Global Cement Newsletter

Issue: GCW693 / 22 January 2025

Headlines


PPC revealed plans this week to build a new cement plant in the Western Cape region of South Africa. It has entered into a “strategic cooperation agreement” with Sinoma Overseas Development Company to put together a 1.5Mt/yr integrated plant for around US$160m. It is hoped that construction will start in the second quarter of 2025 with commissioning scheduled by the end of 2026.

CEO Matías Cardarelli described more details about the project during a tie-in webcast on 16 January 2025. Specifically, the new unit will be built at the company’s integrated Riebeeck Plant site due to the quality of the local limestone and the greater reserves. In addition, all the key environmental approvals and mining rights have already been obtained. Both this plant, and the nearby De Hoek Plant, will continue to run throughout the construction and commissioning period. A decision will then be made about required staffing. PPC did not explicitly say whether the two old plants would be closed but the new plant will “replace and increase the existing capacity” at the other sites.

Points to note from the announcement start with the low cost for the clinker production line. PPC’s 1Mt/yr line at its Slurry plant cost around US$75m when it was commissioned in 2018. Sinoma also built that one. However, negative currency exchange effects make comparisons tricky. In 2015 PPC said that the cost of the Slurry line was around US$115/t. It pointed out that the price was low as it was a brownfield investment. This compares to US$107/t for the Western Cape project, another brownfield project. Other recent integrated plant projects in Sub-Saharan Africa to consider include Cemtech’s clinker plant in Sebit, Kenya (US$170/t) or West International Holding’s forthcoming plant in Buikwe District, Uganda (US$150/t). Plans for a new PPC plant in the Western Cape go back to at least 2017 when the then CEO Johan Claassen said it was preparing for a ‘mega plant.’ At the time it was hoping to replace its Riebeeck plant with a ‘semi-brownfield’ facility that would use around 25% of the current plant’s equipment. The scheme had actually been around longer but Claassen remarked that insufficient domestic demand had held it back.

The next detail to consider is that PPC is planning to build this new plant within 100km of the coast. This was addressed directly with PPC saying that the new plant would be “extremely competitive” against imports. They say it will be able to produce cement, at least, to a similar cost to imports from Vietnam. It was also remarked that only 10 - 15% of the 1Mt/yr of imports, mainly from Vietnam, go to the Western Cape with the rest heading to KwaZulu-Natal via the Port of Durban.

PPC’s plans in Riebeeck are part of its ‘Awaken the Giant’ development strategy. For its six month financial results statement to September 2024 it said that it had “early positive and encouraging signs in all lines of our business.” In South Africa its earnings were up despite lower sales volumes. Dangote Cement’s local subsidiary, Sephaku Holdings, reported a similar picture with a small bump in revenue and earnings back up after coal and fly ash supply constraints a year earlier. PPC isn’t the only cement company developing capacity. Huaxin Cement-owned Natal Portland Cement was reportedly investing US$65m in the autumn of 2024 towards expanding its Simuma Plant in KwaZulu-Natal.

The cement sector in South Africa had a couple of ownership changes in 2024. As mentioned above, China-based Huaxin Cement bought Natal Portland Cement from InterCement at the start of the year. Then, Afrimat received approval to buy Lafarge South Africa in April 2024. Both of these incomers have clear ambitions to expand in the industry. In this context PPC’s decision to finally revive its Western Cape plans, before whatever its new competitors devise, makes sense. Expect more talk of capacity upgrades in the future.


Spain: Heidelberg Materials Hispania has appointed Carlos Sánchez Galán as its Director General. He succeeds Jesús Ortiz Used in the post.

Sánchez Galán most recently worked as the Cement Commercial Director and Aggregates & Readymix Operations Director for the Spain-based subsidiary of Heidelberg Materials. Prior to this he was the Director Of Business Operations & Procurement. Throughout his career he has held a variety of managerial business development roles as well as working in commercial operations and purchasing. He originally joined Heidelberg Materials in 1997 as the Director for the Canary Islands.

