Global Cement News

Germany: Holcim is investing a three-figure million sum into its cement plant in Lägerdorf, Steinburg, according to the Segeberger Zeitung. The plant will employ a second-generation oxyfuel kiln line to increase the concentration of CO₂ in the flue gas during clinker production. The project aims to capture 1Mt/yr of CO₂. The new kiln line is expected to be operational by 2029.

State Secretary for Energy, Joschka Knuth, said "The decarbonisation of Holcim is a very important signal for the entire industrial location of Germany."

Canada: Heidelberg Materials North America has announced a new front end engineering design (FEED) contract for its Edmonton carbon capture, utilisation, and storage (CCUS) project. This involves MHI Low Carbon Solutions Canada (MHI-LCSC) and Kiewit Energy Group who will collaborate on the carbon capture technology at the plant. The FEED study will leverage MHI's Advanced KM CDR Process, which uses the KS-21 solvent. The Edmonton plant aims to capture 1Mt/yr of CO₂.

Vice President at Kiewit, Rob Medley, said "Heidelberg Materials is taking a major step towards decarbonising hard to abate industries by deploying innovative and effective carbon capture technology."

Australia: Boral has endorsed Seven Group Holdings' (SGH) increased takeover offer after the bidder enhanced its proposal. According to Business News Western Australia, Boral is now recommending its shareholders accept SGH's offer, previously rejected in March 2024. The offer has risen from an initial US$0.98/share to a maximum of US$1.11/share. An on-market buyback is also an option at up to US$4.19/share, with total shareholder value estimated between US$4.02 and US$4.17.

Boral's independent corporate advisory company, Grant Samuel, now finds the offer ‘reasonable’. SGH has increased its stake in Boral to 78.8% and proposes further governance adjustments by adding two more executives to Boral's board.

Managing director of SGH, Ryan Stokes, said "We are pleased to offer Boral shareholders the maximum consideration under our offer. Both new and existing SGH shareholders also stand to benefit from the US$0.20/share fully franked dividend that SGH will pay following completion of the offer." The offer period is extended to 15 May 2024.

Nigeria: The government has threatened to reopen borders for mass cement importation if local producers do not reduce prices. The Minister of Housing and Urban Development, Ahmed Dangiwa, said that the country had recently seen a ‘recurring and concerning increase in the price of cement’, according to the People’s Daily newspaper. Recent price hikes have threatened an agreement made in February 2024 to stabilise the price of cement. The government had previously halted cement imports to boost local production and affordability, yet producers cite high fuel and equipment costs as factors driving up prices.

The Cement Manufacturing Association of Nigeria has been criticised for its inaction in price regulation. Dangiwa said “The association is expected to monitor price control, otherwise it has no need to exist.”

China: Shares of China Tianrui Group Cement plummeted by 99% in just 15 minutes before Hong Kong’s stock market closed on 9 April 2024, according to Reuters. This led to a decrease in the market value of the company, to US$17m from US$1.86bn. The cause of the sudden drop remains unknown and trading in Tianrui shares is suspended pending an announcement on ‘inside information’.

In the 2023 financial year, the company recorded a net loss of US$45.8m, compared to its US$62m net profit in 2022. This downturn is partly attributed to the struggles in China's property sector.