Displaying items by tag: diversification

Thailand: Siam Cement Group (SCG) has forecast a 5% year-on-year rise in its full-year revenues due to economic revival and the government’s current stimulus package. President and CEO Thammasak Sethaudom said that increased customer purchasing power in Vietnam will raise SCG’s local cement and building material sales

SCG’s additional focuses will be on entering the Australia and North America markets and developing its high value-added products segment.

Switzerland: Holcim recorded net sales of €5.71bn in the first quarter of 2024, down by 2% year-on-year from €5.85bn in the first quarter of 2023. Nonetheless, recurring earnings before interest and taxation (EBIT) grew by 8% to €543m from €503m. The group noted continuing profitable growth. Its Solutions & Products unit raised roofing sales by 67% in local currencies, including 38% organic growth. The unit also acquired Germany-based advanced green roofing systems producer ZinCo and Argentina-based precast and pre-stressed concrete construction systems producer Tensolite. Additionally, Holcim closed three separate acquisitions in the ready-mix concrete, aggregates and construction-demolition materials segments.

In North America, Holcim grew its recurring EBIT by 3.9% in local currency, and anticipates continuing growth in 2024. In its Latin America region, the group noted a strong pipeline of infrastructure projects and increased nearshoring in Mexico. Europe yielded double-digit recurring EBIT growth, while Asia, Middle East & Africa remained profitable in local currency terms.

Netherlands: Siam Cement Group has acquired new shares in electrochemistry start-up Avantium through its affiliate Senfi Ventures. Reuters has reported that the Thailand-based group now holds a 3% stake in Avantium, through total investments of US$4.82m.

Avantium’s technologies include the Volta system, which produces commercial chemicals using captured CO₂. Avantium previously tested the system at a Titan Cement Group cement plant in Greece.

Switzerland: Holcim says that it aims to conclude 15 - 20 new acquisitions in 2024, and potentially ‘many more.’ The value of individual deals ranges from US$5.78 – 115m, but might possibly exceed US$230m. Holcim says that it is focussing on growing its construction waste recycling business in Belgium, France, Germany and the UK, as well as its aggregates business in Eastern Europe.

India: UltraTech Cement has concluded an agreement to acquire Kesoram Cement from Kesoram Industries for US$912m. The Times of India newspaper has reported that the price includes an equity value of US$646m and debt of US$267m. As part of the deal, Kesoram Industries shareholders will gain single shares in UltraTech Cement for every 52 shares they hold in Kesoram Industries.

Kesoram Cement operates two cement plants – the 10.8Mt/yr Vasavadatta plant in Karnataka and the 660,000t/yr Kesoram cement plant in Telangana – and a packing plant in Maharashtra.

Kesoram Industries says that the sale of Kesoram Cement will help it to focus on its chemicals, rayon and transparent paper businesses.

India: JK Cement has advanced its diversification into the energy sector with four new acquisitions. The Free Press Journal has reported that the cement producer has signed agreements to acquire stakes in CleanMax Matahari, Fourth Partner Energy, Nay Energy and Renewable Energy V.

Mexico: Cemex’s sales were US$13.2bn during the first nine months of 2023, up by 13% year-on-year from US$11.7bn in the first nine months of 2022. The group’s operating earnings before interest, taxation, depreciation and amortisation (EBITDA) were US$2.6bn, up by 27% from US$2.1bn. This came in spite of a 7% year-on-year decline in its cement volumes, to 39.1Mt from 41.8Mt. Volumes rose by 3% in Mexico, but fell by 13% in the US, 4% in South, Central America and the Caribbean and 10% in Europe, Middle East, Asia and Africa.

Cemex chief executive officer Fernando González said “2023 is proving to be an exceptional year for our company, and I am especially encouraged by our recovery of EBITDA margins to 2021 levels, a key strategic priority. The success of our pricing strategy, contribution of growth investments and our fast-growing Urbanisation Solutions business, as well as decelerating cost inflation, are contributing to profitability in a very meaningful way.” He continued “We are making significant progress on our decarbonization roadmap, reducing Scope 1 and Scope 2 carbon emissions by 12% and 11%, respectively, since 2020. Prior to the introduction of our Future in Action programme in 2020, a reduction of this magnitude would have taken almost 15 years.”

India: Grasim Industries has secured board approval for an issuance to raise up to US$480m. Local press has reported that the producer will use the proceeds for planned capital expenditure investments, including in the paints sector, as well as to repay existing borrowings and for ‘general corporate’ purposes.

China: China Resources Cement (CRC) has rebranded to China Resources Building Materials Technology (CRBMT). The producer says that this reflects its business positioning and development strategy, and marks the launch of its transformation into a building materials group around its existing cement business.

