Displaying items by tag: Strategy
TCMA chair sets goal for net zero 2050
08 April 2024Thailand: Chair of the Thai Cement Manufacturers Association (TCMA), Dr Chana Poomee, announced the company’s new strategy, called 'TCMA Synergising the Actions toward Net Zero 2050'. This strategy aims to drive the cement industry towards clean energy transition, connect with global green funds and address climate change.
The vision involves four key missions for 2024-2026, including developing low-carbon cement, enhancing resource-efficient mining practices, building an integrated waste-to-value ecosystem, and transitioning to clean energy.
The TCMA also aims to reduce its CO₂ emissions by 6.9Mt/yr by 2030. Collaborations with various partners, including the Thailand Fellowship Cement Manufacturers and the Thai Bankers Association, are planned to leverage innovation and government policy support.
Cemex reports sales growth in 2023
09 February 2024Mexico: Cemex reported sales of US$17.4bn in 2023, up by 8% year-on-year from 2022 levels. Meanwhile, the group’s operating earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 20% to US$3.35bn. The producer said that strong product pricing in all markets and slowing costs inflation compounded the positive effects of its growth investment strategy. On a consolidated basis, Cemex’s cement sales volumes fell by 6% to 51.7Mt from 55.1Mt. They rose by 3% in Mexico but fell by 10% in Europe, Middle East, Africa and Asia, by 3% in South and Central America and the Caribbean and by 13% in the US.
Chief executive officer Fernando González said "I am pleased to announce that 2023 is a great year for our company where we delivered not only great results and recovered from the extraordinary inflationary pressures of the last few years, but also continued executing against our ambitious decarbonisation commitments, reducing our CO2 emissions by 4% year-on-year and by 13% since 2020. Despite the significant macro challenges of the last four years, we have proven not only the resilience of our business model but also our ability to pivot and adjust rapidly to changing global conditions. This foundation gives us additional flexibility in capital allocation, where we continue to accelerate investments in our bolt-on growth strategy, initiate a sustainable return programme for shareholders and bolster our capital structure."
Global Cement and Concrete Association and China Cement Association to collaborate for cement decarbonisation
01 February 2024World: The Global Cement and Concrete Association (GCCA) has signed a new agreement with the China Cement Association (CCA). The agreement constitutes an historic ‘partnership pledge’ to accelerate cement decarbonisation globally in 2024 – 2026. The partners says that their collaboration will contribute to the development and launch of the upcoming China Cement Carbon Neutrality Roadmap. Equipment supplier Sinoma International Engineering and the European Cement Research Academy (ECRA) will also help to develop the roadmap. The GCCA previously launched its own global net zero roadmap in 2021. Together, GCCA and CCA members account for 90% of global cement production in capacity terms.
GCCA CEO Thomas Guillot, said “The world needs leadership and collaboration like never before, especially on addressing the key issue of our time, climate change. This agreement between the China industry and the global industry is a signal to the world that we stand ready to deliver the essential decarbonised building materials that our planet needs. Cement and concrete enable the key infrastructure, thriving and resilient communities, clean water, safe homes and the shift to clean energy that are essential to a future sustainable world.”
CCA Executive president Kong Xiangzhong said “This important agreement marks a win-win cooperation, and shows where we can collaborate effectively to bring insights, technical know-how and greater focus to our shared decarbonisation mission. I am sure this will create a mutually-beneficial and long-term partnership that will be crucial in building a more sustainable world.”
FLSmidth's cement business reports sales of US$871m in 2023
30 January 2024Denmark: FLSmidth's cement business recorded preliminary, unaudited sales of US$871m in 2023, down by 59% year-on-year from US$2.14bn in 2022. The business contributed 25% of the group’s consolidated sales of US$3.5bn. FLSmidth had a total order intake for the year of US$3.11bn, toward which the cement business contributed US$711m (23%). The supplier said that its results were in line with guidance. It now expects its cement business to generate US$580 – 653m (19 – 23%) of total group sales of US$2.9 – 3.12bn in 2024.
FLSmidth said “We expect the short-term outlook for the cement industry to remain impacted by macroeconomic uncertainty. The guidance for 2024 reflects the ongoing execution of the GREEN’26 strategy, continued business simplification and product portfolio pruning, including the expected closing of sale of the MAAG gears and drives business during the first quarter of 2024.”
PPC completes divestment of Cimerwa stake
26 January 2024Rwanda: South Africa-based PPC has completed the sale of its 51% stake in the Rwandan cement producer to Kenya-based Devki Group subsidiary National Cement, for US$42.5m. The divestiture advances PPC's strategic exit of Central and East Africa. As a result, the group's financial position is now cash positive. It had previously reduced its debt by 50% to US$20.3m from US$40.7m between March 2020 and September 2023.
