16 February 2023

Germany: Holcim has signed an agreement to acquire FDT Flachdach Technologie (FDT), a leading manufacturer of thermoplastic roofs. FDT has a presence in European markets, with net sales of Euro50m in 2022. Holcim says that, as a technology and sustainability leader in its sector, FDT will complement Holcim’s integrated roofing product range and strengthen the geographical footprint of the business.

With this acquisition, Holcim roofing systems will exceed US$4bn in net sales ahead of schedule. Chief executive officer Jan Jenisch said “By acquiring FDT we are further expanding our Solutions & Products business to become a global leader in roofing systems. Due to its leadership in technology and sustainability, as well as its strong customer relationships, FDT will be a cornerstone of our continued expansion into the most attractive European roofing markets. I am excited to further grow and strengthen FDT’s business and welcome all 180 employees to the Holcim family.”

India: The Competition Commission of India (CCI) has approved a US$684m deal related to Dalmia Cement’s acquisition of cement, clinker and power plants of Jaiprakash Associates Limited (JAL).

Dalmia Cement says that the acquisition - which includes 9.4Mt/yr of cement capacity, 6.7Mt/yr of clinker capacity and 280MW of power generation capacity - will allow it to expand its footprint into the central region and transform into a pan-Indian company. More than half of JAL’s cement capacity is in central India. Dalmia Cement anticipates reaching a cement production capacity of 75Mt/yr by the 2027 fiscal year and, due to other expansion plans, 110 - 130Mt/yr by the 2031 fiscal year.

This latest transaction, once approved by the relevant regulators, will see the complete exit of JAL from the cement business.

India: Ambuja Cements, a subsidiary of Adani Group, has been declared as the 'preferred bidder' for the Uskalvagu limestone block in Odisha. An e-auction was conducted by the state government for the block, situated in Malkangiri district. Adani Group has not disclosed the amount that it bid for the block, but said it covers 547 hectares with estimated limestone resources of about 141Mt.

The company must now obtain the statutory licences and permits related to mining operations to be declared a ‘successful bidder’ and subsequently enter into a ‘Mine Development and Production Agreement (MDPA)’ with Government of Odisha.

US: Martin Marietta Materials posted lower revenue in the fourth quarter of 2022 as a slowdown in the housing market and bad weather in Texas reduced shipments of materials, especially concrete. While the company reported a net income for the fourth quarter of US$184m, a 17% rise year-on-year compared with US$157m in the fourth quarter of 2021, its revenue fell to US$1.48bn from US$1.50bn. This was partly due to a 1.7% fall in building material revenues. Cement shipments fell by 11%, mostly due to wet and cold weather in Texas, though prices rose by 21%. Ready-mixed concrete revenue fell by 35% due to the sale of the company's Colorado and Central Texas ready-mixed concrete business.

Puerto Rico: Cement sales were 46,750t in January 2023, a 3.8% rise year-on-year compared to January 2022. Cement production in the territory came to 31,930t in January 2023, a 58% rise. This means that imports fell to 14,820t, 32% of all cement consumed. In January 2022 there were 24,842t of imports, representing 55% of all cement consumed in Puerto Rico.

Nigeria: Ifeanyi Chukwuma Odii, the People’s Democratic Party’s (PDP) candidate for governor of Ebonyi State, has pledged to revive the Nigeria Cement Factory at Nkalagu if elected in the forthcoming election. Odii said the successive administrations promised to revive the factory but failed to do so. Elections will be held on 11 March 2023.

Odii said, “As a governor, I will make sure the cement factory works, because many have promised to revamp the Nkalagu cement factory, but they failed. They failed because they lack the capacity. They failed because they are not entrepreneurs. I’m going to turn things around in Ebonyi state.”

Kenya: Five cement producers are opposing an increase in import taxes on clinker that has been championed by National Cement owner Narendra Raval Guru. They claim that he has ‘been given the ear’ of the country’s current administration and is using his position as a domestic clinker manufacturer to disadvantage cement companies that grind imported clinker. The company is reportedly seeking an increase on the duty from 10% to 25%.

The five cement companies - Rai Cement, Bamburi Cement, Savannah Cement, Ndovu Cement and Riftcot – argue that this would create an unfair playing field in the local cement sector. The say that two manufacturers, National Cement and Mombasa Cement, would dominate due to their clinker manufacturing plants. Mombasa Cement has not stated a position in the dispute.

Saudi Arabia: Yamama Cement Company recorded net profits after Zakat and tax worth US$68.2m in 2022, a year-on-year increase of 132% from US$41m in 2021. Its revenues for 2022 amounted to US$272m in 2022, up by 39% from US$196m in 2021.