Displaying items by tag: Canada

Canada: Holcim subsidiary Lafarge Canada has announced that its Bath cement plant in Kingston, Ontario, is in the process of converting to the production of Holcim’s OneCem product, a low CO₂ Portland Limestone Cement (PLC) alternative. The plant currently makes general use (GU) cement.

"As the leader in the cement industry in eastern Canada, we are committed to developing our green portfolio and advancing towards a sustainable future, with OneCem as a step on the journey," said Andrew Stewart, Vice President for Cement at Lafarge Eastern Canada.

Robert Cumming, Head of Sustainability & Public Affairs for Eastern Canada, said "From 2018 to 2021 we have saved more than 140,000t of CO₂ by converting GU cement to OneCem in our plants across Ontario, Quebec and Nova Scotia - the equivalent to taking 42,891 cars off the road. With the recent conversion of the Bath Plant's GU production to OneCem, these numbers will continue to grow."

Canada: Lafarge Canada’s Richmond cement plant, one of the largest in British Columbia, has temporarily cut production, exacerbating a cement and concrete shortage in Vancouver, where some building firms have been forced to halt projects. The Richmond plant has been operating at limited capacity since a fire in the pre-heater tower on 31 May 2022.

Local press reported that the Richmond plant was ‘undergoing electric repairs to an isolated area,’ according to an emailed statement from the company. The company added "We expect to resume full production capacity shortly and are leveraging our strong production and supply network in an effort to minimize impact to our customers."

Canada/US: Lime company Lhoist North America raised the price of its lime products by up to 45% from 13 June 2022. The producer acknowledged the ‘challenging circumstance’ for all parties at an ‘unprecedented’ time. It said “We look forward to continuing to deliver the expected value to our customers.”

Canada/US: Holcim North America has invested in Blue Planet to support the development and commercialisation of its mineralisation technology. Blue Planet’s process sequesters CO₂ with building waste feedstock such as recycled concrete, cement kiln dust (CKD) and slag to produce new aggregate products. Each tonne of Blue Planet’s aggregate can mineralize up to 440kg of captured CO₂. Lafarge Canada, Holcim US, and Blue Planet will start a multi-year collaboration to help identify potential to use the mineralisation technology to further lower the carbon footprint of the companies’ cement, aggregates and concrete operations, with the potential to expand to other operations in the Holcim Group around the world.

“This is an important step for us in North America. Our vision is to transform our St Constant Plant in Montreal into a carbon campus that ultimately advances commercialisation of mineralisation technologies, including Blue Planet’s products,” said David Redfern, president and chief executive officer, Lafarge Canada. “We look forward to advancing our Net Zero strategy by leveraging mineralization technology that allows us to use the CO₂ from our own cement plants to produce carbon neutral or carbon negative sand and gravel products.”

Canada: Progressive Planet Solutions has successfully produced a new supplementary cementitious material (SCM) called PozDE from diatomaceous earth. The company says that it developed PozDE using calcium bentonite-containing diatomaceous earth from the Red Lake mine in Kamloops, British Colombia. The SCM’s seven-day and 28-day strength activity index (SAI) values are 101% and 120% those of ordinary Portland cement (OPC) respectively, while its water demand is lower at 98%.

Chief operating officer Ian Grant said “It is uncommon to see SCMs exceed the 7-day strength of the control Portland, so we are excited to see better strength while indicating lower water demand."

Canada: CRH has signed an agreement to acquire residential railings and fencing producer Barrette Outdoor Living. The value of the deal is US$1.9bn. CRH will finance the acquisition through its existing financial resources, and expects it to conclude in the second half of 2022.

Austria/Canada: Canada-based Solex Thermal Science has been selected by Austria-based Cemtec for a mineral cooling project based in Central Europe. As part of the agreement, Solex will deliver a customised plate-based moving bed heat exchanger (MBHE) that will be used to indirectly cool a milled, mineral-based powder that’s similar to cement. The unit is expected to be delivered by the summer of 2022.

Solex says that the use of a welded plate-channel design allows the powder to flow by gravity within a vertically orientated exchanger and between banks of stainless-steel plates. A heat transfer fluid passes within the plates to cool the material by conduction. The use of indirect heat transfer technology, combined with customised plate spacing, provides the necessary residence time to eliminate caking within the unit while also ensuring consistent temperature profiles at the outlet.

“We are excited to bring our decades of thermal engineering experience to this collaboration with Cemtec,” said Gerald Marinitsch, Global Director, Industrials for Solex Thermal Science. “We are confident that our MBHE technology will provide a reliable, real-world solution to this unique and important cooling application.”

