Displaying items by tag: Lehigh Hanson

US: Lehigh Hanson has signed a collaboration agreement with materials technology company Fortera. Under the agreement, the companies will establish a carbon capture and storage (CCS) system at the producer’s 0.8Mt/yr integrated Redding Cement plant in Shasta district, California. The system will produce a cementitious material for use in concrete production. The material will be the first of its kind to be produced at a cement plant.

"This collaboration with Lehigh Hanson will prove the commercial scalability, the quality of the final product, and the competitive economics of the Fortera process," said Ryan Gilliam, chief executive officer and co-founder of Fortera. He added that the Fortera process (ReCarb) has been designed to utilise the existing cement infrastructure, from the quarry to the kiln, but with less CO₂ emissions, lower energy, and lower processing temperatures, leading to 60% lower CO₂ emissions per tonne of product.

Canada: Lehigh Hanson has launched of EcoCem Plus at its Edmonton cement plant in Alberta. The product is a blended Portland Limestone Cement (PLC) made using inter-grinding clinker, fly ash, limestone and gypsum. It is available in Alberta, Saskatchewan and Manitoba. The subsidiary of Germany-based HeildebergCement says it provides strength and durability while reducing the carbon footprint of concrete.

“The motivation behind the EcoCem brand of products is to reduce the embodied carbon of cement and concrete,” said Shawn McMillan, Vice President, Cement for Lehigh Hanson’s Canada Region. “The introduction of EcoCem Plus to the Prairie market builds on our commitment to providing environmentally responsible types of cement that deliver excellent performance while dramatically reducing CO2 emissions.”

Lehigh Cement has also published product and plant-specific environmental product declarations (EPD) for all of its cement products produced at its Edmonton plant.

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.

US: The Portland Cement Association has announced the winners of the Energy Environment Awards 2020. Cementos Argos’ 1.1Mt/yr Harleyville, South Carolina cement plant won the Energy Efficiency Award “by reducing kiln specific heat consumption and increasing the utilisation of the new vertical cement mill,” while CRH subsidiary Ash Grove Cement’s 1.0Mt/yr Midlothian cement plant won the Environmental Performance Award for “operating a whole-tyre burning system utilising a first-in-the-US hot disk system supplied with whole tyres from a nearby tyre recycling company.” Other winners were GCC’s 0.9Mt/yr Odessa, Texas cement plant for Innovation, LafargeHolcim’s 2.2Mt/yr Holly Hill, South Carolina plant for Land Stewardship, Titan Cement's Roanoke Cement Troutville plant for Outreach and HeidelbergCement subsidiary Lehigh Hanson’s 3.2Mt/yr Union Bridge, Maryland plant for Overall Environmental Excellence.

PCA president and chief executive officer (CEO) Michael Ireland said, “America’s cement manufacturers continue to focus on researching and developing new and innovative ways to reduce environmental footprint. The companies receiving these awards are great examples of our industry’s commitment to sustainability and energy efficiency.”

US: The Portland Cement Association (PCA) has announced the winners of its Chairman’s Safety Performance Award for outstanding safety performance in Portland cement production in the US.

The winners were: Cemex USA’s Clinchfield, Georgia and Victorville, California plants; Lehigh Hanson’s Cupertino, California and Tehachapi, California plants; Titan America’s Medley, Florida and Troutville, Virginia plants; LafargeHolcim’s Morgan, Utah and Theodore, Alabama plants; Buzzi Unicem’s Chattanooga, Tennessee plant; GCC of America’s Pueblo, Colorado plant; and Argos USA’s Atlanta, Georgia grinding plant.

PCA chair Tom Beck said, “We’re proud to highlight these top safety performers. Our industry is constantly focused on doing everything possible to assure our employees go home in the same condition as they arrived.”

World: Cement producers are mobilising human and material resources and implementing strategies to keep operations going with the minimum possible impact from the coronavirus. Germany-based HeidelbergCement subsidiary Lehigh Hanson has closed a minority of its facilities and prepared a contingency plan for further reduced operations ‘if conditions worsen.’ Brazil-based Votorantim Cimentos has established a Special Coronavirus Crisis Management Commission to aid communications and emergency response implementation across its facilities. UK-based Quinn has suspended all non-essential travel for employees.

Cemex pushed ahead yesterday and announced that it had sold the Kosmos Cement Company to Eagle Materials for around US$665m. It owns a 75% stake in the company, with Italy’s Buzzi Unicem owning the remaining share, giving it roughly US$449m once the deal completes. Proceeds from the sale will go towards debt reduction and general corporate purposes. The sale inventory includes a 1.7Mt/yr integrated cement plant in Louisville, Kentucky as well as seven distribution terminals and raw material reserves.

The decision to sell assets makes sense given Cemex’s financial results so far in 2019. It reported falling sales, cement volumes and earnings in the first nine months of the year although much of this was down to poor market conditions in Mexico. However, the US, along with Europe, was one of its stronger territories with rising sales. Earnings were impaired in the US, possibly due to bad weather in the southeast and competition in Florida, but infrastructure and residential development were reported to be promising.

