Global Cement News

Ireland/UK: Mannok says that it has undertaken extensive preparatory measures to help its operations continue smoothly when the Brexit transition period ends on 31 December 2020. While keeping operations unchanged, the group has formed new legal entities such as Mannok GB, which will deal with UK customers. The group acknowledged that prices would depend on the future tariff arrangement between the UK and the EU, but would remain in line with market pricing. It added that the same effects would impacts competitors, who import significant amounts of raw materials from Europe.

The group said that it has been working closely with suppliers for over 18 months to ensure the security of its supply chains. It sources almost all raw materials for cement production from its own reserves.

Chief financial officer Dara O’Reilly said, “A key priority for us in all of this was to ensure that the service we can provide to our customers in a post-Brexit environment is as seamless as possible. We’ve made the changes to our structures; we’ve made the changes to how we operate and as a result of that, regardless of the outcome of the Brexit negotiations, we’re ready.”

US: CalPortland has launched a new fleet of 24 compressed natural gas (CNG)-fuelled bulk hauler trucks. The company has also commissioned a CNG fuelling hub at its Oro Grande cement plant in California. Ozinga Energy installed the hub, which uses biogenic Redeem methane from organic and agricultural waste at its fast-fill station and 24 slow-fill stations. The producer says that Redeem will reduce CO₂ emissions per tonne of fuel burned by at least 70%. It predicted a total greenhouse gas emissions reduction of 10,000t/yr.

President and chief executive officer (CEO) Allen Hamblen said, “By adding 24 cement bulk hauler trucks and a fuelling centre at our Oro Grande cement plant, CalPortland continues to demonstrate our on-going commitment to achieving zero emissions through environmental stewardship and lowering our carbon footprint within the communities where we operate.”

Could the fairy tale of McInnis Cement have ended any other way? The saga of the frequently frozen cement plant in Quebec collided with reality this week when it emerged that the pension fund Caisse de depot et placement du Québec (CDPQ) and the provincial government are poised to let it go. The new buyer, Votorantim Cimentos, plans to form a new 83%-owned subsidiary based in Toronto to combine the assets of McInnis Cement and St Marys Cement. The proposed change in management marks a transition to a large multinational building materials producer.

Normally, Global Cement Weekly would end on a summary for its last outing of the year but the government involvement in the McInnis Cement’s ownership has created a very public tale of hope and hubris. Attempting to build a brand new integrated cement plant in rural Quebec might not seem exciting but this story has it all, from corporate competition to sustainability issues to clinker export markets. Readers looking for a global recap of 2020 should refer to the December 2020 issue of Global Cement Magazine with news and cement producer round-ups.

The McInnis story began in early 2014 when the Quebec provincial government announced that it would invest US$350m in a new 2.2Mt/yr cement plant and port facility to be operated by McInnis Cement at Port-Daniel. The project was championed by the Beaudoin-Bombardier family, which was to foot the larger share of the US$1bn total bill. Local press compared the gambit of entering a new market with established players as being similar to Bombardier's approach to its C Series airliner that was eventually bought out by Airbus: risky but potentially lucrative.

As the plan developed, competitors in both Canada and the US took exception to an export-focused cement plant being propped up by government money, political parties got involved over how public money was being spent and environmentalists became upset. The concerns of the latter were partially bypassed in order to get the project started. Then, when the cost over-ran by US$350m, the provincial government said it wasn’t spending any more and the CDPQ took over. The plant was inaugurated in September 2017 and the CDPQ started looking for a buyer or new investors at the start of 2018. It rowed back from this position in early 2019 when its chief executive officer told local press that the pension and insurance fund was ‘convinced’ of the potential of McInnis Cement. Votorantim was publicly linked to the company in September 2020 and the agreement followed this week.

It’s unknown how much Votorantim has paid to buy control of McInnis Cement but its presence in the Great Lakes region and the east coast will be augmented by this deal. Following the acquisition it will control two integrated plants and two grinding plants in the Midwest US, two integrated plants in Ontario, and now the McInnis integrated plant in Quebec. The combined integrated production capacity will rise to around 7Mt/yr. Things are looking up for the company with the Brazilian market recovering despite coronavirus and the US market holding steady so far in 2020.

The drama of McInnis Cement highlights the perils of state investment in heavy industry and the pitfalls of making a risky entry into a saturated market. The bit the Votorantim press release neglected to mention was the loss that the provincial government of Quebec is expected to make on its involvement with the cement plant. Instead it was left to Economy Minister Pierre Fitzgibbon to admit to journalists that the province is prepared to lose up to US$370m on the affair if it can’t recoup its costs after other creditors take their slices over the next decade or so. One consolation that was reported in the local press was that jobs and facilities at the McInnis plant would be supported until at least 2029. The story of the cement plant at Port-Daniel continues for now but it’s likely to be far less public as private companies take it into the unknown.

Global Cement Weekly will return on 6 January 2020

China: China Resources Cement has appointed Li Fuli as the chairman of its board of directors and the chairman of its nomination committee. He suceeds Zhou Longshan and Ye Shukun respectively in the roles.

Li, aged 54 years, is currently the deputy general manager and chief accountant of China Resources Group. He joined the organisation in mid-2018. Prior to this he worked for China Minmetals Corporation, a Beijing-based metals and mineral trading company, from 1991 to 2018. He holds degrees in economics and business administration.

Germany: Bosch Rexroth has appointed Steffen Haack as its executive board member responsible for engineering from the start of 2021. His tasks will include managing the engineering activities of the company and responsibility for the three business units which constitute the Industrial Hydraulics division. He will take over the role as Head of Engineering from Heiner Lang, who will leave the company by the end of 2020. Haack will retain his role as head of the Industrial Hydraulics business unit. Marc Wucherer, aged 51 years, will be put in charge of the Factory Automation division.

Haack, aged 53 years, holds a doctorate degree in fluid technology. He started his career at Bosch in 1996. Since 2017, Haack has managed the Industrial Hydraulics business unit, for which he remains responsible. Previously, he was a member of the executive board of Bosch Rexroth from 2015 to 2017. In addition to his professional activities, Haack is a member of the Executive Board of the Fluid Technology Association at the Mechanical Engineering Industry Association (VDMA) and the Advisory Board of the German Mechanical Engineering Summit.

Germany-based Bosch Rexroth is a supplier of drive and control technologies for a variety of industries including cement.