Displaying items by tag: Holcim
Holcim breaks ground on Go4Zero at Obourg
17 May 2024Belgium: Holcim kicked-off its Go4Zero project at its Obourg plant on 16 May 2024 in an event attended by the Belgian Prime Minister Alexander De Croo and the European Commissioner for Climate Action Wopke Hoekstra. The €500m Go4Zero project, supported with €230m of funding from the European Union, will enable the integrated plant to reduce its CO2 emissions by 30% by 2027 and to produce 2Mt/yr of CO2-free cement by 2029. When fully operational, the Obourg plant will capture 1.2Mt/yr of CO2.
The Go4Zero project incorporates a number of approaches to achieve net-zero CO2 cement. The centrepiece is an oxy-fuel combustion process to generate an easy-to-handle exhaust gas with up to 80% CO2. This will be coupled to a cryogenic purification unit to generate a >99%-pure CO2 stream .The project will also make use of waste heat recovery (WHR), new exhaust filtration equipment and Europe’s largest floating solar panel farm.
Switzerland: Holcim has appointed Marco Maccarelli as its Director of Central and Eastern Europe. He will succeed Simon Kronenberg in the post in June 2024, according to the 24 Heures newspaper. The position includes the responsibility of head of Holcim Schweiz.
Maccarelli is currently working as the CEO of Holcim Colombia. Prior to this, he worked for Holcim Mexico first as Director Innovation and Commercial Development and later as Director Cement Sales & Retail. He has worked for Holcim for over 15 years and holds more than 20 years’ experience in the construction sector.
Clinker is the new gold in Kenya
08 May 2024Kenya-based East African Portland Cement (EAPCC) made the news this week with the reopening of the company’s Athi River cement plant after a month-long shutdown. The closure was conspicuous because the company is gradually working towards increasing the integrated plant’s production capacity. The first phase of the maintenance and upgrade project saw the replacement of the production line’s kiln shell in September 2022. The current aim is to increase the unit’s cement production capacity to 1Mt/yr by mid-2026. The recent shutdown appears to have been a more normal annual renewal and repair job but EAPCC has used it as a promotional opportunity. Notably, a spokesperson for EAPCC described clinker as the “new gold” in a recent video explaining what was going on.
It’s an improvement on the financial trouble EAPC found itself stuck within in the late 2010s before the government ended up taking a controlling share in the cement producer. On this front local media reported in July 2023 that the government had found a 'strategic investor' to buy a 30% stake in the company. Nothing more has been said on this topic since then though.
The highlighting of the recent shutdown is likely to be a public relations exercise intended to project stability, but that focus on clinker is telling given that the government introduced its Export and Investment Promotion Levy in July 2023. This legislation imposed a 17.5% fee on imported clinker in order to encourage the local industry. Cement producers that rely on imported clinker - including Rai Cement, Bamburi Cement, Savannah Cement, Ndovu Cement and Riftcot - attempted to lobby against the levy but it remains in place. This business environment helps to explain EAPCC’s renewed focus on clinker production.
One company that stands to benefit from the levy is National Cement, producer of the Simba Cement brand and a subsidiary of Devki Group. It made the news at the start of April 2024 when its subsidiary Cemtech commissioned a 6000t/day clinker plant at Sebit in West Pokot. National Cement already operates an integrated plant near Athi River, south of Nairobi. However, hot on the heels of the West Pokot plant, it is already considering building another integrated plant in the north of Kitui County, to the east of Nairobi. As reported in the local press this week, Cemtech has submitted an environmental impact assessment for the project to the local authorities.
The country has two other clinker producers: Holcim subsidiary Bamburi Cement and Mombasa Cement. The former company announced at the end of 2023 that it had signed a contract to build solar plants at its integrated plant in Mombasa and its grinding plant in Nairobi. The deal was framed as a money saver but additionally it may have been in response to a less than reliable local grid. It also said that it was removing Ordinary Portland Cement (OPC) from its product line from the start of 2024. This move challenged expectations about sustainability initiatives outside of richer countries. Yet, considering how Bamburi Cement argued against the clinker levy, there might have been some commercial thinking here too in order to sell products that use less clinker. Finally, despite completing its divestment of Uganda-based subsidiary Hima Cement for US$84m in March 2024, Bamburi Cement reported a loss of US$2.99m in 2023 compared to a profit of US$1.36m in 2022. Although it reported a rise in turnover and operating profit, it appears that taxes and legal costs related to the sale of Hima dragged the company into a loss.
