Displaying items by tag: Americas

Mexico: Cemex has executed an investment agreement with Spain-based AI and analytics company Optimitive through its corporate venture capital arm Cemex Ventures. The company seeks to scale Optimitive’s solution across its operations as part of its Digital Innovation in Motion programme. It aims to significantly reduce energy consumption while increasing production efficiency by ‘double-digit percentage points’, according to a press release.

Alfredo Carrato, investment and open innovation advisor at Cemex Ventures, said “We are excited about this partnership with Optimitive, given the impressive results they have already achieved in Europe and the US in projects to date with Cemex.”

Colombia: Cementos Argos will invest US$45m to strengthen its operations in Colombia, according to a press release on 22 April 2025. The investment will reportedly fund infrastructure modernisation, implementation of new technologies and ‘operational excellence’, with the goal of increasing efficiency, competitiveness and sustainability nationwide.

The president of parent company Grupo Argos previously revealed that around US$3bn would be invested in fixed-income securities in the US following its sale of a 31% stake in Summit Materials in February 2025. In the longer term, the company would evaluate investments in heavy building materials, logistics companies and aggregates in the US.

US: CRH has appointed Nancy Buese as its chief financial officer (CFO). She will be based in New York. She succeeds Alan Connolly in the post, who was working as interim CFO. Connolly will return to his previous role as Director of Strategic Finance in May 2025.

Buese previously worked as Executive Vice President and CFO at Baker Hughes Company and Newmont Corporation. She has also served as Executive Vice President and CFO at MarkWest Energy Partners and MPLX and was a partner at Ernst & Young. She is a graduate of the University of Kansas.

US: Titan America has appointed Jason Morin as the president of its Florida-based division. He succeeds Randy Dunlap in the post. Dunlap will continue to work for Titan America as Executive Director, Growth & Strategy.

Morin started his career in the cement sector when he joined Holcim in 2001. He held the roles of production manager, plant manager, Vice President of Environmental & Government Affairs and Vice President of Manufacturing for the company. He joined Summit Materials’ Continental Cement division in 2015. Then in 2021 he became the CEO of Black Mountain Sand, where he worked until 2023. After this he founded Rearden Advisors, a consultancy providing industrial clients with advisory services in the areas of operational excellence and strategic mergers and acquisitions. Prior to 2021, Morin was an officer in the US Army and worked for General Electric in strategic sourcing and operations leadership roles. He holds a bachelor’s degree from Clarkson University in engineering and management and a master’s of business administration from Missouri State University.

Titan America’s Florida Business Unit includes the Pennsuco cement plant and adjacent aggregate plant, as well as 40 ready-mix concrete plants, three quarries, eight concrete block plants, two fly ash plants, along with rail and marine import terminals.

Mexico: GCC has reported a 10% year-on-year decline in its net sales to US$247m in the first quarter of 2025, from US$273m a year earlier. Earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 11% to US$73.6m. US concrete volumes rose by 5%, as well as cement and concrete prices across the US and Mexico.

CEO Enrique Escalante said “Despite the challenges we faced during the first quarter, including adverse weather conditions and a dynamic global environment, the fundamentals of our business remain strong. As we move forward, we remain cautiously optimistic, supported by our ability to adapt quickly and leverage our competitive advantages to drive growth throughout the year.”

US: Mexico-based GCC has concluded two bank loan agreements totalling US$135m to fund the expansion of its cement plant in Odessa, Texas. The loans have five- and ten-year maturities respectively, and will support development at the site. GCC did not provide further details in its statement.

It said “These facilities reflect GCC's continued commitment to strengthen its operating and financial performance, while increasing the company's financial flexibility.”

In addition to the Odessa plant, the producer has cement plants in Rapid City, South Dakota; Trident, Montana; Tijeras, New Mexico; and Pueblo, Colorado.

Colombia: National grey cement production fell by 4% year-on-year to 1.05Mt in February 2025. Domestic shipments declined by 7% to 0.97Mt in the same month. In the first two months of 2025, total production dropped by 5% to 1.99Mt and domestic shipments also fell by 5% to 1.83Mt.

It’s been a strong start to 2025 for the Brazilian cement sector. The National Cement Industry Union (SNIC) reported recently that cement sales in the first quarter of 2025 have been the strongest since 2015. Producers sold 15.6Mt in the three month period, a rise of 5.9% year-on-year from 14.7Mt in the same period in 2024.

