Displaying items by tag: US
Ecocem step forward
28 September 2016Once again Ecocem has shone the torch this week for a rare thing within Europe these days: a growing cement company. Its latest project is an import terminal in Sweden, as part of a deal with Bolidan, which launched on 22 September 2016. This supports an arrangement to supply cement for the Boliden Garpenberg mine. The agreement also includes supply for the Boliden Tara Mines in Ireland.
This follows the announcement to build a new slag grinding plant in Dunkirk, France in early September 2016 and the opening of a new terminal in Runcorn, UK earlier in the year. The 1.4Mt/yr Dunkirk plant is a joint-venture with the steelmaker ArcelorMittal, intended to target markets in north of France and in the UK. Once complete it will join Ecocem’s growing collection of grinding units in Ireland, France and the Netherlands. The slag-cement producer operates a 0.35Mt/yr plant at Dublin, a 0.7Mt/yr plant at Fos in the south of France and a 0.35Mt/yr plant at Moerdijk under its subsidiary Orcem Netherlands.
The focus on the UK makes sense given that Ecocem said that it had made commitments to sell more product in the UK in its first year than its total domestic sales in 2016. This followed the situation where, prior to entering the British market, Ecocem had to stop taking orders in the short term due to demand. If this is actually the case then it is unsurprising to note that Ecocem is also building a second UK terminal at Sheerness at the mouth of the River Thames near to London. As an aside, Francis Flower bought the Scunthorpe ground granulated blast furnace slag (GGBS) plant from Hanson Cement in mid-2015 after the local market regulator requested the sale.
As Charlie Zeynel, ZAG International, says in an interview to be published in the October 2016 issues of Global Cement Magazine, that supplementary cementitous materials, including slags, in cement blends has grown worldwide, particularly in Europe and Japan, where GGBS cement represents around 25% and 30% of cement sales respectively. Zeynel goes on to say that GGBS usage is set to rise in other parts of the world, particularly the US, but this helps to explain the market Ecocem is operating in within northern Europe.
Ecocem seems well aware of the potential for slag cements in the US because it is attempting to build a Euro45m grinding plant Vallejo, California under its Orcem Americas subsidiary. The process has so far been dogged by planning problems at the proposed site as well as organised local opposition, which does not want a new industrial plant in the neighbourhood and issues such as the increased traffic it would bring. The irony here is that Ecocem bills itself as an environmentally friendly cement producer. Yet even environmentally-friendly cement needs to be manufactured and taken to site.
To misquote Kermit the Frog: it’s not easy selling green cement. However, Ecocem’s progress in Europe is encouraging both in the UK and the wider area. Roll on the opening of the Sheerness terminal.
Find out more about Ecocem's operations here: www.ecocem.fr/en/
Eagle Materials appoints George Damiris to its board of directors
28 September 2016US: Eagle Materials has appointed George Damiris to its board of directors. Damiris is the chief executive officer and president of HollyFrontier Corporation. He also serves as a director at HollyFrontier and Holly Logistics Services.
US competition body seeks public comment on Essroc sale to Argos
26 September 2016US: The Federal Trade Commission (FTC) is accepting public comments on an application from HeidelbergCement and Italcementi to sell the Essroc Martinsburg cement plant in West Virginia. The divestment is required by the FTC as part of the requirements of the acquisition of Italcementi and its subsidiary Essroc, by HeidlebergCement. The companies have sought permission from the FTC to sell the Martinsburg plant to the US division of Colombia’s Cementos Argos.
The Commission will decide whether to approve the proposed divestiture after expiration of a 30 -day public comment period. Public comments may be submitted until 24 October 2016.
Portland Cement Association and Mine Safety and Health Administration renew safety and health agreement
22 September 2016US: The Portland Cement Association (PCA) and the US Department of Labor’s Mine Safety and Health Administration (MSHA) has renewed for three years an on-going alliance aimed at fostering safer and more healthierl working conditions in the cement industry. Started in 2008, the agreement has enabled the PCA and the MSHA to share information, guidance and training resources to help protect the health and safety of all cement industry employees.
“Over the past seven years, this alliance has facilitated a productive collaboration between the cement industry and the regulatory agency, which has resulted in measurable safety and health benefits to cement industry employees,” said PCA President and CEO James G Toscas.