Sánchez Galán is a graduate in Economics and Business Sciences from the Complutense University of Madrid with a master's degree in business administration (MBA) from the Australian Graduate School of Management and a qualification in quarry technology from Doncaster College in the UK. He was also the president of the Spanish Association for concrete and mortar admixtures (ANFAH) from 2015 to 2017.


Türkiye: Two members of the cement sector have reportedly died in a fire at the Bolu Kartalkaya Ski Center. Aysemin Elif Dogan, Mehmet Cem Dogan and their daughter perished in the incident, according to posts by their employers on LinkedIn. 76 people have so far reported to have been killed.

Aysemin Elif Dogan was the R&D and Quality Director for Baştaş Çimento, a subsidiary of France-based Vicat.

Mehmet Cem Dogan had been the plant manager of OYAK Çimento’s Bolu plant in Caydurt since 2023. Prior to this he was the manager of a plant in Ankara. Dogan previously worked for Vicat’s subsidiary Baştaş Çimento and Cimpor in process engineering and production management roles.


China: Sinoma International Engineering has appointed Yin Ling as its chief financial officer and as a vice president. She succeeds Wang Yuan in the post. Yuan will continue to work as a vice president for the company.
Ling holds a bachelor’s degree in economics and is trained as an accountant. She has worked for Huazheng Certified Public Accountants, China Fiberglass and as the general manager for the finance department of China National Building Materials.


UK: Cemvision has launched one of the UK’s first commercial applications of its low-carbon Re-ment cement technology at a STOREX self storage development in Sunbury, near London. The foundational slabs for the site employ Cemvision's Re-ment Massive product, which replaces traditional Portland cement. Recent laboratory tests have shown that the product achieves a 75% CO₂ reduction and a 28-day compressive strength, that reaches the C50/60 classification, compared to traditional Portland cement. STOREX and Cemvision have signed a Letter of Intent for further collaboration in the UK and other markets.

“This project is a landmark achievement for Cemvision as we bring the benefits of green cement to UK customers,” said Oscar Hållén, CEO of Cemvision.

Cemvision says that its Re-Ment Massive technology reaches different levels of CO₂ reduction depending on application and local conditions, with the product already having achieved more than a 95% reduction compared to Portland cement in demo production in the EU, according to the company.


Portugal: CBMI has signed an engineering, procurement and construction contract with SECIL Cement Group for the renovation of the 1800t/day clinker line at the Maceira plant.

The project includes the installation of a new firing system and a series of upgrades to improve energy and heat efficiency. The upgrade encompasses five decarbonisation measures, including a 100% alternative fuel design rate, with the aim to decrease CO₂ emissions by 30% compared to 2019 levels. This would reportedly reduce CO₂ emissions to 550kg/t of clinker.


India: Nuvoco Vistas has reported 16% year-on-year growth in its consolidated cement sales to 4.7Mt in the third quarter of the 2025 financial year ending on 31 December 2024.  Consolidated revenue from operations stood at US$279m and consolidated EBITDA at US$30m. In its release, the company stated that the cement industry was recovering following a challenging first half of the 2025 financial year and subdued demand.

Nuvoco stated that it had achieved the industry's ‘lowest carbon emissions’ at 457kg of CO₂ per tonne of cementitious materials.

Managing director Jayakumar Krishnaswamy said “The company proactively seized demand opportunities to bolster its position in the market and delivered strong volume growth during the quarter. The company is confident in its expansion strategy and ability to execute on growth plans pertaining to Vadraj Cement, which will diversify its market footprint in western India, thereby supporting long-term growth ambitions and further consolidating its position as the fifth largest player in India.”

The company is reportedly on track to achieve 31Mt/yr cement capacity by the third quarter of the 2027 financial year.


US: The US Department of Energy's (DOE) Office of Fossil Energy and Carbon Management has selected Cemex's Knoxville cement plant in Tennessee as the site for a carbon capture, removal and conversion test centre. The project is part of a US$101m initiative shared among five projects that aim to decarbonise cement plants and power facilities.

