Displaying items by tag: Canada

US/Canada: Lafarge and Holcim have received final approval for their proposed merger from the competition authorities in the US and Canada. All competition approvals necessary for closing the transaction have now been obtained ahead of the expected closing in July 2015.

Following the regulatory assessment in all key jurisdictions, Holcim and Lafarge can now present a final list of divestments to satisfy regulatory requirements. These divestments remain subject to the completion of the merger, including a successful public exchange offering to Lafarge's shareholders and approval by Holcim's shareholders.

Canada: Global Cement has taken centre-stage for delegates registering at the IEEE-IAS/PCA 2015 Cement Industry Technical Conference with copies of the April 2015 issue on offer. The conference runs from 26 – 30 April 2015 at the Sheraton Centre Toronto Hotel in Toronto, Canada.

Delegates attending the IEEE-IAS/PCA 2015 can keep informed about the conference cement plant tour by reading a feature interview with the team who run St Marys Bowmanville. The plant tour is scheduled to take place on Thursday 30 April. The April 2015 issue of Global Cement Magazine also includes a country feature on the Canadian cement industry.

US/Candada: Montreal-based McInnis Cement plans to build a US$40m distribution warehouse along the East River in the Bronx, New York, in the hopes of reducing truck traffic in the borough as well as developing its waterfront, according to local media.

McInnis Cement will transport cement down the river from Quebec in 35,000t loads. McInnis will still use trucks to deliver cement from the warehouse to customers, but the new facility should decrease the trucking situation in the borough. "We've done a pretty thorough analysis of the trucking effect in the local community and, in general, we believe that trucking will go down," said Jim Braselton, senior vice president of sales, marketing and logistics at McInnis Cement.

As part of the project, McInnis Cement plans to build a pedestrian pathway on the waterfront. It aims to break ground on the project by the end of the summer of 2015, with completion by the end of 2016.

Canada: Following a mediation session, McInnis Cement, the Centre québécois du droit de l'environnement (CQDE), the Conseil régional de l'environnement Gaspésie-Îles-de-la-Madeleine (CREGIM) and Nature Québec have agreed to the creation of an Environmental Committee to monitor McInnis Cement's plant in Gaspé, Quebec. The first meeting will be held as soon as possible. The mediation also led to specific commitments regarding greenhouse gases (GHG), emissions and impacts on marine mammals and aquatic fauna.

The mediation process resulted from the agreement with McInnis when the CQDE withdrew from the proceedings filed in August 2014 against the Environment Minister, in which McInnis Cement was a party. The role of the committee is to monitor environmental matters and issue recommendations. In addition to monitoring GHG emissions and emissions listed in the NESHAP 2015 US standards and monitoring the Fisheries and Oceans Canada (DFO) protocol on impacts on marine mammals and aquatic fauna, the committee will also address impacts on the physical environment, vegetation and wetlands, natural habitats and biodiversity, landscape, as well as any other environmental issue agreed to by the committee.

The committee will meet at least four times a year and report on its activities to the plant's Citizen Liaison Committee. An independent facilitator will ensure the efficient functioning of the committee. The parties appointed Richard Loiselle, a former director of the École des pêches et de l'aquaculture du Québec as facilitator. In the event of a disagreement, the Honourable Jacques Blanchard was appointed as an independent mediator.

The Environmental Committee will be comprised of eight members; two citizens from the plant's impact zone (one of which is a member of the cement plant's Citizen Liaison Committee), a representative of the CREGIM, a representative of Nature Québec, a representative of the Centre d'initiation, de recherche et d'aide au développement durable (CIRADD), a representative of the ZIP Baie-des-Chaleurs committee, a representative of the Conseil de l'eau Gaspésie-Sud and a representative of McInnis Cement. A professional from the Ministry of Sustainable Development, Environment and the Fight against Climate Change (MSDEFCC) will also be invited to attend meetings.

Following the mediation process, McInnis Cement reiterated its commitment to use biomass to substitute a significant portion of its fuel requirements. It committed US$470,957 over the next three years towards feasibility or technical studies and projects to reduce GHG. McInnis Cement also confirmed its commitment to use selective non-catalytic reduction (SNCR) technology to reduce emissions from the plant and comply with NESHAP standards. As for the impacts on aquatic fauna, the committee will follow-up on the commitments agreed to in the protocol signed with DFO.

Canada: A British Colombia programme that recycles Keurig coffee K-Cups into cement has been so successful that it may expand into Alberta. The Lafarge cement plant in Kamloops, British Colombia, Canada used about 1.4m K-Cups as ash in its cement in 2014 after teaming up with Van Houtte Coffee Services, which collects the used pods for recycling.

