Displaying items by tag: Holcim

Boral announced this week that it had secured around US$15m from the Australian government towards decarbonisation upgrades at its Berrima cement plant in New South Wales. The funding will go towards the company’s own investment in a kiln feed optimisation project. A new specialised grinding circuit and supporting infrastructure at the site is intended to increase the proportion of alternative raw materials (ARM) from 9% to 23% to decrease the amount of limestone the kiln uses. The use of more ARMs should also enable the unit to reduce its energy intensity. Boral plans to use ARMs including granulated blast furnace slag, steel slag, cement fibre board, fly ash and fine aggregates from recycled concrete. Commissioning and full operation of the changes are scheduled for 2028.

The Berrima plant officially opened its last set of changes, including a chlorine bypass unit, in December 2024. This was done to allow the plant to reach a thermal substitution rate (TSR) of 60% by the end of 2027. At the end of 2024 the company said it had a TSR of 30% having risen by 20% from 2023. Another similar decarbonisation project at the plant is a carbon capture and storage demonstration pilot trial involving the recarbonation of construction and demolition waste.

Parent company SGH said in its annual report for 2024 that Boral was continuing to advocate for a carbon border adjustment mechanism (CBAM) to prevent carbon leakage and that it had taken part in the ongoing government review on the issue. This lobbying was visible earlier in March 2025 when the Cement Industry Federation (CIF) publicly addressed the government on the issue ahead of its next budget. It asked that carbon leakage be addressed in the form of an import tax to protect the local cement and lime sector. Cement and lime imports from Thailand, Malaysia, Indonesia, Vietnam and Japan are particularly seen as an issue. The government review into carbon leakage started in 2023 and is due to report back at some point in 2025, most likely after the parliamentary election in May 2025.

Another big sector news story to note is the ongoing acquisition of the cementitious division of the Buckeridge Group of Companies (BGC) by Cement Australia that was revealed in December 2024. Unsurprisingly, the European Commission (EC) approved the deal in late March 2025. Cement Australia’s parent companies Holcim and Heidelberg Materials are headquartered in Europe, but the EC concluded that the planned transaction was unlikely to dampen competition in Europe. The verdict of the Australian Competition and Consumer Commission (ACCC) is likely to be far more telling. It closed taking submissions on the proposed deal in late February 2025 and plans to release an update in May 2025.

The ACCC’s market inquiries letter reported that Cement Australia wants to run BCG Cement. However, under the acquisition proposal, BGC Quarries and BGC Asphalt will be acquired and operated by a new 50:50 joint venture between Holcim and Heidelberg Materials, which will operate as a production joint venture in respect of aggregates. Holcim and Heidelberg Materials have suggested taking four ready-mixed concrete (RMC) plants each in the greater Perth area. Finally, one RMC plant at Wangara could be divested due to the close proximity of existing plants run by Holcim and Heidelberg Materials. Whether this is what actually happens remains to be seen.

Finally, Holcim flagged-up Australia this week as one of the regions it intends to derive ‘profitable growth’ from after the planned spin-off of the US business. This approach is in line with the hunt by the big building materials companies for new growth markets as the cost of merger and acquisition activity in the US has risen. CRH, for example, bought a majority stake in AdBri in mid-2024. Further merger and acquisition activity in the cement sector in Australia seems less likely given its relative small size. Yet the higher economic growth forecast for the country compared to Europe is likely to keep multinationals interested.

Nigeria: The Senate has directed the Bureau of Public Procurement to halt the planned sale of Lafarge Africa to Chinese producer Huaxin Cement on ‘national security and economic sovereignty grounds’, according to the This Day newspaper. Concerns have reportedly been raised that the deal could lead to capital flight, job losses and reduced regulatory oversight over a sector vital to national development.

Holcim, which owns an 84% stake in Lafarge Africa, initially announced the company’s sale to Huaxin Cement for US$1bn in December 2024. The transaction is set to complete in 2025, pending regulatory approvals.

