Displaying items by tag: market
Votorantim Cimentos records growth in sales in third quarter of 2023
14 November 2023Brazil: Votorantim Cimentos reported US$1.51bn in sales during the third quarter of 2023. This represents a decline of 3% year-on-year. It raised its total volume of cement sales by 1% year-on-year to 10.3Mt. Meanwhile, the group’s adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 9% to US$1.9bn.
CEO Osvaldo Ayres said “The positive results in both the third quarter and the first nine months of 2023 reinforce our operational leverage and our performance within our strategic mandate, with discipline and resilience. Despite the uncertain global macroeconomic scenario and market challenges, our geographic and product diversification improves the company, to face challenges and be ready to capture good opportunities.”
India: The Competition Commission of India (CCI) will carry out a pan-India market study into the cement industry. The Hitavada newspaper has reported that the study will cover supply structure, pricing dynamics and other aspects of the market. The CCI says that it is conducting the study in order to investigate potential collusion, ensure fair competition and protect consumers’ rights, as well as to obtain insights into the state of the cement market across different regions of India.
The CCI said “Cement is a critical input in crucial sectors of the economy, such as housing and infrastructure. These sectors have well-known forward and backward linkages with a range of other industries, thereby having the potential to influence the overall growth trajectory of the economy.”
ClimeCo celebrates launch of US Low-Carbon Cement Protocol
03 November 2023US: Sustainable technology developer ClimeCo has welcomed the Climate Action Reserve (CAR)’s launch of the US Low-Carbon Cement Protocol. The protocol will provide guidance on quantifying, monitoring, reporting and verifying emissions reductions associated with the use of supplementary cementitious materials (SCMs) in alternative cement production. ClimeCo says that this will help to establish the eligibility of various waste streams and naturally occurring materials for use in cement.
ClimeCo president and CEO Bill Flederbach said "While demand for cement has never been higher, it remains an exceptionally difficult-to-abate industry. This new protocol demonstrates the power of credible, validated and science-based voluntary carbon credits in accelerating the pace and adoption of environmental reforms. It also confirms ClimeCo's belief that, by engaging the right partners and taking a holistic approach, every industry and every company, even those facing the biggest challenges, can make a huge difference. Time is of the essence, and ClimeCo is proud to lead the way toward a brighter future."
Germany: Heidelberg Materials raised its sales by 1.8% year-on-year to Euro16.1bn in the first nine months of 2023. Regionally, sales rose by 7.5% to Euro3.69bn in North America, by 2.6% to Euro2.76bn in Asia-Pacific by 3.5% to Euro4.94bn in Western and Southern Europe, by 2.5% to Euro2.74bn in Northern and Eastern Europe and Central Asia, but fell by 10% in Africa-Eastern Mediterranean Basin to Euro1.41bn. Cement volumes fell across all of the group’s business lines, as ‘solid developments’ in infrastructure and industrial commercial construction failed to offset locally ‘massive’ declines in residential construction. Heidelberg Materials raised its 2023 outlook based on anticipated continued moderate revenues growth to a full-year result of Euro2.85 – 3bn, from Euro2.7 – 2.9bn previously.
Chair Dominik von Achten said “We have closed the first three quarters of 2023 with a strong result, despite declining demand for our building materials. On a like-for-like basis, all group areas have contributed to this result. I would like to thank the entire Heidelberg Materials team for their outstanding performance in what continues to be a very challenging business environment.” Von Achten continued “In the third quarter, we were able to further strengthen our pioneering role in the decarbonisation of the building materials sector. Our activities have gained further momentum with the installation of the core equipment of the carbon capture, utilisation and storage (CCUS) plant in Brevik, Norway, and the start of construction of a CCUS pilot plant in Bulgaria. This brings us much closer to our goal of offering our customers climate-friendly products on a large scale.”
The India Cements records earnings of US$1.68bn in second quarter of 2024 financial year
02 November 2023India: The India Cements’ earnings before interest, taxation, depreciation and amortisation (EBITDA) reached US$1.68m during the second quarter of the 2024 financial year. The producer recorded a negative EBITDA of US$10.5m during the second quarter of the previous financial year. It succeeded in reducing its net loss by 41% to US$9.73m from US$16.6m. The India Cements said that oversupply and competition placed its cement prices under pressure.
