Global Cement Newsletter

Issue: GCW590 / 11 January 2023

Headlines


Adani Cement’s dispute with truck driver unions in Himachal Pradesh is about to enter its fifth week. The standoff began on 15 December 2022 when the company closed its integrated plants at Darlaghat and Barmana in response to union freight rates. A third unit, a grinding plant at Nalagarh, reportedly continued to operate for a few days longer with raw materials supplied from neighbouring Punjab and Rajasthan, until the transport companies shut down its supply.

Adani Group took over the plants from Ambuja Cement and ACC following its acquisition of Holcim’s India-based businesses in September 2022. The new business seemed to be running smoothly as new officials were appointed and an alternative fuels subsidiary, Geoclean, was created. Then Adani Cement closed its two plants in Himachal Pradesh. In a statement the group said, “Our plants at Gagal (Barmana) and Darlaghat have been incurring losses for quite some time now with no signs of improvement due to stiff resistance from transportation unions ignoring the larger cause of employment generation and contribution to the state’s revenue.” The group added that it had requested the truckers reduce the freight rate to around US$0.07/t/km from US$0.14/t/km, with the lower rate previously recommended by a committee from the state’s transport department.

Himachal Pradesh held state elections in mid-November 2022 with the Indian National Congress (INC) party taking control of the state government from the Bharatiya Janata Party (BJP). The results of the poll were revealed about a week before the cement plants closed and the new administration has suffered a bumpy start to its tenure. At first the state government issued a show cause notice to the cement producer requesting that it explain the closures or else risk ‘appropriate administrative action.' Several rounds of talks followed to no avail. Most recently, a government subcommittee has been set up that will bring together representatives of Adani Cement and the truck unions to try and agree on new freight rates.

In production terms the closure of the Darlaghat and Barmana cement plants is a big deal in the state, given that they have a combined cement production capacity of 6Mt/yr from the region’s total integrated capacity of 10.5Mt/yr. Data is limited on the direct effects of the standoff on the cement and construction market so far. However, competitor UltraTech Cement may be benefiting as it was swiftly awarded the supply contract for government projects. Local press reports have also noted that some of the unions have been stopping cement trucks from entering the state.

What is clearer is the human side to the dispute. Around 1000 staff are employed both directly and indirectly at the Barmana plant and others have jobs at Darlaghat and Nalagarh. Adani Group has relocated at least 140 staff from both sites during the closures. In addition over 7000 drivers were supporting both plants. Even more people have jobs connected to the plants, their supply chains and markets.

The argument between Adani Cement and the truck driver unions in Himachal Pradesh needs to be resolved soon for the good of everybody. Rising fuel costs are the driver of this situation, although it would be interesting to know why the other cement producers in the state haven’t similarly reacted against high freight rates in the same way. India isn’t the only country where the cement sector has been affected by driver union activity. South Korea endured a series of driver strikes in the autumn of 2022 that disrupted the cement sector. Eventually the government enacted laws to restrict strikes that might cause disruption to key areas such as cement production. The International Monetary Fund (IMF) forecasts that global inflation rates will stabilise in 2023 after a sharp rise in 2022. Growth rates are also predicted to slow. As societies and companies adjust to this it seems likely that there will be more clashes between companies, unions and other organisations as everybody tries to absorb higher costs.


Sri Lanka: INSEE Cement has appointed Jan Kunigk as its chief executive officer (CEO). He succeeds Nandana Ekanayake, who will continue as chair.

Kunigk became the cement producer’s Executive Vice President in 2017, and also worked as its Commercial Director. He previously worked as the Senior Vice President at Holcim Indonesia and has held project and strategy and roles for Holcim in Switzerland. Prior to this, he worked in management consulting. Kunigk holds a master's degree in business administration (MBA) from Western Illinois University in the USA and a diploma in European Business Studies from Bamberg University in Germany.


Türkiye: Limak Cement has appointed Trabelsi Sabri appointed as its Group Process Deputy Director. He previously worked as Group Process Manager for the company. Prior to this he held roles with Votorantim Cimentos in Tunisia. Sabri holds a degree in geosciences from the University of Tunis.


