22 June 2021

South Africa: PPC’s group revenue grew by 3% year-on-year to US$625m in its financial year to 31 March 2021 from US$607m in the same period in 2020. Group earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 16% to US112m from US$96.6m. Sales and earnings rose due to a recovery in cement sales, particularly outside of Zimbabwe, and general cost cutting.

Cement sales in South Africa benefited from retail demand in the inland region, while the coastal regions experienced a lagged recovery in demand. In Rwanda, the group’s Cimerwa subsidiary reported ‘strong’ cement sales due to the roll-out of government projects, retail demand and exports to the Democratic Republic of Congo. Operations in Zimbabwe were hampered by high inflation
and a shortage of foreign currency.

“Despite the difficult trading conditions in most of our markets, our businesses have benefited from a recovery in cement demand, resulting in improved financial performance,” said chief executive officer Roland van Wijnen. He added that the group has worked on capital restructuring and refinancing projects. It has concluded an agreement with PPC Barnet's lenders, which terminates their right to recourse to PPC, signed agreements for the sale of PPC Lime and an aggregates business in Botswana and agreed with its lenders in South Africa to defer the equity capital raise in South Africa from March 2021 to September 2021.

Czech Republic: Lafarge Cement reported its best income result ever in 2020. The subsidiary of Switerland-based LafargeHolcim saw its sales rise by around 9% year-on-year to Euro66.7m in 2020 and its pre-tax profit grew by 60% to Euro21.7m, according to the Czech News Agency. The company reported that its operational and staff costs grew due to the coronavirus pandemic but that it made sufficient savings to offset this. Electricity and carbon credit costs grew particular. The building materials producer exported around one third of its output to the German market in 2020.

Mozambique: Carlos Mesquita, the Minister of Industry and Trade, has said that the government was expecting the price of cement to fall following the opening of the Chinese-backed Dugongo Cement plant at Matutuine in Maputo province. He made the comment in response to a letter by other cement companies asking for government intervention to keep the price high, according to the Journal Notícias newspaper. They alleged that the newcomer is breaking competition legislation. The price of cement has reportedly dropped by as much as 70% since the new plant opened in May 2021.

“We, as a government, know what we’re doing,” said Mesquita. “We have been saying, with regard to cement and to other industries, that we have to assess the costs of production in order to arrive at adequate profit margins and a reliable final price.” He added that Dugongo Cement is the only cement producer currently producing clinker locally.

US: The California Senate has voted in favour of a proposed bill which will require the State Air Resources Board to develop a plan for the state’s cement producers to achieve net zero emissions of greenhouse gases by the end of 2045. A 40% reduction compared to 2019 levels would also be mandated by the end of 2035. The Natural Resources Defense Council (NDRC), an environmental advocacy group that is sponsoring the bill, has called for measures such as requiring public construction projects to use reduced-CO₂ cement and establishing purely performance-based specifications for legally defining cement to be adopted by the eventual strategy if the bill passes into state law. The proposed bill will next move to the California State Assembly as part of the local legislative process.

US: The state Land Use Commission of Hawaii has approved Hawaiian Cement’s licence application for expanded operations at Pohokea quarry in Wiakapu until 2035. The Maui News newspaper has reported that the commission has ordered the producer to hold consultations with the US Department of Land and Natural Resources with regards to the management of possible impacts on yellow-faced bees. The insects were declared an endangered species in 2016. The bees’ welfare formed the basis of a challenge by the conservationist Sierra Club Maui against the licence extension.

France: Social housing association Podeliha has awarded a cement supply partnership to Hoffman Green Cement Technologies. The subsidiary of Action Logement group operates in the Pays de la Loire region.

Managing directors Julien Blanchard and David Hoffmann said, “We are delighted with the signing of this partnership which is beneficial both for the current commercial dynamic of Hoffmann Green Cement and more generally for the development of low carbon solutions in the construction sector in the Pays de la Loire region. Podeliha is a benchmark leader in social housing in Pays de la Loire. The promotion of low carbon footprint cements without clinker among many players in the construction and ecosystem of Podeliha is a strong support for the development of Hoffmann Green in its region. This convention also proves that it is possible to reconcile social housing and high environmental performance in the construction sector.”

India: JSW Cement has launched its first commercial ready-mix concrete plant at Chembur in Mumbai, Maharashtra. The plant has a capacity of 120m3/hr across two production lines. It will serve construction in south and central Mumbai. The technology for the plant was supplied by Germany-based Schwing Stetter. The company plans to establish three further batching plants in Mumbai, covering Navi Mumbai, Thane and western Mumbai.

“JSW Concrete was successfully piloted at our captive plants at Dolvi and Vijaynagar and used in the expansion projects of JSW Steel. The experience gained from these projects gave us enough confidence to offer this unique concrete product to our large project customers,” said TN Viswanathan, Vice President of JSW Cement.

Poland: Switzerland-based LafargeHolcim subsidiary Lafarge Polska has launched Aggneo, a recycled aggregate recycled from demolition-sourced concrete. The producer says that Aggneo offers high consistency and a lower density than mined aggregates, resulting in material savings. Besides reducing waste, the product also lowers the carbon footprint of delivery by 66%, according to the company. The building materials producer aims to manufacture 1Mt/yr of recycled aggregated by 2030.