Global Cement Newsletter

Issue: GCW689 / 11 December 2024

Headlines


Suvo Strategic Minerals said this week that it had made moves towards establishing a joint-venture between a subsidiary and the Huadi Bantaeng Industry Park (HBIP). The plan is to manufacture and sell low-carbon cement and concrete products that contain nickel slag and other byproducts. This news story is noteworthy because of the location of HBIP in South Sulawesi, Indonesia.

In a release to the Australian Securities Exchange Suvo explained that HBIP is the managing company of the Bantaeng Industrial Park, where ‘significant’ quantities of nickel slag are stockpiled as part of the local nickel pig iron operations. HBIP will supply the nickel slag to the joint-venture. It will also give it access to infrastructure such as land, port facilities and utilities. Suvo subsidiary Climate Tech Cement, for its part, will supply the low carbon cement and or concrete mixtures and/or formulations. This follows the signing of a memorandum of understanding in September 2024, in which the companies agreed to process the nickel slag into geopolymer cement and precast concrete materials.

At first glance Indonesia seems like an unlikely place to market a low-carbon cement or concrete product, given the large cement production overcapacity in the country. The Indonesian Cement Association (ASI) reported a production capacity of just under 120Mt/yr in 2024 and forecast a utilisation rate of 57% in November 2024. However, the government seems serious about reaching net zero by 2060 as the country’s economy develops. The ASI updated its decarbonisation roadmap in 2024 and the draft is currently under review with the Ministry of Industry and consultants from the Bandung Institute of Technology (ITB).

In the latest roadmap, carbon capture is at least a decade away, with the first large-scale capture tentatively anticipated from 2035 onwards. Although Indonesia launched its carbon trading scheme in 2023, it is not expected to start affecting the industrial sector until the late 2020s. Instead, the short-to-medium term Scope 1 reduction methods include increasing the use of alternative fuels, reducing the clinker factor of cement and reducing and/or optimising the specific thermal energy consumption of clinker. Initiatives such as Suvo’s joint-venture in South Sulawesi tie into that middle strand. Separately, over the summer of 2024 the government and producers said that they were working together to introduce and promote the use of Portland composite cement (PCC) and Portland pozzolana cement (PPC). At this time the ASI reckoned that a complete change could cut cement sector emissions by just over a quarter. In June 2024 local media also reported that ASI members were planning to supply low-carbon cement for the Nusantara capital city project to help it realise its aims as a ‘green city.’

Semen Indonesia, the country’s largest producer, reported a clinker factor of 69% in 2023 for all of its cement products, down from 71% in 2021. Limestone was the biggest substitute followed by trass and gypsum. It is currently aiming for a clinker factor of 61% by 2030. In its Sustainability Report for 2023 it said that it was promoting the use of non-OPC (Ordinary Portland Cement) cement “...according to the needs of construction applications.” It added that non-OPC products also had a “...5 - 15% more economical price.” However, the company has not said how its current sales are split between OPC and other products.

One of the surprises at the 26th Technical Symposium & Exhibition of the ASEAN Federation of Cement Manufacturers (AFCM), that took place in Kuala Lumpur in November 2024, was the sheer amount of work that has been going on outside of Europe and North America towards decarbonising building materials. The cement associations of Indonesia, Malaysia and Thailand all presented progress and targets towards this aim at the event. Suvo Strategic Minerals’ joint-venture plans in South Sulawesi are another example of this trend.

Closing points to note about the Suvo project are firstly that it is away from Indonesia’s main cement production area in Java. Secondly, the presumption is that the low-carbon cement and concrete products manufactured by the project will either be cheaper than the competition or benefit from green procurement rules. Finally, nickel slag reserves seem insufficient to reshape the entire national cement market. Yet a general move towards using more supplementary cementitious materials could. Watch this space for more developments.