Cemtec is a specialist in providing wet and dry grinding technologies for many types of bulk materials and minerals including the cement sector. Solex Thermal Science develops indirect heat exchange technology for the heating, cooling and drying of free-flowing granular materials such as solid granules, pellets, beans, seeds and particles.

Canada: Workers at St Mary’s Cement’s Port-Daniel-Gascons cement plant have voted in favour of taking strike action in a dispute over matters including wages and pensions. Local press has reported that workers and the company, a subsidiary of Brazil-based Votorantim Cimentos, will sit in negotiations on 13 and 14 June 2022. Employees previously rejected a ‘final and comprehensive’ offer from the company earlier in May 2022.

More mergers and acquisition news emerged this week in the shape of potential buyers for Sika’s US admixtures business. Reporting from Bloomberg revealed that Holcim, HeidelbergCement and Turkey-based Sabancı Holding had all made it, amongst other unnamed companies, to a second round of bidding for the assets. Sika then confirmed this to the Finanz und Wirtschaft newspaper and added that the sale would also relate to Canadian assets as well. The intention here is to bypass the risk of a lengthy competition investigation in the US.

Switzerland-based Sika announced in November 2021 that it had signed a deal to buy MBCC Group from Lone Star Funds, a global private equity firm, for Euro5.2bn. At the time of the announcement Sika said that the transaction was subject to regulatory approval but it added that it was ‘confident’ that all required clearances would be obtained with closure planned for the second half of 2022. Known competition probes are now pending in the UK, Australia and New Zealand. A previous piece from Bloomberg suggested that internal analysis by Sika found that the company might need to divest operations with annual sales of around US$160m with a value of US$400m. However, the latest update suggests a value of up to US$1bn. The US represented US$1.71bn or 18% of Sika’s total group sales in 2021. Sika’s information to shareholders to let them know about the MBCC acquisition in November 2021, showed that MBCC had sales of around US$966m in the Americas in 2021 with 36 production plants. Overall, not just in the US, the deal is expected to change Sika’s technology mix from 40% concrete and cement systems to 49%, with most of the additions coming from concrete applications.

Divestments were always likely in an acquisition this large between competitors with shared geographies. What is interesting here to the cement sector is that the three named interested parties are all cement producers. Holcim is perhaps the least surprising given its size, pivot towards light building materials and the fact that its current head, Jan Jenisch, used to run Sika. If anyone knows how much an admixture company is worth, it’s the guy who ran one five years ago! HeidelbergCement does not have such a large light building materials business footprint but it is demonstrably interested in making heavy building material production more sustainable. Also, as the world’s second largest western multinational cement producer it is likely to be interested in an input market for some of its end products. Sabancı Holding is the outlier in this grouping with a more regional grey cement business based in Turkey, an international white cement business and a diverse set of business interests including finance and energy. Although, even as the smallest of the bunch, it still reported sales revenue of over US$9bn in 2021. One notable absence from the potential contenders list for Sika USA is Cemex. Its Urbanisation Solutions division, which produces admixtures among other products, reported sales of US$1.9bn in 2021 or 13% of the group’s total revenue. US$558m of this was made in the US.

The wider context in the North American admixture market is that the announcement of Sika’s deal with MBCC in November 2021 was followed about a month later when Saint-Gobain said it had entered into a deal to buy GCP Applied Technologies. This followed Saint-Gobain’s acquisition of Chryso in October 2021. However, Saint-Gobain said that the GCP deal would strengthen its position more in North America. Readers can find out more about Saint-Gobain’s ambitions here.

The final word at this stage should go on Lone Star Funds, the current owner of MBCC. Lone Star Funds bought the construction chemicals business from BASF for Euro3.17bn in September 2020. At the time the acquisition closed Saori Dubourg, a member of the board of executive directors of BASF, said “Lone Star has been a professional partner in this transaction and is committed to the future success of the business.” If the reporting is correct, Lone Star Funds is now selling the same business for over Euro5bn. There are two takeaways to consider at this point. One is that the perceived value of products that make cement and concrete more sustainable are growing. The other is that Lone Star Funds timed its acquisition of MBCC from BASF very well.

France: Fives’ Process Technologies division’s commercial activities, including those to the cement market, have improved in 2021 following recovery in market confidence following the start of the coronavirus pandemic in 2020. Its order intake increased by 43% year-on-year to Euro702m in 2021 from Euro490m in 2020. Its sales fell by 2% to Euro623m from Euro637m. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 63%. In the cement sector, Fives said that the North American market had been active. It reported ‘significant’ orders in Mexico, partly in response to the growing US market driven by the government’s infrastructure bill that was approved in late 2021. Fives also noted growth in Canada, where several companies are working towards carbon neutral production.

Overall, across all market divisions, Fives’ order intake, sales and earnings increased in 2021.