Displaying items by tag: US

US: Kevin R Peterson is to retire from Vortex Global in late January 2021. During his 25 years with Vortex, he has held many key positions including Director of Marketing, Special Projects Director, Regional Sales Manager and Director of Business Development.

Peterson’s involvement in the dry bulk industry includes membership in the International Association of Operative Millers, International Milling Education Foundation, the Society for Mining, Metallurgy & Exploration, and the Industrial Minerals Association of North America. He was elected an Emeritus Member of the International Association of Operative Millers, was a past Advisory Board Member of the Powder & Bulk Solids Expo, and served on the board of directors of the Industrial Minerals Association of North America. Peterson received the Outstanding Service Award from Kansas State University’s Department of Grain Science and Industry. He was also a contributor to the Dust Control Handbook for Industrial Minerals Mining and Processing published by the National Institute for Occupational Safety and Health (NIOSH).

US: LafargeHolcim has signed an agreement to buy Firestone Building Products from Bridgestone Americas for US$3.4bn. The company said that the new subsidiary recorded estimated net sales of US$1.8bn and earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$270m. The group will finance the deal through cash and debt. It said that the acquisition is a milestone in its transformation to become the ‘global leader in innovative and sustainable building solutions.’

Chief Executive Officer Jan Jenisch said, “I am excited to be entering the highly attractive roofing business. With Firestone Building Products we are strengthening our biggest market, the US, while also building a global growth and innovation platform for the company. Today’s milestone is a strategic leap on our journey to become the global leader in innovative and sustainable building solutions to build a world that works for people and the planet. I have great respect for the high-calibre leadership and expertise of the Firestone Building Products’ team and look forward to welcoming them into the LafargeHolcim family.”

US: A US court has fined Argos USA US$20m for violations of antitrust rules between 2011 and 2016 with regards to the ready-mixed concrete market. The subsidiary of Columbia-based Cementos Argos subsidiary has admitted to collusion with another ready-mix producer. The US Department of Justice says that the companies coordinated price rises, submitted collusive non-competitive bids to customers, allocated markets in Southern Georgia and elsewhere and charged fuel surcharges and environmental fees.

Argos says the conspiracy was committed by, “a small number of former employees of a small, local sales office” that joined Argos when it acquired another company, according to Reuters. It added that its management “did not participate in or condone the conduct, which was undertaken in contravention of company compliance policies.”

US: Cemex USA has delivered grants via the Cemex Foundation to over 80 non-profit organisations so far in 2020 as part of its coronavirus relief efforts. The funds donated by Cemex USA employees have provided more than a quarter million meals to those facing food insecurity and overall have positively impacted more than 200,000 people in California, Nevada, Arizona, Colorado, Texas, Alabama, Tennessee, Pennsylvania, Georgia and Florida. The initiative also supplied more than 20,000 pieces of personal protective equipment (PPE) for medical staff and first responders.

“Covid-19 has created far-reaching impacts and unparalleled challenges, prompting thousands of families to request additional support for food and shelter while they continuously worry about the health and safety of themselves and their loved ones. At Cemex USA, we wanted to help our neighbours and communities during this unprecedented time,” said Cemex USA president Jaime Muguiro. “The help provided by non-profits right now is critical, and we are proud to be able to deliver significant support for their initiatives that are making a difference in our communities.”

Organisations that have benefited from the grants include: United Way of Central Alabama (UWCA) in Birmingham, Alabama; Feeding South Florida in Florida; Feed the Frontline Houston in Houston, Texas; Lyons Emergency Assistance Fund (LEAF) in Lyons, Colorado; House of Refuge in South Mesa, Arizona; and Heart of Los Angeles Youth (HOLA) in Los Angeles, California.

US: HeidelbergCement is considering selling assets in California. Bloomberg News reports that it is working with Morgan Stanley on a potential divestment and it hopes to raise around US$1.5bn. It is reportedly approaching competitors including Martin Marietta Materials, Cemex, CRH, Summit Materials and LafargeHolcim, as well as companies in China and Latin America. The first bids are not expected until early 2021.

The Germany-based building materials company operates three integrated cement plants in California, as part of its Lehigh Hanson subsidiary, in addition to concrete and aggregates units. Divestment of these assets would focus the company instead on markets in the East Coast, Midwest and Canadian regions of North America.

In July 2020 HeidelbergCement announced that it had reduced its value of its assets by Euro3.4bn following a review. It blamed this on reduced demand for building materials due the coronavirus pandemic and the devaluation of its Hanson subsidiary in the UK, in part related to the UK’s exit from the European Union.

Turkey: Total cement exports raised nearly US$1bn in revenue in 2020. Tamer Saka, the chief executive officer (CEO) of Turk Cement, told the Anadolu Agency that the country exported 30Mt in 2020 making it the world’s second largest cement exporter. He added that the local sector has a production capacity of 100Mt/yr. "The sector has been selling cement to important big projects in the US and they prefer Turkey because of both price and quality,” said Saka.