Read a review of the 26th Technical Symposium & Exhibition of the ASEAN Federation of Cement Manufacturers (AFCM) in the forthcoming January 2024 issue of Global Cement Magazine


China: Ji Youhong has retired as the chair of China Resources Cement as he has reached retirement age. He has also stepped down as an executive director, the chair of the company’s strategy and investment committee and the chair of its nomination committee. CEO Jing Shiqin will chair the board on an interim basis until a successor is appointment.

Ji was appointed as the chair of the board of China Resources Cement in 2022 and an executive director in 2016. He originally joined the group in 2003 and has worked in various positions including the general manager of various cement and concrete subsidiaries, the marketing controller from 2008 to 2012, the Regional General Manager (Guangxi) from 2012 to 2016, and the CEO from 2016 to 2023. JI holds a bachelor’s degree in engineering and a master’s degree in inorganic and non-metallic materials. He is currently the vice chair of the China Building Materials Federation and the executive vice chair of the China Cement Association. Previously he was the Vice President of the Eighth Council of the China Concrete and Cement-Based Products Association.


Ireland: CRH has appointed Alan Connolly as its Interim Chief Financial Officer (CFO). The move follows the appointment of Jim Mintern, the current CFO, as Group CEO from January 2025. Recruitment is ongoing for a permanent CFO.

Connolly is a chartered accountant who holds over three decades of finance experience working at CRH. He has held several senior finance roles across the company’s European and Americas businesses. He most recently worked as the Director of Strategic Finance. Prior to this he was the Finance and Performance Director of Europe Materials, CFO of Global Building Products and Director of Group Finance. Before working for CRH, Connolly was an auditor at KPMG.


Finland: Tana Oy has appointed Anu Söderena as Manager, Nordics & Baltics. Her responsibilities include leading and developing the sales and rental business of Tana Rental's machine portfolio, as well as coordinating maintenance and spare parts operations.

Söderena previously worked as a Business Development Manager at Kuusakoski Recycling, where she was responsible for managing a recycling plant investment project, among other roles. She holds a master’s degree in materials engineering and a master of business administration qualification.


Denmark: INEOS has announced the final investment decision to permanently store CO₂ from Danish emitters in the Nini oil field in the Danish North Sea. The company aims to begin operations by late 2025 or early 2026, creating the ‘EU’s first operational CO₂ storage facility intended to mitigate climate change.’

The project, Greensand Future, will start by storing 400,000t/yr of CO₂, with a potential to scale up to 8Mt/yr by 2030. CO₂ will be captured from Danish biomethane plants, liquified, transported to Esbjerg port and shipped to the Nini oil field for permanent storage. Investments will exceed US$150m to scale storage capacity.

Mads Gade, head of INEOS Energy Denmark, said “Last year we were the first in the world to succeed in developing a value chain for safe and efficient capture, transport and storage of CO₂ across national borders. Now we are proud to take the next step, building on the learnings from the pilot and aiming to deliver a fully operational commercial project by the end of 2025/early 2026.”


UK: Cemex and SUEZ Recycling and Recovery have celebrated the use of 1Mt of alternative fuel at Cemex’s Rugby cement plant since the adjacent SUEZ Malpass Farm facility opened in 2015. The partnership has reduced coal consumption at the plant by over 750,000t, alongside downstream CO₂ savings from supply chain emissions transporting and shipping coal on-site.

SUEZ processes non-recyclable materials at Cemex’s Rugby facility to produce Climafuel. The fuel is derived from sifted and shredded waste from local authorities and businesses in the Midlands, and is used to heat the kiln at the neighbouring Cemex plant. Ash from the Climafuel is also incorporated into clinker production.

Phil Baynes-Clarke, director of cement operations for Cemex UK, said “Since 2013, we have collaborated closely with SUEZ to produce Climafuel, a refuse-derived, non-fossil-based alternative fuel used to heat the kiln in the cement-making process. Over the past decade, Climafuel usage has steadily increased at our Rugby cement plant. Our ultimate goal is to operate the kiln with 100% alternative fuels, and we are getting close to this target.”


