October constructsteel newsletter

Approximately €7 billion is to be made available for European transport infrastructure projects by the European Union. Launched under the Connecting Europe Facility, the majority of projects funded under this will help to increase the sustainability of the overall transport network in the EU. This will help the EU to meet the European Green Deal objective of cutting transport emissions by 90% by 2050. Of the funding, €5.1 billion will be for infrastructure projects on the Trans-European Transport Network

The UK Government has published its National Infrastructure and Construction Pipeline document for 2021, setting out a plan for £650 billion of investment in infrastructure projects, over the next 10 years. The largest share of the investment has been earmarked for the transport sector, which will receive some €82 billion between now and 2025, with energy projects potentially accounting for more than €60 billion over the same period.

Construction technology firm Autodesk has released a new study on the prevalence of data usage in construction and the losses that result from data errors. It shows that in 2020, bad data may have caused $1.8 trillion in losses worldwide and may be responsible for 14% of avoidable rework, which amounts to $88 billion in costs.

In its ongoing campaign to modernise the country’s construction sector, the government of Singapore will offer up to 80% funding for construction companies who adopt robotics and other technologies to reduce dependency on low-skilled migrant labour. The joint initiative of the Building and Construction Authority and Infocomm Media Development Authority aims to boost productivity by automating labour-intensive tasks like painting, drilling and carrying materials on-site.

Metal consumers in China, including the construction firms, are readying themselves to face potential supply shocks after power curbs and shortages forced several smelters to cut production in recent weeks. Output curbs tied to emissions caps over the winter are nothing new to China’s steel and aluminium makers. This year, though, power constraints dragged on through summer because of low coal supplies and strong demand, leading to forced shutdowns of energy-intensive operations and worries about sufficient heating as cooler weather approaches.

Housing sales across the top 7 cities in India surged 113% y-o-y in Q3 2021 – from approx. 29,520 units in Q3 2020 to nearly 62,800 units in Q3 2021. Significantly improved job security and robust hiring in the IT/ITeS and financial sectors as well as record-low home loan rates and growing homeownership sentiment are the main reasons for the increase.

New construction contractor awards in the UAE are estimated to be worth $24.7 billion in 2021, as the Gulf country paves the way for a post-Covid rebound on the back of increased government expenditure and a fresh injection of foreign investment. Real estate sector holds the lion’s share of new contractor awards in 2021, valued at $12.6 billion, followed by the oil and gas sector ($8.4 billion); power & water construction projects ($2.2 billion).

According to a survey run in the US by the con tech company OpenSpace, 80% of construction companies said that they are just as productive or more productive when employees work remotely. Additionally, 52% of respondents said their field teams had never worked remotely but now, 92% say that they will allow occasional or frequent remote work.

Building material company LafargeHolcim and subsidiary waste management service company Geocycle are partnering with the U.S. Army Corps of Engineers to study the potential use of construction and demolition materials for energy renewal and mineral recycling, according to a press release. The research will focus on turning waste and raw debris into alternative construction materials and fuel supplies.

HeidelbergCement, the second-largest cement maker in the world, has announced it has acquired a 45% stake in US-based construction software firm Command Alkon, a provider of software and technology used to manage supply chains and construction materials. The partnership aims to advance digital transformation within the heavy building materials supply chain sector.

Austin-based construction technology company ICON, in partnership with the Texas Military Department, has constructed a 3,800-square-foot barracks on a Texas military base. The company claims it is the largest 3D printed structure in North America. The barracks was constructed using an in-house ICON technology known as the Vulcan construction system.

US-based technology company Hexagon has announced that it is now offering ultra-highresolution 2D and 3D digital twins of major cities as an off-the-shelf product through the HxGN Content Program. the 3D digital twins will enable city administrations and infrastructure providers to manage and monitor critical assets, assess and model risks, and support the visualisation of new infrastructure projects with the goal to create smarter, more sustainable cities.

A UK cement kiln has successfully been operated using a net zero fuel as part of a world first demonstration using hydrogen technology. Led by the Mineral Products Association, Hanson UK and made possible by Department for Business, Energy and Industrial Strategy funding, the trial used a mix of 100% net zero fuels including hydrogen for commercial scale cement manufacture for the very first time.

The hugely indebted Chinese property giant Evergrande has missed interest payments to overseas investors for the second time at the ned of September. Once China’s top selling developer, the company is now facing debts of more than $300bn. Beijing is unlikely to intervene directly to resolve Evergrande’s crisis in the form of a bailout, but analysts say it is wary of a messy collapse that could fuel unrest.

Dutch construction company BAM has agreed the sale of its German building company BAM Deutschland to Zech Group and Gustav Zech Foundation. The company plans to focus on growth markets where it has “scale and competitive advantage” – this means the Netherlands, the UK and Ireland, but not Germany. Link In the meantime, Swiss construction company Implenia intends to sell its building construction business in Austria, to Zech Bau Austria, a subsidiary of Zech Group, in order to to focus on its defined core portfolio in accordance with its strategy.

Global building solutions company Holcim has signed an agreement with CSN (Companhia Siderúrgica Nacional) for the divestment of its business in Brazil for an enterprise value of US$1.025 billion. This deal includes Holcim’s five integrated cement plants, four grinding stations, six aggregates sites and 19 ready-mix concrete facilities. Holcim has said that it will use the proceeds to invest in its Solutions & Products business, building on the Firestone acquisition.

Swedish construction company Skanska has announced a significant ramping up of its carbon emissions target, with its sights now set on a 70% reduction by 2030. The Swedish construction giant previously set a goal of a 50% reduction, measured against its own 2015 levels. Link In the meantime, Dutch consulting engineer Arcadis has announced plans to reach net zero greenhouse gas emissions across its global operations by 2035. To meet the target, Arcadis has introduced a range of goals, including plans to counterbalance 100% of emissions through “high quality offsets” and the use of renewable electricity at all its sites before 2022.

Indian construction conglomerate Larsen & Toubro plans to double its US$21 billion revenue in the next 5 years, benefitting from government infrastructure spend as well as the pick up in the private sector. International ordering outlook remains strong which currently contributes 20% of the total order book for the company. Middle East has been one of its key growth regions constituting almost 61 per cent of the international order book worth $9.3 billion.

UK-based building materials supplier SIG said its annual earnings would top expectations but joined other British companies in warning that severe supply constraints will likely persist for several months. SIG, which sells roofing and insulation materials in Britain and a handful of European countries, said trading was “solid” during July-August despite the supply disruptions, which are being worsened by a shortage of truck drivers.

French construction and concessions giant Vinci, along with two other Paris headquartered companies – gas technology firm Air Liquide and energy firm TotalEnergies – has launched a huge investment fund, dedicated to the development of clean hydrogen infrastructure solutions. With major businesses in Europe, the Americas and Asia participating, the alliance says it plans to build a fund totalling €1.5 billion, which will be invested across the value chain of renewable and low carbon hydrogen.