Mexico: Cemex says that it will invest US$925m in 2021 – 2023 in production capacity expansions and upgrades, as well as in other projects to improve financial margins. Chief executive officer Fernando González said at its Cemex Day 2021 business update that the group is planning a 10Mt/yr cement capacity expansion consisting of an extra 7.5Mt/yr in the Americas, 1.5Mt/yr in the Philippines and 1.0Mt/yr in Europe. It expects a total increase in 2023 full-year profit of US$520m as result of the investments. Around US$425m will be spent on the cement capacity additions and the remainder will go towards projects on urbanisation and its other business lines.

Strategic planning and business development executive vice president José González said “We focus on high-growth metropolitan areas, where our products and solutions nurture the urbanisation needs of these markets. These areas represent around 70% of the population and around 80% of the gross domestic product (GDP) of construction.”

Mexico: Cemex has launched a new brace of CO₂ emissions reduction targets. The group is now targeting CO₂ emissions below 475kg/t of cement and 165kg/m3 of concrete by 2030. These represent decreases of 40% and 35% respectively compared to 1990 levels. The group plans to invest US$60m/yr in efforts to meet its 2030 targets. It had previously targeted CO₂ emissions below 520kg/t of cement by 2030. It now aims to achieve the previous target by 2025. The group says it intends to reach the new targets through the use of alternative fuels with high biomass content, hydrogen injection, low temperature and low CO₂ clinker, decarbonated raw materials, optimisation of the kilns’ heat consumption and the reduction of clinker factor through the higher utilisation of blended cements in the market.

Chief executive officer Fernando Gonzalez said, “Climate action is the biggest challenge of our times, and Cemex is taking decisive action to address it. We commit to continue leading the industry in climate action.”

Pakistan: Cherat Cement’s board of directors has approved plans for a US$215m integrated cement plant at Dera Ismail Khan, Khyber Pakthunkhwa. The company has already invested US$8.24m in acquiring land and leases for the plant. When commissioned in mid-2024, it will have a capacity of 11,000t/day.

Europe: The European cement producers’ association Cembureau says that a possible reduction of European Union (EU) Emissions Trading Scheme (ETS) free allowances would endanger cement producers’ investment decisions and projects. It says that this in turn might produce competition distortions with third parties. The EU is planning to implement a carbon border adjustment mechanism (CBAM) but the association is concerned that its ‘Fit for 55’ 55% CO₂ emissions reduction target for 2030 may have negative implications for the cement industry. However, the association said that it supported the concept of a CBAM.

Cembureau has called for a transition period until 2030 whereby free allocation under the EU ETS will continue fully alongside the introduction of the CBAM. It added that this is compatible with World Trade Organisation rules and avoids any form of ‘double protection’ provided the free allocation is taken into account when calculating the levy paid by any third-party importers. It further stated that the CBAM must cover both direct and indirect emissions. It has also continued to press the legislators to provide for a CO2 charge exemption for EU exporters to third countries, if the country in question is not covered by an equivalent carbon pricing mechanism. The association asked the EU to consider implementing secondary legislation before any CBAM enters force, and to ensure consistency of ‘Fit for 55’ legislative initiatives, applied across a sufficient breadth of sectors to preclude market distortions.