CemWeek CemWee MAGAZINE
GLOBAL CEMENT INDUSTRY. KNOWLEDGE.
AUGUST / SEPTEMBER 2013
CemWee CemWee BMWeek
CW ADVISORY VIEWPOINT:
CEMENT COMPANY OF TOMORROW PROBING THE FUTURE
AFGHANISTAN Competition picks up the pace
SAUDI ARABIA Fast development
prompts for additional imports
News
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Analysis
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Market Coverage
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Interviews
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CemWeek EDITOR'S NOTE CemWeek CemWeek CemWeek BMWeek BMWeek BMWeek MAGAZINE
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Letter from the publisher and editor
Challenging conventional wisdom ement industry cycles may look like slow and many are focused on solving the immediate problems. But the future is not static on a long scale. Time passes by in this industry too, forcing us to re-examine from time to time well-tried business models and often-beaten tracks, in the need to evolve our ways, identify new horizons and challenge conventional thinking. This is something that we at CemWeek Magazine closely follow as our consulting colleagues on the CW Advisory side share their latest thoughts on the “Cement Company of Tomorrow”. As such, in the opening feature of this issue we take a step back (or a leap forward?) to the future and re-examine some of the current premises on which the industry has based its’ shareholder revenue generation models. The piece invites to consideration of an alternative avenue, where clinker and cement are just byproducts of the industry, and revenue streams for the cement company of tomorrow come from areas with higher profit margins and larger room for maneuver. From the “Cement Company of Tomorrow” we return to the present with a feature rooted in the current situation of Afghanistan. As we know, the country has gone through a lot in recent years, from the anti-terrorist war to the current reconstruction process, where cement is key to the rebuilding efforts. CW analysts paint a detailed image of the local cement industry, integrating it into the country’s wider economical and political context. In the third feature of the current issue we look at an exciting region in the cement trading space: Saudi Arabia. One of the richest areas of the world, the country is riding on a huge development wave, with six gigantic economic cities on a fast track for completion in 2020 and a myriad of other construction projects in the works. In Saudi Arabia, cement industry runs full throttle and this issue of CemWeek Magazine provides a look into the whys of the recent import rush decreed by King Abdullah and enforced by the local government. As usual, we’re keen to hear your feedback on our magazine. If you feel that you may contribute a piece or an opinion, we’re here to listen and make them known. Be sure to also take a look at the CW Group upcoming meetings, to see if we can meet in person or virtually in the next few months. Our regularly scheduled webinars are an excellent way to share some ideas and get a conversation started.
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CONTENTS FEATURES 6 Creating the Cement Company of Tomorrow CW Advisory on long-term shareholder value creation
6
14 COMPETITION INTENSIFIES ON AFGHAN TERRITORY Cement is key for reconstruction effort 20 SAUDI ARABIA IMPORT RUSH Fast-paced development prompts for additional 2.7 million tons of cement imports
14
20
DEPARTMENTS LETTER FROM THE PUBLISHER 3 Challenging the conventional wisdom Numbers in Brief 6 CW Research: Cement prices pick up momentum in 2012, but not everywhere Research 26 Cement Volumes 28 Cement Energy Markets 32 Market Data Snapshot People 33 People on the move
34 36 38 40
Regional Reports Europe, Middle East & Africa Central and South-East Asia Asia Pacific Americas
From our Industry Partner 41 Construction and building materials update EQUIPMENT 44 Equipment and notable projects CW GROUP MEETING AGENDA 46 Group’s upcoming events BUZZ 47 Top 15 CemWeek and BM Week stories
36
One Source
Numbers
IN BRIEF
Cement prices pick up momentum in 2012, but not everywhere As we look at the top line of cement groups, our eyes naturally fall to cement prices. With virtually all cement companies talking about “price before volume” strategies, especially in developed markets, it is with keen interest the CW Research team is tracking how much is actually sticking and where. Here we share some snapshots. REGIONAL CEMENT PRICE COMPOSITE (select markets within each region; indexed) 105
Asia CAM & Carib EEU & CIS ME NAM SAM South Am WEU Source: CW Research.
100
95 Dec. 12
Jan. 13
Feb. 13
Mar. 13
Apr. 13
May. 13
Jun. 13
Note: Composites based on arithmetic averages for select markets within each region.
In the above composite, which is not representative for the entire CW Research cement price research set) shared for discussion purposes, some of the price increases are showing traction. However, developed markets still show weak pricing power. Eastern Europe on the other hand shows significant pricing challenges, but this is largely due to some markets in particular being exceptionally challenged.
CW Group CemWeek BMWeek CemWeek CW Group BMWeek CemWeek BMWeek www.cemweek.com CW Group
Source: CW Research.
Thailand
Argentina
Panama
India
Pakistan
Turkey
Nicaragua
Belgium
Germany
Venezuela
Ecuador
Sweden
Peru
Canada
Coal Week Coal Week Coal Week
Colombia
United States
United Kingdom
Hungary
Chile
United Arab Emirates
Belarus
Indonesia
France
Greece
AUGUST / SEPTEMBER 2013
Slovakia
Singapore
Bolivia
Czech Republic
Russia
6
El Salvador
2013 JUNE YTD CEMENT PRICE EVOLUTION (relative change, select markets)
cbi conference conference
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CBI India India&&South SouthAsia Asia2013 2013Conference Conferencewill willfocus focus the various aspects of India’s cement CBI onon the various aspects of India’s cement industry from a business growth & investment perspective. Notably, the programme industry from a business growth & investment perspective. Notably, the programme willwill take aa dual-track dual-trackbusiness businessand andtechnical technicalapproach approach the issues around: take toto the issues around: ♦♦
Marketperspective, perspective,forecast forecastand and competitive outlook Market competitive outlook
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Alternativefuels, fuels,new newbusiness business models Alternative models
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Environmentalperformance performancemanagement management Environmental
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Finance Financeand andcapital capitalmarkets markets
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Coal outlook Coalas asmainstay mainstayfuel fueloption optionand and outlook
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Efficiency, Efficiency,innovation, innovation,new newdevelopments developments Technology, practices Technology,operations operationsand andbest best practices
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GMI GMI
GLOBAL GLOBAL
Organized and again with thethe great support fromfrom the the IndiaIndia Cement & Construction OrganizedbybyGMI GMIGlobal Global and again with great support Cement & Construction Materials (ICCM) journal the event is expected to bring together more than 200 cement and and lime lime Materials (ICCM) journal the event is expected to bring together more than 200 cement professionals. GMI is excited to build on the success of CBI India 2012 to expand the scope to include professionals. GMI is excited to build on the success of CBI India 2012 to expand the scope to include participants from the entire South Asia region this time around. participants from the entire South Asia region this time around.
