Global Cement News

Thailand: Siam Cement Group (SCG) recorded revenues of US$11.8bn during the first nine months of 2022, up by 15% year-on-year from US$10.2bn in the corresponding period of 2021. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) declined by 26% to US$1.37bn from US$1.86bn.

SCG recorded nine-month costs growth of 15%, to US$3.29bn from US$2.85bn. The Bangkok Post newspaper has reported that the group says that its monthly energy costs have risen by 50% since the outbreak of the Russia-Ukraine war. As such, it is currently focusing its investments on three ‘key’ business areas with smaller energy consumptions than cement. These are smart living, renewable energy and logistics.

SCG renewables subsidiary SCG Cleanergy aims to more than double its renewable power generation capacity to 500MW before 2026 and further increase it to 5GW before 2028. This will consist of wind farms and roof-mounted and floating solar power plants. Meanwhile, SCG Logistics Management secured approval to merge with JWD InfoLogistics on 26 October 2022.

Germany/Australia: Calix subsidiary Leilac has concluded a licence agreement with Heidelberg Materials for use of its carbon capture technology. The cement producer holds the licence indefinitely and for all operations across the globe. It said that Leilac’s technology offers effective capture of unavoidable cement plant CO₂ emissions with minimal operational impact.

Heidelberg Materials currently has one Leilac system installed at its Lixhe plant in Belgium. It expects to commence construction of a second unit at its Hanover plant in Germany in 2023. Together, the installations will be able to capture 125,000t/yr of CO₂. The producer says that both projects pave the way for future full-scale deployment of Leilac’s carbon capture model.

Australia: Cement Australia’s Gladstone cement plant in Queensland will host a study of methanol production from green hydrogen and captured CO₂. Japan-based Mitsubishi Gas Chemical Company will supply its green methanol production technology, while hydrogen and oxygen feedstocks will be sourced locally. Cement Australia and Mitsubishi Gas Chemical Company will collaborate on commercialisation of their green methanol. Cement Australia said that carbon capture and its utilisation in value added products is a strategic pillar of the company’s decarbonisation roadmap.

The cement producer said “The Gladstone region is the ideal location for growing a diverse green hydrogen sector, with abundant renewable energy sources, existing infrastructure, including port facilities, and a highly skilled workforce. The green hydrogen economy is a priority for the Queensland government under the Queensland Hydrogen Industry Strategy.”

China: BBMG Corporation has issued US$276m in short-term commercial paper on the international bond market. The bonds have a maturity date of 24 March 2023. Bank of Beijing is the main underwriter of the offering.

China Knowledge Press News has reported that BBMG Corporation has a one-year outstanding balance of US$2.53bn and a total outstanding balance of US$6.39bn.

Mexico: Cemex sold 47.8Mt of cement in the first nine months of 2022, down by 5.3% year-on-year from 40.5Mt in the same period of 2021. Despite this, its consolidated revenues rose by 8%, to US$11.7bn from US$10.8bn. The group's cost of sales grew by 12% to US$8.09bn from US$7.25bn, and its operating earnings before interest, depreciation, taxation, depreciation and amortisation (EBITDA) dropped by 6.6%. Nonetheless, contributions from discontinued operations led to net income growth of 72%, to US$987m from US$574m.

Cemex said that higher prices in local currency terms drove sales growth across all of its regions. As a percentage of sales, costs grew to 70% from 68%, mainly on account of energy price rises. Operating EBITDA fell across all regions apart from Europe, the Middle East, Africa and Asia (EMEAA), where it rose by 2.5% to US$524m from US$511m. Cemex noted Europe's 'remarkable resilience' in implementing 'double-digit' price increases to increase earnings, while also crossing a threshold of 40% in CO2 emissions reduction from its 1990 baseline.