The Kiln of Theseus
21 September 2016Congratulations are in order for CalPortland. It celebrates its 125th anniversary or quasquicentennial today. According to the company blurb on the website, a cement plant was established in 1891 in Colton, California. This was the first plant west of the Rockies and it went on to supply building materials towards the development of Los Angeles. However, the website doesn’t exactly shout about its purchase in 1990 by one of the Japanese companies that eventually became Taiheiyo Cement. Its earliest constituent company, the Cement Manufacturing Company, was established 10 years earlier than CalPortland in 1881. So perhaps CalPortland could celebrate the 135th anniversary of its Japanese owners at some point this year too.
Company | Country | Year | Age |
LafargeHolcim | Switzerland | 1833 | 183 |
AnhuiConch | China | 1997 | 19 |
CNBM (Sinoma) | China | 1984 | 32 |
HeidelbergCement | Germany | 1873 | 143 |
Cemex | Mexico | 1906 | 110 |
Italcementi | Italy | 1864 | 152 |
China Resources | China | 2003 | 13 |
Taiwan Cement | Taiwan | 1946 | 70 |
Eurocement | Russia | 2002 | 14 |
Votorantim | Brazil | 1918 | 98 |
Table 1: Age of leading cement companies by production capacity: Source: The Top 100 Report 2016, Global Cement Directory 2016, company websites, Wikipedia
As can be seen from Table 1, a list of major cement producers by production capacity in 2016, most of the European or non-Chinese multinationals are old. They have roots in various predecessor companies going back at least a century. By contrast most of the Chinese producers on this list are far younger having been established since the 1980s.
Company | Country | Year |
Lafarge (LafargeHolcim) | France | 1833 |
Vicat | France | 1853 |
Dyckerhoff (Buzzi Unicem) | Germany | 1864 |
Italcementi (HeidelbergCement) | Italy | 1864 |
Essroc (Italcementi) | US | 1866 |
HeidelbergCement | Germany | 1873 |
Taiheiyo Cement | Japan | 1881 |
CalPortland (Taiheiyo Cement) | US | 1891 |
PPC | South Africa | 1892 |
Table 2: Age of selected older cement companies still in business: Source: Company websites.
Table 2 adds an international perspective from the cement industry to CalPortland’s achievement. It’s an arbitrary list chosen from larger, mostly multinational cement producers that still operate today. As such it may well be missing some key names. However, they all follow the first industrial revolution innovators in cement such as John Smeaton, Joseph Aspdin or Louis Vicat. A generation later the first cement companies that have endured to the present in some form or another such as Lafarge, Vicat or Dyckerhoff started to appear. As impressive as the longevity of these companies are though, they pale in comparison to Saint-Gobain, the French construction materials company that was first established in 1665.
A BBC News article on company lifespans found that the average lifespan of a company listed in the S&P 500 index of leading US companies had decreased from 67 years in the 1920s to 15 years in 2012, according to research by Professor Richard Foster of Yale University [LINK]. By this measure most of the cement companies examined here are doing well. Yet, most of the older ones have endured such a tangle of mergers, acquisitions and changes that it is debatable whether any of them could be considered the same company as their originator. Joseph-Auguste Pavin de Lafarge may have started his operations at Teil in the Ardèche region of France in 1833 but LafargeHolcim, its modern day successor, is only one year old following its creation from Lafarge and Holcim in 2015.
This leads to the Ship of Theseus' paradox or the thought experiment regarding whether an object that has all of its parts replaced is still the same object. Just as humans gradually have most of their constituent parts (or cells) replaced over time so too do long-lasting companies. One superficial response is to point out that memory or heritage can have a lasting effect for individual, national and corporate entities. Just compare, for example, the different outlook of western European national states with millennia of continuation to much newer nations in the Americas. European countries, like the UK, are often seen as being old and stuffy compared to new world dynamism despite all the citizens in both regions being younger than their countries.
To end on a cementitious note, perhaps this dilemma should be renamed the Kiln of Theseus paradox for the cement industry. If a cement plant’s engineers replace all the parts of a cement kiln is it still the same kiln? The suspicion is that the staff at CalPortland would definitely think it is!
If any readers have a suggested name for a 135th anniversary This email address is being protected from spambots. You need JavaScript enabled to view it.
