15 November 2023

Tanzania/Uganda: Switzerland-based Holcim has signed agreements to sell Uganda-based Hima Cement and Tanzania-based Mbeya Cement. Local industrial conglomerate Sarrai Group will acquire Hima Cement for US$120m, while local oil importer Amsons Group will acquire Mbeya Cement for an undisclosed sum.

Holcim’s Asia, Middle East & Africa regional head Martin Kriegner said “These divestments advance our strategy to consolidate our leadership in core markets as the global leader in innovative and sustainable building solutions. With the Sarrai Group and Amsons Group, we are pleased to have found strategic and trusted partners who are best positioned to develop these businesses in the long term.”

Colombia: Cementos Argos’ sales of cement declined by 3.4% year-on-year to 11.9Mt during the first nine months of 2023, from 12.3Mt in the first nine months of 2022. Volumes dropped by 0.9% to 4.61Mt in the US, by 3.6% to 4.35Mt in Colombia and by 6.6% to 2.97Mt in Central America and the Caribbean. Nonetheless, its revenues rose by 16% year-on-year, to US$2.47bn from US$2.14bn. This resulted in earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$506m, up by 37% year-on-year.

For the full year 2023, Cementos Argos raised its EBITDA forecast to US$617 – 630m, compared to a previous forecast of US$580 – 605m. It expects to invest US$200 – 220m in capital expenditure throughout the year – US$90 – 99m of it on the construction of new capacity.

Australia: The government has begun consultations with affected parties over the possible implementation of a carbon border tax on imports of goods from heavy industries, including cement production. The Herald Sun newspaper has reported that manufacturers’ associations in Australia have welcomed the possible change to emissions laws.

Brazil: Votorantim Cimentos’ board of directors has approved the issuance of US$180m-worth of non-convertible debentures. The producer says that it will use funds raised thereby as collateral for a financial securitisation operation of real estate receivables.

US: Holcim US has unrolled its Holcim branding in the Atlanta Metropolitan Area in Georgia. The producer operates cement terminals at Cartersville, Duluth and Covington.

Southeast regional sales manager Lee Amick said "The rebrand signifies Holcim’s unwavering commitment to Atlanta construction and building companies, along with the greater community that has come to know us as a trusted partner. We're looking forward to building on our long-standing reputation for reliability, dependability, and assurance, now further rooted in sustainability and a profound dedication to environmental responsibility."

Russia: Soyuzcement has warned the government that the cost of cement could rise by up to 30% year-on-year in 2024 due to mounting energy, logistics and staffing costs. The national cement manufacturing union has informed various departments and agencies - including the Ministry of Economy, the Ministry of Industry and Trade, the Ministry of Construction and the Federal Antimonopoly Service (FAS) - that this price rise will follow a 23 - 30% production cost inflation reported in 2023, according to the Kommersant newspaper. Other contributing factors have included negative currency exchange effects leading to a 20% rise in the cost of certain imported equipment items as well as logistic issues stemming from a shortage of drivers and declining fleet levels. Separate analysis by Kommersant estimates that the rising cost of cement in 2023 led to a 10 - 15% increase in the overall cost of construction in 2023.