Displaying items by tag: Votorantim Cimentos
Votorantim Cimentos tightens CO2 reduction targets
05 December 2022Brazil: Votorantim Cimentos has revised its Scope 1 CO2 emissions reduction goal down to 475kg/t of cementitious product by 2030, from 520kg/t previously. The new target is 8.7% lower than the previous one, which it set in November 2020. Votorantim Cimentos previously reduced its emissions per tonne by 20% between 1990 and 2021. The group's targeted reduction from a 2018 base year now equates to 25%. The Science-Based Targets Initiative (SBTi) validated the ambitious target on 1 December 2022.
Votorantim Cimentos expects to achieve its aim through increased alternative fuel (AF) co-processing, substitution of supplementary cementitious materials, improved efficiency and use of renewable power and the development of new technologies, including carbon capture.
The group's global sustainability, institutional relations, product development and engineering director Álvaro Lorenz said “The fight against the negative effects of climate change is at the heart of our strategy and reflects our focus on competitiveness and on creating a positive legacy. The most competitive businesses will be those with the lowest greenhouse gas emissions. After all, the environmental crisis is also an economic and social crisis. The validation of our new target by SBTi reinforces our commitment and continuous efforts toward the net-zero agenda.”
Votorantim Cimentos raises prices but earnings fall so far in 2022
11 November 2022Brazil: Votorantim Cimentos’ net revenue grew by 18% year-on-year to US$3.60bn in the first nine months of 2022 from US$3.04bn in the same period in 2021. Its cement sales volumes rose slightly to 27.8Mt. However, its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 16% to US$659m from US$780m.
Domestically the group said that its revenue grew because price rises counteracted falling sales volumes of cement. Outside of Brazil it reported growing revenue, apart from in its Latin American business. Here it blamed the fall on a new competitor entering the Uruguayan market and market issues in Bolivia. Earnings were noted to have decreased in every region mainly due to mounting fuel, raw material and energy costs.
Votorantim launched a new logo in October 2022 and completed its acquisition of Heidelberg Materials' Southern Spanish businesses in November 2022. The purchase included an integrated cement plant located in Málaga, three aggregates quarries and 11 ready-mix concrete plants in the Andalusia region.
Update on COP27
09 November 2022Readers may have noticed the 2022 United Nations Climate Change Conference (COP27) is currently taking place at Sharm El Sheikh in Egypt. Many of the cement companies, suppliers and related associations are present at the annual jamboree and getting stuck in. For example, Holcim’s chief sustainability officer Magali Anderson was scheduled on 8 November 2022 to discuss solutions to decarbonise the built environment at the event’s Building Pavilion, Cemex’s chief executive officer Fernando A González took part in the First Movers Coalition (FMC) panel, FLSmidth is down for a number of talks and both the Global Cement and Concrete Association (GCCA) and World Cement Association are busy too.
Stone cold progress, if any, from the conference is yet to emerge although there is still time given that the event runs until 18 November 2022. No doubt some sort of ‘big message’ style international commitment or plan will emerge from the haggling. However, on the cement sector side, the biggest story so far has been the FMC plan for some of its members to procure at least 10% near-zero cement and concrete for its projects by 2030. Both Holcim and Cemex were founding members of the collation of companies that intend to use their purchasing power to support sustainable technologies in hard to abate sectors. Commitments for the aviation, shipping, steel and trucking sectors were set at COP26 in Glasgow, aluminium and CO2 removal followed in May 2022 and chemicals and concrete were scheduled for November 2022. The latter has started to happen with the formation of the FMC’s cement and concrete group. Companies involved include ETEX, General Motors, Ørsted, RMZ Corporation and Vattenfall. Of these, Sweden-based energy producer Vattenfall has publicly said it is going for the 10% near-zero cement and concrete target by 2030.
Company | 2021 | 2030 Target | Notes |
Cemex | 591 | 480 | ESTIMATE, 40% less CO2/t of cementitious material compared to 1990 |
China Resources Cement | 847 | UNKNOWN | Emission intensity is for clinker |
CRH | 586 | UNKNOWN | 25% reduction in Scope 1 and Scope 2 CO2 emissions by 2030 (on a 2020 baseline) |
Heidelberg Materials | 565 | 500 | |
Holcim | 553 | 475 | |
UltraTech Cement | 582 | 483 | ESTIMATE, Reduction in CO2 emission intensity by 27% from FY2017 level by FY2032 |
Votorantim | 597 | 520 |
Table 1: Net CO2 emission intensity (kgCO2/t) for cement production at selected large cement producers.
While we wait for more announcements to escape from Sharm El Sheikh it might be worth reflecting upon one of the targets some of the cement companies have set themselves for 2030. Table 1 above compares the net CO2 emission intensity for cement production at some of the large cement producers. It doesn’t tell us much, other than that the CO2 emission intensity for these companies was in the region of 550 - 600kgCO2/t of cementitious material in 2021. This compares to 580kgCO2/t in 2020 for the GCCA’s Getting the Numbers Right (GNR) data for the companies it covers. The companies featured in Table 1 are all aiming – or appear to be aiming – for 475 - 525kgCO2/t by 2030. This may not sound like much but it has and will require hard work, innovation, investment and risk on the part of the cement producers. This is also before carbon capture, utilisation and/or storage (CCUS) units will have been built at most cement plants. Yes, until the CO2 emission intensity goes to down to zero, if cement production volumes keep rising sufficiently then total gross CO2 emissions from the cement industry will also increase. Yet, gross CO2 emissions from cement production are likely to peak sometime between now and 2030 if they haven’t already.
