Displaying items by tag: Merger
British Precast merges with the Mineral Products Association
19 January 2022UK: British Precast, whose members include manufacturers of concrete masonry, paving slabs, structural sections and drainage systems, has merged with the Mineral Products Association (MPA) which represents all the UK’s cement makers, over 90% of aggregates producers and more than 70% of ready-mixed concrete suppliers. The merger is intended to give the British concrete industry a single voice, with the sector’s advocacy body, UK Concrete, lobbying on behalf of the sector on sustainability issues. It should also unite the industry behind the ‘Roadmap to Beyond Net Zero’ plan by 2050.
Alan Smith, who retires as President of British Precast, said, “British Precast has been affiliated with the MPA for the past decade and the successful relationship we have built has given our members the confidence to fully support this merger. Coming together enables the industry to operate more strategically, rejuvenating our determination to rise to the challenges of climate change and emphasise the importance of our industry in climate adaptation.”
Two new MPA product groups have been formed as a result of the merger: MPA Precast and MPA Masonry. They join existing MPA product groups including The Concrete Centre and the British Ready-mixed Concrete Association (BRMCA).
Saurashtra Cement and Gujarat Sidhee Cement announce merger
01 December 2021India: Saurashtra Cement and Gujarat Sidhee Cement have agreed to merge into a single entity. Their respective boards of directors approved the plans on 30 December 2021.
Tangshan Jidong Cement to incorporate BBMG East Cement
21 October 2021China: Tangshan Jidong Cement has received the approval of the China Securities Regulatory Commission (CSRC) to incorporate its subsidiary BBMG East Cement. Tangshan Jidong Cement is a joint venture formed by BBMG and Jidong Cement in early 2019.
Mitsubishi Materials and Ube Industries on track to merge cement businesses in April 2022
30 July 2021Japan: Mitsubishi Materials and Ube Industries plan to merge their respective cement businesses and related businesses on 1 April 2022. The new successor company will be temporarily known as C Integration Arrangement before officially becoming known as Mitsubishi UBE Cement Corporation. However, the new name will be subject to input by shareholders.
The two cement producers first announced discussions in early 2020 about a potential merger of their cement businesses and related concerns. They decided to explore merging their cement operations following slowing demand and increased costs due to higher energy prices. They have worked together since 1998 in a joint venture called Ube-Mitsubishi Cement, which integrated their cement sales and logistics operations.
Sagar Cements considering merger with Sagar Cement (R)
20 April 2021India: The board of directors of Sagar Cements is considering merging its wholly-owned subsidiary Sagar Cement (R) (SCR) into the company. A meeting has been scheduled for the company’s board of directors to consider the matter in late April 2021. SCRL, formerly BMM Cements, operates the 1.0Mt/yr Yadiki Mandalam cement plant in Anantapur district, Andhra Pradesh.
Cement news, abridged
07 April 2021Global Cement Weekly celebrates its 500th edition this week. This corresponds to nearly a decade’s worth of news and comment upon the cement industry, since the first edition went out in early June 2011. Time is brief, so the quick version of all of this is as follows: China; production growth; production overcapacity; grinding; corporate mergers; regionalisation; CO2; digitisation; and coronavirus.
Those looking for the longer version should read Peter Edwards’ review of the 2010s in the December 2019 issue of Global Cement Magazine. Although be warned, few were expecting a global pandemic to rock markets and possibly hasten future trends when that article was written. Those looking for the even longer version should read the last 10 years of the magazine and the website… and then let us know what we missed.
Looking back at the first few editions of Global Cement Weekly brings to mind the LP Hartley quote, “the past is a foreign country; they do things differently there.” It’s all very familiar until one comes across the little things that makes one realise how much has actually changed.
For example, countries were imposing import tariffs on cement, companies were buying each other, national cement associations were lobbying hard for their members and cement plants were investing in alternative fuels equipment. All that stuff has been happening continually over the last decade and right into this week, with Russian media announcing who has won the auction to buy Eurocement and LafargeHolcim closing its deal to buy Firestone Building Products. Yet, Lafarge and Holcim were still separate companies and Italcementi was independent in 2011. On the sustainability side, Norcem and its parent company HeidelbergCement Group, with the European Cement Research Academy (ECRA), had just started a partnership agreement with Aker Clean Carbon (ACC) to study post-combustion CO2 capture technology at Norcem’s plant in Brevik, Norway. Jump forward nine years and Norcem signed a deal with Aker Solutions in mid-2020 to order a full scale CO2 capture, liquification and intermediate storage plant at Brevik.