US: CalPortland has launched a new fleet of 24 compressed natural gas (CNG)-fuelled bulk hauler trucks. The company has also commissioned a CNG fuelling hub at its Oro Grande cement plant in California. Ozinga Energy installed the hub, which uses biogenic Redeem methane from organic and agricultural waste at its fast-fill station and 24 slow-fill stations. The producer says that Redeem will reduce CO₂ emissions per tonne of fuel burned by at least 70%. It predicted a total greenhouse gas emissions reduction of 10,000t/yr.

President and chief executive officer (CEO) Allen Hamblen said, “By adding 24 cement bulk hauler trucks and a fuelling centre at our Oro Grande cement plant, CalPortland continues to demonstrate our on-going commitment to achieving zero emissions through environmental stewardship and lowering our carbon footprint within the communities where we operate.”

Could the fairy tale of McInnis Cement have ended any other way? The saga of the frequently frozen cement plant in Quebec collided with reality this week when it emerged that the pension fund Caisse de depot et placement du Québec (CDPQ) and the provincial government are poised to let it go. The new buyer, Votorantim Cimentos, plans to form a new 83%-owned subsidiary based in Toronto to combine the assets of McInnis Cement and St Marys Cement. The proposed change in management marks a transition to a large multinational building materials producer.

Normally, Global Cement Weekly would end on a summary for its last outing of the year but the government involvement in the McInnis Cement’s ownership has created a very public tale of hope and hubris. Attempting to build a brand new integrated cement plant in rural Quebec might not seem exciting but this story has it all, from corporate competition to sustainability issues to clinker export markets. Readers looking for a global recap of 2020 should refer to the December 2020 issue of Global Cement Magazine with news and cement producer round-ups.

The McInnis story began in early 2014 when the Quebec provincial government announced that it would invest US$350m in a new 2.2Mt/yr cement plant and port facility to be operated by McInnis Cement at Port-Daniel. The project was championed by the Beaudoin-Bombardier family, which was to foot the larger share of the US$1bn total bill. Local press compared the gambit of entering a new market with established players as being similar to Bombardier's approach to its C Series airliner that was eventually bought out by Airbus: risky but potentially lucrative.

As the plan developed, competitors in both Canada and the US took exception to an export-focused cement plant being propped up by government money, political parties got involved over how public money was being spent and environmentalists became upset. The concerns of the latter were partially bypassed in order to get the project started. Then, when the cost over-ran by US$350m, the provincial government said it wasn’t spending any more and the CDPQ took over. The plant was inaugurated in September 2017 and the CDPQ started looking for a buyer or new investors at the start of 2018. It rowed back from this position in early 2019 when its chief executive officer told local press that the pension and insurance fund was ‘convinced’ of the potential of McInnis Cement. Votorantim was publicly linked to the company in September 2020 and the agreement followed this week.

It’s unknown how much Votorantim has paid to buy control of McInnis Cement but its presence in the Great Lakes region and the east coast will be augmented by this deal. Following the acquisition it will control two integrated plants and two grinding plants in the Midwest US, two integrated plants in Ontario, and now the McInnis integrated plant in Quebec. The combined integrated production capacity will rise to around 7Mt/yr. Things are looking up for the company with the Brazilian market recovering despite coronavirus and the US market holding steady so far in 2020.

The drama of McInnis Cement highlights the perils of state investment in heavy industry and the pitfalls of making a risky entry into a saturated market. The bit the Votorantim press release neglected to mention was the loss that the provincial government of Quebec is expected to make on its involvement with the cement plant. Instead it was left to Economy Minister Pierre Fitzgibbon to admit to journalists that the province is prepared to lose up to US$370m on the affair if it can’t recoup its costs after other creditors take their slices over the next decade or so. One consolation that was reported in the local press was that jobs and facilities at the McInnis plant would be supported until at least 2029. The story of the cement plant at Port-Daniel continues for now but it’s likely to be far less public as private companies take it into the unknown.

Global Cement Weekly will return on 6 January 2020

US: Mexico-based Cemex has launched the Vertua range of low and net-zero CO₂ concrete products in the US following introductions in Mexico and Europe. The range consists of Vertua Classic, Vertua Plus and Vertua Ultra. The company has begun by selling Vertua Classic – which it says offers a 20–30% reduction in CO₂ emissions – in Bay Area, Central Valley, Los Angeles, Sacramento and San Diego, California. Vertua Plus and Vertua Ultra products will be introduced in 2021.

California regional president Francisco Rivera said, “Since many customers are motivated to reduce the carbon footprint of their projects, we are delighted to offer Vertua Classic, which is suitable for a wide range of commercial and residential applications. Our Vertua products are uniquely designed to balance limited carbon specifications with our customers’ needs for high-quality performance and resilience.”

Egypt: The US-based International Centre for Settlement of Investment Disputes (ICSID) has ruled in favour of the Egyptian government in a compensation case raised by Spain-based Cementos La Unión concerning its Arabian Cement Company (ACC) subsidiary. The El Economista newspaper has reported that the company sought US$286m in compensation, due to the Egyptian government’s decision to retroactively impose new activity and electricity licences shortly after ACC built a new integrated cement plant in Suez Governorate. Cementos La Unión argued that the additional licences breached a bilateral agreement between Spain and Egypt covering investments that were already in place.

The company said that it will continue to pursue its claim, which is also progressing in Egypt.