Australia: AdBri’s consolidated revenues reached US$1.13bn in 2021, corresponding to a 7.6% year-on-year rise from US$1.05bn. Cement sales constituted 39% of the group’s revenues and rose by 12% year-on-year. Earnings before interest and tax (EBIT) were US$128m, down by 0.4% from US$129m. The company recorded a net profit after tax of US$85.7m, up by 3.1% from US$83.2m in 2020.

Chair Raymond Barro said “The many challenges of 2021 revealed the strength of our people and the depth of their skills, capabilities and experience. On behalf of the board, I would like to commend (managing director and CEO) Nick Miller, his executive leadership team and all our people for their commitment, dedication and resolve as they have continued to deliver for our stakeholders.”

Indonesia: Indonesia Power says that it has processed coal fly ash and bottom ash from its Adipala power plant into building materials, including cement-free ready-mix concrete, concrete blocks, paving slabs and refractory casts. The energy company also supplies ash to mine reclamation and water neutralisation projects, according to LKBN Antara News. In total, it reused 135,000t of ash by-products in 2021. The company generates 85,000t/yr fly ash and bottom ash.

Sinar Tambang Arthaestari has previous targeted Indonesia Power’s ash products for use in its cement production.

Sri Lanka: Lanwa Sanstha Cement says that it will commission its 2.8Mt/yr Hambantota grinding plant in Mirijjawila Export Processing Zone in early March 2022. The project had previously been scheduled for delivery in January 2022. Lanka Business Online News has reported that China Merchant Ports subsidiary Hambantota International Port Group agreed to supply a 2.4km conveyor belt and two ship unloaders in November 2021. After commissioning the grinding plant, Lanwa Sanstha Cement will proceed with Phase 2 of its work to increase the facility’s capacity to 4Mt/yr.

US: Lafarge North America has reported that its Paulding, Ohio, plant achieved 99% alternative fuel (AF) substitution in its cement production, up from 95% in past years. The operator said that the fuel change saved 205,000t of CO₂ emissions in 2021.

India: The National Green Tribunal (NGT) has quashed UltraTech Cement’s environmental clearances for its Babarkot and Jafrabad limestone mines in Gujarat’s Amreli District, the Indian Express newspaper reports. The tribunal said that, as a cluster spanning over 50ha, extensions to the mines were subject to Ministry of Environment, Forestry and Climate Change (MEFCC) approval. This was not granted at the time of the latest expansions’ approval by the State Environment Impact Assessment Authority in 2018.

Germany/Italy: Italy-based Buzzi Unicem has launched its CGreen reduced-CO₂ cement on the German and Italian cement markets. The product uses alternative raw materials to partially replace clinker and also optimises grinding and mixing conditions through the use of novel specialist additives. In Germany, the available range of CGreen cements will consist of Dyckerhoff Eco Comfort cement and Dyckerhoff Cedur cement.

Italy cemeny chief operating officer Antonio Buzzi said "The ecological transition calls for us to adapt our behaviors and actions in order to neutralise our carbon footprint. This transition implies the partial or total redesign of production processes, distribution systems and consumption patterns, heralding the start of a potential industrial revolution and a change in our habits."

US: Thyssenkrupp has opened its new Reno, Nevada, service centre to customers. The centre will serve cement customers in the Western US and Canada.

Thyssenkrupp Industrial Solutions president Mark Terry said “We want to be where our customers need us! Thyssenkrupp already has numerous service centres distributed around the world. With an understanding of our local markets, and clientele, we are able to react, deliver faster and reduce transport time as well as costs. The service centre in Reno is another milestone for us here in North America!”

International tensions reached a new high this week with Russia’s formal recognition of the breakaway Donetsk and Lugansk regions in eastern Ukraine and its decision to deploy troops accordingly. However, what of the local cement industry in Ukraine going into the current crisis?

Ukrcement, the Ukrainian Cement Association, says that its members reported a record 11Mt of cement production in 2021. Clinker production totalled 8.11Mt during the same period. The cement figure is close to Ukrcement’s forecast in the autumn of 2021 of 11.5Mt, a rise of 17% year-on-year from 9Mt in 2020. At that time association head Pavlo Kachur added that the local cement industry operated at 66% capacity utilisation in the first nine months of 2021.

The big industry story locally was the start of tariffs on cement imports from Turkey that was announced in September 2021. After much complaining by local producers and an investigation the year before in 2020 the Interdepartmental Commission on International Trade (ICIT) introduced anti-dumping duties of 33 - 51% on cement imports from Turkey for five years. Other than this the usual energy preoccupations have been present in Ukraine. In an interview with Interfax in November 2021, Pavlo Kachur expressed alarm that the price of coal had tripled from the start of 2021 to August 2021. At the same time he explained that the biggest driver of cement consumption was infrastructure projects.

