Displaying items by tag: Mexico
GCC records strong 2021 performance
26 January 2022Mexico: The net sales of Grupo Cementos Chihuahua (GCC) increased by 10.8% year-on-year in 2021 compared to 2020, according to its fourth quarter financial report. Its net sales for the year came to US$1.04bn, while operating profit rose by 14.2% to US$214.3m from US$211.3m a year earlier.
GCC said that its stronger result was due to both volumes increases and higher selling prices in the US and Mexico. In the US market, the company’s cement volumes increased by 5.6% in 2021, with a 5.1% rise in concrete sales. Prices in the US rose by 8.9% and 5.1% respectively. In Mexico, cement and ready-mix concrete volumes rose by 6.9% and 19.1% respectively. Overall sales increased by 17.9%.
Mexican cement prices sky-rocket in January 2022
26 January 2022Mexico: The average price of bagged grey cement has soared by an average of 14.5% so far in January 2022. Bulk cement prices have increased by 20% month-on-month since mid December 2021.
Locally-owned multinational producer Cemex said that, to maintain margins, it increased the price of its bagged cement by 14.4% nationwide and its bulk cement by 17 - 20%. "The increases applied to our products seek to recover part of the inflation that the company has had in its costs," the company explained in a press release.
Javier Fernández, director of the materials distributor Grupo Mecasa, which has a presence in Nuevo León, Coahuila, Tamaulipas and Veracruz, said that the rest of the country's cement companies also raised prices in a similar proportion to Cemex.
Cemex signs service deal with HCL Technologies
22 December 2021Mexico: Cemex has signed a five-year agreement with India-based HCL Technologies for information technology (IT) services related to employee services, increased automation and analytics. HCL will work on IT managed services, infrastructure and application services and end-user support. It will also collaborate with Neoris, a subsidiary of Cemex, on customer services and supply chain resiliency. HCL will use its DryICE and Software products, along with various other automation products.
“Cemex selected HCL Technologies because we have a vision of working smarter to cater to the global company’s fast-growing operations,” said Fausto Sosa, vice president of Information Technology of Cemex.
Mexico: Cemex has joined the United Nations (UN) Global Compact’s Chief CFO Taskforce for the Sustainable Development Goals. The taskforce engages global chief finance officers (CFOs) in integrating the UN’s 10 sustainable development goals (SDG) into strategy, financing and investor relations in order to create a broad sustainable finance market. Its aims include providing the global development community with a modern view of how capital markets can contribute to financing the SDGs at scale, developing innovative financial instruments and contributing to a broad market of diversified investment opportunities, supporting companies in securing financial capital to transform their business and production models, connecting companies’ SDG investments with increasingly impact-orientated investors, developing internal tools and resources to embed sustainability in corporate finance, promoting partnerships between chief executive officers and CFOs and helping to translate sustainability strategies into financial language for investors and rating agencies.
Cemex’s CFO Maher Al-Haffar said “Climate change is perhaps the biggest challenge of our times, affecting lives and disrupting economies. Only by aligning our financial and climate action strategies will we be able to overcome this challenge.” He added “At Cemex, we share the beliefs embodied in the CFO principles and are honoured to join the UN Global Compact CFO Taskforce for the SDGs, through which we will actively contribute to the innovation of corporate finance that will enable the building of a more resilient future for all.”
Mexico: 200 police officers in 80 police cars arrived outside the gates of Cooperativa La Cruz Azul’s Cruz Azul cement plant in Tula, Hidalgo, on 15 December 2021, but failed to enter the plant. The El Financiero newspaper has reported that the police were following a court order to remove the company from the plant. Supervisory board president Alberto Lopez reasserted the company’s right to occupy the property in line with federal government ordinances. Lopez suggested an alleged collusion between cooperativists and Omar Fayad’s Institutional Revolutionary Party (PRI) Hidalgo state government to decieve the courts.
Authorities have frozen Cooperativa La Cruz Azul’s accounts with outstanding bills of US$800,000 in electricity, gas, equipment and services bills, as well as the payroll of its 1100 workers.
Coopertiva La Cruz Azul chair Federico Sarabia said that the developments threaten the existence of the Cruz Azul plant. He said "In terms of quality, Cruz Azul’s cement exceeds the standard. At the time that Cruz Azul disappears as a cement producer, prices will increase.”
Mexico/Denmark: Cemex and 3D printing construction company Cobod International have launched D.fab, a range of admixtures which enable builders to use ordinary concrete in 3D printing. The partners say that the products eliminate the need for expensive specialised mortars. Power2Build implemented the admixtures in concrete to print a whole house in Luanda, Angola, in early December 2021.
