Global Cement Newsletter

Issue: GCW644 / 31 January 2024

Headlines


There have been two major announcements in the cement sector this week. The first was that Holcim is preparing to divest its business in the US via a spin-off and full capital market separation. The second was that FLSmidth is thinking about selling its cement equipment business. Both stories are huge so we will cover them both. This week we will focus on FLSmidth and Holcim will follow next time.

Both news stories came as something of a shock. Yet FLSmidth’s plans were not surprising given the divestment of MAAG gears and drives business earlier in January 2024 and several years of tough trading conditions in the sector generally. Yet, as one commentator on the Global Cement LinkedIn Group put it, it feels like “the end of an era.”

First a little history. FLSmidth has been in business for over 140 years and has been indelibly linked to the cement market throughout this time. Its first big cement order was in 1887, it built its own plant in Aalborg in 1889 and it started selling rotary kilns in 1899. By 1957, at the time of its 75th anniversary, it was estimated that 40% of the world’s cement was manufactured in equipment supplied by FLSmidth. Many other advancements and milestones followed but signs of the modern business’ focus on mining can be detected in the acquisition of US-based Fuller Company in 1990, the sale of Aalborg Portland in 2002 and the purchase of ThyssenKrupp Industrial Solutions’ mining business in 2021.

FLSmidth described its reasoning for a potential divestment of its cement business and focusing on mining as follows: “our industries, and in turn, the appropriate operating models which best serve them, have diverged. Consequently, combining our two organisations under one ownership is now forcing more operational friction than benefit.” It took pains to state that it hopes to sell its cement business in one piece whereupon it can continue to grow under new ownership and “maximise its full potential.”

FLSmidth’s strategy for selling its cement equipment business appears to have taken the form of separating out the cement business, making it look as strong as possible and then publicly announcing that it is “exploring divestment options.” This is different from many other corporate divestments that only become public once a deal with a prospective buyer has been secured. FLSmidth has been preparing for a potential divestment of the division internally through its ‘pure play’ strategies and focusing more recently on product, services and technology rather than project risks. It said that the MAAG sale had shown it that there was interest in buying the cement business. However, no potential buyers have been disclosed at this time. In a conference call the company said that it was hoping for five to 10 interested parties and it would expect these to be either industrial buyers or financial entities.

One of the callers homed in on the attempts by ThyssenKrupp to sell the cement division of its subsidiary ThyssenKrupp Industrial Solutions (TKIS) in 2020 following a restructuring drive. It changed its mind in 2021 and ended up selling its mining division to FLSmidth instead. In response to any comparison, FLSmidth asserted that it was preparing to sell a significantly different asset to TKIS, not least due to its careful steering away from project-based risk.

The wider business backdrop to this decision has been the rise of the Chinese cement sector since the late 1990s, persistent global production overcapacity, the setting of net zero CO2 emission targets globally and, more recently, logistic and economic shocks arising from the Covid-19 pandemic and geopolitical events. New cement production line projects are now frequently managed by China-based equipment suppliers in many territories, with the exception of North America. It is worth noting here that some of the largest China-based cement equipment suppliers are subsidiaries of the government. The Chinese government has also supported the construction of new plants outside its borders through its Belt and Road initiative. Protectionist investment policies implemented by western governments to support industry transitioning to net zero is in part a response to this in the general economy. Cement equipment suppliers from outside of China can and do build lines on a regular basis but they tend to concentrate on parts of plants, such as mills, or specific technologies and services. FLSmidth is a good example of this transition with its renewed focus on the green transition.

The decision by FLSmidth to consider selling its cement business marks another sign that the cement industry is changing. The transition to net zero puts Europe-based suppliers in a good position given that the region is currently leading with carbon capture projects. A retrofit boom for cement plants (and customers) being made to pay for CO2 emissions could change the dynamic for the cement equipment sector as the focus shifts from building kilns to capturing CO2. And companies like FLSmidth are well placed to benefit from this. Then again it may just end up being business as usual. Either way, any eventual change in the ownership of FLSmidth’s cement division does indeed mark the end of an era.

Next week: Holcim’s plans in the US


India: The National Council for Cement and Building Materials (NCCBM) has appointed Neeraj Akhoury as its chair following a meeting of the board of governors. Akhoury is also the president of the Cement Manufacturers’ Association and the managing director Shree Cement, according to the Press Trust of India. He holds over 30 years experience in the cement and steel sectors with positions held at Tata Steel, Lafarge India, LafargeHolcim, ACC, Ambuja Cements and Shree Cement in countries including India, France, Nigeria and Bangladesh.

