Displaying items by tag: US
Robert Bunting appointed as head of Bunting
26 October 2022US: Bunting has appointed Robert Bunting as its president and chief executive officer. He succeeds his father, Bob Bunting, in the role. Bunting Senior has now become chair of the company.
Robert Bunting joined Bunting’s Elk Grove Village magnet sales team in 2007. He later became the company’s Global Product Manager for Metal Detection in 2014 and then General Manager of Bunting Elk Grove Village in 2016. He previously sat on the business intelligence committee for PMMI (The Association for Packaging and Processing) and is the marketing director of the Process Equipment Manufacturers' Association (PEMA) at present. He holds a degree in business management at Rockhurst University in Kansas City, Missouri and previously worked for Sun Life Financial.
Bunting is a designer and manufacturer of magnetic separators, metal detectors, magnets, magnetic assemblies and magnetising equipment. The company has its headquarters in Newton, Kansas. It was originally founded in 1959 in Chicago, Illinois by Walter F Bunting, the grandfather of Robert Bunting.
INFORM sets up joint venture in Brazil
26 October 2022Brazil: Germany-based INFORM has established a joint venture with its partner Portia LAC in São Paulo. The new company called INFORM PORTIA will take over sales, consulting and support for INFORM software products in Brazil.
Andreas Meyer, the chief executive officer of INFORM, said “With this joint venture, we are expanding our presence in South America to meet the growing demand for software solutions to optimise business processes.” He added, “This joint venture is an important building block in our global network. We strive to maintain a relationship with our customers based on partnership and trust. However, this is much more successful if you also have a local presence.” In addition to its headquarters in Aachen in Germany and new joint venture in Brazil, INFORM is represented by five other INFORM related companies in the US, Chile, Australia, Singapore, and Portugal respectively.
US: The Global Cement and Concrete Association (GCCA) has signed an international partnership agreement with the American Concrete Institute (ACI). Under the agreement, the partners will collaboratively develop and disseminate information on concrete production and its use in construction, with a view to advancing best practices in sustainability.
The ACI said "ACI cooperates closely with our international partners, benefitting everyone in the global concrete community. ACI looks forward to working with the GCCA towards a future where everyone has the knowledge needed to use the latest concrete technologies effectively to meet the demands of a changing world."
US: Australia-based James Hardie plans to establish a 92,900m2/yr cement board plant in Crystal City, Missouri. The producer expects the plant to create 240 new jobs.
Holcim pays the price
19 October 2022Doing deals with terrorists has a price: US$778m. The US Department of Justice (DOJ) revealed this week that it had fined Lafarge for its conduct in Syria between 2013 and 2014. In addition Lafarge and its subsidiary Lafarge Cement Syria (LCS) have pleaded guilty to one count of conspiring to provide material support to designated foreign terrorist organisations in Syria. It is uncertain how exactly the fine will be paid but it is worth noting that successor company Holcim reported net sales of nearly US$27bn in 2021. The fine represents nearly 2% of this.
A reasonable amount of new detail can be found on the DOJ website. LCS was essentially dealing with the Islamic State of Iraq and al-Sham (ISIS) and the al-Nusrah Front (ANF) as they would a local government in relation to the running of the Jalabiyeh cement plant. As a reminder, both of these groups were defined as terrorist organisations by the US government at the time. The relationship apparently started as monthly payments to local armed groups, including ISIS and ANF, to allow movement through checkpoints. This later progressed to a de-facto tax based on cement sales. However, it became worse when LCS started asking ISIS to block or tax imports of cement from Turkey-based competitors into northern Syria as part of a revenue-sharing agreement. Effectively LCS was fixing the price of cement in a war zone by collaborating with terrorists. In the end LCS, the intermediaries and the terrorist groups made around US$80m whilst they were working together.
Holcim’s interpretation of the ruling was keen to point out that the conduct in Syria was recognised by the DOJ as not involving Holcim in any way. The DOJ did agree that Lafarge’s executives didn't disclose their activities in Syria to its successor company Holcim either before or after the merger in 2015. However, it pointed out that Holcim had not carried out due diligence of LCS’s operations in Syria. It added that, “Lafarge, LCS and the successor company also did not self-report the conduct or fully cooperate in the investigation.”
Despite this, other information that Holcim also highlighted was that the US authorities were now happy that effective compliance and risk management controls were in place to prevent anything similar happening again. Crucially, it said that the DOJ didn’t think that an independent compliance monitor was required. It pointed out that none of the conduct involved Lafarge’s operations or employees in the US and that none of the Lafarge executives were working for Holcim or any associated company. Finally, the group wanted to report that the DOJ found that none of the former Lafarge executives involved shared any of the “methods, goals or ideologies” of the terrorist groups operating in area at the time.
The immediate reaction from all of this is what happens to the ongoing legal case in France, also about Lafarge’s conduct in Syria? In mid-May 2022 the Court of Appeals confirmed a charge of complicity in crimes against humanity against Lafarge. The company then reportedly started the appeal process at the Supreme Court. Other charges, including financing terrorism, endangering life and violating an embargo, were lodged earlier in the legal process. The US is generally seen as being the leading prosecutor of international corporate crime but if the French legal system also issued a fine to Lafarge on the same scale things could become difficult for Holcim. The other complication for the French legal case is that the national intelligence services allegedly used Lafarge’s links with the Syrian terror groups to acquire information but they did not warn the company that it was committing a crime.
Holcim is a different company from what it was when LafargeHolcim formed in 2015. It is being run by a new chief executive officer who came in from another company well after the merger and is diversifying away from the trio of cement, concrete and aggregates with the addition of a fourth business area of light building materials. Alongside this the group has been selling off businesses in the developing world and focusing on Europe and North America. Yet it is still being defined by the criminal actions of a company it absorbed seven years ago and the behaviour of staff long gone. Those actions have been investigated and punishment delivered. More may be coming.
