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Concrete

Reducing Carbon Emissions with SCMs

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Jens Mose and John Terembula, Product Line Management, FLSmidth A/S, introduce the type and availability of supplementary cementitious materials (SCMs) in this first part of a three-part article about the potential to increase the use of SCMs to reduce carbon emissions from cement manufacture. You will find parts two and three in the September and October issues of Indian Cement Review.

While much has been done to reduce emissions from cement production, the calcination of limestone is still a major contributor of harmful pollutants and must be addressed if cement manufacturers are to meet their sustainability targets. Fortunately, a number of supplementary cementitious materials (SCM) are available, which enable cement manufacturers to replace clinker and thus reduce CO2 emissions. However, adoption of these SCMs varies widely on a regional basis. In India and Brazil, for example, it is common to use fly ash and slag to reduce the clinker factor to as little as 65 per cent. In the US, however, the clinker factor remains high at around 95 per cent.
Worldwide, according to the Climate Technology Centre and Network, the ‘average clinker/cement ratio is about 0.81, with the balance comprising gypsum and additives such as blast furnace slag, fly ash, and natural pozzolana.’ The UNEP-sponsored white paper ‘Eco-efficient cements: Potential economically viable solutions for a low-CO2 cement-based materials industry’ suggests a reasonable worldwide average of 0.60 is achievable by 2050.
But how do we get to this figure? With many decades’ experience grinding a wide range of different materials in vertical roller mills, ball mills and hydraulic roller presses, FLSmidth is in a position to share our knowhow to help the industry make strides in reducing its carbon footprint.

Types of SCMs
SCMs include both naturally occurring materials and byproducts of other industrial processes. The Global Cement and Concrete Association (GCCA) groups SCMs according to how they harden : hydraulic SCMs harden in the presence of water (like Portland cement) and include granulated blast furnace slag (GBFS) and burnt shale oil. Pozzolanic materials require the additional presence of dissolved calcium hydroxide (Ca(OH)2) – a byproduct of the hydration of Portland cement – in order to harden. These include fly ash, silica fume, calcined clays, burnt rice husk and natural pozzolans. Hydraulic cements have a higher early age strength, while pozzolans continue to gain strength for a longer period, giving a higher long-term concrete strength. Both have been proven in construction applications. Limestone is not classified as either hydraulic or pozzolanic but also contributes to the hardening of concrete, putting it in an SCM category all of its own.

Table 1: Common types of SCMs

Find parts two and three of this article in the September and October issues of Indian Cement Review:
Part 2: Equipment selection for SCM grinding, Indian Cement Review, September 2023
Part 3: Expanding SCM use in the future, Indian Cement Review, October 2023

1 https://www.ctc-n.org/technologies/clinker-replacement
2 https://wedocs.unep.org/bitstream/handle/20.500.11822/25281/eco_efficient_cements.pdf
3 https://gccassociation.org/sustainability-innovation/health-safety-cement-innovation/clinker-substitutes/

Concrete

Construction Costs Rise 11% in 2024, Driven by Labour Expenses

Cement Prices Decline 15%, But Labour Costs Surge by 25%

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The cost of construction in India increased by 11% over the past year, primarily driven by a 25% rise in labour expenses, according to Colliers India. While prices of key materials like cement dropped by 15% and steel saw a marginal 1% decrease, the surge in labour costs stretched construction budgets across sectors.

“Labour, which constitutes over a quarter of construction costs, has seen significant inflation due to the demand for skilled workers and associated training and compliance costs,” said Badal Yagnik, CEO of Colliers India.

The residential segment experienced the sharpest cost escalation due to a growing focus on quality construction and demand for gated communities. Meanwhile, commercial and industrial real estate remained resilient, with 37 million square feet of office space and 22 million square feet of warehousing space completed in the first nine months of 2024.

“Despite rising costs, investments in automation and training are helping developers address manpower challenges and streamline project timelines,” said Vimal Nadar, senior director at Colliers India.

With labour costs continuing to influence overall construction expenses, developers are exploring strategies to optimize operations and mitigate rising costs.

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Concrete

Swiss Steel to Cut 800 Jobs

Job cuts due to weak demand

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Swiss Steel has announced plans to cut 800 jobs as part of a restructuring effort, triggered by weak demand in the global steel market. The company, a major player in the European steel industry, cited an ongoing slowdown in demand as the primary reason behind the workforce reduction. These job cuts are expected to impact various departments across its operations, including production and administrative functions.

The steel industry has been facing significant challenges due to reduced demand from key sectors such as construction and automotive manufacturing. Additionally, the broader economic slowdown in Europe, coupled with rising energy costs, has further strained the profitability of steel producers like Swiss Steel. In response to these conditions, the company has decided to streamline its operations to ensure long-term sustainability.

Swiss Steel’s decision to cut jobs is part of a broader trend in the steel industry, where companies are adjusting to volatile market conditions. The move is aimed at reducing operational costs and improving efficiency, but it highlights the continuing pressures faced by the manufacturing sector amid uncertain global economic conditions.

The layoffs are expected to occur across Swiss Steel’s production facilities and corporate offices, as the company focuses on consolidating its workforce. Despite these cuts, Swiss Steel plans to continue its efforts to innovate and adapt to market demands, with an emphasis on high-value, specialty steel products.

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Concrete

UltraTech Cement to raise Rs 3,000 crore via NCDs to boost financial flexibility

UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore

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UltraTech Cement, the Aditya Birla Group’s flagship company, has announced plans to raise up to Rs 3,000 crore through the private placement of non-convertible debentures (NCDs) in one or more tranches. The move aims to strengthen the company’s financial position amid increasing competition in the cement sector.

UltraTech’s finance committee has approved the issuance of rupee-denominated, unsecured, redeemable, and listed NCDs. The company has experienced strong stock performance, with its share price rising 22% over the past year, boosting its market capitalization to approximately Rs 3.1 lakh crore.

For Q2 FY2025, UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore, below analyst expectations. Revenue for the quarter also fell 2% YoY to Rs 15,635 crore, and EBITDA margins contracted by 300 basis points. Despite this, the company saw a 3% increase in domestic sales volume, supported by lower energy costs.

In a strategic move, UltraTech invested Rs 3,954 crore for a 32.7% equity stake in India Cements, further solidifying its position in South India. UltraTech holds an 11% market share in the region, while competitor Adani holds 6%. UltraTech also secured $500 million through a sustainability-linked loan, underscoring its focus on sustainable growth driven by infrastructure and housing demand.

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