Global Cement Newsletter

Issue: GCW696 / 12 February 2025

Headlines


US: Ed Sullivan has resigned as the Chief Economist and Senior Vice President at the Portland Cement Association (PCA) with effect from 1 March 2025.

Sullivan holds over 40 years’ experience in industrial economic analysis. He has been in post at the PCA since 2002 where he led a team of economists delivering market research. Prior positions include vice president roles at Chase Manhattan Bank Economics, Standard & Poor’s and Wharton Economics. He also spent a period working as a senior intelligence officer at the Central Intelligence Agency (CIA) and as an economist within the Office of Senator Edward Kennedy. He has taught economics at St. Joseph’s and Villanova Universities in Philadelphia, Fairfield University in Connecticut, as well as Columbia and Fordham Universities in New York City.


Alpacem said this week that it had completed its acquisition of the Fanna cement plant near Pordenone. The 0.66Mt/yr integrated plant and a number of ready-mixed concrete plants became part of the Austria-headquartered group at the start of February 2025. Alpacem now has three integrated plants, with units at Wietersdorf in Austria and Anhovo in Slovenia, in addition to Fanna.

The deal dates back to mid-2023 when Alpacem said it had signed an agreement with Buzzi. In return Buzzi was set to receive a 25% stake in Alpacem Zement Austria. Prior to this the two companies had a strategic partnership in Austria and Slovenia that dated back to 2014. At the time of the agreement Buzzi held a 25% share in each of two Alpacem subsidiaries: Salonit Anhovo in Slovenia; and W&P Cementi in Italy. The Fanna plant was originally owned by Cementizillo before it was bought by Buzzi in 2018.

Also this week, Federbeton warned that the high cost of gas would add €80m/yr to the cost of cement production. Nicola Zampella, General Manager of Federbeton and the cement association AITEC, noted that local energy costs would reduce the competitiveness of producers against imports from outside of the European Union (EU). This ties into comments Stefano Gallini, the president of Federbeton, made in December 2024 when he highlighted the growing share of imports from outside the EU.

Federbeton raised the issue in its annual report for 2023, showing that imports rose to a 19% production share in 2023. Italy produced 18.8Mt of and imported 3.6Mt of cement and clinker in 2023. This is its highest level of imports for at least a decade. Over the same period the country’s cement exports, as a share of production, have remained steady at around 10 - 11%. In 2023 Türkiye was the biggest source of imports (25%) followed by Greece (17%), Slovenia (17%), Tunisia (12%) and Algeria (10%).

Graph 1: Cement production, imports and exports in Italy, 2019 - 2023. Source: Federbeton. 

Graph 1: Cement production, imports and exports in Italy, 2019 - 2023. Source: Federbeton.

It is worth recalling that the cement sector in Italy used to be larger before it started consolidating in the late 2000s. Italcementi was acquired by Germany-based Heidelberg Materials. Operations by Sacci, Cementir and Cemenzillo were all bought out too. Local cement production reached a high of 47.9Mt in 2006 before it stabilised at around 20Mt/yr from 2015 onwards.

In its preliminary results for 2024, out this week too, Buzzi reported that the construction market In Italy probably shrank in 2024 due to a poor residential housing market. However, the cement company managed to keep its local net sales stable by raising prices and focusing on exports. Despite this, it noted a drop in cement and concrete sales volumes at the end of 2024. More data on the construction market in Italy may emerge when Heidelberg Materials releases its 2024 financial results at the end of February 2025.

The backdrop to this has been a rise in gas prices in Europe towards the end of 2024 as the EU ‘emergency’ price cap finished on 31 January 2025. Around the same time the EU is preparing to reveal information on its Clean Industry Deal towards the end of February 2025. Plus, the first active phase of EU Carbon Border Adjustment Mechanism (CBAM) is preparing to enter into force from the start of 2026. Each of these issues has implications for the cement sector in Italy as the location associations have been highlighting. One question will be whether the Clean Industry Deal can help producers cope with mounting energy prices. Another will be whether CBAM will change the proportion of imports for countries like Italy or will the sources of the imports simply change. Plenty to consider for the year ahead.


