Global Cement News

Australia: Construction company SIMPEC, a subsidiary of WestStar, has won a new US$68m contract to work on the on-going expansion of Cockburn Cement’s Kwinana grinding plant. The work involves the construction of two 100t/hr grinding units, a 110,000t raw materials store and a reclamation system. Business News has reported that the total value of the Kwinana grinding plant expansion is US$249 - 272m. Cockburn Cement has committed total investments of US$129m to the project, of which US$7.44m consists of an existing contract with SIMPEC.

SIMPEC managing director Mark Dimasi said "This new contract demonstrates the company's track record of delivering for its clients. We are very pleased to secure this work and are committed to maintaining a long-standing relationship with Cockburn Cement and Adbri. I would like to thank Cockburn Cement for this opportunity to deliver such a high-profile local project and would also like to thank our team for their commitment in helping secure this contract.”

Mark Irwin, CEO of Cockburn Cement’s parent company Adbri said "The balance of work for the agreed scope remains consistent with Adbri's previously announced cost estimate and project schedule for the Kwinana Upgrade Project."

Egypt: Sinai Cement’s consolidated sales more than doubled year-on-year during the first half of 2023, to US$76.5m from US$33.2m, Arab Finance News has reported. As such, the company succeeded in reducing its net losses to US$2.58m, compared to US$3.31m in the first half of 2022.

Australia: The Ministry of Climate Change, Energy, the Environment and Water is holding a consultation over the possible implementation of a Cross-Border Adjustment Mechanism to penalise imported cement for its CO₂ emissions in line with the Australian cement industry’s emissions reduction goals. The Guardian Australia newspaper has reported that the government expects to publish its report on the policy in mid-late 2024. The government began implementing new CO₂ emissions limits for Australia’s 200 largest industrial emitters in July 2023. It expects these to eliminate 200Mt-worth of CO₂ emissions over the period up to 2030. Climate Change and Energy Minister Chris Bowen said “80% of these companies, and 86% of covered emissions, are covered by corporate net zero commitments.” Australia is committed to net zero CO₂ emissions by 2050.

With regard to the proposed Cross-Border Adjustment Mechanism, Bowen said “It’s a potentially important mechanism to ensure domestic sovereign capability and supply. One of the biggest challenges we face is supply-chain crunches, and any measure which helps us deal with that is a positive thing for the transition.”

Denmark: FLSmidth’s sales were US$1.82bn during the first half of 2023, up by 28% year-on-year from US$1.43bn in the first half of 2022. Its earnings before interest, taxation and amortisation (EBITA) fell by 7%, to US$83.1m from US$89.3m. The supplier recorded a new order intake worth US$1.64m, down by 14% from US$1.9m. New cement orders fell by 33% amid reduced demand, especially for FLSmidth’s product offering. In line with its de-risking strategy, FLSmidth continued to accept only those product orders that also supported its service business. The company maintained its guidance of cement sales of US$879m and an EBITA margin of 5.5 – 6.5% for the full-year 2023.

CEO Mikko Keto said “We have maintained the strong momentum on our key transformation efforts during the second quarter of 2023. While we have continued to progress on our MissionZero agenda, our safety performance has been unsatisfactory and mitigating actions have been taken.” Keto continued “While our cement business remains on target for the full year, its short-to-mid-term market outlook has deteriorated. Consequently, continued organisational rightsizing is required to preserve profitability. Going into the second half of the year we remain positive, with a continued strong focus on executing our core transformation efforts.”

Spain: Residents of Cartagena, Murcia, have protested Cemex’s plans to begin mining pozzolan at new sites locally. The Murcia Plaza newspaper has reported that the protestors are calling for a mining ban, in line with their interpretation of the area’s Rural Area of Special Environmental and Social Sensitivity designation.