Global Cement Newsletter

Issue: GCW690 / 18 December 2024

Headlines


Typical! We published a cement sector news review for 2024 in the December 2024 issue of Global Cement Magazine and a load of big important events happened afterwards. So, here is a roundup of some of the major stories that have taken place in the last two months of the year.

The TL:DR (too long; didn't read) version of ‘Global Cement News in 2024’ was: focus on the US market by the multinationals; cement joining the emissions trading scheme in China as the world’s largest market stagnates; continued rivalry between UltraTech Cement and Adani Group in India as that sector grows; markets in the Middle East and North Africa adjusting to higher exports; the drawn out divestment of InterCement in Brazil; lots of new plants in Sub-Saharan Africa reflecting demographic trends; and an emphasis on construction and demolition materials in Europe but one on aggregates in North America.

However, from November 2024 onwards… Donald Trump was re-elected as President in the US, Quikrete put in an US$11.5bn deal to buy Summit Materials, the United Nations Climate Change Conference (COP29) in Azerbaijan ended in acrimony, Gautam Adani was accused of fraud by a US court and Huaxin Cement said it was buying Holcim’s majority stake in Lafarge Africa for US$1bn. These have all been covered in previous editions of Global Cement Weekly. Check them out for more information. One can tell it’s been a busy tail-end to the year though when a US$600m agreement by Heidelberg Materials North America to buy Giant Cement Holding did not make the top five, admittedly selective, noteworthy news stories of the last two months of 2024. These stories also, roughly, followed the trends highlighted in the ‘Global Cement News in 2024’ article.

To reflect on the Adani story a few weeks later, nothing much seems to have occurred. Yet. The share price of various Adani Group companies fell when the US authorities made the announcement in late November 2024 but they have mostly regained much of their value since then. The consensus by Reuters, this week, was that the US prosecutors have a strong case backed up by documentation but extradition seems unlikely. Adani himself has made public appearances in India since the allegations surfaced. One minor consequence has been that Gautam Adani exited the US$100bn Bloomberg Billionaires Index in 2024. This is likely to have been caused, in part at least, by the allegations from Hindenburg Research in 2023 and the current legal problems from the US bringing down share prices. On the cement side of Adani Group it appears to have been business as usual so far. A large-scale investment in Rajasthan was announced in December 2024 and, this week, plans to merge subsidiaries Sanghi Industries and Penna Cement with Ambuja Cements were disclosed.

Another general trend that we haven’t covered much online have been changes in the Australian market. Last week, Cement Australia, a joint venture between Heidelberg Materials Australia and Holcim Australia, said it was acquiring the cementitious division of the Buckeridge Group of Companies (BGC) for US$800m. This follows CRH’s purchase of a majority stake in AdBri that was approved by the latter’s shareholders over the summer. Around the same time, Seven Group Holdings completed its acquisition of the remaining 28% stake in Boral that it did not already own. For more on the situation in Australia and New Zealand read the article in the January 2025 issue of Global Cement Magazine.

That’s it for 2024. Unless another massive news story in the cement sector gets announced in the next week-and-a-half.

Global Cement Weekly will return on Wednesday 8 January 2025


Peru: Cementos Pacasmayo has appointed Ely Hayashi as its Chief Financial Officer (CFO) with effect from 1 April 2025. She will succeed Manuel Ferreyros in the post, who has been CFO since 2008.

Hayashi has worked for Cementos Pacasmayo since 2005, when she started as a Management Control Analyst intern. She subsequently became Head of Management Control in 2011 and then the Central Manager of Finance and Management Control in 2022. She holds a degree in business administration from the Universidad del Pacífico in Lima and an International Master of Business Administration from the IE Business School.


Germany: KHD will carry out a front-end engineering design (FEED) study for the new oxyfuel kiln at Heidelberg Materials' Geseke cement plant, part of the GeZero carbon capture and storage (CCS) project. The project will capture and store around 0.7Mt/yr of CO₂.

