26 November 2024

US: Quikrete has entered into a definitive agreement to buy Summit Materials for a total enterprise value of US$11.5bn. The deal will add Summit Materials’ aggregates, cement and ready-mixed concrete business to Quikrete’s concrete and cement-based products business to create a vertically integrated business in North America. Quikcrete’s acquisition offer was first revealed in late October 2024. The transaction is expected to close in the first half of 2025 subject to shareholder approval at Summit Materials, regulatory approvals and other customary conditions.

Will Magill, CEO of Quikcrete, said “We are thrilled to welcome Summit into the Quikrete family.” He added, “This acquisition represents a significant milestone in our journey to expand our capabilities and geographic presence.”

Colombia-based Cementos Argos is Summit Materials’ largest shareholder with a 31% stake. It has agreed to vote all of its shares in Summit’s common stock in favour of the transaction. Cementos Argos says will generate a cash value of around US$2.9bn from the sales of its shares.

Italy: Construction company Cobar has signed an expression of interest with Heidelberg Materials Italia to use its EvoZero net-zero carbon captured cement product. Cobar’s CEO Vito Matteo Barozzi signed the agreement with Heidelberg Materials Italia’s CEO Stefano Gallini. The subsidiary of Germany-based Heidelberg Materials describes Cobar as one of its main customers and said that the deal confirms the progress that low-carbon products are making in the construction market.

Heidelberg Materials launched its EvoZero cement product in late 2023 and its EvoBuild low-carbon and circular products range in early 2024. EvoZero cement will be available in two versions, depending on the customer location. EvoZero Carbon Captured Brevik will be manufactured at the Brevik cement plant in Norway, where the company has built a carbon capture unit. Elsewhere in Europe Heidelberg Materials will sell EvoZero Carbon Captured, where the cement will be manufactured at a local plant and sold with a verifiable carbon proof using mass-balancing and book-and-claim systems.

Philippines: The Cement Manufacturers Association of the Philippines (CeMAP) and Eagle Cement Corporation have backed an order by the Department of Trade and Industry (DTI) to investigate alleged excessive imports of cement. In a statement the parties said that the investigation ordered by DTI Secretary Cristina Roque is a critical step that underscores the government’s commitment to ensuring fair competition, according to the Manila Bulletin newspaper. They added that the move would protect the local cement industry from undue harm caused by imports.

CeMAP previously submitted its position paper to the DTI on 12 November 2024 on the issue of imports of cement. Eagle Cement has backed the Federation of Philippine Industries in its position on the need to protect the domestic cement sector.

Data from the Bureau of Customs show that cement imports rose by 5% year-on-year to 6.2Mt from January to October 2024. 94% of the imports originated from Vietnam with 5% from Japan and 1% from Indonesia.

Iran: Ali Akbar Alvandian, the Secretary of the Cement Industry Employers' Association, says that cement plants have been forced to cut production due to a shortage of gas. He said that plant’s near cities had been forced to halve production, according to comments made to the ILNA news agency. Plants in the countryside, however, have been able to cope better by using mazut heavy fuel oil. In addition cement companies were also negatively affected by electricity rationing over the summer. At its peak, in August 2024, 70% of kilns were closed.

Despite these issues there have been no significant changes in the price of cement due to the country’s use of commodity exchanges. However, exports have decreased by 17% year-on-year in the first seven months of the year. Most of the country’s clinker is exported to Iraq, Kuwait and India. The main destinations for cement include Afghanistan, Russia, Kuwait, Armenia, Turkmenistan and Pakistan.

Ghana: Real estate companies say that the price of cement has continued to rise despite a new law intended to regulate them. A so-called legislative instrument (LI) was introduced in September 2024, according to CitiNewsroom. However, Samuel Amegayibor, the Executive Secretary of the Ghana Real Estate Developers Association, said at a property forum, “Since the LI on cement was passed, so far as we the users of cement are concerned, we haven’t seen anything different. Prices have gone up even from the day it was launched, it has gone up further.”

Originally the proposed law required that cement manufacturers should seek government approval before setting prices. However, this clause was removed following lobbying by cement producers and others. The LI was eventually passed after 21 parliamentary sittings.