Displaying items by tag: Germany
Germany: Heidelberg Materials raised its sales by 1.8% year-on-year to Euro16.1bn in the first nine months of 2023. Regionally, sales rose by 7.5% to Euro3.69bn in North America, by 2.6% to Euro2.76bn in Asia-Pacific by 3.5% to Euro4.94bn in Western and Southern Europe, by 2.5% to Euro2.74bn in Northern and Eastern Europe and Central Asia, but fell by 10% in Africa-Eastern Mediterranean Basin to Euro1.41bn. Cement volumes fell across all of the group’s business lines, as ‘solid developments’ in infrastructure and industrial commercial construction failed to offset locally ‘massive’ declines in residential construction. Heidelberg Materials raised its 2023 outlook based on anticipated continued moderate revenues growth to a full-year result of Euro2.85 – 3bn, from Euro2.7 – 2.9bn previously.
Chair Dominik von Achten said “We have closed the first three quarters of 2023 with a strong result, despite declining demand for our building materials. On a like-for-like basis, all group areas have contributed to this result. I would like to thank the entire Heidelberg Materials team for their outstanding performance in what continues to be a very challenging business environment.” Von Achten continued “In the third quarter, we were able to further strengthen our pioneering role in the decarbonisation of the building materials sector. Our activities have gained further momentum with the installation of the core equipment of the carbon capture, utilisation and storage (CCUS) plant in Brevik, Norway, and the start of construction of a CCUS pilot plant in Bulgaria. This brings us much closer to our goal of offering our customers climate-friendly products on a large scale.”
Heidelberg Materials’ third-quarter sales drop in 2023
20 October 2023Germany: Heidelberg Materials preliminary reported a 4% year-on-year decline in its sales during the third quarter of 2023, to Euro 5.6bn. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 17% to Euro1.39bn from Euro1.28bn. The group succeeded in raising its profit in the quarter, by 24% year-on-year to Euro1.08bn.
Heidelberg Materials says that it expects to record a ‘moderate increase’ in its revenues in full-year 2023. The company raised its profit target range for the year to Euro2.85 – 3bn from Euro2.7 – 2.9bn.
Will Heidelberg Materials sell up in India?
11 October 2023The Indian corporate rumour mill ramped up this week with speculation that UltraTech Cement and Adani Group might possibly be interested in buying Heidelberg Materials' assets in India. This follows the story broken by the Economist newspaper last week that JSW Cement had made an unsolicited offer to buy them. However, when HeidelbergCement India was asked by the Bombay Stock Exchange what exactly was going on, it replied that it was unaware of any such development and that it did not comment on market speculation.
A week later though and now another related story has popped up. In this case it is unclear exactly what the Hindu newspaper actually knew. The country’s two largest cement producers are locked in a battle for capacity expansion and any opportunity is likely to be of interest to them both. Yet the newspaper did quote a source who said that any divestment by HeidelbergCement India (HCI) would involve a “full-fledged bidding process,” implying that something may be going on.
Germany-based Heidelberg Materials operates four main subsidiaries in India: Gulbarga Cement; HC Trading (India); HCI; and Zuari Cement. HCI and Zuari Cement are the main two in terms of cement production. Heidelberg Materials entered the market in 2006 via a number of purchases and a joint-venture. It then acquired Zuari Cement via its takeover of Italcementi in 2016. Between them the two subsidiaries operate four integrated plants, three grinding plants and one terminal in Central and Southern India. Altogether the company says it has a total cement production capacity of 14Mt/yr. Gulbarga Cement, meanwhile, is a long running project via Zuari Cement to build a new integrated plant at Gulbarga in Karnataka. As of mid-2021 at least the company was still finalising planning and permitting requirements.
HCI’s income fell by 3% year-on-year to US$275m in the financial year to the end of March 2023 from US$282m in the same period that ended in 2022. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 39% to US$35.4m from US$58.2m, its lowest figure since at least its 2017 financial year. The company blamed this on higher fuel prices, although it has been trying to offset this by optimising its fuel and power mix. Unfortunately, it was not able to pass these costs on to its customers through price rises due to competition and new cement plants being commissioned in its market areas. Its revenue and profits improved somewhat in the quarter to July 2023. Recent financial data on Zuari Cement appears to be unavailable, possibly in part due to the company changing the dates of its financial year in 2020. However, it reported revenue of US$249m in its 2021 financial year, a broadly comparable figure to HCI’s. When asked during the company’s earnings call in July 2023, HCI’s managing director Joydeep Mukherjee did confirm that the company was looking at a potential merger with Zuari Cement. However, the company was waiting for the right time before it would consider actually doing it.
The Indian cement market has been consolidating in recent years. Companies have been increasing their production capacity, competition has been intensifying and the spike in fuel prices in 2022 battered profits. Adani Group’s acquisition of Holcim’s businesses in 2022 has probably been the most visible example of this trend towards mergers and acquisitions. It follows UltraTech Cement’s acquisition of Jaiprakash Associates in 2017. Heidelberg Materials has been steadily selling off bits and pieces of its cement business since the mid 2010s but at a slower pace than Holcim. Selected sales have occurred in Italy, Spain, Georgia, Ukraine and various countries in Africa, but the biggest was the sale of its US West region to Martin Marietta Materials for US$2.3bn in 2021. It reinforced this process with its ‘Beyond 2020’ strategy with the stated aim to simplify its country portfolio and prioritise its strongest market positions. A large-scale divestment of its operations in India would certainly fit with this plan. Whether the current reporting is accurate or not, Heidelberg Materials’ intentions for its Indian operations are certainly worth keeping an eye on.
