Global Cement News

Colombia: Cementos Argos has invested around US$42m on a new terminal in the free trade zone of Cartagena. It is expanding its port infrastructure and tripling the import-export capacity of the site to 3.5Mt/yr. The new terminal, which adds to Argos' existing port facility, from which it exports cement and clinker to the US and other destinations in the Caribbean and Central America, will begin operations in the first quarter of 2022. An official ceremony marking the opening of the terminal will be held in January 2022.

"This new terminal will allow us to substantially increase cement exports to the US, taking advantage of the growing demand for construction materials in that country," said Juan Esteban Calle, the chief executive officer of Cementos Argos.

Spain: Cementos Molins has acquired a 100% stake in precast concrete supplier Pretersa Prenavisa for an undisclosed sum. Molins, through its subsidiary Precon, made the purchase from the European investment group Kartesia. It says the transaction will boost its presence and product mix in the precast concrete market in Spain, Portugal, and France.

Pretersa Prenavisa supplies the engineering, design, manufacture, and assembly of precast concrete structures. Its headquarters is based at Teruel and it operates three production plants at Teruel, Jaen and Segovia. It has around 770 employees and reported a turnover of Euro56m in 2020.

Cementos Molins operates in the precast business in Spain through its subsidiary Precon. It operates ten production plants located throughout Spain. The acquisition of Pretersa Prenavisa is Molins’ fifth in 2021. It follows the takeover of Escofet, a concrete design specialist, the acquisition of a white cement plant in Spain from Çimsa group, the acquisition of Calucem, a calcium aluminate cement producer, and the acquisition of the aggregates and ready-mix concrete businesses of HeildelbergCement in Catalonia.

US: Holcim has signed an agreement to acquire Malarkey Roofing Products for US$1.35bn. The transaction will be financed with cash and it is expected to complete in the first quarter of 2022. The Switzerland-based construction materials group said that the acquisition would fit well with its Firestone Building Products subsidiary and that the purchase would position it as a full roofing provider. Malarkey Roofing Products has forecast net sales of US$600m and earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$120m in 2020.

Jan Jenisch, the chief executive officer of Holcim, said “We are off to a strong start to our ‘Strategy 2025 – Accelerating Green Growth’ with the acquisition of Malarkey Roofing Products, expanding our Solutions & Products business to become a global leader in roofing systems.” He added “Our companies are highly complementary with many upsides.”

Malarkey Roofing Products was founded by Herbert Malarkey in 1956 and has its headquarters in Portland, Oregon. It provides products for the residential roofing market from roofing shingles to ice and water barriers. It operates production plants in Oregon, California and Oklahoma.

Philippines: Cemex says that its integrated APO Cement plant in Naga City, Cebu is operational following Typhoon Odette. It reported to the Philippine Stock Exchange that the site had suffered property damage but that key production equipment had not sustained major damage. However, it has scaled back product dispatch due to infrastructure and logistical challenges caused by the aftermath of the typhoon. It also offered its thoughts to “those adversely affected by the storm and said that, “The safety and well-being of employees, contractors and communities are an immediate concern.

Two stories tie into larger trends this week as Global Cement Weekly says goodbye to 2021. Firstly, the state government of Odisha dropped a bombshell this week with its approval for an 18.75Mt/yr cement plant. Keen readers of the Global Cement Directory should note that, if built, this would be around the 10th largest plant worldwide and possibly the biggest outside of China. Credit to Odisha and India though for showing us how to end the year!

Odisha has been encouraging steel production in recent years. In March 2021 local press reported that Arcelor Mittal Nippon Steel (AMNS) had signed a memorandum of understanding with the state government for a US$6.6bn steel plant in the same district. Notably, a more binding agreement was intended to be signed once land and mining leases had been secured. This week the state said that its High Level Clearance Authority had approved an enlarged plan with AMNS worth US$13.5bn. This includes a 24Mt/yr steel plant and a 18.75Mt/yr cement plant. Both are to be built in phases over seven years. No further word on those land and mining leases though. How this fits into India’s overall plans for net zero CO₂ emissions by 2070 is anyone’s guess. Yet this is another cement project linked to steel production. Readers may recall that steel producer Companhia Siderúrgica Nacional (CSN) Cimentos picked up Holcim’s Brazilian cement plants in September 2021.

The other story of note this week was Cembureau’s calculation that if the European Union (EU) emissions trading scheme (ETS) CO₂ price reached Euro90/t then this could represent up to 15% of a cement plant’s production costs. The European cement association made the calculation using data from Ecorys, WIFO, the National Institute of Economic and Social Research for the EU Commission and Agora Energiewende. It wants the EU to bolster carbon leakage measures as soon as possible to fight rising import rates from outside the region. It is pushing for a delay to phasing out the free allocation in the ETS, bringing forward the proposed carbon border adjustment mechanism (CBAM) and for legislators to tackle rising carbon and energy costs generally. It should be noted that the EU ETS price reached Euro88/t on 8 December 2021 but it has stayed below that level since then.

As mentioned at the start, both of the stories above connect to larger trends, principally the cement sector’s adjustments to meet its sustainability goals. A new cement plant with a readily available supply of ground granulated blast furnace slag, such as a potential AMNS unit might have, can reduce its clinker factor more easily than its competitors. One major story in Europe over the last two years has been the steep increase in the ETS price, and Cembureau is highlighting the problems this has caused its members. Global Cement Magazine has run a number of annual round-ups in the last two issues that cover these issues and others. Dr Robert McCaffrey’s news and trends list for 2021 from the Global Cement LIVE broadcast on 21 December 2021 pulls together many of these ideas and more and is well worth watching.

We’ll finish with a list of the top 10 news stories on the Global Cement website in 2021. This reflects what readers all over the world are interested in at a particular time and the list is also biased towards stories that were published in the first half of the year as they have had more time to gather views. Yet, note, new plants in Africa and South Asia, a cement shortage story, Holcim’s decision to change its name and the problems a European producer, Cementa, has had with its quarrying. All of these touch upon larger themes.

Top 10 news stories on Global Cement website in 2021

1. Dzata Cement bagging plant to open in mid-2021
2. UK faces short-term cement shortage
3. LafargeHolcim shareholders agree to change group name to Holcim
4. SRM Concrete acquires 24 concrete plants in Dallas from Cementos Argos
5. Bestway Cement to build new cement plant in Mianwali
6. ThyssenKrupp abandons sale of ThyssenKrupp Industrial Solutions cement section
7. Holcim launches new corporate brand identity
8. Swedish supreme court rejects application by Cementa to renew mining permit for Slite cement plant
9. Larsen & Toubro wins new 3.5Mt/yr cement plant contract in Rajasthan
10. ACC breaks ground on 2.7Mt/yr Ametha cement plant project

Enjoy the Christmas and New Year break if you have one.

Global Cement Weekly will return on 5 January 2022