Matthias Mersmann, chief technology officer at KHD, said "At KHD, we have long recognised oxyfuel technology’s potential for cement decarbonisation and are well-positioned to contribute to this important flagship project.”


India: Ambuja Cements will merge its recently acquired companies, Sanghi Industries and Penna Cement Industries. Ambuja Cements purchased Sanghi Industries in December 2023 and Penna Cement in August 2024. Ambuja Cements holds a 58% share in Sanghi Industries and 99.94% share in Penna Cement. The transaction is expected to be completed within 9-12 months, according to the Deccan Herald.


Australia: Maribyrnong council has unanimously rejected a proposal to expand Steel Cement's Yarraville plant. The US$113m expansion proposal involved the construction of new sheds, a workshop and two grinding mills for 24-hour clinker grinding, according to Star Weekly. The plan faced strong local opposition, with 109 objections citing environmental and amenity concerns. Lisel Thomas from the Maribyrnong Truck Action Group stated that pollution was already a big problem in the area, and would worsen following the expansion, while Steel Cement argued the expansion would offer environmental benefits, since its proximity to the Port of Melbourne would remove ‘1500 truck movements for every ship that arrives.’

Steel Cement was reportedly ‘disappointed but not surprised’ by the council’s decision.


Kyrgyzstan: Kyrgyzstan has lifted the temporary ban on the import of various types of cement. The Cabinet of Ministers signed a resolution to allow the import of Portland cement, aluminous cement, slag cement and similar hydraulic cements, in ready form or as clinker.


Mozambique: President Filipe Nyusi has inaugurated a grinding plant in Niassa Province, northern Mozambique, valued at US$20m. The plant has the capacity to produce 0.2Mt/yr of Portland cement, according to Club of Mozambique news.

Nyusi said the plant would supply Niassa and neighbouring provinces, including Cabo Delgado, Nampula and Tete, improving competitiveness in the northern market and reducing reliance on imports impacted by exchange rates. The plant is expected to lower market and transport costs, particularly for remote districts.

Present Nyusi said “It [the plant] already has 100 workers, which means that 500 people will benefit directly from this plant in terms of income, and many more will benefit indirectly.”

The first stone for the construction of the plant was laid back in October 2018 by former Niassa governor Arlindo Chilundo.


Jamaica: Caribbean Cement Company has reached a milestone in its kiln expansion project with the installation of a 160t-capacity surge bin and solid fuel equipment.

The development ensures a stable and increased fuel supply to the kiln during cement production, according to Loop News.

Jorge Martinez, managing director of Caribbean Cement, said “The successful installation marks a significant step forward in enhancing our production capabilities. This investment is a main milestone of the expansion project to be completed in the first half of 2025 with the aim of increasing the efficiency and stability of our operations. It also demonstrates our commitment to meeting the local demand for cement.”


India: UltraTech Cement has begun transporting mineral gypsum via National Waterway 1 (Ganga-Bhagirathi-Hooghly river system) in a pilot project supported by the Inland Waterways Authority of India and Inland & Coastal Shipping, a Shipping Corporation of India subsidiary.

The consignment is being shipped from Haldia port, West Bengal, to the Gaighat terminal in Patna, Bihar. It will then be transported to UltraTech’s Pataliputra Cement Works grinding unit in Bihar. UltraTech is reportedly the first Indian cement company to utilise National Waterway 1 for large-scale gypsum transport, with the aim to cut CO₂ emissions and ease congestion on roads and railways.


Vietnam: Vietnam National Cement Corporation (Vicem) has reported consolidated losses for the second consecutive year, of US$55.15m, according to a draft annual report by the Ministry of Construction. Vicem is the only company among six under the ministry to report losses in 2024, with a consolidated loss of US$55.15m due to ‘unfavourable market conditions’, according to The Investor magazine. Its parent company’s loss reached US$9.33m. In 2023, it reported its first-ever loss of US$44.5m amid a drop in demand following the 2016 economic slowdown. By the end of 2023, cumulative losses reached US$88.24m.

