Displaying items by tag: Sika

One unusual thing about coverage of cement in the media is the way that discussions often centre precisely on its absence – that is, on alternatives to cement. These alternatives boast unique chemistries and performance characteristics, but are all produced without Portland cement clinker. They are generally called ‘alternative cements,’ perhaps because ‘cement-free cement’ does not have such a commercially viable ring to it. This contradictory tendency reached a new high in the past week, with developments in alternative cement across Asia, Europe, the Middle East and North America. Together, they hint at a more diverse future for the ‘cement’ industry than the one we know today.

Asia

In Indonesia, Suvo Strategic Minerals has concluded tests with Makassar State University of a novel nickel-slag-based cement. Huadi Nickel-Alloy Indonesia supplied raw materials, and tests showed a seven-day compressive strength of 37.5MPa. Suvo Strategic Minerals says that a partnership with Huadi Nickel-Alloy Indonesia for commercial production is a likely next step.

Europe

Cement producer Mannok and minerals company Boliden partnered with the South Eastern Applied Materials (SEAM) research centre in Ireland to launch a project to develop supplementary cementitious materials (SCMs) from shale on 7 October 2024. The project will additionally investigate CO₂-curing of cement paste backfill for use in mines. Irish state-owned global commerce agency Enterprise Ireland has contributed €700,000 in funding.

UK-based SCM developer Karbonite expects to launch trial production of its olivine-based SCM with a concrete company in 2025. The start-up launched Karbonite Group Holding BV, with offices in the Netherlands, to facilitate this new phase. Karbonite’s SCM is activated at 750 – 850°C and sequesters CO₂ in the activation process, resulting in over 56% lower CO₂ emissions than ordinary Portland cement (OPC). Managing director Rajeev Sood told Global Cement that talks are already underway for subsequent expansions into the UAE and India.

Back in the UK, contractor John Sisk & Son has received €597,000 from national innovation agency Innovate UK. John Sisk & Son is testing fellow Ireland-based company Ecocem’s <25% clinker cement technology in concrete for use in its on-going construction of the Wembley Park mixed development in London.

At the same time, Innovate UK granted a further €3.23m to other companies for concrete decarbonisation. Recipients included a calcined clay being developed by Cemcor, an SCM being developed from electric arc furnace byproducts by Cocoon, a geopolymer cement technology being developed by EFC Green Concrete Technology UK and an initiative to develop alternative cement from recycled concrete fines at the Materials Processing Institute in Middlesbrough. Also included was the Skanska Costain Strabag joint venture, which is working on the London stretch of the upcoming HS2 railway. The joint venture, along with partners including cement producer Tarmac and construction chemicals company Sika UK, will test low-kaolinite London clay as a raw material with which to produce calcined clay as a cement substitute in concrete structures in HS2’s rail tunnels.

Middle East

Talks are underway between UK-based calcined clay producer Next Generation SCM and City Cement subsidiary Nizak Mining Company over the possible launch of a joint venture in Riyadh, Saudi Arabia. The joint venture would build a 350,000t/yr reduced-CO₂ concrete plant, which would use alternative cement based on Next Generation SCM’s calcined clay.

North America

Texas-based SCM developer Solidia Technologies recently patented its carbonatable calcium silicate-based alternative cement, which sequesters CO₂ as it cures.

Meanwhile, C-Crete Technologies made its first commercial pour of its granite-based cement-free concrete in New York, US. C-Crete Technologies says that the product offers cost and performance parity with conventional cement, with net zero CO₂ emissions. Its raw material is globally more abundant than the limestone used as a raw material for clinker. Other abundantly available feedstocks successfully deployed within C-Crete Technologies’ repertoire include basalt and zeolite.

Across New York State, in Binghamton, KLAW Industries has succeeded in replacing 20% of concrete’s cement content with its powdered glass-based SCM, Pantheon. KLAW Industries has delivered samples to local municipalities and the New York State Department of Transportation. Its success expands the discussion of possible circular cement ingredients from the industrial sphere into post-consumer resources.

In Calgary, Canada, a novel SCM has drawn attention from one of the major cement incumbents: Germany-based Heidelberg Materials. It invested in local construction and demolition materials (CDM)-based SCM developer EnviCore on 9 October 2024. The companies plan to build a pilot plant at an existing Heidelberg Materials CDM recycling centre.

