Displaying items by tag: Plant

CRH released its third quarter trading statement this week and the results were rosy, especially when compared to its peers in the cement business. Double digit growth in both sales revenue and earnings was reported for the nine month period so far in 2022. The company’s figures mainly attributed this to growth in its Americas Materials and Building Products divisions, although the presentation in its trading update took care to point out that the Europe Materials division had reported growth in the first half of 2022 only for it to run into a slowdown in the third quarter as energy prices increased. Even this wasn’t as bad on a like-for-like basis, with only earnings down in the third quarter in Europe. Chief executive officer Albert Manifold summed it up as follows: “This performance reflects the resilience of our business and the benefits of our integrated and sustainable solutions strategy.”

Manifold’s focus on integrated products was unsurprising given that the group has spent US$3bn in the year to date on businesses that make these kinds of things. These acquisitions have been added to its Building Products division adding to its already strong growth so far in 2022. The big one was the US$1.9bn deal to buy Barrette Outdoor Living, a US-based retailer and distributor of residential fencing and railing products. This was completed in July 2022. Other so-called bolt-on investments in 2022 have reached a total of US$1.1bn for 20 companies including Calstone, Hinkle, Rinker and Normandy in outdoor living, road and critical utility infrastructure sectors.

At the same time the group divested its architectural glass Building Envelope business for an enterprise value of US$3.8bn to private equity company KPS Capital Partners. That deal was completed in May 2022. On a smaller scale, it is also worth noting that Thomas Gruppe announced in early November 2022 that it had signed a purchase agreement to buy Opterra Zement and Opterra Beton. This includes the integrated Karsdorf cement plant, the decommissioned Sötenich grinding plant and the Neufahrn ready-mix concrete plant. However, there was no mention by Thomas Gruppe of the integrated Wössingen plant operated by Opterra Wössingen. Neither Opterra or CRH appears to have commented on this publicly yet though.

How CRH tweaks its business portfolio is interesting in comparison to the other cement companies. As Global Cement Magazine has covered recently, Holcim is bulking up a fourth business in light building materials and Cemex, Heidelberg Materials and others are similarly diversifying away from cement production to various degrees. CRH has generally held a more mixed portfolio away from the heavy materials trio of cement-concrete-aggregates over the last decade. However, it concentrated more on heavy materials when it picked up assets divested in the merger of Lafarge and Holcim in 2015. Since then it has been steadily pulling out of developing markets and focusing on North America and Europe. So, to see CRH moving out of the building envelope sector at the same time as Holcim and others dive in is a clear difference in approach.

The other point to highlight is that Manifold links sustainability to the group’s integrated products plan in his quote above. Earlier in 2022 the company revealed a new 25% reduction target in absolute CO₂ emissions by 2030, that has been certified by the Science Based Targets initiative (SBTi), and a continued goal of becoming net-zero by 2050. It clearly takes sustainability seriously as Manifold was also previously the president of the Global Cement and Concrete Association when it was set up in 2018. Other indicators include the company’s use of an internal carbon price as indicated in its 2021 sustainability report. It also mentioned here that 43% of its direct CO₂ emissions were covered under an emissions trading scheme. One implication here is that focusing on doing business in developed markets means that the group has to take its CO₂ emissions seriously, as legislators in these places do too.

CRH is one of the largest building materials companies in the world and its cement business has grown and shrunk a little over the last decade. Despite this it remains in the top 10 of cement producers globally based on production capacity. Its purview of multiple markets in building materials continues to make it a company to watch as the more traditional heavy materials cement companies adjust their own product portfolios.

US: Cemex USA and RTI International have secured US$3.7m in funding from the US Department of Energy for their Balcones cement plant amine technology carbon capture study. The plant in New Braunfels, Texas, will trial RTI International's non-aqueous solvent (NAS) system, licensed by energy and technology company SLB. Resources News has reported that the system will have a CO₂ capture capacity of 670,000t/yr. RTI International's principal project investigator Vijay Gupta said that NAS capture has a 30 - 40% lower energy penalty than preceding solvent-based technologies.

Cemex USA president Jaime Muguiro said "We remain committed to exploring technologies that can help us meet our targets as we build a more sustainable future. We are striving to cut emissions across all our operations, and this study with RTI International is one of the many steps Cemex is taking to achieve our objectives."

Türkiye: OYAK Cement has ordered a 5000t/day Pendulum Cooler from Germany-based IKN for its integrated plant at Ünye. The contract was signed at the 16th Türkçimento Technical Seminar that was held in Antalya in late October 2022. No price for the order has been disclosed.