CRH, the largest producer locally, rebranded its subsidiary as Cemark in November 2021 with the intention to start shipping cement bags with the new marking from January 2022. It operates three integrated plants at Mykolaiv, Podilsky and Odessa. It reported that its local operating profit grew year-on-year in 2020, despite a “challenging pricing environment” as cost savings initiatives and lower fuel and logistics costs resulted in improved performance. In September 2021 CRH said that sales were up due to growing cement sales volumes resulting from market demand. Although once again it complained about competitive pricing forcing it to lower its prices. Despite this though lower maintenance costs and cost controls had boosted its operating profit.

Buzzi Unicem runs two integrated cement plants in Ukraine, Volyn and Yugcement, as well as terminals at Kiev and Odessa through its Dyckerhoff Ukraine subsidiary. In 2021 it noted recovery in the construction sector, helped by government stimulus and the introduction of tariffs on imports from Turkey. It said that prices fell in the first half of the year before recovering in the second half. Ready-mixed concrete output showed more growth. Dyckerhoff Ukraine’s net sales rose by 9.4% year-on-year to Euro127m in 2021 even despite negative currency exchange effects.

As for the other producers, NEQSOL Holding Ukraine filed an application to the Antimonopoly Committee of Ukraine (AMCU) in October 2021 to acquire a stake in Ivano-Frankivskcement. Azerbaijan-based NEQSOL Holding also operates the Norm Cement plant near Baku in Azerbaijan. HeidelbergCement used to operate in Ukraine, including the Amvrosiyivka Plant in the contested part of Donetsk region, but it sold up in 2019 to local investors. Its two former integrated plants now operate under the Kryvyi Rig Cement brand. Finally, Russia-based Eurocement runs two plants in Ukraine, at Balakleya in Kharkiv region and Kramatorsk in Donetsk region, under its Balcem subsidiary, which formed in 2019. However the status of the second plant is currently uncertain. Balcem said that the Balakleya plant resumed full cycle production in March 2021 when it restarted kiln two. Kiln one was restarted in June 2021 after a down period since 2008. The plant currently has a production capacity of around 1Mt/yr.

Ukrcement’s Pavlo Kachur said that the cement market in Ukraine was experiencing a positive period in November 2021. Whether this continues is very much in the balance given events in the east of the country. The wider implications for cement producers in the rest of Europe and Russia are the fallout from the economic warfare between both sides. A number of countries have started to react to Russia’s actions with the US, European Union, UK, Japan and Australia announcing economic sanctions and Germany halting approval of the Nord Stream 2 gas pipeline. However, Russia supplies a significant share of Europe’s gas supply. All of this could disrupt energy supplies and force input costs up. This has already been reflected in higher oil prices.

Meanwhile, one aspect of the current situation to watch is how multinational cement producers with a presence in Russia will cope. Moving money in or out of the country is likely to become harder. HeidelbergCement told Reuters this week that it did not expect any major impact on its Russian operations, even if the conflict escalated. Its three cement plants supply local markets and do not export outside of Russia, it added. Other companies straddling the potential sanctions divide include Holcim, Buzzi Unicem and Eurocement.

The crisis continues.

China: Nanjing Kisen International Engineering has secured a collaboration agreement with Canada-based Delta CleanTech for the implementation of the latter’s carbon capture and storage (CCS) systems at two China National Building Material (CNBM) cement plants. SCMP News has reported that there is a one-time licencing fee - which is not paid by Nanjing Kisen International Engineering but is traditionally paid by the CO₂ capture plant customer - of 4.5 - 5% of capital costs. Installations cost upward of US$40m, depending on capacity.

There are currently 40 operational or upcoming CCS installations nationally with a total capture capacity of 3Mt/yr, chiefly in the oil, coal chemicals and energy sectors.The Chinese Academy of Environmental Planning has forecast that China’s cement industry CCS demand will reach 200Mt/yr by 2060. Delta CleanTech president Jeff Allison said that current challenges for Chinese cement producers seeking to reduce their CO₂ emissions include difficulties disposing of captured CO₂ and a lack of rewards and penalties around emissions control beyond the basic national efficiency requirements.

Nanjing Kisen International Engineering previously launched its first 155kg/day pilot CCS study in partnership with the Canada-based International CCS Knowledge Centre in July 2021.

Mexico: The Mexican Chamber of the Construction Industry (CMIC) has voiced cement price concerns following the introduction of a new environmental tax on mining activity in the state of Nuevo León. Cemex operates a quarry in the state, and has resultingly experienced a rise in the cost of its cement production. The El Norte newspaper has reported that the producer’s Monterrey, Nuevo León, cement plant supplies cement across northeastern Mexico.

CMIC also lobbied the government to begin awarding public works contracts to private investors instead of the Mexican armed forces. It argued that this would help to generate jobs.