MDG America supplies bucket elevators for Drake Cement's Paulden cement plant upgrade
19 October 2022US: Bulk material handling equipment supplier MDG America says that it delivered four chain bucket elevators for Drake Cement's upgrade of its Paulden cement plant in Arizona. Drake Cement installed a new vertical mill grinding plant for cement, granulated blast furnace slag (GBFS) and raw materials grinding at the 0.7Mt/yr integrated plant. The supplier says that two of the elevators will work in a pair, conveying material from a feeder belt, while a third will convey it to the new mill. The fourth elevator will then collect the material for further grinding and metal discharge.
Drake cement secured approval to mine pozzolan for use in the Paulden's plants cement production at Bill Williams Mountain earlier in October 2022. As part of minimising the future mine's impacts, Drake Cement has offered to help the US Forestry Service to thin local woodland as part of local anti-fire management efforts.
Titan America digitises its US cement plants
14 October 2022US: Titan America has successfully implemented machine learning monitoring and adjustment software systems at its cement plants at Pennsuco in Florida and Roanoke in Virginia. The producer says that the increased automation will enhance the plants' efficiency, reliability and product quality.
President and chief executive officer Bill Zarkalis said "I'm incredibly proud to mark the end-to-end digital transformation of our cement plants. A systematic process of test and learn that started several years ago has reached an important milestone.”
Vicat expects earnings to drop in 2022
12 October 2022France: Vicat has revised its full-year 2022 earnings forecast. The group now expects to record a drop in its earnings before interest, taxation, depreciation and amortisation (EBITDA). In France and Switzerland, rapidly rising energy costs have outstripped the producer's sales growth so far in 2022, while, in the US, its upgraded Ragland, Alabama, cement plant only entered production following a 'very gradual start-up' in mid-late 2022. Vicat also carried out debottlenecking work on its Kalburgi, India, cement plant during the year to date.
Vicat said that all other markets in which it operates are developing in line with the expectations detailed at the time of the publication of its first-half 2022 results in August 2022.
Update on Peru, October 2022
05 October 2022Cemento Yura said it was considering expanding cement and lime production this week. The announcement, made in an interview to business newspaper Gestión, follows a strong second quarter for the subsidiary of Grupo Gloria with clinker production volumes jumping up by 36% year-on-year to 0.51Mt. Overall for the half-year its clinker and cement production rose by 12.8% year-on-year to 0.86Mt and 12.7% to 1.47Mt. The success was attributed to consistent demand from the domestic sector as well as various large-scale mining projects. Julio Cáceres, the commercial director for its Cement, Concrete and Lime Division in Peru, Chile and Bolivia, wouldn’t say where the company was considering heading next, other than that remarking that it was attentive to new markets.
As Cáceres’ job title implies Cemento Yura also operates cement plants outside of Peru. At home it runs one integrated plant in the south of the country near to Arequipa as well as a lime plant at Juliaca. Outside of Peru though it also runs two integrated plants and a grinding unit in Bolivia, via its Sociedad Boliviana de Cemento (SOBOCE) subsidiary, and two integrated plants in Ecuador, via its Union Cementera Nacional (UCEM) subsidiary. The company also has assorted concrete assets. The international aspect to Cemento Yura’s business is interesting given that the larger cement producers in Peru are dominant in different parts of the country with Cementos Pacasmayo in the north, UNACEM (Unión Andina de Cementos) in the centre around Lima and Cemento Yura in the south. Notably, UNACEM also runs a plant in Ecuador and one in Arizona, US. It is also worth mentioning that competition issues have been reported in the local market previously. In mid-2021 Peru’s competition authority, the National Institute of the Defense of Competition and Intellectual Property Protection (INDECOPI), investigated Cemento Yura.
Cemento Yura’s rise in clinker production in the second quarter of 2022 is worth considering because in a previous interview with the local press Humberto Nadal, the chief executive officer of Cementos Pacasmayo, said that importing clinker had become more expensive in 2021. Subsequently, the company started a US$70m upgrade at its Pacasmayo plant to increase its production capacity by 0.6Mt/yr. In its second quarter financial results for 2022 Cementos Pacasmayo directly credited a 27% increase in its earnings on higher operating profits arising from decreasing costs by using less imported clinker. Sure enough data from Association of Cement Producers (ASOCEM) shows that both cement and clinker imports started to fall in October 2021 and have mostly followed a downward trend since then. Clinker imports fell by 41% year-on-year to 0.66Mt from January to August 2022 compared to the same period in 2021.
Graph 1: Cement production in Peru, 2014 – present. Source. Association of Cement Producers (ASOCEM).
Looking at the wider picture in Peru, cement production has stayed fairly consistent since 2014 at around 10Mt/yr. An upward trend probably started in 2019 but then the Covid-19 pandemic cut it off in the first half of 2022 before the market surged back in the second half of that year. 2021 was a good year with production peaking at 12.9Mt. So far the first eight months of 2022 have seen production rise by 5.3% year-on-year to 8.64Mt.
In summary, cement production is rising in Peru, importing clinker appears to have become more expensive for at least one of the producers and some of the larger local companies are investing in new production capacity, considering it or thinking about acquisitions elsewhere. Local clinker producers appear to be in a good place; clinker importers, or those reliant on it, not so much.
Heliogen secures US$4.1m grant for solar-fired cement production
04 October 2022US: Heliogen is among recipients of a total US$24m in US Department of Energy funding for solar thermal power projects. The department granted it US$4.1m-worth of funding for a project in which it will calcine limestone at 950°C using the heat of the Sun. Heliogen hopes to apply the methods it is developing to prevent the direct emissions of cement production.