Portugal: Cimpor plans to invest €1.4bn in its Portuguese cement assets by 2030, focusing on infrastructure, technology and new products to address decarbonisation, described as the ‘number one challenge’ by CEO Cevat Mert, according to Noticias Financieras news.

In October 2024, Cimpor announced an investment of €360m in decarbonisation and innovation projects by 2026, including €180m allocated to its Alhandra plant in Lisbon. The company also aims to expand into more markets beyond the 14 it currently serves. It has invested €20-25m in a terminal at the port of Bristol in the UK, and has plans for France and the US. Ignacio Gomez, Cimpor’s commercial manager, cited this shift towards Europe and the US due to stricter environmental requirements.


Australia: Cement Australia, a joint venture between Heidelberg Materials Australia and Holcim Australia, will acquire the cementitious division of the Buckeridge Group of Companies (BGC) in Perth for US$800m, according to The Australian. The acquisition includes a cement grinding unit with ‘significant’ capacities, along with operations in cement, concrete, quarry, asphalt, transport and a materials technology centre. Cement Australia reportedly ‘fended off competition’ from Boral, Adbri and Mass Group in the process. BGC has stated that it retains a ‘significant’ business with about 1000 employees across its other sectors. The acquisition remains subject to regulatory approval, but is expected to close in the second half of 2025.


UK: Nuada and Carbfix have signed a memorandum of understanding to deliver integrated carbon capture and storage (CCS) solutions targeting emissions reduction in the cement, lime, steel, waste-to-energy and bioenergy sectors. The partnership combines Nuada’s carbon capture technology with Carbfix’s underground CO₂ mineralisation method.

Nuada’s technology uses solid sorbents, metal organic frameworks, and vacuum pressure swing adsorption to capture CO₂ from the source while addressing barriers like energy consumption and cost. Carbfix’s storage method accelerates the mineralisation process by injecting CO₂ into basaltic rock, where it reportedly transforms permanently into stone within two years.


Indonesia: Suvo Strategic Minerals has reached a non-binding agreement to form a joint venture (JV) with PT Huadi Bantaeng Industry Park (PT HBIP) to commercialise and manufacture low-carbon cement and concrete products that contains nickel slag and other byproducts. The JV will produce geopolymer cement and related products in Indonesia.

PT HBIP will supply nickel slag and other raw materials from its stockpiles at Bantaeng Industry Park and provide infrastructure, including land, port facilities and utilities like power and water. Suvo’s subsidiary, Climate Tech Cement, will deliver the low carbon cement formulations.

Aaron Banks, Suvo’s executive chair, said “The formation of this partnership is a key milestone for the company as it adds significant scale for potential future operations. The consumption of Portland cement within the broader region is around 300 - 400Mt/yr. Huadi, in alliance with other smelters, produce around 15Mt/yr of nickel slag. This partnership has the potential to lock in the necessary supply chains and give the company the best chance for success in delivering this low carbon cement to market.”

Banks also confirmed that Suvo has started preliminary offtake discussions for its low carbon cement product with ‘large users’ in Indonesia and Southeast Asia.


India: Adani Group has announced a US$750m investment in Rajasthan, with US$375m allocated over the next five years to green energy, cement production and infrastructure development. The group plans to add four cement units, increasing its total capacity by 6Mt/yr, according to BusinessWorld magazine.


Nepal: Construction activities in Nepal have been impacted as a result of private cement manufacturers raising prices, allegedly through cartelisation, according to Online Khabar news. According to Ravi Singh, president of the Federation of Contractors’ Associations of Nepal, contractors are struggling to purchase cement at the increased rates.

He said “On one hand, contractors have not been paid for completed projects, and on the other, rising cement prices have pushed many to consider halting construction altogether.”

He accused manufacturers of cutting production by up to 40% to create an artificial shortage, calling it “a tactic to manufacture scarcity and exploit the situation.”