Mexico: Cemex has announced that its CEO, Fernando Gonzalez, will retire after 35 years with the company. The company’s board of directors has appointed Jaime Muguiro, current head of US operations, to succeed him. The changes will be effective on 1 April 2025.


Spain: Ciment Català, the Catalan Cement Manufacturers Association, has appointed Albert Avellaneda Bargués as its director. He previously worked as the head of the Best Available Techniques (BAT) section of the General Direction of Climate Change and Environmental Quality as part of the Government of Catalonia. He holds a bachelor's degree in biology from the University of Barcelona and a master’s degree in Environmental Engineering and Management from the Polytechnic University of Catalonia.


UK: Terex Conveying Systems has appointed Neil Robinson as its Business Line Director. He will oversee the management of mobile conveyors offered across all Terex brands, including ProStack and Marco. Robinson has worked for Terex for 18 years, most recently as Product Director for Powerscreen. Robinson originally started working for the company in 2006 as a Design Engineer.


Japan: Taiheiyo Cement recorded net sales of US$4.4bn, up by 3% year-on-year, from 1 April 2024 to December 2024. Sales were US$4.3bn in the corresponding period of 2023.

The company’s financial report stated “During the nine months ended 31 December 2024, the Japanese economy showed a moderate recovery trend, partly due to the effect of various government policies under an improving employment and income situation. However, the outlook remained uncertain due to factors such as the protracted situation in Ukraine and continued yen depreciation.”

It also stated that domestic cement demand was affected by multiple factors, such as a labour shortage, the adoption of a five-day week for the construction industry and a shortage of lightweight aggregates. It reported that demand decreased 6% year-on-year to 25.15Mt, of which imported cement increased 26% year-on-year to 10,000t. Total exports increased by 25% year-on-year to 6.24Mt. The group’s domestic cement sales volume decreased by 5% year-on-year to 9.52Mt, with exports increasing by 22% to 2.4Mt. Its cement businesses in US, Vietnam and the Philippines all also saw a decrease in sales volumes.


Italy: Cementir Holding recorded cement and clinker sales volumes growth of 0.5% year-on-year in 2024, to 10.7Mt. Revenue fell by 0.4% year-on-year to €1.69bn, while earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 1% year-on-year to €407m. Profit before tax fell by 2% to €285m. The producer targets an increase in revenue to €2bn and EBITDA to €465m by 2027.

Francesco Caltagirone, chair and CEO, said “2024 has been another satisfactory year for our group, which demonstrated remarkable resilience despite the complex geopolitical and macroeconomic backdrop. We are preparing to face the next three years with a strengthened industrial footprint, thanks to: the upgraded Kiln 4 in Belgium, which will enhance efficiency through increased alternative fuels usage; the second production line in Egypt, now fully operational and able to generate additional export revenue; and the opportunity to completely decarbonise our Aalborg plant by 2030 with a limited investment. We look forward to the challenges ahead with renewed confidence.”


France: Hoffmann Green has reported a revenue of €13.2m in 2024, doubling its revenue from 2023. The sale of cements contributed €2.8m, while entry fees from licensing agreements contributed €10.5m. The producer sold 16,269t of cement in 2024, despite the deterioration of the local market. It signed licensing agreements in the US, UK and Ireland, and expects to reach its earnings before interest, taxation, depreciation and amortisation (EBITDA) break-even point in 2024.

Co-founders of Hoffmann Green Cement Technologies, Julien Blanchard and David Hoffmann, said "Despite a stagnant national construction market, Hoffmann Green has achieved a historic 2024 financial year, doubling its revenue, reaching an estimated EBITDA break-even for the first time since the company was founded, and the signing of numerous partnerships, particularly as part of our international development."


Europe: Titan Cement has invested in AI solutions provider Optimitive, to reinforce the use of AI for the optimisation of its plants. The producer aims to continue to improve its productivity and efficiency through this investment. The investment follows Titan Cement's implementation of Optimitive's Optibat software at its plants in order to improve their operational performance, reduce energy consumption and curb CO₂ emissions.

Fernando de la Prida, CEO of Optimitive, said "For Optimitive, the investment by Titan, one of the main players in the cement market, demonstrates the strength of the company, the cutting-edge technology built inside our product and the high level of satisfaction of our customers."