The NCCBM is a research and development organisation under the administrative control of the Department for Promotion of Industry and Internal Trade that is in turn run by the Ministry of Commerce & Industry.


Türkiye: Osman Nemli has resigned as the general manager of Bursa Çimento. No reason for his departure has been disclosed. He had been in post for eight years according to local media. Barbaros Onulay, the head of subsidiary Bursa Beton, will act as the general manager until the company’s board of directors appoints a replacement.


India: Hemadri Cement has appointed G Ohm Prakash as its chief executive officer (CEO). He holds over 10 years of professional experience in marketing and sales roles across the cement, real estate, media and travel sectors. He holds a postgraduate qualification in Brand Advertising Management from the Indian Institute of Management in Tiruchirappalli.

Hemadri Cement operates a cement plant at Jaggayyapet in Andra Pradesh. The plant was originally commissioned in 1985.


Mexico: GCC’s consolidated sales rose by 17% to US$1.36bn in 2023. The group raised its sales by 30% in Mexico and by 12% in the US, with its regional cement volumes rising by 2.2% and 5.2% respectively. GCC’s earnings before interest, taxation, depreciation and amortisation (EBITDA) also grew, by 31%, to US$472m.

Chief executive officer (CEO) Enrique Escalante said "GCC had an outstanding performance during 2023, achieving year-on-year growth in both top and bottom line. Our record-breaking financial performance was driven by strong client relationships and operational excellence." Looking to 2024, Escalante added "Our focus on executing strategic initiatives and enhancing competitive advantages will fortify our margins, aligning our vision for continued success with our commitment to sustainability."


India: Nuvoco Vistas recorded revenues of US$943m in the first nine months of the 2024 financial year (1 April – 31 December 2023). This represents a rise of 2% year-on-year from the corresponding period of the previous financial year. This enabled Nuvoco Vistas to turn a positive net income, of US$5.66m, compared to a loss of US$22.3m one year previously. Premium products constituted 1.45Mt (36%) of the producer’s total third-quarter cement sales of 4.02Mt. Nuvoco Vistas ended 2023 with 25Mt/yr in installed production capacity, making it India’s fifth largest cement producer.

Managing director Jayakumar Krishnaswamy said “Despite the challenging demand environment, the company continues to deliver strong growth in earnings before interest, taxation, depreciation and amortisation (EBITDA). During the third quarter of the 2024 financial year, we achieved the highest EBITDA per tonne in 10 quarters, a testament to our operational excellence, focussing on cost efficiency and value-led growth.”


India: Nuvoco Vistas has commissioned a 1.2Mt/yr cement mill at its Haryana Bhiwani cement plant in Haryana. This expansion will help Nuvoco Vistas to raise its production volumes in Northern India and to diversify its product offering.

Managing director Jayakumar Krishnaswamy said “We are set to seize the opportunities. We continue to emphasise quality and innovation, and secure a larger market share in the North while retaining our leadership position in the East. On the ready-mix concrete end of the value chain, we have also commissioned five new plants in the current fiscal, bringing our total to 56 plants pan-India.”


Denmark: FLSmidth has discussed its decision to sell FLSmidth Cement. The company said that the cement and mining industries it serves have diverged, along with the appropriate operating models which best serve them. The continuing combination of FLSmidth Cement and FLSmidth’s mining business now presents ‘more operational friction than benefit.’ The supplier took ‘careful consideration’ of the best interests of all parties affected by the separation.

FLSmidth built its first cement plant in 1887, and pioneered the use of optimisation software in 1969. The FLSmidth Cement digital leadership team will now focus on delivering cement-specific smart and connected services for its customers.

FLSmidth Cement president Christopher Ashworth said “We have proven our ability to embrace change, and the prospect of new ownership will be no different. Working together as a team, we will ensure continued success by staying focused on our customers. Furthermore, our core mission remains: driving the green transition with both new technologies and helping existing plants optimise their operations.” Ashworth added “FLSmidth made its name as a full flowsheet provider of cement plants. It is a history that we value and will continue to build on. But today’s cement market is a vastly different world with vastly different challenges than what has gone before. It therefore requires a different operating paradigm that moves away from a projects-based approach to focus on specific products and services. The pure play strategy thus frees us to adapt to the specific market challenges facing our industry and prioritise the supply of core offerings. The prospect of operating under new ownership only reinforces our current transition.”