The Ministry of Finance's inspection department recently highlighted capital loss risks in Vicem’s subsidiary investments, requiring provisions exceeding US$118.2m. Inspectors have urged the company to assess the financial performance of underperforming businesses.


Global: The World Cement Association has released a white paper titled ‘Long-Term Forecast for Cement and Clinker Demand’, authored by CEO Ian Riley. The paper predicts a global decline in cement demand to 3Bnt/yr by 2050, with clinker demand dropping to 1.5Bnt/yr.

The report attributes the decline to decarbonisation, technological advancements and market dynamics, with the need for carbon capture and storage consequently reduced.

Ian Riley said “The cement industry is undergoing an unprecedented transformation. As we move towards a decarbonised future, understanding the true demand for cement and clinker is critical to ensuring that policies, technologies and investments align with reality. This white paper aims to provide industry leaders and policymakers with the clarity needed to plan effectively and sustainably.”

The analysis also explores disruptive factors such as alternative materials, supply chain optimisation and clinker-free technologies, presenting three scenarios to guide stakeholders in adapting to industry changes and fostering innovation.


Germany: Capsol Technologies has signed a cooperation agreement with Holcim to deliver a CapsolGo carbon capture demonstration campaign at Holcim’s Dotternhausen plant in southern Germany. The CapsolGo campaign will test Capsol’s carbon capture technology using its hot potassium carbonate (HPC) solvent. Capsol Technologies will provide the demonstration as a turnkey solution, including testing and validation to supply critical data and insight into the technology.

Dieter Schillo, plant manager of Holcim (Süddeutschland), said “The CapsolEoP (End-of-Pipe) unit’s design, requiring no external steam supply and exhibiting low energy consumption, makes it an attractive option for our Dotternhausen plant.”

If successful, Holcim plans to deploy Capsol’s technology across multiple cement plants globally. This builds on a feasibility study conducted by Aggregate Industries UK, a Holcim subsidiary, for the Cauldon cement plant in Stoke-on-Trent. Testing at Dotternhausen will run for four months, starting in the second quarter of 2025.


US: Vicat subsidiary National Cement Company of California has signed a cooperative agreement with the US Department of Energy (DOE) Office of Clean Energy Demonstrations to develop the Lebec Net Zero (LNZ) project at its Lebec cement plant in California.

The agreement commits up to US$500m, covering up to 50% of the Phase one cost. The project includes constructing a CO₂ sequestration facility with a 0.95Mt/yr capacity, enabling the plant to capture ‘almost all’ of the plant’s emissions. It will also increase alternative fuel use from locally sourced biomass and reduce the plant’s clinker factor by producing calcined clay-based cement. The plant will reportedly produce carbon-neutral cement.

The first step will be to conduct a preliminary engineering study and establish a community advisory body in charge of relations with local communities. Phase one will run through the first quarter of 2026.


Italy: Cement and clinker imports from non-EU countries rose by 43% year-on-year in the first nine months of 2024, following 2023's high of 2.28Mt of cement and 1.33Mt of clinker, up by 22.6% on 2022 and 572% compared to 2018, according to Federbeton.

Federbeton president Stefano Gallini said “Italy shares its Mediterranean coastline with countries that, although they boast a large cement manufacturing industry, do not share the stringent environmental and safety standards of EU countries. The increase in imports from these countries therefore risks having repercussions not only on the cement and concrete sector, but on the entire Italian economic and social context.”

Gallini warned that Italy faces challenges from cheaper imports driven by lower environmental investments abroad. He added “Federbeton, like the entire hard-to-abate industry, is in a moment of great turmoil, engaged in a path for decarbonisation with investments of €4.2bn in addition to extra operating costs of approximately €1.4bn/yr. Asking the Italian industry for an effort of this type and continuing not to protect it by allowing uncontrolled imports means relocating emissions to foreign countries, to which are added those due to increased transport, with dangerous repercussions for the future of our own planet.”


