Displaying items by tag: Buzzi
US: The Portland Cement Association (PCA) has appointed Dave Nepereny as an honorary member. The role is awarded to those who, in the opinion of the PCA board of directors, have rendered outstanding service to the cement industry and the association. Nepereny was a former chief executive officer at Buzzi Unicem and as a member of the PCA board of directors, he served as a former chairman from 1994 - 1995. He also served as a board member to former PCA sister organisation, CTLGroup.
“Dave was actively involved with multiple aspects of PCA, setting an example as a former Chairman and chair for multiple committees, including the Membership Development, Market Development Council, and the Administrative council,” said PCA chairman and president of GCC of America, Ron Henley.
SKL Cement wins oil well cement supply contract
14 July 2021Russia: Rosneft subsidiary Vostsibneftegaz contracted SLK Cement to supply over 8000t of oil well cement to its Yurubcheno-Tokhomsk oilfield in Krasnoyark region in late 2020. The subsidiary of Italy-based Buzzi Unicem provided PZT I-G-CC-1 type oil well cement and shipped it by rail and road. It says that the oilfield is among its target markets in Ural district, alongside the Tyumensk, Khanty-Mansiysk and Yamal-Nenets oilfields.
Lone Star Industries to upgrade Greencastle cement plant and pay US$700,000 pollution fine
07 June 2021US: Italy-based Buzzi Unicem subsidiary Lone Star Industries has concluded a settlement with the US Department of Justice, the Environmental Protection Agency and the state of Indiana over Clean Air Act violations at its integrated Greencastle plant in Indiana, dating from 2010 to the present day. The Indy Star newspaper has reported that under the terms of the settlement the producer must pay a fine of US$700,000. The authorities ordered the company to upgrade the plant in line with state and federal pollution regulations. The violations involved emissions of particulate matter that exceeded state and federal limits.
Italy: Buzzi Unicem’s first-quarter consolidated net sales fell by 1% year-on-year to Euro683m in the first quarter of 2021 from Euro689m in the first quarter of 2020. Cement sales volumes were 6.2Mt, up by 3% from 6.0Mt. Adverse weather caused slight sales declines in Europe and North America. The company called full-year growth prospects for 2021 ‘encouraging.’
LafargeHolcim to leave Brazil?
21 April 2021LafargeHolcim retained its ability to surprise this week with the news that it may be making preparations to leave Brazil. Local press in Minas Gerais revealed on 20 April 2021 that the company was about to try and sell its operations in the country. The building materials producer has not made a public statement yet on the matter, it may not until a deal is done and/or this could all be a great big misunderstanding. So treat the following with caution.
Firstly, LafargeHolcim deciding to sell in Brazil fits with the selective approach increasingly shown by the non-Chinese cement multinationals in recent years. It famously decided to sell up in South-East Asia from 2018 and it got as far as divesting assets in Indonesia and Malaysia. It also tried to sell in the Philippines but the local competition commission didn’t give permission for the proposed deal in the end. As Global Cement Weekly mentioned at the time this was a bold move and doing the same in Brazil seems similarly decisive now. It’s a big market to leave! CRH and HeidelbergCement have both talked openly as well about taking a value-first approach to their divestment strategies rather than trying to retain blanket coverage. However, just because a sale in Brazil by LafargeHolcim sounds right doesn’t mean it is right.
Secondly, data from the National Cement Industry Association (SNIC) shows that the Brazilian cement industry had a good year in 2020. Despite the relentlessly bad news from the coronavirus pandemic, the Brazilian government decided to keep the economy mostly open, allowing the cement industry to continue its recovery since 2018. The sector reported an 11% rise year-on-year in cement sales to 60Mt in 2020. So far in 2021 it has noted a 19% rise year-on-year to 15.3Mt in the first quarter of 2021. Yet, the association forecast slower growth in 2021 as a whole and has warned that the first quarter figures in 2021 don’t show a true picture due to a decline in sales per working day so far in 2021 despite an apparent growth in absolute figures. On the surface it’s a good time to sell cement assets in the country since the sector has been riding a recovery but the general outlook for the country is looking gloomy especially considering the ongoing scale of its coronavirus outbreak and the uncertain damage this may do to the economy as a whole.
