Global Cement News

Canada: Lafarge Canada has selected ABB to update the process control system at its Bath cement plant in Kingston, Ontario. ABB will supply, commission and support its ABB Ability System 800xA distributed control system, which aims to enhance plant process visibility and control. The Bath plant produces over 1Mt/yr of OneCem low-carbon cement and is the site of a pilot carbon capture project.

Andrew Stewart, vice president of cement at Lafarge Canada, said "We are dedicated to advancing sustainable construction, not least through rigorous decarbonisation efforts. From working with ABB to upgrade our process control system, to integrating low-carbon fuels and upgrading to energy-efficient kiln technology, we are significantly leading the way in sustainable construction by reducing our carbon emissions per tonne of cement produced. For example, our pilot carbon capture initiative with Hyperion has also been critical, as it leverages innovative processes to capture and sequester CO₂, bringing us closer to our goal of net-zero emissions."

India: Global Cement & Concrete Association (GCCA) India has entered talks with UK-based Xynteo and the Build Ahead coalition to scale up decarbonisation in India’s construction sector. The partners have signed a memorandum of understanding to promote low-carbon cement and concrete usage. This two-year collaboration will develop emission thresholds for cement and concrete as a basis for future policy on production and use of low-carbon materials. The initiative will also include joint governmental engagement and the sharing of research for low-carbon building materials.

Deepak Khetrapal, GCCA India co-chair and Orient Cement managing director, said "The reduction of clinker factor and the increasing use of supplementary cementitious materials in cement manufacturing is an important decarbonisation lever for the industry. Developing an India-specific definition for ‘low-carbon’ or ‘green’ cement and concrete is the need of the hour, and it is crucial for the development of a net zero CO₂ roadmap for the Indian cement and concrete industry."

Zimbabwe: Representatives from the Magunje community appeared before the Parliamentary Portfolio Committee on Lands, Agriculture Mechanisation and Irrigation, voicing concerns over Labenmon Investments Pvt’s noncompliance with legal procedures in establishing a cement production plant near Kemureza Dam and Magunje Growth Point. Led by Zimbabwe National Organisation of Associations of Residents Trust (ZNOART), the community alleged that their views were ignored in the environmental impact assessment process for the plant, which will occupy 135 hectares. The Parliament Committee plans to visit the site soon to gather information from residents. The project is expected to employ over 1500 people and boost the local economy.

Thomas Chidzomba, representative for Hong Kong-based Labenmon Investments Pvt, said "Our project is clear and will follow all the country's laws. In addition, the plant is going to use state-of-the-art technology which ‘minimises or eradicates’ air pollution. We will also not pollute the Kemureza Dam as we will not draw water from it for our operations."

India: Kanodia Cement plans to launch an initial public offering to raise approximately US$95m, with a draft red herring prospectus expected to be filed with market regulator SEBI by the end of December 2024. The company currently has a production capacity of 5Mt/yr, with plants in Uttar Pradesh and Bihar. CEO Gautam Kanodia said that the company has plans to expand its cement capacity to 10Mt/yr.

Another potentially gargantuan deal in the US building materials sector emerged this week in the shape of Quikrete bidding to buy Summit Materials. The latter company announced that a non-binding acquisition proposal had been received and the business press revealed who it was from. Further reporting suggested that Summit Materials has a market value of around US$7bn.

Quikrete is well known in North America for its packaged concrete products that are often sold in distinctive yellow bags. Its brands include Quikrete cement and concrete, Pavestone and Keystone paver and block products and Rinker concrete pipe and storm-water products amongst others. The company says it operates over 90 manufacturing sites in the US, Canada, Puerto Rico and South America, although it does not appear to own any cement plants. Notably, it is privately owned.

The deal is likely to revolve around the ready-mixed concrete assets that Summit Materials runs. However, readers may recall that Summit Materials and Cementos Argos completed the merger of their operations in the US at the start of 2024. That deal was set to make Colombia-based Cementos Argos the largest shareholder in Summit Materials. The companies also said that it was going to set them up with the fourth-largest cement-making portfolio in the US, with a capacity of 11.6Mt/yr, and place them among the largest aggregates and concrete producers. So it will be interesting, to say the least, to see how Cementos Argos reacts to a change in plans so soon after the merger has finished. Assuming the deal is credible, how it reacts may suggest whether the company is following the money in the short term or sticking to a longer plan.

Yet another large deal in the building materials sector in North America reinforces the diverging fortunes between the markets there and in Europe. However, this dynamic can create its own problems. Holcim’s grand spin-off of its business in North America, for example, appeared to be downgraded in the group’s third quarter results to a ‘mere’ dual listing. Press reports suggest that its Swiss and other European shareholders are facing restrictions from holding shares outside of their home markets.

Despite the current frenzy for market share and margin in the US by multinational building materials companies though, the cement market hasn’t had the best year so far in 2024. US cement shipments actually fell year-on-year in 2023 and continued to do so during the first seven months of 2024, according to United States Geological Survey (USGS) data. The Portland Cement Association (PCA)’s Chief Economist Ed Sullivan blamed this mainly on high interest rates. He then noted in an autumn forecast that a cut in rates was likely to benefit the construction market from mid-2025 onwards. Anne Noonan, the CEO of Summit Materials, also noted the negative effect of interest rates on construction projects at a recent Colorado Business Roundtable event.

None of this has discouraged the hunger of companies to cash in on the US market. Even the uncertainty of the impending US presidential election taking place on 5 November 2024 has failed to quell this desire. In brief, either administration might take different approaches to trade protectionism, infrastructure investment plans, green investment, permitting, regulations and so on. Yet the market fundamentals are strong for building materials. Koch helped MITER Brands buy window and door manufacturer PGT Innovations for US$3.1bn in January 2024 and Owens Corning acquired another door producer, Masonite, for US$3.9bn in May 2024. Quikrete smells potential and it may follow.