Kyrgyzstan: The state-owned Bishkek heat and power plant has secured a US$437,000 contract to supply its waste ash and slag to two cement plants in Kemin, Chüy Region. The cement producers party to the contract will be responsible for extraction and transport, commencing in August 2024.

The Bishkek heat and power plant has previously invested US$280,000 in clearing its waste dump. The government says that it has also received interest from a China-based autoclave aerated concrete blocks producer in its waste.


Switzerland: Holcim has appointed Miljan Gutovic as its new CEO, effective 1 May 2024. Gutovic will replace Jan Jenisch, who will continue in his role as chair, for which he is set to stand for re-election at the group’s upcoming 2024 Annual General Meeting. Jenisch is also tasked with leading the planned US listing of Holcim's North American business.

Miljan Gutovic has served on Holcim’s Group Executive Committee since 2018, including as its regional head of Middle East and Africa, regional head of Europe and head of operational excellence. Holcim said that Gutovic’s area leadership helped to strengthen its market positions and deliver industry-leading margins. He also succeeded in advancing decarbonisation as a driver of profitable growth. Prior to joining Holcim as head of marketing and innovation in March 2018, Gutovic spent 12 years with construction chemicals producer Sika, where he became area manager Sika Middle East in January 2016. Gutovic has a civil engineering background and holds a PhD in Engineering from the University of Technology Sydney, Australia.

Jan Jenisch said "I am very pleased that the board has appointed Miljan as the new CEO of Holcim. He is a highly qualified successor who has played an instrumental role in Holcim’s successful transformation to become the leader in innovative and sustainable building solutions. Miljan has strengthened our business with record profitability in Europe, closing strategic transactions and building winning teams. I am honoured to stand for re-election as the chair of the board and to lead the planned US listing of Holcim’s North America business. I will continue to dedicate all my efforts to the future of Holcim and all our stakeholders.”

Miljan Gutovic said "I thank the board of directors for trusting me to lead Holcim into its next chapter of success. As a civil engineer who is passionate about the construction industry, Holcim is the best company to be part of. With decarbonisation and advanced technologies transforming how we build, there has never been a more exciting time for our sector. I look forward to working with the Holcim teams around the world to advance our leadership.”


Germany: Heidelberg Materials has launched EvoBuild, a new brand for its range of low-carbon and circular products. It intends to apply globally consistent criteria and tiering for its sustainable products and aims to set new standards for decarbonised products. All countries in which the company is present will gradually integrate their sustainable products into the EvoBuild portfolio.

Dominik von Achten, chair of the managing board of Heidelberg Materials, said “After rolling out our new corporate brand Heidelberg Materials in more than 20 countries, harmonising our strong sustainable product portfolio on a global level is the next logical and important step.” He continued, “We recently introduced our EvoZero brand for the world’s first carbon captured net-zero cement. Now, we are adding EvoBuild to the Evo brand family with a new framework for all products that are characterised by their special contribution to carbon reduction and circularity. This also reflects the strong focus of our business activities on sustainable solutions for our customers.” Nicola Kimm, the chief sustainability officer at Heidelberg Materials added that creating the brand was, “an important step towards achieving one of our key targets on the way to net zero as we aim to generate 50% of our revenue with sustainable products by 2030.”

Products in the EvoBuild range will be available in all business lines and are either low-carbon (cement and concrete), circular (concrete) or feature a combination of both attributes. Low-carbon products must provide a CO₂ reduction of at least 30% compared to the reference value. Circular products must contain at least 30% recycled aggregates, or they must reduce material requirements by at least 30%.


China: China National Building Material (CNBM) expects to record a 65% year-on-year drop in its profit in 2023. This would correspond to a figure of US$393m, against a reported profit after tax of US$1.12bn in 2022. Reuters has reported that CNBM partly attributed the anticipated drop to low cement prices and changes in the fair value of its assets.


Denmark: FLSmidth says that its plans to sell its cement business. The business provides FLSmidth’s processing equipment and services for cement plants around the globe. FLSmidth will now explore its possible divestment options in order to ‘maximise’ the business’ ‘full potential,’ while also serving to strengthen the supplier’s remaining mining business’ market-leading position in its sector.

