Displaying items by tag: France

France: Mexico-based Cemex has signed an agreement to buy assets in Paris metropolitan area. The new acquisitions consist of two aggregates quarries and a rail platform. The assets previously belonged to Ireland-based CRH subsidiary Equiom Granulats. The purchase is expected to be completed during the second quarter of 2021.

Europe, Middle East, Africa and Asiaregional president Sergio Menendez said, "This acquisition will allow us to better serve our customers by integrating and complementing our portfolio to provide a comprehensive and sustainable offering, directly aimed at the rapidly growing needs of the North Paris Metropolitan Area." He added "This is a clear example of the efforts that we are doing to foster earning before interest, taxation, depreciation and amortisation growth by investing in key high-growth urban centres worldwide."

France: Hoffmann Green Cement’s consolidated net revenue fell by 19% year-on-year to Euro504,000 in 2020 from Euro620,000 in 2019. Net loss was Euro6.12m, up by 41% from Euro4.34m. Loss in earnings before interest, taxation, depreciation and amortisation (EBITDA) more than doubled to Euro4.13m from Euro1.85m. During the year, the group began construction of its second cement plant, in Vendée, France.

Co-chairs Julien Blanchard and David Hoffman said, “We are happy with what we achieved at Hoffmann Green in 2020, in spite of the pandemic. We signed numerous technical and commercial collaboration contracts with key players in the construction sector such as Groupe GCC, KP1, Cemex and Eiffage Génie Civil, taking our order book to over 190,000t to date.” They reconfirmed the target of a 3% French cement market share by 2025/2026, adding, “The commercial dynamic continues at the beginning of 2021 with the signing of contracts with Ouest Réalisations for the construction of housing, and EdyCem to develop low carbon footprint concretes.”

Blanchard and Hoffmann called 2020 ‘the year of increasing production volumes,’ adding that the group expects on-going and future environmental legislation in all its regions to bolster demand.

News has been dripping out slowly over the last few months about which assets HeidelbergCement is planning to divest. This week reporting from Bloomberg suggested that the German-based building materials producer might be seriously considering selling one or more integrated plants in Spain. The idea is reportedly part of a wider review of its portfolio in the country with the possible inclusion of cement plants at San Sebastian and Bilbao at a future date also. A proposed price of Euro300m for the national business was put forward by the sources to the reporters but it is unclear how many cement plants that figure includes.

HeidelbergCement announced in July 2020 that it had reduced the value of its total assets by Euro3.4bn following a review. It blamed this on reduced demand for building materials due to the coronavirus pandemic and the devaluation of its Hanson subsidiary in the UK, in part related to the UK’s exit from the European Union. A divestment plan followed at its Capital Markets Day event in September 2020 when it said it was simplifying its country portfolio and prioritising the strongest market positions. To this end it said it was setting up a watch list of underperforming assets to keep an eye on.

Over the next few months a number of corporate reorganisations and actual confirmed divestments occurred as well as plenty of speculation. HeidelbergCement-controlled Suez Cement started to acquire a 100% stake in its own subsidiary, Tourah Portland Cement, in September 2020. Suez Cement then sold its majority stake in Kuwait-based Hilal Cement in late January 2021. This week HeidelbergCement Bangladesh informed the local stock exchange that it is planning to amalgamate its subsidiary Emirates Cement.

Signs that European reviews had taken place could be seen later in the autumn of 2020. In November 2020 the Italian press picked up on rumours that HeidelbergCement was planning to move subsidiary Italcementi’s research centre from Bergamo, Lombardy, to Heidelberg in Baden Württemberg. Whether this was ever a serious proposition or not, this appeared to have been avoided in early February 2021 when an Italian union said it had agreed with Italcementi to keep the research centre in Italy as well as a preserving jobs generally. Meanwhile, also in November 2020, France-based subsidiary Ciments Calcia announced a major upgrade at its integrated Airvault cement plant but along with the conversion of two other integrated plants into a grinding unit and a terminal respectively, and changes at the French headquarters at Guervill.

