Adani looking to reduce reliance on distributors and wholesalers
India: Adani Group's cement businesses are looking to cut their reliance on distributors and wholesalers as the country's second-largest cement maker looks to boost its profitability. As part of a pilot project, Ambuja Cements and ACC have reduced the number of distributors from 12 to three in the south Gujarat region, which is home to half of the state's small and medium industries and a fifth of the state's population, according to the Mint newspaper. Both firms are expected to reduce the number of distributors across the wider country in the coming months.
"The profitability of the distributors is more than some of the cement manufacturers," said an executive privy to the development. "This needs to change. Once you have fewer distributors, they can continue making more money on volumes, provided they aggressively seek discounts. Both Ambuja and ACC are very strong brands and can do even better if we build an even better engagement with retailers. Additionally, all institutional sales will be done by ACC or Ambuja. So, if there is a large requirement for, say, a flyover project, instead of a wholesaler seeking a bulk order, the cement manufacturer will directly provide to the needs of the contractor."
Adani Group became India's second-biggest cement maker in May 2022 when it paid US$10.5bn to Holcim to buy Ambuja Cements and its subsidiary ACC.
Cement Manufacturers Association of the Philippines calls for investment and promotion of domestic products
Philippines: The Cement Manufacturers Association of the Philippines (CMAP) is working with the government to attract both domestic and foreign investment to the sector to expand domestic production at low cost. Alongside the Philippine Iron Steel Institute (PISI), CMAP also renewed calls for the promotion of locally produced construction materials with the help of the Department of Trade and Industry (DTI), according to the Manila Bulletin newspaper.
CMAP President Reiner Dizon said “If you buy locally and if there is a problem, it's easy to chase or ask the manufacturer because it's here in the Philippines. Imagine if there is a problem with the cement but it comes from another country, it's quite a complicated process.” Dizon further stressed that enjoying local produce also benefits the economy and fellow Filipinos by creating a circular advantage where profits are shared among the community.
DTI Assistant Secretary Mary Jean Pacheco said that the DTI promotes local construction products and demonstrates confidence that local suppliers provide quality products. Pacheco assured CMAP and PISI that the DTI will strive to advocate standardised products to ensure safety and quality when using construction materials.
Fauji Cement raises sales in 2023 financial year
Pakistan: Fauji Cement sold 4.9Mt of cement during Pakistan’s 2023 financial year (FY2023), which ended on 30 June 2023. This generated revenues of US$244m, up by 25% year-on-year from US$194m in FY2022. The producer’s earnings before interest, taxation, depreciation and amortisation (EBITDA) also rose, by 29% to US$72.3m from US$56.2m.
Managing director and CEO Qamar Haris Manzoor said “The transformation journey which started in 2020 on capacity enhancement, cost reduction initiatives and increasing captive green energy has now started to pay dividends, despite unpreceded economic challenges.” He continued “FY2023 has been challenging for businesses due to all-time high inflation and interest rates, which saw a drop in consumer demand, negatively affecting the industry. The cement industry saw a demand decline of 16% as construction activities decreased in both the northern and southern regions of the country. Despite the tough environment, Fauji Cement remained committed to its growth strategy, and successfully commissioned its 6500t/day expansion project at its Nizampur site.”
InterCement may sell Brazilian business
Brazil: InterCement has hired BTG Pactual to help explore ‘capitalisation alternatives’ as part of a proposed restructuring, possibly involving the sale of the group’s Brazilian business. Valor International News has reported that Companhia Siderúrgica Nacional (CSN) Cimentos has signalled its interest in acquiring the business, while Votorantim Cimentos may group together with other cement companies to make a bid. This would entail a division of the assets in order to conform to Brazilian competition laws.
InterCement successfully secured a postponement for payment of its outstanding bank debt in September 2023. It owes net debt of US$1.5bn up to 2027, including a senior note of US$548m due in May 2024. InterCement operates 12.2Mt/yr worth of cement capacity, and produced 8.7Mt of cement in 2022.
Lafarge Canada’s Exshaw cement plant to run on 34% solar energy
Canada: Lafarge Canada has engaged Canadian Utilities on a virtual power purchase agreement (VPPA) basis to supply solar energy for its Exshaw cement plant in Alberta. Under the agreement, the Exshaw cement plant will receive 100% of energy generated at the 38.5MW Empress solar power plant in Cypress County. The VPPA lasts until 2036, and covers 34% of the Exshaw plant’s energy consumption up to that time.
Lafarge Canada (West) president and CEO Brad Kohl said "We're continually assessing ways we can reduce our environmental impact while actively pursuing sustainable solutions within our operations." He concluded "Our collaboration with Atco underscores our commitment to adopting renewable energy at our plants and sites, which is key to reducing our reliance on fossil fuels."
Samsung Engineering and Svante enter memorandum of understanding for carbon capture in Asia and the Middle East
Asia/Middle East: South Korea-based Samsung Engineering and Canada-based Svante have signed a new memorandum of understanding (MoU). Under the MoU, the companies will collaborate on the development and deployment of carbon capture technology in cement and other industries in Asia and the Middle East.
Svante President and CEO Claude Letourneau said “Samsung Engineering’s more than 50 years of experience in the energy and industrial sectors will be invaluable as we continue to rapidly expand our operations and filter production capabilities.”
UK: Holcim subsidiary Aggregate Industries has installed Driver Status Monitoring Systems supplied by Spillard Vehicle Safety Systems in the cabins of its Cauldon cement plant truck fleet. The systems use cameras and AI software to detect signs of tiredness, as well as mobile phone use, lane deviation, not wearing a seatbelt and smoking. In the case of tiredness, this triggers an alarm which continues to sound until the vehicle comes to a stop.
Cement supply chain manager Matt Owen said “Health and safety is a massive priority for us as a company and the industry, so anything that can serve to continuously improve our approach to it is very welcome. Driver fatigue is always a potential issue across any business involved in transport and fleet, so we’re delighted to be utilising the latest technology with our partners to ensure that everyone gets safely home from work.”
Alpacem opens new headquarters
Austria: Alpacem inaugurated its new headquarters in Wietersdorf, Carinthia, on 6 October 2023. The project demonstrated the first construction application of the group’s reduced-CO2 CEM-II/C Portland composite cement.
Managing director Lutz Weber said “With the most modern technologies for decarbonisation and our extensive building materials expertise, we have succeeded in reducing the ecological footprint of our Alpacem headquarters to a minimum.”
Use of ground granulated blast furnace slag avoided 408Mt of CO2 emissions over 22 years in EU and UK
EU/UK: EUROSLAG says that the use of ground granulated blast furnace slag (GGBFS) in cement production in the EU and UK between 2000 and 2022 has generated a cumulative reduction in CO2 emissions of 408Mt. GGBFS replaced 716Mt-worth of raw materials over the period.
EUROSLAG Chair Thomas Reiche said "Resource conservation through secondary raw materials, especially in the construction sector, and lower emissions of climate-damaging CO2, are of outstanding ecological and economic importance. The use of ferrous slags makes an important contribution to this. EUROSLAG is working multilaterally to master the enormous challenges in the coming years, above all the transformation of the steel industry, through research and adjustments to national and European regulations.”
Górażdże Cement to invest Euro261m in carbon capture and waste concrete recycling at Górażdże cement plant
Poland: Górażdże Cement has announced an investment of Euro261m in planned sustainability upgrades to its Górażdże cement plant in Opole Voivodeship, the Polish News Bulletin newspaper has reported. The Heidelberg Materials subsidiary plans to build a carbon capture installation, a green energy source and a facility to recycle construction and demolition waste for use in its cement production.