UK: The first shipment of bulk cementitious materials has arrived at Aggregate Industries’ new deep-sea cement terminal in Southampton.

Cementitious materials are conveyed pneumatically into the terminal’s new warehouse. The facility, developed under a €7.2m investment, is reportedly the UK’s fastest cement discharging terminal, unloading 1t of cement every five seconds. The project began in March 2024 and was completed with the arrival of the Nacc Indian Cement Carrier, marking the terminal’s operational launch.


Poland: Ukrainian cement exports to Poland account for less than 4% of Poland's production, indicating no need for a trade war, according to the Association of Cement Producers in Ukraine (Ukrcement). The association was responding to concerns raised by the Polish Cement Producers Association, which stated that imports of Ukrainian cement into Poland could triple from 0.5Mt in 2024 to 1.5Mt in 2025.

Ukrcement stated that the export of Ukrainian cement to Poland had historically been minimal, accounting for only 0.2-0.3% of Poland's total cement production in 2021, amounting to 53,400t. "Before the full-scale invasion, the export of cement from Ukraine to Poland was symbolic in nature, dictated by the logistics of consumer choice in the border areas of Ukraine-Poland," the association said.

However, since the start of the full-scale war, exports to Poland have significantly increased, partly due to a significant reduction in domestic cement consumption in Ukraine, from 10.5Mt in 2021 to 6.1Mt in 2023.

"If we compare the export of cement from Ukraine to Poland during the war with the total production volumes in Poland, we get a figure that does not exceed 4%. Is this indicator such a decisive factor for cement producers in Poland?" Ukrcement asked.


Egypt: In a move to reinforce its commitment to environmental sustainability and the transition to renewable energy, Misr Cement Group has signed a groundbreaking partnership with Solarize Egypt to develop a 40MW photovoltaic solar power project, based on an Independent Power Producer (IPP) model.

The project, one of the largest initiatives in Egypt’s industrial sector, will involve a total investment of US$29m. The two solar plants will generate 48 million kWh per year for each of the company’s plants in Minya and Qena governorates. This will reduce dependence on traditional energy sources, decrease the company’s CO2 emissions, and enhance the group’s operational sustainability.

This collaboration highlights the mutual commitment of both parties to support Egypt’s Vision 2030 by adopting clean energy solutions and reducing the environmental impact of heavy industries, in line with the national goal to increase reliance on renewable energy sources and achieve sustainable development.


US: Eagle Materials Inc, has announced it has entered into a definitive agreement to acquire Bullskin Stone & Lime, an aggregates business located in Western Pennsylvania. The business serves the Pittsburgh and broader Western Pennsylvania markets. The purchase price is US$152.5m, subject to customary post-closing adjustments. The transaction is expected to close by mid-February 2025, subject to the satisfaction of customary closing conditions.

Commenting on the acquisition, Michael Haack, President and CEO, said “The acquisition of Bullskin Stone & Lime further advances Eagle’s long-term growth strategy by adding a pure-play aggregates business that complements and extends our network of aggregates quarries and cement plants and terminals in the region.”


France: Lafarge France, part of Holcim, will deploy the technology of the Swiss start-up Neustark on its Gennevilliers site. This means that around 1000t/yr of CO2 could be sequestered into recycled concrete.

Neustark’s principle consists of injecting the liquefied CO2 into recycled gravel. The gas then reacts with the calcium present and forms calcium carbonate crystals. It is thus transformed and can be stored indefinitely. Neustark has already deployed its technology at 22 sites in Europe, mainly in Switzerland and Germany.

The Gennevilliers plant already receives demolition concrete and transforms it into recycled aggregates used in ready-mix concrete gravel and road sub-bases. The site, which produces 80,000t/yr of recycled materials, will be able to transform around 1000t/yr of CO2, as Neustark's technology can store 10kg of CO2 per tonne of recycled demolished concrete.