US: CRH-subsidiary Ash Grove Cement has appointed Fernando Valencia as Vice President of Manufacturing – Central Ashgrove. He previously worked as a plant manager at LafargeHolcim’s Ste Genevieve plant in Missouri and the Portland Plant at Florence in Colorado. Prior to this he was the plant manager of Holcim US’ Hagerstown Plant in Maryland and also worked as a commissioning manager. Valencia holds a degree in mechanical engineering from the Anahuac University Network and a master’s degree in business administration from the University of Missouri - St Louis.


Poland: CRH-subsidiary Cement Ożarów has appointed Mariusz Adamek as its chief operating officer. He was previously the company’s Industrial Director. Prior to this he was the managing director of Geocycle in Poland. Earlier in his career he worked for Lafarge with placement in Poland and Egypt.


Egypt: Lafarge Cement Egypt has appointed Ahmed Elserafy as its Director of Public Affairs & Security. He has worked for Lafarge for over 10 years in security and resilience roles. Before this he worked for the African Union and the United Nations. Elserafy is a graduate of the Egypt Police Academy.


Jordan: Lafarge Jordan has appointed Ayman Al-Leimoon as the manager of its Rashadiyah cement plant. He has worked for Lafarge Jordan for over 20 years. He started in mechanical engineering and maintenance roles before moving in to project management. Most recently he was the plant and manager at the Fuhais cement plant. He holds a bachelors degree in mechanical engineering.


Cyprus/Türkiye: Çimsa has appointed Soner Atilmis as the terminal manager at its Kıbrıs terminal in Northern Cyprus. Previous roles at Çimsa included working as Domestic Special Products Sales Executive and Technical Support Supervisor since 2007. Before this he held project management and mechanical engineering positions with Mersin Makina Sanayi and Gökçay İnşaat respectively. Atilmis holds a degree in engineering from Mersin University.


Demark: Hasle Refractories has appointed Carsten Riisberg Lund as chair of its board of directors.

Riisberg Lund has worked in the cement industry for 35 years mostly for equipment supplier FLSmidth. His most recent role was as FLSmidth’s Cement Industry President since late 2020. Before this he worked as the President for Region Europe, North Africa and Russia (ENAR). He started his career as a Process and Commissioning Engineer for FLSmidth. Since then he led FLSmidth’s former Material Handling division and spent three years as managing director in India.


US: Fortera has appointed Scott Healy as its chief financial officer (CFO). He has worked for 30 years in the wind, solar, natural gas, plastic recycling and energy industries. Notable recent positions include CFO and Senior Vice President at recycling company Brightmark.

Fortera is a materials technology company that has developed a recarbonation process that uses captured CO2 and mineralises it into a secondary cementitious material.


Kuwait: ACICO Group has appointed Vassilis Mavridis as its Group Chief Operating Officer for Factories. He previously worked for Sibline as its Chief Operating Officer in Lebanon. Prior to this he worked for Titan Cement in Greece for around 18 years, eventually becoming the plant manager of the Thessaloniki Plant from 2003 to 20211 (2021 or 2011?). Mavridis holds a master’s degree in mechanical engineering from the Aristotle University of Thessaloniki and qualifications from Cranfield University in the UK and the Harvard Business School.


Poland: Vesuvius Poland has appointed Piotr Sperka as Site Director and the president of its management board. He has worked for Vesuvius and its US-based subsidiary since 2007. He started as a production manager for Vesuvius USA, eventually becoming a Plant Operations Producer Manager in 2017. He later held roles as the Operations Manager - Advanced Refractories in Poland for Vesuvius and SLG and Purging Products Director EMEA. Sperka holds a master’s degree in mechanics and machine design from the Cracow University of Technology and a qualification in Postgraduate Business Studies.


Finland: Coolbrook has appointed Nigel Pearce as Head of Manufacturing and Supply Chain. He previously worked at Rolls-Royce where he held a number of positions in his 33-year career at the company, most recently as Head of Manufacturing Engineering. He joins Coolbrook with experience in the development of gas turbine technology. At Coolbrook, Pearce will lead the company's manufacturing team, overseeing the planning, coordination, and performance of its processes. He will also be responsible for developing new and existing relationships with suppliers and optimising the procurement of materials and technology needed for Coolbrook to meet its production timeline.