Senator Shuaib Afolabi Salisu said “We cannot afford to wake up one day and realise that our cement industry, one of the backbones of our economy, is entirely in foreign hands. We must ensure that strategic assets like Lafarge Africa remain in the hands of those who have the country’s best interests at heart.”

Senator Olamilekan Adeola said “The company is about to be divested and the transaction has been shrouded in secrecy. What the motion is simply asking for is that we want this transaction to be as transparent as possible. By the time the eventual sale of this company is done, we will be fully satisfied that Nigeria’s economy will be protected.”

China: NovaAlgoma Cement Carriers has confirmed an order for a 38,000t methanol dual-fuel pneumatic cement carrier by Zhejiang Xinle Shipbuilding, for delivery in 2027.

The vessel will be chartered under a long-term contract by Holcim. Other features include an air lubricating system and a waste heat recovery system, which will recycle exhaust gases to generate electricity.

“By increasing the quantity intake and burning green methanol, the CO₂ emissions on these shipments will be reduced by more than 60% per year in comparison to current freight flows, ie 0.18Mt of CO₂ reduction over a period of 10 years,” NovaAlgoma said.

Switzerland/US: Holcim has appointed the designated executive leadership team for its planned Amrize spin-off company in the US. Jan Jenisch will be the new company’s chair and CEO and Ian Johnston will be the Chief Financial Officer (CFO).

Other roles include: Jaime Hill as President of Building Materials; Jake Gosa as President of Building Envelope; Nollaig Forrest as Chief Marketing and Corporate Affairs Officer; Steve Clark as Chief People Officer; Denise Singleton as Chief Legal Officer & Corporate Secretary; Sam Poletti, Chief Strategy and M&A Officer; Mario Gross as Chief Supply Chain Officer; and Roald Brouwer as Chief Technology Officer.

Jenisch has been a member of the board of directors of Holcim since 2021 and has worked as its chair since 2023 and as its CEO from 2017 to 2024. Before joining Holcim, Jenisch was the CEO of Sika from 2012 to 2017.
Johnston currently serves as CFO for Holcim North America. Prior to this he held the same role for the business in the US and Canada.

Jenisch said “Our leadership team includes key Holcim leaders who have played instrumental roles in the success of our business, as well as new leaders from top US companies with strong North American market expertise.”

Australia/Europe: The European Commission (EC) has approved a deal that will see Heidelberg Materials and Holcim acquire joint control of Australian business BGC Cementitious via their joint venture Cement Australia. BGC Cementitious, the cementitious division of the Buckeridge Group of Companies, is active in the cement, concrete, quarrying, asphalt and transportation sectors. The EC concluded that the planned deal would not hurt competition given the limited impact on the European Economic Area. The transaction includes, among others, the Kwinana Cement plant in Western Australia. Financial details of the deal were not disclosed.

UK: Aggregate Industries has rebranded as Holcim UK. The company operates over 200 sites across the UK with 4000 employees. Following 20 years as a UK-based subsidiary of Holcim Group, the new direction sees the business align more closely with its Swiss-based parent company, which operates across 70 countries and employs over 60,000 people worldwide.

Holcim UK CEO Lee Sleight said “Our evolution from Aggregate Industries to Holcim UK is much more than a rebrand. It represents a commitment to leading the sector towards a more sustainable future through a commitment to innovation and collaboration.”

Europe: 77 decarbonisation projects (including 14 for the cement sector) have signed grant agreements under the Innovation Fund 2023 Call (IF23), following the announcement of results in October 2024. The cement projects, spanning nine European countries, will begin operations between 2025 and 2029.

The funding, sourced from the EU Emissions Trading System, provides grants ranging from €4.4m to €234m, supporting projects expected to avoid 118Mt of CO₂. The total 77 projects funded have the potential to reduce emissions by around 398Mt of CO₂ equivalent over their first 10 years of operation. The projects funded in the cement industry mostly involve carbon capture and storage (CCS). Among the selected CCS projects are Carbon2Business in Germany, Olympus in Greece, Go4Zero in Belgium and Cementir’s Accsion project in Denmark.

