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News Portland Cement Association

Displaying items by tag: Portland Cement Association

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GCCA expands to 16 members

04 September 2018

UK: The Global Cement and Concrete Association (GCCA) reports that it continues to grow, with the addition of several new member companies from Europe, South America and Asia. In August 2018 there were six new members: Buzzi Unicem, Cementos Argos, Cementos Pacasmayo, Çimsa Çimento, SCG Cement and Titan Cement. The GCCA also welcomed the US Portland Cement Association (PCA) as an Affiliate.

Albert Manifold, GCCA President (and CEO of CRH) said, “We are delighted to welcome further cement and concrete companies and like-minded organisations to the GCCA. The GCCA was set up to provide the authoratitive global voice for this essential sector. With every new member, the voice becomes even stronger.”

The new members and affiliates join 10 existing member companies: Cemex, CNBM, CRH, Dangote Cement, Eurocement, HeidelbergCement, LafargeHolcim, Taiheiyo Cement, UltraTech Cement and Votorantim. Further applications for member and affiliate status have been received and are being processed.

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Portland Cement Association lobbies US government on water infrastructure

08 June 2018

US: The Portland Cement Association (PCA) has called on the US Congress to reauthorise Federal legislation to build, maintain and improve the country’s water infrastructure. The US House of Representatives is considering two-year reauthorisation of the Water Resources Development Act of 2018, while the US Senate is considering companion legislation, America’s Water Infrastructure Act of 2018.

“America deserves safe, strong and resilient water infrastructure – our economy depends on it,” said PCA President and chief executive office (CEO) Michael Ireland. “Water infrastructure built with concrete is long-lived, has a low life-cycle cost and is resilient to man-made and natural disasters. We need this legislation to ensure our drinking water is safe, our waterways are navigable and secure and that we have water infrastructure capable of serving generations to come.”

The PCA supports reauthorisation of water infrastructure legislation to include: increased investment in waterway and flood control infrastructure; increased funding for water infrastructure construction programs; and to promote resilient construction techniques that use materials such as concrete.

Published in Global Cement News
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Portland Cement Association announces winners of 2018 Safety Innovation Awards

26 April 2018

US: The Portland Cement Association (PCA) has announced the winners of the 2018 Safety Innovation Awards. The awards recognise creative safety-enhancing projects in the cement industry. Winners were determined by a panel of judges that evaluated submissions from across the country for milling/grinding, distribution, pyroprocessing and general facility.

Cemex USA’s Miami plant Florida won the milling/grinding category with its new process to load ball mills. The site developed a new mill loading process that uses a small hopper for grinding media, and an incline transport system with buckets to convey the grinding media directly to the mill. This new system eliminates the interaction between the employee and the machine, reduces the number of people needed to load the mill from five to two, and eliminates the need for employees to stand on top of the mill. This new system also improves mill loading rates from seven drums/hr to 30 drums/hr.

Cemex USA’s Houston operations in Texas won the pyroprocessing category for it use of drones for hazardous inspections. It has implemented a system for using protected air drones to inspect enclosed and confined spaces. Visual inspections of enclosed areas (preheater towers, tanks, silos, process ducts, etc) normally require intrusive equipment, long delays for system cooling, and placement of employees on scaffolding in confined spaces. These drones utilise an outer protective cage to minimize the risk of breakage due to impact. The drone program has eliminated the risk of putting staff in confined spaces, reduced the cost of scaffolding, and reduced the overall time for inspections.

LafargeHolcim US’ Corporate Program in Chicago won the distribution category for its X-Factor barge cover. It has developed a process for barge cover removal that reduces the risk of falls from employees stepping on to the barge. The X-Factor barge cover, developed over the last three years with a contractor, uses the latest technology and a no-touch design to allow a crane operator to perform all functions associated with barge lid handling without additional human assistance. Barge workers will no longer be required to step onto the barge to remove or replace barge covers, eliminating a potential fall risk.

Ash Grove Cement’s Louisville plant in Nebraska won the general facility category for its use of magnets as duct hole patches. Ash Grove has developed a hole-patch technique using magnets. Magnetic patches are quick, simple, and effective at preventing or limiting the release of materials from holes created in ducts caused by abrasion, leading to a cleaner plant, reduced slip, trip and fall risks, and fewer related Mine Safety and Health Administration housekeeping citations.