Coolbrook is a technology and engineering company that is developing processes to replace the burning of fossil fuels in major industrial sectors. Its RDH has potential applications in cement, steel and chemical production process. Its Roto Dynamic Reactor (RDR) is intended to eliminate CO2 emissions from the steam cracking process used in the production of plastic.


India: KHD’s India-based subsidiary Humboltdt Wedag India has appointed Ajay Pal Singh as Deputy Manager. He previously worked for India-based components manufacturer Zetwerk. Before this he held managerial and engineering roles with KHD India.


Germany: Aumund has appointed Mari Kuijs as General Manager After Sales. He previously spent over 30 years working for ThyssenKrupp Group holding jobs in Germany, the Netherlands, Turkiye and the Middle East. He holds qualifications in energy technology, business administration and management studies.


Spain: Votorantim España plans to invest Euro15m in an upgrade to improve the efficiency of its subsidiary Cementos Cosmos' Toral de los Vados cement plant in Léon. The project will reduce the plant's power consumption by 7%, while increasing its clinker production by 11% to 3100t/day. Cementos Cosmos expects to commission the newly upgraded plant before the end of 2023. ALIMKC News has reported that the local authority has altered the plant's environmental authorisation accordingly.


Switzerland: Cemsuisse, the Swiss cement association, recorded full-year national cement deliveries of 4.15Mt/yr throughout 2022. The figure represents a 0.7% year-on-year decline from 4.18Mt/yr throughout 2021. During 2022, ready-mix concrete batching plants received 73% of deliveries, while building sites received 20%. 37% of cement travelled to its destination by rail.

Cemsuisse said that energy uncertainty and rising inflation impacted on deliveries during the fourth quarter of the year.


Canada: Lafarge Canada has signed an agreement with power provider TransAlta to recover and process fly ash from the site of the latter's decommissioned Edmonton coal-fired power plant. The project will use Ash-TEK's Ponded Ash Beneficiation System (PABS) fly ash beneficiation technology. The processed ash will then be able to replace up to 25% of cement in low-CO2 concrete production.

TransAlta previously secured with Lafarge Canada for the supply of renewable power to its Exshaw, Alberta, cement plant in February 2022.


Italy: General Sistem has inaugurated its new 300,000t/yr Venice cement terminal. The facility is equipped with four cement silos with a total capacity of 20,000t, and will be able to receive 150m-long ships. CITIT News has reported that the Bahamas-registered Nordanvik was the first cement transport ship to dock at the terminal, on 10 January 2023. The Venice terminal will receive up to 50 cement ships annually.


Spain: Cyprus-registered Grit Cement, a 3910t-capacity cement carrier, struck a berthed chemicals tanker in harbour in the autonomous city of Ceuta on 9 January 2023, sustaining damage. FleetMon News has reported that the vessel was coming into port from Carboneras, Alméria. It has since disembarked on its return journey to Carboneras.


Malaysia: The Sarawak Economic Development Corporation (SEDC) and Bintulu Development Authority (BDA) are planning to set up a joint-venture tasked with imported cement into Sarawak due to shortages and high prices. The company intends to import 0.5 – 1Mt/yr of cement from Siam Cement Group (SCG) in Thailand, according to the Star newspaper. Representatives of the SEDC and BDA recently visited SCG in Bangkok.

Cement prices in Sarawk are reportedly 15% higher than in mainland Malaysia and 4% higher than neighbouring Sabah. Supply and pricing issues have adversely affected infrastructure projects in the state. Maintenance at CMS Cement’s integrated Mambong plant south of Kuching and delays in delivering raw materials to its grinding plant at Kuching grinding plant caused further disruptions to cement supplies in late 2022.


US: Argos USA has ordered a 490 M-type ship unloader from Swden-based Bruks Siwertell for cement and fly-ash handling at the Port of Houston in Texas. The unloader will have a continuous rated cement handling capacity of 800t/hr and is designed to accommodate vessels up to 65,000 dwt. It will be assembled on site and is planned for delivery in February 2024. Bruks Siwertell will also supply the complete screw conveyor system for transporting dry bulk material from the unloader to a storage dome, along with support structures and walkways.