SRMPR Cements launches Portland pozzolana cement
02 November 2023India: SRMPR Cements has launched its Portland pozzolana cement (PPC) for the first time, in Tamil Nadu. The Hindu BusinessLine newspaper has reported that the company controls 420,000t/yr of cement production capacity across three facilities in Tamil Nadu and neighbouring Andhra Pradesh. It invested a total US$27m in its production facilities and warehouses. SRMPR Cements will sell its PPC in 50kg bags. It also plans to launch ordinary Portland cement (OPC) in the future. It said that its products will help to meet ‘massive’ demand from public construction projects.
CEO Ohm Prakash said that the producer has already concluded deals with 100 different regional retailers of cement.
India: UltraTech Cement announced planned new capital expenditure (CAPEX) investments worth US$1.56bn to grow its production capacity, beginning in the 2026 financial year (1 April 2025 – 31 March 2026). The Telegraph newspaper has reported that the growth will expand UltraTech Cement’s capacity by 13% to 187Mt. 33.8Mt-worth of this (18%) will be in its native West India, 40.4Mt-worth (22%) in East India, 36.2Mt-worth (19%) in North India, 35.7Mt-worth (19%) in Central India and 35.5Mt-worth (19%) in Central India, with the remainder situated overseas. The new capacity consists of four new production facilities and four upgrades to existing facilities, supported by four new cement terminals. The producer says that it will come online in a phased manner, up to an unspecified end date.
Kumar Mangalam Birla, chair of parent company Aditya Birla, said "Over the past seven years, UltraTech has strategically invested over US$6bn to support India's rapidly changing infrastructure landscape. Our fresh commitment of US$1.56bn underscores our deep-rooted belief in India's economic potential. With each investment, we have not only expanded our footprint, but also empowered India in meeting its need for housing, roads and other vital infrastructure."
US: Eagle Materials sold 4.14Mt of cement during the first half of its 2024 financial year, from 1 April 2023, a slight increase from the volume sold in the same period in its 2023 financial year. It reported sales revenue from its wholly owned cement business of US$614m, up by 15% year-on-year and corresponding to 50% of total group sales. Overall, group revenue rose by 4.9% to US$1.22bn.
President and chief executive officer Michael Haack said "Market conditions for our construction materials remained resilient during the quarter, even as the Federal Reserve continued to raise interest rates and tighten money supply to contain inflation. Several factors helped offset the higher rates and supported demand for cement, including limited housing supply, strong homebuyer demand, increasing infrastructure awards and significant investment in domestic manufacturing facilities. As demand remained strong and our operations remained nearly sold-out, we implemented a second round of cement price increases in early July across half our markets, and announced the next round of price increases for early January 2024.” Haack added “We expect that our portfolio of businesses will remain well-positioned for the second half of fiscal 2024."
Holcim to acquire Élite Cementos
26 October 2023Spain: Switzerland-based Holcim has concluded a deal to acquire Élite Cementos from Grupo Simetría and other shareholders. Élite Cementos operates a grinding plant at the Port of Castellón in Castellón de la Plana, Valencia. Holcim said that its acquisition of the business will unite the latter’s local brand recognition with its own experience and vision of sustainable growth.
The group said “With this agreement, Holcim expands its geographical presence, responding to the increasingly demanding and specialised needs of the sector. The Élite Cementos team joins the Holcim family to continue together an era of growth and transformation of the construction sector.”
US: Heidelberg Materials is rumoured to have hired advisors for a possible attempt to acquire Summit Materials. Bloomberg has reported that the company made two approaches to Summit Materials ‘in recent weeks.’ Meanwhile, the Colorado-based producer revealed in a statement that it has rejected two takeover bids from an unnamed party, the more recent on 18 October 2023.
Summit Materials previously agreed to merge with Cementos Argos subsidiary Argos USA in early September 2023.