Displaying items by tag: Strategy

Thailand: Siam Cement Group (SCG) recorded revenues of US$11.8bn during the first nine months of 2022, up by 15% year-on-year from US$10.2bn in the corresponding period of 2021. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) declined by 26% to US$1.37bn from US$1.86bn.

SCG recorded nine-month costs growth of 15%, to US$3.29bn from US$2.85bn. The Bangkok Post newspaper has reported that the group says that its monthly energy costs have risen by 50% since the outbreak of the Russia-Ukraine war. As such, it is currently focusing its investments on three ‘key’ business areas with smaller energy consumptions than cement. These are smart living, renewable energy and logistics.

SCG renewables subsidiary SCG Cleanergy aims to more than double its renewable power generation capacity to 500MW before 2026 and further increase it to 5GW before 2028. This will consist of wind farms and roof-mounted and floating solar power plants. Meanwhile, SCG Logistics Management secured approval to merge with JWD InfoLogistics on 26 October 2022.

Greece: Titan Group has set new CO₂ reduction targets by adding Scope 3 emissions. Titan Group had previously committed to a 21% Scope 1 emissions reduction and a 42% Scope 2 emissions reduction per tonne of cementitious material between 2020 and 2030. Titan Group reduced its total CO₂ emissions by 20% between 1990 and 2021, and by 5.5% year-on-year in the third quarter of 2022. Its latest targets are currently under review by the Science-Based Targets Initiative (SBTi).

Titan Group chair Marcel Cobuz said “The initiatives in our decarbonisation roadmap offer significant business growth opportunities. Our technology and sales teams across all our markets are focused on decarbonising our operations more quickly and offering our customers more and more sustainable and circular solutions.”

India: Ambuja Cements sold 6.7Mt of cement during the second quarter of its 2023 financial year, up by 12% year-on-year. Its standalone revenues were US$443m, up by 13% from second-quarter 2022 financial year levels. Cost growth outstripped sales at 32% year-on-year, resulting in earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$36.7m, down by 57% year-on-year.

CEO Ajay Kapur said "The cement industry has been facing significant margin pressure resulting from a steep rise in global energy prices. However, recent cooling off in energy prices and post-monsoon demand pickup appears to present a silver lining for the coming quarters."

Kapur said that Ambuja Cement's focus is currently on future capacity expansions, with the aim of becoming India's market leader.

India: Adani Group and Jaiprakash Associates are reportedly in 'advanced talks' over the latter becoming Adani Group's latest cement sector acquisition at a price of US$606m. Reuters News has reported that Jaiprakash Associates' board of directors approved the sale of the company on 10 October 2022. Adani Group plans to buy the business via one of its newly acquired cement subsidiaries.

Adani Group is also planning a US$7.9bn investment package in a Rajasthan cement plant expansion, solar power plant project and airport upgrade. The solar power plant has a planned capacity of 10GW. Adani Group owns the 1.8Mt/yr Rabriyawas cement plant and the 5Mt/yr Lakheri cement plant in Rajasthan. The group plans to raise US$10bn to fund its growth plans. Potential investors in 'early talks' with the group include Singaporean sovereign wealth fund Temasek Holdings.

Adani Group completed its acquisition of ACC and Ambuja Cements for US$10.5bn in September 2022.

Peru: Grupo Gloria subsidiary Yura says that it is contemplating a cement production capacity expansion. The producer says that process optimisation across its Arequipa and Southern Peruvian cement footprint might go some way towards achieving the envisioned growth. It added that any such projects would go hand in hand with a reform of its customer service practices. Yura is also evaluating possible new limestone mining projects at Pampas del Pongo and Zafranal, and an expansion of its lime production.

DF Sud News has reported that Yura expects to increase its Peruvian cement deliveries by 8 – 10% year-on-year in 2022. Its cement, concrete and lime director for Peru, Chile and Bolivia, Julio Cáceres, forecasts that Peru’s construction demand will continue to grow at twice the rate of gross domestic product. He acknowledged that the company’s 2023 results will likely reflect the country’s expected muted growth compared to 2022. Cáceres said that US$700m-worth of private investment across 30 residential projects in Arequipa is currently suspended, pending the publication of the city’s revised metropolitan development plan.

India: Adani Group plans to invest US$100bn in capital expenditure across all of its operations between 2022 and 2032. Mint News has reported that the conglomerate will establish 45GW-worth of new hybrid renewable power plants under the plans. It will also build three new green hydrogen plants, with a combined capacity of 3Mt/yr. It plans to support the latter move with an investment of US$70bn in the establishment of an integrated hydrogen-based value chain.

India: Ramco Cements plans to inaugurate its upcoming Nandyal cement plant in Kalvatala, Andhra Pradesh, on 28 September 2022. The Sakshi Post newspaper has reported that the plant will have a cement capacity of 2Mt/yr. Ramco Cements’ planned total capital expenditure (CAPEX) investments during the 2023 and 2024 financial years (1 April 2022 – 31 March 2024) are expected to reach US$154 – 167m.

Two West Bengali welders fell to their deaths at the site of the upcoming Nandyal cement plant on 25 September. The welders had been working on a conveyor system when it snapped. The Times of India newspaper has reported that both workers died immediately. Police have informed their relatives and are conducting post-mortems.

UK: Clean Energy Ministerial CCUS (CEM CCUS) and the Global Cement and Concrete Association (GCCA) have announced a new partnership aimed at scaling up the deployment of carbon capture technologies in global cement and concrete production over the 10-year period up to 2033. The partners will explore incentives, policy frameworks and finance solutions that can best facilitate industrial-scale CCUS projects. Additionally, they will seek to ensure the long-term development of CCUS via technological developments.

CEM CCUS Norway initiative co-lead Henriette Nesheim said “This is a great opportunity to work together with a vitally important industry. In Norway we are already building our first cement CCS project in Brevik, and we look forward to sharing the experience with others.”

Belgium: Holcim has completed its acquisition of façade and external insulation systems producer Cantillana. Holcim said that the deal expands its position in building renovation and energy efficiency solutions, aligning with its Strategy 2025 – Accelerating Green Growth plan.

Europe: The European Commission has approved the IPCEI Hy2Use plan for the construction of an international hydrogen electrolysis, transport and storage network. IPCEI Hy2Use consists of multiple projects planned for completion by 2026, with the commissioning of all infrastructure scheduled for 2036. 13 EU member states and Norway will contribute Euro5.2bn in funding, with a view to attracting private investments worth Euro7bn.