Global Cement Newsletter

Issue: GCW692 / 15 January 2025

Headlines


Holcim revealed the board members for its proposed North America business this week. Former group CEO Jan Jenisch was confirmed as the designated chair and CEO. He will be joined by nine directors chosen from sectors including construction, manufacturing, industrial operations and financial services. Notably, current Holcim director Jürg Oleas will be joining Jenisch at the new company. He previously worked as the head of GEA Group and had senior stints at ABB and the Alstom Group.

The group’s decision to split its business in North America from that in the rest of the world has been presented as a piece of financial engineering designed to increase earnings, margins and increase the value of the business. Markets in the US and Europe have diverged in recent years, with the former growing and the latter slowing in comparison. Splitting the business should, in theory, allow both companies to grow at their own pace. However, the spin-off company in North America will remain linked to Europe as it will be listed at both the New York Stock Exchange and the SIX Swiss Exchange. The latter is for the benefit of European investors. The separation is expected by the end of the first half 2025, subject to shareholder and customary approvals.

Naturally, other companies are also chasing growth in North America. Titan Cement announced this week that its US-based subsidiary, Titan America, has filed a registration statement with the Securities and Exchange Commission as part of a proposed initial public offering (IPO). Yet, the company said that the offering is subject to market conditions. As such it couldn’t say when it might happen, how big it might be or much else. Back in May 2024 the group said it was going to list Titan America in the US to “...facilitate the group’s and Titan America’s future growth and unlock new opportunities.” The IPO was intended to be of a minority stake without creating any large-scale tax issues. At this time the transaction was planned to be completed in early 2025.

Titan’s sales share in North America has remained similar from 2018 to 2023 at around 55%. Holcim’s, by comparison, grew to 39% in 2023 from 22% in 2018. This is due to big acquisitions in the US such as Firestone Building Products in 2021 as it built up its lightweight building materials segment. The size of the two companies’ operations in North America are also different. Holcim reported net sales in the region of over US$11bn in 2023. Titan reported net sales of just under US$1.5bn.

Ireland-based CRH moved its stock market listings to the US earlier than both Holcim and Titan. It completed the transition of its primary listing to the New York Stock Exchange in mid-2023, although it too retains a listing in Europe, at the London Stock Exchange in its case. Yet analysts have started to wonder whether the company might spin-off its businesses outside the US. As reported by the Irish Times, Bank of America analysts reckon that the non-US parts of the company now represent only 16% of the US$82bn concern. For sanity’s sake this is still a US$10bn-plus sized company! Although other commentators did wonder why CRH might have bought assets in Australia in 2024 if it was seriously considering making changes on this scale anytime soon.

Despite all this attention on the US and North America by some of the multinational cement producers, it is worth remembering that markets change over time. Europe may not look so hot right now but it is unlikely to stay like this. The head of Heidelberg Materials, for example, said in early 2024 that his company wasn’t planning a split in the US because it was focusing on decarbonisation. This may prove prescient in the longer term if Europe sticks to its sustainability goals. FInally, the US isn’t the only place where cement companies are attempting to build their value in growth markets. It was also reported this week that JSW Cement had obtained approval from the Securities and Exchange Board of India to proceed with its IPO.


Czech Republic: Wikov Industry has appointed Michal Kurtinec as the CEO of its Wikov Gear division. Other personnel changes include the selection of Radovan Rašpl as the CEO of Wikov TurboGear and Jan Vosátka as the CEO of Wikov GearServices.

Wikov Industry has reorganised itself into two divisions following its acquisition of Litostroj Power in December 2024. Wikov Gear includes Wikov TurboGear (formerly Wikov Gear), Wikov MGI, Wikov Sázavan, GGT Gmeinder Getriebetechnik, Detail CZ, Pacific Rim Engineered Products, Wikov Gear Canada, Wikov - Wessex, Wikov Indigear and Orbital2. The main focus of this division is the development, production, assembly and service of mechanical gearboxes and precision CNC machining. Wikov Hydro includes Litostroj Power (Slovenia), Litostroj Engineering (Czech Republic), Litostroj Hydro (Canada) and Litostroj US (US). This division focuses on the design, manufacture and maintenance of hydro turbines, reverse pump turbines, valves, pumps and is a supplier of complete turnkey solutions for hydro power plants.


