Australia: The Australian Competition and Consumer Commission (ACCC) has called for public comment on Switzerland-based Sika's proposed acquisition of Germany-based fellow construction chemicals producer MBCC Group. The commission has raised 'preliminary concerns' over the possible competition impacts of Sika obtaining an 80% Australian market share as a result of the deal.

Sika group responded to the ACCC's concerns with an offer of an undertaking to divest MBCC Group's entire Australia and New Zealand business.

Thailand: ThyssenKrupp Polysius says that it has successfully supplied and installed a Prepol SC alternative fuels (AF) system at a 12Mt/yr cement plant in Thailand. The system will supply the plant's four lines with 4000t/day of AF.

ThyssenKrupp Polysius' Asia Pacific CEO Lukas Schoeneck said "Asia Pacific, with its tremendous municipal solid waste (MSW) problem, is ideal when it comes to replacing coal with AF. The Prepol SC technology significantly reduces the need to treat MSW before using the inherent calorific value. Additionally, it helps to further reduce the ambitious CO₂ limit targets in the region."

Belgium: The EU Innovation Fund has awarded Euro4.5m to a consortium consisting of Lhoist, gas provider Fluxys Belgium, concrete products company Prefer and carbonation technology developer Orbix. The collaborators are working on a project called CO2ncrEAT. The project will carbonate steel sector by-products with captured CO₂ from Lhoist's Hermalle lime plant to produce alternative building materials. CO2ncrEAT will be the first project to employ Orbix's innovative technique for the purpose. Fluxys Belgium's pipeline technology will convey the Hermalle plant's emissions over a distance of 2km to a Prefer concrete blocks plant.

The consortium said that it will use 12,000t/yr of CO₂ to produce 100,000t/yr of reduced-CO₂ concrete blocks. The use of alternative raw materials in the blocks will further reduce their carbon footprint by 8000t/yr.

Lhoist Western Europe managing director Vincent Deleers said “The project fits perfectly with our willingness to actively develop CO₂ capture and sequestration technologies that are essential to the sustainability of our industry. We are delighted that our work on innovative solutions has been recognised by the European Innovation Fund and we look forward to working with our partners to bring CO2ncrEAT to the next level.”

Pakistan: DG Khan Cement despatched its second cement shipment to the US on 18 January 2023. The shipment consisted of 37,500t of low-alkali cement, and is part of an order for 600,000t. The Business Recorder newspaper has reported that DG Khan Cement previously shipped 50,000t to the US in June 2022. The latest delivery is destined for Houston, Texas.

DG Khan Cement's executive director Farid Fazal said that the Pakistan cement industry is position to obtain an over 10% share in the US import market. During 2022, Pakistan and 24 other countries exported cement to the US.

Denmark: FLSmidth has notified investors that Altor Fund Manager has increased its holding of shares in the company to over 5%. The transaction took place on 18 January 2023.

India: The Himachal Pradesh State Pollution Control Board (HPSPCB) issued a show cause notice to UltraTech Cement's Baga cement plant in Himachal Pradesh's Solan District on 18 January 2023. The Hindustan Times has reported that stack emissions monitoring at the plant recorded a breach during 2022.

UltraTech Cement now has 15 days in which to respond to the show cause notice.

US: Ed Sullivan, the Chief Economist and Senior Vice President of Market Intelligence at the Portland Cement Association (PCA), expects that cement consumption will decline in the second half of 2023 due to a worsening general economic outlook. However, he noted that order books for the construction industry were ‘strong’ for at least the next six months and that this would cushion the sector. Sullivan made his comments at a presentation at the World of Concrete conference in Las Vegas.

Sullivan said, "When looking at the big picture of real construction spending and cement consumption this year, we should expect both volumes to soften throughout the year, with significant declines in the second half of 2023." He added, "The downturn is expected to be short-lived as interest rates ease slightly and stronger infrastructure volumes materialise in 2024 and beyond."

Sullivan predicts that the US economy is gradually weakening under the weight of high inflation, rising interest rates and geopolitical turmoil. However, he viewed the occurrence of a recession as unlikely. In the construction sector he forecasts that the private sector will continue decline in 2023 following a drop in 2022. Spending benefits from the Bipartisan Infrastructure Law are likely to be muted in 2023 before registering a stronger effect in 2024.

Denmark: Equipment manufacturer FLSmidth has launched new corporate strategies for its cement and mining sectors. The so-called ‘pure play’ plans are intended to further focus on technology, products and services and sustainability. The group says it is also simplifying its operating model to reduce risks, improve efficiencies, ensure stronger execution and improve profitability and quality of earnings. The announcement was made at the same time as the group’s latest investor event.

Mikko Keto, the chief executive officer at FLSmidth, said “We must prioritise our efforts on our core business, reduce risk and execute with excellence. We have already started to fundamentally transform our business to ensure stronger strategy execution and to achieve our long-term ambitions to the benefit of our stakeholders.”

In the cement sector the group’s ‘Green 26’ plan aims to make the company the preferred service supplier for the industry. It added that it has a “clear commitment to drive the green transition in the cement industry.” It has set a target of reaching an 8% earnings before interest, taxation, depreciation and amortisation (EBITDA) margin by 2026. For the mining sector the target is a 13 - 15% margin.

In provisional financial results for 2022, FLSmidth revealed that it had an EBITDA margin of 3.3% for cement and 7.6% for mining. Group revenue rose by 24% year-on-year to Euro2.93bn in 2022 from Euro2.37bn in the 2021. Revenue from the cement and mining sectors grew by 7% to Euro847m and 29% to Euro2.03bn respectively. The group said that the short-term outlook for the cement industry remained impacted by overcapacity and that a potential recession is expected to impact market demand negatively over the coming period. Its mining sector revenue was inflated by the acquisition of ThyssenKrupp Mining in 2022.

India: Sagar Cements has won the auction to acquire Andhra Cements from Jaiprakash Associates (Jaypee Group), a company currently undergoing an insolvency process. The committee of creditors of Andhra Cements voted to approve the sale, although the amount of the bid has not been disclosed, according to the Press Trust of India. Dalmia Cement (Bharat) was also reportedly made a bid for the cement producer.

Andhra Cements operates an integrated plant at Durga and a grinding plant at Visakhapatnam in Andhra Pradesh. It was previously acquired by Jaypee Group in 2012 from Duncan Goenka Group.

Oman: Raysut Cement’s loss after tax rose to US$243m in 2022 from US$33.6m in 2021. Its expenses more than doubled to US$361m from US$168m. Its sales revenue dropped by 12% year-on-year to US$118m from US$134m.

The release of financial data for 2022 follows the intervention by the Capital Market Authority (CMA) in late 2022. In November 2022 the regulator publicly called on the cement producer to urgently address 'material misrepresentations' in its financial results for the second quarter of 2022. It then replaced the company’s board of directors and appointed a temporary one in December 2022 following an audit. This is the second time the CMA’s history that it has taken such action, according to local press.