"I think we've been fairly successful here," said Eric Isenor, the Lafarge Kamlooops plant manager. "Van Houtte is happy with the programme so far and is looking to expand." He added that the company might start collecting the used pods in Alberta, Canada for recycling in British Colombia.

The single-serving coffee pods are not recyclable because they are a mixture of materials coffee grounds, a paper filter, plastic cup and foil top that cannot be efficiently separated. After collecting the used coffee pods, Van Houtte, a coffee service that delivers supplies to offices and retailers around Kamloops, brings them in large bins to the Lafarge cement plant for processing. The pods are dried out, shredded and heated to 2000°C to form ash, which is then used for cement production.

Canada: Former Quebec premier Pauline Marois has announced the go-ahead of McInnis Cement's cement plant project in Port-Daniel-Gascons, Gaspé. Opposition parties and environmentalists have slammed the Couillard government for approving the US$1.1bn project without a review by Quebec's environmental bureau. The McInnis Cement plant could top the list of industrial polluters in the province.

The provincial government plans to exempt the project from an assessment by the Bureau des Audiences Publique sur l'Environnement (BAPE), Quebec's advisory office of environmental hearings. The company has said that the project shouldn't be subject to an environmental review because it was submitted in May 1995, a month before the law requiring such an assessment came into effect.

In 2014, the Marois government announced that Quebec would invest US$350m in the project. The plant will release 1.7Mt/yr of greenhouse gases (GHG), according to an evaluation by a Canadian engineering consultant firm. The greenhouse gas output would make it the top industrial polluter in Quebec.

Canada: McInnis Cement has reached an agreement with the Centre québécois du Droit de l'Environnement (CQDE) regarding the proceedings filed in August 2014 against the Environment Minister, aimed at invalidating McInnis Cement's authorisation certificate for its cement plant project in Port-Daniel–Gascons. McInnis Cement and the CQDE have agreed to create an environmental subcommittee and to pursue discussions in a mediation process that will address three issues:

1. The monitoring of greenhouse gases (GHG) from the cement plant and McInnis Cement's efforts to reduce GHG;

2. The monitoring of McInnis Cement's performance in complying with the National Emission Standards for Hazardous Air Pollutants (NESHAP) standards with regards to the emission of contaminants;

3. The monitoring of McInnis Cement's compliance with the protocol agreed to with Fisheries and Oceans Canada concerning the protection of marine mammals.

In addition to the CQDE, the Conseil régional de l'Environnement de la Gaspésie-Îles-de-la-Madeleine and Nature-Québec have been invited to the mediation process, as well as the Ministère du Développement durable, de l'Environnement et de la Lutte aux Changements climatiques. The work of the enlarged forum will ensure a long-term dialogue around the future cement plant and is part of McInnis Cement's sustainable development values.

"From day one of Lafarge's filing of the request, McInnis Cement stated that it was a maneuver to slow the arrival of a competitor in the market. The withdrawal of the environmental groups is leaving Lafarge alone in the legal proceedings and highlight its non-competitive purpose," explained Christian Gagnon, CEO of McInnis Cement. "McInnis Cement is aware of its carbon footprint and is committed to gradually reducing its GHG. In this context, we choose the path of dialogue, opting for a mediation with environmental groups about this global issue," said Gagnon.

Canada: The Cement Association of Canada (CAC) has welcomed the British Columbia government's efforts to improve the Province's carbon tax. The British Columbia Carbon Tax is applied only to domestically-produced cement, while imported cement from the US and Asia is exempt, resulting in a net loss to the British Columbia economy. With local manufacturers facing higher costs under the carbon tax, cement imports from jurisdictions without a carbon policy have risen significantly.
The proposed 'transitional incentives,' of US$22m paid over a three year period, to encourage the British Columbia Cement industry to adopt cleaner fuels and further lower emission intensities will assist the current inequality that the industry faces as a result of imports coming from the US and Asia into British Columbia with no carbon tax applied. The cement industry has been working with the British Columbia government and other stakeholders for many years to find a win-win solution to protecting jobs, economic development and the environment.

"British Columbia produces some of the highest quality cement in the world, so the change makes sense both for the environment and for the Province's continued economic prosperity. British Columbia cement is a strategic commodity and a key component of concrete, which is essential to the implementation of the government's ambitious plan for infrastructure development," said CAC president and CEO Michael McSweeney.