Türkiye: thyssenkrupp Polysius has appointed Ugur Kacar as Head of Middle East and Turkey / Services. He has also been selected as the general manager and a board member for the local subsidiary thyssenkrupp Polysius Türkiye.

Kacar has worked for thyssenkrupp and its subsidiary thyssenkrupp Polysius since 2018. He started as Account Manager – Cement in Türkiye before becoming the Head of Sales - Middle East and Turkey for thyssenkrupp in 2021. Prior to this he held maintenance and project management positions with Çimsa, Limak Cement and Çimko Çimento. He holds an undergraduate degree in mechanical engineering from Cukurova University in Adana and a master of business administration (MBA) qualification.


US: Oakland, California-based cleantech startup Brimstone has received a US Department of Energy grant worth up to US$189m to establish a plant with a capacity of 80,000t/yr of ‘green’ cement and 20,000t/yr of smelter-grade alumina, according to the San Francisco Business Times. The grant will be paid out in instalments and requires matching funds from new investments, loans and other sources.

The US$378m facility, which is still in the site selection phase, will be located near an existing quarry in order to mine calcium silicate rocks.

CEO Cody Finke said “We’re exclusively looking at brownfield sites. The goal is to build our own plant while utilising existing quarries to ensure a sustainable and economically viable operation.”

Brimstone plans to begin pilot operations in 2025 and aims to have the plant fully operational by the end of the decade. The company is currently testing its decarbonised cement with potential customers from its Oakland research and development facility.


US: The Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management has announced US$101m in funding for five projects to establish carbon capture, removal, and conversion test centres for cement plants and power facilities. The test centres aim to cost-effectively research and evaluate technologies to capture and convert CO₂ into products from utility and industrial sources, or by removing CO2 from the atmosphere. The initiative aims to reduce CO₂ emissions, promote sustainable technologies and create job opportunities.

Notable projects include the University of Illinois in Urbana, which plans to design a test centre to evaluate carbon management technologies for the cement industry, and Holcim US, which intends to establish a Cement Carbon Management Innovation Centre at its Hagerstown facility in Maryland.

Brad Crabtree, assistant secretary for Fossil Energy and Carbon Management, said “Carbon management technologies such as carbon capture can significantly reduce emissions from fossil energy use and key industrial processes, like cement production. By investing in test centres, we are helping reduce barriers to commercial-scale deployment of carbon capture, conversion and removal technologies that will ultimately help reduce pollution and create jobs.”


US/France: Hoffmann Green Cement Technologies has extended its licensing agreement with Hoffmann Green USA, signed in July 2024, to cover 25 states in the eastern United States. This has triggered an additional entry fee of €8m, following the €2m already received. The agreement grants industrial and technological transfer rights and exclusivity in the expanded territory. It includes fixed and variable royalties based on sales of Hoffmann Green cements. Hoffmann Green USA may also sub-license units in these territories, with discussions currently underway with potential sub-licensees.


Philippines: Aboitiz Upgrade Solar (AUSI), a joint venture between Aboitiz Power and Upgrade Energy Philippines, is building a ground-mounted solar facility at Republic Cement’s Norzagaray plant in Bulacan, according to The Philippine Star. Under the power purchase agreement, AUSI will fund and operate the project, while Republic Cement will exclusively purchase the generated power.

The facility is set to be completed in the second half of 2025, with capacity and project costs undisclosed.


Egypt: Misr Beni Suef Cement has signed a contract worth nearly US$6m with solar energy supplier IRSC, in cooperation with JINKO and HUAWEI, to establish a solar power plant at its site in Beni Suef Governorate.

