Displaying items by tag: HeidelbergCement

Belgium: IKN was presented with the first clinker from a modified calciner and IKN cooler installed at the CBR Cement integrated Antoing plant on 24 December 2020. The cement sector engineering supplier said, “We thank everybody involved for their determination and efforts in this challenging project: in spite of Coronanirus and a tough schedule there was no compromise on safety!” CBR Cement is a subsidiary of Germany-based HeidelbergCement.

Ukraine: The District Administrative Court of Kiev has dismissed Belarusian Cement Company (BCC)’s claim against the government’s Interdepartmental Commission on International Trade for the cancellation of anti-dumping duties on cement. The duties on imported cement are 57% the value of goods from Belarus, 94% from Moldova and 115% from Russia. The commission introduced the tariffs in late May 2019 and they will expire in late May 2024.

The law firm representing third parties Dyckerhoff Cement Ukraine, HeidelbergCement Ukraine, Ivano-Frankivsk Ukraine and CRH subsidiary Podilsky Cement said "The court recognised the need to protect the violated rights of national cement producers in Ukraine from dumped imports of goods to Ukraine.” It added that the imports had caused ‘significant damage’ to national producers.

Iceland: HeildelbergCement subsidiary Sementsverksmidjan has apologised for an incident which caused cement dust to be released from a silo at its terminal in Akranes. An overflow during loading caused the dust to settle on nearby houses. The company collaborated with fire services, utilities companies and residents to tidy up.

The company said, “The incident yesterday was an accident which did not comply with the policy and will of the company or its owners. The company therefore apologises to all those who suffered inconvenience and will do everything in its power to ensure that accidents of this kind do not recur.”

US: HeidelbergCement is considering selling assets in California. Bloomberg News reports that it is working with Morgan Stanley on a potential divestment and it hopes to raise around US$1.5bn. It is reportedly approaching competitors including Martin Marietta Materials, Cemex, CRH, Summit Materials and LafargeHolcim, as well as companies in China and Latin America. The first bids are not expected until early 2021.

The Germany-based building materials company operates three integrated cement plants in California, as part of its Lehigh Hanson subsidiary, in addition to concrete and aggregates units. Divestment of these assets would focus the company instead on markets in the East Coast, Midwest and Canadian regions of North America.

In July 2020 HeidelbergCement announced that it had reduced its value of its assets by Euro3.4bn following a review. It blamed this on reduced demand for building materials due 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.

Norway: The Norwegian Parliament has voted in favour of the government’s proposed grant of funding for industrial scale implementation of full-scale carbon capture and storage (CCS) at HeidelbergCement subsidiary Norcem’s Brevik cement plant. Work on the project is expected to start immediately, with the goal of starting CO₂ separation from the cement production process by 2024. The end result will be a 50% cut of emissions from the cement produced at the plant. The group said that the installation will contribute to its CO2 emissions reduction target of 30% between 1990 and 2025.

Norcem chair and HeidelbergCement Northern Europe regional general manager Giv Brantenberg said, “HeidelbergCement highly appreciates the successful cooperation with the Norwegian authorities. The Brevik CCS project clearly shows the importance of industry and public sector to find common solutions in the fight against climate change.”

HeidelbergCement chair Dominik von Achten said, “We are delighted about the final approval of the Norwegian parliament for our breakthrough CCS project in Norway.” He added, “To meet national and international climate targets, CO₂ separation is an important cornerstone. Our CCS project in Brevik will pave the way for our industry and other sectors.”

Cement scalpers in Tanzania have been threatened with jail time for hoarding cement! The country faced a shortage of cement and other building materials in October 2020 and Prime Minister Kassim Majawali ordered an investigation into the issue following the conclusion of the presidential election earlier that month. Both regional commissioners and the National Prosecution Service have been dragged into the initiative. Director of Public Prosecutions Biswalo Mganga promised to local press that wrongdoers could face up to 30 years in prison for daring to hoard products or distort the market.

Rhetoric aside, the situation is curious given that HeidelbergCement’s local subsidiary, Tanzania Portland Cement, seemed to think in its 2019 annual report, that the country faced a 5Mt/yr overcapacity from integrated and grinding plants compared to a total production base of 10.6Mt/yr. However, the East African newspaper reported that despatches fell to 150,000t in October 2020 from 450,000t in September and August 2020, with a 30% surge in the price in some parts of the country.

In the wake of this, Dangote Cement apologised publicly for failing to communicate a planned stoppage at its Mtwara plant to the wider public. Tanga Cement then denied that its production was down. It said instead that production was at the highest level and that large chunks of its output was servicing government-backed infrastructure projects like the Standard Gauge Railway (SGR) and the Kigongo-Busisi Bridge, which will span the southern end of Lake Victoria. It also blamed a lack of trains on the Tanga-Moshi, which was reopened in mid-2019. It seems reasonable that cement prices might vary quite markedly, even before the profiteers got involved, due to the reasons above. Other issues locally include poor transport links, long distances in a country like Tanzania, the recent election and lingering hiccups from the blockage of imports from Kenya in 2018 that may not have helped either. The investigation continues.