PPC CEO Matias Cardarelli said "I am pleased with the timely completion of the sale of our stake in Cimerwa. The disposal allows us to focus on our core Southern African markets, where we see opportunities to drive improved profitability and secure a more sustainable return on capital."
Brazil: Votorantim Cimentos plans to invest US$1bn in expanding its Brazilian operations in the period up to the end of 2028. US$304m-worth of the investments are already underway at the start of 2024. Reuters has reported that the investments include cement plant projects to raise Votorantim Cimentos’ Brazilian cement production capacity by 8.8% to 37Mt/yr. These include a US$162m investment in a 20% capacity expansion to its Votorantim cement plant and a US$60.8m, 1Mt/yr expansion to its Salto de Pirapora plant. Further aims are to ensure structural competitiveness, raise energy efficiency and digitise operations, including applying artificial intelligence (AI) to freight. The producer expects its earnings before interest, taxation, depreciation, and amortization (EBITDA) to eventually rise by US$263/yr between 2023 and 2028 as a result.
10 sustainable cement and concrete technology developers launch the Decarbonized Cement and Concrete Alliance
18 January 2024North America: A new coalition for the scaling and deployment of low-carbon building materials, the creation of new clean cement and concrete jobs and the promotion of environmental justice launched earlier in January 2024. Called the Decarbonized Cement and Concrete Alliance (DC2), it comprises alternative cement developers Biomason, Brimstone, Chement, Fortera and Terra CO2, sequestration company Blue Planet Systems, circular concrete producer CarbonBuilt, biogenic limestone producer Minus Materials, hydrothermal processing technology developer Queens Carbon and electrified cement production technology developer Sublime Systems. DC2’s areas of engagement in policy will include tax credits, standards, ecolabeling and subsidisation, in line with the US Department of Energy’s Pathways to Commercial Liftoff: Low-Carbon Cement strategy.
CarbonBuilt’s government and community affairs manager Sal Brzozowski said “DC2’s platform of robust policy, standards and incentives to scale innovative solutions will not only accelerate deep decarbonisation, but also transform the concrete industry from one of the world’s largest CO2 emitters to one of the world’s largest carbon sinks.”
Star Cement contemplates expansion into southern India
11 December 2023India: Star Cement is reportedly considering acquiring new cement assets in the southern India market. The Hindu newspaper has reported that the producer expects cement production capacity there to have a lower valuation than in its native north east India, due to its larger scale.
CEO Vinit Kumar Tiwari said “We have to find a target which is suitable for our appetite. We are open to all the areas. Obviously, the southern market is a more glut market. So, if we find any opportunity there at a good valuation, only then will we go for it.” He added “The next round of consolidation in the industry should be in the southern market because this market is quite fragmented and players are operating at a very low capacity utilisation.”
Star cement expects to raise its capacity by 70% to 9.7Mt/yr by early 2026 through US$264m-worth of expansion projects, including an expansion to the clinker line of its Lumshnong cement plant in Meghalaya. To date, it has invested US$108m in the projects.
UAE/UK: The Global Cement and Concrete Association (GCCA) has welcomed the launch of the Canada/UAE co-led Cement Breakthrough Initiative at the COP28 climate conference in Dubai on 6 December 2023. Prior to the launch of the initiative, the GCCA hosted a roundtable for representatives of the cement industry and governments.
GCCA chief executive officer Thomas Guillot said "We support and welcome the launch of the Cement Breakthrough Initiative. Cement and concrete are essential for so much of our modern world and will also be needed for meeting the challenges ahead. They will play a key role in providing resilient and sustainable infrastructure and safely housing communities around our planet. Our member companies are fully committed to a net zero future – and it will take the combined efforts of industry and government to deliver on this commitment. This is the decade to deliver, and we are delighted to work with the Cement Breakthrough Initiative and the government of Canada to accelerate the transition."
Global Cement and Concrete Association publishes Cement Industry Net Progress Report 2023
04 December 2023World: The Global Cement and Concrete Association (GCCA) has published its Cement Industry Net Progress Report 2023. The report highlights the work of the GCCA and its members to lower their CO₂ emissions since signing the 2050 Net Zero Roadmap in October 2021. Initiatives include carbon capture and storage, renewables and alternative materials. These strategies have contributed to a 23% decline in cement and concrete’s CO2 emissions between 1990 and 2023.
GCCA president and Cemex chief executive officer Fernando González said “We are pleased to present this report, which captures the progress our industry is making towards net zero. But it will take the combined efforts of industry, governments and societies around the world to deliver on this commitment.” He added “This is the decade to deliver, and my number one priority is to facilitate the GCCA roadmap levers, designed to make full decarbonisation of our industry possible.”
The Cement Industry Net Progress Report 2023 is available here on the GCCA’s website.