India: Ambuja Cements, an Adani Group company, has commissioned and started power transmission from its 200MW solar power project at Khavda, Gujarat. The remaining 806MW capacity from the country-wide project is at various stages of commissioning. 156 MW of wind power from Khavda and a further 300MW solar power plant in Rajasthan are expected to be commissioned in phases by March 2025. The remaining 350MW of solar power is expected to be commissioned by June 2025.

Ajay Kapur, Adani Group CEO - Cement Business, said the company is committed to achieve net zero emission by 2050, adding "We aim to power 60% of our total energy consumption from green power sources by the 2028 fiscal year.”


Kazakhstan: Martin Engineering has announced fresh expansion in Central Asia with a new business unit in Kazakhstan. Based in the country’s largest city and commercial centre, Almaty, in southeastern Kazakhstan, the new venture will act as a regional hub, enabling the company to bring its full range of products and services to the fast-growing mining sector across Central Asia.

The new business will be led by General Manager Oleg Glukhov, who has worked with Martin Engineering for the past seven years. He says Martin is well placed to support Kazakhstan’s leading minerals processing firms to improve operational performance and safety.


Türkiye: Oyak Cement will invest US$4.59m to increase fuel supply capacity at its Adana plant. The producer will add 180,000t/yr of processing capacity to the existing 36,000t/yr refuse-derived fuel (RDF) production capacity, raising the total to 216,000t/yr. It will also establish a biomass facility with a capacity of 180,000t/yr. The RDF will be prepared at a disposal fuel facility for use in the cement plant.


South Korea: The cement industry in South Korea faces rising costs due to a rising won-to-dollar exchange rate following the attempted impeachment of the president, and transportation disruptions from a railroad strike. This is likely to lead to an increase in coal import costs, according to Chosun Biz news.

The ongoing strike by the National Railroad Workers Union has disrupted cement transportation, though stockpiles in metropolitan areas have mitigated immediate effects. However, prolonged strikes could force production halts.

Kim Seung-jun, researcher at capital market company Hana Securities, said “In the fourth quarter, cement production is expected to decrease by 14% compared to the same period in 2023.”


Niger: The Nigerien government has closed nine commercial establishments in Niamey for 15 days for failing to comply with new cement price caps set in October 2024, with any further infringements leading to a five-year administrative closure. The decision follows traders' continued sale of cement above the capped prices despite measures to lower the cost of living, according to the Journal du Niger newspaper.

Minister of Trade and Industry Asman Seydou said “We do not tolerate any breach of the law. Nigerien consumers have the right to benefit from the prices set by the government, and we will do everything in our power to ensure that they are respected.”

The Ministry of Commerce has introduced a reinforced control system, including a hotline for reporting violations. The government has also granted tax exemptions to cement importers and producers to support domestic production.


Zimbabwe: Villagers in Hurungwe District are protesting against a cement and power plant project by WHI-ZIM Construction Material Investments, alleging illegal land seizures, lack of compensation and environmental risks. WHI-ZIM, a joint venture between Lebanmon Investments and West International Holding, has pledged US$1bn for the project in Mashonaland West, promising 5000 jobs and local infrastructure upgrades. However, more than 80 families face displacement without clear relocation or compensation plans, according to Zim Live news. Residents accuse the company of forcibly depositing materials on communal land without legal permits. Chief Chanetsa of Hurungwe endorsed the project on 135 hectares, citing community benefits, including schools, clinics, boreholes and a 45km road.

He said “If there is any field affected within these 135 hectares, we have agreed with the company that it shall fully compensate the affected area.”

Environmentalists and villagers have warned of risks to Magunje Dam, the villagers’ water source located 1.4km from the plant. They allege irregularities in the Environmental Impact Assessment (EIA), which mandates compensation and relocation before work begins.

Residents claim WHI-ZIM ignored EIA conditions and began fencing communal land in July 2024.

A community activist said “The corruption here is blatant. People are being forced off their land while officials look the other way.”