Displaying items by tag: Germany
Italy: Buzzi Unicem’s net sales remained stable at Euro3.22bn in 2020. Cement sales volumes grew slightly to 29.3Mt and ready-mixed concrete sales fell by 3.1% year-on-year to 11.7Mm3 from 12.1Mm3. The group attributed this to growth in the US and stable markets in Russia and Germany, compensating for weaker trends in Eastern Europe and Italy.
HeidelbergCement identifies five assets to divest
09 February 2021Germany: HeidelbergCement has completed a review of its business and identified five assets to sell. Reuters has reported that the company plans to sell the first of the five assets in early - mid-2021. Chairman Dominik von Achten said that the group would not exit ‘rock-solid’ markets like Northern Europe. He added that Indonesia, where it holds a 51% stake in Indocement, is an ‘important market.’
Von Achten said that the group has made a strong start to 2021, though ‘visibility on future prospects’ remains low. Its focus is on raising the productivity of underperforming assets or selling them. He added that a margin improvement plan in its underperforming North American region is on track.
Cemex to participate in LEILAC 2 decarbonisation project
05 February 2021Germany: Mexico-based Cemex has announced its planned participation in Australia-based Calix and others’ LEILAC (Low Emissions Intensity Lime And Cement) 2 carbon capture and storage (CCS) project at HeidelbergCement’s Hanover cement plant in Lower Saxony. Cemex previously assisted the LEILAC partnership at its first installation at HeidelbergCement’s cement plant in Lixhe in Belgium. The company said that it will contribute to the technology's development utilising its gasification process expertise, leveraging its skills in alternative fuel (AF) consumption and computational fluid dynamic simulation design.
Global head of research and development Davide Zampini said, "Our participation in the LEILAC 2 project is another example of our continued efforts to deliver net-zero CO2 concrete products globally by 2050. We are determined to have a significant direct involvement in research and development efforts pursuing high impact technologies in carbon capture, use, and storage."
HeidelbergCement’s Hanover cement plant to host LEILAC 2 carbon capture and storage installation
03 February 2021Germany: HeidelbergCement, Australia-based Calix and a European consortium have chosen the Hanover cement plant in Lower Saxony for the second phase of the LEILAC (Low Emissions Intensity Lime And Cement) carbon capture and storage (CCS) project. The installation will capture 20% of the plant’s capacity or 100,000t/yr of CO2. The project will take place in three phases, with design completed by June 2021, a complete demonstration installation before the end of 2023 and project completion in 2025. The group previously installed a 25,000t/yr LEILAC CCS system at its Lixhe plant near Liege in Belgium, which completed its test phase in 2020.
Chair Dominik von Achten said, "The LEILAC technology has the potential to enable the cement and lime industries to efficiently capture their process emissions on an industrial scale. The pilot project in Hanover is one of several promising CO2 capture technologies that we are currently testing at full speed within the HeidelbergCement Group."
Holcim Deutschland signs deal for 30,000MWh of offshore wind power for cement plants
02 February 2021Germany: Holcim Deutschland has signed a contract supplying its Lägerdorf and Höver integrated cement plants with 30,000MWh of offshore wind power. The electricity will be supplied by Ane Energy from a number of wind farms.
Górażdże Group buys energy from new solar power plant
02 February 2021Poland: HeildelbergCement subsidiary Górażdże Group has signed a 10-year corporate Power Purchase Agreement (PPA) with BayRa to buy electricity from the forthcoming Witnica solar power plant. The project is the first subsidy-free PPA-backed large-scale solar park in Poland. Due for completion in the first half of 2021, the solar park will be the largest in Poland, with a capacity of 64.6MWp.
“Here is the ultimate proof that photovoltaic power can – without any subsidies - be competitive to conventional energies, even in a European country further north, which still generates 80% of its electricity from coal,” said Benedikt Ortmann, Global Director of Solar Projects at BayWa. Andrea Grotzke, Global Director of Energy Solutions at BayWa added, “This PPA serves as an economic structure for a fixed price hedge against rising electricity costs. Securing energy from solar not only reduces a company’s CO2 footprint. We are convinced that it also results in significant savings on the corporate energy bill.” BayWa has set the goal of constructing solar and wind projects in Poland with a total installed capacity of more than 1GW by the mid-2020s.
Beumer Group technical report updates on Covid-19-led changes
29 January 2021Germany: Beumer Group has published a technical report detailing changes to its operations due to the on-going Covid-19 outbreak. The group says that cement producers in some markets have changed to 50kg to 25kg bags. It also reported an increased rate of digitisation, less personal interaction with customers and an increased reliance on alternative fuels.
Cement head of sales Kay Wieczorek said, "Over past months, Covid-19 has forced us to cope with some changes. This will probably bother us even more in the colder months." He added, "Even if the Covid-19 figures are currently in progress, I am sure that BEUMER Group will come through this crisis pretty well; we just have to be well-prepared for it."
