Displaying items by tag: Raw Materials

Nigeria: Raw material costs for a group of major local manufacturers – including BUA Cement, Dangote Cement and Lafarge Africa – accounted for 24% of revenue in 2022. The increase in the cost of raw materials was driven by a shortage of foreign currency, raw material availability, logistics issues at ports and rising energy costs, according to the This Day newspaper. BUA Cement’s spending on raw materials rose by 9% year-on-year to US$54.3m in 2022, Dangote Cement’s spend grew by 12% to US$427m and Lafarge Africa’s expenditure increased by 32% to US$106m. The other companies included as part of the grouping included BUA Foods, Nestlé Nigeria, Cadbury Nigeria, Nigerian Breweries and Dangote Sugar Refinery.

Ethiopia: China-based Sinoma International Engineering has signed an agreement with National West International Holding (WIH) Building Materials to build an industrial park development project at Dire Dawa. The project has an investment of US$600m and will include a 6000t/day cement plant and a 1000t/day lime unit, according to the Xinhua News Agency. The proposed industrial park is relatively close to the Port of Djibouti, in neighbouring Djibouti, to allow for access to raw materials and potential export markets.

WIH, a joint-venture between companies based in Ethiopia and China, already operates a cement plant at Lemi in Amhara Region.

Mexico: Holcim Mexico has commenced production of its Fuerte Más reduced-CO₂ cement at its cement plants in Macuspana and Tabasco at a combined rate of 60,000t/yr. The cement offers 50% reduced CO₂ emissions and 10% higher physical performance than ordinary Portland cement (OPC). The El Economista newspaper has reported that Holcim Mexico replaces some of the clinker in the cement with locally-sourced minerals from Southeast Mexico. Chemical compounds in the material colour the cement red.

The Centre for Technological Innovation for Construction (CITEC) Toluca verified the product as suitable for all applications. Holcim Mexico's industrial director Adrián Belli said that comparable green cements are currently only available in France and Italy.

Philippines: Holcim Philippines recorded sales of US$490m during 2022, down by 1% year-on-year from US$499m. Sales rose by 9% year-on-year to US$266m during the second half of the year, 53% of the full-year figure. Throughout the year, the producer increased its alternative fuel (AF) substitution rate by 20% year-on-year and processed 1Mt of waste from industrial partners and local government bodies. Digitisation initiatives and alternative raw materials substitution helped the producer to reduce its specific CO₂ emissions by 7%. The Business Mirror newspaper has reported that the year also brought 'surging' energy and fuel costs for the producer.

President and CEO Horia Adrian said "In the face of extraordinary challenges, our company and people displayed tremendous resilience that enabled us to deliver positive financial performance and contribute to building progress in the country. Alongside a strong sales rebound in the second half and expansion of our customer base, we accelerated the decarbonisation of our operations."

Portugal: Secil says that it will commission its Outão cement plant's new line, called a Clean Cement Line, in mid-2023. The line will produce Portland limestone cement (PLC).

Jornal de Negócios News has reported that this will increase the producer's consumption of limestone, for which its already partly relies on imports. Secil has submitted an application to expand its limestone mines, entitled New Quarry Plan, to the Portuguese Environment Agency. Under the plan, Secil will connect it Vale de Mós A and Vale de Mós B quarries. It will thereby secure sufficient supply to become entirely reliant on mined limestone in its cement production. The plans also leave a 27 hectare 'plateau' at the site, which will be available for other uses.

Paraguay: Industria Nacional del Cemento (INC) has suspended cement production and despatches at its Vallemí cement plant in Concepción. The La Nación newspaper has reported that torrential rain washed away raw materials stocks stored at the site. INC expects the plant to remain shut until 17 March 2023. It reassured customers that its Villeta grinding plant will continue to despatch cement as usual. CEO Ernesto Benítez said that it was 'inconceivable' that the suspension would not disrupt the domestic cement supply, given INC's 40% market share.

India: Indian Railways has shared plans to establish dedicated rail corridors to supply raw materials to the cement sector. The Times of India newspaper has reported that the corridors will connect plants to sources of clinker, fly ash and limestone. Indian Railways says that the plans encompass ‘different parts of the country,’ and will be implemented over the 10-year period up to the end of the 2033 financial year. In addition to offering ‘better service’ and ‘attractive’ prices, the rail company will also carry out capital expenditure investments in order to maximise the volume of materials travelling on its cement corridors.

Bangladesh: The European Union (EU) and Spanish ambassadors and Swiss chargé d'affaires to Bangladesh have formally requested that Bangladeshi authorities lift all restrictions on LafargeHolcim Bangladesh's sale of crushed limestone in the country. The Financial Express newspaper has reported that Bangladeshi court previously ruled in favour of LafargeHolcim Bangladesh's right to sell its crushed limestone 'on the open market' on 5 January 2022. Limestone Importers and Suppliers Group had challenged the legal status of such sales, given that the raw limestone used in LafargeHolcim Bangladesh's produces its crushed limestone production is imported from India.

The Bangladesh government granted LafargeHolcim Bangladesh, a subsidiary of Switzerland-based Holcim, a temporary licence to resume its crushed limestone operations on 27 March 2022. This resulted in protests by local limestone producers.

US: Holcim has signed an agreement with Duro-Last to acquire the roofing systems producer for US$1.29bn. Reuters has reported that the acquisition will be Holcim's largest for all of 2022 and 2023 so far. Once the parties complete the transaction, Duro-Last's business will join Holcim's products and systems division. Holcim expects the deal to yield synergies of US$60m/yr, primarily through a reduction in the cost of materials.

Holcim expects its products and systems division to contribute a majority of its profit in North America once increased investment under the US government's Inflation Reduction Act begins to take effect. In 2022, the division accounted for 40% of regional profit. The group is committed to a global target of 30% of sales being attributable to the products and systems division by 2025, compared to 19% of sales in 2022.

India: Birla Corporation recorded nine-month consolidated sales of US$751m so far in the 2023 financial year, up by 20% year-on-year from US$628m in the first nine months of the 2022 financial year. The company made a net loss of US$5.37m however, compared to a net profit of US$34.7m during the first nine months of the 2022 financial year.

Birla Corporation did not publish a figure for fuel and electricity costs, however its raw materials costs rose by 25% year-on-year to US$111m, while its 'other expenses' more than doubled to US$565m.