US: Colombia-based Cementos Argos, Summit Materials’ largest shareholder, has sold its 31% stake in the company to Quikrete Holdings. The price of US$52.50 per share represents a rise by 38% compared to when Cementos Argos acquired the shares in 2023 through the combination of its US assets with Summit Materials. The sale, valued at US$11.5bn for 100% of the company’s shares, will reportedly enable Cementos Argos to pursue new cement, ready-mix concrete and aggregates opportunities in the US market. Supply agreements, including exports from Cartagena to the US, will continue. Through the deal, Quikrete will acquire 100% of Summit Materials’ shares, and the company will become a privately held subsidiary of Quikrete.


US: Titan Cement subsidiary Titan America has closed its initial public offering (IPO) of 24 million common shares at US$16 per share. The producer sold 9 million new shares, while Titan Cement sold 15 million existing shares.

Titan America received US$137m in net proceeds, to be used for capital expenditure and investments in technology as well as pursuing acquisitions. Titan Cement received US$228m. Titan Cement retains an 87% stake in Titan America with 160 million shares.


Argentina: Cement despatches rose by 9% year-on-year to 0.84Mt in January 2025, the Association of Portland Cement Manufacturers (AFCP) has reported. This marks the first increase following 21 consecutive months of decline. The country recorded its lowest volume of cement despatches in 15 years in 2024 due to government capital expenditure cuts. In December 2024, despatches fell by 5% year-on-year, following 12 months of declines exceeding 40%.


Myanmar: The government will allow coal imports for cement plants from February 2025 in order to increase production, according to local news reports. Cement plants which need coal can apply for an import licence. The country's 16 private and three state-run cement plants produce less than 8Mt/yr, while national consumption exceeds 10Mt/yr, requiring cement plants to operate at full capacity.


Italy: Buzzi has released its preliminary financial results for the 2024 financial year. It recorded cement sales of 26.3Mt in 2024, in line with 2023’s figures. Consolidated net sales also remained stable at €4.31bn. Recurring earnings by interest, taxation, depreciation and amortisation (EBITDA) is expected to rise to €1.27bn.

The company reports that growth remained steady in the US and China, while in Europe, the economy continued to weaken, hampered by ‘sluggish’ domestic consumption and demand. It stated that it remains ‘highly exposed’ to risks associated with escalating geopolitical tensions and potential tightening of US trade policies.

In its home country of Italy, economic activity was reported to have remained weak in the fourth quarter of 2024 after stagnating during the summer months, due to the subdued performance of the manufacturing sector and a slowdown in services.

As for the company’s outlook, it stated ‘Despite an improving trend in the latter part of the year, 2024 showed some weakness in demand across most of the countries where we operate, except for Poland and the Czech Republic, although offset by a favourable development of selling prices. The low production levels negatively impacted operating leverage in Central Europe. The exit from Ukraine and the consolidation of Brazil led to a net positive impact on consolidated results. Therefore, based on preliminary available data, we anticipate that operating results will remain broadly in line with the previous year.”


Türkiye: Cement producer Karcimsa Cement said that it will invest US$30m in a 1Mt/yr clinker and granulated slag grinding facility in Kayseri.

The plant will produce ‘green’ cement with low carbon emissions, according to chair of Karcimsa, Soner Ozbey.

Back in March 2024, Türkiye imposed restrictions on cement to expand the use of low-carbon cement in public procurement contracts from 2025.

"The clinker/cement ratio in the cement to be used in public investments will be a maximum of 0.80 as of 2025 and this ratio will decrease to 0.75 by 2030," Karcimsa said.

The company will reportedly procure slag from Kardemir to be used in production.

Karcimsa is a joint venture between Turkish steel firm Kardemir and concrete producer Beycim Beton Sanayi.


Italy: Alpacem Group has completed the acquisition of the Fanna cement plant in Pordenone and several concrete plants in the region, following regulatory approval on 1 February 2025. Over 80 employees will join the company’s workforce and Fanna will become the group’s third fully-integrated plant alongside its plants in Wietersdorf, Austria and Anhovo, Slovenia.