A wider issue here is how much cement production capacity the country and the region can support given a propensity for spikes in prices. As Global Cement has covered previously (GCW456 and prior issues) Chinese producers have been heading into Sub-Saharan Africa over the last decade. Huaxin Cement bought ARM Cement’s assets in Tanzania in May 2020. It renamed the company African Tanzanian Maweni Limestone and then started trial production of clinker at the newly upgraded 0.75Mt/yr Maweni Limestone clinker plant in July 2020. Depending on how long ARM Cement’s former subsidiary was out of action, this one seems unlikely to rock the market too much. Tanga Cement also took the opportunity in November 2020 to say that talks with the government about a new 0.5 – 0.75Mt/yr grinding plant in Arusha were progressing

The proposed 7Mt/yr CNBM/Sinoma ‘mega’ plant is another matter entirely. Most of its output is intended for export but any disruption to local transport links, current or future, could swamp the local market. The export of Chinese infrastructure development around the world through its loan system could offer (occasionally literal) bridging solutions here as cement from a Chinese-backed factory is used to build the transport networks backed by Chinese loans that allow exports to proliferate. Tanzanian President John Magufuli’s comments that the poor terms for a US$10bn Chinese loan supporting a port project could “…only be accepted by a drunken man,” may not have helped international diplomacy. Still, Chinese money is actively getting things built here and elsewhere around the world at a rate previously unheard of.

Returning to the present, it makes a change to highlight a market where cement is truly demanded. A coronavirus-related lockdown may have slowed sales in the first half of 2020 but Dangote Cement estimated that the total market for cement in Tanzania was about 4.2Mt in the first nine months of 2020 and it reported its highest ever orders and dispatches in September 2020. That the country’s prime minister decided to discuss cement prices is a reminder of how important the commodity remains in parts of the world.

Sweden: HeidelbergCement’s subsidiary Cementa has appointed Jörgen Staflund as the plant manager of its integrated Skövde cement plant with effect from the start of 2021. He succeeds Matilda Hoffstedt, who has been in the post since 2010. She has been appointed to the role of Technical Support Manager within HeidelbergCement Group.

Staflund started his career working for Volvo in Skövde before becoming the maintenance manager for Cementa at the Skövde plant. He later worked as the Senior Technical Advisor Cement Operations Northern Europe before becoming the plant manager of Cementa’s Degerhamn plant in 2018 and 2019. He was recently been working on setting up a new concrete plant in Norway.

Egypt: Metallurgical Industries Holding has sold its 18% stake in Egyptian Tourah Portland Cement for just under US$3m. Mubasher has reported that Arab African International Securities (AAIS) acted as broker for the transaction.

In October 2019, the Financial Regulatory Authority (FRA) approved HeidelbergCement subsidiary Suez Cement’s mandatory tender offer (MTO) for 100% acquisition of Egyptian Tourah Portland Cement for around US$33m.

Italy: Germany-based HeidelbergCement is reportedly considering a relocation of its subsidiary Italcementi’s research centre from Bergamo, Lombardy to Heidelberg in Baden Württemberg, Germany. The Italia Oggi newspaper has reported that Italcementi said, "The reorganisation of innovation and product research activities will be concentrated on a global level to better enhance the important skills acquired in Bergamo, making them available to all the countries that are part of the group. The process of relocation to Heidelberg of the research activities will be defined in detail during 2021 and at the same time all the possible solutions for the workers involved will be implemented through internal or external relocation offers."

The proposed move has attracted local resistance. Chamber of Deputies member for Lombardy Maurizio Martina said, “All the institutions, from the national government to the regional council, must promote an initiative to discuss with the owners the choice of moving the HeidelbergCement research centre to the German headquarters. The agreements signed in 2016 were different: we are talking about one of the most important research centres in the world, which brings quality employment and added value to Bergamo and Lombardy, and it is essential to do everything to ensure that it remains in our territory."

UK: The Competition and Markets Authority (CMA) has written to HeidelbergCement subsidiary Hanson UK to express concern and set out actions to prevent a recurrence of a breach of a market data order for “data disclosed which could have been a proxy for Individual Cement Market Data.” The CMA says that on 11 September 2020 Hanson made a payment in error to the Mineral Products Association (MPA) which involved three pieces of information: the payment; relating to MPA subscription fees, remittance advice relating to the payment; and an invoice following the MPA’s querying of the payment. In the view of the CMA each piece of information breached the Cement Market Data Order, because it contained ascertainable cement volume data information.

Hanson has explained that the breach arose due to administrative error.