Register on-line at www.gmiforum.com or email sales@gmiforum.com. Register on-line at www.gmiforum.com or email sales@gmiforum.com. You may also call us in the US at +1-203-516-7424 You may also call us in the US at +1-203-516-7424 supported by supported by
india india CemWeek
CemWeek
CEMENT CEMENT & CONSTRUCTION MATERIALS
& CONSTRUCTION MATERIALS
VIEWPOINT CW Advisory on long-term shareholder value creation:
Creating the Cement Company of Tomorrow As a part of our executive agenda at CW Advisory, we have for some time consulted clients and evolved our views on what we have come to label the “Cement Company of Tomorrow.� Though we make no secret of building on familiar concepts, we feel strongly that these building blocks need to be elevated into a proper and distinct long-term, strategic discussion among the CEO, board and strategists, to bring a renewed focus on re-thinking our existing business models and capital allocation priorities.
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VIEWPOINT ome ideas may seem futuristic (or visionary if more favorably included), but this long-term view is the responsibility of the strategist, business builder and risk manager at the end of the day. We share here some of the foundational concepts and briefly sketch out what we mean with the Cement Company of Tomorrow. Shifting sands The past few years have permanently changed how the industry is shaped. The core-cement manufacturing franchise has seen structural shifts in many markets, and others will follow, eventually. Foundational changes are demanding a rethink of how to sustain, let alone improve ROA – obvious for mature markets, and though
perhaps less urgent, also food for thought for emerging markets. At a macro level, cement groups are facing multiple long-term headwinds: erosion of pricing on an inflation adjusted basis, relentless solid fuel price increases, and costly regulatory context (CO2, NOx, mercury, etc.). To illustrate with a few specific examples: US export 12,800 btu coal price per ton is up 3.6x in the last 11 years and Richard’s Bay 10,800 btu up 2.2x, while cement prices have declined in real terms, even in emerging markets. For instance, from Apr 2010 through June 2013 Brazil real prices are down over 5% on an inflation adjusted basis. Remaining at a status quo is not attractive and even less so in an environment where the ability
to pass on costs to the customer is limited. Structural imperative Developed markets that have faced virtually irrevocable collapses of demand - e.g., Greece with an 86% peak-to-trough forecasted demand collapse - are looking at perpetually underutilized assets. Perhaps Greece is a worst case scenario, but many other markets are looking at a lesser version of a similar ill. The question that we prompt is, if there are value-enhancing propositions for these assets, how can we increase the long-term shareholder value and ROA? Though the Greece example may be a “temporary” issue to some extent, what if the reason for the collapse had been other
Official nominal cement prices cumulative index (April 2010 = 100) 140 140 COUNTRY BRAZIL EGYPT INDIA TURKEY US
130 130
120 120
EGYPT's MAX = 135
TOTAL PRICE CHANGE (APR 2010 - JUNE 2013) NOMINAL REAL 13.5% 20.2% 16.7% 14.6% 7.9%
-5.4% -5.4% -14.2% -5.9% -1.3%
INDIA's MAX = 121
110 110 US = LOWEST VAR
100 100
90 90 INDIA's MIN = 89
JUN 13
APR 13
FEB 13
DEC 12
OCT 12
AUG 12
JUN 12
APR 12
FEB 12
DEC 11
OCT 11
AUG 11
APR 11
FEB 11
DEC 10
OCT 10
AUG 10
JUN 10
APR 10
80 80
JUN 11
EGYPT's MIN = 83
Source: CW Group Research
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Do we need to make money on cement?
PROFIT CENTER CORE
STANDARD (TODAY)
ADVANCED (TODAY)
C0MPLEMENTARY
ANCILLARY
NEW MODEL (FUTURE)
CONCRETE
C0-GEN
WASTE & RECYCLING
CONCRETE
C0-GEN
WASTE & RECYCLING
CONCRETE
C0-GEN
WASTE & RECYCLING
CEMENT
WHR
ALT FUEL
CEMENT
WHR
ALT FUEL
CEMENT
WHR
ALT FUEL
ALT FUEL CLINKER
CLINKER
CLINKER
Lead with non-cement sales; cement (and clinker) are industrial byproducts
“
Source: CW Advisory analysis
At a macro level, cement groups are facing multiple long-term headwinds
than fiscal woes - an unforeseen structural change for instance? Consider a “Black Swan” scenario where one of the clinker / cement substitutes one day actually works commercially, and also consider its implications on the ROA. Certainly, we are neither the first nor the last to pose this question. Given the inertia of the industry, any potential impact we believe is unlikely to be as swift or furious as the issues in Greece. Nonetheless, it is an aspect to consider in our long-term trend line of industrial development. And remember that we measure single planning cycles in terms of 7-10 years, so “long term” is materially
longer than an usual management planning horizon – a measurement calibrated in decades. Value enablers Taking our cement plant revenue components, we can categorize the building blocks into an integrated model. This model consists of the broader known ecosystem: clinker, cement, power generation and waste management. In our model, the clinker production is the basic underlying process that in turn can be the process enabler for a properly standalone new business of power generation and waste management. The key here is that clinker is no longer a revenue (or cost
center), but a process enabler (we will get back to this a bit later). By comparing the basic clinker production versus the ecosystem potential, we dimension what the value creation business case could be along some aspects (margin contribution and the multiple relative to clinker production). In our developed market example, the ecosystem would have a 9.3x margin contribution factor compared to the clinker production – a noteworthy increase that warrants further exploration. Other factors such as capital allocation models and equity returns also need to be considered for a comprehensive view. Considering that our initial point of departure was around creating sustainable, long-term shareholder value, we select one metric as a measure of shareholder value: the P/E multiple. In the next page we compare the four core
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VIEWPOINT Ecosystem with select strategic building blocks. Illustrative example.