Whether or not LafargeHolcim is actually selling up in Brazil or not it, follows the conclusion of the CRH Brazil acquisition by Buzzi Unicem’s Companhia Nacional de Cimento (CNC) joint-venture that was also announced this week after approval by the completion authority. The assets that CRH Brasil has now sold include three integrated cement plants and two grinding plants in the south-east of the country. The subsidiary sold approximately 2.8Mt of cement in 2020. If nothing else this suggests that there should be companies out there pursuing a different strategy to LafargeHolcim, CRH, HeidelbergCement and the rest who will be only too happy to build their portfolio if LafargeHolcim’s Brazilian business does go on sale.
CRH originally bought its plants in Brazil as part of a package deal when Lafarge and Holcim merged in 2015 and any potential sales by LafargeHolcim also link back to this. LafargeHolcim has spent much of the last six years working out what kind of company it wants to be. Certainly, since the current chief executive officer Jan Jenisch took charge it has had the air of a company with a mission. The Firestone Building Products acquisition earlier in 2021 is an example of this, propelling the group away from the triad of cement, concrete and aggregates as the carbon risks of heavy building materials heat up. There is something fitting perhaps that at the company’s next annual general meeting its shareholders will be asked whether they want to change the company’s name to Holcim at the group level. It’s a small thing, all market brands will remain as they are, but it may bookend the post-merger era as much as asset divestments in Indonesia and... potentially Brazil.
Companhia Nacional de Cimento acquires CRH Brasil
20 April 2021Brazil: Companhia Nacional de Cimento (CNC), part of Italy-based Buzzi Unicem’s 50% subsidiary BCPAR, has acquired CRH Brasil following approval by the Brazilian antitrust authority (CADE). The deal was originally agreed for US$218m although changes in the financial positions of the acquired companies changed this. Buzzi Unicem supplied CNC with US$242m to support the deal.
CRH Brasil’s assets included three integrated cement plants and two grinding plants in the south-east of the country. The company sold approximately 2.8Mt of cement in 2020.
2020 roundup for the cement multinationals
03 March 2021LafargeHolcim’s financial results for 2020 arrived this week, giving us data on many of the larger multinational cement producers. The Chinese ones are yet to release their results and some of the larger other ones such as CRH, Votorantim and InterCement are pending too. Yet, what we have so far gives a selective view on an unusual year. Revenue was down for most producers year-on-year in 2020 due to the effects of the coronavirus pandemic upon construction activity and demand for building materials. There were large regional differences between how countries implemented different lockdowns, how markets responded and how they bounced back afterwards. Generally, the financial effects of this were felt in the first half of 2020 with recovery in the second.
Graph 1: Sales revenue from selected cement producers in 2019 and 2020. Source: Company reports. Note: Figures calculated for Indian producers.
Graph 2: Cement sales volumes from selected cement producers in 2019 and 2020. Source: Company reports. Note: Figures calculated for Indian producers.
LafargeHolcim’s figure in Graph 1 above is a little misleading given that it has divested assets. Its like-for-like reduction in net sales was more like 6%, a similar figure to HeidelbergCement’s. Both experienced mixed results in North America and Europe but not terribly so. LafargeHolcim did relatively well in Latin America. HeidelbergCement found growth in its Africa-Eastern Mediterranean Basin region. It’s also worth noting the comparative leverage of each company: 1.4x for LafargeHolcim and 1.86x for HeidelbergCement. Both are slimming down but the latter’s ongoing divestment plan (see GCW 494) can be seen in the context of its debt to earnings ratio and the cash crisis that coronavirus threw up in 2020.
The contrast between these companies and Cemex and Buzzi Unicem is striking. Both of these benefitted from operations in the North America and parts of Europe. In Cemex’s case sales in Mexico and the US, made the difference despite falling sales elsewhere. Buzzi Unicem’s sales also held up in the US especially in the second half of the year. Europe was more mixed for both producers with growth reported in Germany but losses elsewhere.
