Displaying items by tag: Switzerland

Switzerland: Holcim’s sales rose by 17.4% year-on-year to Euro11.7bn in the first half of 2021 from Euro9.92bn in the same period in 2020. Its recurring earnings interest before taxation (EBIT) increased by 66% to Euro1.84bn from Euro1.12bn. Cement and concrete sales volumes grew by 13.5% to 99Mt and 15.6% to 22.1Mm³ respectively. Sales of all business segments grew in all regions on a like-for-like basis with the exception of aggregate sales in North America, where they fell slightly.

Jan Jenisch, the chief executive officer of Holcim, said, “In the first half of 2021 we set new records in recurring EBIT, free cash flow and earnings per share.”The group’s acquisition of Firestone Building Products officially closed at the end of March 2021 and the company has also made seven ‘bolt-on’ acquisitions so far in 2021, mainly in aggregate and ready-mixed concrete markets in Europe and North America. The group also agreed to divest operations in Zambia, Malawi and the Indian Ocean in the reporting period and these are all expected to complete by the end of 2021.

Holcim has started to unify its low carbon cement product range this week with the launch of its ECOPlanet label globally. The products are already available in Germany, Romania, Canada, Switzerland, Spain, France and Italy. The plan is to extend this to 15 countries by the end of 2021 and then to double its ‘market presence’ by the end of 2022.

The headline news is that the range will include what Holcim says is the world’s first cement product with 20% recycled construction and demolition waste. This appears to be an improvement on the group’s Susteno cement products that use fine fractions from concrete and demolition waste. This product is currently sold in Switzerland where it is advertised as saving 10% of CO₂ emissions compared to a standard cement product. Both Holcim and HeidelbergCement already sell concrete products that use the coarse waste from building demolition. Other than this, Holcim says that the range will also include cements that contain calcined clay. In June 2021 subsidiary Lafarge France announced that it would produce a cement product under the ECOPlanet banner using kaolin clay with its proprietary ProximA Tech process at its integrated La Malle cement plant in Bouc-Bel-Air.

We will have to wait and see how far Holcim goes in standardisng the range between different countries. Yet, judging from what the countries that are already selling ECOPlanet are doing, it looks like it will be a variety of blended cements. At present, for example, Holcim Germany offers four products in the ECOPlanet range. These are all slag cements, with three having effective CO₂ reductions of up to 70% and the fourth, ECOPlanet Zero, reaching 100% through a carbon offsetting scheme in conjunction with MoorFutures. Holcim Italy also launched a product in the range called ECOPlanet Prime using calcined clay in June 2021.

Incidentally, LafargeHolcim US announced a research project this week with the US Army about using demolition waste. It’s going to start working with the US Army Corps of Engineers’ Engineer Research and Development Center and Geocycle to look at how construction and demolition materials from military installations can be used for energy recovery and mineral recycling. Group resources at Geocycle’s Holly Hill Research Center in South Carolina, US and Holcim’s Global Innovation Center in Lyon, France will be used in the scheme.

Other low carbon cement products are available of course. Holcim is far from alone in launching low CO₂ cement and concrete products. Yet the use of worldwide brand names is different. Cemex is doing something similar with the global rollout of its Vertua concrete products. It first launched Vertua in France in 2018 before going global in 2020. Holcim started to launch ECOPact Concrete in 2019. Now, Holcim has gone further by doing the same thing with cement. Given how localised cement and concrete products are, it will be instructive to see how global branding for low carbon cementitious products helps these companies. For instance, who is the target audience? It could be eco-minded self-build customers or project specifiers or government departments or industry lobbyists. Or perhaps it is simply another marketing channel to reinforce the sector’s sustainable offerings.

The other point worth considering is when will the multinational cement producers start selling sustainable cements and concretes in less rich parts of the world? While Holcim was playing with blended cements and marketing this week, Dangote Cement said that it was ready to start commissioning its new 6Mt/yr integrated plant at Okpella, Edo State in Nigeria. Another 5Mt/yr plant is also on the way in the country from Madugu Cement. It has just signed a contract for China-based Sinoma International Engineering Company to build it. When Holcim and the other cement companies start selling low carbon cements in places like Nigeria then the rise of these products will be complete.