The result has been attributed to a growing real estate market boosted by housing schemes such as the ongoing Minha Casa Minha Vida programme. SNIC also noted a growing labour market and wage increases, although sales from infrastructure projects failed to keep up. Unfortunately, SNIC is wary of whether the positive news will continue in the second half of 2025. Risks such as interest rates, growing general debt levels and the effects of any potential international trade wars all lie ahead.

Graph 1: Cement production in Brazil, 2017 - 2024. Production estimated for 2024 based on National Cement Industry Union (SNIC) preliminary data on sales. Source: SNIC.

Based on preliminary SNIC data from December 2024, the country likely had its best year in 2024 since the market peaked in the mid-2010s. Cement sales were reported to have risen by 3.9% to 64.7Mt in 2024. Consumption was 73Mt. An estimate of production based on the same rate of growth suggests that cement production may have grown to 69Mt in 2024 from 66.5Mt in 2023.

The three main cement companies - Votorantim Cimentos, InterCement and CSN - each reported domestic earnings growth in 2024. In Votorantim’s case net revenue in Brazil was flat in 2024 at US$1.39bn but its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 4% year-on-year to US$390m supported by higher prices, volumes and lower costs. InterCement has been in a debt resolution process since December 2024, which will be discussed below. Its sales volumes of cement were flat at 8.6Mt and sales revenue fell by 6.6% to US$557m. Yet, adjusted EBITDA rose by 10.2% to US$135m. CSN’s sales volumes of cement increased by 5.9% to 13.5Mt and its cement business sales revenue by 5.7% to US$810m. However, its adjusted EBITDA zoomed ahead by 39.5% to US$231m. The group attributed its higher sales volumes of cement to its strategy of focusing on logistics and distribution centres to target new markets, build market share and boost synergies.

As covered by Global Cement Weekly previously, InterCement has been trying to sell assets since at least the early 2010s. High debt levels have been a problem more recently and the company entered into judicial recovery, a court-led debt recovery process, in December 2024. How this process plays out should inform the nature of any subsequent divestment of assets. InterCement attempted to sell its subsidiary in Argentina, Loma Nega, to CSN in 2024. Unfortunately, this reportedly failed due to the appreciation of Loma Negra and due to disagreements between bondholders and shareholders of parent company Mover, according to the Valor Econômico newspaper. At home in Brazil, Buzzi, CSN, Huaxin Cement, Polimix, Vicat and Votorantim have all been linked to a potential sale of InterCement assets in a piecemeal fashion. Votorantim, in particular, is expected to face opposition from the local competition regulator CADE if it attempted to buy all of InterCement’s cement plants.

It’s positive to see the cement industry in Brazil starting to reach the sales levels last recorded in 2014. SNIC, understandably, isn't taking anything for granted. It’s warned of more modest growth in 2025, compared to the strong opening quarter, with levels forecast to be somewhere between 1 - 1.5%. It says that this will depend on the “evolution of the economy, monetary policy and investments in infrastructure and housing.” It has also warned of “uncertainties arising from the US.” The other big ‘if’ is whether InterCement can actually start selling cement plants in 2025. Time will tell.

US: Carbon Upcycling Technologies has appointed Markus Kritzler as its Chief Revenue Officer.

Kritzler previously worked as Head of Group Strategy at LafargeHolcim in the mid 2010s. He later became the Director of Strategy, Marketing and Innovation at Holcim México. More recently he was the managing director of Ingenia Capital in Mexico. Kritzler holds a degree in industrial engineering from the Universidad Iberoamericana Ciudad de México and a master of business administration from the University of Virginia Darden School of Business.

Carbon Upcycling sells technology that enhances supplementary cementitious materials through methods such as capturing and utilising CO₂ emissions.

Colombia: Jorge Mario Velásquez, the president of Grupo Argos, has revealed the group’s plans for its subsidiary Cementos Argos, following its sale of a 31% stake in US-based Summit Materials in February 2025. Mario Velásquez told the El Colombinao newspaper in an interview that, in the short term, around US$3bn is being invested in fixed-income securities in the US. In the medium term, the company is evaluating investment opportunities in heavy building materials and logistics companies. The latter sector is being considered to maximise the reach of existing production capacity. He added that aggregates in the US are being looked at. However, the company is prepared to consider investing elsewhere.

In March 2025 bondholders and shareholders of Grupo Argos and Grupo Sura agreed to a spin-off agreement to dispose of cross-shareholdings between the conglomerates.