
Displaying items by tag: VICAT
Switzerland: France-based Vicat subsidiary Vigier Holding has agreed to sell precast concrete producer Creabeton Matériaux to Müller Steinag Holding. The group says that it will finalise the deal within the first half of 2021.
Creabeton Matériaux specialises in the prefabrication of concrete products. It has a workforce of nearly 380 employees and reported a turnover of Euro83m in 2020. Vigier Holding will retains its railway business including the construction of concrete sleepers.
Vicat’s sales, earnings and net income rise in 2020
16 February 2021France: Vicat recorded full-year consolidated sales of Euro2.81bn in 2020, up by 2% year-on-year from Euro2.74bn in 2019. Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 6% to Euro557m from Euro526m. Consolidated net income rose by 8% to Euro172m from Euro160m.
The group said that organic sales were ‘strong,’ rising in all regions except in France, by 6% in total. It attributed the decline to a near-total shutdown due to the coronavirus outbreak in mid-March 2020, which lifted incrementally throughout the first half of the year. Vicat France’s cement business recovered ‘robustly’ in the second half of 2020, resulting in an operational sales increase of 3% for the year. Full stoppages of activity lasted for 33 days in India and for 30 days in Italy. Despite these challenges, business growth, cost-cutting and lower energy costs drove earnings growth, with ‘very sharp improvements’ recorded in the Americas and in Asia. Additionally, the ramp-up of a new grinding plant in Mali and production performance improvements in Senegal supported a ‘significant’ earnings increase in Africa.
Chair and chief executive officerGuy Sidos said, “Thanks to our employees’ tremendous efforts and commitment, the Vicat group strengthened its position amid the unprecedented current pandemic situation. Our resilience and flexibility allowed us to make organisational changes in order to reconcile our competing imperatives of keeping everyone safe and healthy, unlocking savings and making rapid adjustments, such as relocating our Paris head office to L’Isle d’Abeau in the Auvergne-Rhône-Alpes region. Likewise, we made improvements to Vicat’s governance and stepped up our environmental and digital transformation programmes. Given the strength of our cash generation, we were able to resume key productivity investment programmes for the future. Despite the adversity we faced, our teams across all our various regions successfully delivered higher production efficiency levels and met market demand cost-effectively, paving the way for a solid increase in the Vicat group’s results.”
In 2021, the group plans to expand cement production and invest in new cement terminals in India and to continue with the upgrade of its Ragland cement plant in the US. It also says that it will ramp up projects aimed at meeting its carbon footprint reduction targets. The group expects its earnings to rise at constant scope and exchange rates over the full year.
National Cement Company of Alabama installs new 5000t/day clinker line at Ragland cement plant
11 February 2021US: France-based Vicat subsidiary National Cement Company of Alabama has completed the installation of a new 5000t/day clinker line at its Ragland, Alabama cement plant. The line has a raw meal capacity of 13,000t.
Vicat engineering senior vice president Jean-Claude Brocheton congratulated the installation team on the ‘major step’ and on completing the work ahead of schedule.
Vicat part of Genvia joint venture for hydrogen production
13 January 2021France: Vicat has joined US-based Schlumberger New Energy, clean energy specialist CEA, Vinci Construction and the Occitan Regional Agency of Energy and Climate (AREC) in a hydrogen production technology joint venture called Genvia. The partnership will establish a ‘gigafactory’ at which to develop high-temperature reversible solid oxide electrolyser technology. The gigafactory will be situated in Béziers, Occitan. Deployment will take place via CEA’s Grenoble, Auvergne-Rhône-Alpes site.
“We are very pleased to be working alongside such experienced and strong partners as we strive to develop technologies that enable decarbonisation,” said François Jacq, chairman of the CEA. “Together, building on a set of technologies developed by the CEA over the last decade, we have ambitious growth plans for a technology that we expect to be a game-changer in the production of clean hydrogen. This initiative demonstrates an alignment of environmental and economic growth ambitions that is important for France and Europe in support of the government's and the commission's recovery plan.”