Conclusion

Alternative cement developers are still finding the words to talk about their products. They may be more than ‘supplementary’ up to the point of entirely supplanting 100% of clinker. Product webpages offer ‘hydraulic binder,’ ‘pozzolan’ and even ‘cement.’ As alternative ‘cements’ are developed, they build on the work of pioneers like Joseph Aspdin and Louis Vicat. Start-ups and their backers are now reaching commercial offerings, on a similar-but-different footing to cement itself. None of these novel materials positions itself as the sole, last-minute ‘super sub’ in the construction sector’s confrontation with climate change. Rather, they are a package of solutions which can combine into a net zero-emissions heavy building materials offering, hopefully before 2050.

Related to this is the need for ‘technology neutral’ standards, as championed this week by the Alliance for Low-Carbon Cement and Concrete (ALCCC), along with 23 other European industry associations, civil society organisations and think tanks. The term may sound new, but the concept is critical to the eventual uptake of alternative cements: standards, the ALCCC says, should be purely performance-based. They ought not attempt to define what technology, for example cement clinker, makes a suitable building material. According to the ALCCC, Europe’s building materials standards are not technology neutral, but instead ‘gatekeep’ market access, to the benefit of conventional cement and the exclusion of ‘proven and scalable low-carbon products.’

At the same time, cement itself is changing. Market research from USD Analytics showed an anticipated 5% composite annual growth rate in blended cement sales between 2024 and 2032, more than doubling throughout the period from US$253bn to US$369bn. If you can’t beat it, blend with it!

For a further discussion of alternative cement and binders in Europe, see Global Cement’s interview with ALCCC co-ordinator Joren Verschaeve in the forthcoming November issue of Global Cement Magazine on 17 October 2024.

Dominican Republic: Sika has announced the acquisition of fellow construction chemicals producer Vinaldom. This acquisition marks Sika’s first production site in the Dominican Republic and its sixth in the region, according to a press release. The deal aims to improve customer supply and support local production.

UK: Aggregate Industries has appointed Lee Sleight as its new CEO. He succeeds Dragan Maksimovic in the post, who was appointed as Region Head West Europe earlier in 2024. Sleight will take up his new position from 1 August 2024.

Sleight joined the UK subsidiary of Holcim in 2021 as the managing director of the ready-mixed concrete division. He became the head of the aggregates division in late 2023. Prior to his time with Aggregate Industries, Sleight worked for Sika in the UK from 2008 to 2019 in a variety of managerial roles. He was then appointed as Business Unit Manager for Sika in 2019.

Kaziwe Kaulule will succeed Sleight as the managing director of the company’s aggregates division. Kaziwe joined Aggregate Industries in late 2023 as Director of Strategic and Commercial Growth, having previously been CEO of Holcim’s South Africa and Zimbabwe businesses.

Saint-Gobain looks set to increase its presence in the construction chemicals market this week when it announced a deal to buy Fosroc. A definitive agreement has been set for the acquisition valued at just over US$1bn. The purchase will be financed in cash and is expected to close in the first half of 2025.

The light construction materials company has been growing its construction chemicals capabilities for several years now. In 2021 it acquired Chryso for Euro1.02bn and then it bought GCP Applied Technologies for Euro2.3bn in 2022. Acquisitions of smaller companies in the sector, including Duraziv and IMPAC, also took place. With regards to the proposed Fosroc transaction, Saint-Gobain highlighted in its press release that the deal was “supported by solid macroeconomic factors including the transition towards low-carbon concrete.” It also noted that Fosroc’s geographic profile would strengthen its own presence in emerging markets such as India and the Middle East. Chryso’s market share is mainly in Europe, Turkey and Africa. GCP’s is in North America, Latin America and Asia-Pacific.

As Riccardo Stoppa, Saint-Gobain’s Business Director of Cement additives related to Global Cement Magazine in our May 2024 issue, the Construction Chemicals Business Unit of Saint-Gobain’s High Performance Solutions (SGHS) division broadly produces two groups of products for the cement and concrete sector: additives and admixtures; and a wider range of more recent products using newer chemistry approaches. Saint-Gobain’s total annual revenue is around €48bn/yr with SGCC’s contribution weighing in at around €1bn/yr. Most of that latter revenue derives from the former businesses of Chryso and GCP. Finally, Stoppa highlighted SGCC’s strength in North America, Europe and China but also highlighted the potential in the Middle East for its products. That last point makes interesting reading in light of the current Fosroc deal.