Portland Cement Association confirms 4% growth forecast for 2016
21 September 2016US: The Portland Cement Association (PCA) has confirmed its projection released earlier in 2016 that the US cement industry is on target to see annual cement consumption grow by 4%. Cement consumption through to the end of the year is expected to continue at a steady pace, with additional demand coming from several areas, including moderate residential spending and, to a lesser extent, growth in non-residential and public construction activity. Additionally, the PCA says that favourable monetary policy from the Federal Reserve will support construction activity for the next two years.
“A key factor for continued growth for the cement industry is steady growth in construction spending, also projected to be up 4%,” said PCA Chief Economist and Senior Vice President Edward J Sullivan. “This is very much in line with the overall US economy’s slow-albeit-positive growth path.”
Sullivan noted that PCA has forecasted growth despite some conflicting economic indicators from elsewhere in the economy. “Despite some ups and downs in the US economy, the underlying economic fundamentals are solid.” For example, PCA noted the labour market has consistently seen a net monthly increase of roughly 200,000 jobs, pushing the unemployment rate below 5%. PCA also projects real GDP will grow by 1.5% in 2016, and by 2.2% in 2017.
CalPortland to celebrate 125-year anniversary
20 September 2016US: CalPortland will celebrate its 125-year anniversary, or quasquicentennial, on 21 September 2016. The company was established in 1891 in Colton, California as the California Portland Cement company, the first cement production facility west of the Rocky Mountains. Subsequently, the cement producer provided construction materials for the expansion of Los Angeles and the south-western US. Japan’s Taiheiyo Cement purchased the company in 1990.
"Today, CalPortland is building on its past for a bright and better future. Through key strategic mergers and acquisitions we have brought together more technology and the best people and now proudly serve six western states and two Canadian provinces. CalPortland is dedicated to using all of our resources to help make our customers successful," said Allen Hamblen, President and CEO of CalPortland.
Lafarge North America to lay off workers at Joppa cement plant
15 September 2016US: Lafarge North America plans to lay off an estimated 40 workers at his Joppa cement plant in Illinois. The move follows a decision to shut down one of the plants two kilns due to poor demand, according to WSIL-TV. The announcement follows the cement producer’s decision to scrap its expansion at the plant in May 2016. It previously said that no job losses were anticipated.
Ash Grove Cement appoints Chengqing Qi as technical centre director
14 September 2016US: Ash Grove Cement has appointed Chengqing (Cheng) Qi as its technical centre director at the company’s headquarters in Overland Park, Kansas. In his new role, Qi will oversee operations of the company’s technical centre. Greg Barger, an American Concrete Institute (ACI) Fellow and Ash Grove’s long-time technical centre director, will retire in 2017. Barger will continue in this role and work alongside Qi until the transition is complete.
Most recently Qi served as technical manager for a cement manufacturer where he was responsible for troubleshooting cement, concrete and aggregate performance, testing materials and evaluating new material sources. Prior to that, he was with Professional Service Industries in Fairfax, Virginia, as a materials engineer and petrographer.
Qi has authored or contributed to more than 20 technical papers in peer-reviewed journals and conference proceedings. He is a member of multiple technical committees for the ACI and ASTM International.
Qi holds a doctorate in civil engineering, with an emphasis on cement and concrete materials, from Purdue University’s School of Civil Engineering in West Lafayette, Indiana, and bachelor’s and master’s degrees in materials science and engineering from Southeast University in Nanjing, China.
Cemex sells Fairborn cement plant to Eagle Materials
13 September 2016US: Cemex has signed a definitive agreement for the sale of its 1Mt/yr Fairborn, Ohio cement plant, a cement terminal in Columbus, Ohio and a cement bagging operation to Eagle Materials for US$400m. Cemex will use the proceeds of the sale to reduce its debts and for general corporate purposes. The closing of the deal is subject to regulatory approval. The divestiture is expected to be completed during the fourth quarter of 2016.
"Our strategy has been to grow the cement side of our business. The Fairborn plant extends our US cement system and connects but does not overlap with the market reach of our existing plants. This high-quality cement plant is a compelling fit with our strategic objectives and our criteria for new investment. These assets will allow us to participate more fully in the US construction industry and further positions the company in target US heartland growth markets," said Dave Powers, Eagle Materials President and Chief Executive Officer.