Many contractors have already stopped purchasing cement at the new prices. Cement producers defended the price rise, claiming it corrects previous underpricing caused by ‘unhealthy competition’. The Department of Commerce, Supplies and Consumer Protection has held discussions with producers, giving them seven days to justify the price hike and submit their price lists.


Poland: Imports of Ukrainian cement to Poland are expected to rise from over 500,000t in 2024 to 1.5Mt in 2025, according to Ukraine Business News. Before the war, Ukraine consumed 12Mt/yr of cement, now reduced to 4Mt/yr, with the surplus exported mainly to Poland. Ivano-Frankivskcement, Ukraine’s largest producer, is currently expanding its capacity to 4Mt/yr, which could threaten the Polish cement industry.

The Polish Cement Producers Association said “The uncontrolled cement flow from Ukraine is unfair competition, since its producers do not bear the EU’s climate policy costs. Therefore, we cannot compete with Ukrainian imports.” It demands limiting duty-free imports to the average level of the past three years during the 2025 EU-Ukraine trade agreement review.


Germany: Claudius Peters has launched its Eta 5.0 clinker cooler. According to the company, Eta 5.0 offers energy savings, lower maintenance downtime and reduced environmental impact. It also features efficiency improvements, such as a new low-pressure-drop system and reduced friction in the transport system. The new cooler can be retrofitted to existing installations with minimal intervention.


India: The Rural Development Department of Himachal Pradesh has signed a memorandum of understanding (MoU) with Ambuja Cements to address the issue of non-recyclable plastic waste in the state. Under this partnership, Ambuja Cements will collaborate with the department to co-process non-recyclable plastic in its cement kilns. The initiative will cover the districts of Chamba, Kangra, Shimla and Solan, where 29 plastic waste management units have been established.


Sweden: NovaAlgoma Cement Carriers has placed an order for Climeon’s organic rankine cycle (ORC) waste heat recovery technology, HeatPower 300, to be installed on a new methanol dual-fuel cement carrier. The HeatPower 300 unit will generate up to 300kW of electricity on board the carrier by harnessing residual heat from the engine cooling water and exhaust gases to reduce fuel consumption and emissions.


Vietnam: Vietnam produced 167Mt of cement in the first 11 months of 2024, up by 3% year-on-year, according to the latest data from the General Statistics Office (GSO). In November 2024, the country’s cement output increased by 12% year-on-year to 17.2Mt, according to the GSO. In 2023, Vietnam produced 120.1Mt of cement, down by 5% year-on-year.


Mozambique: The closure of the largest cement plant in Sofala has led to an acute cement shortage in Beira, according to local news reports. Local retailers are now relying on two plants in Dondo, 30km from Beira, but these reportedly cannot meet demand, leading to a rise in prices by some sellers. The government’s Industry and Commerce sector has denied the existence of a ‘cement crisis’.


US/Switzerland: Holcim has made progress on the capital market separation of its North American business, planning a 100% spin-off to be listed on the New York Stock Exchange. An additional listing on the SIX Swiss Exchange is planned for European investors. The spin-off is subject to shareholder approval at the Holcim Annual General Meeting on 14 May 2025 and expects to occur by the end of the first half of 2025, subject to customary approvals.


Australia: Boral has launched upgraded ‘carbon-reducing’ technology at its Berrima Cement Works in the Southern Highlands region of New South Wales (NSW). The upgraded facility features a new chlorine bypass, which reduces the build-up of chlorides and other alternative fuel byproducts. This will reportedly enable alternative fuel usage to reach 60% over the next three years at the site, doubling its current substitution rate of 30%.


Tanzania/Kenya: Savannah Clinker has abandoned its US$198m bid to acquire Bamburi Cement, leaving Tanzania-based Amsons Group as the sole bidder with an offer of US$168m. The withdrawal followed the exit of Savannah Clinker’s financier, Global Infrastructure Finance & Development Authority, due to the arrest of chair Savannah Ndeta on suspicion of fraud and the Capital Markets Authority (CMA) declining a 60-day extension request.