The project aims to increase the company’s use of clean energy and reduce the environmental impact of its industrial operations. The capacity of the facility has not been disclosed.


China: CBMI Construction has officially launched a flash calcination clay project in Tangshan, Hebei province. Karen Scrivener, head of the Laboratory of Construction Materials at the School of Engineering at the Ecole polytechnique fédérale de Lausanne (EPFL), attended the event. Scrivener is a prominent researcher and advocate for LC3 (limestone calcined clay cement).

CBMI’s other clay projects around the world as a contractor include the SPL Calcined Clay Project in France, the CIZ Calcined Clay Project (rotary calciner) in the Czech Republic, the Guayaquil Calcined Clay Project in Ecuador and the Ivory Coast Calcined Clay Project (flash calciner).


US: Titan America, the US subsidiary of Titan Cement, has filed a registration statement for its proposed initial public offering (IPO) with the Securities and Exchange Commission. The company plans to list shares on the New York Stock Exchange (NYSE), including both primary and secondary sales, aiming to raise up to an estimated US$500m, subject to market conditions.


India: JSW Cement has received regulatory approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO) after a four-month hold-up since September 2024. The IPO includes a fresh issue of shares worth US$230m and an offer for sale by three shareholders, Apollo Global Management, Synergy Capital and State Bank of India (SBI), worth US$230m combined.

Proceeds from the fresh issue will include US$92.3m for a new cement unit in Nagaur, Rajasthan, and US$83m for debt repayment.


Switzerland: Cement deliveries declined by 4.6% year-on-year to 3.6Mt in 2024, impacted by slow economic recovery, uncertainty and high energy prices, according to industry association Cemsuisse.

However, the fourth quarter of 2024 showed a 2.1% year-on-year increase in deliveries to 0.89Mt, reportedly driven by declining inflation and low interest rates, with Cemsuisse stating that it is ‘cautiously optimistic’ about 2025. The proportion of cement types with reduced clinker content rose to almost 97% from just under 96% in 2023. The proportion of cement transported by rail fell slightly to 37.4% from 37.6% in 2023.


Iraq: Iraq’s largest cement plant in Kirkuk has resumed operations after a shutdown in November 2024 due to environmental non-compliance and an issued fine of US$343,000. Upgrades include a new dust control system and pollution monitoring equipment. Residents of nearby Lailan have previously protested against the plant, stating that the pollution caused adverse health effects and poisoned local crops, according to Intellinews. Following inspections, the factory now reportedly meets relevant pollutant standards.


Cambodia: The government has cancelled over 460 hectares of cement projects in Kampong Trach district, Kampot, to preserve the region's ecotourism and cultural heritage, according to Construction & Property Magazine. The decision will affect a project licensed to BYRICH Construction Material Company.

Its project spans 463 hectares across six limestone-rich mountainous sites, with a license valid from March 2020 to March 2035.


Lithuania: Capsol Technologies has commenced its first CapsolGo demonstration campaign at the Akmenės Cementas plant in Lithuania, owned by Schwenk, to evaluate its carbon capture technology.

Schwenk plans to test Capsol’s technology at two cement plants, with a combined CO₂ capture potential of 1.5Mt/yr. Following the demonstration campaign at the Akmenės plant in Lithuania, the CapsolGo unit will be transferred to Schwenk’s Brocēni cement plant in Latvia, where a feasibility study was conducted in 2024.


India: The Adani Group will invest US$577m to develop and expand its cement plants in Bhatapara and Jamul, according to the Economic Times. The expansion at the Bhatapara unit has already been announced.

This comes as part of an announcement by chair Gautam Adani to invest a total of US$7bn in the state, with US$6.9bn going to the expansion of power plants in Raipur, Korba and Raigarh.


Iran: The country’s cement production capacity has reached 90Mt/yr, with 85% of machinery and parts manufactured domestically, according to Majid Vafapour, head of the Cement Industry Employers Association.

