Displaying items by tag: Aggregates

US: Martin Marietta's sales rose by 7% year-on-year to US$4.24bn in 2018 from US$3.97bn in 2017. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) remained stable at US$1.1bn. Revenue from its cement business grew by 4.5% to US$388m from US$371m.Cement shipments increased slightly to 3.5Mt. The building materials company said that its cement shipments had been negatively affected by bad weather in the fourth quarter. The bulk of the company's revenue comes from it aggregate business followed by ready-mix concrete.

UK: A consortium comprising Aggregate Industries, Innovatium and the University of Birmingham has gained funding from the Department for Business, Energy and Industrial Strategy (BEIS) to test a liquid air energy storage (LAES) energy efficiency technology under the government’s Industrial Energy Efficiency Accelerator (IEEA) programme. The IEEA programme, administered by the Carbon Trust on behalf of BEIS, will provide nearly Euro0.4m towards delivering a new compressed air system utilising LAES technology from initial laboratory testing to full operation at Aggregate Industries’ Bardon Hill quarry in Leicestershire.

PRISMA (Peak Reduction by Integrated Storage and Management of Air) by Innovatium is a LAES technology that stores energy in liquid air form to provide compressed air, allowing inefficient partially loaded, variable-demand compressors to be turned off, thus improving the total system efficiency by up to 57%. The PRISMA system will bring together a latent energy cold storage tank, filled with a phase change material (PCM) to store thermal energy, and a number of other off-the-shelf components to form a system that will work with Aggregate Industries’ existing compressed air network. The research group says that the integration of the equipment and components in an industrial setting, for the provision of compressed air, has never been attempted before.

“The project will help to address the ‘energy trilemma’ of managing energy efficiency, energy cost and energy security by: significantly improving the energy efficiency of our compressed air system; managing electricity costs by running the compressors out-of-hours, when electricity is cheaper; and helping to smooth and reduce the peak electrical demand on site. We are therefore very excited to be the first industrial partner to install the PRISMA system at our Bardon Hill quarry in Leicestershire,” said Richard Eaton, Energy Manager at Aggregate Industries.

The 24-month project will involve the development of the PCM at the University of Birmingham’s School of Chemical Engineering as well as the design, manufacture and assembly of multiple system components by Innovatium before installation of the system at Bardon Hill. The PRISMA Project has currently only been deployed in a simulated environment. Following successful delivery of the project, this scalable technology has multi-sectoral applications for compressed air systems both in the UK and globally. In the UK, the compressed air market is estimated at 1.3GW of installed electrical capacity across around 4500 sites and over 55,000 individual compressor units.

US/Canada: Terex says that its Terex Washing Systems (TWS) brand is investing in its North American sales and operational teams. Following the spend it will have 20 regional partners via 50 service depots, 60 mobile trucks and 100 technicians in the region.

“Our new enhanced levels of sales and service and support will build upon momentum gained in recent years as we continue to focus on serving customers, with world-class washing equipment solutions that add commercial value to their operations,” said TWS’ director Oliver Donnelly.

TWS manufactures products for the mineral washing sector for aggregate, recycling, mining and industrial sand industries.

Sweden: Conveyor belts supplied by Germany’s Continental are being used in the Förbifart Stockholm road infrastructure project. HeidelbergCement’s aggregate company Jehander is using Continental steel cord conveyor belts at its Löten quarry near Stockholm to allow rubble from tunnelling to be reused for road construction. In addition, drilling machines from Epiroc are using Continental DrillMaster tyres to provide high cut resistance, good traction and stability.

Overall, around 5.5Mt of rock will be extracted to build the tunnels required for the new bypass. A series of conveyor belt systems are being used to transport the extracted rock to three temporary ports that have been set up for the project. The rubble is taken across the waterways by inland vessels from the construction site in Stockholm to Löten. The rubble is then reused as concrete, mostly for road construction, or it used for local construction.

Fascinating information came out of LafargeHolcim last week as part of its Capital Markets Day 2018. The building materials company said it is expecting sales growth to slow in 2019 but earnings to grow. Jan Jenisch, the chief executive officer (CEO), said that the group was ‘aggressively’ moving forward in aggregates and ready-mix concrete. Alongside this, its recent divestment of its Indonesian operations was declared a ‘major’ milestone in focusing its portfolio and cutting down on debt.

Graph 1: LafargeHolcim’s major product lines by sales (%), 2015 – 2017. Source: Company reports.

Graph 1, above, gives a good idea of how LafargeHolcim has been changing its business. Cement sales as a percentage of total sales have been cut to 60% in 2017 from 67% in 2015. Ready-mix concrete and other sales (including asphalt) have risen to 26% from 19%. Aggregate sales have stayed at around 14%. If the world is making too much cement then LafargeHolcim is switching to concrete and balancing out its supply chain. Naturally, this was backed up in one of its investor presentations showing a more even split in the world building materials market between cement, concrete and aggregates. This fits with Jenisch’s background as the former head of Sika. That company manufactures a wide range of specialty chemicals for the construction and automotive industries.