Cemex USA’s Brooksville in Florida also won the general facility category for its filters moved to ground level project. It redesigned the blower housings to move the filter from the top of the blower housings to an easily accessible location at ground level. The redesigned blower housing eliminates the need for employees to climb up and down a ladder, reducing overexertion and fall hazard.

Published in Global Cement News
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Portland Cement Association forecasts 2.8% growth in 2018 and 2019

05 April 2018

US: The Portland Cement Association (PCA) predicts growth of 2.8% in cement consumption in 2018 and 2019 in its Spring Forecast. Growth is then expected to climb to 4% in 2020 as impacts from potential federal infrastructure spending are likely to take effect. The analysis estimates cement consumption at 99.3Mt in 2018, 102.1Mt in 2019 and 106Mt in 2020.

Ed Sullivan, PCA senior vice president and chief economist, has attributed the forecast growth to a variety of positive economic factors including a strong economy, job market and anticipated increase in infrastructure spending. He said that in combination these factors, “suggest a modest acceleration in real GDP, construction markets and cement consumptions.”

However, the PCA projects that ‘robust’ infrastructure spending isn’t likely to occur until the fourth quarter of 2019, given the key steps that must occur, including passage of an infrastructure bill, federal and state paperwork, bid letting and review and finally contract awards leading to construction.

Published in Global Cement News
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Roadblocks remain in the US?

14 March 2018

The latest data from the United States Geological Survey (USGS) shows that cement shipments rose by 2.4% year-on-year to 95.5Mt in 2017. Readers with elephantine memories may remember that the Portland Cement Association (PCA) revised its forecast for 2017 down to 3.1% from 4.2% in a release made in late 2016. Shipments and consumption are different metrics but the PCA was heading in the right direction. Unfortunately, however ebullient the PCA’s chief economist Ed Sullivan was at the IEEE-PCA in 2017 about growth in the US in 2018 and 2019, the necessary rise required seems quite steep. President Donald Trump may have handed the major cement producers a tax break but until his infrastructure spending materializes the US construction industry is on its own.

Graph 1: Clinker production in the US, 2013 – 2017. Source: USGS.

Graph 1: Clinker production in the US, 2013 – 2017. Source: USGS.

Viewing the US as a whole is a little unfair given its wide regional variation. As can be seen in Graph 1 clinker production jumped up from 2013 to a high of 76.5Mt in 2015 before taking a dip in 2016 and then rising again to 76.9Mt in 2017. Cement shipments of Ordinary Portland and blended cement show a similar trend over the same timescale except without the decrease in 2016. Interestingly, imports of cement and clinker rose by 18% to 13.6Mt in that year. The major exporters to the US were Canada, Greece, China and Turkey, in that order.

Graph 2: Cement and clinker imported for consumption to the US in 2017 by country. Source: USGS.

Graph 2: Cement and clinker imported for consumption to the US in 2017 by country. Source: USGS.

From a producer perspective LafargeHolcim described 2017 as a ‘disappointing’ year, with overall net sales down slightly on a like-for-like basis. The group remained optimistic for 2018 though, with its hopes pinned on rising employment and housing construction. HeidelbergCement rode high on its acquisition of Italcementi’s local subsidiary Essroc, which enabled it to grow its business in the northeast and midwest. Its cement sales volumes rose by 2.3% to 4.1Mt. CRH noted similar cement sales volume growth of 3% and attributed this to stronger demand. Its business also benefited from the acquisition of Suwannee American Cement with its 1Mt/yr cement plant in Florida. Further growth to its production base is also expected soon as it completes its acquisition of Ash Grove Cement.

By contrast Buzzi Unicem reported a tougher year with its net sales barely increasing from 2016 to 2017. It blamed a tough first half of the year for this as well as weather-related issues due to Hurricane Harvey and then snow in December 2017. Cemex too reported harder conditions in the US, with cement sales volumes down by 6% for the year. Although on a like-for-like basis with plant sales excluded it reported this as a rise of 2%. Again, it blamed the weather but it did note an increase in residential housing construction as the year progressed.