The Fanna plant has a clinker capacity of 0.66Mt/yr and sources raw materials from three nearby quarries.

Bernhard Auer, Alpacem’s managing director, said “The integration of the Fanna cement plant and the concrete mixing plants strengthens our presence in Italy and in the entire Alpe-Adria region, and enables us to expand our business activities in the market and grow as the Alpacem Group.”


Canada: Lithium Universe has signed a memorandum of understanding with Lafarge Canada for the supply of aluminosilicate product (ACSR) from its Bécancour lithium refinery for use in Lafarge Canada’s cement.

The parties will work towards a definitive supply agreement, which would see Lafarge sourcing all ACSR from the facility in a bid to reduce waste and support a circular economy.

Lithium Universe chair Iggy Tan said “This is great news for Lithium Universe as we partner with Lafarge Canada to enhance the North American battery materials supply chain and promote sustainable innovation in Canada’s cement industry. This collaboration will not only advance our focus on building Bécancour Lithium Refinery’s secondary product supply chain but also strengthen local supply chains, foster a more circular economy in Québec, and contribute to greener construction materials.”


Mexico: Cemex has embarked upon a cost cutting exercise following a drop of sales volumes in 2024. Sales volumes of cement, ready-mixed concrete (RMX) and aggregates all fell in 2024. This in turn reduced sales revenue, despite higher prices and earnings. The group’s sales volumes of cement decreased by 2% year-on-year to 44.3Mt in 2024 from 45.2Mt in 2023. RMX sales volumes dropped by 6% to 44Mm3 from 46.8Mm3. Sales revenue and operating earnings before interest, taxation, depreciation and amortisation (EBITDA) dipped by 2% to US$16.2Bn and by 2% to US$3.08Bn respectively.

Sales and earnings rose on a like-for-like basis in Mexico and South, Central America and the Caribbean but fell elsewhere. In Mexico the group noted a strong first half of 2024 followed by a poor second half. In the US it reported a number of ‘extreme’ weather events. In Europe, Middle East, and Africa it said a recovery trend in earnings was observed in the second half of the year.

In response the company has launched ‘Project Cutting Edge,’ a three-year, US$350m saving programme intended to streamline operations, improve efficiency and further use of digital technology throughout the business. The initiative is anticipated to deliver US$150m in incremental EBITDA in 2025 and expected to reach a run-rate of US$350m by 2027.

Fernando A González, CEO of Cemex, said “With the recovery of our investment grade ratings, improved free cash flow generation and the execution of US$2.2bn in asset divestments, we can now pursue more aggressively our capital allocation priorities of growth through small to medium-sized acquisitions, primarily in the US, additional deleveraging, and building further on our shareholder return programs.”


US: Titan Group expects to generate US$365m from the initial public offering (IPO) of its subsidiary Titan America. The latter company has priced its IPO of 24 million common shares at US$16/share. The IPO is expected to close on 10 February 2025, subject to customary closing conditions.

Titan America expects to receive net proceeds of approximately US$137m from the IPO. Some of these funds will be used to support investments in technologies, the company’s growth strategy and acquisitions. Parent company Titan Cement International expects to generate US$228m. Following completion, Titan Cement will retain a 87% share of Titan America.


Japan: Sumitomo Corporation has signed a memorandum of understanding (MOU) with US-based Fortera to conduct a feasibility study to build a low-carbon cement plant. The project will be run with subsidiary Sumitomo Osaka Cement. The aim is to then build a pilot plant in Japan by the 2026 financial year. Sumitomo Corporation is also considering expanding the business model developed in Japan to other parts of Asia.


Tajikistan: The Ministry of Industry and New Technologies has blamed falling cement production in Tajikistan on growth in production in neighbouring Uzbekistan. It also noted rising output in Afghanistan, according to Asia-Plus. Local production fell by 2% year-on-year to 4.35Mt in 2024 from 4.46Mt in 2023. Ministry data shows that exports of cement from Tajikistan dropped by 30% to 0.29Mt from 0.66Mt. In November 2024 Uzbekistan sharply increased customs clearance fees on Tajik cement to US$300/t from US$35/t.