A spokesperson for Savannah Clinker said "The withdrawal of the competing offer has been occasioned by the recent well-publicised arrest and indictment of the chair and main shareholder of Savannah, Benson Ndeta, which has led to the financier of the competing offer seeking additional due diligence. This is further compounded by the CMA’s decision to decline a request made on 2 December 2024 to extend the offer period by 60 days."


Kyrgyzstan: The Ministry of Economy and Commerce in Kyrgyzstan has initiated an anti-dumping investigation into cement imports from Kazakhstan and Uzbekistan. The investigation covers imports over the past three years amid a ‘sharp’ rise in import volumes, according to Kun.Uz news. Cement imports increased by 130% from January – September 2024, reaching 401,000t, with Kazakhstan exporting 269,700t of cement worth US$14.3m and Uzbekistan exporting 124,000t valued at US$9.2m. Uzbekistan’s cement exports increased from 1000t in 2023 to 123,000t during January – September 2024. The investigation aims to determine breaches of fair competition rules and protect Kyrgyz producers and the domestic market.


UK: Material Evolution has launched its 'ultra-low carbon' cement production plant, Mevo A1, in Wrexham. The facility was commissioned in October 2024 and operates on an industrial scale with a capacity to produce 120,000t/yr of its MevoCem product, which the company claims can achieve up to 85% emissions reductions compared to ordinary Portland cement. The plant uses Material Evolution's alkali-fusion process that doesn’t require heat or a kiln, producing a cement capable of undergoing geopolymerisation.

Sam Clark, co-founder and chief operating officer said "This launch takes us one step closer to achieving our goal of removing one gigaton of CO2 by 2040."


India: Star Cement has said that it plans to expand its capacity by an additional 2Mt/yr through a greenfield project in Silchar at a cost of US$47.2m. The expansion is expected to be completed within the next two years.

This announcement comes after Star Cement dismissed reports suggesting that Adani Group subsidiary Ambuja Cement had entered talks to acquire the company, as part of its strategy to expand its presence in the Northeast. According to the Economic Times, Star Cement labelled the claims as ‘speculative’ and clarified that ‘no such discussions are underway.’

Sanjay Agarwal, joint managing director of Star Cement, said “At a time when the building materials sector is growing, we are not looking to exit this business.”

Star Cement has a total installed production capacity of 7.7Mt/yr. Its operations include a 1.67Mt/yr integrated cement plant in Meghalaya and four grinding units.


Afghanistan: Al-Falah Al-Alami Company will build a new cement plant in Jabal Saraj, north of Kabul, with an investment of US$220m. The plant is expected to reduce Afghanistan’s dependency on imported cement. It is reportedly being built on a 120-hectare site and will create employment opportunities for around 5000 people. All raw materials required for cement production will be sourced locally.

According to a post on X by spokesman for the Islamic Emirate of Afghanistan, Mawlawi Zabihullah Mujahid, the Jabal Saraj cement plant will have the capacity to produce 5000t/day of cement or 1.6Mt/yr.


UK: Aggregate Industries has built a 45m high and 32m diameter airform dome silo at the Port of Tilbury in Essex. The silo is part of its new cement import, manufacturing and distribution facility, which is under construction. The inflatable structure will store up to 30,000t of cement to support demand for construction materials in the region. Aggregate Industries worked with US-based Dome Technology to inflate the dome. Contractor Dome Technology will now apply nearly 4500m³ of sprayed and wet mix concrete to form the dome silo.

The cement facility is expected to be operational in 2026.


Germany: Fluor has signed a front-end engineering and design (FEED) contract with Heidelberg Materials for its GeZero project to integrate an industrial-scale CO₂ capture and storage solution into its cement production facility in Geseke. Fluor will recognise the undisclosed contract value in the fourth quarter of 2024. It will be responsible for design integration of several decarbonisation technologies at the Geseke cement production facility. Construction is planned to start in 2026, with commissioning three years later.