Displaying items by tag: health & safety

UK: Chris Leese has decided to leave Cemex UK after 30 years with the company. His varied career at Cemex has seen him taking responsibility for a broad range of activities, notably as Vice President of Readymix VP and more latterly as Vice President of Aggregates.

Leese has been a long-standing champion of health and safety improvements, taking a lead role at Cemex and the broader industry. He was the chair of the MPA Health and Safety committee for over nine years.

Russia/Ukraine: Dyckerhoff cement plants in Russia and Ukraine have gained OHSAS 18001 or ISO 45001 certification in occupational safety. The OHSAS 18001 and ISO 45001 standards provide for a safe and healthy workplace environment and set forth guidelines for continually identifying and controlling health and safety risks, reducing accidents and improving overall performance.

Philippines: Republic Cement has held a rally assembling over one thousand construction workers at its Norzagaray Plant to aim for five million safe man hours. The cement producer has reached 4.5 million man hours at its expansion projects at Bulacan, Batangas and Iligan. This includes no lost-time injuries or fatalities.

“Safety is not a punishment. It’s not a punishment to wear your helmet, boots, or harness. It’s a gift of life - the life of your fellow workers and of your family,” said
Roy Ruedas, Project Lead at Aboitiz Construction.

Mexico: Holcim Mexico has won an award from the National Chamber of Cement (CANACEM) for reporting no accidents at its cement plants in 2018. The award was presented at CANACEM‘s XXXVI National Congress of Occupational Health and Safety in Chihuahua.

Barbados: Arawak Cement plans to introduce alcohol breath tests for all of its workers in late March 2019. Previously the cement producer had been conducting random tests, according to the Barbados Today newspaper. The introduction date for the breath test has been delayed following negotiations with the Barbados Workers Union. Multiple breaches of the company’s alcohol rules could lead to drug treatment, counselling or discipline. The cement producer says it has introduced the alcohol testing on health and safety grounds.

US: Lehigh Cement’s Mitchell plant in Indiana has won a 2019 Governor’s Workplace Safety Award for innovations as a medium-sized company. The awards are issued by the Indiana Department of Labor.

The subsidiary of Germany’s HeidelbergCement recorded no lost-time accidents in 2018 and the plant has not had a lost-time accident since September 2015, according to the Herald Times newspaper. The company uses a Safety Action Plan with specific targets that focus on areas of significant risk, including critical risk management and zero fatalities. It also runs weekly safety conversations between employees to raise health and safety issues with management.

Cemex was the first of the big multinational cement producers to release its fourth quarter results this week. Revenue, sales volumes of cement and gross profit were all up in single digits. Earnings growth was less impressive, with operating earnings before interest, taxation, depreciation and amortisation (EBITDA) rising by 1% year-on-year on a like-for-like basis to US$2.56bn in 2018. This was a decrease of 1% in real terms. Cemex blamed this on rising energy costs and on lower earnings from its territories outside of Mexico and the US.

Figure 1: Breakdown of Cemex’s net sales in 2018 by region: Source: Cemex.

As Figure 1 shows, over three quarters of Cemex’s sales come from Mexico, the US and Europe. Elsewhere its presence is smaller but it does have plants in key countries like the Philippines and Egypt. The former, for example, saw its cement sales rise by 7% in 2018 bringing along the rest of the Asia, Middle East and Africa region into volume growth.

Some other non-financial results to consider lead with the good news that 2018 was the first year ever that Cemex has had without any employee fatalities. This probably doesn’t include contractors or third parties, we’ll have to wait for the next sustainability report to find out for sure, but this is undoubtedly a milestone. Another point of interest was the growth of Cemex Go, its online sales platform. In 2018 it was responsible for around 40% of the company’s sales volumes. Around 85% of its recurring clients use it and it has nearly 30,000 customers. The analytics alone from the system and the potential for further tailoring it towards both customer and company objectives sound promising. Lastly, Cemex was also keen to note its alternative fuels substitution rate of 27% in 2018.

In recent years the other metric that the analysts have been watching is Cemex’s debt. It dropped by 8% year-on-year to US$10.4bn in 2018 compared to a high of US$17.5bn in 2013. Its plan is to reach an ‘investment-grade’ balance sheet by 2020.

In this way Cemex has been ahead of the curve of the major European cement multinationals like LafargeHolcim and HeidelbergCement that have taken on ‘indigestible’ acquisitions more recently. Possibly behind all of these companies is CRH, which has steadily been growing in recent years through acquisitions. It made the headlines this week on the corporate side when Swedish so-called ‘activist investor’ Cevian bought what is thought to be around a 3% stake in the Irish company. The financial press thinks it’s after a seat on the board to try and influence CRH to focus on margins rather than its acquisition strategy. CRH’s EBITDA margin was 12% in 2017 compared to 23%, 19% and 19% for LafargeHolcim, HeidelbergCement and Cemex respectively. This is just one way of comparing these companies. CRH, for example, might be keen to promote how its other metrics like cash generation and return on capital employed perform compare favourably to its competitors.

The point though is that it has taken Cemex over a decade since its acquisition of Rinker to rebuild its finances. All being well, it stands ready to take advantage of whatever the cement market holds in the 2020s.

India: Ambuja Cement has introduced a comprehensive Group Personal Accident Insurance (GPA) policy for truck drivers. The new policy has a policy cover of around US$7m. It is set to benefit nearly 12,000 drivers, who are third-party employees, in case of accidental death or permanent disability. The subsidiary of Switzerland’s LafargeHolcim says it is the first cement company in the local sector to start such as a plan.

“Road safety has been a big challenge as we have little control beyond our plants’ premises. Introduction of Group Personal Accident Insurance policy for the truck drivers – who operate for round-the-clock dispatches – is yet another step by Ambuja Cement to exhibit how much we value them and their work,” said Ajay Kapur, the managing director and chief executive officer (CEO) of Ambuja Cement.

Spain: Cementos Portland Valderrivas’ (CPV) Alcalá de Guadaíra plant near Seville has updated its environmental standard. It uses an integrated environmental management system, based on the UNE-EN ISO 14001: 2015 standard and the European regulation on eco-management and eco-auditing (EMAS) CE No. 1221/2009, modified according to regulation (EU) 2017 / 1505. The plant has been certified since 2004 but this was updated to the new version of the standard in mid-2018.

The plant also uses a health and safety management system certified since 2009 according to 18.001: 2007 OHSAS. The unit reported that it had no accidents to the end of August 2018.

Mexico: Cemex Ventures has invested in Prysmex, a Mexico-based startup that offers a product capable of detecting and helping to prevent workplace accidents through the Internet of Things and real-time data collection. Following a successful trial period, Cemex has installed Prysmex’s product at all its cement plants in Mexico.

Prysmex’s product features a web platform with a collaborative management app that monitors the environmental and geolocation variables of unsafe acts and conditions on customized 3D maps, enabling real-time decision-making and increased industry safety and productivity. Through the Internet of Things, Prysmex enables an analysis of data such as impacts, light and noise levels, locations, temperatures and the presence of toxic gases. Placed on the workers' helmets, Prysmex devices monitor and communicate in real time users' conditions, alerting them to potential situations and high-risk areas. In addition, its web application provides an analytical report of workers' and plant conditions, enabling better workplace decision-making and accident prevention at all times.

Founded by chemical engineer Susana Ruiz and civil engineer Patricio de Villa in Monterrey, Mexico, Prysmex was the finalist of Cemex Ventures Startup Competition 2017 and is now part of the company's portfolio.