CONCRETE
CO-GENERATION
2.48x
0.30x
(fly ash) FLY ASH
(ready-mix precast)
0.13x
0.40x
Generation
WHR 1.33x
Supply chain
1.03x
2.36x
5.80x
Incineration
PFUEL CO2 O/S
POWER CO2 O/S
Heat
MARGIN MARGIN CONTRIBUTION MULTIPLIER Note: The figures presented are illustrative, possible outcomes for an operation located in a developed market
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AUGUST / SEPTEMBER 2013
Stop the tiptoeing Many groups will react to the above and claim they are doing it. We say few are in reality doing it and are confusing incremental optimization with a true blooded long-term strategic evolution; tip-toeing into alternative fuels and WHR is a very initial step, but what lies beyond? What if we can turn the industry model upside-down? Here’s where we see new models emerging, with the extreme leapfrogging into a model where the clinker production line is an underlying production process, and even possibly loss leader, while the “cement company” generates value primarily from power generation and waste management / recycling.
Clinker (pyroline asset infrastructure) Principal infrastructure asset
1x
“
The ecosystem would have a 9.3x margin contribution factor compared to the clinker production
ALT. FUEL
0.03x
Clinker
1.50x
AF SUPPLY
CEMENT
0.34x
POWER
Generation
2.86x
WASTE & RECYCLING
aspects of the value ecosystem: cement, power utility, renewables and waste management. Cement has the weakest shareholder value creation potential based on this metric. Should we not consider what else we can do as an industry?
1x
9.26x
CW Advisory analysis CW Group Source: Coal Week CemWeek BMWeek CemWeek CW Group Coal Week BMWeek CemWeek BMWeek www.cemweek.com CW Group Coal Week
Scenarios are possible where companies are happy to sell cement at a loss, upending the competitive orientation as we know it. In this context, a market that is facing cement demand collapse such as Greece, may be able to generate return on the cement assets by focusing
Estimated price per earning ratio as of date of July 14, 2013 30
25
20
17 14
15
14
12 10
5
0
CEMENT
POWER UTILITY
RENEWABLES
WASTE MANAGEMENT
The table is based on July 2013 data from the following companies: Cement: Lafarge, Holcim, Cemex, Italcementi, Vicat, Heildelberg, Buzzi, Cementir, Titan, Valderrivas, Eagle, Cimsa, Ultratech, ACC, Dangote; Power utilities: AP, Calpine, PPL Corporation, FirstEnergy, Public Service Enterprise Group, Exelon Corporation, NRG Energy; Waste Management: Waste Management, Republic Services, US Ecology, Progressive; Renewable: Resolute, Green Plains, EDP Source: Thomson Reuters, CW Analytics
them around power generation and waste management, while clinker production is a mere process byproduct. This has profound implications for product pricing and possibly seeing groups sell clinker below production costs, arguing that clinker is just a waste product of
“
Global appeal The model’s immediate application may be for restructuring markets with no end in sight and a virtually permanent overcapacity. However, in its nuances, the model is highly applicable to also emerging markets, especially those seeing
What if we can turn the industry model upside-down?
their power and waste management businesses, and thus avoiding dumping classifications. Don’t believe it? What about petcoke?
intensifying competition and massive power generation and waste handling gaps (though regulatory and many other factors are challenging). BMWeek CemWeek BMWeek BMWeek
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ABOUT CW ADVISORY CW Advisory is member of the CW Group, a leading advisory, research and business intelligence boutique. CW Advisory supports senior management in addressing their most challenging strategic, financial and operational issues, as well as in providing m&a advice. Our principal advisors have extensive experience in both major cement companies and financial institutions and can bridge the gap between corporations and providers of finance. If you would like to know more about our views on long-range strategic issues facing the industry or on how CW Advisory might support you, please do not hesitate to contact us on email at inquiries@cwgrp.com or by phone at +1-702-430-1748. CW Group CW Group CW Group
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FEATURE
COMPETITION INTENSIFIES ON AFGHAN TERRITORY
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The economy in Afghanistan was robust in 2012, registering a GDP growth of 11.8 %, on the back of strong agricultural and mining sectors. International aid contributed to the strong numbers, while internally, inflation fell to 6.4 percent. However, the political transition has hit the private sector and the recovery pace was slower than expected after the 2010 Kabul Bank crisis.
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FEATURE Afghanistan Real GDP Growth Rate (%) 25%
20%
15%
10%
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
5%
Source: CW Group Analysis and IMF
development is also pending on peaceful elections in 2014 and on a general increase in order within the country. In public finance, international aid restricted budgetary freedom and customs revenues were down. The medium term outlook for the country continues to be affected by these factors. Other recent key considerations include predictions of reduced agricultural harvest offset by increased oil production in Amu Darya and increased public spending. In 2013, GDP growth is forecast at 3.1 percent, with elections and favorable weather stimulating development in 2014.
