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Global: The Global Cement and Concrete Association (GCCA) has received nearly 100 applications from worldwide tech start-ups for its Innovandi Open Challenge, which targets the decarbonisation of cement and concrete. This year's challenge is centred on carbon capture, utilisation and storage (CCUS) technologies.
Thomas Guillot, GCCA’s Chief Executive, said "There are already more than 100 CCUS cement industry pilots, projects and announcements in the pipeline across the world – with the world’s first commercial scale carbon capture and storage plant set to complete later this year. Innovation will help our industry to deploy this technology further and faster."
Claude Loréa, GCCA’s Cement, Innovation and ESG Director, said "It’s really encouraging to see nearly 100 applications for our Innovandi Open Challenge and from all parts of the world. As well as the US, UK and India, we’ve received applications from China, Greece and Australia for the first time. It demonstrates the high level of interest in working with our industry to make cement and concrete net zero. We’re looking forward to assessing all the applications, in detail."
The association, alongside over 50 experts from member companies, will now review and shortlist the most deployable technologies, offering shortlisted start-ups access to key industry resources and networks.
Punjab government to amend Local Government Act for establishment of new cement plants 18 April 2024
Pakistan: The Punjab government has decided to amend the Local Government Act 2022 to remove discrepancies and has called for proposals from all relevant departments. It aims to ensure that all necessary clearances are obtained before approving the establishment of new cement plants, according to Pakistan Official News. Due to water shortages, expansions or new establishments of cement plants must undergo a feasibility study. Committee members will personally inspect sites for the approval of these plants and the Irrigation Department will pursue legal action against any cement plants exceeding prescribed water usage limits.
Cyprus/Canada: Eureka Shipping has announced the construction of a new cement carrier for operation in the Great Lakes, designed to replace two older vessels whilst maintaining the same cargo capacity. The vessel will discharge cargo at rates of up to 1000t/hr.
The carrier is currently under construction by the Holland Shipyard Group in the Netherlands and is scheduled for delivery in 2025. Until then, the MV Sunnanvik will service its trade routes in the region from April 2024.
What happened to Tianrui Cement?
Written by David Perilli, Global Cement
17 April 2024
The stock market price of Tianrui Cement crashed by a staggering 99% last week. On 9 April 2024, during the last 15 minutes of trading at the Hong Kong Stock Exchange, the price of shares in the company dropped from around US$0.64 to below US$0.01. Its market capitalisation swung from US$1.8bn to US$18m in a quarter of an hour. The cement producer then suspended trading shares the following morning. It said trading would remain halted until it made a formal announcement about the situation. At the time of writing that announcement is still forthcoming. The question on everyone’s minds is, “What happened?!”
On its website Tianrui Cement describes itself as “one of the 12 national cement enterprises supported by the Chinese government.” It is part of Tianrui Group and it listed itself on the Hong Kong Exchange in late 2011. By the end of 2020 it had 22 clinker production lines and 59 cement grinding units with a total cement production capacity of just under 58Mt/yr. It describes itself as the “leading clinker producer in Henan and Liaoning Provinces” and the ninth biggest clinker producer by capacity in the country.
Unfortunately, as reported by Global Cement Weekly earlier in April 2024, the cement market in China was tough in 2023. This has continued into the first quarter of 2024 with cement output falling by 12% year-on-year to 337Mt. Tianrui Cement, like many other China-based cement producers, reported falling sales and profits in 2023. Its revenue decreased by 29% year-on-year to US$1.09bn from US$1.58bn and it made a loss of US$87.6m compared to a profit of US$62m. Its cement sales volumes fell by 9% to 25.2Mt and it noted that the average price also fell by 22%. It blamed the fall in revenue on the lower volumes and prices. Profits and earnings suffered in turn as it couldn’t cut its costs fast enough.
Aside from the general poor state of the property market in China there has been little information about what actually happened to Tianrui Cement on 9 April 2024. Reuters reported speculation amongst financial sources that the company may have become subject to a margin call. In this situation an investor that has borrowed money to invest in shares has to provide additional funds if the value of the shares fall below a certain point. Bloomberg said that the controlling shareholder Li Liufa and his spouse jointly own approximately 70% of the company. It noted the risks of companies with a high concentration of shareholders and those that use shares as debt collateral. In this situation a large sale of shares could potentially trigger a panic as there might not be enough buyers.
Within China the Financial Associated Press (CLS) reported that three other companies listed on the Hong Kong Exchange had also experienced severe stock market volatility at the same time as Tianrui Cement. None of these other companies are in the building materials sector. Following the drop in its share price, Tianrui Cement told local media that the company was operating normally. Its spokesperson wondered whether the plunge in share value was due to small shareholders selling up. Coverage of local media by the China Cement Association explored the theory that the market was jittery about the poor state of the cement industry in China. Suspicions about the company’s debt structure were also raised.
From a western point of view the meteoric rise of the cement industry in China over the last 20 years has always carried the fear of a hard landing once the period of growth ended. The trick for the government and cement manufacturing is how to transition to lower levels of cement production without causing a recession. So, extreme stock volatility for a major cement producer in China is exactly what a cynical external observer might expect. China has a couple of exit routes up its sleeve though from the state-controlled nature of its economy, to how it approaches its net zero commitments, to the unreliability of its data, to exporting production capacity overseas and so on. This leaves us waiting to see what Tianrui Cement has to say to the market about what happened and what happens next. One share price crash for a cement producer might be forgivable. Two, however, might be seen as a sign of something else.
Michael Kilgariff appointed as head of Cement Concrete & Aggregates Australia
Written by Global Cement staff
17 April 2024
Australia: Cement Concrete & Aggregates Australia (CCAA) has appointed Michael Kilgariff as its CEO with effect from 6 May 2024. He will succeed Jason Kuchel, who has been working as the interim CEO.
CCAA represents the heavy construction materials industry in Australia. CCAA members operate cement manufacturing and distribution facilities, concrete batching plants, hard rock quarries, and sand and gravel extraction operations throughout Australia.
Kilgariff brings with him over 20 years industry association experience across infrastructure, transport, logistics, and energy sectors. He was the CEO of Roads Australia from 2018 to 2023, the managing director of the Australian Logistics Council from 2009 to 2018 and worked for the Energy Networks Association from 2004 to 2009.
George Agriogiannis, the chair of CCAA said that “Michael Kilgariff’s appointment comes at a critical time for CCAA as it goes through a process of renewal and transformation.” He continued, “The infrastructure industry is undergoing a pivot from transport to energy and social infrastructure, while the building industry is also facing a number of economic and social challenges, including an acute housing shortage. All these sectors require an efficient and sustainable supply chain of heavy construction materials.”