India was flagged as a benefit of the proposed Fosroc purchase. If any further reminder of the growth and market consolidation taking place there were needed, UltraTech Cement revealed this week that it is in the process of buying a 23% share of The India Cements. This story ties into the rivalry between the country’s two largest cement companies. Both UltraTech Cement and Adani Group are mounting up production capacity at pace through both acquisitions and by building new plants. All of this is rosy news for a company selling additives and admixtures to the cement and concrete market.

Saint-Gobain latest acquisition is subject to the usual regulatory conditions as one might expect. Yet, what Saint-Gobain didn’t mention in its statement, was that it reportedly had one of its sites in Türkiye visited in late 2023 as part of an international investigation into anti-competitive behaviour in the sector. Switzerland-based Sika was also linked to the case at the time. The UK-based Competition and Markets Authority (CMA) announced in October 2023 that it had launched an investigation into suspected anti-competitive conduct in relation to the supply of chemicals for use in the construction industry. It said it was working with the European Commission and that it had been in contact with other authorities, including the US Department of Justice, Antitrust Division. At this time Sika confirmed to Construction News that inspections had taken place into “suspected antitrust irregularities in the area of additives for concrete and cement.” However, it is important to note here that these were merely information gathering activities and no accusations of any breaches of competition law have been made so far. All of this suggests that Saint-Gobain does not seem too troubled by the interest of the various competition bodies with regards to its expansion plans.

In his interview, Stoppa told Global Cement Magazine that SGCC’s products allow cement and concrete producers to reduce the amount of cement used in their concrete. This is almost heretical thinking to a world that produces too much clinker. Yet Saint-Gobain is betting on exactly this outcome through the expansion of its construction chemicals division. Its purchase of Fosroc is the latest stage in this line of thought. It’s not the only company doing this. In May 2023 Sika completed its purchase of MBCC Group, another admixture manufacturer. Further sector consolidation looks likely.

Switzerland: Holcim has appointed Miljan Gutovic as its new CEO, effective 1 May 2024. Gutovic will replace Jan Jenisch, who will continue in his role as chair, for which he is set to stand for re-election at the group’s upcoming 2024 Annual General Meeting. Jenisch is also tasked with leading the planned US listing of Holcim's North American business.

Miljan Gutovic has served on Holcim’s Group Executive Committee since 2018, including as its regional head of Middle East and Africa, regional head of Europe and head of operational excellence. Holcim said that Gutovic’s area leadership helped to strengthen its market positions and deliver industry-leading margins. He also succeeded in advancing decarbonisation as a driver of profitable growth. Prior to joining Holcim as head of marketing and innovation in March 2018, Gutovic spent 12 years with construction chemicals producer Sika, where he became area manager Sika Middle East in January 2016. Gutovic has a civil engineering background and holds a PhD in Engineering from the University of Technology Sydney, Australia.

Jan Jenisch said "I am very pleased that the board has appointed Miljan as the new CEO of Holcim. He is a highly qualified successor who has played an instrumental role in Holcim’s successful transformation to become the leader in innovative and sustainable building solutions. Miljan has strengthened our business with record profitability in Europe, closing strategic transactions and building winning teams. I am honoured to stand for re-election as the chair of the board and to lead the planned US listing of Holcim’s North America business. I will continue to dedicate all my efforts to the future of Holcim and all our stakeholders.”

Miljan Gutovic said "I thank the board of directors for trusting me to lead Holcim into its next chapter of success. As a civil engineer who is passionate about the construction industry, Holcim is the best company to be part of. With decarbonisation and advanced technologies transforming how we build, there has never been a more exciting time for our sector. I look forward to working with the Holcim teams around the world to advance our leadership.”

China: Switzerland-based Sika has opened its new Suzhou Technology Centre in Jiangsu Province. The centre will help Sika to develop its sustainable and high-performance technologies in order to grow it market potential throughout the Asia/Pacific region. By strategically expanding its research and development activities across all core technologies, Sika aims to further strengthen its global innovation leadership.

Chief innovation and sustainability officer Patricia Heidtman said "With our new technology centre, we are strengthening our innovation capabilities in the Asia/Pacific region and are fostering synergies in sustainable construction and environmentally friendly mobility. We have created the ideal framework for close collaboration between our research teams. It will thus enable us to develop forward-looking technologies for our customers that combine sustainability with performance."

Switzerland: The board of directors of Holcim intends to propose Jan Jenisch as the group’s chair at its annual general meeting in May 2023. The move follows current chair Beat Hess’ decision not to stand for re-election. Hess was elected to Holcim’s board of directors in 2010 and became its chair in 2016. Jenisch has been the chief executive officer (CEO) of Holcim since 2017 and a member of the board of directors since 2021. He was previously the CEO of Sika from 2012.