Italy: Federbeton, the Italian cement association, has expressed alarm that the high price of gas is adding €80m/yr to the cost of cement production. Nicola Zampella, the general manager of Federbeton, called for an ‘urgent’ change to the national energy system to make it more equitable, sustainable and competitive, according to Adnkronos. He recommended energy diversification, further encouraging the use of alternative fuels, simplifying regulations, making investing and supporting sustainable technologies easier and adding incentives to use carbon capture and storage.


India: JK Lakshmi Cement’s net sales fell by 15% year-on-year to US$453m in the nine months to 31 December 2024 from US$534m in the same period in 2023. Its sales volumes of cement dropped by 9% to 6.44Mt from 7.06Mt. Its profit after tax decreased to US$25.6m from US$32.2m.


US: Summit Materials says that it has obtained the stockholder approval required for its proposed acquisition by Quikrete. The transaction is expected to close within the first quarter of 2025, subject to any remaining customary conditions. Once complete, Summit Materials will become a privately-held subsidiary of Quikrete.

Quikrete entered into a definitive agreement to buy Summit Materials for a total enterprise value of US$11.5bn in November 2024. The deal will add Summit Materials’ aggregates, cement and ready-mixed concrete business to Quikrete’s concrete and cement-based products business to create a vertically integrated business in North America.


India: UltraTech Cement has commissioned an additional 0.6Mt/yr grinding capacity at its integrated Sonar Bangla plant in West Bengal. It said the upgrade would help it meet cement demand in East India and enable it to increase its blended cement ratio. The company says that its domestic cement production capacity is now 166Mt/yr with an additional 5Mt/yr overseas.


Japan: Mitsubishi UBE Cement Corporation (MUCC) has developed a carbon-negative artificial sand product called ‘GX-e Beads.’ It is made from by-products containing calcium and uses a proprietary accelerated carbonation technology developed by MUCC to absorb CO2 at 80 - 250kg/t from flue gas and other sources. A further granulation and solidification stage is then used to manufacture the final artificial fine aggregates, making it net-carbon negative. The artificial sand can be produced via a dry process at ambient temperature conditions. It requires no special reaction equipment.

The product can be used as a fine aggregate to make normal-strength concrete. MUCC says “…when used in conjunction with ordinary Portland cement (OPC) or blended cement, fresh properties and strength development equivalent to or better than that of normal concrete can be obtained. Therefore, it can be widely applied to ready-mix concrete and secondary concrete products.”


Pakistan: Thatta Cement has signed a memorandum of understanding with China-based Qing Gong Construction Group to build a 5000t/day production line. They concluded the deal during a state visit by President Asif Ali Zardari to China, according to the Radio Pakistan. Other agreements were also signed in sectors including renewable energy.


UK: The Materials Processing Institute (MPI) is preparing to open its Sustainable Cement and Concrete Centre (SCCC) later in February 2025. The centre will focus on research and material development, including novel formulations for low-carbon cement and concrete and the use of electric arc furnace (EAF) slags in aggregates and clinker production. It will also provide consultancy services to further support clients to accelerate innovation, offering expertise and project management from concept through to pilot stage production.

The SCCC is a part of the EconoMISER programme, led by the Foundation Industries Sustainability Consortium (FISC), which aims to accelerate the decarbonisation of the UK’s so-called foundation industries. These include the cement, metal, glass, ceramic, paper, polymer and chemical sectors. The MPI is based in Middlesborough.


UK: Material Evolution has announced a partnership with ARC Marine for the use of its low-carbon cement in ARC Marine’s products. The companies intend to use Material Evolution’s MevoCem product across ARC Marine’s aquaculture, coastal defence and offshore energy portfolio. ARC Marine have accepted delivery of the first shipment of product to undergo testing in a marine environment. The partners will develop and test bespoke products tailored for subtidal and intertidal construction with the aim of scaling up production to include a wide-scale collaboration throughout in 2025 and beyond.

ARC Marine builds products that support artificial reefs and protect infrastructure like submerged cables and breakwaters. It has deployed over 2000 reef cubes into seven different countries. It says its reef cubes have provided a habitat for over 190 unique species.