Displaying items by tag: Mexico
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.
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.
Cement firms shift to lighter bags for worker health
04 April 2024Mexico: Members of the National Cement Chamber (Canacem) are set to reduce cement bag weights from 50kg to 25kg to comply with NOM-036, according to El Financiero, which aims to prevent and control musculoskeletal and ergonomic diseases in construction workers. The shift affects companies such as Cemex, Cementos Moctezuma, GCC, Cemento Cruz Azul, Cementos Fortaleza and Holcim.
The standard came into effect on 31 March 2024, but Cementos Moctezuma has already started transitioning to 25kg bags. José Barroso, CEO of Cementos Moctezuma, said "Since 2023, Cementos Moctezuma began the transition from 50kg to 25kg bags in all of its packaged product family.” He added "In Mexico, musculoskeletal disorders represent almost half of the occupational injuries, so we are already implementing changes in our plants to operate according to the new standard.”
Mexico: Holcim Mexico has appointed Jorge González Mateu as its chief financial officer (CFO). He previously worked as the Head of Controlling and the Deputy CFO for Holcim Mexico. González Mateu has worked for Holcim group since 2013 with similar financial roles for Holcim Ecuador, as well as other related positions for the group in Spain and Switzerland. Prior to this he worked for Tarmac in Spain.
Mexico/Spain: Cemex has entered a partnership with energy transition investor White Summit Capital to develop projects that will contribute to its 2050 net-zero objectives. The partnership focuses on decarbonising operations and circularity, including reducing its cement’s clinker factor, optimising its fuel mix and transforming refuse into energy.
Sergio Menéndez, president of Cemex Europe, Middle East, Africa & Asia, said “We are pleased to have entered this collaboration with White Summit Capital and are excited to explore how together we can develop innovative solutions to decarbonise Cemex Europe operations and further strengthen our circularity positioning.”
S&P upgrades Cemex to Investment Grade
14 March 2024Mexico: Standard & Poor's (S&P) has raised Cemex's long-term global scale issuer credit rating to Investment Grade (BBB-). The upgrade is attributed to Cemex's robust financial and operating performance, effective deleveraging strategy, and adaptable capital allocation.
The upgrade to Investment Grade marks a significant achievement for Cemex, reflecting its record results and consistent financial performance over several years.
"Achieving an investment-grade credit rating from S&P is a very important milestone for Cemex," said CEO Fernando A González. In 2023, Cemex reported a 25% growth in EBITDA and more than a doubling in Free Cash Flow after maintenance capex.
S&P also elevated Cemex's national scale issue-level rating in Mexico from mxAA to mxAA+.
José María Barroso appointed as CEO of CANACEM
13 March 2024Mexico: The National Cement Chamber (CANACEM) has appointed José María Barroso as its CEO. He will follow on from Jaime Hill Tinoco, the head of Holcim México, in the role, according to the El Financiero newspaper. Barroso’s tenure will cover the 2024 – 2025 period.
Barroso is a graduate of the Instituto Tecnologico de Merida in Yucatan and he also holds a master’s degree in international trade form the same institution. He holds over 40 years of experience in the cement sector working both nationally and internationally for Cemex. He joined Cementos Moctezuma in 2010 as its Sales Director before becoming its Director General in 2018.
Cemex launches clinker micronisation method
05 March 2024Mexico: Cemex has launched a new process called clinker micronisation, developed at its Research and Development Center in Switzerland. The method enables cement producers to lower the clinker factor of their cement by up to 50%, while maintaining its strength. It also offers the additional benefit of allowing concrete users to reduce the proportion of cement in their mixes.
CEO Fernando González said “We are finding new ways to boost our decarbonisation roadmap in the production of cement and concrete. We remain committed to achieving our ambitious 2030 decarbonisation goals on the path to becoming a Net Zero company by 2050.”
Cemex to issue US$322m in sustainable bonds
19 February 2024Mexico: Cemex will issue US$322m-worth of long-term sustainability-linked bonds on 20 February 2024. Noticias Financieras News has reported that the issuance will take place in two series: one of US$117.3m, with a 2.6-year floating rate, and one of US$205.3m, with a 6.6-year floating rate. HSBC will act as the intermediary.
Cemex said “The net proceeds from the reopening of the issues will be used to repay debt, seeking to accelerate the path to an investment grade credit rating."
Cemex and Orcan Energy extend waste heat recovery partnership
15 February 2024Mexico/Germany: Cemex and waste heat recovery (WHR) systems developer Orcan Energy plan to scale up WHR technologies supplied by Orcan Energy at multiple Cemex sites globally. This new multi-site portfolio approach extends an existing partnership, through which the companies trialled Orcan’s systems for electricity generation at Cemex Deutschland’s Rüdersdorf cement plant in Germany.
Cemex’s Europe, Middle East, Africa and Asia regional president Sergio Menéndez said “We already have an initial collaboration with Orcan. Based on the modularity of their solution, Orcan offers the flexibility of both installation and contracts. Thanks to this crucial flexibility, we can adapt to any upcoming changes in our plants. The approach enables us to reduce carbon emissions right now without limiting ourselves in implementing any future technologies such as carbon capture, utilisation and storage. This partnership will help us achieve our sustainability targets and contribute to our aim to use all available heat.”
Orcan Energy’s chief executive officer Andreas Sichert said “We are looking forward to entering this large-scale decarbonisation partnership with Cemex after our initial cooperation in Germany. This step is a testament to Cemex’s forward-looking strategy and the company’s commitment to achieving net zero. For Orcan Energy, this is another milestone in scaling the business internationally with global enterprises. We are proud to be the partner of choice for the cement industry. Our large footprint across the industry shows the economic capability and the technical excellence of our modular and flexible solution, especially in view of uncertain future economic and regulative developments.”