Chair Tom Knutzen said “I am truly proud of what we have achieved with our cement business for more than 140 years. I firmly believe the business is well positioned for future success and that it has a significant role to play in the decarbonisation of cement. However, when reviewing the long-term options for FLSmidth as a business, for our customers and for our shareholders, we have concluded that a separation of ownership could be beneficial for both the mining and cement businesses. Unlocking the full potential of the cement business requires substantial investments and dedicated management attention, which we believe will be more easily achieved under a different ownership than FLSmidth’s.”

Chief executive officer Mikko Keto said “Our cement business has shown robust performance and good strategic progress over past years. This gives me great comfort in the cement business’ ability to continue its positive journey, also – and maybe even more so – under another ownership than FLSmidth’s. We have a clear ambition of further strengthening our market-leading position in mining, and we see tremendous long-term opportunities for the business backed by strong industry fundamentals and a positive long-term market outlook. Consequently, today’s decision of exploring divestment options for our cement business constitutes a key step in unlocking the full long-term potential of both the mining and cement businesses.”


Denmark: FLSmidth's cement business recorded preliminary, unaudited sales of US$871m in 2023, down by 59% year-on-year from US$2.14bn in 2022. The business contributed 25% of the group’s consolidated sales of US$3.5bn. FLSmidth had a total order intake for the year of US$3.11bn, toward which the cement business contributed US$711m (23%). The supplier said that its results were in line with guidance. It now expects its cement business to generate US$580 – 653m (19 – 23%) of total group sales of US$2.9 – 3.12bn in 2024.

FLSmidth said “We expect the short-term outlook for the cement industry to remain impacted by macroeconomic uncertainty. The guidance for 2024 reflects the ongoing execution of the GREEN’26 strategy, continued business simplification and product portfolio pruning, including the expected closing of sale of the MAAG gears and drives business during the first quarter of 2024.”


Türkiye: Titan Cement International (TCI) has acquired concession rights to the Vezirhan pozzolana quarry in East Marmara. The quarry will help TCI to expand its low-carbon cement production capacity. By 2030, the company aims to reduce its CO2 emissions by 35% from 1990 levels, and include 50% green products in its portfolio.

Titan Group Eastern Mediterranean regional director Christos Panagopoulos said “Access to Vezirhan quarry’s strong reserves potential and high-quality material will allow Titan to further broaden the portfolio of low-carbon cementitious products available to its customers. The quarry has access to a deep port and railway transport, facilitating both land and seaborne distribution across Titan's global locations.”

Group chief sustainability and innovation officer Leonidas Canellopoulos said “Being future-ready for a net zero world is more than just an ambition for Titan, and the acquisition of concession rights in Vezirhan is part of our solid roadmap that entails over 100 initiatives, covering the entire scope of our geographic operations and span of our value chain.”


Spain: Cementos Portland Valderrivas' Alcalá de Guadaíra plant has secured environmental clearance to use more alternative raw materials and alternative fuels (AF) in its cement production.

The company said "This achievement is a further boost to our sustainable work practices, respecting the environment and contributing to combatting climate change."


North America: Holcim has announced plans for a full capital market separation of its North American business. Subject to shareholder approval, it will subsequently list the business in the US in the first half of 2025. The group will communicate the final structure of the separation, which it expects to execute as a spin-off, later in 2024. Reuters has reported that Holcim chair and chief executive officer Jan Jenisch said that the North American business may attract a valuation of US$30bn upon listing, with Holcim retaining no stake. The business recorded an estimated earnings before interest, taxation, depreciation and amortisation (EBITDA) margin of over 27% in 2023. Following the US listing of the business, Holcim itself expects to continue its inclusion in the Swiss Market Index in Switzerland.

Jenisch said “Holcim has reached a new level of financial performance and a superior earnings profile with industry-leading margins and a strong balance sheet. The success of our North American business makes it the leading pure-play building solutions company in the region. With a US listing, we will unleash its full potential to be the partner of choice for our customers in one of the world’s most attractive construction markets. As we fully capitalise on the region’s infrastructure and construction boom, we will accelerate growth and unlock value for our stakeholders.”