Cement producers based in North America and Europe reported stable revenues and growing earnings in 2024. Revenue growth at scale could be found in India and Sub-Saharan Africa. Notably, India-based UltraTech Cement’s sales volumes of cement surpassed those of Holcim’s. Yet, the European-headquartered multinationals were mostly happy due to increased earnings. Holcim lauded record performance in 2024, for example, and Heidelberg Materials reflected upon “a very good financial year.” This review of financial results looks at selected large heavy building materials companies, outside of China, that have released financial results so far.

Graph 1: Sales revenue from selected cement producers in 2023 and 2024. Source: Company reports. Note: Figures calculated for UltraTech Cement, consolidated data from Ambuja Cement used for Adani Cement.

Holcim’s net sales may have dropped on a direct basis from 2023 to 2024 but its focus is on earnings. Its recurring earnings before interest and taxation (EBIT) rose by 4% year-on-year to US$1.31bn in 2024 from US$1.26bn in 2023. And the changing nature of where its earnings come from in recent years has led to the impending spin-off of the US business, scheduled to occur by the end of the first half of 2025. The company will be called Amrize and will be listed on the New York Stock Exchange, with an additional listing on the SIX Swiss Exchange. By product line, sales were down for cement, ready-mixed concrete (RMX) and aggregates, but they were up for the group’s Solutions & Products division. Despite this earnings were up for all four product lines. By region sales fell in North America, Europe and Asia, Middle East & Africa. They rose in Latin America. For reference, North America and Europe are the group’s two biggest segments.

Heidelberg Materials’ sales revenue remained stable in 2024 on a direct basis, although it dipped slightly on a like-for-like comparison. Its result from current operations before depreciation and amortisation (RCOBD) grew by 6% to US$3.4bn. Geographically, revenue in Europe and Asia Pacific fell. RCOBD increased, notably, by 19% to US$4.80bn in North America. It grew everywhere else apart from Africa-Mediterranean-Western Asia. As is becoming customary for Heidelberg Materials, it made a point of highlighting its sustainability progress. This includes demonstrating progress towards its sustainable revenue target and reminding markets that the delivery of its first carbon captured net-zero cement evoZero product is planned during 2025. The group plans to release its 2024 full annual report at the end of March 2025.

Graph 2: Cement sales volumes from selected cement producers in 2023 and 2024. Source: Company reports. Note: Annualised sales volumes provided for CRH, figures calculated for UltraTech Cement.

CRH’s strength in North America gave it both rising revenues and earnings. Sales revenue from its Americas Materials Solutions division reported 5% growth to US$16.2bn in 2024. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) sprung up by 22% to US$3.75bn. Revenue growth was attributed to price increases and acquisitions. Earnings growth was pinned on growth across all regions, pricing, cost management, operational efficiency and gains on land asset sales. Despite this, reported volumes in the division were down in 2024. The group’s International Solutions division performed more in line with its competitors, with revenue down slightly but earnings up. Lastly, CRH’s annualised sales volumes of cement grew in 2024. This is likely primarily due to the group’s acquisition of assets in Australia.

Cemex had a tougher time of it in 2024, compared to the previous three companies, with both sales revenues and earnings down. Sales and earnings were down on a direct basis for each of its three main regions – Mexico, the US, and Europe, Middle East, and Africa - although the picture was better in Mexico on a like-for-like basis. Sales volumes of cement, RMX and aggregates were either static or down in each of these areas. In the US the group may have been unlucky as it took an earnings hit from four hurricanes and a deep freeze in Texas. Group earnings improved in the fourth quarter of 2024. In spite of this it introduced ‘Project Cutting Edge’ in February 2025, a three-year, US$350m cost saving exercise.