Cemex, in collaboration with the University of Illinois Urbana-Champaign (UIUC) and a coalition of US cement producers, will develop the conceptual design, business, technical and managerial frameworks for the test centre under Phase 1. Phase 2 will involve constructing and operating the centre to evaluate advanced carbon management systems.

Jaime Muguiro, president of Cemex US, said “While we are making steady progress, the cement industry has the opportunity to accelerate the pace of our decarbonisation even more. I am excited that our Knoxville cement plant has been selected as the host site for the carbon capture test centre. Through collaboration and continuous innovation with the University of Illinois and industry peers, Cemex is committed to advancing decarbonisation solutions.”


Saudi Arabia: Eastern Province Cement Company (EPCC) will install two MVR 5000 R-4 vertical roller mills from Gebr. Pfeiffer at its Khursaniyah plant, as part of a new 3.2Mt/yr (10,000t/day) production line. The mills will grind 550t/hr of cement raw material to a fineness of ≤10%R on 90µm.

The MVR mills are expected to improve technical availability, while reducing operating costs and emissions. This project marks the first installation of MVR vertical roller mills in Saudi Arabia and is being managed by Chinese contractor CBMI. Commissioning is scheduled for the second half of 2025.


Saudi Arabia: Cement sales increased by 12% year-on-year in the fourth quarter of 2024, reaching 14.87Mt, Arab News reports. Sales were primarily driven by domestic demand, which accounted for 96% of total sales. Exports contributed the remaining 4%, according to data from Al-Yamama Cement. For the full year, cement sales grew by 3.7% to 51.2Mt.

Al-Yamama Cement led the domestic market in the fourth quarter of 2024, with a 13% share and sales of 1.83Mt, up by 22% year-on-year. Qassim Cement, after acquiring Hail Cement, held an 11% share with 1.63Mt of sales. Yanbu Cement, Southern Cement, and Al Jouf Cement followed.

During the same period, Saudi Cement dominated in exports with 0.49Mt, representing 80% of total shipments and a 71% year-on-year increase. Clinker production grew by 7% year-on-year in the fourth quarter of 2024 to 14.9Mt, while clinker exports fell by 28% to 1.15Mt.

Amr Nader, CEO of cement consultancy A3&Co, said “These figures may not fully align with the anticipated surge in demand from ambitious infrastructure projects. Megaprojects such as NEOM, the Red Sea project, and FIFA World Cup-related developments require vast quantities of construction materials. The maximum anticipated demand in the next five years is 78Mt/yr.”


Pakistan: Attock Cement has commissioned a 4.8MW wind turbine project at its Hub site, it stated in a notice to the Pakistan Stock Exchange. The company says that the project aligns with its commitment to sustainable cement production and aims to reduce power costs.


Cambodia: The government has waived the 5% tax on domestic cement products from January 2025 to December 2026 to support the local cement industry, as announced by the Ministry of Economy and Finance.

The exemption reportedly aims to alleviate financial burden on the industry and promote growth. Local cement companies must comply with obligations including tax filings, maintaining comprehensive records and submitting annual reports detailing production, costs and social initiatives.

To date, Cambodia’s cement industry has attracted over US$1.2bn in investments, creating more than 2700 jobs and ‘significantly’ contributing to the economy, according to Construction & Property news.


India: Kaushalya Logistics has opened new depots for Ambuja Cement, part of the Adani Cement Group, in Kurukshetra and Bhiwani, Haryana.

This marks the first phase of a strategic expansion approved by ACC & Ambuja Cement to establish operations at key locations in Haryana, including Kaithal and Fatehabad. The new depots reportedly aim to improve inventory management, reduce transit times and enhance connectivity across key industrial hubs in the region.