Taiwan Cement has just commissioned a 107MWh energy storage project at its Yingde plant in Guangdong province, China. Subsidiary NHOA Energy worked on the installation and has been promoting it this week. The battery storage works in conjunction with a 42MW waste heat recovery (WHR) unit, a 8MWp solar photovoltaic unit and a proprietary energy management system. It is expected to store about 46,000MWh/yr of electricity and save just under US$3m/yr in electricity costs.

NHOA Energy, formerly known as Engie EPS before Taiwan Cement bought a majority stake in it, claims it is one of the largest industrial microgrids in the world. We can’t verify this for sure, but it is definitely large. For comparison, the 750MW Vistra Moss Landing Energy Storage Facility in California often gets cited as the largest such facility in the world. This is run by a power company, as are many other large battery energy storage systems. In its annual report for 2022 Taiwan Cement said it was planning to using NHOA’s technology to build seven other large-scale energy storage projects at sites in Taiwan including its integrated Suao, Ho-Ping and Hualien cement plants.

The aim here appears to be supplying renewable electricity to the national grid in Taiwan. Taiwan Cement is diversifying away from cement production, with an aim to derive over 50% of its revenues from other activities besides cement by 2025. In 2022 cement and concrete represented 68% of its sales, while its electricity and energy division, including power supply and rechargeable lithium-ion batteries, represented 29%. The company is also not using its own batteries at the Yingde plant. Instead it is using lithium iron phosphate batteries supplied by Ningde Times. This is worth noting, as the cement producer’s batteries are used in vehicles.

Global Cement regularly reports news stories on cement plants that are building photovoltaic solar power arrays. However, so far at least, energy storage projects at scale have been rarer. One earlier example of an energy storage system loosely associated with a cement plant includes the now decommissioned Tehachapi Energy Storage Project that was situated next to the Tehachapi cement plant in California. That project tested using lithium ion batteries to improve grid performance and integrate intermittent generation from nearby wind farms. It is also worth noting that Sumitomo Osaka Cement’s sister company Sumitomo Electric is one of the world’s larger manufacturers of flow batteries, although no installation at a cement plant appears to have happened yet. In simple terms, flow batteries are an alternative to lithium ion batteries that don’t store as much energy but last longer.

More recently, Lucky Cement in Pakistan started commercial operation of a 34MW solar power plant with a 5.59MWh energy storage unit at its Pezu plant in Khyber Pakhtunkhwa in late 2022. Reon Energy provided the equipment including a lithium-ion based battery approach to the storage. Then, in March 2023, Holcim US said that it was working with TotalEnergies to build solar power capacity and a battery energy storage unit at the Florence cement plant in Colorado. TotalEnergies will install, maintain and operate a 33MW DC ground-mounted solar array and a 38.5MWh battery energy storage system at the site. Operation of the renewable energy system is expected to start in 2025.

Away from electrical batteries, the other approach to energy storage at cement plants that has received attention recently from several quite different companies has been thermal batteries. The two prominent groups using them at different scales are Rondo Energy and Synhelion. The former company has developed its Heat Battery technology, which uses refractory bricks to absorb intermittent renewable energy and then supply the energy back as a steady stream of hot gas for use in a cement plant mill, dryer, calciner or kiln. Both Siam Cement Group (SCG) and Titan Cement have invested in Rondo Energy. In July 2023 SCG and Rondo Energy said that they were planning to expand the production capacity of a heat battery storage unit at a SCG plant to 90GWh/yr. Synhelion, meanwhile, has been working with Cemex on using concentrated solar power to manufacture clinker. It achieved this on an ‘industrially viable scale’ in August 2023. It has since been reported that the companies are working on building a small scale industrial plant at Móstoles near Madrid by 2026. Crucially for this discussion though, the process also uses a thermal energy storage unit filled with ceramic refractory material to allow thermal energy to be released at night, and thus ensure continuous operation.

The examples above demonstrate that some cement companies are actively testing out storing energy at scale. Whilst this will not solve the cement sector’s process emissions, it does potentially start to make using renewable energy sources more reliable and reduce the variable costs of renewable power. Whether it catches on remains to be seen. Most of these kinds of projects have been run by power companies and that is where it may stay. It is instructive to note that Reon Energy was the only company to state that its battery-based energy storage system has a life-span of 8 - 12 years. Our current vision of a net-zero future points to high electrical usage but it may be shaped by how good the batteries are… from our phones to our cars to our cement plants.

For more information on Rondo Energy read the January 2023 issue of Global Cement Magazine