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India: Ramco Cements’ earnings before interest, taxation, depreciation and amortisation (EBITDA) in the 2022 financial year were US$169m, down by 17% year-on-year from US$204m in the 2021 financial year. The producer’s profit after tax also rose by 17%, to US$115m from US$98m.

The Hindu Business Line newspaper has reported that the company attributed its full-year earnings decline to increased fuel costs and reduced cement prices. In the fourth quarter of the 2022 financial year, power and fuel costs rose by 88% year-on-year to US$60.1m from US$31.9m.

India: Shree Cement recorded standalone sales of US$1.84bn in its 2022 financial year, corresponding to a rise of 13% year-on-year from US$1.63bn in the 2021 financial year. Profit after tax for the year was US$306m, up by 2.8% from 298m.

In the fourth quarter of the 2022 financial year, Shree Cement’s energy costs rose by 10% year-on-year and equalled 26% of its sales, while transport costs fell by 1.1% to 23% of sales. Raw materials costs equalled 6.6% of the quarter’s sales.

India: JK Lakshmi Cement’s full-year consolidated sales were US$697m in its 2022 financial year, up by 14.6% year-on-year from US$608m in the 2021 financial year. The group’s net profit was US$61.5m, up by 13.4% from US$54.2m.

The producer said "Despite unabated increases in petcoke and diesel prices, which are hovering at all-time high, JK Lakshmi Cement was able to achieve healthy profitability through continuous improvements in operational efficiencies, energy costs, better product mixes and higher volumes."

Mexico: Cemex and Coolbrook have signed a memorandum of understanding to test technology to electrify the cement kiln heating process. Coolbrook says that its Roto Dynamic Heater (RDH) technology can heat a cement kiln to 1700°C using electrical power. If generated from renewable sources this could potentially remove around 45% of the carbon emissions in cement production that normally arise from the use of fossil fuels. The companies expect the technology to be ready for commercial use at an industrial scale in 2024. They will jointly evaluate the best production site to test and develop this technology.

Ilpo Kuokkanen, the executive chair of Coolbrook, said "Coolbrook has set a target to build a comprehensive ecosystem around its revolutionary technology and to test its use in as many industrial processes as fast as possible. Together with Cemex, we can bring the technology to cement production and achieve significant emission reductions in one of the most energy and CO₂-intensive industrial processes.”

Finland-based Coolbrook is a technology and engineering company that is developing processes to replace the burning of fossil fuels in major industrial sectors. Its RDH has potential applications in cement, steel and chemical production process. Its Roto Dynamic Reactor (RDR) is intended to eliminate CO₂ emissions from the steam cracking process used in the production of plastic.

Austria: The Austrian Cement Industry Association (VÖZ) has launched a roadmap for carbon neutrality by 2050. The initiative follows the 5C approach of Clinker, Cement, Concrete, Construction and Carbonation as prompted by the European Cement Association, Cembureau. Selected targets from the document include reducing the sector’s average clinker factor to 52% by 2040 from 70% in 2020, using carbon-neutral electricity from 2030 and meeting a recycling rate for concrete and demolition waste of 25% in 2050 from 10% in 2022. Sebastian Spaun, the managing director of VÖZ, highlighted the ‘Carbon2ProductAustria’ (C₂PAT) initiative as a key project where capture CO₂ from Lafarge Zementwerke’s Mannersdorf cement plant will be used with hydrogen to produce synthetic fuels, plastics or other chemicals.

Dominican Republic: First-quarter domestic cement consumption in the Dominican Republic rose by 2.9% year-on-year in 2022. The Dominican Association of Portland Cement Producers (ADOCEM) said that producers’ costs rose year-on-year, particularly in the area of fuels, which accounts for 60% of costs. Electricity prices also rose during the quarter.

Association president Felix Gonzalez said "Without a doubt, energy management is a key point in the economic sphere of a cement plant since it makes this industry very susceptible to deficiencies and high tariffs in the electricity sector, as well as to the continuously increasing costs of oil and its derivatives.”

