30 July 2024

Germany: Heidelberg Materials has released its financial results for the second quarter of 2024. It noted a 2% year-on-year decline to €5.5bn, down from €5.6bn in the same period in 2023. However, the company achieved a 5% increase in its result from current operations (RCO), which increased by €40m to €971m. Heidelberg Materials stated that it experienced a moderated slowdown in volumes across all business lines compared to the first quarter of 2024 due to weak activity in the construction sector and adverse weather conditions. The company maintains its 2024 financial year RCO forecast to be between €3bn and €3.3bn.

Ukraine: The Antimonopoly Committee of Ukraine (AMCU) has stipulated that CRH must transfer 25-28% of shares in Dyckerhoff Cement Ukraine to an independent investor as a condition for its purchase of two Buzzi cement plants. In June 2023, CRH agreed to acquire parts of Buzzi's business in Eastern Europe, including the Ukrainian assets Volyn-Cement and YUGcement. The European Bank for Reconstruction and Development is expected to be the investor receiving the shares, following a mandate letter signed with CRH in December 2023. Additionally, CRH will be required to report regularly to the AMCU on production and pricing for the next five years and is expected to invest in the modernisation and expansion of the acquired plants while retaining jobs and improving working conditions.

South Africa: PPC has warned of increased risks from substandard cement in the South African market, advocating for state intervention to protect the local industry from unfair competition. The broader South African cement industry continues to face challenges from dumped imports and locally blended variants, with latest Cement Import Montior research from March 2024 cautioning that local cement cement producers may be forced to mothball plants, putting thousands of jobs on the line as the number of cheap cement imports rises. PPC plans to engage with the South African Bureau of Standards for stricter compliance testing. Its recovery strategy includes exiting non-core businesses and major structural adjustments, aiming for tangible results in two years but resulting in possible in job cuts.

Vietnam: Vietnam produced 104.1Mt of cement in the first seven months of 2024, marking a 1% increase year-on-year, as reported by the General Statistics Office (GSO). In July 2024, the country's cement output is estimated at 15.2Mt, a rise of 7% compared to July 2023.

Germany: The University of Trier is transforming post-consumer materials into ‘ecological’ cement through a new research project that aims to find sustainable alternatives for the construction industry. The project involves using low-CO₂ industrial post-consumer materials as alternative cement binders, such as sludge from gravel and sand mining, as well as dust from quartzite extraction. The research will run for two years and is supported by the German Federal Environment Foundation.