In this kind of mixed environment for cement producers no wonder the PCA backed or, perhaps more accurately, reminded the President of his pledge to spend US$1.5tn to be invested in infrastructure. As per usual the PCA forecasts fair weather ahead for the US industry once the latest roadblock is overcome. At the last assessment it was inflationary pressure. As ever the government opening its cheque book to build things is exactly what the industry needs to build on its promise. Until then expect more of the same. One more thing to consider though is that the Trump administration is also trying to change the ratio of federal-to-state funding for cross-state infrastructure projects. If the states end up having to pay more money for these kinds of projects these may end up running out of funds, delaying or cancelling them. Counting on that infrastructure spend may be unwise until if or when the cement orders come piling in.

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Portland Cement Association supports infrastructure study

22 February 2018

US: The Portland Cement Association (PCA) has supported an infrastructure study by the American Council for Capital Formation (ACCF). It liked how the study highlighted the importance of life cycle cost analysis and competition in paving. “If federal and state decision makers took this report as a playbook, America would see tremendous taxpayer cost savings and stronger infrastructure built to last long into the future,” said PCA President and chief executive officer (CEO) Michael Ireland.

Published in Global Cement News
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Portland Cement Association backs president’s call for infrastructure investment

01 February 2018

US: The Portland Cement Association (PCA) has backed President Donald Trump’s call for US$1.5tn to be invested in infrastructure. It has urged the US Congress to take ‘swift’ legislative action to fund and sustain such projects.

“America’s cement producers are proud to play a critical role in what the president so aptly described as our nation of builders,” said PCA President and chief executive officer (CEO) Michael Ireland. “Today, our industry is ready to help America both rebuild long-neglected infrastructure, and construct new-and-improved transportation networks capable of serving the nation long into the future.” He added that the cement industry also supported the need to address significant federal funding gaps including a shortfall in the Highway Trust Fund.

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Portland Cement Association sticks to ‘favourable’ forecast for US market

25 January 2018

US: Ed Sullivan, the Portland Cement Association’s (PCA) Senior Vice President and Chief Economist says that economic momentum supported by tax reform and federal infrastructure programs will play key roles in the demand for construction in the next few years. Sullivan made his comments at the World of Concrete event in Las Vegas, where he revealed details from his forthcoming spring forecast.

“There is little doubt that the near-term outlook for construction and cement consumption in 2018 and 2019 remains favourable,” said Sullivan. “Strengthening economic conditions, with the addition of fiscal stimulus, and in the context of already low unemployment could awaken inflationary pressures. Down the road, this could lead to an even more stringent monetary policy, leading to an acceleration in interest rate increases and an eventual cooling of construction markets. If this scenario plays out, it will likely take time to gestate and not materialise to a significant degree until after 2019.”

Sullivan noted the strong economy comes in context of continued strain to find skilled workers, including those needed for construction projects. Weather conditions and other economic factors prompted PCA to revise its 2017 Fall Forecast down slightly, though it says that its ‘fundamental’ assessments pertaining to the economy, construction markets, and cement consumption remain on target.

The PCA Spring Forecast will be released in early March 2018.

Published in Global Cement News
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2017 in Cement

20 December 2017

To mark the end of the calendar year we’re going to round up some of the major news stories from the cement industry in 2017. Like last year this piece also complements the corresponding article ‘The global cement industry in 2017’ in the December 2017 issue of Global Cement Magazine. Remember, this is just one view of the year's events. If you think we've missed anything important let us know via LinkedIn, Twitter or This email address is being protected from spambots. You need JavaScript enabled to view it..

Recovery in Europe
2017 was the year that the European cement industry finally had something to shout about after a lost decade since the financial crash of 2007. The good news was led by a revival in cement consumption in 2016 that looks set to have continued in 2017. Prospects in Germany and Spain feel similar and a series of mergers and acquisitions have taken place in Italy suggesting that investors believe that the market is about to recover there too. Sure, Brexit is looming but as contacts have told Global Cement staff throughout the year, if the British want to damage their economy, that’s their business.

Renewal and recrimination at LafargeHolcim
Lafarge’s conduct in Syria during the civil war has cost its successor company LafargeHolcim dear, with the loss of its chief executive officer (CEO) Eric Olsen and potential reputational damage if the on-going investigation in Paris finds fault. At the time of writing Olsen, former Lafarge CEO Bruno Lafont and the former deputy managing director for operations Christian Herraul are all being questioned by the inquiry into the affair as it attempts to determine who knew what and when. LafargeHolcim has drawn a line under the debacle by appointing outsider Jan Jenisch as its new CEO in mid-2017. He has made changes to the group’s management structure that were announced this week but has he done enough? If anything truly ‘explosive’ emerges from the investigation, the question for anyone across the world buying LafargeHolcim’s products may be whether or not they want to finance extremism through their purchase.