Just before Christmas the bigger speculations started to appear in the press, with a story suggesting that HeidelbergCement was considering selling assets in California, US, with a target price of US$1.5bn for three integrated plants and associated concrete and aggregate units. That story is particularly beguiling given Cemex’s decision this month to reopen a kiln in Mexico to supply cement to the southwest US to meet shortages (See GCW 493)! Incidentally, readers should also note the story this week about a shortage of natural gas exports from Texas, US, that has caused cement plants in northern Mexico to shut down. This week, as mentioned at the start, has seen Spain added to the list of places that HeidelbergCement might be considering selling up in. The Spanish market like Italy has been rationalising heavily over the last decade particularly as export markets have dwindled. Oficemen, the Spanish cement association, reported that domestic cement consumption fell by 10% year-on-year to 13.3Mt in 2020 from 14.7Mt in 2019. On top of this Oficemen has repeatedly warned of the threat that CO₂ emissions prices pose for its members’ exports.

Group chairman Dominik von Achten told Reuters this month that the company plans to sell the first of the five assets in early-to-mid 2021. Of course he wouldn’t say where, except for adding that the company would stay in ‘rock solid’ markets like Northern Europe. Indonesia has been seen as a candidate for disposal by analysts, likely due to local production overcapacity levels and LafargeHolcim’s own departure in Indonesia 2018. All Von Achten would say on the matter was that Indonesia was an ‘important’ market for the group. Whether it’s seen as important for reducing company debt or building value remains to be seen. HeidelbergCement hasn’t exactly been shy about saying what they are doing over the last half year or so but they are only going so far and they won’t comment on speculation. So in the meantime we must wait to find out more.

Europe: Cemex commissioned seven new bolt-on investments across Europe in January 2021. The company says that all of the investments are aligned to its key priorities of climate action, sustainable construction and earnings before interest, taxes, depreciation, and amortisation (EBITDA) growth. They include advances in fossil fuel reduction, lower CO₂ footprint products, circular economy investments and products that demonstrate life cycle CO₂ and energy consumption advantages for buildings. It made various changes at its cement plants, for example the installation of a new alternative fuel (AF) system in the Czech Republic. In France and the UK, it made circular economy and recycling improvements, and shifted to lower-CO₂ cement production in Croatia and lightweight concrete production in Spain. Additionally, it made efficiency upgrades to sites in Spain and the UK.

Europe, Middle East and Africa regional president Sergio Menendez said, “We have made a strong start to our 2021 ambitions to both grow our business and improve our climate impact. In 2020, we achieved our ambition of a 35% reduction in our CO₂ emissions compared to our 1990 baseline in Europe. We are also the first company in our sector to align our Europe operations to the EU aspiration to reduce CO₂ emissions by at least 55% by 2030. These investments represent further advances towards this 2030 target, as well as to deliver net zero CO₂ concrete globally by 2050.”

France: Vicat recorded full-year consolidated sales of Euro2.81bn in 2020, up by 2% year-on-year from Euro2.74bn in 2019. Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 6% to Euro557m from Euro526m. Consolidated net income rose by 8% to Euro172m from Euro160m.

The group said that organic sales were ‘strong,’ rising in all regions except in France, by 6% in total. It attributed the decline to a near-total shutdown due to the coronavirus outbreak in mid-March 2020, which lifted incrementally throughout the first half of the year. Vicat France’s cement business recovered ‘robustly’ in the second half of 2020, resulting in an operational sales increase of 3% for the year. Full stoppages of activity lasted for 33 days in India and for 30 days in Italy. Despite these challenges, business growth, cost-cutting and lower energy costs drove earnings growth, with ‘very sharp improvements’ recorded in the Americas and in Asia. Additionally, the ramp-up of a new grinding plant in Mali and production performance improvements in Senegal supported a ‘significant’ earnings increase in Africa.

