Displaying items by tag: Staff

India: Holcim has agreed to sell its Indian business to industry, energy and ports conglomerate Adani Group for US$6.37bn. The assets consist of a 63% stake in Ambuja Cement, which in turn owns 50% of ACC, and a 4.5% direct stake in ACC.

ACC and Ambuja Cement employ 10,700 people and operate 31 cement plants in India. The deal will make Adani Group India’s second-largest cement producer.

Chair Gautam Adani said "With Holcim's global leadership in sustainability, we are acquiring some of the most efficient building materials operations in India, powered with clean technologies like heat recovery systems. We recognise that Ambuja and ACC operations are energy intensive and therefore, when combined with our renewable power generation capabilities, we gain a big head start in the decarbonisation journey that is a must for Indian industry."

Holcim says that its focus is now on expanding its solutions and products business. Reuters News has reported that the group plans to put the proceeds of the assets’ sale towards lower-carbon acquisitions. Its Indian operations contributed 26% of group CO₂ emissions.

CEO Jan Jenisch said "We will always make cement, but we will decarbonise cement.” He added “We are happy to build up other segments like building solutions and products."

Mexico: Cemex has expanded its Executive Variable Compensation program, which includes progress on its carbon reduction goals as a variable, to cover over 4500 executives. The initiative is part of the company's Future in Action program, which focuses on reducing the carbon footprint of Cemex's operations and products to become a net-zero CO2 company by 2050. From the start of 2022, the CO₂ emissions component will have an impact that will range from -10% to +10% in the total cash payout of the annual executive variable compensation.

Cement shortages were being reported in the US media last week in Alabama and South Carolina. The owner of a ready-mixed concrete supplier in South Carolina was blaming it on labour and supply shortages. Dan Crosby, the president of Metrocon, told Fox News that his business could only take on 60% of the work it could normally cope with due to the issue despite demand for construction growing in the state. Meanwhile, the Alabama Concrete Industries Association said that its home state saw a 14% increase in the demand for concrete in 2021 but that a cement shortage might cause delays to projects. The association also pointed the blame at labour and supply issues. It pointed out that high demand for concrete during the winter prevented inventory being built up and then the annual cement plant maintenance breaks in the spring added to the problems. Once contractors actually secured supplies of cement they then faced further delays due to a nationwide truck driver shortage!

Graph 1: Annual rolling cement shipments in the South of the US. Source: USGS.

Data from the United States Geological Survey (USGS) doesn’t especially shed light on the situation in Alabama and South Carolina. Alabama was the fifth largest cement producing state in the country in January 2022 but this is unsurprising as it’s the state with the fifth largest cement production capacity. Rolling annual data on Portland and blended cement shipments by origin show the effects of the coronavirus outbreak in the south from the start of 2020 to January 2022. Shipments took a dive in 2020 and then mostly recovered in 2021. However, Alabama, Kentucky and Tennessee saw shipments rise from 7.1Mt pre-pandemic to 7.6Mt in January 2022. South Carolina’s shipments grew from 3Mt to 3.2Mt. Regionally, the North East had a similar pattern although, unlike the South, shipments have surpassed those at the start of 2020. The Midwest and West were different with a general upwards trend over the two years, although the West softened slightly from mid-2021 onwards. Overall the US as a whole has seen its shipments grow throughout this period.

Ed Sullivan from the Portland Cement Association (PCA) told the May 2022 issue of Global Cement Magazine that the US cement sector did well in 2021 with a 4.1% year-on-year rise in sales to 104Mt. However, he flagged up supply chain problems that actually slowed growth, led by a lack of staff.

The other point along these lines that Sullivan made was that imports of cement might not necessarily be able to compensate for domestic supply issues due to global demand for shipping post-coronavirus. USGS data placed imports to the US at 13.7Mt in 2019 compared to 16.3Mt in 2021. Notably, Cemex restarted one production line in 2021 at its CPN cement plant in Sonora State in Mexico to export cement to the west of the US. In March 2022 it added that it was going to restart another line at the plant also. It’s not alone though as GCC reported in January 2022 that a line at one of its plants in Chihuahua, Mexico, was exporting cement to Texas. Sullivan reckoned that January 2022 was ‘weak’ but that it was followed by an ‘extremely strong’ February 2022. The first quarter results from Holcim and CRH seem to back this up with the former describing the period as ‘outstanding’ and the region leading its sales and earnings growth rate globally. CRH reported strong demand in central and southern regions.