Jan Weckes appointed as managing director of Schade Lagertechnik
11 October 2023Germany: Schade Lagertechnik appointed Jan Weckes as its managing director from the start of September 2023. Weckes previously worked as the managing director for IAS. Prior to this he had managerial sales and marketing roles with MBE Coal & Minerals Technology and worked for Outotec for a decade. He holds a PhD in metallurgy and materials engineering from RWTH Aachen University.
Heidelberg Materials announces changes to managing board
04 October 2023Germany: Heidelberg Materials has announced several senior-level changes to its corporate structure, with the establishment of some new roles. Jon Morrish, currently responsible for Western & Southern Europe, will take on responsibility for the newly established group area of Europe as of January 2024. This will follow the retirement of Ernest Jelito, currently responsible for Northern & Eastern Europe-Central Asia and the Competence Center Cement of Heidelberg Materials, at the end of December 2023.
Elsewhere, Roberto Callieri, General Manager Italy, will be promoted to the Heidelberg Materials Managing Board and take on responsibility for Asia as of January 2024. Incumbent Kevin Gluskie’s term will end at the end of January 2024. As part of the change, René Aldach, chief financial officer, will assume additional responsibility for Australia as of January 2024. Axel Conrads, currently President of the Midwest Region in the US, will be promoted to the Heidelberg Materials Managing Board, taking over the new role of chief technical officer as of February 2024.
HeidelbergCement India unaware of any discussions between Heidelberg Materials and JSW Cement
04 October 2023India: HeidelbergCement India has clarified that it is ‘unaware’ of reported discussions between its parent company Heidelberg Materials and JSW Cement over the possible transfer of the former’s Indian assets, Reuters has reported.
Heidelberg Materials owns 13.4Mt/yr-worth of cement capacity in India, of which HeidelbergCement India comprises 6.3Mt (47%).
RHI Magnesita acquires P-D Refractories
03 October 2023Central Europe: Austria-based RHI Magnesita has acquired P-D Refractories from Germany-based Preiss-Daimler Group for Euro45m. P-D Refractories produces refractories in the Czech Republic and Germany, and operates other sites in the Czech Republic and Slovenia.
RHI-Magnesita’s CEO Stefan Borgas said “The production capabilities and vertical integration of P-D Refractories, combined with RHI Magnesita’s know-how and renowned research and development capabilities, will complement our product portfolio and enlarge our production footprint and sales channels on a global scale. This acquisition is our sixth transaction to close in the year to date and marks a major milestone for both companies in the process industries sector. Together we look forward to expanding our footprint and strengthening our market presence by offering high-grade refractory products and solutions to an enlarged customer base.”
Cemex to buy mortars and adhesives manufacturer Kiesel
28 September 2023Germany: Mexico-based Cemex has agreed to buy Kiesel, a manufacturer of mortars and adhesives, for an undisclosed sum. The deal is intended to grow Cemex’s Urbanization Solution business through bolt-on acquisitions. The acquisition will be subject to conditions including regulatory approval. The transaction is expected to be competed from the fourth quarter of 2023.
Sergio Menéndez, president of Cemex Europe, Middle East, Africa & Asia said “This acquisition will enhance our Urbanization Solutions business and allow us to serve our customers better.” He continued, “We remain committed to increasing our capacity to serve growing urban markets with more sustainable and innovative solutions.”
Kiesel was originally founded in 1959 and serves markets in Germany, France, Poland and the Czech Republic. Its portfolio includes a range of products to ensure efficient installation of all types of floors or wall coverings, as well as mortars for the installation of ceramic and natural stone tiles.
Titan partners with Orcan Energy for waste heat recovery collaboration
27 September 2023Greece/Germany: Greece-based cement producer Titan Group and Germany-based Orcan Energy have entered a partnership to explore the development and deployment of Orcan’s innovative modular waste heat recovery (WHR) solutions across Titan’s international cement production base. Orcan’s solution converts cement process waste heat into electricity that it says can accelerate decarbonisation while reducing operational costs. As a first step, the partners will undertake an assessment of where Orcan Energy's WHR systems can be applied across Titan's facilities. The study will encompass a thorough pilot site evaluation, starting at several plants within the group. The initial focus will be on recovering waste heat from pre-heaters and clinker coolers.
Samir Cairae, Chief Technology Officer at Titan said “The collaboration with our waste heat recovery partner Orcan Energy has the potential to transform waste heat into zero-carbon clean energy, with a novel but well-proven modular approach."
Andreas Sichert, chief executive officer at Orcan Energy, said “We are thrilled to partner with Titan to use its vast and valuable waste heat resources. Our technology will help not only to reach the group’s extraordinary decarbonisation ambitions but also to significantly save electricity expenses. Our modular approach will allow Titan to flexibly respond to outside changes in uncertain times.”
Look out for an interview with Orcan Energy in the forthcoming November 2023 issue of Global Cement Magazine
GEA trials carbon capture technology at Phoenix Zementwerke cement plant
18 September 2023Germany: Engineering company GEA has installed a carbon capture pilot plant at the Phoenix Zementwerke cement plant in Beckum, North Rhine-Westphalia. The supplier will now conduct testing over ‘several’ months, but said that it is confident that the cement plant is suitable for an installation to capture over 90% of its CO2 emissions. GEA’s carbon capture systems run on energy from waste heat recovery, with minimal to zero extra electrical input.
Phoenix Zementwerke managing director Marcel Gustav Krogbeumker said “We consider carbon capture a very exciting technology. Thanks to GEA's decades of experience in emissions control, I am very positive that together we can develop and implement a solution."