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News Italy

Displaying items by tag: Italy

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Holcim acquires Nicem

10 January 2023

Italy: Holcim announced its acquisition of Nicem, Italy's ground calcium carbonate market leader. The group said that it plans to use Nicem's ground calcium carbonate as raw material in production of its ECOPact and ECOPlanet reduced-CO2 cement and concrete range.

Holcim's Europe regional head Miljan Gutovic said “Nicem complements our existing operations perfectly and allows us to further leverage our expertise in green formulation, opening a new source of alternative materials to decarbonise our ready-mix concrete. I look forward to welcoming the employees of Nicem to the Holcim family, whose valuable expertise will help us accelerate green growth.”

Published in Global Cement News
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Bedeschi commissioning clinker handling equipment at Port of Takoradi

26 December 2022

Ghana: Italy-based Bedeschi has installed handling equipment and conveyor lines for a clinker, bauxite and manganese project at the Port of Takoradi. The initiative is now at the commissioning stage. Bedeschi supplied five conveyor belts with a total length of 3km, two A frame type 50/1400 shiploaders and one eco-hopper. The shiploaders and the eco-hopper were delivered fully erected from the manufacturer’s shipyard directly to the client jetty with a dedicated heavy-lift vessel.

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Vecoplan opens Ferrara service and sales office

21 December 2022

Italy: Vecoplan has announced the inauguration of its new Ferraro service and sales office in Emilia-Romagna. The supplier says that the facility has sufficient space for it to work on entire machines. In the future, it will also offer welding services for special components, including rotors.

Vecoplan's services head Jochen Pfeil said “The new warehouse will enable us to increase the availability of our machines and plants."

Published in Global Cement News
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Buzzi Unicem to repay Euro500m loan early

20 December 2022

Italy: Buzzi Unicem's board of directors has elected to exercise an option of early repayment on a Euro500m bond loan. Italian Collection News has reported that the producer will make the payment on 28 January 2023. The bonds have a coupon of 2.1% and will mature on 28 April 2023.

Published in Global Cement News
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Colacem to shut Maddaloni cement storage facility

06 December 2022

Italy: Colacem has issued notices of dismissal to the remaining seven employees at the site of the former Maddaloni cement plant, now a cement storage facility. The Il Mattino newspaper has reported that the producer has offered all workers bonuses in exchange for their resignations.

Cement production at the Maddaloni site in Campania ceased in late 2021, after a period of grinding-only operations following the shutdown of the kiln in 2019.

Published in Global Cement News
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Buzzi Unicem reports weaker demand for cement and concrete in third quarter of 2022

10 November 2022

Italy: Buzzi Unicem’s net sales rose by 18% year-on-year to Euro3.00bn in the first nine months of 2022 from Euro2.54bn in the same period in 2021. Its cement sales volumes fell by 6% to 21.9Mt from 23.4Mt. Its ready-mixed concrete sales volumes dropped by 3% to 8.80Mm3 from 9.05Mm3. The group reported a general slowdown in demand during the third quarter of 2022, particularly in Italy, Eastern Europe and Ukraine. This trend was weaker in the US and sales volumes improved in Central Europe. Buzzi Unicem added that it increased its prices in all regions in the third quarter.

Published in Global Cement News
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Cementir Holding's volumes drop but sales rise in first nine months of 2022

04 November 2022

Italy: Cementir Holding sold 8.2Mt of cement and clinker during the first nine months of 2022, down by 1.7% year-on-year from nine-month 2021 levels. China, Denmark, Egypt and Türkiye all contributed to the decline. Group nine-month revenues were Euro1.26bn, up by 25% year-on-year. Third-quarter 2022 revenues rose most sharply, by 45%, in Türkiye, followed by the US (38%), the Nordic and Baltic region (20%) and Belgium (17%). During the third quarter of the year, operating costs increased by 36% to Euro365m from Euro268m. Raw materials, fuels and transport costs all contributed to the rise.

In the first nine months of 2022, the group recorded earnings before interest, taxation, depreciation and amortisation (EBITDA) of Euro238m, up by 11% from Euro215m during the first nine months of 2021.

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Buzzi Unicem obtains certification for composite cement products in Italy

21 September 2022

Italy: Buzzi Unicem has obtained technical evaluation certification for CEM II/C-M Portland composite cement products to be manufactured at its Trino, Vernasca, Settimello, Guidonia, Barletta and Augusta plants. The new cements will be part of its C-Green product line and the sustainability objectives from its 2030 roadmap. The new products will reduce their clinker factor by using granulated blast furnace slag, fly ash, pozzolan and limestone. They potentially offer up to a 40% reduction in CO2 emissions per tonne compared to CEM I equivalents. They will be available in 32.5 N/R and 42.5 N/R strength classes for a range of applications. The cement producer hopes that the new products will quickly establish themselves in the market and even becoming the “standard cement” in Italy by 2030.

Published in Global Cement News
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First half 2022 update on multinational cement producers

10 August 2022

Second quarter results have been released for many of the European-based cement producers, so we’ll take a look at how they are doing so far in 2022. The general trend for the companies sampled here is that revenue is up, cement sales volumes are down and earnings are varied. Added to this, ready-mixed concrete (RMC) and aggregate sales volumes have risen for most of these organisations. Each producer did well in the US, less well in Europe and differently elsewhere. Concurrently, input costs for raw materials, energy and logistics have been rising and this has been passed on to consumers fairly consistently as price rises.

