Displaying items by tag: Strategy

Thailand: Siam Cement Group (SCG) says that it is reviewing its planned US$2.4bn investment programme for 2022 due to the changing conditions it faces following the Russian invasion of Ukraine and ensuing cost rises. The Bangkok Post newspaper has reported that the company has recorded a rise in raw materials and energy costs across its businesses.

President and chief executive officer Roongrote Rangsiyopash said "We will delay some new investment projects, especially greenfield investments, and consider increasing more investments under merger and acquisition plans to avoid possible impact on our long-term financial management." Rangsiyopash added "Prices of cement and building materials will also gradually increase."

UK: The Mineral Products Association (MPA) has urged the the UK government to reduce energy costs, maintain mineral products companies’ access to low-tax red diesel and to deliver on planned infrastructure investments. The association says that high costs already threaten its member’s competitiveness against EU-based rivals. The Ukraine crisis has caused energy costs to rise, while mineral products companies expect their rebate for red diesel to end on 1 April 2022. The MPA has asked the government to delay the end of the red diesel rebate. It also called for transparency on the delivery of the government’s infrastructure plans.

CEO Nigel Jackson said “The high ambitions the government has set out for the UK’s infrastructure and housing rely on our members’ ability to supply aggregates, asphalt, cement, concrete and other essential materials You can’t build with thin air – construction needs materials and producing materials requires long-term planning and investment, so our industry needs clarity on what’s in the pipeline for the next 10 or 20 years, not the next 10 months. There is a widely recognised maxim ‘if you can’t grow it, you have to dig it.’ Clearly, this is not as recognised by government given the exemptions and subsidies some other industries enjoy. We also provide high-skill, well-paid jobs in regions most in need of economic growth.” Jackson concluded “Our overriding aim is for our sector to deliver for the UK by having economic conditions that reduce uncertainty and boost confidence to encourage investment for growth.”

Russia/Ukraine: CRH says that it has withdrawn from the Russian building materials market. It operated seven ready-mix concrete batching plants and a concrete panel plant in St Petersburg through its subsidiaries LujaBetomix and Rudus. CEO Albert Manifold estimated the group’s investments in the businesses to be Euro1.5 – 2m. RTÉ News has reported that Manifold called the operations ‘infinitesimally small,’ and said that a Russian withdrawal had previously been on the group’s radar anyway.

CRH says that it has suspended its Ukrainian operations, which reportedly generated Euro281m in sales in 2021, and continues to support its 820 employees in the country in every way it can.

Belgium: Cemex has joined the Cambridge Institute for Sustainability Leadership (CISL)’s Corporate Leaders Group Europe in order to lead the corporate transition to a climate neutral economy. The company joins a cross-sectoral body of members from across the EU.

Cemex’s Europe, Middle East and Africa regional president Sergio Menendez said “With its Future in Action programme, Cemex is committed to leading on the road to carbon neutrality. We are proud to join forces with the CISL’s Corporate Leaders Group Europe and other global companies to accelerate the decarbonisation of the built environment. We look forward to working together with the Corporate Leaders Group Europe to help us all achieve our shared climate action goals in Europe.”

Australia: Boral plans to install chlorine bypass technology at its Berrima cement plant in New South Wales. The Illawara Mercury newspaper has reported that the installation will help the plant to double its alternative fuel (AF) substitution rate to 100%. This is one of the ways in which the producer aims to reduce its Scope One and Two emissions by 46% between 2020 and 2030.

In mid-February 2022, Boral acquired new land at the site of its Dunmore quarry, also in New South Wales.

US: The Portland Cement Association (PCA) has responded positively to a raft of new measures launched by President Joe Biden to aid industrial decarbonisation. The new measures include: US$8bn investment in regional clean hydrogen hubs and a further US$1.5bn investment in associated initiatives; new carbon-based trade policies; greater incentivisation for carbon capture, utilisation and sequestration (CCUS) projects; and the launch of a Buy Clean Taskforce for government procurement and two interdisciplinary industrial advisory bodies to support research and innovation.

