Global cement firms are raising capital to expand capacity and develop efforts to achieve carbon neutrality
The global cement industry outlook remains robust over
the next 12 months. Driven by higher infrastructure spending and undertaking of
massive affordable housing programs is expected to drive cement consumption in
the global market. Consequently, many players have been seen expanding their
production capacity to capitalize on the projected demand for cement from the
short to medium-term perspective.
To expand their production capacity, cement
manufacturers have been raising capital through share sales. For instance,
·
In March
2023, Shri Keshav Cement & Infra Limited, a leading manufacturer of cement,
announced a fund-raising initiative through the preferential issue of equity
shares and equity share warrants. Through the initiative, the firm is intending
to raise nearly INR 460 million, which the firm plans to use for expanding
cement production capacity. Currently, the firm produces 3,50,000 MTPA and
plans to expand the capacity to 10,00,000 MTPA from the short to medium-term
perspective. The fund-raising initiative will also enable the firm to further
continue on its growth trajectory.
·
Adani
Group, which entered the Indian cement market in 2022, is also seeking to raise
funds through the secondary sale of shares. The firm is planning to sell a 4.5%
stake in Ambuja Cements to raise over INR 30 billion. Like many other cement
manufacturers in India, Adani Group is also planning to expand its production
capacity from the short to medium-term perspective. In March 2023, Adani Group
announced that the conglomerate is planning to set up two cement manufacturing
plants in Andhra Pradesh.
Apart from expanding manufacturing capacity, global
cement firms are also seeking to raise capital for driving innovation in the
cement sector.
·
In March
2023, Taiheiyo Cement Corporation announced that the firm had raised funding
from the Development Bank of Japan. The capital has been raised through the
transition-linked loan. The firm is planning to use the capital for developing
its efforts to achieve carbon neutrality.
In the Middle East, Najran Cement also announced that
the firm had secured US$22.66 million in loan from Al Rajhi Bank to accelerate
its growth trajectory in the region over the next three to four years.
Read More - Capacity expansion is on the cards for many global
cement manufacturers in 2023
Read More - Growing investment in the paints business to drive the
competitive landscape in the Indian market
Apart from funding raising initiatives through share
sales and loans, cement firms are also entering into strategic alliances to
drive innovation in the sector by developing cement with a lower carbon
footprint.
·
In March
2023, Progressive Planet and Lafarge Canada announced that the firms have
entered into a strategic collaboration. The initiative is aimed at developing
cement with a lower carbon footprint. Under the alliance, Lafarge will buy the
PozGlass produced by Progressive Planet. Notably, PozGlass is manufactured from
100% recycled consumer glass and has been designed to replace many of the
carbon-intensive ingredients that are used in cement.
From the short to medium-term perspective, ConsTrack360 expects more such strategic
collaborations to take place in the global cement sector, as manufacturers
continue to develop their effort to achieve carbon neutrality. These alliances
will keep aiding innovation and the competitive landscape in the global cement
industry over the next three to four years.
europe construction
chemical market report, Global
construction chemical market research, asia
pacific construction chemical market research
Comments
Post a Comment