Displaying items by tag: Morocco

The European Union (EU) carbon border adjustment mechanism (CBAM) started its transitional phase this week ahead of the full adoption of the scheme in 2026. Importers of goods with a high carbon cost, including cement, will have to report the direct and indirect CO₂ emissions associated with production. No financial penalty will be incurred during the transition period, but from 2026 onwards importers will have to start buying certificates at the EU emissions trading scheme (ETS) price. However, even the full version of the CBAM will be phased in with the cost of embedded emissions increased gradually from 2026 to 2034. Readers can catch up on the CBAM guidance for importers here.

Graph 1: Sources of cement and clinker imports to the EU in H1 2023. Source: Eurostat/Cembureau.

Global Cement Weekly has covered the EU CBAM frequently, but it is worth remembering which countries are most likely to be affected. According to data from Eurostat and Cembureau, the EU imported just over 10Mt of cement and clinker in 2022. This compares to around 2.5Mt in 2016. Graph 1 (above) is even more instructive, as it shows where the cement and clinker came from in the first half of 2023. Most of it was manufactured in countries on the periphery of the EU with, roughly, a third from Türkiye and a third from North Africa. These are the countries with the most to lose from the CBAM.

Graph 2: CO₂ emissions intensity for cement exports. Green signifies cleaner than the EU average, Red signifies more carbon intensive than the EU average. Source: World Bank.

Türkiye is the most exposed. Data from Türkçimento shows that it exported 3.4Mt of cement and clinker into the EU in 2022 or 13% of its total exports. Bulgaria, Italy and Romania were the main destinations for cement. Belgium, Spain and France were the main targets for clinker. Notably, more clinker than cement was exported to the EU. For context, in total Türkiye exported 18.5Mt and 8.5Mt of cement and clinker respectively in 2022. The US was the leading destination for Turkish cement at 9.7Mt and Ivory Coast for clinker at 1.3Mt. Türkiye seems set to tackle the problem that CBAM poses for its iron and cement sectors by introducing its own emissions trading scheme. One view expressed has been that if the country has to pay for its carbon emissions it would much rather pocket the money domestically than see it go to a foreign entity. A relative CBAM Exposure Index put together by the World Bank by June 2023 suggested that Türkiye would actually benefit slightly in comparison to some of its cement exporting rivals as the CO₂ emissions intensity of its cement exports was 4.85kg CO₂eq/US$. This study’s pivot point was 4.97kg CO₂eq/US$, putting Türkiye just across the line for increased competitiveness.

Cement export data for Algeria is harder to find but state-owned Groupe des Ciments d'Algérie (GICA) has been regularly issuing bulletins since 2018 detailing its cement exports. It previously had an export target of 2Mt for 2023 with destinations in Africa, Europe and South and Central America. Looking more widely, research by the African Climate Foundation (ACF) and the Firoz Lalji Institute for Africa at the London School of Economics and Political Science estimated that 12% of Africa’s cement exports ended up in the EU. It reckoned that the introduction of the CBAM and an EU ETS price of Euro87/t would reduce total African exports of cement to the EU by 3 - 5% if the EU ended its ETS free allowance. The World Bank CBAM Exposure study found that Egypt and Morocco were likely to become more competitive for cement exports but Tunisia less so. Unfortunately this analysis did not cover Algeria.

The third largest individual source of imports into the EU in the first half of 2023 was Ukraine. Research from the Kiev School of Economics estimated that the start of the CBAM would reduce the export volume of cement to the EU by 2 - 5%/yr. The World Bank study found that Ukraine would become less competitive as the emissions intensity of its cement exports was 7.62kg CO₂eq/US$. This would be compounded by the fact that more than 90% of the country’s cement exports ended up in the EU. However, since the EU backed the country when Russia invaded in early 2022, imposing the CBAM on exports has acquired geopolitical consequences. There has been lobbying on this issue from various sources, so this situation might be one to watch to gain a sense of how the EU might react when its sustainability aims clash with its political imperatives.

One major risk for the cement exporting countries soon to be affected by the CBAM is if other countries start to do the same in a domino effect before the exporters introduce their own carbon pricing schemes. Türkiye is clearly alert to this. Other countries are thinking the same way. The US, for example, has had senators discuss the merits of setting up its own version. It is also wise to using sustainability legislation to further its own economic ends as the Inflation Reduction Act in 2022 showed. At the moment the US needs lots of cement imports but were this to change then the case to enact a US CBAM might grow.

Finally, one should never discount the sheer amount of bureaucracy involved when dealing with the EU. The UK discovered this when it voted to leave the EU and now the rest of the world gets to enjoy it too! Christian Alexander Müller of Evonik told the Die Welt newspaper this week that Brussels had created a bureaucratic ‘Godzilla.' Another commentator noted that the European Commission only published its guidance document for importers on CBAM in mid-August 2023 and that helping export partners would be like teaching them Latin in just a few weeks. Bona fortuna!

