to set to spend Euro400m on a modernisation project. Sadly, this came with the bad news that the integrated plants at Gargenville and Cruas will be downgraded into a grinding plant and a terminal respectively, and there will be a review of the company’s headquarters in Guerville. All of this will cut 160 jobs but create 20 new ones.

Make no mistake, this is serious money to invest. Euro300m alone will go towards an upgrade of the integrated Airvault cement plant in the former Poitou-Charentes administrative region. HeidelbergCement didn’t say it in its press release but French press reported that the pyroprocessing line at Airvault will be rebuilt starting in 2022 with commissioning scheduled for 2025. If correct then this certainly suits an investment on this scale for a single plant. Smaller investments in the region of Euro25 – 50m were also said be earmarked for the integrated plants at Bussac-Forêt, Beaucaire and Couvrot. These are serious commitments to HeidelbergCement’s production base in France.

Generally speaking, the French cement and construction market has done as well as expected for a country forced to implement two coronavirus lockdowns so far in 2020. Half-way through the year the major cement producers were reporting sales declines of around 10% year-on-year with business picking up again over the summer. Vicat, for example, reported a 9% fall in sales volumes in the first half followed by ‘solid business growth’ in June 2020. LafargeHolcim, CRH and HeidelbergCement all reported a similar situation for their local subsidiaries.

Looking at the wider construction industry, in October 2020 analyst company GlobalData stuck by its forecast of a contraction of construction output by 11.6% in France in 2020. It noted a 35.5% quarter-on-quarter rebound in the third quarter, although it reckoned output was still down by around 5% in the quarter year-on-year, using French National Institute of Statistics and Economic Studies (INSEE) data. With a second national lockdown initiated in late October 2020, it said that INSEE expected a contraction in the fourth quarter of 2020 even with construction sites being allowed to stay open. This follows a peak of cement production above 20Mt in the late 2000s before hitting a low of around 15.5Mt in 2015 and a gradual recovery since then, according to data from the French cement industry union (SFIC).

Ciments Calcia’s upgrade at Airvault is noteworthy for the whole of Europe because it is one of only a few new pyroprocessing line projects in the last decade. The last major one was the new 4000t/day line at HeidelbergCement’s Burglengenfeld plant in Germany that was commissioned in 2018. The trend since then has generally been one of integrated plants slowly closing as markets shrank following the 2008 financial crisis, international clinker levels boomed and environmental measures tightened. Dominik von Achten, chairman of the managing board of HeidelbergCement, addressed this last point directly with the announcement of the Airvault project when he said, “This is why we focus our initiatives on the main CO₂-emitting plants in France.” The competitors to the larger established cement producers in France are certainly thinking about CO₂. Alongside the general European trend of fewer new clinker production lines has been rise in France of the smaller cement producers with grinding and/or reduced-clinker factor models like Cem’In’Eu, Hoffmann Green Cement Technologies and Ecocem. Anyone spending Euro300m on a clinker kiln spewing out CO₂ would do well to consider how much the CO₂ price might be in fifty years time.

Americas: Switzerland-based LafargeHolcim has begun its roll-out of ECOPact low-carbon concretes in its Latin America region, launching the product range in Ecuador, Colombia and Mexico to “meet growing demand for green products.” The company says that the launch in other markets will follow in early 2021. It said “this roll-out of ECOPact builds on its successful market adoption across Europe, the UK, the US and Canada.” The producer additionally plans to introduce its ECOLabel “to transparently communicate the environmental benefits of its green cement range” across the Disensa retail network from December 2020, enabling customers to “easily identify products that comply with the company’s green criteria, including lower carbon dioxide (CO₂) footprint and recycled content.” Every country in the region will have at least one ECOlabel product, according to the company.

Latin America regional head Oliver Osswald said, “With the roll-out of the widest range of green building materials in Latin America, we are committed to leading the way in sustainable construction. Building on our region’s excellent third quarter 2020 results, demonstrating strong resilience despite an unparalleled health crisis, Latin America is well positioned to tackle the challenges ahead. We have a clear and unified strategy supported by two strong pillars: a rapidly expanding Disensa retail franchise network, and a fully orchestrated regional push toward green building solutions.”

LafargeHolcim’s Latin America retail network Disensa will reach 2500 stores in 2020, almost double the number in 2018. The company said, “Disensa will become the central network to reach millions of consumers with a diverse product portfolio, based on quality and environmental benefits by offering ECOLabel products on a wide scale. Disensa will also introduce new digital experiences to the buying process and eventually become a full line of stores from Disensa Express to Disensa MAX!”

LafargeHolcim will host the First Latam Virtual Convention for current and potential Disensa franchisees from 25 – 27 November 2020, with participants from eight Latin American countries.