Australia: Cement Australia has commemorated the 100th anniversary of the start of operations at its Railton cement plant in Tasmania with a centenary dinner.

Production manager Garry Bissett said "When it opened up in 1923, they built the small kiln, and it was only capable of cement production of 25,000t/yr; now we're producing 1.4Mt/yr." He added that the workforce has fallen to less than half of its original size of 300 people, to 140. Bissett concluded "We're doing some major work, with a lot of capital upgrades in the near future."

China: Huaxin Cement has blamed a fall in its profits in the first half of 2023 on falling clinker prices and sales volumes in its home market. In a preliminary results announcement, it reported that its net profit dropped by 25% year-on-year to US$166m in the first half of 2023 from US$221m in the same period in 2022. Despite this, the group’s operating income rose by 10% to US$2.20bn from US$2.00bn. Its overall sales volumes of cement and clinker increased by 2% to just under 30Mt. However, domestic sales volumes decreased by 0.76%. It also reported that concrete sales volumes grew by 82% to 10.9Mm³.

India: Ambuja Cements has concluded a deal to acquire a 57% stake in Sanghi Industries for US$202m. Reuters has reported that the company has offered to subsequently increase its stake in Sanghi Industries to as much as 83% for up to US$295m in total. It will fund the acquisition of any stake through internal accruals. Sanghi Industries operates the 6.1Mt/yr Sanghipuram cement plant, which is equipped with a 130MW captive power plant and a 13MW waste heat recovery (WHR) plant. The cement plant, in Gujarat, also has a single-jetty port on the Arabian Sea coast. Ambuja Cements' parent company Adani Group plans to more than double the Sanghipuram cement plant's capacity to 15Mt/yr.

Adani Group chair Gautam Adani said “By joining hands with Sanghi Industries, Ambuja is poised to expand its market presence, strengthen its product portfolio and reinforce its position as a leader in the construction materials sector. With this acquisition, Adani Group is well on course to achieve its target of 140Mt/yr of cement manufacturing capacity by 2028 ahead of time.”

Saudi Arabia: Yamama Cement recorded revenues of US$134m during the first half of 2023, up by 17% year-on-year from US$115m during the first half of 2022. The producer's net profit rose by 75% to US$56.2m from US$32.1m.

US: Prometheus Materials' microalgae-based biocement has demonstrated 12 times greater sound absorption than ordinary Portland cement (OPC). Prometheus Materials produces its biocement at ambient temperature, with no process CO₂ emissions.

India: UltraTech Cement has concluded an agreement to buy a 26% stake in renewable power provider VEH Radiant Energy. UltraTech Cement says that VEH Radiant Energy will help it to increase its reliance on renewable power in its operations.

US: CRH subsidiary Oldcastle APG has acquired France-based Saint-Gobain's fence, railing and decking business in the US. The business consists of two production locations, in Buffalo, New York, and Orem, Utah. Together, the sites employ 210 people. The business generated US$65.6m in sales in 2022.

Saint-Gobain said that the divestment serves to advance its profile optimisation strategy under its Grow & Impact plan.

The release of the half-year financial results from many of the larger multinational cement producers in Europe and North America gives us the usual opportunity to examine how well the year has gone so far. In summary, each of the companies highlighted here increased its sales and earnings on a like-for-like basis. However, in many cases, but not all, sales volumes of cement fell. Notably, both Holcim and Heidelberg Materials did not appear to release these figures. Heidelberg Materials did say though that its sales volumes declined in all business lines as “a result of the global economic down-turn.” In Holcim’s case, on top of whatever else has been going on over the last six months, the group has continued to divest cement assets as it realigns its portfolio. One more interesting point to note is that, instead, Holcim and Heidelberg Materials highlighted their reductions in CO₂ emissions at the start of their half-year reports.

Graph 1: Sales revenue for selected multinational cement producers in the first half of 2023. Source: Company financial reports.

Holcim continued to expand its light building materials business segment in North America as well as picking up some aggregate and ready-mix concrete assets in North America and Europe. Its sales grew fastest in North America, although Europe generated more sales overall. Elsewhere the other geographic business areas all held up. The group’s Solutions & Products division, the one responsible for the light building materials, lost sales and earnings year-on-year. This was blamed on the “normalisation of buying patterns” in the roofing market in North America in late 2022 and carrying into 2023, leading to destocking in various distribution channels. How this might effect the group’s ongoing diversification strategy remains to be seen.

