Displaying items by tag: Spain

Spain: Cement consumption in Andalusia fell by 15% in the first quarter of 2024, to 0.67Mt, marking a decrease of 0.11Mt from the same quarter in 2023. The Cement Manufacturers Group of Andalusia (AFCA) attributes the significant 29% drop in March 2024 to the timing of Holy Week and heavy rainfall, which impacted construction activities. Exports of clinker and cement also decreased by 34.2%, with a volume of 97,609t in the first quarter of 2024. Over the last 12 months, consumption declined by 3.8% to 3.06Mt.

President of AFCA, Carmen Díaz Canabal, said "We will have to wait for the second quarter data to see the real evolution of the behaviour of the cement market, and therefore of construction, during this year."

Spain: The Cemex plant in Morata de Jalón, Zaragoza, has won €2.8m in aid from the Spanish Ministry of Industry's first Perte resolution for industrial decarbonisation. This funding, part of a larger €96m aid package, will support the plant's clinker production process and its transition to using sustainable fuels.

The aid will increase the use of alternative fuels in clinker production by incorporating waste-derived and biomass fuels.

Cemex announced last week that it will stop producing clinker at its Lloseta plant in Mallorca. Grinding activity at the site will continue, along with the shipment of bagged and bulk cement products. The company has framed the closure as part of its decarbonisation plans. The dismantling of the two preheater towers at the plant is scheduled to take place by the end of 2030. Cemex said that it will take this long to allow the cement plant to continue operating, as well as a neighbouring hydrogen unit and other nearby industrial units. The status of the Lloseta plant has been in question before. It was closed in early 2019 due to reduced cement demand and mounting European CO₂ emissions regulations. However, it reopened in 2021.

Readers may recall that Cemex España participated in the Power to Green Hydrogen Mallorca project. Land by the Lloseta cement plant was used to hold solar panels and a solar-powered hydrogen unit. Other partners in the project included energy suppliers Enagás and Redexis and renewable power and infrastructure company Acciona, among others. When the unit was commissioned in early 2022, it said it was the first solar power-to-green hydrogen plant in Spain. The link between Cemex and hydrogen is noteworthy given the cement company’s adoption of hydrogen injection as part of its alternative fuels strategy. Interestingly, Acciona planned to use a blockchain method to certify that hydrogen produced at the site was made using renewable energy sources. Heidelberg Materials also plans to use the same process to verify its evoZero brand of net-zero cement products in 2025. Another recent sustainability sector news story in Spain is the commissioning by Çimsa of a 7.2MW solar plant supporting its Buñol white cement plant in Valencia. The new installation is expected to supply about 18% of the plant’s energy needs.

On the corporate side of things, FCC revealed in mid-May 2024 that it was preparing to spin-off its cement and real estate subsidiaries into a new company called Inmocemento. The cement part of this is Spain-based Cementos Portland Valderrivas. The move is intended to bolster the values of the different parts of the business. The proposal will be put to FCC’s shareholders in late June 2024, with any resulting action taking place by the end of the year. The decision to separate FCC’s cement assets is reminiscent of the financial engineering Holcim has proposed with its US business. However, in this case the driver does not appear to be the disparity between the European and US stock markets.

Graph 1: Domestic consumption and exports of cement in Spain, 2013 - 2023. Source: Oficemen.

Market data was also out this week from Oficemen, the Spanish cement association. Domestic cement consumption grew year-on-year in April 2024 but the year so far is looking weaker with consumption from January to April 2024 down by 4.5% year-on-year to 4.65Mt. This is below Oficemen’s forecast for 2024 where it expected a stagnant situation. However, there are eight more months to go. In 2023 cement consumption fell by 3% to 14.5Mt and exports declined by 7.5% to 5.2Mt. The association blamed continued underinvestment in both the public and private sectors due to economic instability since the Covid-19 pandemic. Graph 1 above shows the wider situation in the Spanish cement market over the last decade. The share of exports has declined and local consumption rebounded after 2020 but has declined since then.

These news stories provide a snapshot of what’s been happening in Spain recently in the cement sector. Oficemen’s prediction for 2024 is gloomy but local consumption has risen over the past 10 years. Exports have fallen but the cement association has started to spin the country’s decarbonsiation drive as a potential positive for the industry’s competitiveness generally. It’s hard to discern right now but there might be an advantage for an export-focused country that conforms to European standards in the future if it can hold onto its capacity. Admittedly, that’s a big if. This thinking along sustainability lines could be seen earlier in May 2024 when Cementos Molins Group rebranded itself as Molins. It described the rebranding as a bid to represent the wider range of construction products it manufactures and sells beyond cement. Oficemen has also pointed out that the local market has room for development given the relatively low cement consumption per capita in Spain compared to its peers. So, whatever happens next, there is likely to be room for improvement in the cement market.

Spain: Cement consumption has increased by 11.5% year-on-year in April 2024, reaching 1.3Mt, which is 136,000t more than April 2023, according to the latest statistics published by the Cement Manufacturers Association (Oficemen).

