Displaying items by tag: Mexico
S&P upgrades Cemex to Investment Grade
14 March 2024Mexico: Standard & Poor's (S&P) has raised Cemex's long-term global scale issuer credit rating to Investment Grade (BBB-). The upgrade is attributed to Cemex's robust financial and operating performance, effective deleveraging strategy, and adaptable capital allocation.
The upgrade to Investment Grade marks a significant achievement for Cemex, reflecting its record results and consistent financial performance over several years.
"Achieving an investment-grade credit rating from S&P is a very important milestone for Cemex," said CEO Fernando A González. In 2023, Cemex reported a 25% growth in EBITDA and more than a doubling in Free Cash Flow after maintenance capex.
S&P also elevated Cemex's national scale issue-level rating in Mexico from mxAA to mxAA+.
José María Barroso appointed as CEO of CANACEM
13 March 2024Mexico: The National Cement Chamber (CANACEM) has appointed José María Barroso as its CEO. He will follow on from Jaime Hill Tinoco, the head of Holcim México, in the role, according to the El Financiero newspaper. Barroso’s tenure will cover the 2024 – 2025 period.
Barroso is a graduate of the Instituto Tecnologico de Merida in Yucatan and he also holds a master’s degree in international trade form the same institution. He holds over 40 years of experience in the cement sector working both nationally and internationally for Cemex. He joined Cementos Moctezuma in 2010 as its Sales Director before becoming its Director General in 2018.
Cemex launches clinker micronisation method
05 March 2024Mexico: Cemex has launched a new process called clinker micronisation, developed at its Research and Development Center in Switzerland. The method enables cement producers to lower the clinker factor of their cement by up to 50%, while maintaining its strength. It also offers the additional benefit of allowing concrete users to reduce the proportion of cement in their mixes.
CEO Fernando González said “We are finding new ways to boost our decarbonisation roadmap in the production of cement and concrete. We remain committed to achieving our ambitious 2030 decarbonisation goals on the path to becoming a Net Zero company by 2050.”
Cemex to issue US$322m in sustainable bonds
19 February 2024Mexico: Cemex will issue US$322m-worth of long-term sustainability-linked bonds on 20 February 2024. Noticias Financieras News has reported that the issuance will take place in two series: one of US$117.3m, with a 2.6-year floating rate, and one of US$205.3m, with a 6.6-year floating rate. HSBC will act as the intermediary.
Cemex said “The net proceeds from the reopening of the issues will be used to repay debt, seeking to accelerate the path to an investment grade credit rating."
Cemex and Orcan Energy extend waste heat recovery partnership
15 February 2024Mexico/Germany: Cemex and waste heat recovery (WHR) systems developer Orcan Energy plan to scale up WHR technologies supplied by Orcan Energy at multiple Cemex sites globally. This new multi-site portfolio approach extends an existing partnership, through which the companies trialled Orcan’s systems for electricity generation at Cemex Deutschland’s Rüdersdorf cement plant in Germany.
Cemex’s Europe, Middle East, Africa and Asia regional president Sergio Menéndez said “We already have an initial collaboration with Orcan. Based on the modularity of their solution, Orcan offers the flexibility of both installation and contracts. Thanks to this crucial flexibility, we can adapt to any upcoming changes in our plants. The approach enables us to reduce carbon emissions right now without limiting ourselves in implementing any future technologies such as carbon capture, utilisation and storage. This partnership will help us achieve our sustainability targets and contribute to our aim to use all available heat.”
Orcan Energy’s chief executive officer Andreas Sichert said “We are looking forward to entering this large-scale decarbonisation partnership with Cemex after our initial cooperation in Germany. This step is a testament to Cemex’s forward-looking strategy and the company’s commitment to achieving net zero. For Orcan Energy, this is another milestone in scaling the business internationally with global enterprises. We are proud to be the partner of choice for the cement industry. Our large footprint across the industry shows the economic capability and the technical excellence of our modular and flexible solution, especially in view of uncertain future economic and regulative developments.”
Holcim México to install new grinding unit at Macuspana cement plant
14 February 2024Mexico: Holcim México will invest US$55m in the construction of a new cement mill at its Macuspana plant in Tabasco state. The producer says that the mill will increase the plant's cement capacity by 50% to 1.5Mt/yr. This will lead to an increase in the plant’s total workforce to 300 people.
