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Huaxin Cement revealed this week that it is buying Holcim’s majority stake in Lafarge Africa for US$1bn. The moment marks a big step in the China-based cement producer’s international ambitions. It has been linked in the financial media to many divestments around the world in recent years. Yet this appears to be its largest acquisition so far and it adds to what is becoming a serious sized multinational business in Sub-Saharan Africa.

The details of the deal are that Holcim has agreed to sell its 83% share of Lafarge Africa to Huaxin Cement. Lafarge Africa operates four integrated cement plants in Nigeria at Sagamu and Ewekoro in Ogun State, at Mfamosing in Cross River State and the Ashaka Cement plant in Gombe State. It has a combined production capacity of 10.5Mt/yr. The transaction is expected to close in 2025 subject to regulatory approvals.

Holcim holds a relationship with Huaxin Cement that dates back to the late 1990s when it first bought a stake in the company. Following the formation of LafargeHolcim in the mid-2010s, Lafarge’s subsidiary Lafarge China Cement was sold to Huaxin Cement. At the end of 2023 Holcim reported that it owned just under a 42% share in the company. Huaxin Cement has also bought assets from Holcim as the latter company has divested subsidiaries over the last decade. In 2021 it bought Lafarge Zambia and Pan African Cement in Malawi from Holcim. This adds to other acquisitions in the region. In 2020 it purchased African Tanzanian Maweni Limestone from ARM Cement. Later in 2023 it picked up InterCement’s subsidiaries in Mozambique and South Africa. In addition, in October 2024 local media in Zimbabwe reported that the company was planning to build a grinding plant. Now, throw in the plants in Nigeria and Huaxin Cement is the second biggest cement producer in Sub-Saharan Africa after Dangote Cement.

Huaxin Cement said it had an overseas cement grinding capacity of just under 21Mt/yr at the end of 2023. However, this figure included plants in Cambodia, Kyrgyzstan, Nepal, Oman, Tajikistan and Uzbekistan. Data from the Global Cement Directory 2024 suggests that the company now has 10 integrated cement plants in Sub-Saharan Africa with a cement capacity of around 18Mt/yr. It also operates a number of grinding plants in these countries.

The Lafarge Africa deal is significant because a mainland China-based cement producer has finally hit the US$1bn window in merger and acquisition (M&A) activity overseas. Many potential acquisitions in the sector are linked by the press to Chinese companies these days. However, most of the activity to date has been of a plant-by-plant or piecemeal nature. Alternatively, these companies have been building their own plants around the world as part of the Belt and Road Initiative. Taiwan Cement Corporation (TCC) has spent more buying itself into Türkiye-based OYAK Cement since 2018 but it is headquartered in Taipei.

The question from here is how much further does Huaxin Cement plan to expand both in Africa and beyond? The obvious answer is that it will keep going given the state of the cement sector back home in China, the retreat of the western multinationals and the demographic trends in the region. World population growth is predicted to be fastest in Africa in the coming decades and demand for cement should follow. Outside of Africa, the ‘big’ one recently has been InterCement in Brazil. Unfortunately for Huaxin Cement though, InterCement extended its exclusivity deal with Companhia Siderúrgica Nacional (CSN) in November 2024. If the Lafarge Africa transaction completes then it will be the biggest deal yet and it will welcome a China-based cement company to the big league of international M&A. It may just be the start.

Philippines: The Consunji Group has appointed Herbert M Consunji as the president and CEO of Cemex Holdings Philippines (CHP). The group completed its acquisitions of CHP from Cemex in early December 2024, according to the Manila Bulletin newspaper. It plans to change the name of the company to Concreat Holdings Philippines subject to the approval of shareholders at a meeting to be held in February 2025.

Consunji is the Executive Vice President, Chief Finance Officer, Chief Compliance Officer and Chief Risk Officer of DMCI Holdings, part of Consunji Group. He concurrently sits on the board of various DMCI Holdings subsidiary companies. He is a certified public accountant and he graduated from De La Salle University in Manila with a degree in commerce majoring in Accounting.

Germany: Heidelberg Materials has appointed Gün Burak Günbey as Senior Project Manager at its Competence Center Cement global research and development hub.

Günbey has worked for the cement sector since the late 2000s. He has held engineering, project management and investment roles at OYAK Bolu Çimento, Limak Cement and Vicat. He became the Group Investment Manager for Vicat Group Türkiye in 2021 and subsequently worked as Project Expert for VICAT Senegal Sococim from 2023.

Germany: thyssenkrupp Polysius has appointed Philip Glörfeld as Head of Business Development & Sales. He will succeed Lukas Schoeneck in the role from the start of January 2025. Schoeneck became the head of Operating Unit Green Solutions in October 2024.