Azerbaijan: Cement production reached 4.03Mt in 2024, up by 1.6% year-on-year, according to the State Statistics Committee. The total value of the construction materials sector rose by 17% to US$823m. Production of bricks and similar products from cement and concrete increased by 41%, while cement clinker output grew by 16%.


Nepal: The Public Accounts Committee of the House of Representatives has received a complaint alleging that cement producers have created artificial shortages in order to raise prices, according to Republica newspaper. A meeting has been scheduled to discuss the complaint.


Saudi Arabia: Northern Region Cement has announced a projected 10% increase in production costs following Saudi Aramco's adjustment of fuel prices.

The company stated that it will explore strategies to mitigate the financial impact, focusing on cost reduction and enhancing production and operational efficiency.


Brazil: thyssenkrupp Polysius has secured a front-end engineering design contract from Circlua for the construction of the world’s largest activated clay plant, with a capacity of 0.96Mt/yr (3000t/day). The plant will be largely powered by renewable electricity, and will be located in Pará, utilising clay sourced from the Carajás iron ore complex. The clay contains up to 80% kaolinite content, and will be upcycled as supplementary cementitious material.

thyssenkrupp Polysius CEO Christian Myland said “We are honoured to partner on this landmark project. Leveraging high-quality local clay and our advanced activated clay technology, this plant will set a new benchmark for carbon-conscious cement production.”


India: A coal hopper has collapsed at the Dalmia Cement (Bharat) plant in Rajganpur, Odisha, leaving several workers trapped under debris. According to the latest reports, 64 workers have been rescued or evacuated, but three remained trapped overnight. A large-scale operation by the authorities has been launched, with cranes and heavy machinery being used to clear the debris and attempt to find the trapped workers. Fatalities have not been confirmed.

A statement from Dalmia Cement (Bharat) said "The accident occurred at around 6:00 pm on 16 January 2025, wherein the whereabouts of three persons are yet to be ascertained. The injured have been provided with immediate treatment and the best medical care is being provided by the company.”

The statement added that the plant area has been cordoned off, according to Money Control news.

Update: On 18 January 2025, three bodies were recovered from the debris of the collapsed structure, after a 36-hour attempt. The plant is now closed until an investigation into the accident has taken place.

Dalmia Cement (Bharat) released a further statement, saying “We are deeply saddened by the tragic incident at the captive power plant in Rajgangpur. We express our heartfelt condolences to the families of the three workers who lost their lives in this incident. We are extending full support to the bereaved families in close coordination with the district administration, including education, livelihood and compensation.”


Peru: National cement despatches reached 0.97Mt in December 2024, a 0.1% year-on-year increase, according to the Cement Producers Association (Asocem). Total despatches in 2024 were nearly 12Mt, marking just a 0.01% rise compared to 2023, indicating stagnation in the sector.

Asocem members produced almost 0.92Mt of cement in December 2024, a 1% year-on-year decrease, and recorded a 3% decline in 2024 to 11Mt. Cement exports from members rose by 70% year-on-year in December 2024 to 0.13Mt, but fell by 8% for the full year. Imports increased to 3000t in December 2024, up by 22% year-on-year, and grew by 29% over 2024, with Chile as the sole supplier.

Clinker production by Asocem members dropped by 30% year-on-year in December 2024 to 0.66Mt, and by 8% over the 2024 period. No clinker was exported by Asocem members, a 100% year-on-year decrease from December 2023. Clinker imports surged by 376% year-on-year in December 2024 to 0.2Mt, sourced from South Korea (44%), Japan (24%), Ecuador (19%) and Turkey (13%).


Türkiye: According to the Turkish Ministry of Trade, Türkiye's global cement exports declined by 6.2% in 2024 to US$4.3bn, with exports in December 2024 amounting to US$341m, a 3% year-on-year decrease. Cement exports over the 12-month period from December 2023 to December 2024 also stood at US$4.3bn.

Cement exports from Türkiye to Kyrgyzstan also dropped in 2024, by 86% year-on-year, amounting to US$3.9m. However, December 2024 exports to Kyrgyzstan rose 7.2% year-on-year to US$751,065.


