01 February 2023

Mexico: GCC recorded full-year sales of US$1.17bn in 2022, up by 13% year-on-year from US$1.04bn in 2021. The producer’s earnings before interest, taxation, depreciation and amortisation (EBITDA) also rose, by 7.4% year-on-year to US$363m from US$338m.

The producer increased its cement sales volumes by 2.9% in the US, while its cement volumes dropped by 2.9% in Mexico. Prices rose across both regions, by 12% and 13% respectively. An increased cost of production and increased freight and maintenance costs partly offset the rise.

GCC chief executive officer Enrique Escalante said “GCC’s focus on operational excellence enabled us to deliver strong results in an unprecedented market environment. We continue to anticipate challenges, mitigating their potential effects while also capitalising on important opportunities. Our team will continue to adapt to the evolving operating dynamics in the year ahead, as these will present further occasions for us to again leverage our exceptional competitive advantages.”

Oman: Aditya Birla Group subsidiary UltraTech Cement signed an agreement with Seven Seas Company to acquire a 70% majority stake in Duqm Cement on 30 January 2023. ET Now News has reported that UltraTech Cement’s UAE-based subsidiary Cement Middle East Investments concluded the deal in the form of a share sale and purchase agreement. the parties expect to complete the transaction in late April 2023.

Nigeria: China based Sinoma International Engineering has signed a US$585m contract to build an integrated cement plant at Itori in Ogun state. The plant will have two 6000t/day clinker production lines covering limestone crushing to cement packaging and shipping. The contract becomes effective once Sinoma International Engineering receives a geological survey, payment and performance guarantees and a 12% advance payment. Clinker production is scheduled for two years after the contract starts with final commissioning expected a few months later.

Dangote Cement’s Itori Cement subsidiary was established in 2016 at the same time work started on building the 6Mt/yr Okpella plant in Edo state. The Okpella plant started producing cement in 2021.

Iran: The Iranian Cement Industry Employers Association (CIEA) has warned that 50 cement plants are ‘on the verge of closure’ in early 2023. Asia News has reported that plants’ electricity supply has dropped by 50%, while their gas supply has dropped by 80%. Low winter temperatures have diverted the utilities supplies towards heating homes. Cement producers outside of urban areas are licensed to use fuel oil to power their operations. This would increase their costs, however, due to high transport fees.

Qatar: Qatar National Cement Company (QNCC) recorded full-year sales of US$195m in 2022, down by 14% year-on-year from US$226m in 2021. The producer recorded a net profit for the year of US$62.4m, up by 1.2% from US$61.7m.

US: Cemex has ordered a type 10 000 S mobile ship unloader from Sweden-based Bruks Siwertell for use at Belle Chasse in Louisiana. The ship unloader was delivered towards the end of 2022, has a continuous rated cement handling capacity of 300t/hr and can discharge vessels up to 10,000dwt.

Japan: Sumitomo Osaka Cement has started using electricity generated from biomass to power its head office in the Shiodome Sumitomo Building in Tokyo. The electricity is generated at the company’s company's Tochigi biomass power plant in Sano and then fed into the general grid. The cement producer and the country are using a feed-in-tariff (FIT) non-fossil energy certificate system to track the use of electricity generated from non-fossil fuel generated sources.

France: Private equity investment company Platinum Equity has completed its acquisition of Calderys from Imerys. It announced in July 2022 that it had agreed to pay around Euro930m to buy Imerys’ High Temperature Solutions business (HTS). Michel Cornelissen will remain as the president and chief executive officer of the refractory manufacturer.

In December 2022 Platinum Equity said that it has signed a definitive merger agreement to buy HarbisonWalker International (HWI), a supplier of refractory products and services in North America. the move is intended to create a global refractories supplier. The HWI deal is expected to complete in the first half of 2023 subject to closing conditions and regulatory approval.

Venezuela: The Cement Workers Federation (Fetracemento) says that workers in the Venezuelan cement industry are subject to ‘constant persecution and intimidation.’ Fetracemento president Orlando Chirinos said that workers face arbitrary suspensions and that the industry even relies on forced labour. Chirinos said that labour inspectorates do not pursue claims by workers due to political pressures.

Local press has reported that protests by workers in January 2023 contributed to a drop in cement capacity utilisation in Venezuela to 10%.

Switzerland: A civil legal case against Holcim made by four residents of the Indonesian island of Pari has filed a formal complaint against the cement producer on behalf of the entire island at the Cantonal Court of Zug. The civil case was started in July 2022 in response to climate change-induced flooding of the island, according to Reuters. Informal negotiations followed in October 2022 but this failed, according to a representative of Swiss Church Aid. Environmental organisation Walhi claims that this latest action is first formal civil proceeding in Switzerland against a company for its contribution to climate change

Walhi says that the plantiffs are demanding ‘proportional compensation.’ The European Center for Constitutional and Human Rights (ECCHR) is also supporting the islanders. A spokesperson for Holcim said that climate change was a "top priority for Holcim at the heart of our strategy".