Belgium: Heidelberg Materials has announced an upcoming project called Anthemis at its subsidiary CBR's Antoing cement plant in Hainaut. The project will implement Heidelberg Material's OxyCal model, which combines Oxyfuel and amine-based carbon capture technology. When operational, the system will capture 800,000t/yr of CO2, reducing the Antoing cement plant's CO2 footprint by 97%.

Heidelberg Materials chair Dominik von Achten said “We are excited to add yet another pioneering technology to our CCUS project portfolio, and to build on what we have already achieved in terms of research and innovation. From the Antoing plant alone, we will be able to offer more than 15Mt of carbon-free cement to the construction market during the first 10 years of operation." Von Achten concluded "This is a key contribution to Belgium’s transition to net zero greenhouse gas emissions.”


China: BBMG recorded a 52-59% year-on-year drop in its net profit to US$177 - 207m, Reuters has reported. The producer attributed the decline to a drop in cement sales, alongside a rise in the cost of raw materials.


Australia: First Graphene has partnered with Suvo Strategic Minerals to develop graphene-enhanced metakaolin for use in cement and concrete production. Metakaolin is a pozzolanic material derived from kaolinite clay. The partners believe that the technology has commercial potential to improve concrete performance and reduce CO2 emissions.


China: Tangshang Jidong Cement expects to record a 46-52% year-on-year drop in its full-year net profit in 2022. Reuters has reported that the producer forecasts a profit of US$198-223m throughout the year, compared to US$413m in 2021.


Italy: Holcim announced its acquisition of Nicem, Italy's ground calcium carbonate market leader. The group said that it plans to use Nicem's ground calcium carbonate as raw material in production of its ECOPact and ECOPlanet reduced-CO2 cement and concrete range.

Holcim's Europe regional head Miljan Gutovic said “Nicem complements our existing operations perfectly and allows us to further leverage our expertise in green formulation, opening a new source of alternative materials to decarbonise our ready-mix concrete. I look forward to welcoming the employees of Nicem to the Holcim family, whose valuable expertise will help us accelerate green growth.”


China: China Tianrui Group Cement settled a term loan facility on 9 January 2023. Reuters has reported the value of the facility as US$30m.


Argentina: Portland Cement Manufacturers Association (AFCP) members sold of cement sold 13Mt of cement in 2022, up by 7% year-on-year. Local press reported that sales volumes were at their highest since 2012. Exports dropped by 24% year-on-year to 83,300t, from 115,000t.


Dominican Republic: The Dominican Association of Portland Cement Producers (ADOCEM) has declared 2023 a year of strength in the cement industry, as it celebrates the 75-year anniversary of the start of cement production in the country. CNIN News has reported that the Dominican Republic's cement industry contributed US$764m/yr to the national economy, 0.8% of gross domestic product (GDP).

ADOCEM president Félix González said “The cement industry has contributed decisively to our national stability, not only through quality jobs and contributions to the treasury, but also by successfully meeting local demand and contributing to international exports, despite cost-related challenges."


Vietnam: Vicem recorded full-year sales of US$1.68bn during 2022, up by 17% year-on-year. The producer sold 27.5Mt of cement, down by 6.7% year-on-year. Export sales volumes declined more sharply than those on the domestic market. Vicem responded to the cost impacts of economic disruptions arising from the on-going Russian invasion of Ukraine by raising its cement prices. Nonetheless, its profit fell by 30% year-on-year to US$63.9m.

Vietnam News Summary has reported that Vicem is aiming to achieve sales growth of 4% year-on-year in 2023, to US$1.74bn. Export sales growth prospects are strong, since China resumed its import of foreign goods at the end of December 2022. China consumed 54% of all Vietnamese cement exports in 2021.


Philippines: Holcim Philippines carried out 70 upgrades aimed at increasing automation in its operations during 2022. The projects aim to optimise cement production, generate cost savings and ensure best safety practices. The Manila Times has reported that new Industry 4.0 initiatives include equipment monitoring systems offering 90-day performance projections, software capable of predicting cement's strength development and drones to replace visual inspections in remote spaces.

Holcim Philippines said that it is currently exploring the use of new predictive technologies in its operations.


