Displaying items by tag: SCG Cement
Thailand: Siam Cement Group (SCG) reported first-quarter sales of US$3.36bn in 2024, down by 3% year-on-year. The group partly attributed this to a decline in its cement volumes. Nonetheless, group earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 4% to US$341m. Special items in the group’s first-quarter 2023 results precipitated an 85% year-on-year decline in net income to US$65.5m from US$446m.
SCG recorded first-quarter CO2 emissions of 5.99Mt, outstripping the Science-Based Targets Initiative (SBTi)’s recommendation of a 2.5% annual reduction. It relied on 47% renewable energy sources in its cement production.
Indonesia: Siam Cement Group (SCG) subsidiary PT Semen Jawa used 24,000t of alternative raw materials in its cement production during the first quarter of 2024. These circular materials included bottom ash, fly ash and slag. This corresponds to 3% of its total raw material usage. Meanwhile, the producer co-processed 15,000t of alternative fuel (AF) during the quarter, representing a 20% AF substitution rate.
SCG Indonesia director Warit Jintanawan said that the developments "Not only enhance production efficiency, but also significantly reduces our carbon footprint. This is a testament to SCG's commitment to supporting Indonesia's climate goals, aiming to reduce greenhouse gas emissions by 32%, aligned with Enhanced National Determined Contributions."
Nuada signs carbon capture partnerships with Cementos Argos, Cementos Molins, Holcim and Siam Cement Group
13 December 2023World: Carbon capture technology developer Nuada has entered into partnerships with four global cement market leaders. Cementos Argos, Cementos Molins, Holcim and Siam Cement Group (SCG) will all collaborate with Nuada to evaluate its latest carbon capture system for use in cement plants. The parties concluded the agreements with the support of the Global Cement and Concrete Association (GCCA), through its Innovandi Open Challenge.
Cementos Argos future tech leader Daniel Duque said “The GCCA Innovandi Open Challenge is a tremendous initiative where cement players collaborate with innovative companies that are developing the technologies and business models of a low CO2 construction industry. Nuada technology is a very interesting proposal with great potential.”
Cementos Molins’ chief innovation officer, Ignacio Machimbarrena, said “We are steadfast in our commitment to achieve carbon neutrality by 2050. Acknowledging the crucial role of carbon capture in this mission, we see Nuada's innovative Metal-Organic Framework (MOF) technology as a promising solution. Cementos Molins is fully dedicated to supporting this pioneering technology and collaborating with industry partners to pave the way for a greener future.”
Holcim’s global head of research and development, Edelio Bermejo, said “With carbon capture projects around the world and a commitment to invest US$2.28bn by 2030, we are leading our industry’s transition to a net-zero future. Partnering with Nuada will facilitate the testing and accelerate the deployment of their technology, ultimately supporting the scaling up of carbon capture efforts. We look forward to continued innovation and collaboration within the industry towards the goal of a net-zero future.”
SCG carbon capture and utilisation (CCU) director Surachai Vangrattanachai said "Collaborating with Nuada has been instrumental in our pursuit of innovative solutions. Their commitment to advancing technology aligns seamlessly with SCG's vision for sustainable progress. Together, we aim to pioneer transformative initiatives that drive us closer to net zero emissions.”
The GCCA’s cement, innovation and ESG director Claude Loréa said “This announcement is a testament to the success of the GCCA’s pioneering Innovandi Open Challenge Programme. It’s great to see Nuada – one of the first start-ups we worked with when we launched the programme in 2021, going from strength to strength, and helping to develop the vital carbon capture technology our industry needs to help us achieve net zero by 2050.”
Nuada co-chief executive director Conor Hamill said “The commitment of these major cement players to collaborate with Nuada attests to the potential of our carbon capture innovation as a cornerstone solution for low-carbon cement, and we eagerly anticipate working together to accelerate its deployment.”
Siam Cement Group Vietnam’s sales drop in first nine months of 2023
16 November 2023Vietnam: Siam Cement Group Vietnam’s sales dropped by 30% year-on-year in the first nine months of 2023, to US$901m. Việt Nam News has reported that this corresponds to 8.4% of Siam Cement Group (SCG)’s consolidated sales. Vietnam is SCG’s main overseas market, ahead of Indonesia, where it recorded US$760m (7.1%) of sales.
Siam Cement Group’s sales fall in third quarter of 2023
27 October 2023Thailand: Siam Cement Group’s sales dropped by 12% year-on-year to US$3.47bn during the first nine months of 2023. The group’s net profit remained level year-on-year, at US$67.4m.
Thailand: China-based intelligent dumptruck supplier Waytous has partnered with Siam Cement Group (SCG), as well as Thailand Advanced Info Service, Huawei, and Zhengzhou Yutong Mining Equipment, to develop full-scope automated operating systems for limestone mines. SCG will host a study at its Saraburi limestone mine in Central Thailand. The study will use Waytous’ driverless vehicles, supported by 5G, AI, cloud computing and new battery technologies.
Waytous CEO Chen Long "We've carried out two phases of unmanned mining research for this project and found the most comprehensive, efficient, and effective unmanned solution for cement mines in Saraburi.”
Thailand: Siam Cement Group (SCG) has appointed Thammasak Sethaudom as its president and chief executive officer. He will succeed Roongrote Rangsiyopash, following his resignation, from January 2024. Thammasak has also been appointed as the president of Cementhai Holding Company. Surachai Nimlaor the president of SCG’s cement division will also be appointed to president of the division from the start of 2024.