Chair and chief executive officerGuy Sidos said, “Thanks to our employees’ tremendous efforts and commitment, the Vicat group strengthened its position amid the unprecedented current pandemic situation. Our resilience and flexibility allowed us to make organisational changes in order to reconcile our competing imperatives of keeping everyone safe and healthy, unlocking savings and making rapid adjustments, such as relocating our Paris head office to L’Isle d’Abeau in the Auvergne-Rhône-Alpes region. Likewise, we made improvements to Vicat’s governance and stepped up our environmental and digital transformation programmes. Given the strength of our cash generation, we were able to resume key productivity investment programmes for the future. Despite the adversity we faced, our teams across all our various regions successfully delivered higher production efficiency levels and met market demand cost-effectively, paving the way for a solid increase in the Vicat group’s results.”

In 2021, the group plans to expand cement production and invest in new cement terminals in India and to continue with the upgrade of its Ragland cement plant in the US. It also says that it will ramp up projects aimed at meeting its carbon footprint reduction targets. The group expects its earnings to rise at constant scope and exchange rates over the full year.

US: France-based Vicat subsidiary National Cement Company of Alabama has completed the installation of a new 5000t/day clinker line at its Ragland, Alabama cement plant. The line has a raw meal capacity of 13,000t.

Vicat engineering senior vice president Jean-Claude Brocheton congratulated the installation team on the ‘major step’ and on completing the work ahead of schedule.

France: LafargeHolcim subsidiary Lafarge France plans to stop cement production at its integrated Contes cement plant in Alpes-Maritimes department and convert the site into a terminal instead. France Bleu radio has reported that the company has announced the loss of 65 jobs. The company promised to take measures to avoid forced redundancies, including offering positions at other Lafarge France sites and help with retraining. The union representing workers at the plant says that the total number of jobs at risk is 300. The producer said that its Bouc-Bel-Air (La Malle) integrated cement plant in Bouches-du-Rhône department near Marseille will provide jobs for truck drivers and subcontractors. It said, “This will require additional industrial maintenance and increase logistics needs. These jobs are not threatened, they should even develop."

Six workers will stay on at the Contes facility after the end of cement production.

France: HGH Group has appointed Vincent Leboucher as president. He succeeds Thierry Campos who is retiring after being in the post since 2001.

Leboucher, aged 40 years, graduated from the Institut d'Optique Graduate School in 2002 and joined HGH in 2003 as an electro-optics engineer. His progression within the company saw him take on the position of Head of Research & Development in 2010 and Deputy General Manager in 2018.

During Campos’ time leading HGH the company launched its Wide Area Surveillance product line and the development of its international sales with growth in Asia and North America. In 2016, HGH acquired the electro-optics test and measurement specialist Electro Optical Industries in California, US. Then in 2018 the Carlyle Group acquired a majority stake in the group.

HGH was founded in 1982. It develops and sells optoelectronic and infrared systems and software for surveillance applications, test and measurement and industrial thermography in different end-markets. The company operates two research and development and assembly sites in the Optics Valley near Paris, France and in California, US. The company provides solutions to clients across 40 countries through two recognised brands, HGH Infrared Systems and Electro Optical Industries (EOI).

France: Fives has refurbished a rotary kiln at SOKA’s (Société Kaolinière Armoricaine) kaolin plant at Quessoy. Work on the project included: implementing a new nose-ring fitted with a downstream seal, to reduce false air flow and improve brick-lining lifetime; machining the tyres, replacing of the rollers and installing a new lubrication system, to improve the kiln scanning and enable an homogenous wear of the contact areas; and installing a grease spraying system fitted with a new girth gear housing to prevent advanced wear initiated by grease contamination. SOKA specialises in the extraction, processing and calcination of raw kaolin, refined kaolin and calcined kaolin in France and Ukraine.

France: Mexico-based Cemex has sold 24 concrete plants and an aggregates quarry in southeast France to Switzerland-based LafargeHolcim. Finalisation of the deal is expected in April 2021 and no approval by competition bodies is required. No value for the sale has been disclosed. The group said that the divestment is part of its strategy of focused portfolio development into high-growth markets.