Heidelberg Materials was more upfront about the specifics of its cement business in the first half of 2023. Sales volumes fell in all business lines. For cement, the largest falls were reported in the Western and Southern Europe Group area due to a ‘significant’ decline in residential construction followed by the Africa-Eastern Mediterranean Basin area although a slight increase was recorded in deliveries in Asia-Pacific. That last region benefited from the local subsidiary increasing its cement and clinker deliveries in Indonesia. This was reportedly due to the company leasing the Maros cement plant in September 2022. The plant serves markets in the east of the country. Overall, despite the falls in revenue in many regions, the group pushed up its prices sufficiently to keep net sales revenue and earnings growing well.

Cemex, meanwhile, was keen to shout about its improved earnings in all of its regions. It attributed this to its price strategy, lowering input cost inflation and the growing effects of its investments portfolio and its Urbanisation Solutions business. Each of the group’s main regions – Mexico, the US and Europe – performed well, with Mexico growing sales the fastest, the US driving up earnings the most and Europe, Middle East, Africa and Asia holding growth steady despite demand issues. Pricing was cited as a main issue for the success of each region.

Vicat’s sales and earnings rose due to increased sales volumes of cement and higher prices. At home in France, the company successfully fought off falling cement sales volumes with price rises, particularly due to energy price inflation. North America, the group’s other big market, grew strongly, boosted by the ramp-up of production and sales from the new kiln at the Ragland plant in Alabama. Finally, Titan experienced a similar situation to the other companies featured here, with increasing demand driving sales and further helped by prices. Earnings then grew in turn. Unlike the other companies, the US contributed a much larger share of sales for Titan than Europe or elsewhere. Back home in Greece the company’s sales and earnings benefited from increased sales volumes across all business lines. Both Vicat and Titan had mixed experiences in Egypt and Türkiye, with negative currency exchange effects causing problems in both countries, despite demand mounting in the latter.

On the basis of these financial results, it has been a positive first half for the larger cement companies based in Europe and North America. Cement sales volume growth has been mixed, where known, but price rises have compensated for this, leading to higher earnings. Whether these companies can continue to pull off this trick as or if global inflation starts to slow down is very much an ongoing question. As mentioned at the start, some of the companies also led their half-year reports with emission figures and many of them prominently highlighted forthcoming sustainability projects. These companies may be making most of their money in Europe and North America but there is clearly an awareness that these regions are also leading globally in implementing CO₂ emission legislation.

Switzerland: Holcim has appointed Nollaig Forrest appointed as its chief sustainability officer with effect from 1 September 2023. She succeeds Magali Anderson in the post, who has decided to pursue new career opportunities as a board member and supporter of non-government organisations.

Forrest is currently working as the Group Head of Corporate Affairs at Holcim, in charge of Investor Relations, Group Communications, Public Affairs & Branding. Prior to being employed by Holcim, she was the Vice President Corporate Communications at Firmenich and held public affairs roles at Dow, DuPont and the World Economic Forum. Forrest is a member of the MIT Climate and Sustainability Consortium Advisory Council and a member of Bloomberg’s Cities Council for sustainable cities.

Forrest holds a masters degree in International Relations from the Graduate Institute of International Studies in Geneva, Switzerland. She has also completed the Yale-WBCSD Sustainability Leadership and INSEAD International Marketing programs.

Japan: A Taiheiyo Cement plant will be one of two facilities to host carbon capture systems under the Tohoku West Coast carbon capture and storage (CCS) project. The Japan Organisation for Metals and Energy Security selected the project to advance to the feasibility study stage on 2 August 2023. The partners will now investigate technical issues in the entire CCS value chain, as well as commercial and social issues around transporting captured CO₂ by ship to temporary storage sites. Identification of permanent underwater storage sites is scheduled for 2024, with the design stage of capture, transport and storage systems scheduled to conclude in 2026. The Tohoku West Coast carbon capture and storage project will commence in 2030.

Taiheiyo Cement is committed to a 20% reduction of its CO₂ emissions between 2000 and 2030, while the Japanese government is committed to a 46% reduction between 2013 and 2030.