ARMY – AMONG MAIN SPENDERS OF AFGHAN GDP Government revenues are expected to increase from 11 to 16 percent of Afghan GDP by the year 2022. Even under positive security conditions, armed forces expenditures will be high because of regular operation costs, maintenance costs associated with donor-built assets, an increasing number of retiring military personnel and higher government payroll for current officers and ranks. Security spending will likely reach 15.2 percent of GDP in 2022, with civilian wages at 4.8 percent and civilian operations and maintenance costs at 7.2 percent.
Real GDP growth of 6 percent per year would double the per-capita income from US$528 to US$ 1,056 in 22 years
On condition that the mining sector performs well enough and the security environment meets the current optimistic expectations, real GDP growth between 2011 and 2018 is expected to average between 4 and 6 percent, down from 10 percent over the past decade. Average population growth in the
GOVT. EXPENSES FORECAST AT 39% OF GDP The political transition in Afghanistan creates high economic uncertainty. Withdrawal of international troops means lower security for the country. Government expenditures are expected to reach 39 percent of GDP in the next ten years, and continued violence, economic crime and systemic corruption force Afghanistan to spend more on security operations, as well as for the maintenance of the armed and police forces, which are currently heavily financed by external donors. Positive economic outcast is expected for the next decade, but economic expansion
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Cement production in Afghanistan totaled 0.24 million tons in 2012 country is 2.8 percent. Even the more optimistic economic outlooks indicate only small increases in the average percapita income, while underemployment will continue to be a problem. Real GDP growth of 6 percent per year would double the per-capita income from US$528 to US$1,056 in 22 years. Improved economic security in Afghanistan relies on increased revenue. But this may arise from a lower corruption level and increased efficiency within government’s ranks, from improved land acquisition management procedures and direct steps taken for revenue mobilization. Reforms on the table include a new mining law, with a more explicit legal framework for private mining investments, the introduction of a value-added tax and reforms of the customs system. INTERNAL CEMENT PRODUCTION With the current reconstruction context underway, cement demand expanded aggressively in Afghanistan, from below 1.7 million tons in 2005 to 6.1 million tons in 2012. On the other hand, domestic cement production is almost nonexistent, which positions the country as a major trade partner, especially for neighboring countries.
Photo: US Navy
To boost internal cement production, Afghanistan plans to organize tenders for three domestic cement plants, includ-
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FEATURE
PAKISTAN – MAIN CEMENT SUPPLIER Pakistan remains Afghanistan’s main cement supplier, but less so in the recent period, with 4.6 million tons shipped to neighboring Afghanistan in 2012, compared to the 5 million tons in 2011. In the first six months of 2013, Pakistan exported 2.0 million tons of cement to Afghanistan, down 10 percent year-over-year. Iran supplies the largest part of the rest, strengthening its position year after year (1.3 million tons in 2012 versus 0.8 million tons in 2011).
Cement Imports
4
2012
2011
2010
2009
2008
2007
2
2006
Afghanistan’s largest cement plant, Ghori Cement, in the northern province of Baghlan, runs at only 80 percent capacity (1,200 tons per day), which resulted in an energy deficit of 8 MW during the second half of 2012. The plant’s customers are largely based in the northern Afghanistan provinces of Balkh, Baghlan, Kunduz, Badakshan, Takhar, Faryab, and Sar-e-Pul.
Cement Consumption
6
2005
Cement production in Afghanistan totaled 0.24 million tons in 2012, up from 0.03 million tons in 2011, while imports boomed to 5.9 million tons in 2012 and 5.8 million tons in 2011.
Afghanistan Cement Consumption and Imports (million tons)
ing the Herat Cement Factory. The Herat factory, with a current cement production capacity of 3,000 tons per day, has been previously contracted to an Iranian company that failed to meet its 27-month timeline. If other strategic investors can be found, an additional domestic plant is planned for Afghanistan’s Kandahar province. Further developments in the area include coal mines in the districts of Maruf, Miyanshin, and Shah Wali Kot.
Source: CW Group Analysis
Afghanistan Cement Imports Structure (%)
Pakistan
Iran 2012
Pakistani cement manufacturers, already facing increased fuel and transportation costs, have reduced the prices of their exports to Afghanistan by Rs 300 per ton to remain competitive with the cheaper, smuggled, Iranian cement available in the Kabul region. Competition from Iran has historically been curtailed by US sanctions prohibiting government projects from using Iranian cement. US sanctions thus favor Pakistani exports to Afghanistan, which reached 18.5 percent CAGR between 2005 and 2012.
78.7%
2011
86%
2010
88.6%
2009 2008 2007 99.4%
2006 2005
85% Source: CW Group Analysis
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Photo: US Army Corps of Engineers
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IRAN IMPORTS STILL A THREAT AT USD 125 PER TON The country’s construction industry has been bolstered by last year’s civilian aid pledge worth USD 16 billion at an international donor conference. A strong construction sector is likely to generate steady demand for Pakistani cement in the long run. However, imports from Pakistan are subject to a new US$10 per ton levy, boosting the price of Pakistani cement in Afghanistan.
The retail price of Pakistani cement in Afghanistan averaged US$135 per ton before the levy, compared with Iranian cement priced at US$120 per ton. The new levy will either shrink margins or expand the cost advantage of Iranian cement up to US$25 per ton. Retention prices of Pakistani cement exported to Afghanistan
Imports from Pakistan are subject to a new US$ 10 per ton levy
reached US$60 per ton last year, attracting northern cement manufacturers such as CHCC and KOHC, which saw export retention prices of US$66 per ton and US$64 per ton, respectively, in FY12/13. IRAN AND TAJIKISTAN TAckle AFGHAN CEMENT MARKET Pakistani exports to Afghanistan face an additional threat from Tajikistan, where the government expects to open a new cement plant, close to northern Afghanistan, in January 2014. The opening of
two Iranian cement plants near southern Afghanistan in December 2012 diverted substantial market share to Iranian imports. In combination, the increased competition with Iran and Tajikistan, coupled with relaxation of US restrictions on Iranian cement, yield projections for a 2 percent decline in 2014 cement exports from Pakistan to Afghanistan. Additionally, a new US$43.7 million plant under construction in Uzbekistan is expected to produce 0.42 million tons of cement annually and also export to Afghanistan. BMWeek
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Ce Ce Ce
FEATURE
Saudi Arabia import rush Saudi Arabia’s fast-paced development prompts for additional 2.7 million tons of cement imports
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In view of Saudi Arabia’s increased infrastructure spending, local cement supply in the country continues to be insufficient to meet market demand. Fear of a cement shortage that could paralyze the construction sector has prompted the government to step up and ban exports while demanding impressive amounts of cement and clinker to be imported.