The Indian producers tell a different story but one no less notable. Despite a near complete shutdown of production for around a month from late March 2020, the regional market largely recovered. As UltraTech Cement told it in January 2021, “Recovery from the Covid-19 led disruption of the economy has been rapid. This has been fuelled by quicker demand stabilisation, supply side restoration and greater cost efficiencies.” It added that rural residential housing had driven growth and that government-infrastructure projects had helped too. It expects pent-up urban demand to improve with the gradual return of the migrant workforce.
Unfortunately, Semen Indonesia, the leading Indonesian producer, suffered as the country’s production overcapacity was further hit by scaling back of government-based infrastructure projects as it tackled the health situation instead. Its solution has been to focus on export markets instead with new countries including Myanmar, Brunei Darussalam and Taiwan added in 2020 joining existing ones such as China, Australia and Bangladesh. The company’s total sales volumes may have fallen by 8% year-on-year to 40Mt in 2020 but sales outside of Indonesia, including exports, grew by 23% to 6.3Mt.
On a final note it’s sobering to see that the third largest seller of cement in this line-up was UltraTech Cement, a mainly regional producer. Regional in this sense though refers to India, the world’s second largest cement market. By installed production capacity it’s the fifth largest company in the world after CNBM, Anhui Conch, LafargeHolcim and HeidelbergCement. This move towards regionalisation among the large cement producers can also be seen in the large western-based multinationals as they are heading towards fewer but more selective locations. More on the world’s largest producer, China, when the producers start to releases their financial results towards the end of March 2021. Whatever 2021 brings, let’s hope it’s better than 2020.
Italy: Buzzi Unicem’s net sales remained stable at Euro3.22bn in 2020. Cement sales volumes grew slightly to 29.3Mt and ready-mixed concrete sales fell by 3.1% year-on-year to 11.7Mm3 from 12.1Mm3. The group attributed this to growth in the US and stable markets in Russia and Germany, compensating for weaker trends in Eastern Europe and Italy.
US: The Portland Cement Association (PCA) has announced the winners of the 2020 Safety Innovation Awards. The awards recognise ‘creative safety-enhancing projects in the cement industry’ across five categories.
Buzzi Unicem USA’s Joliet, Illinois cement terminal won the distribution award for its barge entry ladder, which reduced fall hazards associated with unloading cement from barges. Ash Grove Cement’s Durkee, Oregon cement plant won the general facility award for its burner pipes cart upgrade, which reduced safety hazards associated with moving cement kiln burner pipes. Further hazard reductions were made by Buzzi Unicem USA’s Chattanooga, Tennessee cement plant’s finish mill access platform and the Monarch Cement Company’s Humboldt, Kansas cement plant’s noise reduction upgrade, which jointly won the milling/grinding award. The pyroprocessing award went to GCC of America’s Pueblo, Colorado plant for its semi-automated clinker feeding system, while the quarry award went to Ash Grove Cement’s Louisville, Nebraska plant for its dump box hardened material extraction tool.
PCA president and chief executive officer (CEO) Michael Ireland said, “Our industry prioritises the safety of its employees above all else. We are proud of our members’ efforts to pursue excellence in safety innovation for their company and their colleagues.”
Dyckerhoff receives approval for use of CEM II / CM (S-LL)
20 November 2020Germany: Buzzi Unicem subsidiary Dyckerhoff has received general building inspection approval from the German Institute for Building Technology for the Portland composite cement CEM II / CM (S-LL) produced in the Amöneburg and Deuna factories. It is the first to receive approval to sell this class of cement, which contains both slag and limestone, in Germany.
The use of CEM II / C cements reduces CO2 emissions from building with cement and concrete due to their lower clinker factor. CEM II / CM (S-LL) emits 39% less CO2 per tonne of cement compared to CEM I cement. Compared to the current status quo of the binder mix, CEM II / C cements have the potential to reduce CO2 intensity by 25%.
The CEM II / CM (S-LL) ‘Amöneburg’ and ‘Deuna’ is authorised for use in strength classes 32.5 N, 32.5 R, 42.5 N, 42.5 R, 52.5 N and 52.5 R. It may be used for the production of concrete, reinforced concrete and prestressed concrete in the following exposure classes: X0, XC1 to XC4, XD1 to XD3, XS1 to XS3, XF1, XA1 to XA3, XM1 to XM3.