UK: The Institutional Investors Group on Climate Change (IIGCC) has called on European building materials companies to take steps to fight climate change or face commercial extinction. Recommended changes from its new ‘Investor Expectations of Companies in the Construction Materials Sector’ report have been sent to the heads of LafargeHolcim, HeidelbergCement, CRH and Saint-Gobain. The report informs investor engagement with other construction material firms on the initiative’s global list of 161 focus companies. Investment bodies in the group represent US$2Tn in assets, assets under management and under advice.

“The cement sector needs to dramatically reduce the contribution it makes to climate change. Delaying or avoiding this challenge is not an option. This is ultimately a business-critical issue for the sector,” said Stephanie Pfeifer, the chief executive officer (CEO) of the IIGCC. “Major economies such as the UK and France are increasingly adopting economy-wide net zero emission targets. The cement sector needs to get ahead of the profound transformation their sector faces by addressing barriers to decarbonisation in the short- to medium-term if companies are to secure their future.”

Key details set out in the ‘Investor Expectations’ report include becoming carbon neutral by 2050. Companies are expected to set short, medium and long-term science-based targets to reach this goal. Building material companies should be public policy transparent and advocate for the Paris Agreement, they should implement a ‘strong’ governance framework assigning specific responsibility for climate change to a board committee or board member and they should provide enhanced corporate disclosure in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

The IIGCC recognised the steps HeidelbergCement in particular has taken in already having committed to meeting key aspects of the investor expectations it has outlined. CRH, LafargeHolcim and Saint-Gobain have been encouraged to follow suit, given the ‘significant’ role they play as European-based multinationals. The group also praised the ambitious targets set by India’s Dalmia Cement to become carbon negative by 2040.

UAE: Al Ain Cement and National Cement have signed a clinker offtake deal. Al Ain Cement, a subsidiary of Arkan Building Materials, will supply clinker to National Cement’s grinding plant in Abu Dabi, according to Gulf Today. The agreement is also intended to help both companies reduce production and logistics costs. The two companies have a combined production capacity of 3.1Mt/yr of clinker and 6.6Mt/yr of cement.

Nepal: The parliamentary Public Accounts Committee (PAC) has accused the Huaxin Cement Narayani plant being built at Benighat Rorang Rural Municipality in Dhading of ignoring the project’s Environment Impact Assessment (EIA) report. Members of the committee visited the site two months ago following complaints, according to the Republica newspaper.

It found that an 11km access road to the site had encroached upon a river. The company had used sand and stones from the river and used the materials to build the road. The road’s construction has also disrupted local agricultural irrigation canals. A flood at the site of the cement plant was reported in July 2019. An irregular deal to lease land to the joint venture was also reported.

Algeria: The value of clinker exports grew to US$30m in the first five months of 2019 from US$3.2m in the same period in 2018. The country is hoping to increase its exports of cement and clinker to around US$500m/yr by the mid-2020s, according to Télévision Algérienne. It is facing a significant production overcapacity with the manufacturing base expected to reach 40.6Mt/yr in 2020. Consumption was 26Mt in 2016.

Jamaica: Caribbean Cement has commissioned an automatic palletiser. The project cost around US$66,500, according to the Gleaner newspaper. It is part of a US$9m investment on capital projects in 2019. The cement producer is planning to increase its output to 1.2Mt/yr by December 2020 compared to 0.95Mt/yr at present. The subsidiary of Mexico’s Cemex operates an integrated plant in Kingston.

US: The Japan Coal Energy Center (JCOAL), GreenOre Clean Tech, Columbia University and Wyoming Infrastructure Authority (WIA) have entered into a memorandum of understanding (MOU) to test carbon utilisation and recycling technology. GreenOre Clean Tech, using technology under license from Columbia University, will use testing space at the Integrated Test Center (ITC) near the Dry Fork Station coal-fired power station in Gillette, Wyoming. Calcium carbonate produced through CO₂ mineralisation could then potentially be used for aggregates, concrete production or in paper production. The test will be funded by JCOAL with additional support from project partners.

The State of Wyoming and JCOAL have been working together since 2016, when they signed an initial MOU committing to cooperation in coal research and development of technologies and coal trade. JCOAL operates under the supervision of the Ministry of Economy, Trade and Industry of Japan and is supported by more than 120 member coal-related businesses, including Kawasaki Heavy Industries, Mitsubishi Hitachi Power Systems, Nippon Steel and Toshiba. Kawasaki is scheduled to test its solid sorbent capture technology at the ITC beginning in 2021.

India: UltraTech Cement plans to complete its merger with Century Cement by September 2019. Chairman Kumar Mangalam Birla said the company has approval from shareholders, the Competition Commission and stock exchanges, according to the Mint newspaper. However, it still needs permission from the National Company Law Tribunal (NCLT).

The merger, which was first announced in May 2018, is a long running reorganisation of assets belonging to the Birla family. Once complete it is expected to give UltraTech Cement dominance in all regional markets with the addition of 13.4Mt/yr of production capacity in Madhya Pradesh, Chhattisgarh and Maharashtra.

India: ACC’s net sales grew by 8% year-on-year to US$1.15bn in the first half of 2019 from US$1.06bn in the same period in 2018. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 18% to US$191m from US$162m. Its cement sales volumes rose by 2% to 14.7Mt from 14.4Mt and its ready-mixed concrete (RMX) sales volumes jumped by 15% to 1.79Mm3 from 1.56Mm3.

“I am pleased that EBITDA improved significantly on account of better realisations, operational efficiencies and supply chain efficiency improvement. Despite subdued cement demand, our strong customer relationships, loyal channel network and range of innovative products have helped us deliver a robust quarter,” said Neeraj Akhoury, the managing director and chief executive officer (CEO) of ACC. He added that the company’s concrete business grew ‘strongly’ due to eight new RMX plants it added in the second quarter. Altogether the company operates 82 operational.

India: Zuari Cement’s integrated cement plant at Sitapuram, Telangana has been issued a show cause notice by the Central Pollution Control Board (CPCB) for exceeding particulate matter emissions. During an inspection it has found to be emitting 40.6mg/Nm³ from the kiln and 78mg/Nm³ from the cement mill, according to the Times of India newspaper. The limit is 30mg/Nm³. CPCB officials also found other violations including an alleged deliberate attempt show reduced levels of sulphur dioxide and nitrogen oxide. The plant has been asked to calibrate its dust monitors properly and submit a compliance report by late July 2019.

Peru: Cementos Pacasmayo’s sales grew by 5.3% year-on-year to US$193m in the first half of 2019 from US$183m in the same period in 2018. Its consolidated earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 5% to US$57.1m from US$54.5m. Cement production at its three plants rose by 10.6% to 1.2Mt from 1.08Mt. The cement producer attributed the growth in sales to higher sales in the public sector, El Niño reconstruction spending and a revival of infrastructure projects.