Cemex’s executive vice president sustainability, commercial and operations development Juan Romero said “The introduction of this revolutionary 3D printing system is a testament to our customer-centric mindset and relentless focus on continuous innovation and improvement. Working together with Cobod, we have developed an experience for customers that is superior to anything that has been provided in the past,” said “Our innovation efforts position us at the forefront of new technologies that contribute to building a better future.”
Chasing the building envelope
15 December 2021Saint-Gobain has headed back to the attention of the cement sector this week with a deal to buy GCP Applied Technologies and a joint-venture with Cementos Argos in Colombia.
The first development carries on the French conglomerate’s move into the construction chemicals market. In October 2021 it acquired Chryso for Euro1.02bn. Other recent deals include agreements to buy Romania-based construction chemicals company Duraziv in May 2021 and Mexico-based IMPAC in October 2021. The GCP Applied Technologies deal is valued at Euro2.3bn with closure planned by the end of 2022. As Saint-Gobain put it, “The combined platform of Weber, Chryso and GCP offers customers a highly comprehensive portfolio of construction chemicals solutions with strong complementary geographic footprints.” It says that it sees the planned acquisition as the “logical next step” to expand its market share in admixtures and additives. It also reckons that Chryso and GCP Applied Technologies are complimentary geographically with Chryso positions mostly in Europe, Middle East and Africa and with GCP’s positions in North America, Asia-Pacific and Latin America. Once the deal goes through, Saint-Gobain will operate 75 production sites in the sector in 38 countries. The specialty building materials part of GCP will then be integrated into the CertainTeed subsidiary in North America.
The arrangement in Colombia concerns a joint-venture intended to focus on lightweight and sustainable building materials. Detail is scarce beyond an announcement by Cementos Argos on its website but the focus appears to be on bringing in Saint-Gobain’s mortar products and/or technology into the local market.
This move towards the lightweight building materials market may sound familiar. That’s because it is similar to what Holcim has also been doing recently, notably with its acquisition of Firestone Building Products earlier this year. It is interesting though to see both companies targeting the lightweight sector from different places. Both have also framed their intentions in terms of sustainability goals. Notably, Saint-Gobain has far lower carbon emissions than many cement producers. For example, Holcim reported sales of around Euro22bn in 2020 with absolute gross Scope 1 CO2 emissions of 110Mt. Saint-Gobain reported sales of around Euro38bn with total Scope 1 CO2 emissions of 7.9Mt.
At an investors event in October 2021 Saint-Gobain’s chief executive officer Benoit Bazin said that the group’s ambition was to become the worldwide leader in light and sustainable construction. Saint-Gobain’s business portfolio was diverse already before the GCP announcement, with its construction products focused on ‘lighter’ materials such as gypsum wallboard, insulation and glass. Its expansion into the construction chemicals market is of relevance to the cement industry directly through the supply of admixtures for cement and concrete. It’s also of interest to wider trends in construction because the acquisitions show another company chasing the lightweight building materials market. One expectation, as countries and companies have signed up to net zero carbon commitments, is that the demand for lightweight materials in the building envelope will grow and companies are reacting accordingly. The question at this stage is whether there is space in their growing market for all of them.
Cemex and Carbon8 Systems partner for carbon capture research
10 December 2021Mexico/UK: Cemex has partnered with UK-based carbon capture equipment supplier Carbon8 Systems to evaluate possible uses of the supplier’s Accelerated Carbonation Technology (ACT) in the group’s cement production. Operators can use the equipment to produce carbon-infused sustainable materials from thermal residues. Cemex says that one possible application will be in the production of supplementary cementitious materials. Under the partnership, Carbon8 Systems will evaluate a range of Cemex’s byproducts for possible use, beginning at its Rüdersdorf cement plant in Germany and Rugby cement plant in the UK. It will also evaluate the suitability of alternative lightweight aggregates produced using ACT for sale in each market.
Executive vice president sustainability, commercial, and operations development Juan Romero said "This initiative with Carbon8 Systems is another example of the work we are doing with partners across industries, academia, and startups to tap into the latest innovation and disruptive technologies to achieve our ambition of delivering net-zero CO2 concrete globally to all of our customers."
Suspected arson reported at Cruz Azul’s Tula cement plant
29 November 2021Mexico: A fire at Cruz Azul’s Tula cement plant in Hidalgo has been reported as being started intentionally by sources quoted by the Excélsior newspaper. A fire on a 500m conveyor belt at the unit was reported in the early morning on 28 November 2021. Production at the plant will not be affected. Repair work on the conveyor is expected to take up to 20 days. An official cause for the fire has yet to be disclosed.
Mexico: Corporación Moctezuma has appointed Juan Mozo Gómez as its chief financial officer with effect from the start of 2022. He succeeds Luis Rauch, who has decided to leave the post after four years for personal reasons. Mozo has experience in the financial sector and held positions in companies in the cement and concrete industry. He holds a degree in Business Administration from Pompeau Fabra University in Spain.