HeidelbergCement discusses Hilal Cement sale
28 January 2021Kuwait/Germany: HeidelbergCement has detailed the reasons behind the sale of its 51% stake in Hilal Cement, which has been led by HeidelbergCement subsidiary Suez Cement since 2016. The group said that the divestment represents the first step in a ‘comprehensive portfolio optimisation’ in line with its Beyond 2020 strategy.
Chief executive officer Dominik von Achten said, “We are pleased with the closing of the transaction in Kuwait.” He continued, “The focus of our portfolio management is the simplification of country portfolios and a prioritisation of the strongest market positions.”
Hilal Cement operates two cement terminals and four ready-mix plants.
ThyssenKrupp’s gambit
27 January 2021There have been two developments from ThyssenKrupp’s ongoing restructuring worth noting by the cement sector in recent weeks. The first is that the Germany-based engineering and steel producer has stopped trying to sell its cement plant division. The second is that Denmark-based FLSmidth is holding serious talks about buying its mining division.
ThyssenKrupp first announced plans for a major restructuring in mid-2019 with an anticipated reduction of 6000 jobs across the business. The sale of its elevator business for Euro17.2bn to private equity was announced in February 2020. Later in May 2020 it then revealed plans to divide its previous business areas into core, dual and multi track segments. Core - including Materials Services, Industrial Components (Forged Technologies and Bearings) and Automotive Technology – would be kept as before. Dual-track – including Steel and Marine – would either be kept as before or considered for consolidation. Multi-track - including cement plant engineering, mining and more – would be sold, added to a partnership or closed. By size, core reported sales of Euro16.1bn (53%) in the company’s 2019 - 2020 financial year, dual-track reported Euro8.8bn (29%) and multi-track reported Euro5.5bn (18%).
Volkmar Dinstuhl, formerly in charge of mergers and acquisitions, was put in charge of Multi-track. By October 2020 he was publicly admitting that the division was planning to “find a solution for all our businesses within the next two years” including cement plant engineering. In the same interview he described the Multi-track division as an internal private equity fund. However, the elevator business sale has been seen by several commentators as giving ThyssenKrupp more freedom around how to conduct its restructuring. Three months later and Handelsblatt, a German business newspaper, reported this week that ThyssenKrupp’s cement plant division may have avoided its multi-track fate. It cited internal communication to employees about what’s been happening with the sale. Principally, orders have picked up in the company’s new financial year, since October 2020, and although a sale has not been ruled out, it won’t be pursued until late 2021 at the earliest. This is potentially good news for the sector as a sign that the market may be improving and definitely good news for those employees working for the division.
As a competitor, FLSmidth would have been expected to be potentially interested in buying either ThyssenKrupp’s mining or cement plant division, or both. So, the only question was, when it made a point of saying publicly that it was in non-binding negotiations to buy mining, what about cement?
Looking at the numbers shows that FLSmidth’s mining division did better than its cement one in the first nine months of 2020 with order take up year-on-year and the mining industry described as being relatively resilient during the coronavirus crisis, with the majority of mines operational across regions. By contrast it pointed out that the cement market was still ‘severely’ impacted by the coronavirus pandemic and that future cement demand was dependent on general economic growth. Acquisition activity in mining certainly seems like the safer bet at the moment. Yet the temptation to neutralise a competitor may have been a strong one. With the mining deal still in progress and the cement sale possibly ended for now, we’ll just have to wait and see. Other buyers for both divisions are no doubt waiting in the wings should circumstances allow.
One final fun fact to consider is that the man put in charge of selling both of ThyssenKrupp’s mining and cement plant divisions, Volkmar Dinstuhl, just happens to be a World Chess Federation (FIDE) recognised International Master. Being good at chess doesn’t automatically confer skill at anything else. Just look at former world champion Gary Kasparov’s political ambitions in Russia for example. Yet, ThyssenKrupp’s elevator division sale has been seen as one of the largest leveraged European buyouts in recent years and has appeared to have bought it some time to mull its options over its cement plant division. With this in mind, any potential buyers for the rest of Multi-track may be wondering just how many moves ahead this seller is thinking.
KHD Humboldt Wedag wins contract with UltraTech Cement for upgrades at multiple plants
26 January 2021India: UltraTech Cement has awarded Germany-based KHD Humboldt Wedag a contract relating to three new kiln lines, one new raw meal grinding plant with two KHD roller presses, and the upgrade of five existing clinker grinding plants with KHD roller presses. KHD said that the engineering and supply of equipment as well as supervisory services related to erection and commissioning, comprised a potential order volume of more than Euro30m. It added that UltraTech Cement and Humboldt Wedag India are currently negotiating with the aim of concluding a corresponding Engineering and Procurement (EP) contract package.