Germany: Heidelberg Materials will stop producing clinker at its 700,000t/yr Hanover cement plant in Lower Saxony later in 2024, and transition the plant to grinding-only. The producer took the decision following a ‘significant drop’ in its cement sales, amid local low construction activity and a market shift towards lower-cement materials. Nonetheless, it intend to raise its capacity utilisation at its 1Mt/yr Ennigerloh, 900,000t/yr Geseke and 400,000t/yr Paderborn cement plants in neighbouring North Rhine-Westphalia. These will supply clinker to the Hanover grinding plant in future. Heidelberg Materials says that the plant's strategic location will ensure its continued importance in regional cement supply. Part of the 120-strong workforce at the Hanover plant will remain at the new grinding plant. The company will collaborate with the works council to find ‘acceptable solutions’ for the remainder of the team, possibly including intra-group transfers to other divisions and locations.

The Calix consortium’s on-going LEILAC 2 carbon capture project will now move from the Hanover plant to another Heidelberg Materials plant. Australia-based Calix is collaborating with Heidelberg Materials to identify a suitable new site as quickly as possible.


India: Aditya Birla subsidiary UltraTech Cement has commissioned its new 2.6Mt/yr Rajpura grinding plant in Punjab. The producer says that it made the investment in order to enhance its service to markets in Punjab.

The Rajpura grinding plant raises UltraTech Cement's installed grey cement capacity in India by 2% to 135.59Mt/yr.


Saudi Arabia: China National Building Material (CNBM) subsidiary Sinoma CDI has won a US$6m contract to upgrade cement and raw materials conveyors at Riyadh Cement Company’s Riyadh cement plant. The producer has opted for elevator conveyors for mechanical transportation, in place of its existing pneumatic conveyors. It expects this to increase energy efficiency and reduce necessary maintenance. The project is due for delivery in early 2025.

Riyadh Cement Company CEO Shoeil Al-Ayed said that the project aligns with the producer’s strategic energy reduction initiatives.


UK: Aggregate Industries has successfully removed gas duct sections from the electrostatic precipitation filter at its Cauldon cement plant in Staffordshire. This will make way for the installation of a new CTP Team process kiln bag filter, following an annual shutdown.

Cauldon plant capital expenditure manager Mark Powling said “The new bag filter not only provides the best available technology, but will enable the Cauldon plant to optimise its plant performance, driving its decarbonisation and alternative fuel strategies. Thanks to the project team for their efforts and hard work to date.”


India: ACC grew its sales to US$1.75bn in the first nine months of the 2024 financial year, up by 12% year-on-year. Its net income multiplied by a factor of five, to US$167m.

Mint News has reported that whole time director and CEO Ajay Kapur said "ACC’s financial performance has seen a complete turnaround in the last 12 months. Recent capacity additions have taken the Adani Group’s cement capacity to 77.4Mt/yr. This will enable volumes and revenues growth on a sustainable basis." Looking to the full 2024 financial year and beyond, Kapur added “Purchases of low-cost petcoke will help to further optimise fuel costs in the coming quarters."


Rwanda: South Africa-based PPC has completed the sale of its 51% stake in the Rwandan cement producer to Kenya-based Devki Group subsidiary National Cement, for US$42.5m. The divestiture advances PPC's strategic exit of Central and East Africa. As a result, the group's financial position is now cash positive. It had previously reduced its debt by 50% to US$20.3m from US$40.7m between March 2020 and September 2023.

PPC CEO Matias Cardarelli said "I am pleased with the timely completion of the sale of our stake in Cimerwa. The disposal allows us to focus on our core Southern African markets, where we see opportunities to drive improved profitability and secure a more sustainable return on capital."


Italy: Utilities provider Snam says that it has begun selecting partners for its upcoming Ravenna carbon capture and storage (CCS) transport network. The network will connect hard-to-abate industrial facilities in Ravenna with 500Mt of CO2 storage space in the Mediterranean Sea. The total cost of infrastructure for the project is Euro350m.

CEO Stefano Venier said "The cement industry will be a central partner in this project. A partnership with Heidelberg will be announced in a few days."


US: Portland Cement Association (PCA) chief economist and senior vice president of market intelligence Ed Sullivan forecast a recovery of the US economy in the second half of 2024 at the World of Concrete conference in Las Vegas, Nevada. However, Sullivan told attendees that the economy will ‘gradually weaken’ in the first half of the year. The anticipated weakening is compounded by the end of Covid-19 relief programmes, delayed monetary policy effects and credit tightening. Supporting growth throughout the year are some of the US$550bn infrastructure investments under the Infrastructure Investment and Jobs Act. The US government says that 40,000 new projects under the act are either in progress or completed.

