Displaying items by tag: US

Colombia: Cementos Argos has invested around US$42m on a new terminal in the free trade zone of Cartagena. It is expanding its port infrastructure and tripling the import-export capacity of the site to 3.5Mt/yr. The new terminal, which adds to Argos' existing port facility, from which it exports cement and clinker to the US and other destinations in the Caribbean and Central America, will begin operations in the first quarter of 2022. An official ceremony marking the opening of the terminal will be held in January 2022.

"This new terminal will allow us to substantially increase cement exports to the US, taking advantage of the growing demand for construction materials in that country," said Juan Esteban Calle, the chief executive officer of Cementos Argos.

US: Holcim has signed an agreement to acquire Malarkey Roofing Products for US$1.35bn. The transaction will be financed with cash and it is expected to complete in the first quarter of 2022. The Switzerland-based construction materials group said that the acquisition would fit well with its Firestone Building Products subsidiary and that the purchase would position it as a full roofing provider. Malarkey Roofing Products has forecast net sales of US$600m and earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$120m in 2020.

Jan Jenisch, the chief executive officer of Holcim, said “We are off to a strong start to our ‘Strategy 2025 – Accelerating Green Growth’ with the acquisition of Malarkey Roofing Products, expanding our Solutions & Products business to become a global leader in roofing systems.” He added “Our companies are highly complementary with many upsides.”

Malarkey Roofing Products was founded by Herbert Malarkey in 1956 and has its headquarters in Portland, Oregon. It provides products for the residential roofing market from roofing shingles to ice and water barriers. It operates production plants in Oregon, California and Oklahoma.

Taiwan: Zhang Anping, the chair of Taiwan Cement, has expressed doubts about the strength of the Chinese market in the short term. Whilst being interviewed by the state-owned Central News Agency at a community event, he said that increased raw material and energy prices looked set to remain high until at least mid-2022. The price of coal in China had more than tripled in 2021 before easing somewhat. He also raised the risks of growing global market uncertainty from an anticipated rise in interest rates in the US by the Federal Reserve and the spread of the Omicron variant of Covid-19.

US: Performance materials and technologies conglomerate Honeywell has entered into a collaboration with the University of Texas at Austin for the development of carbon capture systems. Honeywell has obtained a licence to use the university’s proprietary advanced solvent technology. The University of Texas at Austin will provide consulting services for the company as it seeks to develop a carbon capture system for industrial implementation using the technology. Honeywell will target ‘hard-to-abate’ CO₂ emitting industries such as cement to which to supply its system.

University of Texas at Austin McKetta Department of Chemical Engineering professor and Texas Carbon Management Program (TxCMP) lead Gary Rochelle said “We are thrilled that our decades of research has led to carbon capture technology that can significantly reduce carbon emissions. The licensing agreement with Honeywell enables us to commercially scale this in ways that can make major contributions toward zero emissions efforts to address global warming and to reduce pollutants in surrounding communities.”

Saint-Gobain has headed back to the attention of the cement sector this week with a deal to buy GCP Applied Technologies and a joint-venture with Cementos Argos in Colombia.

The first development carries on the French conglomerate’s move into the construction chemicals market. In October 2021 it acquired Chryso for Euro1.02bn. Other recent deals include agreements to buy Romania-based construction chemicals company Duraziv in May 2021 and Mexico-based IMPAC in October 2021. The GCP Applied Technologies deal is valued at Euro2.3bn with closure planned by the end of 2022. As Saint-Gobain put it, “The combined platform of Weber, Chryso and GCP offers customers a highly comprehensive portfolio of construction chemicals solutions with strong complementary geographic footprints.” It says that it sees the planned acquisition as the “logical next step” to expand its market share in admixtures and additives. It also reckons that Chryso and GCP Applied Technologies are complimentary geographically with Chryso positions mostly in Europe, Middle East and Africa and with GCP’s positions in North America, Asia-Pacific and Latin America. Once the deal goes through, Saint-Gobain will operate 75 production sites in the sector in 38 countries. The specialty building materials part of GCP will then be integrated into the CertainTeed subsidiary in North America.

The arrangement in Colombia concerns a joint-venture intended to focus on lightweight and sustainable building materials. Detail is scarce beyond an announcement by Cementos Argos on its website but the focus appears to be on bringing in Saint-Gobain’s mortar products and/or technology into the local market.

This move towards the lightweight building materials market may sound familiar. That’s because it is similar to what Holcim has also been doing recently, notably with its acquisition of Firestone Building Products earlier this year. It is interesting though to see both companies targeting the lightweight sector from different places. Both have also framed their intentions in terms of sustainability goals. Notably, Saint-Gobain has far lower carbon emissions than many cement producers. For example, Holcim reported sales of around Euro22bn in 2020 with absolute gross Scope 1 CO₂ emissions of 110Mt. Saint-Gobain reported sales of around Euro38bn with total Scope 1 CO₂ emissions of 7.9Mt.

