Global Cement News

Thailand: Germany-based Schenck Process Group has reached an agreement to acquire Solids Handling and Process Engineering (SHAPE), a supplier of powder handling and powder processing products based in Bangkok. The purchase is intended to strengthen Schenck Process Group’s presence in equipment and food processing markets in Asia Pacific.

Switzerland: Holcim’s sales rose by 17.4% year-on-year to Euro11.7bn in the first half of 2021 from Euro9.92bn in the same period in 2020. Its recurring earnings interest before taxation (EBIT) increased by 66% to Euro1.84bn from Euro1.12bn. Cement and concrete sales volumes grew by 13.5% to 99Mt and 15.6% to 22.1Mm³ respectively. Sales of all business segments grew in all regions on a like-for-like basis with the exception of aggregate sales in North America, where they fell slightly.

Jan Jenisch, the chief executive officer of Holcim, said, “In the first half of 2021 we set new records in recurring EBIT, free cash flow and earnings per share.”The group’s acquisition of Firestone Building Products officially closed at the end of March 2021 and the company has also made seven ‘bolt-on’ acquisitions so far in 2021, mainly in aggregate and ready-mixed concrete markets in Europe and North America. The group also agreed to divest operations in Zambia, Malawi and the Indian Ocean in the reporting period and these are all expected to complete by the end of 2021.

Mexico: Cemex sales grew by 17% year-on-year to US$7.27bn in the first half of 2021 from US$5.98bn in the same period in 2020. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 38% to US$1.50bn from US$1.09bn. Cement and concrete sales volumes increased by 16% to 34Mt and 9% to 24.1Mm³. Growth was reported in all regions, often due to recovery from coronavirus-related lockdowns in the first half of 2020.

“Quarterly highlights include the achievement of our long-time leverage goal, a 39% increase in quarterly EBITDA, and our announcement of industry leading Climate Action targets,” said Fernando A González, the chief executive officer of Cemex. “Our growth in the quarter, which exceeded pre-pandemic levels, gives us confidence that this performance is sustainable in the second half of the year.”

Mexico: GCC plans to spend US$450 - 500m on upgrade projects to its cement business over the next three years to 2024. It is considering building a new 1.1Mt/yr clinker production line at an unnamed existing plant but the board of directors is yet to make a final decision. Other projects include strengthening the group’s cement distribution network in Minneapolis, Minnesota and Utah in the US. This would also include building two new cement terminals. A debottlenecking project is being planned at the Samalayuca plant in Chihuahua state. This would increase the plant’s production capacity by 0.2Mt/yr and is scheduled for completion by the end of 2022. A final project is also scheduled for the Chihuahua plant to improve operational efficiency, and enhance social and environmental responsibility.

In earnings conference call notes for the second quarter of 2021 the cement producer reported for the US: “Every kiln at GCC is up and running; for practical purposes, our system is sold out.” It also noted bottlenecks in its grinding, storage and shipping installed capacity.

India: Shree Cement is ready to start building a 3Mt/yr grinding plant at Purulia in Bengal. The project has an investment of around US$80m, according to the Times of India newspaper. The cement producer has already purchased the land for the unit and intends to start work on building it from August 2021. It will be the company’s first production plant in the state.