The big numbers from the United States Geological Survey (USGS) show that global cement production grew by 24% to 4.1Bnt in 2020 from 3.3Bnt in 2010. However, the big growth had stopped by around 2013 and production has hovered between 4.0Bnt/yr and 4.2Bnt/yr ever since. Alongside this, Getting the Number Right (GNR) data indicates that net CO2 emissions for cementitous products fell by 4% to 610kg/t in 2018 from 636kg/t in 2010. The former may show a levelling off of production as the Chinese market stabilised in the 2010s but the latter shows the progress that has been made in reducing cement-related CO2 emissions and the scale of the challenge that remains ahead.
Graph 1: Embodied energy versus embodied CO2 of building materials. Source: Hammond & Jones, University of Bath, UK.
Cement industry readers should not lose heart about the future of the industry though, while environmental pressure continues to mount. Graph 1 above shows the embodied CO2 and energy of common building materials. Cement has been rightly identified as a major emitter of CO2 but any society that desires to build strong structures cheaply and at scale requires concrete to do so whilst the data above remains unchallenged. The ratios may change, such as the perennial energy-cost influenced tug-of-war between asphalt and concrete roads, but concrete remains the only game in town. For now. At which point cement production becomes all about reducing the CO2 emissions or capturing them, and determining who exactly pays for this. This then brings us to the present with the European Union Emissions Trading Scheme carbon price of over Euro40/t and other schemes popping up all around the planet. One echo from one of the early editions of Global Cement Weekly was the furore over Australia’s attempt at a carbon tax in the early 2010s. It was repealed in 2014.
One prediction about how the 2020s might be summarised for the cement industry is this: how to get away with pumping out all that CO2? Let’s see what the next decade will bring.
HeidelbergCement Bangladesh plans merger with Emirates Cement
23 February 2021Bangladesh: HeidelbergCement Bangladesh plans to amalgamate its subsidiary Emirates Cement. The Daily Star newspaper has reported that fellow HeidelbergCement Bangladesh subsidiary Emirates Power Company will also be merged as part of the reorganisation.
The subsidiary of Germany-based Heidelberg Cement acquired Emirates Cement Bangladesh and Emirates Power for around US$21.5m in 2019. Emirates Cement Bangladesh operates a plant at Munshiganj with a production capacity of 0.66Mt/yr.
Cemex to merge Cemex España with New Sunward Holding
07 December 2020Spain: Mexico-based Cemex plans to merge Spain-based Cemex España with Netherlands-based New Sunward Holding. The transaction will be registered in late 2020 or early 2021 and dated retroactively to 1 December 2020.
Holcim Philippines board approves subsidiaries merger
24 November 2020Philippines: LafargeHolcim subsidiary Holcim Philippines has announced plans to merge with its subsidiaries Bulkcem Philippine Incorporated and MabiniGrinding Mill Corporation. The Philippine Star newspaper has reported that the board has approved the planned merger, and that a special stockholders’ meeting will take place on 15 January 2021 to finalise the transactions.
Bulkcem Philippine Incorporated leases the Iloilo cement terminal in Western Visayas, while MabiniGrinding Mill Corporation leases the Mabini grinding plant in Calabarzon.
The board also approved the dissolution of Holcim’s Business Service Center, HuBB Stores and Services and British Virgin Islands-based WellBorne Group International.
Chile: The board of directors of Grupo Hurtado Vicuña (GHV) subsidiary Cemento Polpaico, which operates the 2.3Mt/yr integrated Cerro Blanco plant in Santiago and two grinding plants, has voted in favour of a merger with fellow GHV subsidiary Cementos Bicentario (BSA), which operates three grinding plants in the country. The Diario Financiario newspaper has reported that GHV first mooted with merger with the affected parties in February 2018.