Graph 1: Portland & Blended Cement shipments in 2018 and 2019. Source: United States Geological Survey (USGS).

Graph 2: Change in imports of hydraulic cement & clinker to the US in 2018 and 2019 from selected countries. Source: USGS.

United States Geological Survey (USGS) data also supports a picture of a growing US market. Shipments of Ordinary Portland Cement and blended cements grew by 2.4% year-on-year to 66.9Mt for the first eight months of 2019 from 65.4Mt in the same period in 2018. By region growth can be seen in the North-East, South and imports. Declines were reported in the West and Midwest. The states of Alabama, Kentucky, Tennessee – the area where the Kosmos plant is located – saw shipments grow by 4% to 4.77Mt from 4.58Mt. It is worth noting that Louisville is in the north of Kentucky near the border with Indiana, where shipments also grew.

The Portland Cement Association’s (PCA) fall forecast may also have helped Cemex’s decision. Ed Sullivan, PCA Senior Vice President and Chief Economist, said that he expected cement consumption in the US to continue growing in 2019 and 2020 but with a slowing trend into 2021 following general gross domestic product (GDP) predictions. The PCA’s view is that pent-up demand following the recession in 2008 was gone and the economy was gradually weakening. Crucially though it didn’t think a recession was impending. In this scenario Cemex might be taking a medium-term view with regards to the Kosmos Cement Company.

Another more general interesting data point from the USGS was the change in import origins to the US. Imports grew by 11.3% to 66.9Mt in January to August 2019. The top five importing countries and their overall share remained the same but there was some movement between them. Turkish and Mexican imports surged at the expensive of Chinese ones as can be seen in Graph 2. The go-to explanation for this would be the on-going US - China trade war. Cemex is a Mexican company with a strong presence in both the US and Mexico. This change in the make-up of the import market in the US may also have informed its decision to sell Kosmos Cement as it looked at the macro scale.

More generally the US market is looking buoyant in the short to medium term. Plants are being sold like Kosmos Cement to Eagle Cement and the Keystone cement plant in Bath, Pennsylvania to HeidelbergCement and a major upgrade project is underway on the new production line at the Mitchell plant in Indiana. In Cemex’s case, as ever with asset sales, the seller sometimes has to make the hard decision of whether to divest a plant in a growing region to help the business in other places that might not be doing so well. The growth of America’s largest locally owned producer, Eagle Cement, may also give cheer to the US’ current ‘America First’ administration.

US: Union workers at the Keystone Cement plant in Bath, Pennsylvania have started legal action against the company over its sale to HeidelbergCement. The American Federation of Labor and Congress of Industrial Organizations (AFL–CIO) union says that the company must honour its contracts, according to the Morning Call newspaper. It is representing around 132 workers at Keystone’s cement and aggregate operations.

According to the lawsuit, HeidelbergCement’s subsidiary Lehigh Hanson announced in October 2019 that it would not accept or assume the terms of any existing contracts. The union claims that this contravenes a requirement that any new owners or operators of the plant assume the contracts in place at the time of sale. The agreement to sell the plant to Germany’s HeidelbergCement for US$151m was announced in late September 2019. It is subject to regulatory approval.

US: Lehigh Hanson has started construction work on a US$600m upgrade to its Mitchell cement plant. The groundbreaking ceremony follows approval of an air permit by the Indiana Department of Environmental Management (IDEM) in July 2019, according to WBIW radio. The subsidiary of Germany’s HeidelbergCement is building a new production line to replace the existing three lines at the site. Start-up for the line is scheduled for the third quarter of 2022.

US: Staff members at Ash Grove Cement, GCC and Cemex have won awards at the Portland Cement Association’s (PCA) 2019 John P Gleason, Jr Leadership Awards. The awards recognise PCA members who have exhibited leadership in advancing industry programs and initiatives. The scheme is named after John ’Jay’ Gleason, who served as PCA president from 1986 until his retirement in 2007.

Curtis Lesslie, Vice President of Environmental Affairs at Ash Grove Cement, won the Business Continuity award. He has served on the PCA’s Environment and Energy Committee working on numerous environmental initiatives that benefit sustainability and continuity of cement manufacturing. He has promoted information sharing and benchmarking between companies and supported PCA's Occupational Health and Safety Committee as well as the PCA-MSHA (Mine Safety and Health Administration) alliance

David Gray, Market Manager, GCC of America won the Market Development award. The PCA said that he had been a consistent example to industry professionals, customers, and industry associates on how promotion can be both a “fun and rewarding experience.” At the customer level he has raised awareness of the potential gains for cement and concrete in a broad range of construction markets and helped companies and associations create successful promotion initiatives.

Nathan Kimball, Vice President, Safety & Health, Lehigh Hanson won the Young Leaders award. He is an active member of PCA’s Occupational Health and Safety Committee. His work with Mine Safety and Health Administration leaders through information exchange and engagement has helped advance the shared interests of the industry.