Morocco: Data from the Association Professionnelle des Cimentiers du Maroc (APCM) shows that the country produced 1.15Mt of cement in August 2023, 7.6% more than in August 2023. However, during the first eight months of 2023, the country produced 8.1Mt of cement, 0.8% less than the 8.2Mt made during the same period of 2022.

Morocco: Members of the Professional Association of Cement Producers (APC) delivered a total of 6.98Mt of cement during the first seven months of 2023. This corresponds to a year-on-year rise of 2.1%, compared with seven-month 2022 levels. Agence Marocaine de Presse News has reported that ready-mix concrete plants consumed 4.29Mt (61%), and precast concrete plants 1.37Mt (20%), of cement deliveries. Producers despatched 367,000t (5.3%) of cement to infrastructure construction sites, and 271,000t (3.9%) to other building sites.

Burkina Faso: Ciments de l'Afrique (CIMAF) has ordered a Polysius booster mill from Germany-based ThyssenKrupp Industrial Solutions (TKIS) for its grinding plant at Ouagadougou. This is the first industrial reference of the product that promises to allow a greater substitution of clinker with local filler by boosting the fineness and reactivity of the clinker. It will also maintain both cement quality to local standards and production capacity of the exiting ball mill at the unit.

Mohamed Naciri, the Regional General Manager for CIMAF, commented “Burkina Faso is a landlocked country where clinker has to travel at least 1200km to reach Ouagadougou, every technology aiming to decrease the cement clinker factor is welcome, this project is also an important milestone in our decarbonation road map, TKIS is a key partner for CIMAF to decrease our group CO₂ footprint.”

CIMAF owns and operates 13 grinding plants in Africa. It runs plants in Burkina Faso, Cameroon, Chad, Ivory Coast, Gabon, Ghana, Guinea Bissau, Guinea, Mali, and Mauritania. CIMAF's parent company, Omnium des Industries et de la Promotion (OIP), is a cement supplier across north, west, and central Africa, producing about 12Mt/yr. It is the third largest cement producer in Morocco with two integrated plants.

Democratic Republic of Congo: Heidelberg Materials has appointed Abderrahim Touile as the plant manager of its Lukala cement plant, operated by local subsidiary Cimenterie de Lukala.

Touile previously worked as the Industry Director for Vicat in Mauritania. He also worked as production manager for Ciments de l'Afrique (CIMAF) in Burkina Faso. Before these roles he held production roles with Lafarge in Morocco and South Africa between 2002 and 2015. Amongst other business and management qualification, Touile holds as master’s degree in business administration (MBA) from the Sorbonne Business School in France.

Morocco: NovaCim’s new 1.4Mt/yr cement plant at Ouled Ghanem near El Jadida has produced its first cement. Denmark-based FLSmidth supplied equipment for the unit including an OK type vertical roller mill, which it says is the first such installation of the product in the country. FLSmidth said in 2019 that it was going to build the plant for TEKCIM in conjunction with the Société Générale des Travaux du Maroc (SGTM). Full commissioning is scheduled for 2023.

Morocco: Ciments du Maroc has officially started its 0.7Mt/yr Nador grinding plant in Oulad Settout. The new unit will be supplied with clinker from the integrated Ait Baha plant in Souss-Massa. It is intended to support the development of the north and east regions of the country. The project had a cost of around Euro84m.

Robert Dölger, the German ambassador, Zouhair Magour, the honorary consul of Germany, René Aldach, the chief financial officer of Heidelberg Materials, Hakan Gürdal, the head of Heidelberg Materials’ Africa-East Mediterranean Region, the president of the Oulad Settout region and various directors of Ciments du Maroc attended a ceremony marking the event on 9 December 2022.

The subsidiary of Heidelberg Materials operates three integrated plants, four grinding plants, four aggregate quarries and 21 ready-mix concrete plants in the country.

Morocco: NovaCim has ordered the SLV Cement logistics software product from Portugal-based Cachapuz for its forthcoming 1.2Mt/yr integrated cement plant in Ouled Ghanem in El-Jadida Province. The product is intended to improve and optimise dispatch processes. Denmark-based FLSmidth announced in 2019 that it was going to build the plant for TEKCIM in conjunction with the Société Générale des Travaux du Maroc (SGTM). The plant is expected to start production in 2023.

Morocco: LafargeHolcim Maroc’s sales were US$377m in the first half of 2022, consistent with its first-half 2021 sales, according to the L’Economiste newspaper. In the second quarter of 2022, the producer’s sales fell by 7% year-on-year to US$181m. It attributed this to a drop in its cement sales volumes, amid a national decline in demand of 10% year-on-year during the quarter. During the first half of 2022, Moroccan cement demand declined by 4.5% year-on-year. LafargeHolcim Maroc said that this was the result of global economic factors.

The producer’s net debt was US$590m on 30 June 2022, up by 5% year-on-year.

Morocco: LafargeHolcim Maroc is preparing to export clinker to West Africa in early July 2022. The shipment will be the plant’s second clinker export following a consignment of 40,000t to Guinea, according to the Les Eco newspaper. The plant, based near Tidsi, has been operational since late 2021.