Global Cement News

Spain: Cementos Molins recorded first-quarter consolidated sales of Euro274m in 2022, up by 23% year-on-year from first-quarter 2021 levels. The group's net profit for the period fell by 34% year-on-year to Euro22m. It attributed this to material, power and transport costs inflation. During the quarter, Cementos Molins acquired Hanson Hispania's Catalonian ready-mix concrete and aggregates operations. It says that its 0.8x debt-to-earnings before interest, taxation, depreciation and amortisation (EBITDA) ratio positions it well to continue with the execution of its Strategic Plan 2020-2023.

Chief executive officer (CEO) Julio Rodríguez said “The year 2022 has an uncertain and highly complex global environment, in which the war in Ukraine and its global effects are added to the previously existing problems of costs inflation and supply chain disruptions. Despite this complex environment, we expect to continue in 2022 the path of solid results achieved in previous years."

Uzbekistan: Orient Group has entered talks with foreign banks to obtain loans and raise funds. BNE IntelleNewshas reported that the company's earnings before interest, taxation, depreciation and amortisation (EBITDA) is 3x its debt.

Head of corporate finance Davron Ozgurer said “Now we are well diversified, but we plan to exit some of the businesses and sectors but we are also considering getting into some new businesses. The main change will be that now we are an operational company – we make and sell things – but the plan is to transform into more of a financial holding. But that will take time.” Regarding future fundraising, Ozgurer said “Nothing is decided yet. We are just looking at options, but we could issue a bond, or maybe take a syndicated loan. Eventually, an initial public offering (IPO) could be possible.”

India: Police in Mumbai, Maharashtra, have opened a case against a Gujarat-based cement producer on charges of cheating, forgery and criminal conspiracy. The Times of India newspaper has reported that the accused company borrowed US$27m in 2017 and early 2018, purportedly for the purchase of four clinker carrier ships and the construction of jetties at two sites in Gujarat. However, the producer had mortgaged all four ships, pledging over 20% of its shares. From the funds, it reportedly paid itself for the construction of the jetties, and used US$17.35 to repay outstanding bank loans.

Dominican Republic: Mexico-based Cemex has reopened the second production line at its integrated San Pedro Macoris plant. The decision will add 0.5Mt/yr to the plant’s production capacity bringing its total to 2.5Mt/yr. The decision has been made to support customers in the Caribbean market. Other recent investment in the country by Cemex include new packaging machines, palletisers, hydro combustion, new trucks and tanks.

Jesús González, the president of Cemex South, Central America and the Caribbean said “The reactivation of the production line is a clear example of our commitment to the sustainable development of the Dominican Republic. This investment contributes to the revitalisation of the national economy, promotes exports, reduces the need for imports and supports employment and a more sustainable environment in the country."

Denmark: FLSmidth has formed a partnership called ECoClay to develop and commercialise the technology needed to electrify the calcination of clay used in cement production. The partners include the Danish Technological Institute, US-based industrial heating specialist Rondo Energy, France-based Vicat, Colombia-based Cementos Argos and the Technical University of Denmark. The project is partly funded by the Energy Technology Development and Demonstration Program (EUDP) under the Danish Energy Agency.

The use of calcined clay in cement production allows cement producers to replace up to 30% of limestone-based clinker, resulting in up to 40% lower CO₂/t in cement produced. By electrifying the process, ideally powered by renewable sources, the ECoClay partnership expects to further reduce emissions by 10% at more uniform conditions that allow processing of a broader range of raw clays.

Based on the shared research and tests on high-temperature electric heat generation, storage solutions and renewable grid integration, the ECoClay partnership will build a pilot plant at FLSmidth’s research and development centre in Denmark. The consortium will seek to demonstrate how the ECoClay process is superior to the conventional combustion processes, has a smaller physical footprint on site and significantly lower emissions of air pollutants. According to the project plan, the ECoClay partners expect to be able to commence construction of the first full-scale electric clay calcination installation by the end of 2025.