General director Jaime Hill said "This investment in Tabasco reflects our firm conviction in the potential of the Mexican southeast and our commitment to the sustainable development of the region. Through this expansion, we will not only increase our capacity to supply the states of Tabasco, Chiapas, Campeche, Yucatán and Quintana Roo, but also reinforce our role in the decarbonisation of the construction industry, offering low-emission products like our cements from the ECOPlanet range."
Buzzi grows sales in 2023
12 February 2024Italy: Buzzi recorded consolidated sales of Euro4.32bn in 2023, up by 8.1% from Euro4.32bn in 2022. This came in spite of a 7% year-on-year drop in the company’s cement sales volumes, to 26.3Mt. In its domestic market of Italy, Buzzi raised its sales by 13% to Euro818m. In the US, sales grew by 9.5% to Euro1.74bn, in Mexico by 33% to Euro1.03bn, in Germany by 9.2% to Euro872m, in the Czech Republic and Slovakia by 1.8% to Euro205m, in Poland by 11% to Euro157m and in Ukraine by 43% to Euro85.6m. On the other hand, Buzzi’s sales fell by 5.6% in Luxembourg and the Netherlands, to Euro214m, by 2% in Russia to Euro285m, and by 1.6% in Brazil to Euro394m.
The company said “The increasingly evident effects of monetary restriction, the worsening of consumer and business confidence, and the uncertainties dictated by the growing geopolitical tensions in Ukraine and the Middle East continue to weigh on the international economic framework. In fact, in the last part of 2023, global economic activity weakened further, with international trade contracting in the third quarter.”
Cemex reports sales growth in 2023
09 February 2024Mexico: Cemex reported sales of US$17.4bn in 2023, up by 8% year-on-year from 2022 levels. Meanwhile, the group’s operating earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 20% to US$3.35bn. The producer said that strong product pricing in all markets and slowing costs inflation compounded the positive effects of its growth investment strategy. On a consolidated basis, Cemex’s cement sales volumes fell by 6% to 51.7Mt from 55.1Mt. They rose by 3% in Mexico but fell by 10% in Europe, Middle East, Africa and Asia, by 3% in South and Central America and the Caribbean and by 13% in the US.
Chief executive officer Fernando González said "I am pleased to announce that 2023 is a great year for our company where we delivered not only great results and recovered from the extraordinary inflationary pressures of the last few years, but also continued executing against our ambitious decarbonisation commitments, reducing our CO2 emissions by 4% year-on-year and by 13% since 2020. Despite the significant macro challenges of the last four years, we have proven not only the resilience of our business model but also our ability to pivot and adjust rapidly to changing global conditions. This foundation gives us additional flexibility in capital allocation, where we continue to accelerate investments in our bolt-on growth strategy, initiate a sustainable return programme for shareholders and bolster our capital structure."
Cemex earns CDP climate A rating
08 February 2024Mexico: Cemex has secured a place on environmental non-profit organisation CDP's 2023 A List for its leadership and transparency in delivering CO2 emissions reduction. Since initiating its Future in Action sustainability initiative in 2020, Cemex achieved a 13% reduction in its CO2 emissions up to 2023.
Cemex CEO Fernando González said "We are proud to be part of this prestigious group of climate action leaders and to receive CDP’s A rating, which reflects Cemex’s leadership in climate action and transparency through significant demonstrable actions. In this Decade to Deliver, we are committed to reaching our ambitious decarbonisation goals so that Net Zero is achievable by 2050."
GCC raises sales in 2023
31 January 2024Mexico: GCC’s consolidated sales rose by 17% to US$1.36bn in 2023. The group raised its sales by 30% in Mexico and by 12% in the US, with its regional cement volumes rising by 2.2% and 5.2% respectively. GCC’s earnings before interest, taxation, depreciation and amortisation (EBITDA) also grew, by 31%, to US$472m.
Chief executive officer (CEO) Enrique Escalante said "GCC had an outstanding performance during 2023, achieving year-on-year growth in both top and bottom line. Our record-breaking financial performance was driven by strong client relationships and operational excellence." Looking to 2024, Escalante added "Our focus on executing strategic initiatives and enhancing competitive advantages will fortify our margins, aligning our vision for continued success with our commitment to sustainability."