France: Saint-Gobain has agreed to buy Chryso for an undisclosed sum. It said that the construction chemicals producer had an enterprise value of Euro1.02bn, based on its recent earnings and anticipated synergies. Saint-Gobain intends to finance the acquisition from the proceeds of other divestments made by the group. Key benefits it expects from the purchase include a strengthened position in the construction chemicals market, market growth in the sector, further strategic movements towards sustainability goals through the use of additives, anticipated ease of integration and value for shareholders.

“The acquisition of Chryso is a unique growth platform opportunity for Saint-Gobain to further develop our already strong presence in the growing construction chemicals market. It is fully in line with our environment, social and governance strategy of providing a sustainable and performance driven value proposition to our customers,” commented Pierre-André de Chalendar, chairman and chief executive officer of Saint-Gobain, and Benoit Bazin, chief operating officer.

Subject to consultation and approval with employee representative bodies and competition authorities the acquisition is expected to be finalised in the second half of 2021.

Germany: HeidelbergCement has completed a comprehensive Concrete Sustainability Council (CSC) certification campaign at its 10 cement plants, 12 concrete plants and five aggregates sites underwent the certification process. One cement plant– the Lengfurt, Bavaria, plant - and two concrete plants achieved Platinum certification. The Lengfurt cement plant is the first German cement plant to do so.

Senior manager sustainable construction and public affairs Christian Artelt said “CSC certification allows production sites to gain a holistic understanding of their sustainability performance.” He added “Our successful engagement in CSC certification highlights our commitment to sustainability.”

Mexico: Cemex says that it has supplied its low-CO₂ Vertua concrete to 786 construction works in Mexico. The El Sol de San Luis newspaper has reported that the volume so far delivered totals 33,000m³. In late May 2021, 398 further projects have placed orders for future deliveries.

Italy: Switzerland-based LafargeHolcim has announced its participation in a partnership to build the world’s first 3D-printed concrete bridge in Venice, Venice province. The company will supply cement for the project. The bridge will feature in the European Cultural Centre (ECC)’s Time Space Existence exhibition at the Venice Architecture Biennale 2021 from May 2021 to November 2021. Other partners for the project are ETH Zürich’s Block Research Group (BRG) and UK-based Zaha Hadid Architects’ Computation and Design Group.

Argentina: Holcim Argentina, part of Switzerland-based LafargeHolcim, has inaugurated a new 0.5Mt/yr clinker production line at its Malagueño cement plant in Cordoba. The new line increases the plant’s clinker production capacity by 45%. Additionally, a new 630,000t/yr grinding plant will increase the plant’s cement capacity to 4.7Mt/yr.

Chief executive officer Christian Dedeu said, "With this expansion of our capacity, more than 450km of road and more than 7.2Mm² of housing can be built - equivalent to more than 72,000 houses." He added, "The new line is a big bet on the domestic market and responds to the growing national demand for materials for residential construction, private investment and infrastructure works."

US: Eagle Materials recorded consolidated net sales of US$1.62bn in its 2021 financial year, up by 16% year-on-year from US$1.40bn. Its net earnings quadrupled to US$339m from US$70.9m. Cement sales volumes increased by 26% to 7.47Mt from 5.93Mt and cement sales increased by 27% to US$924m from US$730m.

President and chief executive officer Michael Haack said, “Across all measures, fiscal 2021 was extraordinary for Eagle as we met and overcame challenges that were inconceivable just a year earlier. The resilience of our business model, our financial discipline and our team’s operational and strategic execution allowed us to deliver record financial results, integrate the largest acquisition in the company’s history and further streamline our business portfolio by divesting several non-core businesses, all while achieving industry leading safety performance. Our strong operating cash flow enabled us to reduce leverage to under 1.5 times net debt-to-earnings before interest taxation depreciation and amortisation (EBITDA), providing us with significant liquidity and increased financial flexibility.” He continued “As we begin our new fiscal year, Eagle is well-positioned, both geographically and financially, with ample raw material reserves to capitalise on the underlying demand fundamentals that are expected to support steady and sustainable construction activity growth over the near and long-term. We remain confident in Eagle’s prospects for continued growth and sustainable value creation for all shareholders.”

India: Prism Johnson’s full-year consolidated net sales fell by 7% year-on-year to US$752m in the 2021 financial year from US$806m in the 2020 financial year. The group’s profit before tax increased more than doubled to US$21.4m from US$8.5m. Cement sales revenue grew slightly to US$354m.