"This incentive will help level the playing field for domestic producers of cement. It assists our company to ensure that good jobs stay and continue to be created in British Columbia," said Bob Cooper, vice president of Lafarge Western Canada. "Our competitiveness has been threatened by imports for the past five years and the move by the British Columbia government will also ensure that British Columbia has a long-term and secure local supply of made-in-British Columbia cement."

Canada: Alexandre Rail has been appointed as plant manager of McInnis Cement's Port-Daniel-Gascons plant in Gaspé. Rail brings with him 15 years of experience in heavy industry. He joins the company from ArcelorMittal, where he served as a Steel plant manager for seven years.

"We are pleased with our recruitment of an experienced manager in the heavy industry who shares our values in the areas of health and safety, environment and quality. Rail has proven abilities to mobilise employees," said Christian Gagnon, CEO of McInnis Cement. "Rail's family comes from Gaspé, so he is undoubtedly happy to relocate to that region and eager to contribute its local economic development."

McInnis Cement has also named Mark T Newhart as vice president of Logistics and Distribution and as a member of the company's management team. He will develop an efficient distribution network, with responsibility for transport management and marine terminals. Newhart will report to Jim Braselton, senior vice president of Commerical and Logistics.

"With his 30 years of experience in logistics, which includes 20 years in the cement industry, the addition of Mark to our management team is a major milestone," said Gagnon. "Since our business model is based on marine transportation of our products, Newhart's expertise in transportation and marine terminal management will be beneficial for our organisation."

With Newhart's appointment, McInnis Cement's management team is now complete. It comprises: Christian Gagnon as CEO; André Racine as senior vice president of Corporate Development and Legal Affairs; Jim Braselton as senior vice president of Commercial and Logistics; Gaétan Vézina as senior vice president of Operations; Claude Ferland as CFO; Mark T Newhart as vice president of Logistics and Distribution; Marc Lachapelle as senior director of Human Resources; Maryse Tremblay as director of Communications and Corporate Social Responsibility. McInnis Cement has also announced the relocation of its corporate office in downtown Montreal.

CRH has made good on its intentions. This week it stumped up Euro6.5bn to buy assets from Lafarge and Holcim in four continents. The move follows preparation since at least May 2014 when the Irish building materials group announced a divestment programme. In October 2014 it announced that it would sell its brickwork division.

CRH is finding the cash through a mix of existing cash, debt and equity placing. Interestingly, back in 2012 an Irish stockbroking analyst who was interviewed reckoned that the company could spend up to Euro3.5bn on acquisitions whilst remaining within its banking agreements. Throw in the recent sales and planned divestments and the planned acquisition from LafargeHolcim doesn't seem like too much of a stretch for CRH.

If completed, the purchase will see CRH take on 24 cement plants with a production capacity of 36Mt/yr. As a back of the envelope calculation suggests the sale price of Euro6.5bn isn't far off the occasionally used price of US$200/t for western cement production. The deal also includes aggregates, ready mixed concrete and asphalt assets.

The purchase marks a change in CRH's buying strategy both in terms of scale and distribution. Much of CRH's previous acquisitions have been minority shareholdings that make it difficult to accurately report the company's position in the cement industry. For example, in our Top 100 Report CRH was reported to have a production capacity of 6.49Mt/yr for majority shareholdings with another 19.9Mt/yr for minority shareholdings. The new cement capacity being purchased blows this away because it more than doubles CRH's total capacity and it appears to be all majority owned. CRH thinks that this will propel it to become the world's third biggest building materials manufacturer after LafargeHolcim and Saint-Gobain, leapfrogging Cemex and HeidelbergCement in the process. Strangely there is no mention of the huge Chinese players in the top five manufacturers in CRH's acquisition presentation.

CRH has avoided buying plants in southern Europe but it is relying on the slowly improving growing UK market, where CRH will pick up four plants, to balance the risk. Elsewhere in Europe, the three Holcim plants in France have been suffering from continued low construction rates in that country and the two Lafarge cement plants in Romania are unlikely to have recovered from a production fall in 2013. Outside of Europe growth has been poor in Quebec in 2013 and 2014, where CRH is buying two plants from Holcim. Both Lafarge and Holcim have also seen a slowdown in Brazil. However, the Philippines does seem like a better bet for CRH, with solid cement volumes growth seen by Lafarge in 2013 and the first three quarters of 2014.

With CRH now looking like a company that wants to produce cement rather than one that owns parts of companies that produce cement, all eyes are on the construction markets. 14 of the 24 cement plants CRH are buying are in Europe. Buying at the bottom of a sustained production slump makes sense because the asking price will be low. However, has the bottom been reached yet?