For the first four months of 2024, cement consumption amounted to 4.65Mt, marking a year-on-year decline of 4.5% compared to the same period in 2023. This represents a loss of 218,000t. Over the last 12 months (May 2023 - April 2024), cement consumption also fell by 4.5%, with total consumption standing at 14.3Mt, 672,700t less than the previous period.

Exports fell nearly 24% in April, amounting to 387,500t. For the year to date, from January to April 2024, exports have reached 1.45Mt, a decrease of 25.3% compared to the same period in 2023. Over the last 12 months, exports have dropped below 5Mt, nearly 1Mt less than the previous year.

Oficemen's general manager, Aniceto Zaragoza, said "This is the first positive month after ten months of decline. However, this percentage growth was influenced by the calendar effect, as this April had more working days due to Easter being in March, not April as last year. In fact, the average daily consumption figures, which are more sensitive to the number of working days, show a decline of 8.8%."

Spain: Cemex has announced the definitive closure of its clinker production kilns at the Lloseta plant, aligning its operations with the global 'Future in Action' programme that targets carbon neutrality by 2050.

The company has confirmed its plans to the government and the Lloseta City Council to dismantle the two cyclone towers at the Lloseta plant by 31 December 2030. While clinker production will cease, the site will continue to engage in grinding, storage, marketing and dispatch of bulk and bagged cement; maintain its regional offices, aggregate treatment plant, ground transport base and operate the Can Negret quarry in Alaró.

The plant’s closure has led to the dismissal of six of the seven employees who worked at the kilns. Cemex has offered these workers positions at other company production centres.

Spain: Çimsa has invested €4.2m in launching a solar photovoltaic power plant to power its white cement plant in Buñol, Valencia. The solar plant has a capacity of 7.2MW and will supply about 18% of the energy needs for the cement plant.

The facility features 11,000 solar panels spread over 100,000m². This new solar power plant is expected to produce approximately 12GWh/yr of electricity, reducing CO₂ emissions by about 3000t/yr.

Spain: Molins has launched a new corporate identity, consolidating its commercial brands—Cementos Molins Industrial, Promsa, Propamsa, Pretersa-Prenavisa and Precon—into the single Molins brand. This move represents a broad array of construction products and solutions under one unified identity. In line with this, Molins also introduces Susterra, a new range of sustainable solutions.

CEO Julio Rodríguez said "Cement is the foundation of this company, accounting for 60% of our current business. However, today we are a company that offers a wide range of construction solutions, and our long-term strategy is to continue growing in all types of construction solutions to provide increasingly better service to our customers."

Spain: The Mexico-based owner of the Spain-based cement producer FCC, Carlos Slim, is reportedly planning to spin-off its cement and real estate assets into a separate business. The new entity, to be known as Inmocemento, would then be listed on the Madrid stock market, according to Reuters. Slim directly owns around 12% of FCC and controls a further 76% of the company through investment vehicles Inversora Carso and Operadora Inbursa.

Inmocemento would take FCC's cement plants, the majority stake it owns in the real estate developer Realia and a minority stake in Metrovacesa. Current FCC shareholders would receive Inmocemento stakes equivalent to their holdings in FCC.

FCC currently owns assets in different industries such as construction, water and sewage, waste management, cement and real estate. FCC's cement units reported revenues of €614m in 2023, while income from real estate was €254m. Together, these sectors represented 9% of FCC's revenue. It operates its cement business via the Cementos Portland Valderrivas subsidiary.

FCC said in a financial disclosure that its board believes that the move would boost shareholder value as the new and existing companies are likely to be worth more apart than together.

Spain: The Spanish cement manufacturers' association, Oficemen, and Siemens Energy have signed a two-year collaboration agreement to develop decarbonisation techniques and solutions for Spain's cement industry. The agreement was signed by Siemens Energy's Industrial Sales Director for Southwest Europe, Angel Cillerruelo, and Oficemen's General Director, Aniceto Zaragoza.

Zaragoza said "The Spanish cement industry's commitment to climate neutrality by 2050, outlined in our roadmap, includes exploring the most effective levers for emission reduction, such as the decarbonisation of energy sources or the comprehensive energy management of industrial processes."

Spain: Cement consumption has dropped by 10% in the first quarter of 2024, totalling 3.3Mt. This represents an 11% year-on-year decrease compared to the same quarter of 2023, according to the latest data released by Oficemen. The 2024 quarterly decline was influenced by a 23.6% fall in consumption in March 2024 to 1.1Mt, 339,869t less than March 2023. Over the last 12 months (April 2023 - March 2024), consumption fell by 6.4% to 14.1Mt, nearly 1Mt less than in the previous corresponding period of April 2022 – March 2023.

Oficemen general director Aniceto Zaragoza said "Aside from the situational circumstances of March 2024, the year-moving data reflect a negative trend, resulting from 10 months of decline. This is concerning but in line with our forecasts that anticipated a negative start to the year, with a modest recovery in the second half, provided that the international and local situation remains stable.”

Cement exports have declined by 25.1% in the first quarter of 2024, standing at around 1Mt. In March 2024, the decline was 32.4%, with a loss of 178,953t, marking nine months of consecutive declines. Over the year-moving period, the fall is 14%, with a total of 4.8Mt of cement exported. representing a loss of almost 800,000t less than in the previous 12 months.