Portugal: Denmark-based FLSmidth has won a contract to supply a chlorine bypass system to Cimpor’s Souselas cement plant. The aim is to eliminate chlorine build-up in the plant’s flue gas after the company increases its refuse-derived fuel (RDF) usage rate to 60%. Work is scheduled to begin in mid-2021, and production will stop until its completion and the commissioning of the installation in early 2022. No value for the order has been disclosed.

Cimpor Cement project manager Paulo Evangelista said, “Investing in the chlorine bypass is a key step on our journey towards reducing our environmental footprint. On top of the obvious incentives to increase our fuel substitution, like lower CO₂ emissions and financial savings, we are experiencing better waste handling infrastructure in the local area. All this has made it an easy choice to make. FLSmidth knows our Souselas site and has been key in delivering a solution that will enable this next phase on our sustainability journey.”

Philippines: CRH and Aboitiz Equity Ventures subsidiary Republic Cement and Building Materials plans to roll out a quality control system to detect product quality across all of its cement plants by 2022. Business World News has reported that the company currently uses data science-based techniques at three sites. It says that it uses the method to predict the 28-day compressive strength without moulding and curing of a batch of cement.

Manufacturing vice president Lloyd Vicente said that with accurate predictions, “our operations can make it quick and precise adjustments to our recipe and other operating parameters, therefore reducing our CO₂ emissions.”

The UK construction market is in a funny situation right now. As the economy has started to grow in 2021, shortages of building materials have been reported following the relaxation of coronavirus-related restrictions. In April 2021, for example, the Construction Leadership Council (CLC) added cement, aggregates and certain plastics to its existing lists of products in short supply. These commodities joined a slew of other materials, including timber, steel, roof tiles, bricks and imported products such as screws, fixings, plumbing items, sanitaryware, shower enclosures, electrical products and appliances. The CLC advised all users to, “plan for increased demand and longer delays, keep open lines of communication with their suppliers and order early for future projects.”

Skip forward a month to May 2021 and these shortages are on more people’s minds with the announcement by the Office for National Statistics that UK monthly construction output grew by 5.8% month-on-month to around Euro16.5bn in March 2021 due to both new work and to repair and maintenance projects. Quarter-on-quarter output also rose by 2.6%, adding to the impression of a building sector emerging from the fog of lockdown. In the face of this good news Nigel Jackson, the chief executive of the UK mineral Products Association (MPA), was asked about reported shortages of cement. He told local press this week that “it would not be surprising if there were short-term issues of supply as the economy gathers momentum.” He added that the biggest issues had been observed in levels of bagged cement typically used in domestic projects.

The MPA followed this up with the results of a survey of building materials manufacturers that reported a slow but steady start to 2021 with mounting construction demand month-on-month. Sales volumes of aggregates and concrete were both up quarter-on-quarter but volumes of asphalt and mortar fell. Unfortunately that survey didn’t cover cement volumes but it did have more to say about concrete. In its view ready-mixed concrete sales had been subdued since 2017 due to the UK’s departure from the European Union (Brexit) and a general slowdown in residential building. The market recovery seen so far in 2021 was likely to be merely a return to growth from a subdued level of activity that pre-dates Covid-19.

At the time of writing the UK government faces a decision about whether to continue opening up the economy or exercise caution in the face of the as-yet unknown consequences of the Indian variant of coronavirus. This may delay talk of building materials shortages but it can’t avoid it forever. In the UK, cement shortages appear to be due to the self-build segment and will hopefully soon be resolved.

A shortage of cement in the UK may not mean much to people outside the country, with the exception of exporters. Yet the wider picture here is that the coronavirus pandemic has affected the production of building materials, changed end-user behaviour and distorted markets around the world. Other examples include the row over the price of cement in Nigeria, the boom in cement sales in Brazil in the second half of 2020 or reported shortages in Jamaica this week. A significant number of people, when forced to spend more time at home, appeared to save money and then decided to either move to a different house or make their current one better. Yet at the same time differing government restrictions and market fluctuations have seen building material output levels vary widely. Other reasons are at play both local and international. Brexit in the UK is one example of the former, as importers and exporters have been forced to grapple with new rules and costs. The temporary blockage of the Suez Canal in March 2021 is one example of the latter. No wonder supply chains are struggling. That last point goes wider than building materials though, for example, as anyone trying to buy semiconductors has discovered. One fear behind all of this though is whether these are temporary shortages or whether inflation is on the way for the global economy generally. In this is the case, then it signals the end of the low consumer inflation rate era since the financial crash in 2008 and may herald changes in behaviour from both producers and consumers.