In 2021, ADOCEM members produced 6.5Mt of cement, up by 27% year-on-year from 5.1Mt in 2020. Full-year consumption was 5.5Mt.

UK: Mannok recorded sales of Euro270m in 2021, up by 16% year-on-year from Euro233m in 2020. The company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 17% to Euro25.8m from Euro31.1m. The group attributed this to substantial cost absorption beginning in mid-2021. Energy prices rose by 66% year-on-year, while the cost of carbon emissions trading scheme (ETS) credits more than doubled to Euro80/t at the end of the year.

Mannok said that demand for its products remains resilient, supported by stronger cost recovery. It added that a levelling out in energy prices has driven stronger profitability in the first quarter and April of 2022.

Germany: HeidelbergCement’s first-quarter sales were Euro4.43bn in the first quarter of 2022, up by 12% year-on-year from Euro3.96bn in the first quarter of 2021. Its cement and clinker sales volumes remained level year-on-year at 28.4Mt. Sales grew in all regions except North America, where they fell by 6% to Euro798m from Euro849m. Cement and clinker sales volumes fell there by 17%, but rose in every other region.

Chair Dominik von Achten said “The first quarter of 2022 was not an easy one for HeidelbergCement. Despite the continuing uncertainties regarding the supply of energy and raw materials and the associated rise in energy prices, we were able to increase our revenue significantly.” Looking to the rest of 2022, von Achten said
”Although there is still a lot of uncertainty concerning energy and raw material availability and costs, we continue to see strong demand for our products in all regions. In particular, demand for sustainable, low-carbon products is growing rapidly.” 


Colombia: Cementos Argos recorded sales of US$642m in the first quarter of 2022, up by 11% year-on-year from first-quarter 2021. The company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 18% year-on-year to US$88.6m. Cement volumes remained level year-on-year at 3.9Mt. Cementos Argos said that higher inflationary pressures impacted costs associated with raw materials, energy, freight and maintenance, but noted its ‘very good price performance’ across all of its regions. It expects the rise in cement prices to a contribute to a reduction in inflationary cost impacts in the rest of 2022.

CEO Juan Esteban Calle said "Demand for our products and solutions remains very healthy and dynamic in all regions. We are operating at full capacity, despite a challenging environment due to global supply chain disruptions and inflation in energetics and raw material costs. In this environment, we are focused on maximising production at our integrated cement plants to meet our customers' growing needs and on executing a pricing strategy that mitigates the impact of inflation.”

UK: The Mineral Products Association (MPA) says it is disappointed that UK-based cement and lime producers have been excluded from the government’s compensation scheme for climate change costs. The association says that the government has, “missed an opportunity to support two essential industries during the current energy crisis, despite other industry sectors - which directly compete with cement and lime - receiving the compensation.”

Under the Department for Business, Energy & Industrial Strategy (BEIS) scheme, some energy intensive industries can apply for compensation from the indirect costs of the UK Emissions Trading Scheme (UK ETS) and Carbon Price Support (CPS) if they meet certain criteria. In the government’s 2021 consultation on the compensation mechanism, energy intensive industries needed to meet at least one of three tests to qualify. However, the MPA says that BEIS later changed this so that they had to pass all three tests and modified the targets.

Diana Casey, Director for Energy and Climate Change at the MPA, said “It is extremely disappointing that having met the criteria set out in the consultation, BEIS has decided to move the goalposts and exclude cement and lime from the scheme. UK manufacturers of all products face higher electricity and gas costs than European competitors, and this decision misses an opportunity to support the competitiveness of the UK cement and lime sectors, both essential foundation industries, especially during the current energy crisis and rapidly rising costs. Reaching net zero and delivering our economic potential requires huge investment from global businesses and it becomes harder to make the case for the UK as a location for such investment if policy costs make operating in the UK uncompetitive.”