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FEATURE
“
Saudi Kingdom’s need for cement has been bound to exceed the country’s production capacity
nder Saudi Arabia’s Ninth FiveYear Development Plan, the government plans to allocate US$ 385 million to improve critical sectors and transform the country into a knowledge based economy. Government investments target sectors such as human resources, social and healthcare benefits, development of economic resources, setting up transportation and communication infrastructure, the development of municipal services and building of new housing projects. Between 2010 and 2014, the Saudi government plans it big, allotting considerable financial resources for the construction and development of research centers, university innovation centers, hospitals, healthcare facilities, water desalination plants, airports, railways, ports and affordable housing.
ue of US$ 69 billion, according to figures released by the Saudi Arabian General Investment Authority. Their construction holds the key to the expansion of the national economy and to raising the standard of living for Saudi citizens, by serving as hubs for the development of management skills & corporate governance, by hosting state-of-the-art modern technology centers and new industries that could reduce the country’s economic dependence on oil and gas. Upon completion, the cities will establish Saudi Arabia as one of the world’s ten most favored investment
destinations, or at least that’s the plan. With such strong development prospects ahead, Saudi Kingdom’s need for cement has been bound to exceed the country’s production capacity. As such, demand for cement products is expected to surge in the area beyond
A report issued by Standard Bank in 2012 supports the fact that the Saudi government has pledged a total of US$ 150.6 billion to building 0.5 million housing units and that the Kingdom has been keen on investing in a broad range of other infrastructure projects. US$ 69 BILLION INVESTMENT IN FOUR ECONOMIC CITIES As if demand generated by these plans alone was not enough to put pressure on the local cement industry, producers are also faced with doing what it takes to deliver construction material for no less than four economic cities, whose construction started back in 2006 under King’s Abdullah high patronage, and which are steadily on their way for completion in 2020.
Jeddah
The four economic cities represent a gigantic project, with a total estimated val22
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Photo: Noor Saifi
Cement Capacity Breakdown per Company (million tons)
Saudi Cement Southern Province Cement Yamama Cement Yanbu Cement Arabian Cement Najran Cement Qassim Cement Riyadh Cement Eastern Province Cement Al Safwa Cement Company City Cement Al Jouf Cement Northern Region Cement Tabuk Cement Saudi White Cement Total:
Manama
9.20 7.30 6.50 6.15 5.45 4.20 4.10 4.00 3.50 2.00 1.80 1.80 1.70 1.60 0.28 59.58
Source: CW Group Analysis
Riyadh
Cement Plant Locations Principal Existing Production Units (locations are approximative) www.cemweek.com
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FEATURE 80 million tons by the end of 2017. Last year, Saudi Arabia’s cement production capacity was close to 60 million tons and although virtually all cement producing companies in the country have announced plans to expand capacity, concerns about a possible cement shortage were not taken lightly. The country is poised to operate at above 90 percent utilization rates in the next five years. GOVERNMENT BANS CEMENT EXPORTS In order to offer some relief to the already tight demand-supply dynamics, the government announced a cement exporting ban in February 2012, followed by a ban lifting for cement imports the following month. This however, did not do much good for the undersupplied Saudi market, whose cement trade was practically nonexistent in 2012. Corresponding figures pinpoint the value of cement trade in the Kingdom below 0.1 million tons during 2012. Conditions for apparent shortage were met, and the entire scenario resulted into an increase of price for cement and new homes, felt as early as 2012. During early 2013 there was already no more doubt the local market was undersupplied, with clear negative impacts on the construction market and even delaying effects on the government’s ambitious infrastructure program.
Cement Production Breakdown per Company (million tons)
0.96 0.99
AUGUST / SEPTEMBER 2013
4.99
1.19 1.62
TOTAL 31.91
1.64
1.95
4.13
3.87
2.20
To prevent acute shortage, on 16th of April King Abdullah of Saudi Arabia himself, by royal decree, urged the import of 10 million tons of cement and clinker so as to put an end to the shortage and stabilize cement prices. Additionally, the government announced the channeling of US$ 800 million to speed up new cement capacity building. These funds were directed to four new cement plants on track for construction over the next three years. Furthermore, based on the recent developments, Saudi port authorities have begun preparations for the arrival of cement and clinker and 17 docking stations were set up to receive the cargo, together with adequate storage space.
24
0.84 0.80 0.20
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2.34
3.47
Saudi Cement
Eastern Province Cement
Southern Province Cement
Al Safwa Cement Company
Yamama Cement
City Cement
Yanbu Cement
Al Jouf Cement
Arabian Cement
Northern Region Cement
Najran Cement
Tabuk Cement
Qassim Cement
Saudi White Cement
Riyadh Cement Coal Week Coal Week Coal Week
Source: CW Group Analysis
“
The government announced the channeling of US$ 800 million to speed up new cement capacity building
Cement Consumption Sources (milion tons)
(million tons)
70 60 50
Imports 0.08
Internal production
0.17 0.49
40
0.16
30 20
2.72
0.27
0.28
0.32
0.16
10 0
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: CW Group Analysis
ALLEGED UNFAIR COMPETITION However, recent reports indicate that foreign cement traders may be taking advantage of Saudi Arabia’s cement shortage. The country’s Chamber of Commerce and Industry complained that cement producers from the United Arab Emirates (UAE), together with traders, have artificially inflated cement prices in order to take advantage of the situation. Furthermore, a top official from an UAE cement company said prices hiked by as much as 25 percent following King Abdullah’s 10 million tons order. By
consequence, Saudi cement companies have now reoriented towards other markets for their cement needs, among them other member countries of the Gulf Cooperation Council (GCC) as well as European and Asian producers.
concentrated in the hands of local producers, with over 60 percent of the total output resulting from the first five major companies in the area - Saudi Cement, Southern Cement, Yamama Cement, Yanbu Cement and Qassim Cement.
