Displaying items by tag: Strategy

France: The French cement association France Ciment has announced a new CO₂ emissions reduction target of 50% across the cement industry between 2021 and 2030. The new target for 2050 will be 'virtual carbon neutrality.' The Les Echos newspaper has reported that the commitments replace previous reduction targets of 24% by 2030 and 80% by 2050. France Ciment says that its members are planning estimated investments of Euro5bn towards achieving the goals before 2040. These investments will cover areas including the deployment of carbon capture. Existing public and private investments in the industry's on-going projects to reduce CO₂ emissions amount to Euro1.7bn - sufficient to eliminate 27% of emissions compared with the 2021 baseline.

France Ciment’s President Benoit Pillon noted the necessity of cement in construction, and called for 'decarbonisation as a whole: less clinker in cement, less cement in concrete and less concrete in construction.' He urged the implementation of policies to secure 'decarbonised and competitive electricity.'

India: Indian industrial companies plan to increase their capital expenditure (CAPEX) investments by 14% year-on-year in the current, 2024, financial year, the Financial Express newspaper has reported. UltraTech Cement says that it will more than double its CAPEX investments to US$1.55bn during the year (1 April 2023 - 31 March 2024). Adani Green Energy, the renewable electricity subsidiary of Ambuja Cements' parent company Adani Group, has the highest planned investments of any Indian industrial company. It also plans to more than double its CAPEX spending, to US$1.69bn in the 2024 financial year.

Europe: Cemex has launched its latest packaging design for its Vertua reduced-CO₂ product range at the Low Carbon World exhibition in Paris, France. The new design incorporates products' scores across five 'sustainability attributes:' emissions reduction, energy efficiency, conservation of water, recycled content and design optimisation. Cemex will now deploy the design across Europe by June 2023.

Cemex's Europe, Middle East and Africa regional president Sergio Menendez said “Cemex is attuned to the need to focus on all aspects that can make a product more sustainable - not just achieving a lower carbon footprint. With the updated classification system for Vertua, customers can now more easily identify which of our products leverage the cutting-edge technology and innovation that will enable them to overcome the challenges they are currently facing in construction and renovation." Menendez concluded "The enhanced Vertua brand represents a more ambitious and stronger approach: from a group of low carbon products to a family of products and solutions that encompass more sustainable attributes and contribute to our company vision of building a better future.”

India: Adani Group says that it will raise funds for its 2028 capacity expansion plan through internal accruals. The producer plans to double its cement capacity to 140Mt/yr by 2028, and also double its sales to US$8.5bn that year. The Financial Express newspaper has reported that the group says its internal accruals will be 'sufficient' to realise its aims. The group is reportedly 'on track' to commence the first phase of the planned expansion in early-mid-2023. It has also set out a cost reduction roadmap with a view to becoming India's most profitable cement company.

Chair Gautam Adani says that he anticipates a 'multi-fold rise' in all-Indian cement consumption due to forecast high economic growth and the government's infrastructure spending plans.

China: Anhui Conch Cement plans to invest US$2.81bn in capital expenditure (CAPEX) throughout 2023. The investments will go towards building new capacity, upgrading to new technologies and increasing plants' energy efficiency. The Morning Star newspaper has reported that the producer currently faces high energy costs, against a backdrop of reduced cement demand.

Anhui Conch Cement recorded sales of US$19.2bn in 2022, down by 21% year-on-year from US$24.4n in 2021.

Germany: Solid UNIT Germany, the German construction sector association, has launched its climate advisory board. The board will advise on and jointly instigate initiatives together with the Solid UNIT Germany management board. Its membership comprises representatives from the German Sustainable Building Council (DGNB), the Institute for Sustainable Construction in Germany (ARGE) and the Federal Chamber of Architects, along with members of parliament.

Solid UNIT Germany managing director Thomas Zawalski said "To cope with the Herculean task ahead of us, it is important to bundle experience. Faster CO₂ reduction in the building sector is only possible through joint action by all stakeholders."

Japan: Taiheiyo Cement has obtained a Transition-Linked Loan, the first of its kind in the Japanese cement industry. The loan employs sustainability performance targets (SPTs) based on the company's 2030 interim sustainability targets and 2050 Carbon Neutral Strategy. The former consists in a 40% reduction in its total CO₂ emissions, including Scope 3, and a 20% reduction in its Scope 1 and 2 CO₂ emissions, between 2000 and 2030.

Spain: Cementos Molins' sales were Euro1.27bn in 2022, up by 31% year-on-year from 2021 levels. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) were Euro276m, up by 14% over the same comparison period. The producer noted significant earnings contributions from its South American and Asian business, as well as from new acquisitions during the year. Its implementation of its operational efficiency plan and price rises successfully offset inflationary pressures. Throughout the year, the group's debt dropped by 18% to Euro145m.

Cementos Molins CEO Julio Rodríguez said "We have achieved record sales and profits in a very complex year with a constantly changing environment; despite this, once again we have been able to confirm the strength of our business model by achieving the objectives of the strategic plan 2020-2023 one year ahead. I would like to highlight that these results are the consequence of the contribution and talent of the Cementos Molins team worldwide and imply a boost of energy to continue working on the priority objective: our 2030 Sustainability Roadmap.”

China: Taiheiyo Cement subsidiary Jiangnan-Onoda Cement suspended its production and sale of cement on 28 February 2023. Its Japan-based parent company said that it decided to suspend operations due to the 'tougher competitive environment' in China. This came about due to other producers' capacity expansions and 'advances in technical capabilities.' The suspension is in line with Taiheiyo Cement's strategy for the construction of a new business portfolio in Asia, under which it plans to expand its footprint in Southeast Asia and develop its logistics network.

Austria: RHI Magnesita reported revenues of Euro3.3bn throughout 2022, up by 30% year-on-year from 2021 levels. The refractories supplier's raw materials and shipping costs rose, but it was able to offset the rise by increasing its prices. The company said that this generated Euro600m in additional revenues, enabling it to maintain profitability 'through a challenging economic cycle.' It noted global volatility and uncertainty, which it expects to continue into 2023, for which it forecast a full-year drop in global cement demand. It expects 'strong growth' in India to offset any resulting decline in its sales in other markets.

RHI Magnesita CEO Stefan Borgas said "I am pleased to report growing progress on our mergers and acquisitions strategy, with acquisitions in India, China, Türkiye and Europe agreed or completed during the year. Whilst the outlook for 2023 is more uncertain than prior years due to slowing demand for refractories and softer pricing in certain regions, RHI Magnesita is able to face these challenges in a much stronger condition as a result of the implementation of its strategic cost savings and sales strategies over the past four years."