Vafapour said domestic demand is fully met, with any surplus exported. He noted that reduced infrastructure activity due to funding constraints has driven higher exports.

Vafapour said “If international challenges are resolved and domestic projects regain momentum, the current 90Mt/yr capacity could be fully utilised for domestic consumption.”

Efficiency initiatives, including the use of additives, could boost output by 20% without new facilities, according to The Tehran Times. However, energy supply disruptions have left over 30 kilns idle, according to Vafapour, and clinker reserves have dropped below strategic levels.


Moldova: The Rybnitsa cement plant has closed amid a cutoff of gas supply to the Transnistrian region, leaving half of its 650 employees at home with 66% of their pay, while the rest carry out equipment repairs and cleaning, according to IPN news.

Interim director Oksana Baka said “The plant had a plan to produce about 30,000t of cement during this period. This stock would have ensured our protection on the market, but now the situation is critical because our supplies are insufficient.” Contributions to the local budget will decrease if gas supplies are not restored by February 2025.

The plant is modernising its dust filtration system and preparing for resumption once gas supplies are restored. On 1 January 2025, Gazprom stopped supplying gas to the Transnistrian region, after gas transit through Ukraine ended. The region remains under a state of emergency until 8 February 2025.


Uzbekistan: Cement sales on the Uzbekistan Commodity Exchange (UZEX) grew by 58% year-on-year to 5.9Mt in 2024, with average monthly sales exceeding 0.49Mt, according to Business World Magazine.

Ahangarantsement held 18% of total cement sales volume, followed by Kyzylkumsement (3%) and Bekabadcement (1%). Tashkent and the Tashkent region observed the highest demand for cement at 34% of purchases, followed by Samarkand (15%) and Kashkadarya (14%). Ferghana held 8%, with other regions purchasing smaller volumes.


Switzerland/US: Holcim is progressing towards the planned listing of its North American business and has designated its future board members. The board will comprise 10 members and will become effective following the execution of the spin-off, expected in the first half of 2025, subject to shareholder and customary approvals.

Jan Jenisch, current chair of Holcim and its former CEO from 2017 to 2024, has been designated chair and CEO of the new business. Jenisch will remain Holcim’s chair until the Annual General Meeting on 14 May 2025.

The Board will include nine independent directors: Theresa Drew, Nicholas Gangestad, Dwight Gibson, Holli Ladhani, Michael McKelvy, Jürg Oleas, Robert Rivkin, Katja Roth Pellanda, and Cristina Wilbur.


Romania: The Competition Council has fined Holcim Romania, Romcim and Heidelberg Materials Romania a total of €43.7m for allegedly coordinating pricing policies during the period of 2017–2018, according to Economedia Romania. Holcim Romania was fined €18.2m, Romcim €13.3m and Heidelberg Materials €12.2m.

The Council found that the companies exchanged non-public commercial information regarding prices, discounts and payment terms through customers, which was used to establish commercial strategies regarding pricing policy. Bogdan Chirițoiu, president of the Competition Council said that “The behaviour led to reduced competition, which generated an increase in cement prices compared to neighbouring countries.”

Holcim has since responded, saying that it will appeal the fine imposed and calling the decision ‘unfounded’ in a recent press release.  

Bogdan Dobre, CEO of Holcim Romania & Market Head Moldova, said “Holcim Romania rejects the conclusions of the investigation report and declares that it has acted and continues to act in accordance with the competition rules. We consider the decision to be unfounded, therefore Holcim Romania will exercise its right of defense before the courts and will challenge the sanction issued by the Romanian competition authority.”


US: The US Department of Energy (DOE) has awarded funding for two Leilac projects to conduct preliminary front-end engineering design (pre-FEED) studies, subject to final negotiations.

A project at Roanoke Cement Company in Virginia, led by Titan Group in partnership with Leilac, Amazon and Virginia Tech, received US$1.49m. It aims to capture over 500,000t/yr of CO₂ from cement Scope 1 emissions using Leilac’s technology.

