Global Cement News

LafargeHolcim became Holcim this week with the launch of its new group identity. It also released a manifesto. Corporate names and logos come and go in the swirl of capital but straight up declarations of intent are rarer. Companies in the normally conservative building materials sector don’t tend to do this. This is more the terrain of political movements. So what’s going on?

Figure 1: From a merger of equals to building progress for people and the planet, the LafargeHolcim and Holcim logos.

Looking at the new logo gives us a few clues. The light grey-brown Tetris-style ‘L’ and ‘H’ letters symbolising the ‘merger of equals’ have gone. In its place come two circular symbols that look like they might connect. Together they give the impression of a slanted figure of eight or a lemniscate (infinity symbol). All of this is set to a few shades of blue and green. Could these two symbols be suggesting recycling or the circular economy? Who knows, but hopefully the advertising agency that came up with it was well remunerated. Luckily for us Holcim’s chief executive officer, Jan Jenisch, explained it, “Today marks a milestone for our company in our transformation to become the global leader in innovative and sustainable solutions.”

The manifesto is clearer. Entitled ‘Building progress for people and the planet’ it lays out some of the problems facing the world, such as population growth, urbanisation and climate change mitigation. It then addresses how Holcim is already tackling these issues and how it wants to go further in becoming part of the answer. This is the big vision so it doesn’t trouble itself with the detail on how, for example, the company is going to eliminate process emissions from clinker production on its journey to net zero. This is after all the big pitch to hearts and minds. It also doesn’t stain its fingers with anything suggesting who is going to pay for this grand noble ambition. We’ll have to wait for the next investor’s event to discover how much of this dream washes over into the private equity and pension fund crowd.

In Holcim’s defence, as one of the world’s largest building materials producers, it needs to carve itself a grand vision to occupy within a future preoccupied with climate change. Pretty much everyone in the developed world uses products manufactured by Holcim and its competitors even if they don’t realise it. Yet they are increasingly becoming more aware of the negative issues raised by environmental campaigners. Over in the developing world, adequate housing and infrastructure provision are live political issues for many as economies grow. Threading the needle to tie these trends together is quite the challenge for Holcim and the others. As a public company it serves its shareholders, but, as a multinational wedged in the middle of the climate change debate cascading into global politics, it ultimately answers to everyone. Hence a mission statement or a manifesto makes sense.

Meanwhile, for a glimpse on the Chinese approach to these kinds of problems, China National Building Materials (CNBM) subsidiary China Building Materials Academy (CBMA) signed a knowledge sharing agreement this week with the Canada-based International CCS Knowledge Centre to collaborate on carbon capture technology. The project plans to start with a 155kg CO2/day pilot on an active cement plant kiln. If successful, the study could lead to CNBM rolling it out across its entire cement operations. This would be hugely significant globally and given the scale of the Chinese industrial sector there’s also a reasonable chance it could happen at speed. If this occurred CNBM could leave the politics to its owner, the Chinese government.

Burkina Faso: The Burkina Faso Cement Association has elected Abdelali Temsamani as its president. Temsamani has been the director general of Ciments d'Afrique (CIMAF) Burkina Faso since 2018. The association also elected Abdoul Rahim Kanazoe, the director general of CIMFASO, as its secretary general, according to Burkina 24. The association was formed in 2016 to support the local cement sector.

US: The Portland Cement Association (PCA) has appointed Dave Nepereny as an honorary member. The role is awarded to those who, in the opinion of the PCA board of directors, have rendered outstanding service to the cement industry and the association. Nepereny was a former chief executive officer at Buzzi Unicem and as a member of the PCA board of directors, he served as a former chairman from 1994 - 1995. He also served as a board member to former PCA sister organisation, CTLGroup.

“Dave was actively involved with multiple aspects of PCA, setting an example as a former Chairman and chair for multiple committees, including the Membership Development, Market Development Council, and the Administrative council,” said PCA chairman and president of GCC of America, Ron Henley.

Portugal: Semapa subsidiary Secil is spending Euro86m on modernising its Outão cement plant in Setúbal. The Dinheiro Vivo has reported that the work will turn the facility into ‘the most sustainable cement plant in Europe,’ according to the company. It will reduce CO₂ emissions by 20%, end fossil fuel use and establish waste heat recovery to supply 30% of the plant’s electrical power needs. The government has granted the ‘Project of National Interest’ Euro14.5m in funding. The project will also expand the cement plant’s capacity by 30% to 1.3Mt from 1.0Mt.

Chief executive officer Carlos Abreu said "We have the ambition of reaching carbon neutrality in 2050 and this project is a step in that direction. Others will follow." He added "The Asian and American blocs are not always facing that direction, but the path is made by walking... and we will get there." Regarding the timing of the project, Abreu said "Secil was a very brave company here. The project was decided in 2019 before the pandemic broke out... We kept it, despite the fact that knowing that the pandemic was going to be, and is being, very difficult, but we believe that we had no other alternative."

Spain: Cement consumption grew by 17% year-on-year to 7.31Mt of cement in the first half of 2021 from 6.23Mt in the same period in 2020. Oficemen, the Spanish cement association, said that the figure for 2021 remained 1.4% below the same period in 2019 though. However, the consumption in June 2021 was looking promising compared to both the same month in 2020 and 2019. Exports increased by 36% to 3.8Mt in the reporting period. The association celebrated this figure but warned that high electricity and CO2 taxes could potentially have a negative effect on future exports by the sector.