Graph 1: Rolling annual cement production in Kenya, 2019 - September 2023. Source: Kenya National Bureau of Statistics (KNBS).
It’s been a difficult business environment in Kenya over the last decade given the number of companies that have faced serious financial difficulties. This list includes ARM Cement, EAPCC and Savannah Cement. The last of these companies, Savannah Cement, is currently in administration and is trying to sell its integrated plant. Yet, rolling annual cement production in Kenya has remained above 9.5Mt/yr since early 2022. The government is sticking to promoting local clinker production, and companies like Bamburi Cement, EAPCC and National Cement are making investments of varying scales. The focus, for now at least, is on clinker production in Kenya.
Lafarge Africa makes new board appointments
01 May 2024Nigeria: Lafarge Africa has announced leadership changes following the retirement of Adebode Adefioye as its chair. Adefioye served as a board member since 2012 and as chair since June 2020. Gbenga Oyebode succeeds Adefioye in the role of chair. Oyebode has 42 years’ legal, corporate governance and business operational experience. He currently also chairs Okomu Oil Palm Company, Nestle Nigeria and CFAO Nigeria. Upon his accession to chair, Oyebode will step down from all Lafarge Africa board committees.
Lafarge Africa appointed Puneet Sharma as chief financial officer. Sharma brings 30 years’ corporate experience, including management roles at Tropical General Investment Nigeria and GSK Nigeria. He is a member of The Institute of Chartered Accountants of India and a graduate of Panjabi University, Patiala, India.
Adebode Adefioye said "My tenure on the board is filled with good memories. The company has witnessed significant transformation in the last four years and I am happy that this is attributable to the efforts of every member of the board. I feel fulfilled in retiring as chair knowing fully well that I will be leaving the leadership of the board in good hands. I am grateful for the support of the entire board and the confidence reposed in me.”
Holcim publishes first-quarter results
25 April 2024Switzerland: Holcim recorded net sales of €5.71bn in the first quarter of 2024, down by 2% year-on-year from €5.85bn in the first quarter of 2023. Nonetheless, recurring earnings before interest and taxation (EBIT) grew by 8% to €543m from €503m. The group noted continuing profitable growth. Its Solutions & Products unit raised roofing sales by 67% in local currencies, including 38% organic growth. The unit also acquired Germany-based advanced green roofing systems producer ZinCo and Argentina-based precast and pre-stressed concrete construction systems producer Tensolite. Additionally, Holcim closed three separate acquisitions in the ready-mix concrete, aggregates and construction-demolition materials segments.
In North America, Holcim grew its recurring EBIT by 3.9% in local currency, and anticipates continuing growth in 2024. In its Latin America region, the group noted a strong pipeline of infrastructure projects and increased nearshoring in Mexico. Europe yielded double-digit recurring EBIT growth, while Asia, Middle East & Africa remained profitable in local currency terms.
Australia: Cement Australia has received a US$34.4m federal grant for a kiln upgrade to its Railton cement plant in Tasmania. The upgrade will allow the plant to raise its alternative fuels substitution rate. The project is funded by the government’s Powering the Regions initiative, with total investments valued at US$215m.
Australian Minister for Climate Change and Energy Chris Bowen said “This US$215m investment in Australia’s hard-to-abate manufacturing and mining facilities is about securing the future of high-quality, low-emissions products made right here. Northern Tasmania, Central Queensland and Western Australia have been industrial powerhouses for generations, and the government is ensuring that continues. As global markets change rapidly, we’re supporting Australian industry to not only survive but thrive with our world-class products that support regional jobs across the country.”