India: Sika India has appointed Parag Solanki as its Director of Technology. He previously worked as Vice President- R&D at ACC. Before this, Solanki held a variety of research and development roles at Sika. He also worked for UltraTech Cement and Shree Cement. Solanki holds a PhD from Jai Narain Vyas University in Jodhpur as well as a further qualification from the Indian Institute of Management in Kolkata.

Australia: The Australian Competition and Consumer Commission (ACCC) has called for public comment on Switzerland-based Sika's proposed acquisition of Germany-based fellow construction chemicals producer MBCC Group. The commission has raised 'preliminary concerns' over the possible competition impacts of Sika obtaining an 80% Australian market share as a result of the deal.

Sika group responded to the ACCC's concerns with an offer of an undertaking to divest MBCC Group's entire Australia and New Zealand business.

More mergers and acquisition news emerged this week in the shape of potential buyers for Sika’s US admixtures business. Reporting from Bloomberg revealed that Holcim, HeidelbergCement and Turkey-based Sabancı Holding had all made it, amongst other unnamed companies, to a second round of bidding for the assets. Sika then confirmed this to the Finanz und Wirtschaft newspaper and added that the sale would also relate to Canadian assets as well. The intention here is to bypass the risk of a lengthy competition investigation in the US.

Switzerland-based Sika announced in November 2021 that it had signed a deal to buy MBCC Group from Lone Star Funds, a global private equity firm, for Euro5.2bn. At the time of the announcement Sika said that the transaction was subject to regulatory approval but it added that it was ‘confident’ that all required clearances would be obtained with closure planned for the second half of 2022. Known competition probes are now pending in the UK, Australia and New Zealand. A previous piece from Bloomberg suggested that internal analysis by Sika found that the company might need to divest operations with annual sales of around US$160m with a value of US$400m. However, the latest update suggests a value of up to US$1bn. The US represented US$1.71bn or 18% of Sika’s total group sales in 2021. Sika’s information to shareholders to let them know about the MBCC acquisition in November 2021, showed that MBCC had sales of around US$966m in the Americas in 2021 with 36 production plants. Overall, not just in the US, the deal is expected to change Sika’s technology mix from 40% concrete and cement systems to 49%, with most of the additions coming from concrete applications.

Divestments were always likely in an acquisition this large between competitors with shared geographies. What is interesting here to the cement sector is that the three named interested parties are all cement producers. Holcim is perhaps the least surprising given its size, pivot towards light building materials and the fact that its current head, Jan Jenisch, used to run Sika. If anyone knows how much an admixture company is worth, it’s the guy who ran one five years ago! HeidelbergCement does not have such a large light building materials business footprint but it is demonstrably interested in making heavy building material production more sustainable. Also, as the world’s second largest western multinational cement producer it is likely to be interested in an input market for some of its end products. Sabancı Holding is the outlier in this grouping with a more regional grey cement business based in Turkey, an international white cement business and a diverse set of business interests including finance and energy. Although, even as the smallest of the bunch, it still reported sales revenue of over US$9bn in 2021. One notable absence from the potential contenders list for Sika USA is Cemex. Its Urbanisation Solutions division, which produces admixtures among other products, reported sales of US$1.9bn in 2021 or 13% of the group’s total revenue. US$558m of this was made in the US.

The wider context in the North American admixture market is that the announcement of Sika’s deal with MBCC in November 2021 was followed about a month later when Saint-Gobain said it had entered into a deal to buy GCP Applied Technologies. This followed Saint-Gobain’s acquisition of Chryso in October 2021. However, Saint-Gobain said that the GCP deal would strengthen its position more in North America. Readers can find out more about Saint-Gobain’s ambitions here.

The final word at this stage should go on Lone Star Funds, the current owner of MBCC. Lone Star Funds bought the construction chemicals business from BASF for Euro3.17bn in September 2020. At the time the acquisition closed Saori Dubourg, a member of the board of executive directors of BASF, said “Lone Star has been a professional partner in this transaction and is committed to the future success of the business.” If the reporting is correct, Lone Star Funds is now selling the same business for over Euro5bn. There are two takeaways to consider at this point. One is that the perceived value of products that make cement and concrete more sustainable are growing. The other is that Lone Star Funds timed its acquisition of MBCC from BASF very well.