 Graph 1: Sales revenue for selected European-based multinational cement producers in the first half of 2022. Source: Company financial reports.

Graph 1: Sales revenue for selected European-based multinational cement producers in the first half of 2022. Source: Company financial reports.

Graph 2: Cement sales volumes for selected European-based multinational cement producers in the first half of 2022. Source: Company financial reports.

Graph 2: Cement sales volumes for selected European-based multinational cement producers in the first half of 2022. Source: Company financial reports.

Graph 3: Ready-mixed concrete sales volumes for selected European-based multinational cement producers in the first half of 2022. Source: Company financial reports.

Graph 3: Ready-mixed concrete sales volumes for selected European-based multinational cement producers in the first half of 2022. Source: Company financial reports.

Holcim is currently in a state of transition with responses from regulators on big divestments in India and Brazil expected in the second half of 2022 alongside its diversification into light building materials. Both North America and Europe did well for the group in the first half of 2022, particularly the former, where cement sales volumes rose, unlike the other regions. Asia Pacific was more problematic with inflation and pricing issues reported. Cement demand was also said to be ‘softer’ in China and the Philippines compared to the first half of 2021. The region’s recurring earnings before interest and taxation (EBIT) also fell.

HeidelbergCement’s half-year results were less upbeat with cement sales volumes down by 2.6% on a like-for-like basis, RMC sales volumes stable and aggregates sales volumes up by 1.7%. One point to note here is that HeidelbergCement divested its business in the western US in late 2021 and the graphs above do not show like-for-like changes. However, one reason for the dour tone was that higher input costs had led to a 11.4% drop in the group’s result from current operations before depreciation and amortisation (RCOBD) to Euro€1.53bn. It blamed this on its inability to raise prices sufficiently to counter ‘significantly’ higher costs of energy and transport.

Cemex benefitted from its strong presence in the Americas but even this wasn’t enough to shield it from the negative effect upon earnings of higher energy costs and supply chain disruptions. So, net sales increased in Mexico and the US but operating earnings before interest, taxation, depreciation and amortisation (EBITDA) fell. In Mexico this was blamed on a higher base for comparison in 2021. In the US a declining EBITDA margin was attributed to higher energy costs and supply chain headwinds from maintenance, imports and logistics. Interestingly though, Cemex managed to raise both sales and earnings in its Europe, Middle East, Africa and Asia despite cement sales volumes slipping. It said it was able to do this due to well executed price rises.

Buzzi Unicem reported growth in sales revenue and earnings despite falling cement sales volumes. It attributed this to a ‘strong’ increase in prices. However, it noted that the mounting energy costs had contributed to a decline in its EBITDA margin. Deliveries for the half-year grew in the US, Central Europe, Poland and the Czech Republic. They fell in Italy and, unsurprisingly, Ukraine. Also, despite the growth in deliveries in Poland and the Czech Republic in the reporting period, Buzzi Unicem said that a slowdown in Europe had become evident in the second quarter of 2022 and was particularly evident in Italy, Poland and the Czech Republic. In Ukraine the group reported that activity had resumed at its Volyn plant in the north-west of the country following the Russian invasion in February 2022. The Nikolayev plant, in the south, though continued to remain idle. Sales volumes halved in the country year-on-year. Given the circumstances it seems amazing that they didn’t fall by more frankly.

Finally, Vicat had a tougher time of it than some of the other companies featured here. Its sales revenue grew significantly, as a result of higher prices, but earnings tumbled. The latter was blamed on a high base for comparison in the first half of 2021 and the energy situation. A few non-recurring capital intensive projects at various plants, including the start-up of the Ragland plant’s new kiln in the US, didn’t help either.

Much of the above leaves an uncertain outlook for the second half of 2022. All of the cement producers here expect to increase their sales revenue and raise their prices. Most of them though are rather more circumspect or downright pessimistic about what the state of their earnings will be. The companies covered here are multinational but with a focus on Europe and the US. We have omitted plenty of regional producers elsewhere around the world in this roundup that have already published their results, such as India-based UltraTech Cement or Nigeria-based Dangote Cement. The other big market that is missing is China, where the producers are mostly yet to publish their half-year results. We will return to cover these topics in future weeks.

Published in Analysis
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Buzzi Unicem’s profitability drops except in Czech Republic and Russia in first half of 2022

04 August 2022

Italy: Buzzi Unicem recorded a net profit of Euro88.7m in the first half of 2022, down by 58% year-on-year from Euro210m in the first half of 2021. The group said that its recurring profitability worsened across its markets, with the exception of Russia. It also noted ‘substantial stability’ in the Czech Republic. Its consolidated sales, including those of its Brazilian and Mexican businesses, were US$2.41bn, up by 18% from US$2.05bn.

The group recorded cement sales volumes of 14.2Mt, down by 4.1% from 14.8Mt. Volumes fell by 27% in Eastern Europe and by 28% in Italy, but rose by 27% in Central Europe and by 8% in the US. Excluding Russia, the producer’s fuel costs per tonne of cement rose by 8.8% year-on-year to approximately Euro8.80, and its total energy costs rose by 20% year-on-year to Euro234m.

It implemented continued price rises across all markets except Mexico during the half, with the sharpest rises recorded in Italy and Ukraine.

Published in Global Cement News
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