Ed Sullivan said "In terms of the construction outlook, there will be a battle between interest sensitive construction sectors and less interest sensitive construction activity such as infrastructure spending and the construction of large manufacturing plants associated with the CHIPS and Science Act."


Azerbaijan: Cement production in Azerbaijan increased by 4.6% year-on-year to 3.73Mt in 2023, data from the State Statistics Committee has shown. Clinker production rose even more sharply, by 37%, to 3.87Mt. BNI IntelliNews has reported growth of 32% year-on-year in the overall value of building materials in 2023, to US$694m.


Brazil: Votorantim Cimentos plans to invest US$1bn in expanding its Brazilian operations in the period up to the end of 2028. US$304m-worth of the investments are already underway at the start of 2024. Reuters has reported that the investments include cement plant projects to raise Votorantim Cimentos’ Brazilian cement production capacity by 8.8% to 37Mt/yr. These include a US$162m investment in a 20% capacity expansion to its Votorantim cement plant and a US$60.8m, 1Mt/yr expansion to its Salto de Pirapora plant. Further aims are to ensure structural competitiveness, raise energy efficiency and digitise operations, including applying artificial intelligence (AI) to freight. The producer expects its earnings before interest, taxation, depreciation, and amortization (EBITDA) to eventually rise by US$263/yr between 2023 and 2028 as a result.


US: Eagle Materials recorded sales of US$1.78bn in the first nine months of the 2024 financial year. This corresponds to a rise of 6.2% year-on-year from the corresponding period of the 2023 financial year. The producer’s heavy materials sales rose by 18% to US$889m, and its cement sales volumes rose by 2% to 6Mt. As a result, Eagle Materials raised its net earnings by 11% to US$401m.


China: China Shanshui Cement expects its full-year loss to exceed US$120m in 2024. Reuters has reported that the producer attributes the anticipated decline to a ‘substantial’ drop in cement sales prices.


India: Dalmia Bharat's consolidated sales were US$433m in the third quarter of the 2024 financial year (1 October – 31 December 2023), up by 7.3% year-on-year. This was in part due to an 8.1% rise in the company’s cement sales volumes, amid a nationwide infrastructure spending drive. Its net profit rose by 22% year-on-year to US$32m. The producer partly attributed this to a market correction in the price of raw materials. Premium products accounted for 21% of Dalmia Bharat’s cement sales during the quarter.

Managing director and CEO Puneet Dalmia said “While we believe that margins may improve further from here on, our focus for the next 12 – 15 months will remain on improving our capacity utilisation and delivering industry-leading volume growth.”


UK: Aggregate Industries has engaged energy engineering firm Petrofac to investigate a carbon capture project at its Cauldon cement plant. Petrofac is currently conducting early engineering assessments to identify CO2 capture opportunities at the plant in Staffordshire. This includes technology selection for any future project. Upon commissioning, a carbon capture system will support the storage of up to 600,000t/yr of CO2 from the Cauldon cement plant under the Irish Sea as part of the cross-industry Peak Cluster carbon capture and storage (CCS) project.

Aggregate Industries decarbonisation manager Luke Olly said "Aggregate Industries is excited to be launching this carbon capture study, as we are aiming to fully decarbonise our cement plant by 2030. This technology is an important part of our strategy."

Petrofac head of business development energy transition projects, Alex Haynes, said "We’re looking forward to working with Aggregate Industries UK in finding a way to reduce the carbon footprint of its cement products."


India: Sagar Cements recorded sales of US$80.5m in the third quarter of the 2024 financial year, up by 16% year-on-year from US$69.3m during the corresponding quarter of the previous financial year. Cement sales volumes rose by 14% year-on-year. The Hindu BusinessLine News has reported that the growth allowed Sagar Cements to reduce its net losses by 57%, to US$1.22m.

Managing director Sreekanth Reddy said “Favourable prices prevailed in our key markets. As far as EBITDA and margins are concerned, we observed a significant enhancement on a per-tonne basis, consistent with our earlier projections.” Reddy added “We anticipate this positive trend to persist in the future, supported in part by higher utilisation levels of recently-acquired units and strategic initiatives aimed at promoting the use of green power, alternative fuels and the deployment of electric trucks and wheel loaders.”