Displaying items by tag: corporate

Indonesia: Thyssenkrupp Polysius Indonesia has inaugurated its new offices in Jakarta's Tempo Scan Tower. The supplier said that the new headquarters will bring a stronger business focus to its decades-long presence in Indonesia by providing a broader scope of local service-driven solutions. Thyssenkrupp Polysius Indonesia country manager Ridwan Setiawan will head the new office.

Asia Pacific Regional head of cement Lukas Schoeneck said “With this new office, we are celebrating the return of the name and brand Polysius in one of the most important and energetic markets in the Asia Pacific region. We look forward to reshaping our focus in the cement industry and on building a sustainable future together with our clients, especially in transforming the cement industry with our #grey2green initiative."

Brazil: 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."

HeidelbergCement’s latest sustainability target has been to reduce the ‘cement’ footprint from its own name. From this week it has become Heildelberg Materials. Of the top ten global cement producers in Global Cement Magazine’s roundup in the December 2021 issue only three now have the word ‘cement’ in their names.

In Heildelberg Materials’ own words, the “new brand identity underlines the company's pioneering role on the path to carbon neutrality and digitalisation in the building materials industry.” Chair Dominik von Achten then goes on to explain that the company is proud of its cement business but its range of services goes far beyond cement. This is certainly true but in 2021 the cement business generated 44% of the group’s revenue. 19% came from aggregates, 25% from ready-mixed concrete plus asphalt and the remaining 12% from services and other lines.

Yet, Heidelberg Materials is also a leader in driving innovation in carbon capture, utilisation and storage (CCUS) for the cement sector with a full production line capture unit planned for commissioning in 2024 at the Brevik plant in Norway. When it opens it will be the only full scale CCUS unit at a cement plant anywhere in the world. The group further plans to reduce the CO₂ footprint of its cementitious products to below 500kg/t CO₂ by 2030 and aims to generate half of its revenue from low-carbon products. These are not small achievements or ambitions.

Meanwhile, Holcim completed the divestment of its Indian business to Adani Group this week for US$6.4bn. For Holcim the move marks a milestone in the reshaping of its business away from developing markets and the diversification on its product lines into light (and more sustainable) building materials. So why would a company like Adani Group move into the cement sector when multinationals are getting out?

Money is the obvious answer and the one group owner Gautam Adani raised at a speech marking his latest mega-acquisition. He said, “Our entry into this business is happening at a time when India is on the cusp of one of the greatest economic surges seen in the modern world.” He expects his new cement arm to become the most profitable cement producer in the country although his competitors may have other ideas. As well as operational efficiency, Adani also plans to inject US$2.5bn into the business as part of plans to increase its production capacity to 140Mt/yr in the next five years, from around 70Mt/yr at present. However, the financial press in India and elsewhere has wondered how much debt Adani Group can cope with and whether it will consolidate its latest acquisitions or simply use them to buy into even more sectors. Time will tell.

Lastly, it should be noted that Adani Group’s new rival UltraTech Cement has targeted a production capacity of 154Mt/yr by 2025. Any growth in the Indian market will clearly be contested. It is also worth noting that the latter company has retained ‘cement’ in its name. For now at least.

Germany: The former HeidelbergCement launched its new name and branding as Heidelberg Materials at a group level on 20 September 2022. The new two-word moniker underlines the cement producer's pioneering role on the path to building materials digitisation and carbon neutrality. 'Materials' stands for its innovative portfolio of sustainable and intelligent building materials, as well as digital solutions. The group's subsidiaries will also change their names to Heidelberg Materials from the beginning of 2023. Among the first to undergo the transformation will be US-based Lehigh Hanson, which will become Heidelberg Materials in early 2023.

Managing board chair Dominik von Achten said “We are proud of our cement business, but the company's range of services goes far beyond cement. Today, and even more in the future.Our future is sustainable. Our future is digital. Customer demands, markets and competitors are changing rapidly. Opportunities and challenges go beyond country borders; communication is becoming increasingly global. Differentiation opportunities arise." Concerning the company's cement business, von Achten said "We will be the first company in the world to offer carbon-free cement at large scale as early as 2024. We are vigorously driving forward the scaling of our CCUS activities: by 2030, we will reduce our CO₂ emissions by 10Mt/yr with the projects we have already launched. "

Uruguay: The Administación Nacional de Combustibles, Alcohol y Portland (ANCAP) has announced plans to find a partner for its cement and lime business. The state-owned company is attempting to restore competiveness to the national market, according to La República newspaper. It will first call for expressions of interest and then take selected offers forward.