The first takeaway from UltraTech Cement’s performance in 2024 is that a second (mainly) national producer has overtaken the multinationals. This happened with several China-based cement producers over the last decade. Now it has occurred in India with Ultratech Cement. It reported sales volumes of 120Mt in the 2024 calendar year. Shifting to the Indian financial calendar, Ultratech Cement ‘s revenue rose slightly in the nine months to 31 December 2024 but its new profit fell by 19% year-on-year to US$458m. Local press has blamed this on weak price realisations despite sales volumes growing. At the same time its energy costs have fallen so far in its 2025 financial year. Adani Cement, meanwhile, reported strong growth in both revenue and earnings in the 12 months to 31 December 2024. It too is likely to become one of the world’s largest cement producers by sales volumes by 2030, outside of China, if it follows-through on its expansion targets.

Finally, Dangote Cement reminded us all what growth really looks like as the Nigerian market started to rebound. Sales revenue increased by 62% to US$2.39bn and EBITDA by 56% to US$591m. Despite high domestic interest rates in Nigeria the group managed to grow its sales volumes of cement. Elsewhere in Sub-Saharan Africa sales volumes declined a little due to bad weather conditions in Tanzania and election uncertainties in Senegal and South Africa.

The importance of the US market for many multinational cement producers continued in 2024. However, this reliance on one place can carry risks, as Cemex’s results seem to suggest. Another reminder of this occurred this week when the US government imposed 25% tariffs on Canada and Mexico. The Portland Cement Association said in a statement, “The US cement industry would like to work with the administration to address federal laws and regulations that prevent American cement companies from increasing production, making it necessary for the US to import some 20% of its total cement consumption annually - including from Canada and Mexico.” Elsewhere, markets are changing as mega-markets such as India and Sub-Saharan Africa unleash their potential. China-based Huaxin Cement, for example, may start to gain a place on international round-ups like this one in 2025 when it completes its acquisition of Lafarge Africa.

Switzerland: Holcim has announced its 2024 financial results, reporting record performance with full-year net sales of €28.2bn and an operating profit of €4.9bn. The company increased its use of recycled construction demolition materials by 20% to 10.2Mt. The planned listing of its North American business remains on track for completion by the end of the first half of 2025.

Holcim's net sales in the cement sector reached €14bn. In North America, net sales were €6.8bn despite challenging market conditions. Latin America achieved its 18th consecutive quarter of profitable growth, with net sales of €3bn. During the year, there were four acquisitions to enter the new market of Peru and expand operations in Mexico and Guatemala. The Asia, Middle East and Africa region reported net sales of €3.85bn, driven by growth in Australia and North Africa, alongside four divestments completed in 2024. The Solutions and Products sector continued its profitable growth, with net sales of €6.3bn, primarily due to increased sales of its advanced roofing systems. Sustainable building solutions contributed to profitable growth in Europe, with net sales of €7.7bn

In the fourth quarter of 2024, Holcim's net sales were €6.9bn, a 1.6% increase compared to the same period in 2023. The company remains optimistic about 2025, with a strong outlook across all business segments.

North America: Switzerland-based Holcim has announced the name for its upcoming spin-off of its North American operations: Amrize. Amrize will operate as an independent public company and a leader in the North American building materials sector ‘from foundation to rooftop.’ Holcim says that the new name combines the business’ values and vision of ‘ambition’ and ‘rising.’ A spin-off on the New York Stock Exchange and SIX Swiss Exchange is scheduled for completion before 30 June 2025, pending shareholder and regulatory approvals.

Holcim Chair and designated Chair and CEO of Amrize Jan Jenisch said "This is an exciting time for construction in North America, with the ongoing modernisation of infrastructure, the reshoring of manufacturing and the opportunity to bridge the housing gap with the most advanced building solutions. With our planned spin-off of Amrize, we aim to be the partner of choice for our North American customers and unlock value for all our stakeholders.”