PCA chief executive officer and president Michael Ireland said “We are pleased to see our thinking reflected in many of the actions proposed today. We are delighted the White House has recognised that carbon reductions cannot be achieved via a single industry in isolation: it requires collaboration across an entire value chain.” He said that the White House’s approach aligns with the organisation’s own in its lifecycle approach to evaluating construction materials, encouraging collaboration, engaging the workforce and incentivising private sector innovation. Ireland continued "We look forward to working together with the White House Office of Domestic Climate Policy and the Council on Environmental Quality on this vital initiative.”

US: Argos USA has announced the upcoming transition of its Roberta, Alabama, cement plant to Portland limestone cement (PLC) Type IL production. By mid-2022, the company plans to produce 100% PLC at the 1.7Mt/yr plant. Its Durham, Statesville and Wilmington cement terminals in North Carolina will also transition to the exclusive distribution of PLC. The Roberta plant will directly serve customers in Alabama, Florida, Georgia and Mississippi.

Argos USA has also launched PLC production at its Harleyville, South Carolina, Newberry, Florida, and Martinsburg, West Virginia, cement plants. It aims to begin producing PLC at all of its cement plants nationally by 2024.

CEO Bill Wagner said "We are excited to announce the transition of the Roberta plant to 100% (PLC) Type IL. With this transition, we continue to support our customers and the industry on its road to lower greenhouse gas emissions. With PLC, we are supplying a more environmentally friendly building solution for our customers, engineered to deliver an outstanding quality and performance while lowering our carbon footprint.”

Mexico: Cemex recorded consolidated net sales of US$14.5bn in 2021, up by 14% year-on-year. Sales rose by 10% to US$4.83bn in Europe, Middle East, Africa and Asia, by 9% to US$4.36bn in the US, by 23% to US$3.47bn in Mexico and by 16% to US$1.57bn in South, Central America and the Caribbean. The group’s operating earnings before interest, taxation, depreciation and amortisation (EBITDA) also rose, by 18% to US$2.86bn.

CEO Fernando González said “We are very pleased to report exceptional financial and strategic performance during 2021, despite the unprecedented challenges from Covid-19 and cost inflation.” He continued “In 2021, under our Future in Action programme, we accelerated our climate action ambition, establishing more aggressive 2030 decarbonisation goals as well as a detailed plant-by-plant roadmap to reach the targets. With our enhanced roadmap in place, we achieved our lowest carbon emission level on record and our largest annual year-on-year decline. And we pushed the boundaries on innovation, introducing new sustainable products and developing breakthrough decarbonisation technologies. Our performance gives me great confidence that we can reach not only our 2030 climate goal but also our Net Zero ambition.”

Australia: In the third quarter of the 2022 financial year, James Hardie’s net sales rose by 22% year-on-year to US$900m. Its Asia Pacific fibre cement business recorded sales of US$140m, up by 20% and adjusted earnings before interest, taxation, depreciation and amortisation (EBIT) of US$38.2m, up by 17%. James Hardie’s North America fibre cement business’ sales also rose, by 24% to US$645m, while its adjusted EBIT rose by 18% to US$183m. Following the results, James Hardie raised its 2022 net income guidance to US$620 – 630m from US$605 – 625m.

Interim chief executive officer Harold Wiens said, "I am pleased to report the James Hardie team has continued to execute well on our stated global strategy.” He attributed the successes to “Firstly, enabling our customers to make more money by selling more James Hardie products and, secondly, marketing directly to the homeowners to create demand of our high value products through our customers."

Wiens also announced the launch of the company’s new Architectural cement boards collection.

Spain: Cemex’s Mósteles clinker pilot batch production unit at IMDEA Energy Institute in Madrid Autonomous Community has produced its first batch of solar-heated clinker. The unit uses Switzerland-based Synhelion solar radiation technology. The technology uses a solar receiver and gaseous heat transfer fluid to heat raw materials.

Cemex chief executive officer Fernando Gonzalez said “The production of the first solar clinker is an exciting milestone for this transformational technology. It is proof of our commitment to deliver tangible outcomes through innovation to achieve our goal of delivering only net-zero CO₂ concrete by 2050.” He concluded “Cemex is building a better future, and that future must be sustainable.”