Tunisia: Carthage Cement has released its interim financial statements for the first half of 2024, revealing a net profit of US$11.7m, up by 48% from US$7.9m in the same period of 2023. The company's half-yearly revenues rose from US$70.8m in June 2023 to US$71.5m in June 2024. Operating profit grew by 17% to reach US$18.7m.

China’s Ministry of Ecology and Environment announced plans last week to add the cement sector to the country’s emissions trading scheme (ETS) by the end of 2024. The ministry has started the consultation process to also add steel and aluminium production to the system. 2024 will be used as a control year for the new industries entering the scheme, an implementation phase will run in 2025 and 2026 and then the quota allocated to companies will start to be reduced from 2027 onwards. Plants that emit 26,000t/yr of CO₂ or higher will be included in the ETS.

Clearly this is a big deal for the cement industry worldwide, as China produces around half of the world’s cement. As Ian Riley the CEO of the World Cement Association commented, "The inclusion of cement in the Chinese ETS is a critical and long-awaited step. As we have seen in Europe, a well-implemented carbon ETS can be beneficial by not only curbing emissions but also catalysing industry restructuring that favours the most efficient and lowest-emitting producers. This move signals China’s intent to prioritise sustainability in high-emission sectors…” In 2023, for example, China produced 2.02Bnt of cement compared to a global output of 4.10Bnt. This compares to the 176Mt of cement produced in the European Union (EU) in 2022. The EU, of course, is the home of the world’s second largest ETS.

China’s National ETS originally started in 2021 focusing on the power generation sector. It followed several pilot markets in eight regions, which continue to operate in parallel with the national system. At present the National ETS covers more than 2000 companies with emissions exceeding that 26,000t/yr of CO₂ figure mentioned above. These are mostly generation businesses, but it does also cover captive power plants. Overall, the scheme is estimated to cover around 5Bnt/yr of CO₂ and accounts for over 40% of the countryʼs CO₂ emissions. The current targets are an 18% reduction in carbon emissions per unit of GDP compared to 2020 levels by 2025, peak CO₂ emissions by 2030 and net zero emissions by 2060. Following the addition of the cement, steel and aluminium sectors, however, the ETS is estimated to grow to 8Bnt/yr of CO₂ and it should account for 60% of the country’s CO₂ output.

In April 2024 the average spot price of emissions traded on the Shanghai Environment and Energy Exchange reached €12.7/t of CO₂. This was a notable milestone because in the local currency it exceeded the ‘psychological’ 100 Chinese Yuan threshold. Meanwhile, the EU ETS CO₂ price started to increase in 2021 finally making it just past Euro100/t of CO₂ in early 2023. Since then, it has declined somewhat but remains at €50-75, well above the levels of the 2010s.

In practical terms the real significance of China’s National ETS for the cement sector should begin to be felt once the government starts to tighten up the allocated quotas from 2027 onwards. It is at this point that it will become apparent how the system is being used to drive the pace of decarbonisation. The other part of this to watch is if or when domestic talk turns to setting up a version of the EU’s Carbon Border Adjustment Mechanism (CBAM) to stop imports. It is at this point that one might be able to tell if the ETS has ‘bite.’

The government has not been shy in regulating industry and one of its starkest tools so far in tackling overcapacity has been mandating cement plants to simply stop production for some months of the year through so-called peak shifting. The National ETS gives it another tool to drive policy changes. Yet it is more complicated and with wider implications to other industries than simply telling plants to take a break. How it fits in globally, where there is a significant difference between the ETS price in China and the EU, remains to be seen. Yet, any additional CO₂-based burden upon the cement sector in the world’s largest cement producing country is a major step towards decarbonisation.

New Zealand: Fletcher Building has appointed Thornton Williams as CEO of its Concrete division. Williams has served as acting CEO of the division since 29 March 2024. The group noted Williams’ ‘significant’ leadership role in driving culture, customer satisfaction and sustainability. He has also been its chief financial officer (CFO) from 2021, before which he was group general manager, treasury and risk. He previously worked in dealer roles at Australia-based banking group ANZ and the Bank of New Zealand. Williams holds a Bachelor of Commerce degree from the University of Auckland, New Zealand.

Incoming group CEO and managing director Andrew Reding said "Thornton brings to the role a deep understanding of the commercial drivers of the Concrete business and the competitive landscape. He is therefore well-positioned to lead this high-performing division, not only as Fletcher Building navigates the current challenging trading conditions but also as economic conditions start to improve and opportunities for profitable and sustainable growth emerge.” Reding added “I look forward to working closely with Thornton and the Fletcher Building executive team when I formally commence my role on 30 September 2024. I would also like to take the opportunity to thank acting CEO Nick Traber for his support and commitment in enabling an orderly and smooth handover of the CEO role.”