Under pressure from Royal order to supply demand and cornered by neighboring competing players, Saudi Arabia’s cement companies managed to increase their cement output by 8.2 percent and reach a total of 31.46 million tons during the first half of 2013. The local market is rather
By the end of the current year, Saudi Kingdom’s cement producers are expected to place a total output of around 56.7 million tons of cement on the domestic market, which should cover around 95.5 percent of the projected cement consumption for the year. BMWeek CemWeek CW Group Coal Week
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CEMENT MARKETS
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CEMENT VOLUMES Signs of economic recovery remain uncertain for Europe Cement markets over Europe faced sharp declines in the first half of the year, with Spain, Poland, the United Kingdom, Germany, France, Cyprus, Czech Republic and Ukraine registering the highest contractions over 2012. Meanwhile, the growth remains consistent in Asia, Latin America and the Middle East, where countries like Peru, Thailand and Saudi Arabia have been top-performing during the first six months of 2013.
Peru, Thailand and Saudi Arabia among top performers of first half of 2013
The first half of 2013 brought positive evolutions for most of the analyzed countries in terms of cement production compared to the same period last year. For 10 out of 16 countries, cement production was on the upswing. In terms of consumption, however, countries with downtrend evolutions are still more numerous: 11 out of 20 countries experienced lower consumption volumes over the first half of 2013 when compared to the corresponding half of 2012.
H1 2013/H1 2012 Cement Production Growth Rate (%)
10%
Ecuado r
Thailand
Peru
Saudi Arabia
Argentina
Japan
Switzerland
Pakistan
Brazil
United Kingdo m
Chile
Colombia
France
Germany
Canada
Morocco
Czech Republic
20%
Poland
Spain
10%
Cyprus
0%
30%
Source: CW Group Research
In Spain, for instance, both cement production and consumption continued to fall by 24% year over year in the first half of 2013, with few signs of recovery expected in the following quarters. The cement consumption in the first six months of the year noted an extremely disappointing volume of 5.33 million tons. Even though Spanish GDP shrank only 0.1 percent in the second quarter of 2013 as compared to the first 3 months of 2013, showing timid signs of stabilization, the Spanish construction sector remains paralyzed.
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The long harsh winter in Poland negatively affected cement consumption in the first half of the year, causing a 22.1 percent drop. Moreover, the deteriorating financial conditions in the country, combined with a demand strongly dependent on the slumbering infrastructure and industry, have led to a cement consumption of only 5.85 million tons in the first half of 2013. The local industry is expected to recover starting 2014 and onwards, when investments planned within the EU budget framework for 2014-20 are implemented. Cement market in Cyprus continued to deteriorate during the first half of 2013. Production volumes slumped 10.4 percent and consumption suffered a substantial fall of 31.3 percent, the highest among the analyzed countries. The crisis of the island’s construction industry deepened even further, with building permits plummeting by 27 percent in the first five months of the year. A partial relief for the Cypriot cement companies came in the form of increased cement and clinker exports. The country exported over 0.23 million tons of cement and 0.47 million tons of clinker between January and July 2013.
No recovery seen for Polish cement market in 2013. Cement consumption dropped over 20 percent in first half
H1 2013/H1 2012 Cement Demand Growth Rate (%) 10%
Peru
Thailand
Saudi Arabia
Vietnam
China
India
Argentina
Japan
Belarus
United States
Colombia
Ukraine
Cyprus
United Kingdom
20%
Poland
10%
Spain
0%
30%
Source: CW Group Research
In South America, on the other hand, Peru has been enjoying a construction boom on the back of a strong economic performance in recent years. The country is the champion of the first half of the year, with cement production going up by 12.2 percent in January-June 2013 and consumption volumes reported 11.4 percent above the corresponding period of 2012. June 2013 was the 19th consecutive month of cement industry expansion in the country. Ecuador’s cement consumption expanded by 12.7 percent in the first half of 2013. The growth path started in 2006 was briefly interrupted in 2010, when the market slipped from its all-time high registered the year before. However, good times are here to stay, with 2012 full-year figures and first half of 2013 confirming that growth has returned to the market. The growing demand in the real estate sector and the government's continued investment in infrastructure continue to fuel the reverberating cement demand in Saudi Arabia. The country’s production levels have increased by 10.6 percent in the first half of 2013, while the consumption rose by 9.1 percent in the same period. CW Group Coal Week CemWeek BMWeek To learn more, please contact the CW Research & Analytics team at sales@cwgrp.com or +1-702-430-1748.
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CEMENT MARKETS
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CEMENT ENERGY MARKETS
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CEMENT ENERGY MARKETS In Indonesia and Australia year-to-date export output looks positive.
Coal Market Update Colombia’s coal exports sink after miners go on strike August total trading volume slightly dropped versus the previous month following a decline in Colombia’s coal deliveries. The reduction in output from Colombia comes after an indefinite strike at Drummond’s coal mines that started on July 23rd. Drummond, a US-based coal miner, produced 26 million tons of coal in 2012, around 30% of the total manufactured in the country. The strike is reportedly causing a loss of 70,000 tons of production per day. If the action extends beyond a 42 days period, lost volume will probably exceed the 3 million tons lost during the Cerrejon strike back in February 2012. According to the local National Mining Agency, Colombia’s coal production during the first six months of the year had declined 13 percent versus 2012, reaching 40.5 million tons. At the beginning of the year, the local government projected a production of 97 million tons of coal for 2013, which was later revised to 94 million. However latest estimates indicate that production won’t even meet the 2012 level of 89 million. The main export markets for Colombia are China and Japan. In Indonesia and Australia year-to-date export output looks positive. Indonesia is up 19 percent, while Australia was up 13 percent. In South Africa, July 2013 coal output from Richards Bay Coal Terminal (RBCT) rose 16 percent to 6.2 million tons.
