Global Cement News

China: Cement production volumes grew by 6.8% year-on-year to 1.05Bnt in the first half of 2019. Profits from the sector rose by around 20% to US$11.6bn, according to the China Securities Journal and the Xinhua News Agency. This growth has been attributed to buoyant real estate and infrastructure markets. The trend is expected to continue into the second half of the year with even greater profits anticipated. In 2018 the sector reported a record high profit of US$22.5Bn.

UK: The Institutional Investors Group on Climate Change (IIGCC) has called on European building materials companies to take steps to fight climate change or face commercial extinction. Recommended changes from its new ‘Investor Expectations of Companies in the Construction Materials Sector’ report have been sent to the heads of LafargeHolcim, HeidelbergCement, CRH and Saint-Gobain. The report informs investor engagement with other construction material firms on the initiative’s global list of 161 focus companies. Investment bodies in the group represent US$2Tn in assets, assets under management and under advice.

“The cement sector needs to dramatically reduce the contribution it makes to climate change. Delaying or avoiding this challenge is not an option. This is ultimately a business-critical issue for the sector,” said Stephanie Pfeifer, the chief executive officer (CEO) of the IIGCC. “Major economies such as the UK and France are increasingly adopting economy-wide net zero emission targets. The cement sector needs to get ahead of the profound transformation their sector faces by addressing barriers to decarbonisation in the short- to medium-term if companies are to secure their future.”

Key details set out in the ‘Investor Expectations’ report include becoming carbon neutral by 2050. Companies are expected to set short, medium and long-term science-based targets to reach this goal. Building material companies should be public policy transparent and advocate for the Paris Agreement, they should implement a ‘strong’ governance framework assigning specific responsibility for climate change to a board committee or board member and they should provide enhanced corporate disclosure in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

The IIGCC recognised the steps HeidelbergCement in particular has taken in already having committed to meeting key aspects of the investor expectations it has outlined. CRH, LafargeHolcim and Saint-Gobain have been encouraged to follow suit, given the ‘significant’ role they play as European-based multinationals. The group also praised the ambitious targets set by India’s Dalmia Cement to become carbon negative by 2040.

UAE: Al Ain Cement and National Cement have signed a clinker offtake deal. Al Ain Cement, a subsidiary of Arkan Building Materials, will supply clinker to National Cement’s grinding plant in Abu Dabi, according to Gulf Today. The agreement is also intended to help both companies reduce production and logistics costs. The two companies have a combined production capacity of 3.1Mt/yr of clinker and 6.6Mt/yr of cement.

Nepal: The parliamentary Public Accounts Committee (PAC) has accused the Huaxin Cement Narayani plant being built at Benighat Rorang Rural Municipality in Dhading of ignoring the project’s Environment Impact Assessment (EIA) report. Members of the committee visited the site two months ago following complaints, according to the Republica newspaper.

It found that an 11km access road to the site had encroached upon a river. The company had used sand and stones from the river and used the materials to build the road. The road’s construction has also disrupted local agricultural irrigation canals. A flood at the site of the cement plant was reported in July 2019. An irregular deal to lease land to the joint venture was also reported.

Algeria: The value of clinker exports grew to US$30m in the first five months of 2019 from US$3.2m in the same period in 2018. The country is hoping to increase its exports of cement and clinker to around US$500m/yr by the mid-2020s, according to Télévision Algérienne. It is facing a significant production overcapacity with the manufacturing base expected to reach 40.6Mt/yr in 2020. Consumption was 26Mt in 2016.