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Cement sector set to bounce back

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Deven Choksey, MD at KR Choksey Shares and Securities, feels that considering the number of project clearances granted already, when these projects get into the commissioning mode, infrastructure activity would begin in earnest. He says that cement falls in that particular bracket and stands most to be benefited. This will definitely be reflected as bounce- backs in stock prices. "More importantly, you are also seeing a consolidation happening in this particular space. We saw the JP transaction taking place. We are now talking about the Sagar Cement transaction which is taking place in Andhra Pradesh.

So, from all perspectives you probably will find that having consolidated the capacities in a few hands, they may assume higher amount of pricing power, going forward. That is another reason for which the buying has also started happening into commodities like cement," he said. He also added, "To my mind, they are not extensively traded even at this point of time and they hold a lot of potential particularly the capacity utilisation which will start increasing; they also have the advantage of higher capacity production and at the same time, pricing power. I think overall, cement looks to outperform, going forward as well.

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Concrete

Holcim UK drives sustainable construction

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Holcim UK has released a report titled ‘Making Sustainable Construction a Reality,’ outlining its five-fold commitment to a greener future. The company aims to focus on decarbonisation, circular economy principles, smarter building methods, community engagement, and integrating nature. Based on a survey of 2,000 people, only 41 per cent felt urban spaces in the UK are sustainably built. A significant majority (82 per cent) advocated for more green spaces, 69 per cent called for government leadership in sustainability, and 54 per cent saw businesses as key players. Additionally, 80 per cent of respondents stressed the need for greater transparency from companies regarding their environmental practices.

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Concrete

GCCA releases LCR system

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The Global Cement and Concrete Association (GCCA) has launched the Low Carbon Ratings (LCR) system for cement and concrete, a new global rating based on products’ carbon footprints. The system uses a clear AA to G scale to help customers prioritise sustainability in material selection across construction sectors worldwide. The GCCA says that the LCR system is designed to be easily recognisable, with a simple visual graphic that indicates a product’s rating and provides consistency and comparability to other products.

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Concrete

FLSmidth opens eco-friendly plant in Casablanca

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FLSmidth has inaugurated a €21 million mill liner manufacturing plant in Casablanca, covering 11,250m² with a production capacity of 6,500 tonnes annually. The LEED-certified facility significantly reduces carbon emissions by up to 56 per cent and fully recycles water used in the manufacturing process. Up to 250 jobs will be created in the Valparaíso region. Mikko Keto, CEO, highlighted the plant as a symbol of FLSmidth’s commitment to sustainable mining and community engagement in South America. Earlier in 2024, the Denmark-based company announced plans to sell its cement division to sharpen its focus on mining operations.

 

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