The technology Genvia plans to use is intended to achieve a high system efficiency, resulting in less electricity use per kg of hydrogen produced. The venture says that the technology is the first of its kind that is fully reversible, giving it the flexibility to switch between electrolysis and fuel cell functions.
France: Vicat started using a CO2ntainer system supplied by UK-based Carbon8 Systems at its Montalieu-Vercieu cement plant in November 2020. It uses captured CO2 from the unit’s flue gas emissions to carbonate cement-plant dust and produce aggregate, which can then be used to make products such as concrete. The system has particular relevance for a plant burning alternative fuels due to the additional chlorinated dust created compared to the use of conventional fossil fuels. The company says it is the first European cement producer to use the process at an industrial scale. Previously, Carbon8 Systems said that its CO2ntainer would process and convert up to 12,000t of cement bypass dust in its first phase of operation.
Vicat Group scientific director Laury Barnes-Davin said, “We were drawn to Carbon8 Systems’ two-part technology: capturing the CO2 that Montalieu emits, and using it to produce an aggregate that can be marketed in the construction industry. It opens up great potential for our operations not just in France but also in all the countries where we work across the globe.” The group hopes to reach a 100% alternative fuel substitution rate in France by 2024.
Update on France: November 2020
25 November 2020There were mixed feelings evoked by HeidelbergCement’s good news last week that its French subsidiary Ciments Calcia is to set to spend Euro400m on a modernisation project. Sadly, this came with the bad news that the integrated plants at Gargenville and Cruas will be downgraded into a grinding plant and a terminal respectively, and there will be a review of the company’s headquarters in Guerville. All of this will cut 160 jobs but create 20 new ones.
Make no mistake, this is serious money to invest. Euro300m alone will go towards an upgrade of the integrated Airvault cement plant in the former Poitou-Charentes administrative region. HeidelbergCement didn’t say it in its press release but French press reported that the pyroprocessing line at Airvault will be rebuilt starting in 2022 with commissioning scheduled for 2025. If correct then this certainly suits an investment on this scale for a single plant. Smaller investments in the region of Euro25 – 50m were also said be earmarked for the integrated plants at Bussac-Forêt, Beaucaire and Couvrot. These are serious commitments to HeidelbergCement’s production base in France.
Generally speaking, the French cement and construction market has done as well as expected for a country forced to implement two coronavirus lockdowns so far in 2020. Half-way through the year the major cement producers were reporting sales declines of around 10% year-on-year with business picking up again over the summer. Vicat, for example, reported a 9% fall in sales volumes in the first half followed by ‘solid business growth’ in June 2020. LafargeHolcim, CRH and HeidelbergCement all reported a similar situation for their local subsidiaries.
Looking at the wider construction industry, in October 2020 analyst company GlobalData stuck by its forecast of a contraction of construction output by 11.6% in France in 2020. It noted a 35.5% quarter-on-quarter rebound in the third quarter, although it reckoned output was still down by around 5% in the quarter year-on-year, using French National Institute of Statistics and Economic Studies (INSEE) data. With a second national lockdown initiated in late October 2020, it said that INSEE expected a contraction in the fourth quarter of 2020 even with construction sites being allowed to stay open. This follows a peak of cement production above 20Mt in the late 2000s before hitting a low of around 15.5Mt in 2015 and a gradual recovery since then, according to data from the French cement industry union (SFIC).
Ciments Calcia’s upgrade at Airvault is noteworthy for the whole of Europe because it is one of only a few new pyroprocessing line projects in the last decade. The last major one was the new 4000t/day line at HeidelbergCement’s Burglengenfeld plant in Germany that was commissioned in 2018. The trend since then has generally been one of integrated plants slowly closing as markets shrank following the 2008 financial crisis, international clinker levels boomed and environmental measures tightened. Dominik von Achten, chairman of the managing board of HeidelbergCement, addressed this last point directly with the announcement of the Airvault project when he said, “This is why we focus our initiatives on the main CO2-emitting plants in France.” The competitors to the larger established cement producers in France are certainly thinking about CO2. Alongside the general European trend of fewer new clinker production lines has been rise in France of the smaller cement producers with grinding and/or reduced-clinker factor models like Cem’In’Eu, Hoffmann Green Cement Technologies and Ecocem. Anyone spending Euro300m on a clinker kiln spewing out CO2 would do well to consider how much the CO2 price might be in fifty years time.