Australia: Adbri has extended Independent Cement and Lime (ICL)'s contract to exclusively distribute its products to the New South Wales and Victoria markets. ICL is a 50% subsidiary of Adbri. Volumes under the renewed contract will be similar to those during 2022, while prices will reflect market conditions. Adbri said that ICL distributes a 'substantial' proportion of the cement produced at its Birkenhead cement plant in South Australia.

Adbri's interim chief executive officer Mark Irwin said “Independent Cement and Lime is Victoria’s pre-eminent cementitious products distributor and is an important part of Adbri’s supply chain across Victoria and New South Wales. We are pleased to extend our distribution arrangement with ICL through to the end of 2023. We look forward to the commissioning in 2023 of the Melbourne cement facility’s new 45,000t silo at Port Melbourne, which will enhance Independent Cement and Lime’s ability to service the Victorian market.”

Adbri had previously considered buying Barro Group's cement assets, which included the remaining 50% stake in Independent Cement and Lime, in 2018.


Zimbabwe: Companies registered in Zimbabwe are now subject to a new penalty framework under which they will face a US$14,200 fine for failure to publish audited full-year accounts within 90 days of the end of the year. Additional fines will accrue at a rate of US$100/day for the subsequent 30 days or less, whereupon the regulator will take further action. Business Weekly News has reported that the Securities and Exchange Commission of Zimbabwe (SecZim) enacted the new rules after Lafarge Cement Zimbabwe failed to fully disclose its acquisition by Fossil Mines in December 2022.


Egypt: LafargeHolcim Egypt supplied 8200t of its ECOPlanet reduced-CO2 cement for construction of Alamein Downtown Towers in Alamein City. The producer said that the cement reduced the project's carbon footprint by 45% compared to ordinary Portland cement (OPC). The government contracted China-based China State Construction Engineering Corporation for construction of the five-tower development. Three of the buildings will be residential, while the remaining two will house business and events facilities.


India: The state of Himachal Pradesh will lose US$11.7m-worth of anticipated tax revenues in the first month of Adani Cement’s on-going closure of its Darlaghat and Gagal cement plants. In previous months, the 1.6Mt/yr Darlaghat cement plant paid US$3.29m/month in goods and services taxes, US$1.75m/month in electricity duties, US$1.45m/month in value-added tax (VAT) on diesel, US$640,000/month in mining royalties and US$363,000/month in goods carried by road and additional goods taxes. Meanwhile, the 4.4Mt/yr Gagal cement plant paid US$1.9m/month in goods and services taxes and mining royalties, US$1.57m/month in VAT on diesel, US$1.47m/month in electricity duties and US$701,000/month in goods carried by road and additional goods taxes.

The Tribune India newspaper has reported that, despite attending several rounds of talks with the state administration, Adani Cement has yet to signal any intention to resume operations at the plants. Both facilities have been closed since 15 December 2022.


Colombia: The Science-Based Targets Initiative (SBTi) has validated Grupo Argos Subsidiary Cementos Argos’ CO2 emissions reduction goals. Cementos Argos aims to reduce its Scope 1 and Scope 2 CO2 emissions in line with a well-below 2°C climate change scenario by 2030. Its strategy includes increasing co-processing of alternative fuel (AF), reducing its cement’s clinker factor, optimising its heat and electricity consumption, investing in cleaner technologies, increasing the share of renewable power it uses and diversifying its product range to include more low-carbon products.


Belarus: The Belarusian government has granted reimbursement of cement producers’ interest payments on loans from state-owned Belarusbank and Belarus Development Bank. PrimePress News has reported that banks will fund the payments from the 2023 national budget.

Belarusian Cement Plant will receive US$47.1m-worth of reimbursement for interest payments on three loans from Belarusbank worth US$42.8m, granted between 2009 and 2011. Krichevtsementnoshifer will receive reimbursement of US$137m on two loans from Belarusbank worth US$116m, granted in 2012. Krasnoselskstroymaterialy will receive reimbursement of US$1.1m on a loan worth US$211,000 from Belarus Development Bank. Additionally, it will receive reimbursement of US$72.1m for five loans worth US$34.9m from Belarusbank in 2009 – 2012.


