Displaying items by tag: supply chain

Comoros: Cimentos Comores is considering finding temporary sources of bagged cement after its regular bulk deliveries via the Port of Moroni, Grand Comore, became disrupted. Al-Watwan News has reported that a malfunctioning landing buoy has prevented cargo ships from landing at the port.

Cimentos Comores said “In the absence of a technical solution, we will be forced to cancel the operations.”

UK: Tarmac will utilise River Logic's Digital Planning Twin™ for enhanced supply chain capabilities in its cement division.

Jim Dutton, cement supply chain planning manager at Tarmac, said "We're pleased to have commissioned River Logic as a partner to work with our cement business in the UK. Working with River Logic means we have further support to simplify, connect, and optimise our supply chain efforts. With this third-generation system, we can look at CO₂ emissions data in addition to supply and demand information which supports our planning."

India: Sanghi Industries has received shareholder approval to supply its cement and clinker to ACC and Ambuja Cements. Additionally, Sanghi Industries will begin to purchase of coal from fellow Adani Group subsidiary Adani Enterprises, according to the Economic Times newspaper. Under the new arrangements, ACC and Ambuja Cements will sell Sanghi Industries’ cement and clinker under their own brands, at a price 10% above production cost. This is reportedly below industry pricing standards for comparable deals of 25 - 30% higher pricing over costs.

Adani Group subsidiary Ambuja Cements acquired a 57% stake in Sanghi Industries on 5 December 2023.

Germany: Heidelberg Materials will stop producing clinker at its 700,000t/yr Hanover cement plant in Lower Saxony later in 2024, and transition the plant to grinding-only. The producer took the decision following a ‘significant drop’ in its cement sales, amid local low construction activity and a market shift towards lower-cement materials. Nonetheless, it intend to raise its capacity utilisation at its 1Mt/yr Ennigerloh, 900,000t/yr Geseke and 400,000t/yr Paderborn cement plants in neighbouring North Rhine-Westphalia. These will supply clinker to the Hanover grinding plant in future. Heidelberg Materials says that the plant's strategic location will ensure its continued importance in regional cement supply. Part of the 120-strong workforce at the Hanover plant will remain at the new grinding plant. The company will collaborate with the works council to find ‘acceptable solutions’ for the remainder of the team, possibly including intra-group transfers to other divisions and locations.

The Calix consortium’s on-going LEILAC 2 carbon capture project will now move from the Hanover plant to another Heidelberg Materials plant. Australia-based Calix is collaborating with Heidelberg Materials to identify a suitable new site as quickly as possible.

UK: Heidelberg Materials UK has received certification to the revised BES 6001 standard across its entire business. The Framework Standard for Responsible Sourcing of Construction Products, version 4.0:2023, emphasises sustainable procurement and supply chain engagement, alongside environmental aspects such as biodiversity. It covers products including cement, ground granulated blast furnace slag (GGBFS) and concrete. The producer says that this will help it to secure additional green building certification schemes credits.

Sustainability director Marian Garfield said "We are delighted to have been awarded the 'excellent' level of certification by the Building Research Establishment (BRE), which demonstrates our commitment to sustainability and supporting our customers in our shared net zero ambitions."

US: Ireland-based CRH has concluded a deal for the acquisition of Martin Marietta Materials’ South Texas business. This includes the 2.1Mt/yr Hunter cement plant, a network of cement terminals on the Gulf of Mexico and 20 ready-mix concrete batching plants. The value of the transaction is US$2.1bn.

CRH chief executive officer Albert Manifold said “The acquisition of these high-quality assets further strengthens our market leading position in Texas and increases our exposure to attractive, high-growth markets. Our ability to leverage our cement expertise and technical capabilities will enable us to enhance and optimise our existing footprint in Texas, resulting in significant synergies and self-supply opportunities. This transaction reflects our disciplined approach to capital allocation as well as our commitment to deliver further growth and value creation for our shareholders. We also believe there is significant potential to unlock additional growth opportunities across an expanded footprint in this attractive growth market.”

Norway: The Ministry of Petroleum and Energy has signed a new agreement with Heidelberg Materials Sement Norge, confirming funding of up to US$14.1m for the producer’s construction of a full-scale carbon capture system at its Brevik cement plant. Under the agreement, Heidelberg Materials Sement Norge will absorb extra costs that have arisen, and retain a larger share of any return on the project. Costs rose due to the Covid-19 pandemic, the Russian invasion of Ukraine and international supply chain pressures.

Nordic Daily News has reported that Heidelberg Materials Northern Europe director Giv Brantenberg said "We are in the process of completing the world's first full-scale plant for carbon capture in the cement industry, and have had great support from the Norwegian authorities throughout the project's many phases. Today's agreement reflects the good cooperation with the Norwegian government, and we look forward to completing this unique facility.”

India: Ambuja Cements and its subsidiary ACC have transitioned to reporting their results in line with the (April - March) Indian financial year. As such, they have published 15-month results for 2022 and the first quarter of 2023. During the period, Ambuja Cements reported sales of US$4.75bn, up by 34% year-on-year from US$3.53bn. Its cement volumes rose by 28% to 68Mt, while its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 11% to US$714m. Meanwhile, ACC recorded sales of US$2.71bn, up by 38% from US$1.97bn in 2021. Its cement volumes rose by 31% to 37.9Mt, while its EBITDA fell by 30% to US$275m.

ACC announced its goal to become India's 'most profitable cement company.' To realise this, the company will implement a three-pronged strategy of capacity expansion, efficiency improvements and development of its distributor and dealer network. Under the capacity expansion heading, the producer will double its production capacity through the construction of new cement plants and the expansion of existing ones. In this, it will lay special emphasis on securing supplies of renewable energy and supplementary cementitious materials, including fly ash from its own power plant segment. The company noted that it recently secured access to 1Bnt-worth of new limestone reserves in Maharashtra, Odisha, Karnataka and Rajasthan. It will also seek to increase its coal production to avoid the rising cost of imports.

In the 2024 financial year, the government of India plans to invest US$11.4bn in the construction of new housing, roads and sanitation infrastructure nationally. Ambuja Cements has forecast an increase in domestic cement consumption of 6 - 8% to over 390Mt/yr. It expects Indian cement production to rise by 8 - 10% year-on-year to 390Mt in the 2024 financial year.

US: Heidelberg Materials North America inaugurated its 2.4Mt/yr Mitchell cement plant in Indiana on 14 July 2023. The plant is equipped with a 3600 bag/hr rotary packer, and also boasts a 154,000t-capacity clinker storage dome. It will produce Heidelberg Materials North America's EcoCem Portland limestone cement (PLC), alongside other products. The producer said that the new plant will help to address US cement supply chain constraints amid a planned US$110bn infrastructure overhaul.

Heidelberg Materials North America president and chief executive officer Chris Ward said "The plant will reduce CO₂ emissions per tonne of clinker by almost 30%, mainly through operating on natural gas. Our investment in the Mitchell facility helps us lower our carbon footprint, while serving the growing demand for more sustainable products in this key market.”

Bangladesh: The Bangladesh Cement Manufacturers Association (BCMA) has called for a 60% cut to duties on clinker imports, to US$1.84/t from US$4.61/t. The Financial Express newspaper has reported that BCMA members are struggling with high shipping costs and supply issues due to Russia’s war in Ukraine.

The Bangladesh government published plans to raise the duty on imports of clinker by 40% to US$6.46/t in its 2023 budget on 13 June 2023.