Egypt: For the fourth quarter of 2014, Suez Cement reported a 2.5% year-on-year increase in revenues and 11.5% year-on-year growth in earnings before interest, tax and depreciation (EBITDA). Its net profit after non-controlling interests increased by 15.2% during the quarter.

For the entirety of 2014, Suez Cement's sales increased by 22%, while recurring EBITDA improved by 8.8% compared to 2013. However, higher corporate income taxes coupled with an absence of foreign exchange gains were responsible for an 8.4% drop in net profit after non-controlling interests. EBITDA gains were also driven by Suez Cement's downstream activities in transportation and ready-mix cements, as well as its paper bags subsidiary, which saw an EBITA increase of 26.5%. Cement activities accounted for a gain of 6.3%.

The strong revenue performance was largely due to cement price increases due to an unprecedented surge in production costs and product shortages. Overall, clinker production decreased as a result of severe energy supply issues that impacted each of Suez Cement's plants and subsidiaries differently. The Tourah plant felt the greatest pressure from expensive clinker imports that were necessary to satisfy Egypt's growing demand.

Suez Cement was also negatively affected by energy costs (gas, mazut and electricity) that rose by 25 - 35% in 2014. It did not let the economic pressures, including a 40% drop in industrial production capacity, impact its employment rates or benefits packages. This was partially due to Suez Cement's commitment to the implementation of energy-efficient processes throughout the five plants, as well as further emphasis and utilisation of alternative fuels, which helped mitigate the drop in production as well as limit the impact from growing clinker imports. Suez Cement will go ahead with the deployment of coal power at all five plants over the next two years, a factor that is also expected to put a stop to some importing activities.

Suez Cement believes that the construction industry's recovery will continue to attract new investment. This is in addition to positive economic growth thanks to Egypt's new-found government stability and the future implementation of several large national projects. However, power cuts and fuel shortages are likely to remain major issues for cement producers. Fuel and energy shortages will also prolong challenges to meeting cement production targets.

The recent closure of the Tourah I plant is one example of Suez Cement's continued commitment to reducing its environmental impact. The company remains focused on investing in energy-efficient initiatives and environmentally-sound programs. This includes developing alternative fuel strategies that incorporate waste-derived fuels and coal, which will shift the company's energy mix and improve its production capabilities by reducing dependence on natural gas and mazut.

Australia: Adelaide Brighton boss Martin Brydon said that he would pursue funding from the Abbott Government's US$2.55bn Emissions Reduction Fund (ERF) as Adelaide Brighton accelerates its alternative fuel use to head off its rising gas bill. The ERF is the centre-piece of the government's direct action climate policy and the first auction for funding starts on 15 April 2015.

Adelaide Brighton has a total energy bill of around US$130m/yr. Brydon said that the group will save US$6m/yr from the repeal of the carbon tax. "We are energy-intensive and capital-intensive. Anything that happens that can reduce the cost of energy is critical," said Brydon.

Adelaide Brighton's Birkenhead cement plant in south Australia, which recently expanded its cement production capacity to 750,000t/yr, generates 15% of its energy from waste wood used in construction. Brydon said that he plans to take that number to 30% and that he 'will certainly' be bidding for grants from the ERF. "The cost of that waste wood energy is significantly below the cost of natural gas," said Brydon.

In 2014, Adelaide Brighton reported a 14.3% rise in net profit to US$136m and a 9% rise in revenue to US$1.06bn. The profit and revenue numbers were both records for the company, although after stripping out one-off items the underlying profit was US$132m. Strong residential housing activity in NSW and Queensland, work on the Pacific Highway upgrade and ongoing demand from resource projects in western Australia and the northern regions buoyed sales. Adelaide Brighton said that it expects price increases in 2015 across all of its products.

In August 2014 the company acquired two concrete businesses and a quarry. Brydon said that he is looking for other businesses to buy, but opportunities for quality long-term assets were 'few and far between.'

UK: SITA UK has completed the construction of its Solid Recovered Fuel (SRF) manufacturing plant at Malpass Farm in Rugby, Warwickshire. The plant will undergo a series of commissioning tests over the next few months before starting full-scale production of Climafuel SRF. This will be used to power the kiln at the adjacent Cemex UK Rugby cement plant.

The residual waste material arriving at the site will primarily be collected from commercial and industrial businesses across the region that would otherwise go to landfill. Once received on site any metals, plastics and paper will be extracted for recycling. Similarly, materials with a high chlorine content, which could damage the kiln, will also be extracted. Any residual waste material that is removed from the production process will be processed into refuse derived fuel (RDF) for use in waste-to-energy applications.

To produce the SRF, the remaining material is sifted, shredded and blended while being continuously analysed using infrared technology. This allows the plant operators to ensure that the fuel, which has a confetti-like consistency after processing, has the precise chemical composition and calorific value required by Cemex UK.

SITA UK's Head of Alternative Fuels, Andy Hill, said, "The residual waste material that will be delivered to this facility would have gone to landfill but, instead, we are going to take out anything that can be recycled and then turn what's left into a replacement fuel."

"We have been producing this fuel very successfully at our sister plant at Landor Street in Birmingham for the past couple of years, but this new facility implements the latest technology and will substantially increase our production capacity," continued Hill. "Between the two plants, we'll be producing around 250,000t/yr of Climafuel."

SITA UK is currently also investing in new SRF manufacturing facilities at the Port of Tilbury in Essex, which are currently under construction. SITA UK currently supplies SRF to CEMEX UK and to CEMEX Latvia.

Belarus: Belarusian manufacturers are expected to export 1.8Mt of cement in 2015, including 1.3Mt to be supplied to Russia's Eurocement, according to Construction minister Anatol Chorny. Belarus sold 980,000t of cement to Eurocement in 2014. Belarus' cement output is expected to total 6.1Mt in 2015, up from 5.8Mt in 2014.

"This year we have signed an exclusive contract for the supply of 1.3Mt," said Chorny. "The contract is advantageous to Belarus because 50% of the total amount shall be paid in advance and the rest shall be paid within 10 days of the delivery date. If the price of cement in the Russian market is lower than in Belarus, the Russian company will cover the losses. If the price will be higher, the difference will be equally divided." Belarus will also export cement to Russia's Kaliningrad exclave, Poland and Lithuania in 2015.

Belarus' AAT Krychawtsementnashyfer in Krychaw, Mahilyow, operated at a loss in 2013. This was caused by its old production plant, which still uses natural gas to manufacture cement. In contrast, the company's new production facility generated a profit of about Euro676,000 in 2014. To reduce the cost of cement production, Krychawtsementnashyfer installed a cement kiln fuelled by waste tyres in 2014 and plans to start using coal dust as a fuel in 2015, according to Chorny.