Displaying items by tag: Votorantim Cimentos

Brazil: Cement producers including CSN Cimentos, Cimentos Mizu, Cimento Apodi, InterCement and Votorantim have all bid for Holcim’s assets in Brazil. A consortium of CSN Cimentos, Cimentos Mizu and Cimento Apodi is reportedly intending to buy up to 10 production plants, according to sources quoted by Reuters. InterCement and Votorantim have also made offers but are bidding for smaller parts of the business due to competition law restrictions.

Votorantim has bid for plants in the north-eastern of the country and InterCement for those in the south-eastern states of Rio de Janeiro, Espirito Santo and Minas Gerais. Any eventual proposed acquisition will be subject to scrutiny by the Administrative Council for Economic Defence (CADE). Holcim expects to generate US$1 – 1.5bn from the eventual sale.

Brazil: Votorantim Cimentos has started operation of a new production line at its Pecém grinding plant in Ceará. The US$38m upgrade brings the production capacity of the site to 1Mt/yr from 0.2Mt/yr previously. The project was suspended temporarily in 2020 due to the coronavirus pandemic. The producer also operates the integrated 2.2Mt/yr Sobral plant in Ceará and a terminal in Fortaleza. The production sites the company runs in the state are connected by railway and a further line has been extended to connect the terminal.

Brazil: Votorantim Cimentos is preparing to bid for some of LafargeHolcim’s assets in Brazil. However, the company is limited by local competition rules so it is unable to try and buy all of LafargeHolcim’s assets, according the Valor Economico newspaper. In a statement to Reuters, Votorantim said that it had not made a bid yet but that it was always open to new opportunities. LafargeHolcim was reported by local press in April 2021 as wanting to sell its assets in the country.

Spain: Votorantim Cimentos has agreed to buy Cementos Balboa from US-based investment company KKR for an undisclosed sum. The producer operates a 1.6Mt/yr integrated plant at Alconera in Badajoz, Extremadura that started production in 2005. The purchase is subject to regulatory approval in Spain.

“This transaction exemplifies our strategy for growth and positioning in Spain and reinforces our presence in the country,” says Marcelo Castelli, global chief executive officer of Votorantim Cimentos. The Brazilian-based company has been present in Spain since 2012 and currently operates four integrated cement plants, two grinding plants, a mortar plant and several concrete and aggregates plants, operating in the regions of Andalusia, the Canary Islands, Castile and León, Extremadura and Galicia .

Brazil: Votorantim Cimentos has begun distributing its products from its new Rio de Janeiro distribution centre. The producer says that the facility has a capacity of 1000t/day of products, up by 52% from 658t/day at its previous Rio de Janeiro distribution centre. It will serve Grande Rio and Serrana, optimising the company’s logistics in the Southeast region.

Southeast regional logistics manager Luis Dovichi Mendes said, "With the heating up of civil construction and the residential renovation market, we invested in this new distribution centre to improve the urban distribution service in the state of Rio de Janeiro, offering a better logistics and service structure for our customers in the region.”

Brazil/Turkey: Brazil-based Votorantim Cimentos has implemented artificial intelligence techniques for cement strength testing across 27 of its laboratories in Brazil and Turkey. The producer says that the technology gives precise cement strength readings after just three days, compared to 28 days without the technology. It also uses a new metric, technical efficiency, to measure cement’s performance in concrete from the customer’s point of view. The implementation has increased available test results by 200% and eliminated 119 hours of testing time in Brazil alone for the company. It says that this has increased its agility in dealing with quality control and customer satisfaction.

The company said, “We at Votorantim Cimentos want to pave the way for the future of civil construction in a simple, agile and sustainable way, strengthening our role at the construction site, working to be the first choice of retailers and consolidating ourselves as a reference in sustainability in the value chain. Therefore, we look at our research and development projects as short, medium and long-term initiatives to leverage innovations in the sector. Many initiatives are aimed at optimising internal processes that impact the performance of our products, such as those involving the use of artificial intelligence to develop applications and predictive models. In addition, based on models for predicting the properties of cements, we have already created others for use in our mortars and concretes."

Canada/US: Brazil-based Votorantim Cimentos and Caisse de dépôt et placement du Québec (CDPQ) have completed the transaction to merge their cement operations in North America. After having obtained regulatory approval from authorities in Brazil, Canada and the US, St Marys Cement (Canada), a wholly owned subsidiary of Votorantim Cimentos can now commence with the integration process with McInnis Cement. As part of the transaction, the parties will combine their North American assets in a jointly-held entity. Votorantim Cimentos International, the international investments platform and wholly owned subsidiary of Votorantim Cimentos, will hold 83% and CDPQ will indirectly hold 17% of the shares.

The combined entity will comprise operations in Bowmanville and St Marys, in Ontario, Canada and in Detroit and Charlevoix in Michigan, Dixon in Illinois and Badger in Wisconsin in the US, along with a distribution network concentrated in the Great Lakes region - plus the Port-Daniel–Gascons plant and its distribution operations, including terminals located in Quebec, Ontario, New Brunswick, Nova Scotia and the Northeastern region of the US.

Turkey: The Turkish competition authority Rekabat Kurumu has launched a probe into alleged collusion by nine cement producers. The authority said that it is investigating AS Çimento, Bastas Baskent Çimento, Çimsa, Golas Goller Bolgesi Çimento, Konya Çimento, Kupeliler Endustri, Limak Çimento, Oyak Çimento and Brazil-based Votorantim Cimentos.

Spain: Cementos Cosmos and the Cooperativa Apícola del Bierzo have installed 25 bee hives at the Corullón quarry, which supports the integrated Toral de los Vados plant in Leon. The collaboration agreement aims to promote the production of honey, propolis and pollen. The hives will be cared for by the Bierzo Beekeeping Cooperative and the adaptation and maintenance of the land where they will be located will be carried out by Cementos Cosmos. The cement company will also become the preferred customer for the production of the beehives located in the quarry. Following the signing of the agreement plant director Jaime Santoalla said, "we are convinced of the coexistence and synergies between our industry and other sectors of Bierzo, such as the agricultural-food sector.”

Brazil: Votorantim Cimentos’ consolidated net sales were US$6.41bn in 2020, up by 19% year-on-year from US$5.41bn in 2019. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) also rose, by 35% to US$1.21bn from US$899m. The group attributed the growth to increased cement volumes sold in Brazil, Canada and the US. Total global cement sales increased by 8% to 32.4Mt. Net revenue grew in all regions, but the sharpest growth was reported in North America at 43% to US$945m.

Chief financial officer Osvaldo Ayres Filho said, “The past year has been extremely challenging due to the pandemic and its impacts across the planet. We have implemented a contingency plan to protect people's lives and preserve operations. This allowed us to respond with agility both in Brazil and in the other markets in which we have operations, ending the year with increased sales, cash generation growth and the lowest leverage in the past ten years.”

During the year, the group unified its joint-venture in Uruguay, with Cementos Molins, at a single site and merged its Canadian and US businesses under a new 83% owned subsidiary. It suspended its Pecém grinding plant expansion in Brazil due to the coronavirus pandemic and resumed it in September 2020. Completion of the project is scheduled for the first half of 2021. The producer also released its Sustainability Commitments for 2030 in November 2020.