That shift in focus could also be seen at the inaugural Global Cement and Concrete Association (GCCA) event in late November 2018 where concrete was very much the centre of attention from a sustainability angle. The main companies involved with the GCCA are vertically integrated ones and, by switching its product balance, LafargeHolcim seems to be moving in the same direction. In a sense this is a continuation of the synergy-seeking that was promised when Lafarge and Holcim merged in 2015.

Graph 2: Forecast cement demand growth in LafargeHolcim markets. Source: LafargeHolcim investor presentation 2018.

The other interesting question for LafargeHolcim is where next for growth? The graphic above shows a number of promising areas, including India and east Sub-Saharan Africa. Also, note the slowdown forecast for China. That renewed faith in India is timely this week given the expectation by the Indian Cement Manufacturers Association that cement demand growth in the country will rise by at least 10% in the current financial year to March 2019. If the momentum holds up after a strong first half then it will mark the fastest increase for the region since the market slowed down in 2011. LafargeHolcim doesn’t appear to be on course to grow significantly in India anytime soon but it has major ‘skin in the game’ in a promising market.

Another indication of the vibrancy of the Indian market also came this week from the Cement Sustainability Initiative (CSI) with the results of a status review from its low carbon technology roadmap (LCTR). The results were fairly good for such a large industry, with falling CO₂ emissions intensity, growing co-processing rates and a decreasing clinker factor. This report carried a sad note given that the work that the CSI does will be taken over by the GCCA in January 2019. However, if this is the last we’re going to hear from the CSI, then they’ve left on a high note.

Lastly, leafing through old financial reports may not be everybody’s idea of a good time but it does let one see how LafargeHolcim’s product mix has changed. It also gives one time to catch up with old faces. Like Bruno Lafont and Eric Olsen. Once again those two former executives popped up in the latest twist of the on going Lafarge Syria legal case as a group of Yazidi women have applied to become ‘civil parties’ in the case. Whether the war crimes inflicted upon the Yazidis can be pinned on Lafarge Syria remains to be seen. Yet, for all of the LafargeHolcim’s business reorganisation, its predecessor’s conduct in Syria continues to make headlines. However much progress the company makes in turning around its fortunes, if it can be, this will continue to overshadow everything. Once a line is drawn under the affair then LafargeHolcim can move on properly.

US: ACG Materials has acquired North Florida Rock (NFR). ACG, a subsidiary of private equity firm HIG Capital, produces and processes industrial minerals and aggregates including gypsum, limestone, sand, gravel and downstream food, pharmaceutical and plaster products. NFR mines and produces limestone products sold into infrastructure, agriculture and building products applications. NFR owns and operates a quarry in Marianna, Florida and ships rocks across the Florida Panhandle, Alabama, and Georgia. No value for the deal has been disclosed.

“We are excited about the strategic expansion of our operations into the Southeastern US,” said Paul Harrington, chief executive officer of ACG Materials. “NFR not only allows us to grow outside our core Oklahoma, Texas, and Pacific Northwest markets, but also significantly expands our customer footprint and portfolio of limestone products within our expertise of mineral processing.”

NFR is the sixth add-on acquisition that ACG Materials has made since HIG acquired the company at the end of 2012.

UK: Leicestershire-based Aggregate Industries, now part of the LafargeHolcim group, has taken ownership of Lafarge cement plants in Cauldon, Staffordshire and Cookstown, County Tyrone, Northern Ireland.

The transfer of ownership of the two plants, along with a quarry at Cauldon Low and a cement terminal at Belfast Docks, was finalised on 20 July 2015 and also involves the transfer of 250 employees from the existing operations to Aggregate Industries. Originally owned by Holcim, Aggregate Industries said that becoming a cement producer and supplier 'is the final piece in the jigsaw,' providing a full range of construction materials to its customers.

"These are exciting times for Aggregate Industries. Along with the wider benefits of being part of the new LafargeHolcim group, the integration of cement production represents a significant strategic opportunity for us. We're now able to offer our customers the full range of construction materials and solutions, while maintaining our high levels of customer service," said Pat Ward, Aggregate Industries CEO. The business will continue with the Lafarge cement brand for its bulk cement products, although some of the bagged products will be renamed in due course.

Zambia: Lafarge Zambia plc has commissioned a US$5m 600,000t/yr aggregate plant with the Zambian Government that is expected to create 70 new direct jobs.

Minister of Commerce, Trade and Industry, Emmanuel Chenda, said that national roads infrastructure programmes such as the Link Zambia 8,000 and Pave Zambia 2000 require readily available cement and aggregate and the plant will ensure there is adequate supply for the project to be implemented effectively.

"The huge demand for cement and aggregates that the construction industry provides cannot be overstated. The market is ready and all you need is tap into it by way of increasing commercial circulation of the products at competitive market rates," said Chenda. He disclosed that Government has formulated mid-term policies and strategies to address constraints in the manufacturing sector such as high cost of production, limited access to long-term finance and weak linkages. The policies will be implemented over the next five years in line with the revised Sixth National Development Plan.

Lafarge Zambia chief executive officer Emmanuel Rigaux said that the aggregate plant can also be adjusted in terms of capacity, which will enable the company to supply more of the product as required.