Coal Global Trading (million tons) 120
Rest
100
US
80
Colombia
60
AUG 13
JUN 13
APR 13
FEB 13
DEC 12
OCT 12
AUG 12
JUN 12
APR 12
FEB 12
DEC 11
OCT 11
AUG 11
JUN 11
APR 11
0
FEB 11
Russia
DEC 10
20
OCT 10
South Africa
AUG 10
40
Australia Indonesia
Source: Customs data
In the United States, the Energy Information Administration (EIA) is expecting coal exports to drop this year compared to 2012, and reach 98 million tons, while coal production is expected to remain unchanged from last year. CW Coal Week CemWeek BMWeek To learn more, please contact the CW Research &Group Analytics team at sales@cwgrp.com or +1-702-430-1748.
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Energy Prices Update Coal Coal trading prices in the main export hubs remain weak as worldwide. An extended plunge that started at the beginning of the year have put most prices below the US$80 per ton mark, and the average for five of the top exporter countries is now around US$76 per ton, the lowest since November 2009.
Coal trading prices in the main export hubs remain weak as worldwide.
Australia’s Newcastle and South Africa’s Richards Bay are down 20 percent and 18 percent respectively from December 2012. Colombia’s Puerto Bolivar is right below US$80 per ton, after reaching levels of low 100’s in 2011 and 2012. The average Harga Batubara Acuan (HBA) coal price in Indonesia closed at US$77 per ton in August, going back to the same level it had in January 2010. Steam Coal FOB Average Prices (US$/ton)
150 140 130 120 110 100 90 80 70 60 50
US exported Indonesian HBA
Colombia exported South Africa Richards Bay
Australia Newcastle
Sources: EIA, Colombia Ministry of Mines and Energy, IMF, Indonesia Ministry of Energy and Mineral Resouces CW Group Coal Week CemWeek BMWeek To learn more, please contact the CW Research & Analytics team at sales@cwgrp.com or +1-702-430-1748.
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CEMENT ENERGY MARKETS
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CEMENT ENERGY MARKETS
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US Petcoke Export Price (US$/ton) Rolling 12-month average
140 120 100 80 60 40 20 0
Source: Customs data
In China, the Bohai-rim Steam Coal Price Index (BSPI), which covers six major coal shipping ports in China, is now at 546 Yuan (US$89), 14 percent below the closing price in December 2012, and reaching a five year low. The decline comes following an effort by local producers to lower their prices in order to compete with foreign imports.
The 12-month average price of U.S. uncalcined petcoke for export markets remained unchanged in June at US$80 per ton.
Petcoke The 12-month average price of U.S. uncalcined petcoke for export markets remained unchanged in June at US$80 per ton. Average annual prices seem to have stabilized after a long slide that started in the fourth quarter of 2011. The downward trend has eased in some markets, especially inIndia, where the price is now at the same level it was a year ago. U.S. petcoke export volume dropped in June after a reduction of 47 percent in deliveries to China and India, and 15 percent in the volume sent to Japan. Decline was offset by an increase in shipments to Turkey and Morocco. U.S. year-to-date petcoke exports to some European markets remain weak. The countries with the highest drop in volume are Ireland (down 84 percent), United Kingdom (down 67 percent), Spain (down 48 percent) and Portugal (down 60 percent).
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Natural Gas Japan’s Liquefied natural gas (LNG) import price increased for the second consecutive month in July, while the country continues its efforts to lower LNG cost and search for more suppliers. Price is now at US$17/mmBtu, reaching the same level it had one year ago.
European annual average 6 percent higher compared to the same period last year
In Europe, natural gas price eased in June and July, but the annual average remains high when compared to previous year. Year-to-date price for the first 6 months of 2013 is 6 percent higher than the same period of 2012. Demand in Europe is still sluggish and Russia’s Gazprom, the largest gas supplier to European markets, announced it will cut gas prices for European buyers this year, to deal with tight competition from other suppliers. In the U.S., Henry Hub spot price declined to US$3.4 per mmBtu inAugust, after reaching levels over US$4 per mmBtu in April and May, following mild weather conditions in most regions of the country. Prices are expected to remain low as most weather forecasts call for lower temperatures than previously forecasted.