South Africa: PPC has partnered with Sinoma Overseas Development to build a US$159m, 1.5Mt/yr cement plant at an existing site in Western Cape. The plant will supply customers in Western Cape, Eastern Cape, and Northern Cape. This comes after PPC and Sinoma signed a 'strategic co-operation agreement' in July 2024 that would see them partner with each other to identify new projects and opportunities to improve the efficiency of PPC's operations.

Equipped with solar power and ‘the latest’ technology, the facility will reportedly improve energy efficiency, reduce coal consumption and lower emissions per tonne of cement produced, contributing to reduced production costs.

Over the next three months, the parties will finalise the scope and final assessment of the new plant, as well as the associated turn-key engineering, procurement and construction agreements. Construction of the new plant is expected to begin in the second quarter of 2025, with the plant commissioned by the end of 2026.

PPC CEO Matias Cardarelli said "With this new and most advanced energy and environmentally efficient plant in the country, we will be able to supply our customers with lower-carbon cement at a more competitive cost.”


Europe: Capsol Technologies has been awarded an engineering services agreement for a pre-FEED (front-end engineering design) study on its CapsolEoP carbon capture technology at a cement plant in Europe, aiming to capture 600,000t/yr of CO₂.

Johan Jungholm, chief of business development at Capsol Technologies, said "We are building on our commercial traction within cement, where Capsol has emerged as a preferred carbon capture technology provider. CapsolEoP can operate with up to 50% lower energy use than traditional post-combustion technologies such as amines. This, together with reduced complexity, has the potential of reducing levelised capture costs by 20-60% for cement plant owners looking to decarbonise their operations.”


Austria: RHI Magnesita and MCi Carbon, supported by €3.8m in funding under the Australia-Austria Industrial Decarbonisation Demonstration Partnership Program, are moving forward with plans to establish the world’s first carbon capture and utilisation (CCU) plant in the refractory industry at Hochfilzen, Tyrol.

The funding, provided by the Austrian Climate and Energy Fund and the Australian Department of Climate Change, Energy, Environment and Water, will support the CCUPScale project. This includes raw material analysis, pre-demonstration trials, low-carbon product development, process engineering and industrial integration.

The plant is expected to begin operations at RHI Magnesita’s facility in 2028 and aims to capture, convert and utilise 50,000t/yr of CO₂ to produce ‘CO₂-negative’ mineral products. The initiative uses MCi Carbon's mineral carbonation technology to reduce Scope 1 emissions and transform CO₂ into value-added materials.

Constantin Beelitz, regional president Europe, CIS & Türkiye at RHI Magnesita, said "This funding approval shows that we are on the right track with this project. For industries with unavoidable emissions like ours, CO₂ capture is currently the only viable path to achieve net-zero by 2050. However, we go one step further by not only capturing CO₂, but also converting it into products that provide solutions for us and other hard-to-decarbonise sectors, such as the cement industry."


Spain: Votorantim Cimentos Spain will invest €3.2m in a new clinker cooler at its Málaga plant, according to Alimarket. The upgrade will reportedly reduce thermal and electrical energy consumption and avoid approximately 11,000t/yr of CO₂ emissions. The project will receive a €725,960 subsidy from the regional government of Andalusia.


France: Bouygues Construction and Ecocem have signed a partnership to facilitate the use of Ecocem’s low-carbon ACT cement technology in Bouygues Construction’s projects.

The collaboration involves three stages of testing and validation. First, Bouygues Construction will conduct independent laboratory tests to evaluate ACT’s performance. Next, structural concrete walls will be built at Bouygues Construction’s facilities in Chilly-Mazarin, France starting in early 2025, and monitored to ensure thorough testing. Finally, a full-scale mock-up, including all structural elements, will be constructed to assess the in-situ application of ACT technology.  The testing programme aims to integrate ACT technology into Bouygues Construction projects following successful validation.