At an investors event in October 2021 Saint-Gobain’s chief executive officer Benoit Bazin said that the group’s ambition was to become the worldwide leader in light and sustainable construction. Saint-Gobain’s business portfolio was diverse already before the GCP announcement, with its construction products focused on ‘lighter’ materials such as gypsum wallboard, insulation and glass. Its expansion into the construction chemicals market is of relevance to the cement industry directly through the supply of admixtures for cement and concrete. It’s also of interest to wider trends in construction because the acquisitions show another company chasing the lightweight building materials market. One expectation, as countries and companies have signed up to net zero carbon commitments, is that the demand for lightweight materials in the building envelope will grow and companies are reacting accordingly. The question at this stage is whether there is space in their growing market for all of them.

Iran/US: The Office of Foreign Assets Control (OFAC) says it has reached a settlement of around US$133,000 with an unnamed US citizen for violating Iranian Transactions and Sanctions Regulations by accepting payment in connection with a clinker deal. OFAC says the individual received payment in the US of around US$133,00 on behalf of an Iran-based company selling Iranian-origin clinker to another company for a project in a third country. Whilst OFAC considered that the individual knew they were flouting the US-based regulations it did view the individual’s apparent minimal benefit from the activity as a mitigating factor. The individual had previously submitted a licence request to OFAC in connection to other transactions but this was denied.

US: LafargeHolcim has acquired Marshall Concrete Products. The newly acquired subsidiary supplies concrete products and services in the Minneapolis/St Paul metropolitan area in Minnesota.

Chief executive officer Jan Jenisch said “This acquisition is another step in our Strategy 2025 to become the global leader in innovative and sustainable building solutions. We welcome the employees of Marshall Concrete Products and look forward to building on their strong customer service focus, which made them a partner of choice in the Twin Cities area for decades. This acquisition strengthens our presence in this strong growth market while contributing to Holcim’s overall strategy to expand our range of low-carbon products and solutions.”

US: The commissioners of Grayson County in Texas have agreed to take legal advice to try and stop Black Mountain building an integrated cement plant. The Herald Democrat newspaper has reported that the administration plans to launch its claim on the basis of air quality. The city councils of would-be host communities Dorchester and Sherman will contend the plans on the basis of other issues within their respective powers.

Sherman mayor David Plyler says that the plan would interfere with the area’s aim of attracting high-tech industry and investment. District court judge Bill Magers said “The county doesn't normally step into fight city battles, but the county feels that the proposed plant would be bad for the county overall.”

US: Cement companies in the US produced 57.8Mt of clinker in the first nine months of 2021, in line with production in the corresponding period of 2020. Cement shipments including imports rose by 4.2% year-on-year to 79.9Mt from 76.7Mt, according to the United States Geological Service (USGS). The lead cement consuming states by total shipments were Texas, California and Florida. Texas received 11.4Mt of cement (14% of the national total), down by 8.5% from 12.4Mt, California received 8.19Mt (10%), up by 7.8% from 7.6Mt and Florida received 5.4Mt (6.8%), up by 5.6% from 5.11Mt.

US: The Portland Cement Association (PCA) has announced the winners of its Energy and Environment Awards 2021. The awards recognise cement plants’ outstanding environmental and social efforts beyond what is required.

CalPortland’s Mojave plant in California won the Energy Efficiency award for an efficiency-increasing upgrade to its vertical roller mill, which included the introduction of a bottom hopper cone on each of its cyclones and a replacement of its mill fan housing. Argos USA’s Calera plant in Alabama won the Land Stewardship award for its conversion an 8.5ha lime kiln dust stockpile into grassland. The area now forms a vibrant ecosystem including wetland habitats. The producer also installed ponds with the additional purpose of stormwater management. Titan America’s Pennsuco plant in Florida won the Overall Environmental Excellence award for its conversion of the plant’s kiln to natural gas from coal use. The upgrade has also enabled the plant to begin to substitute alternative fuel (AF) in the kiln. The Pennsuco plant plans to produce 100% Portland limestone cement (PLC) by ‘as early as 2023.’

Other awards went to Roanoke Cement’s Troutville, Virginia, plant in the Environmental Performance category and to Cemex USA’s Victorville, California, plant in the Outreach category.

PCA President and CEO Michael Ireland said “The US’s cement manufacturers continue to focus on researching and developing new and innovative ways to reduce their environmental footprint. These accomplishments and industry commitment to carbon neutrality across the entire value chain demonstrate PCA members’ dedication to energy efficiency and a more sustainable future.”