Global Cement News

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.

Norway: The government has proposed continuing funding for Norcem’s CO₂ capture and storage project at its Brevik cement plant. The announcement follows an assessment by the Ministry of Petroleum and Energy of local carbon capture, transport and storage (CCS) projects. The government has proposed to fund FEED studies (Front End Engineering and Design studies) with around Euro8m in 2018. The total funding for the demonstration project in 2018 amounts to Euro29m, including funds transferred from 2017. The proposed funds for 2018 will cover FEED studies of CO₂ transport, storage and up to two capture facilities.

“Of the three CO₂ capture projects evaluated, Norcem has the best conditions for a successful implementation. Norcem has demonstrated project execution abilities and relatively low cost per tonne CO₂ captured compared to the other two capture projects. The cement industry is also a significant contributor to global greenhouse gas emissions,” said the government in a statement Norcem, HeidelbergCement local subsidiary, which sbeat other projects by Yara and Fortum Oslo Varme to the funding.

Votorantim shone a glimmer of hope for the Brazilian cement industry with the release of its first quarter financial results this week. Increased sales volumes in Brazil, Turkey, India and Latin America led to an 11% rise in revenue to US$682m in the period. Admittedly back home in Brazil, most of this came from concrete and mortar sales, but after the slump Brazil’s had they’ll take whatever they can get. This compares to a 14% drop in sales revenue in the same period in 2017 due to falling cement consumption.

Graph 1: Accumulated 12 months local cement sales in Brazil. Source: SNIC.

SNIC, Brazil's national cement industry association, preliminary figures for April 2018 show a similar trend. Cement sales for April 2018 rose by 8.9% year-on-year to 4.35Mt from 4Mt. Sales for the first four months of the year dipped slightly by 0.2% to 16.9Mt although this is an improvement on the first quarter figures showing the benefit a strong April has had. Improvements are driven by growth in the central and southern parts of the country. SNIC’s graph of accumulated sales (Graph 1) definitely shows a slowing trend of decreasing cement sales with April 2018 being the only the second month in over two years where sales have risen.

Paulo Camillo Penna, the president of SNIC, even went as far as to speculate that the three months from April to June 2018 might see the first sustained period of improvement since 2015 and that sales could even grow by 1% for the year as a whole. This is a far cry from Penna’s description of his industry at the start of 2017 as, “One of the worst moments in its history.”

Votorantim reported that some regions of Brazil were starting to show a positive trend in the second half of 2017. Unfortunately it wasn’t enough to stop the cement producer’s overall sales falling for the year. LafargeHolcim didn’t release specific figures for its Brazilian operations in 2017 but it did say that its cost savings programme had, ‘provided for material improvement versus prior year both in recurring earnings before interest, taxation, depreciation and amortisation (EBITDA) and cash flow.’ It reckoned that despite the market contracting, it had managed to increase its market share. Meanwhile, on the supplier side RHI Magnesita said in a first quarter trading update that its cement and lime business was flat due to continuing low capacity utilisation rates in China and Brazil.

If this truly is the end of the Brazilian cement market slump then it seems surprising that there haven’t been more mergers or acquisitions. Mineração Belocal, a subsidiary of Belgium’s Lhoist, said this week that it had purchased L-Imerys, a lime producer that operates a plant at Doresópolis in Minas Gerais. Local refractory producer Magnesita merged with RHI in mid-2017.

The big deal that hasn’t happened is the sale of InterCement, the country’s second largest cement producer. Owner Camargo Corrêa was reportedly selling minority stakes in the company in 2015. Then in early 2017 local press said that it was aiming for a price of US$6.5bn for the whole company with Mexico’s Cemex as a potential bidder. Since then nothing has happened publicly although the initial public offering of InterCement’s Argentine subsidiary Loma Negra in November 2017 for US$954m may have bought Camargo Corrêa the time it needed to wait for the market to improve. Rumours of a public listing of InterCement’s European and African operations have followed.

In its World Economic Outlook in April 2018 the IMF forecast a 2.8% rise in gross domestic product (GDP) in Brazil in 2018. If SNIC’s forecast for 2018 is correct then Camargo Corrêa may have survived the worst of the slump to live to trade another day. The price for InterCement at this point can only rise, as should the prospects of the Brazilian industry.

US: LafargeHolcim has appointed of Jamie M Gentoso as the chief executive officer (CEO) of its US cement operations. She succeeds John Stull, who was recently appointed as the CEO of Holcim Philippines.

Gentoso joins LafargeHolcim from Construction Specialties, an architectural building products manufacturer, where she held the position of vice president of Sales and Marketing and, prior to this, she was senior vice president of Concrete at Sika US. She began her career at Holcim as a technical service engineer and Architectural and Engineering market manager, with a focus on specialty cements, Ordinary Portland Cement, slag cement and fly ash.

Gentoso received her Masters of Business Administration from the University of Michigan and holds a Bachelor of Science in Civil Engineering, also from the University of Michigan. She has sat on the board of directors for several industry organisations and intends to continue to her involvement.

India: Shree Digvijay Cement has appointed Vikas Kumar as its chief financial officer with effect from 1 May 2018. He succeeds MV Ramaswamy who has resigned from the company.