India: Dalmia Bharat says its has executed definitive agreements with Jaiprakash Associates to buy cement, clinker and power plants. The latest part of the acquisition process has cleared Dalmia Bharat to buy the JP Super Cement plant in Uttar Pradesh for US$183m, subject to various clearances and approvals. In addition, Dalmia Bharat has also agreed to buy a 74% share of Bhilai Jaypee Cement for an enterprise value of US$81m and is in the process of signing a seven-year lease agreement with Jaiprakash Power Ventures for its 2Mt/yr Nigrie Cement grinding plant in Madhya Pradesh. Dalmia Bharat will have the option to purchase the Nigrie unit anytime within the lease period for an enterprise value of around US$30m.

Dalmia Bharat agreed to buy selected assets from Jaiprakash Associates for US$684m in December 2022. Cement and grinding plants under the deal are situated in Chhattisgarh, Madhya Pradesh and Uttar Pradesh. The Competition Commission of India (CCI) approved the deal in February 2023.

Australia: Adbri says that the cost of an upgrade at its Kwinana grinding plant is now estimated to be US$255 – 277m following an engineering design, schedule and budget review. The original estimate for the project in December 2020 was US$130m. The cement producer has blamed the increase in cost on mounting construction costs, a labour shortage and supply chain issues. Commissioning for the upgrade remains scheduled for the second quarter of 2024 with full operation forecast for the third quarter.

Adbri’s chief executive officer Mark Irwin said, “While we are disappointed the project cost is materially higher than initially forecasted, we remain confident the Kwinana Upgrade will support solid returns over the long term. The project continues to have a positive net present value. We have used this review period to also strengthen our project delivery team, adding experience and capability.” He added “The consolidation of Adbri’s two existing cement production sites in Western Australia into a single, world class facility at Kwinana positions Adbri to take advantage of continued growth in the local market. We also expect to deliver greater operational savings than originally forecasted.”

India: Mahendra Singhi, the head of Dalmia Cement (Bharat), says that the company has past the peak of commodity price inflation. Its income from operations grew by 10% year-on-year to US$1.66bn in the 2023 financial year from US$1.38bn in the 2022 financial year. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 5% to US$283m from US$297m. Its sales volumes of cement increased by 16% to 26Mt from 22Mt.

Mahendra Singhi, the managing director and chief executive officer of Dalmia Cement (Bharat), said “Our persistent efforts, on enhancing sustainability of our operations and rationalisation of our operating costs, have enabled us to mitigate the adverse impact of inflation and deliver stable earnings performance.” He added “With robust demand outlook, steady cement prices and the peak of commodity price inflation behind us, we are expecting profitability to gradually improve from here on.”

Sustainability targets that the group promoted in its fourth quarter results statement included reaching a carbon footprint of 463kgCO₂/t of cement. Its renewable energy capacity increased to 166MW in the 2023 financial year from 100MW.

Brazil: Votorantim Cimentos has opened a new terminal in Fortaleza. The 19,000m² unit replaces a previous site in the city in Ceará state. The new terminal location is close to a railway line operated by Ferrovia Transnordestina Logística (FTL) to support logistics. It will supply the northeastern market with cement from the Poty brand and adhesive and mortars from the Votomassa product line. Sustainability features of the new terminal include a recycling system for the water used to wash forklift trucks.

Votorantim Cimentos operates two integrated cement plant in Ceará, at Sobral and Pecém respectively, as well as three terminals.