For more information on low CO₂ cement production read our feature in the February 2021 issue of Global Cement Magazine

LafargeHolcim became Holcim this week with the launch of its new group identity. It also released a manifesto. Corporate names and logos come and go in the swirl of capital but straight up declarations of intent are rarer. Companies in the normally conservative building materials sector don’t tend to do this. This is more the terrain of political movements. So what’s going on?

Figure 1: From a merger of equals to building progress for people and the planet, the LafargeHolcim and Holcim logos.

Looking at the new logo gives us a few clues. The light grey-brown Tetris-style ‘L’ and ‘H’ letters symbolising the ‘merger of equals’ have gone. In its place come two circular symbols that look like they might connect. Together they give the impression of a slanted figure of eight or a lemniscate (infinity symbol). All of this is set to a few shades of blue and green. Could these two symbols be suggesting recycling or the circular economy? Who knows, but hopefully the advertising agency that came up with it was well remunerated. Luckily for us Holcim’s chief executive officer, Jan Jenisch, explained it, “Today marks a milestone for our company in our transformation to become the global leader in innovative and sustainable solutions.”

The manifesto is clearer. Entitled ‘Building progress for people and the planet’ it lays out some of the problems facing the world, such as population growth, urbanisation and climate change mitigation. It then addresses how Holcim is already tackling these issues and how it wants to go further in becoming part of the answer. This is the big vision so it doesn’t trouble itself with the detail on how, for example, the company is going to eliminate process emissions from clinker production on its journey to net zero. This is after all the big pitch to hearts and minds. It also doesn’t stain its fingers with anything suggesting who is going to pay for this grand noble ambition. We’ll have to wait for the next investor’s event to discover how much of this dream washes over into the private equity and pension fund crowd.

In Holcim’s defence, as one of the world’s largest building materials producers, it needs to carve itself a grand vision to occupy within a future preoccupied with climate change. Pretty much everyone in the developed world uses products manufactured by Holcim and its competitors even if they don’t realise it. Yet they are increasingly becoming more aware of the negative issues raised by environmental campaigners. Over in the developing world, adequate housing and infrastructure provision are live political issues for many as economies grow. Threading the needle to tie these trends together is quite the challenge for Holcim and the others. As a public company it serves its shareholders, but, as a multinational wedged in the middle of the climate change debate cascading into global politics, it ultimately answers to everyone. Hence a mission statement or a manifesto makes sense.

Meanwhile, for a glimpse on the Chinese approach to these kinds of problems, China National Building Materials (CNBM) subsidiary China Building Materials Academy (CBMA) signed a knowledge sharing agreement this week with the Canada-based International CCS Knowledge Centre to collaborate on carbon capture technology. The project plans to start with a 155kg CO2/day pilot on an active cement plant kiln. If successful, the study could lead to CNBM rolling it out across its entire cement operations. This would be hugely significant globally and given the scale of the Chinese industrial sector there’s also a reasonable chance it could happen at speed. If this occurred CNBM could leave the politics to its owner, the Chinese government.

Switzerland: Holcim has unveiled its new corporate brand identity as part of the change in group name from LafargeHolcim. The new group logo consists of a white letter H, for Holcim, on a two-tone green and blue backdrop. The group says that the new identity unites its market brands behind its purpose of ‘building progress.’ The change is intended to mark its transformation into a global leader in innovative and sustainable building solutions and signify its focus on developing green cities, smart infrastructure and improved standards of living globally.

Chief executive officer Jan Jenisch said, “Our world is changing in many ways, with population growth, urbanisation and the climate challenge. We are determined to play our part to accelerate low-carbon and circular construction so that we build a net-zero future and raise living standards for everyone. Our new group identity sends a signal to the world that we are fully committed to building progress for people and the planet.”

Lafarge and Holcim merged in 2015 becoming LafargeHolcim. LafargeHolcim’s shareholders later voted to change the company’s name to Holcim in May 2021.

Germany: Switzerland-based Holcim has agreed to acquire ready-mix concrete and aggregates producer Heinrich Teufel. The Strassburg, Baden-Württemberg-based company employs 160 people across its operations in southern Germany. No value for the purchase has been disclosed and the transaction will be subject to regulatory approval.

