Global Cement News

Vietnam: Cement producers have raised their prices due to mounting coal costs. In October 2021 Bim Son Cement increased the cost of its products by 6%, according to the Viet Nam News newspaper. Other manufacturers have done likewise. Data from the Vietnam Association of Construction Contractors shows that local coal prices have grown by 7 – 10% recently. Coal represents around 40 – 45% of the production cost of cement. Prices of diesel and additives have also risen.

Iceland: Sementsverksmidjan has decided to sell cement from competitor Aalborg Portland Islandi due to a cement shortage in the country. It said it wants to help the local supply situation after seeking guidance from the local competition authority. Rival company Steinsteypan has made a formal complaint to the regulator. Sementsverksmidjan, a cement importing subsidiary of HeildebergCement, says that it also sold cement supplied by competitors earlier in the year.

Japan: Taiheiyo Cement has revealed that a weakness in an evaporator tube in a fluidised bed heat exchanger in a captive power plant was the cause of an explosion that took place at its Hidaka cement plant in April 2021. It said that inspections had been carried out annually but that it was difficult to detect defects visually. The company has apologised for the incident. It says it will make changes including a review of inspection standards, including more personnel in the process, improved information sharing and starting regular training on the issue. These changes will be implemented across all of the company’s plants.

The 50,000kW circulating fluidised bed (CFB) boiler was supplied by Mitsubishi Heavy Industries and commissioned in 1996. It ran on coal, wood chips and refuse-derived fuel. No blame for the explosion has been attributed to the manufacturer.

The explosion took place in the evening of 27 April 2021. No major injuries were sustained. However, 40 vehicles parked outside a Pachinko gambling parlour near the plant were damaged. Scattered debris was noted nearby and ash was reported up to 5km from the cement plant.

Switzerland: Holcim says it wants to reach at least 40% of sustainable financing by 2024. It intends to put climate action, water preservation and safety at the heart of its strategy to do this. The company has linked this commitment with the completion of two new sustainability-linked financing transactions worth above Euro2.8bn. It has also joined the United Nations Global Compact (UNGC) Chief Financial Officers (CFO) Taskforce alongside 60 companies representing a combined US$1.7Tn in market capitalisation. The UNGC CFO Taskforce aligns members’ finance strategies with the United Nations Sustainable Development Goals (SDG).

Holcim’s CFO Géraldine Picaud said, “Sustainability is at the core of what we do. That's why we set ourselves some of the most ambitious goals in our industry. Walking the talk, we are putting climate, water and safety at the heart of our financing strategy. To make a bigger impact, I am delighted to be a member of the UNGC CFO Taskforce to move this agenda forward with my peers.”

In August 2021, Holcim refinanced a Euro3bn syndicated credit line linking it to climate and safety in line with the UN SDGs. The cost of the credit facility will depend on the company’s achievement of its annual targets in these areas. In September 2021, Holcim placed a new 10-year US$100m sustainability-linked bond, based on its 2030 CO₂ reduction target. This issue represents its first private placement of a US Dollar medium-term note linked to climate action. The investor will be entitled to a higher coupon should the company not meet its climate objective. These actions follow the company’s Euro850m sustainability-linked bond issued in November 2020.

India: Finland-based Betolar has launched a partnership with sustainable housing company Tara. The arrangement is intended to enhance India’s ‘green’ construction sector by encouraging the use Betolar’s pre-cast concrete products. These use waste inputs to create a low-carbon alternative to Ordinary Portland Cement. Betolar has been working with Tara since around 2019 to bring its commercial products to the local market.

Betolar's Head of Asia said, "There is a tremendous appetite for sustainable construction materials in India which we are tapped into through our work with Tara and its mission to develop alternative and sustainable models for rural development, democratizing construction from the bottom up."