Thailand: Siam Cement Group (SCG) will allocate US$6bn between 2025 and 2030 to improve the sustainability of its businesses. The investment focuses on SCG Chemicals and SCG Cleanergy, with the latter increasing its renewable power capacity to 3500MW by 2030 and constructing a new heat battery unit for energy storage at the SCG cement plant in Saraburi. The company is also looking to expand into Vietnam, Indonesia and the Philippines.

President and chief executive Thammasak Sethaudom said “We focus on these businesses as they promise sustainable growth, in line with our inclusive green growth mission.”

India: The city of Tiruchirappalli (Trichy) in Tamil Nadu has entered an agreement with a cement manufacturing unit in Ariyalur to use the city’s non-recyclable plastic materials as refuse-derived fuel (RDF) to power the plant’s kilns. This initiative aims to divert substantial amounts of plastic from the Ariyamangalam dump, starting with 300t/month and increasing over time, with hopes to collaborate with more cement plants, according to the Times of India. The city generates approximately 480t/day of non-recyclable materials, with plans to eventually prevent landfill use completely.

A Trichy official said “A cement manufacturer in Ariyalur has agreed to accept 6 - 8t/day of inert plastic ‘waste’, which will be transported to the plant in a corporation truck. It will be utilised to power the kilns as a substitute for fossil fuel.”

Argentina: Holcim Argentina has introduced the first 100% electric mining truck in the quarry mining industry in Mendoza Province, according to the company. The ‘Pure Electric Mining’ truck, belonging to the XGMT brand, is reportedly set to reduce CO₂ emissions by more than 225t/yr. It also claims to offer further benefits, including reduced operating costs and improved raw material homogeneity. The truck can transport up to 72t and has an energy recovery braking system, allowing the battery to be charged during braking to reduce energy consumption and improve operating efficiency.

Head of decarbonisation at Holcim Argentina, engineer Marilina Moro, said “Sustainability is at the core of our strategy, and as part of this path, we aim to reduce our impact on the planet. That means transforming each of our processes throughout the company's value chain.”

Mexico: Cemex has launched a new water-repellent cement under its Vertua brand, which is designed to extend the lifespan of construction projects by addressing humidity issues. The product reportedly does not require dosing and mixes like traditional grey cement. It was introduced on 12 September 2024 at the Construrama Convention in Mexico.

President of Cemex Mexico, Ricardo Naya, said “At Cemex, we have developed a new specialty cement designed to solve one of the main problems that affects almost every construction site: dampness. Our damp-proof cement is a true ‘all-in-one’. In addition to its traditional use, it incorporates water-repellent properties that not only protect structures, but also provide a smoother, more uniform finish.”

Vietnam: Deputy director of Tan Quang Cement, Tran Van Hung, has proposed reducing cement plant capacity to address the significant supply-demand imbalance. With a current supply of 120Mt/yr and a demand of only 56Mt/yr, the oversupply has led to price pressures, according to the Vietnam News Brief Service. This strategy aims to stabilise prices amid rising input costs and declining sales, further challenged by China's competitive stance and increased export taxes.

Van Hung has suggested regulating plant operations through energy limits and penalties to control supply and stabilise prices.

Brazil: China-based Sinoma Overseas has signed an engineering and supply contract for the Z02 cement grinding plant and a technical cooperation framework agreement with Votorantim Cimentos. The agreements were signed by Sinoma chair Zhu Linhe and Votorantim’s global projects director Alvaro Lorenz. This collaboration marks the third cement grinding plant project between the two companies and is part of Votorantim's ‘2028 Development Strategy.’ The contract encompasses the design, equipment supply, and technical services for a 150t/hr cement grinding plant.

Zhu Linhe said "Votorantim is the most valuable client for Sinoma Overseas, this contract and agreement strengthens the strategic partnership between the two companies. It is the strong commitment of Sinoma Overseas to support Votorantim in achieving its '2028 Development Strategy' with Sinoma’s extensive industry expertise, advanced technology and mature localised operations.”

Philippines: Davao International Container Terminal (DICT) has entered into a joint venture with Philcement to construct a dedicated berth for cement and cementitious material shipments in Davao, reports Port Calls magazine. It will oversee the construction of a 200-metre bulk terminal at berth five. Construction will commence in November 2024 and operation is expected by mid-2026. The terminal is valued at US$12.5m and will handle 2Mt/yr of cement for distribution across Mindanao, with shipping to other parts of the country being considered. Additional equipment and construction costs for a cement terminal are estimated at around US$41m.