US doesn’t build wall but does okay anyway
The US Portland Cement Association (PCA) may keep downgrading its forecasts of cement consumption growth but the local industry is doing fairly well anyway. All sorts of cement producers with a presence in the US have benefited from the market, despite extreme weather events like Hurricane Irma. President Donald Trump may not have delivered on his infrastructure development promises or built his fabled wall yet but his recently-approved tax reforms are likely to benefit the profits of cement producers. The decision by Ireland’s CRH to buy Ash Grove Cement in September 2017 may remove the largest domestically-owned producer from US hands but it shows confidence in the market and heralds the continued creeping growth of the building materials company into an international empire.

South America shows promise… just don’t mention Brazil
Countries like Brazil, Colombia and Venezuela may not be performing to expectations but other countries south of the Darian Gap, have been growing their respective cement industries. The leader here is Argentina that is riding a full-scale construction boom with capital investment chasing it from the producers. Bolivia is following a decade of growth although this may be starting to slow somewhat. Chile appears to be realigning itself to take in more exports. And finally, Brazil may also be starting to return to growth too. Although cement sales were continuing to fall year-on-year in the first nine months of 2017 the rate has been slowing. Local producer Votorantim also reported improved market conditions at home.

India stares into the demand gap
UltraTech Cement finally managed to buy six cement plants and five grinding plants from Jaiprakash Associates for US$2.5bn in 2017. The acquisition marked the end of the long-running deal between the companies and what may be a new phase in further integration in the Indian industry. In September 2017 the Cement Manufacturers Association (CMA) complained that the sector had 100Mt/yr of excess production capacity out of a total 425Mt/yr. The government’s demonetisation policy sank cement production growth in late 2016 and production has struggled to improve since then. Some estimates expect growth to return in around 2020 as the demand gap shrivels. Further merger and acquisition activity can only help until then, although the current government flip-flopping over a petcoke ban and import duties may get in the way.

China restructures with an eye on overseas market
As discussed last week the mind-bogglingly massive merger between China National Building Material (CNBM) and China National Materials (Sinoma) is proceeding with the press equivalent of radio silence. If one trusts the company figures then the largest cement producer in the world will get even bigger following completion. Once the big Chinese producers start building lots of overseas plants then the implications of combining a major producer with a major plant builder may become clear outside of China. Alongside this the buzzword on the Chinese cement company balance sheets this year have been a major rollout of co-processing at plants and a policy of ‘peak shifting’ or simply shutting off production at selected plants in the winter months. Somehow despite all of this the official figures suggest that cement production is still growing in China.

The African mega deal that wasn’t
The prospective bidding war for South Africa’s PPC has turned out to be a bust. A low offer was made in September 2017 by a Canadian investment firm with the aim of merging PPC with local rival AfriSam. Vague expressions of interest from the usual suspects followed over the following months before everything fizzled out. What the dickens was going on? A difference of opinion between the board and shareholders? A poor market in South Africa giving everyone the jitters? If any readers know, please get in touch. PPC’s poor showing at home mirrors Dangote Cement’s travails. Both companies have suffered domestically whilst going full tilt elsewhere in Sub-Saharan Africa.

Indonesia about to pick up?
And finally, a report from Fitch Ratings this week suggests that growth in Indonesia is set to pick up once again. The market dragged down HeidelbergCement’s mid-year financial results as cement consumption dropped in the same period. Like India, Indonesia faces a consumption-capacity mismatch. However, with annual consumption poised to grow at over 6%, the time to close that gap will narrow. Some good news to end the year with.

Global Cement Weekly will return on 3 January 2018. In the meantime Merry Christmas and a have Happy New Year!

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Michael Ireland appointed president and chief executive officer of Portland Cement Association

08 November 2017

US: The Portland Cement Association (PCA) board of directors has appointed Michael Ireland president and chief executive officer (CEO). He replaces former President and CEO James Toscas.

In addition, the PCA board of directors elected the following new members: Greg Hale from Capitol Aggregates; Steve Regis, Bruce Shafer and Mark Wagy from CalPortland Company; Enrique Rozas from Drake Cement and Mike Ireland of PCA.

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