Displaying items by tag: Strategy

Colombia: Dow Jones has named Grupo Argos in its Sustainability Index 2021, the company’s ninth time appearing in the ranking. It achieved its highest ratings in materiality, risk management, environmental reporting, climate change strategy, social reporting and human rights. The group said that the listing constitutes its recognition as the most sustainable cement company in the world. Its sustainable initiatives include offering collection of its used cement bags, supplying all the electricity for its Colombian operations from renewable sources and currently having three credit facilities linked to environmental, social and governance indicators.

Legal and sustainability vice-president Maria Isabel Echeverri said “At Argos, we are greatly satisfied with this result which places us as a world benchmark in sustainability and reassures our commitment to closing gaps and implementing best practices in social, environmental, financial and corporate governance matters. This drives us to continue moving forward in creating social value to build the dreams of housing and infrastructure for millions of people.”

Spain: FYM has agreed to sell its Southern Spain business to Brazil-based Votorantim Cimentos. The assets consist of the 1.6Mt/yr Málaga cement plant and 11 ready-mixed concrete plants and aggregates assets in Andalusia. Parent company HeidelbergCement said that the divestments accord with it Beyond 2020 strategic vision. FYM retains its Northern Spain cluster in the Basque Country, Cantabria, La Rioja and Navarra, which it operates under the Cementos Rezola brand.

Mexico: Cemex has successfully closed a US$3.25bn syndicated credit agreement. The group said that it used the proceeds to repay its previous US$2.65bn facilities agreement. The new agreement will require repayment in November 2026. As the facility is worth 23% more than its previous one, the company said that it will have a stronger liquidity position than previously, resulting in a favourable company risk and credit rating situation.

CEO Fernando Gonzalez said "This new credit agreement represents a major milestone in our path to investment grade as it is our first major syndicated unsecured bank agreement since 2009. It showcases Cemex’s continued access to diversified funding sources while further aligning our financing strategy to our leadership in addressing climate change.” He added “We are starting a new chapter for the company where we shift our strategic balance a bit more towards growth and the advancement of our Climate Action goals.”

India: Dalmia Cement plans for 100% of its cement to be low carbon by 2031. The company has a US$405m carbon capture and utilisation (CCU) investment plan to help it to realise its goal. It will also undertake carbon offsetting measures.

Business Line News has reported that the company plans to spend US$1.35bn to increase its installed cement capacity by 52% to 50Mt/yr from 33Mt/yr before the 2024 financial year.

Australia: James Hardie recorded consolidated sales of US$1.75bn in the first half of its 2022 financial year, up by 28% year-on-year from US$1.36bn in the first half of the 2021 financial year. Its earnings before interest and taxation (EBIT) more than doubled to US$398m from US$197m. Fibre cement board sales increased by 17% in North America to 463Mm2 from 395Mm2 and more than doubled to 96.5Mm2 from 47.3Mm2 in Asia Pacific.

During the 2022, 2023 and 2024 financial years, the group plans to complete expansions of its Prattville, Alabama, cement board plant in the US and a European cement board plant, and to establish a new cement board plant in Victoria, Australia. It also aims to purchase land in the US for a future new cement board plant there.

CEO Jack Truong said "Our mission is to be a high-performance global company that delivers organic growth above market with strong returns, consistently. Ten consecutive quarters of growth above market with strong returns has led to an acceleration in operating cash flow, which is allowing us to expand our global manufacturing capacity, accelerate our growth initiatives, return to ordinary dividends, reduce our debt position, and increase the cash contributions to the Asbestos Injuries Compensation Fund (AICF)."

World: Three cement producers - Cemex, Dalmia Cement and Holcim – are founding members of COP26’s First Movers Coalition public-private partnership. The partnership plans to use its global purchasing power to create markets for emerging CO₂ emissions reduction technologies, in order to accelerate and scale collective impact towards the global realisation of emissions reduction targets.

The coalition expects technologies currently on the market to account for 82% of CO₂ emissions reduction before 2030 and 50% before 2050, while it expects future technologies to account for 15% before 2030 and 46% before 2050.

UK: Cemex has agreed to sell its Cardenden, Dundee, Greenock and Perth ready-mix concrete plants to Tillicoultry Quarries. The company thanked its employees at the sites for their commitment. It said that the asset sale is part of a portfolio rebalancing strategy aimed at high growth metropolitan markets.

Germany: Cementos Molins has concluded its acquisition of calcium aluminate cement producer Calucem following all regulatory approvals. Calucem operates the Pula grinding plant in Istria, Croatia and a bauxite quarry in Turkey. The new acquisition positions Cementos Molins as the world's second largest calcium aluminate cement producer. The company said that it expands and enhances its innovative and sustainable product range in line with its sustainable growth strategy.

CEO Julio Rodríguez said “I warmly welcome the Calucem team into the Cementos Molins family. Today marks a new and exciting milestone in the history of Calucem and Cementos Molins and, with this integration, we have excellent business development opportunities for a new step forward to our strategy of profitable and sustainable growth.”

Calucem CEO Yuri Bouwhuis said “We are excited about the integration into Cementos Molins, where we will accelerate our development and create together more value for all our stakeholders.”

Switzerland: Holcim has announced new global social impact targets for 2030 under its new People Strategy. The targets fall under three pillars. These are ‘bridging the housing and infrastructure gap,’ ‘improving livelihoods’ and ‘upholding human rights.’ The company says that this will entail efforts to ensure adequate housing and infrastructure for all, support for health, education and skill building and the implementation of due diligence across its value chain. The strategy includes a target to create Euro468m of social value by 2030. The figure will include the total value of schools, hospitals, rural roads and affordable housing renovated or built in the period. Between 2016 and 2020, Holcim benefited over 31m people with Euro187.21m in social investment.

CEO Jan Jenisch said “Our business plays an essential role in society's progress. We build the roads, bridges, hospitals and schools that enable people to thrive around the world. With 3bn people expected to lack access to adequate housing by 2030, I am committed to putting our business to work to uplift our communities.”

World: Forty cement and concrete producers, representing 80% of concrete production outside of China in 2020, have together affirmed their commitment to the Global Cement and Concrete Association (GCCA)’s Roadmap to Net Zero concrete decarbonisation strategy. The roadmap’s seven-point plan consists of increased cement plant efficiency, which should eliminate 22% of emissions, increased concrete production efficiency (11%), adjustments to cement and binders (9%), decarbonisation of raw materials (11%), carbon capture and storage (CCS) (36%), a transition to renewable energy (5%) and the natural recarbonation of concrete (6%).

Besides full decarbonisation by 2050, the strategy provides for a 25% reduction in the global concrete sector’s CO₂ emissions by 2030 and the elimination of 4.9Bnt of CO₂ emissions by 2030 alone. The GCCA called the new commitment a ‘significant acceleration’ of cement and concrete producers’ on-going decarbonisation efforts, and said that it represented ‘the biggest global commitment by any industry’ to carbon neutrality. Acknowledging the burden on cement producers, the GCCA called on downstream companies and governments to support the industry’s transition.

GCCA member China National Building Material (CNBM) CEO Cao Jianglin said “This is a landmark for industry co-operation in decarbonisation. As part of a global industry, it will need collaboration across our sector to achieve it. As one of the leading cement and concrete producers in China, we will play our part in decarbonising the industry.”