Displaying items by tag: construction

Nigeria: Dangote Cement recorded sales of US$609m during the first quarter of 2023, down by 13% year-on-year from US$699m during the first quarter of 2022. The producer reported a 25% decline in its cement sales volumes to 3.6Mt from 4.8Mt. Operating costs rose by 6% to US$355m from US$335m. Dangote Cement said that its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 14% to US$458m from US$403m.

Dangote Cement chief executive officer Arvind Pathak said “The cash crunch coupled with the uncertainty around the general elections led to a slowdown in key private and public infrastructure investments in Nigeria. Consequently, our domestic operations recorded a drop in volume." Pathak continued “In fulfilling our commitment to creating additional value for our shareholders, we have received regulatory approval for our second buyback programme. We will continue to monitor the evolving business environment and market conditions in making decisions on tranches."

New Zealand: Cement producer and construction firm Fletcher Building has reported a 20% year-on-year drop in domestic housing demand during the first quarter of 2023. The Australian newspaper has reported that the company attributed the decline to ‘soaring’ interest rates in the country. It now expects to sell 800 residential units in 2023, 20% below its previous expectation of 1000 units. Fletcher Building said that building materials costs rose by 5 – 10% between 2020 and 2022, due to ‘higher input and commodity costs’ in production.

CEO Ross Taylor said that Fletcher Building faces labour shortages in its civil construction business, but maintained a strong order pipeline. Taylor said “It won’t drive an uptick in volumes but it will underpin the volumes in the next three to four years.”

UK: Hanson UK says that its planned installation of a carbon capture system at its Padeswood cement plant in Flintshire has proceeded to the due diligence and negotiations stage. The project aims to achieve net zero CO₂ cement production by capturing 800,000t/yr of CO₂. It is part of the HyNet North West array of projects, which combines green hydrogen and carbon capture to build a first-of-its-kind industrial decarbonisation cluster.

Hanson UK CEO Simon Willis said “I would like to thank the government and all of those that supported us in our bid to receive funding which will enable us to help decarbonise the construction industry and meet our overall ambition to become a net zero business. This global exemplar project will provide net zero construction materials for major projects across the country, from new offshore wind farms and nuclear power stations to clean transport infrastructure.”

Mexico: President Andrés Manuel López Obrador has accused the US government of funding environmentalists' challenges to the government's planned Tren Maya tourist railway project. AP News has reported that López Obrador has declared the project a matter of national security.

Cemex is currently embroiled in a dispute with Vulcan Materials subsidiary Sac-Tun over use of the latter's Punta Venado terminal in Quintana Roo. The terminal sits along the planned route of the Tren Maya line. The Mexican State Prosecutor's Office supported Cemex's re-entry into the terminal on 14 March 2023. The government previously rejected Sac-Tun's application to renew its quarrying licence for its quarry at the site of the terminal.

For more on this story, read our Global Cement Weekly analysis.

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."

Canada: The city administration of Langford in British Columbia plans to enact regulations requiring all public and private projects to use reduced-CO₂ concrete. It plans to support the rules with parallel measures affecting the design of buildings.

Victoria News has reported that the city authorities previously mandated reduced-CO₂ cement for all projects in June 2022, but subsequently relaxed the regulations after only one company – Butler Concrete and Aggregates – completed the transition. Butler Concrete and Aggregates produces its reduced-CO₂ concrete using slag cement supplied by Lafarge Canada.

UK: Breedon Group's sales were Euro1.57bn in 2022, up by 13% year-on-year from Euro1.39bn in 2021. Its earnings before interest and taxation (EBIT) rose by 16% to Euro166m from Euro143m. The group increased its cement volumes by 9.1% during the year, to 2.4Mt from 2.2Mt.

Breedon Group said "The outlook for the cement market is positive, underpinned by large ongoing infrastructure projects in the UK. In Ireland, housing and infrastructure are supported by the government’s development plans to accommodate a rapidly growing population."

Pakistan: Dandot Cement recorded a net loss after taxation of US$463,000 during the first six months of the 2023 financial year. This corresponds to a year-on-year rise of 8% from US$429,000 in the first half of the 2022 financial year. Its finance costs rose by 10% to US$437,000, while its administrative expenses fell by 18% to US$71,400.

The producer's 0.5Mt/yr Lahore cement plant closed in 2019 for a 'balancing, modernisation and replacement' upgrade. Dandot Cement says that the on-going project is on schedule for completion before the end of the current Pakistani financial year on 30 June 2023. The company anticipates a rise in domestic cement demand due to new infrastructure projects and the renovation of existing infrastructure. However, it noted several principal risks and uncertainties, namely rising coal, diesel and electricity prices, rising interest rates, currency devaluation and current overcapacity in the Pakistani cement industry.

Germany: Heidelberg Materials' sales increased by 13% year-on-year to Euro21.1bn in 2022 from Euro18.7bn in 2021. This was despite a 6.1% drop in cement and clinker volumes, to 119Mt from 127Mt. Heidelberg Materials' cement and clinker volumes fell by 10% in Western and Southern Europe, by 7.8% in Northern and Eastern Europe-Central Asia, by 14% in North America, by 1.3% in Africa-Eastern Mediterranean Basin and by under 1% in Asia-Pacific. The group's materials costs rose by 23% to Euro21.4bn from Euro18.8bn. Meanwhile, its profit dropped by 9.4% to Euro1.72bn from Euro1.9bn.

Chief executive officer Dominik von Achten said "It’s evident that we can only be profitable in the long term by shaping our future as a company in a climate-compatible way, further reducing the footprint of our products and closing material loops. We are making good strides in all areas. Compared with the previous year, we were able to reduce our specific net CO₂ emissions by another 2% in 2022. Our carbon capture, utilisation and storage projects launched worldwide are progressing favourably. At our CCS project in Brevik, Norway, we are well on track with the construction of the world's first CO₂ capture plant in our industry, and we look forward to commissioning in 2024." Von Achten continued "We have made a good start to 2023. The fourth quarter showed that we have laid a good foundation for the development in this year. Volatility on energy and raw material markets remains high, but the current easing in energy prices is giving us some breathing room. On the demand side, government infrastructure plans should compensate for the decline in private housing construction. We are optimistic about the further course of the year.”

Australia: Hallett Group said that a 42m-high storage dome at its upcoming Port Adelaide cement terminal deflated amid on-going construction work at the site on 2 February 2023. ABC News has reported that Hallett Group plans to rebuild the structure at the facility in South Australia. It said that the supplier of the dome's outer skin has sent representatives from Canada to supervise in the reconstruction.

When commissioned, the Port Adelaide cement terminal will distribute cement from Hallett Group's Port Augusta slag cement grinding plant in the north of the state.