A project at Mississippi Lime Company in St Louis, Missouri, in partnership with Leilac, Industrial Ally and Nuada, received US$1.5m. It seeks to achieve net-zero lime manufacturing by integrating Leilac’s CO₂ capture technology with Nuada’s carbon capture system for combustion emissions.

Calix CEO Phil Hodgson said “We look forward to concluding the grant agreements and developing these exciting projects that have the potential to demonstrate industry-leading solutions to produce both low-carbon cement and lime at commercial scale.”


India: The Department for Promotion of Industry and Internal Trade under the Ministry of Commerce & Industry has signed a memorandum of understanding (MoU) with JK Cement to support startups, entrepreneurs and innovation in manufacturing. The partnership will provide access to JK Cement’s infrastructure, manufacturing and research and development facilities, mentorship programmes, pilot projects and university resources.


Türkiye: Sinoma Overseas has dispatched its 300t/hr ball mill and roller press system for Kipas Cement's grinding project. The Kipas team conducted a factory inspection at Sinoma’s ball mill manufacturing workshop prior to shipment.


US: Cemex has obtained US$13m through the Texas Emissions Reduction Plan (TERP) to deploy four lower-emission locomotives and two haul trucks at its cement and aggregate sites in New Braunfels and Katy, both in Texas. TERP provides financial incentives to businesses and governments to reduce emissions from vehicles and equipment. Three of the four locomotives and both trucks began operations in late 2023 and mid-2024 in New Braunfels, respectively, according to Energy Tech news. Cemex reportedly intends to deploy additional equipment in 2025.

A US$2m grant from the Environmental Protection Agency’s (EPA) Diesel Emissions Reduction Act (DERA) will fund two additional locomotives for Cemex’s Florida operations in Jacksonville and Miami in the summer of 2025. Cemex plans to decommission the vehicles that are replaced and expand its low-emission fleet for its operations in Victorville, California.


Nigeria: The Bauchi State government has approved a US$7.9m road project to support the development of the Gwana cement plant in Alkaleri. 10,000 people will be employed in the construction of the plant before it commences production in the next two years, according to Leadership News. Feasibility studies for the plant have reached an advanced stage for the location of the plant by Resident Cement Company.

The plant will generate 100MW of electricity for the plant from coal, with surplus power supplied to nearby communities.


India: Cement companies are expected to report weak financial results for the December quarter of the 2025 financial year due to lower demand, suppressed by reduced government infrastructure spending and weak private capital expenditure, according to The Hindu Businessline.

Large players, including UltraTech Cement and Ambuja Cements, are expected to lead demand growth by 8% year-on-year in the December quarter, but earnings before interest, tax, depreciation, and amortisation (EBITDA) may decline by 18%. Efforts to increase prices in October and November 2024 were rolled back, and a mid-December increase reportedly failed to boost profits.

Parvez Qazi, research analyst at Nuvama Research, said “We expect further consolidation in the space mostly in the southern region due to its fragmented nature. Softening fuel prices, along with cost efficiency measures undertaken by various players, are likely to provide some relief on the cost front, thereby cushioning the impact of weak realisations to some extent.”


US: Continental Cement Company will pay a US$74,440 civil penalty and spend at least US$282,000 to procure low-emission buses for a local school district as part of a settlement following alleged Clean Air Act violations. The replacement propane buses will reduce air pollution in areas impacted by excess emissions from Continental Cement’s operations.

According to the Environmental Protection Agency (EPA), it identified inadequate operation of leak detection systems during a December 2022 inspection, which are designed to notify the company of potential hazardous emissions. Without a functioning leak detection system, the facility would be unaware of whether pollutant filters are operating effectively to reduce emissions of particulate matter and other air pollutants.


Czech Republic: Wikov Gear has announced its name change to Wikov TurboGear, with the company stating that the new name reflects its core business of development, design and manufacturing of high-speed gearboxes for industrial and energy applications.

The company’s repair and refurbishment operations will now operate under a new division, Wikov GearServices.