As the US economy restarted following the peak of the early coronavirus waves in 2020, various supply chain issues have manifested. Staff shortages are one issue and this can also worsen other logistic problems. The south seems particularly vulnerable to all of this as it is both the country’s largest cement market and because demand has held up. In January 2022 research by the International Monetary Fund (IMF) identified several reasons for staff shortages in the US and the UK. These included increased inactivity among older workers, the so called ‘She-cession’ (where female employment has overly reduced due to coronavirus trends) and shifting worker preferences amid strong labour demand.

Staff shortages are expected to sort themselves out throughout 2022 but favourable forecast demand for cement in the US is balanced by inflationary pressure. Persistent low staffing levels could further add to inflation growth. The US cement sector may be doing well at the moment but even success carries risks.

Global Cement’s Robert McCaffrey will be giving a keynote presentation at the IEEE-PCA Cement Conference in Las Vegas on Tuesday 3 May 2022. The May 2022 issue of Global Cement Magazine, including interviews with PCA chief executive officer Mike Ireland and chief economist Ed Sullivan, is available to download now.

Russia: Eurocement has started an initiative to reduce its reliance on spare parts purchased from outside of the country. The programme is designed to start a phased transition to in-house production of components. One of the first examples of the scheme has been the development and installation of a clutch for a mill at the Sengileevsky cement plant.

The cement producer hopes to source at least 90% of the parts it requires domestically. At present it says that around 30% of the equipment used in the local cement sector is imported. The estimated economic effect will be around Euro14m.

The company has also announced an unscheduled indexation of staff wages to over 7000 workers at 16 cement plants. Indexing of wages is typically used to compensate for inflation. Other measures have also included food support. Vyacheslav Shmatov, the general director of Eurocement, said ““We have decided to increase our support measures for our employees during this difficult time in order to strengthen our work teams. Eurocement is, first of all, people, so the company will continue to take care of its employees.”

International economic sanctions were implemented upon Russia by European and North American countries in response to its invasion of Ukraine in February 2022.

India: The Directorate General of Mines Safety (DGMS) has named Ambuja Cements’ Rabriyawas cement plant as winner of its National Safety Award (Mines). Its winning initiatives include its Behaviour Based Safety training programme and Reward & Recognition employee engagement programme. Ambuja Cements said that the award confirms that Ambuja's Zero Harm policy has borne fruit.

India: An explosion at a cement plant in Gujarat’s Rajkot district has killed three workers. The Times of India newspaper has reported that police have detained two engineers on suspicion of criminal negligence.

Jamaica: Caribbean Cement says that its Rockfort cement plant in Kingston has surpassed 1000 days without a health and safety incident among employees and contractors. Health and safety coordinator Andre Haynes said that the achievement demonstrates that parent company Cemex’s Zero4Life zero-incident policy is possible.

Haynes said “As a company, we have invested heavily in the people aspect, with training geared towards improved safety and culture, and capital expenditure to improve the overall safety of the plant.” He said that the Rockfort cement plant will advance to its next safety milestone by keeping its focus on ‘closing all unsafe conditions’ and developing employees as health and safety champions.

Namibia: Immigration authorities have apprehended eight Chinese employees of Whale Rock Cement at the company’s Otjiwarongo grinding plant who failed to produce working permits during an inspection. Namibian Press Agency News has reported that seven of the workers have been in Namibia since mid-2021, while the eighth arrived in March 2022.

Pakistan: Three DG Khan Cement workers have been kidnapped by the local Ladi gang from the company’s Dera Ghazi Khan cement plant. The Dawn newspaper has reported that the employees has been inspecting the plant’s raw materials belt when the kidnap occurred.

India: Employees of a contract firm working at Dalmia Cement’s Bokaro grinding plant in Jharkhand have allegedly killed a worker in an attack on 15 March 2022. The deceased’s roommate has also been missing since then. Both workers had been in trouble with their employer for refusing to work overtime. Operations reportedly continued as normal at the plant until other loading workers began a protest on 16 March 2022.

Dalmia Cement spokesperson Shyamlal Sahu said “The matter was brought to the notice of local police and they have started their probe. We are cooperating with them to bring the culprits to justice. We will work with the contractor – Durga Enterprises – to extend support to the bereaved family. We, at Dalmia Bharat, accord highest priority to maintaining internal harmony and a healthy working environment, and will work with our contractors towards ensuring that such untoward incidents do not happen in the future.”