Global Cement News

India: JK Cement has appointed Shri Jagendra Swarup as an additional director on the board of the company until its next annual general meeting.

Sri Lankan cement demand fell in the first half of 2013. Yet this doesn't seem to be stopping the cement industry's slow recovery following the civil war that ended in 2009.

As reported by Sri Lankan media around the launch of Holcim Lanka's 2012 Sustainability Report, the local cement industry has seen volumes fall by 7% but this is expected to improve in the second half. Tokyo Cement, a grinding plant operator, confirmed a similar drop in the first quarter of 2013.

Despite the talk of downturn so far in 2013, Tokyo Cement has announced plans for a 1Mt/yr cement plant costing US$50m complete with its own captive biomass power plant. In addition, plans have emerged of a joint venture involving Pakistan's D.G. Khan Cement to build a grinding plant at Hambantota in the south of the island. Costing US$15m, the plant is intended to process exports to South Africa and Kenya.

The explicit intention to produce clinker in Pakistan and then grind it in Sri Lanka before export to a third destination makes an interesting notion. The Pakistan cement producer may benefit from being able to export cement from Sri Lanka with the added security of knowing that the grinding plant is located in a growing market itself. A helpful strategy given Pakistan's cement production overcapacity.

The Hambantota project is also noteworthy because another Pakistan-based company, Thatta Cement, announced in April 2013 that it had signed an agreement with the Sri Lanka Ports Authority to a build a grinding and bagging plant at Hambantota. Also in 2013 the Nepali entrepreneur Binod Chaudhary submitted a US$75m plan for a cement plant in the north of the island.

Of course all of this appears miniscule in comparison to the level of investment Semen Indonesia has chalked up to spend between now and 2016: up to a whopping US$2bn.

Elsewhere in the news this week the price of extending a US Environmental Protection Agency (EPA) deadline has revealed itself to be US$1.5m. Lafarge North America has succeeded in pushing back pollution controls at its Ravena plant by over a year in exchange for interim limits and an investment in air pollution projects in the local community. It's not a fine but the announcement follows other pollution-related payments at cement plants run by Holcim and Ash Grove. Let's hope that any new plants in Sri Lanka avoid these kind of payments.

US: Ash Grove Cement Company has announced that Stuart E Tomlinson has joined the company as its vice president of manufacturing for the Midwest region and will be based in the company's home office in Overland Park, Kansas. He join will Ash Grove on 15 August 2013 and replaces Edwin Pierce, who will retire on 31 December 2013.

"Stu is a cement industry veteran and he possesses more than three decades of experience," said Ash Grove's senior vice president of manufacturing. "He is an industry leader and will be an important part of the Ash Grove leadership team."

In his new role, Tomlinson will direct Ash Grove's cement operations in the Midwest region, which includes four cement manufacturing plants in Chanute (Kansas), Foreman (Arkansas), Louisville (Nebraska) and Midlothian (Texas).

Ireland: Irish cement conglomerate Cement Roadstone Holdings (CRH) has announced that Albert Manifold will become group chief executive on 1 January 2014 following the retirement of current chief executive Myles Lee after 32 years with the group.

Manifold, a board member and CRH's CEO since January 2009, has held a variety of senior positions within the company, including managing director of the Europe Materials Division and group development director. Prior to joining CRH in 1998, he was CEO with a private equity group.

Commenting on the appointment, CRH's chairman, Nicky Hartery, said, "I am delighted to announce Albert's appointment as the next chief executive of CRH. This follows a comprehensive selection process led by the Board's Succession Committee."

"Albert will succeed Myles in the New Year, facilitating an orderly transition at chief executive level," continued Hartery. "Albert brings to his new role a deep knowledge of the industry and proven international executive experience."

New Cement Sustainability Initiative (CSI) data for 2011 shows that the global cement industry has reduced its specific net CO₂ emissions per tonne of cementitious product by 17% since 1990. This represents a serious amount of carbon prevented from entering the atmosphere. Using United States Geological Survey (USGS) world production data, if cement producers in 2011 were still emitting C0₂ at 1990 levels 456Bt of additional CO₂ would have been released between 1990 and 2011.

Unfortunately there are a couple of problems.

Firstly, submitting data for the project is voluntary. As the CSI points out in its press release the data set comprises 55% of cement production outside of China. A rough calculation based on global cement production capacity suggests that this could only account for about one third of cement made. So how much carbon does the other two-thirds of cement made emit?

Secondly, although CO₂ emissions per tonne of cement have gone down by a sixth since 1990, global cement production more than tripled (!) in the same time period. USGS data placed world production at 1.40Bt in 1990. It estimated 3.59Bt in 2011. In terms of net CO₂ released into the atmosphere, in 1990 this was 1058Bt. In 2011 it was 2260Bt.

The big cement producers compare as follows to the CSI data, which reports emissions of 629kg/t. Lafarge reported 592kg/t cementitious in 2011 and 585kg/t in 2012. Holcim reported 584kg/t in 2011 and 579kg/t in 2012. HeidelbergCement reported 621kg/t in 2011. Cemex reported 612kg/t in 2011 and 2012. No data on specific net CO₂ emissions were available for the major Chinese cement producers.

The CSI data shows that the cement industry has made an effort to reduce CO₂ emissions since 1990. Yet this has been counteracted by a rise in cement production. To compensate for the rise in production between 1990 and 2011 the specific net CO₂ emissions per tonne of cementitious product would have had to have fallen to below 300kg/t, a drop of 60%.

Environmentally sensitive readers shouldn't despair yet though as the CSI has demonstrated that emissions and production are gradually separating in the cement industry. From 2010 to 2011 specific net CO₂ emissions per tonne of cementitious product fell from 638kg/t to 629kg/t. If this trend continues - and if it is representative for the cement producers the CSI doesn't cover – then the industry may be getting a handle on its emissions. We may be about to hit peak emissions for the cement industry sooner rather than later.