One sobering fact to end with is that 1990 is now further in the past than 2050 is in the future. If you can remember George Bush Sr as US president or you saw the film Goodfellas at the cinema then that’s the amount of time we have left to reach net zero. The global economic shocks of the post-coronavirus period and the war in Ukraine are stressing the world’s climate targets more than ever before. Let’s see how COP27 reacts to this. So far though, serious commitments to using low-carbon cement and concrete from big companies are a useful step to entrenching these products in the market.
Votorantim Cimentos Spain acquires Heidelberg Materials' Southern Spanish businesses
03 November 2022Spain: Votorantim Cimentos Spain has completed its acquisition of Heidelberg Materials' businesses in the south of Spain. Under the deal, Votorantim Cimentos Spain gains control of FYM's 1.6Mt/yr Málaga cement plant, as well as three aggregates quarries and 11 ready-mix concrete plants in Andalusia.
Brazil-based Votorantim Cimentos' Europe, Asia and Africa CEO Jorge Wagner said “This acquisition is fully aligned with our strategy, reinforces our presence in the Iberian Peninsula to better serve our customers and creates significant synergies with our existing assets. Besides this, it will be key to accelerating our decarbonisation journey to achieve our 2030 Sustainability Commitments."
Votorantim Cimentos Spain operates six Spanish cement plants with 6Mt/yr in integrated capacity across Andalusia, the Canary Islands, Castile and León, Extremadura and Galicia.
Spain: Brazil-based Votorantim Cimentos' Córdoba, Niebla and La Araña cement plants in Andalusia are at the centre of a planned Euro1bn decarbonisation project by the company. Votorantim Cimentos will publish details of its plans, which include renewably powered green hydrogen and biofuels production, in early 2023.
Votorantim Cimentos Europe, Asia and Africa CEO Jorge Wagner said "We need agility with the administration, because the investments are stratospheric and long-term. We want to obtain subsidies, taking advantage of European funds." He concluded "We have the opportunity to carry out a very beautiful project in Andalusia and beat the Americans."
Türkiye: Votorantim Cimentos Türkiye has appointed İlker Kutlu Yilmaz as its Head of Logistics. He previously worked as the Group Logistics Manager for Cementir Holding in Türkiye. Prior to this he also worked as a Logistics Manager for VICAT from 2012 to 2018. Other notable roles he has held include working in logistics for Feka Construction, Industry & Trade and Omsan Logistics.
Votorantim Cimentos redesigns logo
05 October 2022Brazil: Votorantim Cimentos has launched its new visual identity. Its new logo consists of a lime green and dark blue V, next to its name, with the Votorantim written in capital letters and the Cimentos in lowercase. The producer says that the V honours its legacy, while figuratively representing a movement toward the future. The colour and font combination embodies the company's solidity and flexibility.
Corporate communications and branding head Geraldo Magella said “Votorantim Cimentos is on a journey of evolution and transformation. We redefined our strategy, revised our culture, grew, expanded. This long-term vision opens new paths and new areas of activity through the development of products and services to meet the needs of society. We want to create changes while remembering our history - hence the need to translate all this into a new brand, which communicates everything we do, from ground level to the highest point in a city."
Quebec government orders St Mary’s Cement’s Port-Daniel-Gascons cement plant to reduce dust emissions
20 September 2022Canada: The Quebec Ministry of the Environment has ordered St Mary’s Cement’s integrated plant at Port-Daniel-Gascons to reduce its dust and other emissions to government-mandated levels. The notification follows an incident that occurred over the summer of 2020 and has reoccurred since on occasion. The order requires, amongst other measures, that the subsidiary of Brazil-based Votorantim allow an independent expert recognised by the department to carry out an assessment of air filtration equipment at the plant and propose ways to improve the situation.
Votorantim Cimentos publishes first-half 2022 results
12 August 2022Brazil: Votorantim Cimentos recorded consolidated sales of US$1.17bn in the first half of 2022, up by 22% year-on-year from US$961m in the first half of 2021. Its cost of sales rose by 36% to US$1.05bn from US$777m. As a result, the group made a loss during the half of US$29.6m, compared to a US$85m profit in the first half of 2021. Group cement volumes grew by 1.1% year-on-year to 17.6Mt from 17.4Mt.
CFO Bianca Nasser said “Despite the slowdown in the world economy, Votorantim Cimentos continues to operate within solid financial metrics and with high liquidity, maintaining its investment grade status with a stable outlook attributed by the credit rating agencies Moody’s and Fitch. The company’s leverage remained at stable levels and in line with our financial policy. In May, we carried out a transaction in the international market that repurchased the most expensive debt in our portfolio, taking advantage of attractive market rates. And we used funds from debt issuances in the local market with more attractive rates to finance our operation.”
St Mary’s Cement obtains extension for McInnis cement plant dust emissions compliance order
21 July 2022Canada: The Canadian government’s Environment and Climate Change department has granted an extension to St Mary’s Cement to an order regarding alleged sticky dust emissions from its McInnis cement plant. The Journal de Québec newspaper has reported that the producer now has until 8 August 2022 to submit its observations on the situation. Environment and Climate Change Canada has identified 12 different equipment failures as contributors to the alleged illegal emissions. On 20 July 2022, it had received a total of 80 reports from the public about the situation.