Displaying items by tag: LafargeHolcim

India: Ambuja Cement, part of LafargeHolcim, reported a 71% jump year-on-year in its consolidated net profit to US$127.9m during the first quarter of 2021, compared to a profit of US$74.8m in the same period of 2020. Managing Director Neeraj Akhoury said, "Indian demand growth has been strong in the last quarter, which has also helped the sales volume growth and commercial performance.”
Akhoury added that, despite strong and continuing headwinds with regards to input prices, including coal, petcoke and diesel, the company had made significant progress on efficiency improvement, which had a positive impact on cost evolution.

Brazil: CSN’s Cement Director Edvaldo Rabelo has said his company is ‘attentive to opportunities’ in a call with analysts that discussed LafargeHolcim’s rumoured exit from the Brazilian cement market, according to Reuters. Rabelo said that the move had been expected, while CSN’s chief executive officer Benjamin Steinbruch reportedly added that the company was interested in ‘potential merger and acquisition activity’ in its cement business.

Argentina: Holcim Argentina, part of Switzerland-based LafargeHolcim, has announced plans to open 1000 new branches of its Disensa retail chain by 2024. The Diario Financiero newspaper has reported that the chain opened 40 new locations during 2020.

General manager Natalia Soler said, "Being considered an essential sector, builders merchants continued to operate during quarantine. This scenario benefited us, coupled with the number of customers who took advantage of the context and their savings to make repairs to their homes."

El Salvador: Holcim el Salvador, part of Switzerland-based LafargeHolcim, has invested US$4.0m in the first four months of 2021 in establishing three new 70m³/hr-capacity ready-mix concrete plants and one aggregates plant. The La Prensa Grafica newspaper has reported that the plants have increased the company’s concrete production capacity by 60%. The concrete plants are situated at Apopa, La Paz and Sonsonate, enabling the producer to serve a wide area. The new plants have generated 100 direct and indirect jobs. As part of the investment, the company acquired 22 new concrete trucks. It plans to establish two further concrete plants at Santa Ana and in eastern El Salvador in 2021.

Concrete and aggregates manager Guillermo Torres said “We intend to have national coverage for all builders of all types and sizes.” He added “We have seen a rebound in the construction sector. The main bet is always high-rise, medium and high-end housing, small-scale shopping centres with open concepts, textile industrial buildings plus government investment in roads and maintenance and extension.”

Switzerland: LafargeHolcim’s first-quarter consolidated net sales rose by 1% year-on-year to Euro4.86bn in 2021 from Euro4.79bn in 2020. Its recurring earnings before interest and taxation (EBIT) doubled to Euro478m from Euro237m. Cement sales volumes grew by 5.5% to 47.3Mt and ready-mixed concrete by 2.7% to 10.1Mm³. The group said that it anticipates growth to accelerate in 2021. It expects to achieve its Strategy 2022 targets one year ahead of time.

During the quarter, the group concluded its acquisition of US-based Firestone Building Products and received an A1+ social, environmental and governance rating from UK-based Vigeo.

Germany: Holcim Deutschland, part of Switzerland-based LafargeHolcim, has launched its new ECOPlanet Zero carbon neutral cement. The producer says that it will offset the product’s CO₂ emissions through a peatland rewetting service provided by MoorFutures. The cement also has a low clinker factor due to the use of ground granulated blast furnace slag (GGBFS)-enriched binders.

Cement and binders sales director Matthias von der Brelje said “Holcim has been reducing the specific CO₂ emissions of binders very effectively for decades by using high-quality GGBFS.” He added, “In the future, we want to work with planners, contracting agencies and users to further advance the use of our CO₂-reduced binders. This helps our customers to realise their vision of sustainable building even better. In terms of product technology, the ECOPlanet series also has outstanding - and in some cases even better - properties than Portland cements, for example good workability, light colour, favourable heat development and high fatigue strength.”

Mexico: Holcim Mexico, part of Switzerland-based LafargeHolcim, has launched the new EcoEtiquetas label. The label designates products conforming to a set of ecological criteria set by the company. These include a certain level of recycled content or a reduced carbon footprint, as specified by the label on each product. The label is now found on Holcim Apasco, Maestro and Supra Cemento cement bags. These products say they offer CO₂ reductions from 30 – 60% compared to Ordinary Portland Cement.

Chief executive officer Jaime Hill Tinoco said, “This is one more step on our way to becoming a Net Zero Company, but also when our clients buy our cements with EcoEtiquetas, they will have the certainty that they are collaborating in the care of the environment by using or distributing products that have been thought not only in terms of quality and performance, but also in ensuring a better world for present and future generations.”