Europe, Middle East and Africa regional head Miljan Gutovic said "The acquisition of Heinrich Teufel will strengthen our footprint in southern Germany in aggregates and ready-mixed concrete. We were especially impressed by their shared commitment to advancing the circular economy. We look forward to warmly welcoming the Heinrich Teufel colleagues joining our team.”

India: Ambuja Cements and ACC are planning to participate in parent company LafargeHolcim’s ‘Plants of Tomorrow’ programme. The initiative, which aims to make cement manufacturing more efficient through better plant optimisation, higher plant availability and a safer working environment, is part of LafargeHolcim’s ‘Building for Growth’ strategy, which was launched globally in mid-2019.

The four-year programme implemented by LafargeHolcim aims to create a global network of over 270 integrated cement plants and grinding stations in more than 50 countries by applying automation technologies and robotics, machine learning, predictive maintenance and digital twin technologies to the entire production processes. The ‘Plants of Tomorrow’ initiative is also being implemented in other key markets in Switzerland, France, Germany, United Kingdom, US, Canada and Russia.

“As an industry leader we are looking at 'Plants of Tomorrow’ as a big opportunity and responsibility to place India on the map of global cement manufacturing. This path-breaking project will lead to transformative outcomes not just in terms of operational and financial gains but also make cement manufacturing in the country environmentally sustainable and create a safe work environment for our colleagues across all our plants,” said Neeraj Akhoury, the chief executive officer (CEO) of India Holcim and managing director and CEO of Ambuja Cements.

Switzerland: Holcim has launched its Transport Analytics Center (TAC) software platform across its logistics fleets in 50 countries. The centre optimises route mapping, increasing deliveries’ predictability and safety, according to the company. This enables transport emissions tracking, including those of its third-party suppliers. Holcim says that the platform will cover 1.4bn kilometres of journeys by over 60,000 trucks annually. The producer hopes to use the software to reduce its Scope 3 emissions related to transportation and fuels by 20% in 2030 compared to the 2020 baseline of 29Mt of CO₂.

Chief information officer Jochen Werling said, “TAC is a great example of how we are becoming a data-driven organisation. With our extensive industry expertise and advanced technologies we are developing cutting-edge digital solutions that are tailored to our specific business needs. TAC is a breakthrough for us as well as for our broader industry.”

Switzerland/US: LafargeHolcim and GE Renewable Energy have signed a memorandum of understanding to research new ways to recycle of used wind turbines. The partners are seeking to use the shredded blades to produce low-CO₂ building materials. LafargeHolcim said that undertaking builds on the work of its subsidiary Geocycle, which previously began using GE’s waste wind turbine blades to produce alternative fuel (AF) for cement production. The cement producer called recycling the ‘key next step’ in line with the Circular Economy Action Plan of the European Union’s European Green Deal.

Switzerland: LafargeHolcim has celebrated World Ocean Day 2021 by joining the World Ocean Council (WOC). The organisation brings together companies from different sectors to work towards sustainable ocean stewardship. Membership continues LafargeHolcim’s efforts towards the protection of coastal ecosystems, such as its deployment of bioactive concrete for habitat restoration. The company has collaborated on 30 sustainable port projects. It is also helping to tackle plastic pollution through its waste management subsidiary Geocycle.

Chief sustainability and innovation officer Magali Anderson said, “I am extremely proud to formalise our commitment to sustainable ocean stewardship by joining the World Ocean Council. Working with the Council’s members, we expect to scale up our actions to preserve our oceans.”

Cuba: Switzerland-based LafargeHolcim has agreed in principle to settle a US court case regarding alleged trafficking in private property previously confiscated by the Cuban government. The Miami Herald newspaper has reported that the group is preparing to pay the claimant compensation. In the complaint, the plaintiffs had claimed the current market value of the property was an estimated US$270m, plus legal fees, interest and other costs could be involved. An agreement is expected to be reached by late June 2021.

In late 2020 a court in Florida, US accepted a request for damages from LafargeHolcim to over 20 parties from Cuba whose land was nationalised and subsequently had a cement plant built on it. The claim alleged that Switzerland-based Holderbank had held a stake in the partly-state owned Carlos Marx cement plant near Cienfuegos since 2001. Holderbank later became Holcim and then LafargeHolcim. The plaintiffs have been aided by a change in US law allowing Cubans to claim damages in US courts for expropriated property from private companies which profited from them.