Catch4Climate project moves forward with Mergelstetten oxyfuel plans
19 November 2020Germany: The Catch4Climate project has moved into the planning stage of its oxyfuel pilot plant at the Mergelstetten cement plant. The group, comprising Buzzi Unicem’s subsidiary Dyckerhoff, HeidelbergCement, Schwenk Zement and Vicat, signed a letter of intent with the state’s prime minister and transport minister in Stuttgart in mid-November 2020.
The consortium intends to build and operate its own demonstration plant on a semi-industrial scale, to use the oxyfuel process to capture CO2. In the future, the captured CO2 will be used to produce so-called ‘reFuels’, climate-neutral synthetic fuels such as kerosene for air traffic, with the help of renewable electrical energy.
The cement producers formed CI4C – Cement Innovation for Climate in late 2019. The aim of the Catch4Climate project is to create the basis for a large-scale application of CO2 capture technologies in cement plants enabling the later use of CO2 as a raw material in other processes such as a carbon capture and utilisation/storage.
Vicat shows nine-month sales and cement sales growth
04 November 2020France: Vicat recorded net sales of Euro2.07bn in the first nine months of 2020, up slightly from Euro2.06bn in the first nine months of 2019. Sales rose in Africa by 23% to Euro198m from Euro161m, in Europe (excluding France) by 8% to Euro317m from Euro294m and in the Americas by 7% to Euro471m from Euro442m.
Cement sales constituted 51% of sales at Euro1.05bn, up by 5% from Euro991m. Cement volumes rose by 8% to 18.0Mt from 16.7Mt, while concrete volumes fell by 2% to 6.65Mt from 6.78Mt.
Chair and chief executive officer (CEO) Guy Sidos said, “The impact of the Covid-19 outbreak on the group's operating profit was eliminated by the end of July 2020. The good momentum observed since then, particularly in the group's most recent operations in India and Brazil, leads us to envisage that operating profit may increase significantly at constant scope and exchange rates in 2020. Nevertheless, the group is continuing its efforts to reduce structural costs, signified by the relocation on 1 October 2020 of its head office to l’Isle d'Abeau in Isère.”
France: Falls in sales in India, France and Italy since the end of the first quarter of 2020 have negatively affected Vicat’s half year results. However, it noted a rebound at the end of the period, particularly in France, and reported earnings growth in the US and Brazil. Its consolidated sales fell by 2.7% year-on-year to Euro1.30bn in the first half of 2020 from Euro1.34bn in the same period in 2019. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased by 6.7% to Euro213mm.
“We kept our production activities running at almost all our sites to keep pace with market trends and seize any commercial opportunities by remaining close to our customers, which has helped to mitigate the impact of the crisis,” said Guy Sidos, the group’s chairman and chief executive officer (CEO). He added that, “In this unprecedented environment, visibility on our full-year performance remains limited.”
Vicat to implement Carbon8 Systems carbon capture and use system at Montalieu cement plant
10 July 2020France: UK-based Carbon8 Systems has announced plans for the commercial implementation of its carbon capture and use (CCU) system at Vicat’s Montalieu integrated cement plant in France. It follows successful demonstration projects at cement plants in the UK and Canada.
The company’s CO2ntainer product will be deployed directly onsite at the plant and integrated into Vicat's existing industrial processes. It will capture CO2 directly from the plant's flue gas emissions and use this as part of its Accelerated Carbonisation Technology (ACT) process. This accelerates the carbonation of cement bypass dust into lightweight aggregates. In its first phase of operation it will process and convert up to 12,000t of cement bypass dust.