Mexico: Cemex has extended its US$93.1m receivable securitisation programme with US-based Finacity. Contify Banking News has reported that Finacity will administrate the programme on Cemex’s behalf until mid-2025.


Philippines: Republic Cement has won seven awards at the Presidential Mineral Industry Awards 2023. The producer’s Bulacan cement plant won the Platinum Achievement Award, while its Batangas, Iligan and Teresa plants all claimed Quarry Operations (Non-Metallic) Awards. The Bulacan plant also won the Best Forest Mining Award in the Non-Metallic category, in which the Iligan plant was second runner-up. Lastly, Bulacan cement plant won the Safest Mine (Non-Metallic) Award.

Republic Cement’s CEO Roman Menz said "Throughout our 67 years of service towards building the nation, Republic Cement has always been deeply and wholly committed to responsible mining. It is through responsible mining and our daily commitment to safety and sustainability that we are able to support robust communities and a thriving environment, towards a greener and stronger republic."


Chad: Société National de Cimenterie (SONACIM) has placed an order with a China-based machine parts supplier for a part for its Baoré grinding plant’s generator. Alwihda News has reported that previously ordered the part from a supplier based in Egypt, which since failed to make the delivery. Cement production has been suspended at the plant since early July 2022, pending delivery of the missing part.

SONACIM’s deputy director general Koye Ndaye Benoît said “As soon as the part arrives, production will be restarted.”

430 people are employed in SONACIM’s operations in Chad.


Pakistan: All Pakistan Cement Manufacturers Association (APCMA) members despatched 21.8Mt of cement during the six-month period up to 31 December 2022, the first half of Pakistan’s 2023 financial year. The figure corresponds to a decline of 21% year-on-year from 27.5Mt during the first half of the 2022 financial year. Producers exported 1.73Mt of cement, down by 49% from 3.39Mt in the first half of the 2022 financial year.

The drop in sales was most pronounced in Southern Pakistan, where producers despatched 4.66Mt of cement, down by 31% year-on-year from 6.75Mt. Meanwhile, Northern Pakistani producers despatched 17.1Mt of cement, down by 17% from 20.7Mt.

An APCMA spokesperson said “The current economic turmoil has badly impacted on cement consumption. Inflation has played havoc with the pockets of consumers. New construction projects, including housing, are few in number, while routine maintenance of residential buildings has been postponed for better times.” They added “The Russia-Ukraine war has badly impacted cement exports too.”


France: Switzerland-based Holcim has acquired self-levelling screed producer Chrono Chape. Chrono Chape’s screeds create even foundations for builders to lay floors on. It serves its customers in France with a fleet of batching trucks.

Holcim’s Europe region head Miljan Gutovic said “I am excited to acquire Chrono Chape, as another step in advancing our Strategy 2025 – Accelerating Green Growth. With this operation, we will expand our range of services and geographic footprint in France. Building on the entrepreneurial vision and legacy of the Dupuy family, I look forward to investing in this business’ next era of growth and warmly welcoming their employees into the Holcim family.”


Australia: The Australian government’s Department of Climate Change is receiving public comments on Cement Australia subsidiary Cornwall Coal’s plans to open a new coal mine in Tasmania’s Fingal Valley, near St Mary’s. Local press has reported that the proposed site will operate across three open pits, with a total area of 26ha. The mine will replace the company’s nearby Cullenswood coal mine when it runs out of coal later in 2023, and will operate until 2026 or 2027. Cornwall Coal’s Tasmanian operations currently supply coal for Cement Australia’s Railton cement plant, as well as other local industrial sites.

Under Cornwall Coal’s proposals, the company will build travel culverts for local wildlife, and assist in relocating animals currently occupying the site. Tasmanian devils and two species of quoll – all endangered – live on the land in question.

Mick Tucker, head of Break O’Day Municipality Council, said that the municipality currently depends on Cornwall Coal’s operations for 60 – 80 jobs. He said that the company’s plans have strong support in the local community.


India: Ambuja Cements has launched its new marine logistics subsidiary Ambuja Shipping Services. The Adani Group subsidiary has injected US$121,000 in paid up capital into the business. Ambuja Shipping Services’ headquarters are situated in Ahmedabad, Gujarat.