ANCAP operates two integrated cement plants, a lime plant and an associated packing and distribution unit. It reportedly made a loss of US$15m in 2021.

Finland: Advancetec has changed its name to Schmersal Finland. The company was originally founded in 1993 in Helsinki as a sales company for automation technology. Germany-based Schmersal Group entered into a sales cooperation with Advancetec in the 1990s and eventually fully acquired the company in 2019.

Schmersal Finland sells products from the Schmersal portfolio and the safety services of Schmersal’s services division under the brand name tec.nicum, primarily in Finland and Estonia. Customers include well-known companies from the sectors paper manufacturing, food processing, robotics, marine industry and heavy industry.

Jukka Harmoinen, the managing director of Schmersal Finland, said “The new name will make it easier for us to increase the visibility of the Schmersal brand in Finland. In the future we would like to expand our product range and to develop new projects in cooperation with engineering and consulting companies.”

Australia: BGC has cancelled its latest attempt to sell the company, blaming the decision on labour shortages and supply chain disruption. It said it had received “very strong interest from a range of parties” but had made the decision based on poor market conditions, according to the West Australian newspaper. A shortage of skilled tradespersons in West Australia is negatively affecting the local home construction sector and reducing BGC’s value consequently. A second attempt to sell the company started in April 2022 with Macquarie Capital appointed to run the process. The company plans resume its sale in 2023 when market conditions have improved.

Australia: James Hardie has informed investors that it has frozen all non-critical hiring. The Australian newspaper has reported that the move is designed to counteract the impacts of a rise in costs. The company also plans to announce a new round of price rises on its products.

A disturbing story has emerged this week concerning attempts by an unknown party to seize control of Holcim Russia. The situation marks a dangerous new phase for multinational companies operating in Russia. This includes a number of building materials producers and their suppliers.

The public side of events started on 26 July 2022 when Holcim Russia announced on its website that a legal case concerning an unpaid loan against it had been initiated at a court in Chechnya and that someone was also trying to change ownership documents with the Federal Tax Service. This was then followed by an interview by Forbes Russia with the new alleged owner of the construction materials company explaining how he had made the so-called acquisition. Holcim Russia immediately hit back hard with multiple and well researched reasons why this couldn’t be so. These included the supposed private investor’s apparent lack of a business past, a long criminal history, psychiatric records, social media accounts of an individual of seemingly modest means and so on. Kommersant FM has since reported that the court in Chechnya took the side of the asset raider but that both the Federal Security Service (FSB) and the Ministry of Industry and Trade are now investigating the case.

Taking loans from a mystery businessman with no apparent past does not look credible for a multinational like Holcim and its subsidiaries. This particular method was also flagged up by one of the legal sources quoted by Kommersant FM as a recognisable corporate scam in Russia dating back to the 2000s. What is more certain is that Holcim reported that it had a 100% interest in Holcim Russia in its annual report for 2021. It then said it was going to leave the Russian market in late March 2022 following the start of the war in Ukraine a month earlier. By May 2022 it said that it had attracted the interest of 30 possible buyers. Only this week Holcim’s chief executive officer Jan Jenisch confirmed in the company’s second quarter conference call that divestment discussions were 'active' and ongoing with a 'solution' expected in the coming months. The timing of Holcim Russia’s sudden difficulties is therefore noteworthy given that a potential buyer has not yet been publicly announced.

Whoever has tried their luck at taking over Holcim Russia has done so at a time when anti-Western sentiment is high in Russia. For example, the government attempted to pass a new law seizing the assets of Western companies trying to leave the country in July 2022. Any intervention by the authorities is likely to take some of this into account and they may be wary of helping an organisation with perceived European links. Naturally, the nationalist card was played up in the interview with Forbes Russia. For its part, Holcim Russia has commented that the ongoing 'illegal action' might lead to production delays for building materials supporting key housing and infrastructure projects. Whatever is going on it must be a tense time for Holcim Russia and its 1500 employees. We’ll leave the last word to Holcim Russia’s general manager Maxim Goncharov who has described the situation as the “theatre of the absurd.” He is not wrong.

El Salvador: Holcim El Salvador has officially inaugurated an upgrade to its Maya cement plant. The company has invested US$11.6m towards increasing clinker production capacity by 0.45Mt/yr at the unit. Total cement production capacity of the plant has increased to 1.9Mt/yr from 1.2Mt/yr previously. The Maya cement plant previously reduced production levels significantly in 2008 in response to the global financial crisis at the same time. Oliver Osswald, Region Head of Holcim LATAM, attended the inauguration. The event was also used to launch Holcim’s new corporate branding in the region.