Glörfeld has worked for thyssenkrupp since 2015 in business development roles. In 2020 he became the Director Business Development & Sales Europe, Africa & CIS for the Polysius business unit that later became thyssenkrupp Polysius. Prior to his time at thyssenkrupp he worked at Siemens. He is a graduate from the Steinbeis Hochschule Berlin and holds a master of business administration from the University of Plymouth.

US: Sublime Systems has completed negotiations with the US Department of Energy for a US$87m grant to build a ‘clean’ cement manufacturing plant in Holyoke, Massachusetts. The company will now commence site engineering, design and permitting. The Holyoke plant will demonstrate full-scale operations of its cement manufacturing process when production begins in 2026. Sublime Systems expects to create 70 - 90 jobs once its new plant is operational.

Australia: Suvo Strategic Minerals has been offered an opportunity to field test its lower carbon cement made from kaolin in the Victorian government's level crossing removal project (LXRP). This trial aims to evaluate Suvo’s cement formulation, which the company hopes can reduce up to 70% of Portland cement typically used in construction.

The company utilises ‘hydrous’ kaolin from its Pittong operation, located 40km west of Ballarat, Victoria, in producing this cement. The LXRP trial will allow Suvo to demonstrate the feasibility of using their product in real-world infrastructure projects, with help from the government to navigate the commercial and technical approval processes to introduce its cement product to the market.

Thailand: At COP29 in Azerbaijan, the Thai Cement Manufacturers Association, in collaboration with the Department of Climate Change and Environment, the Global Cement and Concrete Association and United Nations Industrial Development, showcased the achievements of the ‘Saraburi Sandbox’ project. Notable successes include more than 80% of construction projects in Saraburi now using hydraulic cement, the cement industry increasing its use of alternative fuels and renewable energy to 26%, and a pilot project for growing crops like Napier grass for use as alternative fuels in cement production. These developments are key to implementing the Thailand 2050 Net Zero Cement and Concrete roadmap.

Pakistan: In November 2024, there was a 6% increase in total cement despatches, reaching 4.15Mt compared to 3.93Mt in November of the previous fiscal year, according to the All Pakistan Cement Manufacturers Association (APCMA).

Local cement despatches during November 2024 were 3.34Mt, reflecting a 2% year-on-year increase from 3.27Mt in November 2023. Exports rose by 21% year-on-year, from 662,374t in November 2023 to 803,258 tonnes in November 2024. However, the first five months of the current fiscal year saw a 5% decline in total cement despatches, amounting to 18.8Mt, down from 19.8Mt during the same period last fiscal year. Domestic despatches fell by 12% to 14.8Mt, while exports experienced a 29% year-on-year increase, reaching 4.02Mt.

An APCMA spokesperson noted that domestic cement sales could improve if the government reduced duties and taxes, which would lower consumer costs and boost demand, helping to utilise the sector's idle capacity.

Portugal: Cimpor recently celebrated the 50^th anniversary of its Souselas plant, which has been operational since November 1974. The plant was initially launched with a production capacity of 500,000t/yr of clinker, but has since adapted to meet market demand.

Throughout its five decades of operation, the Souselas plant has produced over 69Mt of clinker and processed approximately 667,000t of alternative fuels. Current projects include the rehabilitation of Line 2 for producing calcined clays, installing photovoltaic plants and focusing on co-processing and heat recovery initiatives, with the aim to achieve carbon neutrality by 2050. The anniversary event showcased recent projects, such as the installation of a 1MW photovoltaic plant and the planned introduction of a 10MW plant by 2025. Additionally, a 7.4MW waste heat recovery system will commence operation in February 2025 and a 10MW hydrogen plant is scheduled for 2026.

Norway: SLB Capturi has reached mechanical completion of the carbon capture unit at Heidelberg Materials' cement plant in Brevik. The unit includes the carbon capture system, compression system, heat integration system, intermediate storage, and loadout facilities. The plant is now ready for testing and commissioning. The carbon capture plant is designed to capture up to 0.4Mt/yr of CO₂ from one production line at the cement plant. When operational, this world-first commercial-scale carbon capture plant at a cement plant will enable production of an amount of net-zero cement, without compromising on the product strength or quality. SLB Capturi is a joint venture between SLB and Aker Carbon Capture.

"Reaching this milestone is a testament to the power of working together and the collective determination to make a positive climate impact," said Egil Fagerland, CEO of SLB Capturi. "We look forward to continuing these collaborative efforts as we move toward the commissioning and operational phases of the project. The Brevik CCS plant sets a precedent for future carbon capture initiatives, where learnings and insights from this groundbreaking project enable others to follow."

"The mechanical completion of the Brevik CCS project is a landmark achievement in the decarbonisation journey of the cement industry,” said Giv Brantenberg, general manager Northern Europe, Heidelberg Materials. “This project exemplifies our commitment to innovation, collaboration, and the pursuit of solutions that address the pressing issue of climate change. We are immensely proud of the dedication and hard work of our teams and partners who have made this possible."