India: Germany-based Gebr. Pfeiffer and its subsidiary Gebr. Pfeiffer (India) say they have received a follow-up order from Ultratech Cement for additional mills for new clinker production lines at its Kotputli plant in Madhya Pradesh and its Maihar plant in Rajasthan.

At the Kotputli plant it is planning to supply a MVR 5000 R-4 type mill to grind raw material. This mill can grind approximately 740t/hr to a product fineness of 1.0 % R 212µm with a 4800kW drive. At the Maihar plant a MVR 6000 R-6 type mill will also be supplied to grind raw material. In addition, several MPS 3550 BK type mills will be provided to grind fuel. These mills can grind approximately 45t/hr of pet coke, 90t/hr of coal, or any blend of the two materials. These are equipped with a 1300kW gearbox.

The plant design and the entire customer support will be handled by Gebr. Pfeiffer (India). The core components, such as gearboxes, grinding bowls, the grinding roller suspension system and the grinding rollers, will be supplied from Europe by Gebr. Pfeiffer. The remaining components, such as the foundation parts, the housings, the classifiers and most of the plant components will be provided by Gebr. Pfeiffer (India).

Czech Republic: Lafarge Cement says that an on-going national cement shortage due to high operating costs will likely continue into 2023. MACR News has reported that Lafarge Cement chief executive officer Miroslav Kratochvíl said that the producer's Čížkovice cement plant would have suspended deliveries altogether if not for its existing commitments to customers. The company's pre-existing deals for its power supply enabled it to restrict energy costs growth to less than double 2021 levels in November 2022. Fuels, including alternative fuels, and other raw materials, are also at a price high due to shortages.

Lafarge Cement expects Czech construction activity to decline by 5 - 10% year-on-year in 2023. Kratochvíl said "We would welcome a slight drop in demand."

South Korea: UK-based TCRK has announced a deal with Asia Cement to use its carbon capture and utilisation (CCU) technology at the cement producer’s plant in Jaechon. The project will see the first commercial deployment of TCRK’s CCUS technology from the first quarter of 2023. It will initially target 30,000t/yr of CO₂ equivalent and then ramp up to 120,000t/yr of CO₂ equivalent by mid-2024. The second target is intended to help Asia Cement reduce its emissions by 20% required to meet its 2025 decarbonisation plan.

TCRK’s approach will use two processes to utilise capture CO₂ from cement production. Its Arago Cement Process uses captured CO₂, cement kiln dust and by-pass particles to produce precipitated calcium carbonate, which TCRK uses to produce a product called Arago Cement. The captured CO₂ will also be used to grow microalgae in a process called bio-fixation. This method will offer 10% extra carbon storage capacity. The microalgae has a wide range of potential end-products including bioplastics and animal feed, and can also be used as a source of bio-cement production.

US: Lehigh Hanson plans to stop cement production at its integrated Permanente plant near Cupertino in California. The subsidiary of Germany-based Heidelberg Materials plans to use the site as a distribution centre and to continue some quarry work, according to the Mercury News newspaper. The cement plant was originally opened in 1939 but it stopped clinker production in 2020.

Bolivia: Empresa Publica Productiva Cementos de Bolivia (ECEBOL)'s upcoming 1.3Mt/yr Potosí cement plant is 91% completed and will commence cement production during the first quarter of 2023, according to the Bolivian government. When operational, the plant will produce up to 3000t/day of clinker and employ 2200 people directly and indirectly.

India: Ramco Cements has approved plants to build a second production line at its Haridaspur grinding plant in Jajpur District, Odisha with a capacity of 0.9Mt/yr. Around US$16m has been earmarked for the project. Once commissioned the plant’s total capacity will be 1.8Mt/yr.

The cement producer’s revenue grew by 31% year-on-year to US$442m in the first half of its financial year to 30 September 2022. However, its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 35% to US$61.9m. It blamed the loss in earnings on falling cement prices and mounting fuel costs. The company currently has cement and clinker production capacities of 21Mt/yr and 14Mt/yr respectively. It also reported that a 6MW waste heat recovery unit at its Kurnool plant in Andhra Pradesh will be commissioned in November 2022. An additional 6MW at the same plant is scheduled to start operation in March 2023.

UK: Cookstown Cement has rebranded as Cemcor. The company formed in January 2022 following its acquisition of the 0.45Mt/yr Cookstown cement plant from Holcim in January 2022. It then announced investments of around Euro14m towards making environmental and process upgrades at the unit. The company also purchased a limestone quarry in Cookstown, a shale quarry in Dungannon and a terminal at Belfast Harbour.