Thammasak has worked for SCG for over 30 years in a variety of financial and investment positions, primarily in the chemicals business. Prior to this, he was the general director of Long Son Petrochemicals. He holds a bachelor’s degree in electrical engineering from Chulalongkorn University, a master of business administration (MBA) postgraduate degree from the London Business School and has also attended Harvard Business School’s Advanced Management Program.
Rondo Energy raises US$60m from investors
18 August 2023US: Heat Battery developer Rondo Energy has concluded a financing round with US$60m raised in investments, Renewables Now News has reported. Investors included Siam Cement Group and Titan Cement Group, as well as Breakthrough Energy Ventures, Energy Impact Partners, the Climate Innovation Fund, Rio Tinto, SABIC, Aramco Ventures, SDCL Energy Efficiency Income Trust and John Doerr. Rondo Energy’s Heat Battery is a means of connecting cement plants and other industrial facilities to a constant supply of electricity ultimately derived from renewable energy sources.
CEO John O'Donnell said “Our Strategic Investor Advisory Board will help Rondo focus on the simplest, fastest ways to power their operations with low-cost clean energy and shape our priorities for ongoing research and development.”
Malaysia: YTL Cement and Thailand-based SCG have signed a memorandum of understanding with Innocement, a joint venture between the Sarawak Economic Development Corporation (SEDC) and the Bintulu Development Authority (BDA). The agreement is intended to strengthen the cement supply chain, secure the reliability of supply and stabilise prices in the region, according to the Star newspaper. In January 2023 representatives of the SEDC and the BDA had visited SCG in Bangkok. At this time it was reported that a joint venture between the SEDC and the BDA wanted to import 0.5 – 1Mt/yr of cement from SCG.
Update on cement diversification, June 2023
07 June 2023Taiwan Cement said this week that it is aiming for cement to account for less than half of its sales by 2025. At the annual shareholders’ meeting chair Nelson Chang defended the cement sector as a core business but said that the company was expanding more into the green energy sector through its energy storage and vehicle charging lines. Chang directly linked the strategy to growing carbon taxes around the world, such as the European Union Emissions Trading Scheme, where the carbon price has been occasionally close to pushing past Euro100/t since early 2022. Taiwan Cement formed a joint venture with Türkiye-based Oyak Group in 2018 that runs Cimpor in Portugal.
Company |
Cement share of business |
Other main sectors |
CNBM |
45% |
Aggregates, concrete, gypsum, wind turbines, batteries, engineering |
Anhui Conch |
78% |
Aggregates, concrete, sand, trading |
Holcim |
51% |
Aggregates, concrete, lightweight building materials |
Heidelberg Materials |
44% |
Aggregates, concrete, asphalt |
UltraTech Cement |
95% |
Concrete |
Taiwan Cement |
68% |
Power supply, rechargeable lithium-ion battery, sea and land transportation |
Taiheiyo Cement |
70% |
Aggregates, concrete |
Table 1: Cement business share by revenue of selected cement producers. Source: Corporate annual reports.
Taiwan Cement’s plan to decrease its reliance on cement is becoming a familiar one. Holcim notably revealed in 2021 that it was growing its light building materials division. Its cement division represented 60% of sales in 2020 with concrete and aggregates making up most of the rest to 92% and the remaining 8% on other products including light building materials. This started to change with the acquisition of roofing and building envelope producer Firestone Building Products in 2021. Other similar acquisitions have followed. Holcim’s current target is to grow the Solutions & Products division to around 30% by 2025, with cement reduced to somewhere between a third and half of sales. Earlier this year Japan-based Taiheiyo Cement said it was doing a similar thing as part of its medium-term strategy to 2035. In its case cement represented 70% of its sales in 2022 but it is now aiming to reduce this to 65% by 2025 and 50% by 2035.
A common pattern for the business composition of European cement companies is a mixture of heavy building materials made up of cement, concrete and aggregate. However, not every cement company follows the same route. Some cement companies are simply parts of larger conglomerates. UltraTech Cement, for example, is mostly just a cement company. However, it is also part of Aditya Birla Group, which runs a wide range of industries including chemicals, textiles, financial services, telecoms, mining and more. Depending on how one looks at it, UltraTech Cement’s cement business ratio is large or Aditya Birla Group’s ratio is small. Siam Cement Group (SCG) in Thailand is another example of a cement producer operated by a conglomerate with other major businesses.
A different approach that some cement producers take is to mix cement production with complimentary businesses outside of heavy building materials. A good example of this is Votorantim Cement in Brazil, which manufactures cement and steel. Companhia Siderúrgica Nacional (CSN) is another Brazil-based cement producer that is also well known for steel production. Adani Group in India, meanwhile, was well known for logistics, power generation and airports before it purchased Ambuja Cements and ACC from Holcim in 2022.
The driver for cement companies looking to reduce cement as a proportion of their businesses has varied between the three examples presented above. Holcim’s approach has been in response to growing European carbon costs but it also fits with a general desire to broaden its business as the company has sought to reshape itself following the merger between Lafarge and Holcim. Taiheiyo Cement’s plans also have a sustainability angle but the Japanese market has been in slow decline since the 1990s and this has been made worse by the spike in energy prices since 2022. Investing in new businesses makes sense for either of these reasons. Lastly, Taiwan Cement says it is taking action in response to carbon prices around the world. However, its proximity to many other large-scale producers in the Far East may also be a factor. Whether more companies follow suit and also start to reduce the ratio of their cement businesses remains to be seen. Yet, mounting carbon taxes and global production overcapacity look set to make more of the larger cement producers consider their options in certain places.