LafargeHolcim retained its ability to surprise this week with the news that it may be making preparations to leave Brazil. Local press in Minas Gerais revealed on 20 April 2021 that the company was about to try and sell its operations in the country. The building materials producer has not made a public statement yet on the matter, it may not until a deal is done and/or this could all be a great big misunderstanding. So treat the following with caution.

Firstly, LafargeHolcim deciding to sell in Brazil fits with the selective approach increasingly shown by the non-Chinese cement multinationals in recent years. It famously decided to sell up in South-East Asia from 2018 and it got as far as divesting assets in Indonesia and Malaysia. It also tried to sell in the Philippines but the local competition commission didn’t give permission for the proposed deal in the end. As Global Cement Weekly mentioned at the time this was a bold move and doing the same in Brazil seems similarly decisive now. It’s a big market to leave! CRH and HeidelbergCement have both talked openly as well about taking a value-first approach to their divestment strategies rather than trying to retain blanket coverage. However, just because a sale in Brazil by LafargeHolcim sounds right doesn’t mean it is right.

Secondly, data from the National Cement Industry Association (SNIC) shows that the Brazilian cement industry had a good year in 2020. Despite the relentlessly bad news from the coronavirus pandemic, the Brazilian government decided to keep the economy mostly open, allowing the cement industry to continue its recovery since 2018. The sector reported an 11% rise year-on-year in cement sales to 60Mt in 2020. So far in 2021 it has noted a 19% rise year-on-year to 15.3Mt in the first quarter of 2021. Yet, the association forecast slower growth in 2021 as a whole and has warned that the first quarter figures in 2021 don’t show a true picture due to a decline in sales per working day so far in 2021 despite an apparent growth in absolute figures. On the surface it’s a good time to sell cement assets in the country since the sector has been riding a recovery but the general outlook for the country is looking gloomy especially considering the ongoing scale of its coronavirus outbreak and the uncertain damage this may do to the economy as a whole.

Whether or not LafargeHolcim is actually selling up in Brazil or not it, follows the conclusion of the CRH Brazil acquisition by Buzzi Unicem’s Companhia Nacional de Cimento (CNC) joint-venture that was also announced this week after approval by the completion authority. The assets that CRH Brasil has now sold include three integrated cement plants and two grinding plants in the south-east of the country. The subsidiary sold approximately 2.8Mt of cement in 2020. If nothing else this suggests that there should be companies out there pursuing a different strategy to LafargeHolcim, CRH, HeidelbergCement and the rest who will be only too happy to build their portfolio if LafargeHolcim’s Brazilian business does go on sale.

CRH originally bought its plants in Brazil as part of a package deal when Lafarge and Holcim merged in 2015 and any potential sales by LafargeHolcim also link back to this. LafargeHolcim has spent much of the last six years working out what kind of company it wants to be. Certainly, since the current chief executive officer Jan Jenisch took charge it has had the air of a company with a mission. The Firestone Building Products acquisition earlier in 2021 is an example of this, propelling the group away from the triad of cement, concrete and aggregates as the carbon risks of heavy building materials heat up. There is something fitting perhaps that at the company’s next annual general meeting its shareholders will be asked whether they want to change the company’s name to Holcim at the group level. It’s a small thing, all market brands will remain as they are, but it may bookend the post-merger era as much as asset divestments in Indonesia and... potentially Brazil.

Kenya: Bamburi Cement has appointed John Stull as a non-executive director following the resignation of Pierre Deleplanque. The latter was appointed to the company’s board in mid-2018 and is its Area Manager - East, South Africa & Indian Ocean.

Stull, an American national, is the Head of Strategy and Mergers & Acquisitions for LafargeHolcim Middle East & Africa region, and has over 28 years’ experience in the LafargeHolcim Group having joined it in 1992 as Operations Manager, Alpena Michigan - USA. In 1996 he was promoted to Vice President, Manufacturing - USA Region, and thereafter held several leadership positions including: President, Missouri Division, Ready Mix and Aggregates; Senior Vice President, Marketing and Supply Chain - Lafarge France; Regional President, Sub-Saharan Africa; President and Chief Executive Officer (CEO) LafargeHolcim USA; CEO US CEM; and prior to his latest role as President & CEO -LafargeHolcim Philippines. He holds a Bachelor of Science Degree in Chemical Engineering from the University of Akron and an Advanced Management Degree from Harvard University.

Brazil: LafargeHolcim Brasil, part of Switzerland-based LafargeHolcim, is reportedly seeking to sell its assets. The Diario do Comercio newspaper has reported the rumour without detailing its sources. LafargeHolcim has not commented on the matter. However, local government officials in Borosso, Minas Gerais said they were waiting for an official confirmation from the cement producer before they could comment. The newspaper also speculated that the group may have already notified the Brazil government of its intent to sell. Under Brazilian law, any sale would require the approval of the Administrative Council for Economic Defence (CADE). The producer operates three cement plants and two grinding plants in the country.