Holcim Deutschland and ThyssenKrupp break ground on Lägerdorf cement plant carbon-neutralisation project
23 April 2024Germany: Holcim Deutschland has broken ground on the construction of a new kiln line and CO2 processing unit at its Lägerdorf cement plant in Schleswig-Holstein. The line will feature an OxyFuel kiln, supplied by ThyssenKrupp. ThyssenKrupp’s OxyFuel technology will assist in the capture of 1.2Mt/yr (nearly 100%) of CO2 from the plant. The partners described the upcoming upgraded Lägerdorf plant as one of the world's first carbon-neutral cement plants.
Holcim Deutschland CEO Thorsten Hahn said "We're laying the groundwork for a sustainable world through cement. Cement is essential for our cities, factories, homes, bridges and beyond. As we transition towards renewable energy, we must also construct the foundations and structures for wind turbines and railway tracks. With our climate-neutral cement plant, we ensure that this vital building material remains accessible without further harm to the atmosphere."
ThyssenKrupp Decarbon Technologies’ chief strategy officer Cetin Nazikkol said “It’s vital to switch to climate-friendly processes. By enriching CO2 by means of the pure OxyFuel technology we’ve developed, we help our customers capture almost all of the CO2 arising in the production process and so reuse it in a sustainable manner. Given that global cement production is more than 4Bnt/yr, we see enormous growth potential for our innovative technology.”
Polish cement industry advances with CCS technology
19 April 2024Poland: Polish cement producers are set to build carbon capture installations, supported by government policies. After a decline in production from nearly 19Mt in 2022 to about 16.5Mt in 2023, the industry is facing an increase in cheaper imports from outside the EU, particularly Ukraine, and CO₂ emission fees that account for 30% of the cost of 1t of cement, according to the Dziennik Gazeta Prawna newspaper. The EU has also introduced a carbon border adjustment mechanism (CBAM) for imports.
Despite these challenges, the Kujawy cement plant in Bielawy, owned by Holcim, is launching the large-scale implementation of carbon capture and storage (CCS) technology.
Holcim Polska's president, Maciej Sypek, said "The construction of carbon capture installations in our plants will cost between €320m and €400m. We received a €264m grant from the European Commission's Innovation Fund." According to Sypek, the project is currently in the design phase, with construction expected to start in 2025 and operations beginning in early 2028.
The implementation of CCS at the Kujawy plant could potentially lead to an industry-wide adoption of the technology, costing between US$3.7bn and US$4.9bn, according to the newspaper. Holcim Polska plans to liquefy the CO₂ and transport it by rail to a terminal in Gdańsk, where it will be shipped to the North Sea for underground storage. Cement producers are urging the Polish government to appoint a commissioner for CCS infrastructure and to enact legislative changes to support the construction of such installations. They also believe that rapid modernisation of the energy sector needs to occur to support the energy-intensive process of gas capture.
Mexico: Mexico's major cement producers predict modest growth in 2024 as some government infrastructure projects conclude and budget reductions take effect. These companies, including Cemex, Grupo Cementos and Holcim, have benefited from large-scale projects under President López Obrador but now face a tempered outlook.
General construction activity in Mexico grew in 2023, with a 15.6% increase driven by civil works, increasing the construction industry's GDP to US$94bn. However, with the completion of projects like the Mayan Train and anticipated budget cuts, growth expectations have cooled.
The National Cement Chamber forecasts a 2% rise in cement consumption in 2024, reaching 46.4Mt. Cement producers are adjusting strategies, with Cemex focusing on European markets and Holcim investing in plant expansions in Mexico, including a US$55m investment in its Macuspana plant in Tabasco.
Holcim completes expansion at North Fremont facility
15 April 2024US: Holcim has completed a major expansion of its cement holding facility in North Fremont, allowing the plant to meet ‘growing’ market demands in the Omaha region. The US$20m project includes additional rail capacity, a new 50,000t cement dome, an extra silo and a blender for product mixing.
According to the company, the facility now employs seven staff members, up from three, and fulfils the Nebraska Department of Transportation's blended cement requirements using natural pozzolan to create a lower-carbon product.
Holcim's head of US Corporate Communications, Lynn Safranek, said "The availability of extra cement storage and the addition of rail capacity means fewer trips to transport cement from Holcim’s plant in Ste. Genevieve, Missouri, and more reliance on train transportation, which is more efficient than other land-based alternatives.”