Global Cement News

India: Andhra Cements has commenced work to dispose of grinding mills from its Visakha grinding plant in Andhra Pradesh’s Visakhapatnam District, Reuters has reported. The plant previously had a capacity of 600,000t/yr.

Sagar Cements concluded a deal to acquire Andhra Cements in January 2023.

Switzerland: Holcim has reported growing sales and earnings on an organic basis in first nine months of 2023. In real terms its sales declined by 10% year-on-year to US$22.7bn during the first nine months of 2023 from US$25.2bn in the first nine months of 2022. Its recurring earnings before interest and taxation (EBIT) fell by 2.2% to US$4.05bn from US$4.14bn. However, sales and recurring EBIT grew by 6.2% and 14% respectively on an organic basis. The group divested businesses in India, Brazil and Russia in 2022.

Cement sales were US$11.5bn (51% of group sales), down by 20% from US$14.4bn (57% of group sales). These sales rose by 12% on an organic basis. Throughout the period, ECOPlanet low-carbon cement accounted for 19% of the company’s cement sales. It also recycled 17% more construction and demolition waste year-on-year. Group CO2 emissions per net sales fell by 43% between 2020 and 2023.

Chair and chief executive officer Jan Jenisch said “I thank all members of the Holcim family for delivering profitable growth in the third quarter of 2023 despite challenging economic conditions, marked by softer demand in some markets and foreign exchange headwinds.” He added “The third quarter of 2023 results confirm Holcim’s strong earnings profile, with broad-based growth drivers delivering another increase in profitability. This performance gives us the confidence to upgrade our 2023 guidance to an industry-leading recurring EBIT margin of above 17% for the year.” The group also upgraded its outlook for full year organic sales growth to above 6% and for organic EBIT growth to above 10%.

Thailand: Siam Cement Group’s sales dropped by 12% year-on-year to US$3.47bn during the first nine months of 2023. The group’s net profit remained level year-on-year, at US$67.4m.

India: ACC recorded sales of US$1.16bn during the first half of its 2024 financial year that started in April 2023. This represents a year-on-year rise of 14% from US$1.02bn in the first half of the previous financial year. Cement sales grew by 15%, to US$1.08bn, 94% of total sales. The company’s raw materials costs rose by 16% to US$185m, while its power and fuel costs fell by 24% to US$241m, failing to offset a 5% rise in overall costs, to US$1.06bn. As such, ACC reported a profit after tax of US$102m, up by a factor of six from nine-month 2023 financial year levels.

US: Eagle Materials sold 4.14Mt of cement during the first half of its 2024 financial year, from 1 April 2023, a slight increase from the volume sold in the same period in its 2023 financial year. It reported sales revenue from its wholly owned cement business of US$614m, up by 15% year-on-year and corresponding to 50% of total group sales. Overall, group revenue rose by 4.9% to US$1.22bn.

President and chief executive officer Michael Haack said "Market conditions for our construction materials remained resilient during the quarter, even as the Federal Reserve continued to raise interest rates and tighten money supply to contain inflation. Several factors helped offset the higher rates and supported demand for cement, including limited housing supply, strong homebuyer demand, increasing infrastructure awards and significant investment in domestic manufacturing facilities. As demand remained strong and our operations remained nearly sold-out, we implemented a second round of cement price increases in early July across half our markets, and announced the next round of price increases for early January 2024.” Haack added “We expect that our portfolio of businesses will remain well-positioned for the second half of fiscal 2024."