30 July 2021

Switzerland: Holcim’s sales rose by 17.4% year-on-year to Euro11.7bn in the first half of 2021 from Euro9.92bn in the same period in 2020. Its recurring earnings interest before taxation (EBIT) increased by 66% to Euro1.84bn from Euro1.12bn. Cement and concrete sales volumes grew by 13.5% to 99Mt and 15.6% to 22.1Mm³ respectively. Sales of all business segments grew in all regions on a like-for-like basis with the exception of aggregate sales in North America, where they fell slightly.

Jan Jenisch, the chief executive officer of Holcim, said, “In the first half of 2021 we set new records in recurring EBIT, free cash flow and earnings per share.”The group’s acquisition of Firestone Building Products officially closed at the end of March 2021 and the company has also made seven ‘bolt-on’ acquisitions so far in 2021, mainly in aggregate and ready-mixed concrete markets in Europe and North America. The group also agreed to divest operations in Zambia, Malawi and the Indian Ocean in the reporting period and these are all expected to complete by the end of 2021.

Mexico: Cemex sales grew by 17% year-on-year to US$7.27bn in the first half of 2021 from US$5.98bn in the same period in 2020. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 38% to US$1.50bn from US$1.09bn. Cement and concrete sales volumes increased by 16% to 34Mt and 9% to 24.1Mm³. Growth was reported in all regions, often due to recovery from coronavirus-related lockdowns in the first half of 2020.

“Quarterly highlights include the achievement of our long-time leverage goal, a 39% increase in quarterly EBITDA, and our announcement of industry leading Climate Action targets,” said Fernando A González, the chief executive officer of Cemex. “Our growth in the quarter, which exceeded pre-pandemic levels, gives us confidence that this performance is sustainable in the second half of the year.”

Mexico/US: GCC plans to spend US$450 - 500m on upgrade projects to its cement business over the next three years to 2024. It is considering building a new 1.1Mt/yr clinker production line at an unnamed existing plant but the board of directors has yet to make a final decision. Other projects include strengthening the group’s cement distribution network in Minneapolis, Minnesota and Utah in the US. This would also include building two new cement terminals. A debottlenecking project is being planned at the Samalayuca plant in Chihuahua state. This would increase the plant’s production capacity by 0.2Mt/yr and is scheduled for completion by the end of 2022. A final project is also scheduled for the Chihuahua plant to improve operational efficiency, and enhance social and environmental responsibility.

In earnings conference call notes for the second quarter of 2021 the cement producer reported for the US: “Every kiln at GCC is up and running; for practical purposes, our system is sold out.” It also noted bottlenecks in its grinding, storage and shipping installed capacity.

India: Shree Cement is ready to start building a 3Mt/yr grinding plant at Purulia in Bengal. The project has an investment of around US$80m, according to the Times of India newspaper. The cement producer has already purchased the land for the unit and intends to start work on building it from August 2021. It will be the company’s first production plant in the state.

Ghana: Ghacem plans to spend US$100m on building a new cement plant at Kumasi in the Ashanti Region. The new 1.5Mt/yr unit at Kumasi is intended to serve central and northern regions of the country, according to the Daily Graphic newspaper. The plant will use calcined clay as an additive. Construction is expected to take 18 months with commissioning planned for the first quarter of 2023.

The subsidiary of Germany-based HeidelbergCement is also planning upgrades to its grinding plants at Tema and Takoradi. The work at the Tema will include the addition of a new grinding and packing plant and an upgrade of existing equipment. It is expected to be completed by the end of 2021. Work at Takoradi will then follow afterwards.

South Africa: PPC is operating at 75 - 80% of its active production capacity despite rising demand for cement. Njombo Lekula, the managing director of Southern Africa - PPC, told the Cape Times newspaper the company’s latest strategy and adaptation to the coronavirus pandemic had improved its operational flexibility. He said that it can ‘switch on’ plants to respond to demand, that its ‘Three Mega Plant’ strategy allows it to cope for periods when supply outstrips demand and that the company has mothballed plants at present. He added that PPC is not using 35% of its own capacity at the moment. Lekula also estimated that the local sector as a whole it not using 40% of its production capacity.

Denmark/Germany: FLSmidth has agreed to buy ThyssenKrupp Industrial Solutions’ mining business (TK Mining) for Euro325m. FLSmidth says it hopes that the acquisition will allow it to create a global mining technology provider with operations from pit to plant. The purchase is also expected to benefit FLSmidth’s aftermarket business. The transaction is expected to complete in the second half of 2022 and it will be subject to approval by competition authorities.

TK Mining is a supplier of solutions for mining systems, material handling, mineral processing and services. It is present in 24 countries with engineering and global service centres, and has close to 3400 employees. In 2020 it reported sales of around Euro780m with around one-third deriving from services.

“TK Mining and FLSmidth are a perfect match, and I am proud to announce this agreement to join forces. This is a truly transformational deal allowing us to accelerate our growth ambitions in mining by creating a stronger talent pool and one of the world’s largest and strongest suppliers to the mining industry. Our complementary customer base and improved geographic coverage will offer a strong value proposition to our customers. There is a significant opportunity in transforming TK Mining towards FLSmidth’s business mix and model in which higher margin service business makes up about 60% of revenue. I look forward to welcoming TK Mining’s management team and talented staff to our organisation,” said Thomas Schulz, group chief executive officer of FLSmidth.

Japan: Mitsubishi Materials and Ube Industries plan to merge their respective cement businesses and related businesses on 1 April 2022. The new successor company will be temporarily known as C Integration Arrangement before officially becoming known as Mitsubishi UBE Cement Corporation. However, the new name will be subject to input by shareholders.

The two cement producers first announced discussions in early 2020 about a potential merger of their cement businesses and related concerns. They decided to explore merging their cement operations following slowing demand and increased costs due to higher energy prices. They have worked together since 1998 in a joint venture called Ube-Mitsubishi Cement, which integrated their cement sales and logistics operations.

US: The death of a maintenance worker has been reported at Buzzi Unicem USA’s Hercules Cement at Stockertown in Pennsylvania. The cause of the fatality has not been released pending an investigation by state authorities and the Mine Safety and Health Administration, according to the Express Times newspaper. The incident occurred on 26 July 2021.