Natural Gas Prices (US$/MMBtu)
20 18 16 14 12 10 8 6 4 2 0
US
Europe
Japan LNG
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CEMENT ENERGY MARKETS
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MARKET DATA SNAPSHOT
CW Research & Analytics Cement – Production (million tons)
Cement – CONSUMPTION (million tons)
Table available in the CemWeek Magazine Print Edition. WWW.CEMWEEK.COM/SUBSCRIBE
Table available in the CemWeek Magazine Print Edition. WWW.CEMWEEK.COM/SUBSCRIBE
Portland Cement – Imports (million tons)
Portland Cement – Exports (million tons) Country China (June) Thailand (July) Japan (June) Korea (July) Germany (May)
LM 0.9 0.6 0.4 0.4 0.3
MoM (%) -3% 22% -10% 25% 7%
YoY (%) 2% -3% -5% -15% -12%
YTD 5.2 4.2 2.5 1.9 1.5
YTD % 26% 1% -5% -3% -2%
Coal – Exports (million tons)
Table available in the CemWeek Magazine Print Edition. WWW.CEMWEEK.COM/SUBSCRIBE
Country US (June) Malaysia (May) Canada (June) France (June) Brazil (July)
LM 0.6 0.1 0.1 0.3 0.1
MoM (%) 25% -27% -79% 21% 61%
YoY (%) 17% 27% -18% -20% -5%
YTD 2.5 0.4 0.9 1.2 0.5
YTD % 9% 25% 91% -23% 17%
Petcoke – Exports (million tons) Country LM MoM (%) US (June) 2.6 -11%
YoY (%) 5%
YTD 15.2
YTD % 5%
PETCOKE - GLOBAL EXPORT PRICES (USD/TON)
Table available in the CemWeek Magazine Print Edition. WWW.CEMWEEK.COM/SUBSCRIBE Natural Gas Prices (US$/mmBtu)
Coal Exports MoM (%)
Country Japan Europe US
190% 140% 90%
LM 17.3 11.9 3.4
MoM (%) 1% 2% -6%
YoY (%) -3% 6% 20%
YTD 16.4 12.0 3.7
YTD % -4% 5% 48%
Natural Gas Prices MoM (%)
40%
20%
-10%
0%
-60%
-20% Japan Indonesia Colombia
Australia South Africa
Europe
US
US Coal Export Prices Mom (%)
Coal – Global export prices (USD/ton)
10%
Table available in the CemWeek Magazine Print Edition. WWW.CEMWEEK.COM/SUBSCRIBE
0% -10% Indonesia
Australia
US
Colombia
South Africa
Source: CW Group Research LM: latest month (August where not specified); MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year CW Coal Week CemWeek BMWeek To learn more, please contact the CW Research &Group Analytics team at sales@cwgrp.com or +1-702-430-1748.
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PEOPLE FLSmidth appoints new Group Executive Vice President for HR FLSmidth announced the appointment of Mrs. Virve Elisabeth Meesak on the newly created position of Group Executive Vice President for Human Resources. Mrs. Meesak is a Swedish citizen and has since 2010 been an independent human resource consultant, specialized in change management, leadership training and executive coaching. From 2008 to 2010, Virve Meesak was Human Resource Director for Alstom Power Services, North East Europe and from 2005 to 2008 she held the Vice President for Human Resources position at Sandvik Mining. Previous to 2005 Mrs. Virve Meesak held a number of Vice President positions as head of human resources in SEB Merchant Banking, Perstorp AB, Philips Consumer Communications Singapore and Electrolux Singapore.
Mrs. Virve Meesak brings holds a broad experience within international human resource development and global change processes. She holds a Bachelor of Science in psychology and behaviorism from Stockholm University, alongside a number of programs in the fields of Economics, Executive Leadership and Coaching.
Lafarge rethinks group communication Lafarge has announced some key changes in its personnel structure. Alexandra Rocca, Director of Communications, will take on expanded responsibilities with the new title of Assistant General Manager of Communication, Public Business and Sustainable Development. Eric Olsen, current deputy CEO of Organization and Human Resources, has become Deputy Director of General Operations. Meanwhile, Sonia Artinian, general director of Lafarge Romania, was appointed Deputy Director Gene ral of Organization and Human Re sources. Guillaume Roux took the position of Deputy General Manager of Operations. Peter Hoddinott will become Deputy Director General in charge of Performance. Costin Borc, head of the company's operations in Serbia between 2008-2013, has been selected as Lafarge Romania’s new CEO. On the move South Africa's PPC has appointed Salim Abdul Kader, a board member since 2005, as group COO. Kader previously served as Managing Director of the company's South African operations. Ash Grove Cement Company has hired Stuart E. Tomlinson, who possesses more than three decades of industry experience, as its vice president of manufacturing for the U.S. Midwest region. Malika Youssoufine has left AXA Assu rances for Lafarge Morocco, where she will be in charge of sustainable development. Youssoufine was responsible for HR & Communication for Cement Morocco, before joining the AXA Group. Bogdan Dobre, 45, has been appointed sales and marketing director of Holcim Romania. Dobre has been working with Holcim Romania since 2000, in positions ranging from regional sales manager to coordinator of the management of the concrete and aggregates business segment. BMWeek CemWeek CemWeek CemWeek
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C C C
Regional report:
EUROPE The fall in cement consumption in Spain is expected to slow down, compounding a 24 percent loss year-over-year for the first half of 2013. In the medium-term, however, a history of cyclical behavior in the cement sector leads to predictions of improved figures over the next few years. The country’s Cementos Portland Valder rivas Group anticipates layoffs of 90 percent for its Spanish workforce, representing a total of 318 employees from its aggregate, concrete, mortar and transportation businesses. Following the downsizing, only a few of the company’s plants, in Catalonia, Madrid, and Navarra, will remain open. In Greece, as expected, construction registered a sharp drop during 2012 and a mediocre performance by Greek export companies is likely for the end of 2013. Massive internal economic crisis continues to create decline in building and construc tion activities, and Greek manufacturers of aggregates and cement are struggling daily for survival.
In Germany, HeidelbergCement may decide to put in a bid for Croatian cement maker Nasicecement, a company which the group has been monitoring since its pre-bankruptcy settlement, and where it is ready to invest, should the opportunity arise. In other European countries, cement demand has been continuously decrea sing. For instance Italy, where leading Italcementi Group considers plans to restructure local operations. The com pany intends to stop all production activities, starting January 2014, for its sites at Scafa and Monselice. Russia and CIS The Russian and CIS markets have seen some positive evolutions. Last year cement consumption in Russia grew by 7.6 million tons, or 13.2 percent, compared to the previous year. Demand is expected to increase substantially as a result of the Sochi 2014 Olympic Games and the 2018 World Cup.
SELECT PROJECTS IN THE WORKS: EUROPE, RUSSIA AND BALTIC REGION
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Cement imports increased from 2.3 percent of total consumption in 2010 to a 7.8 percent quota in 2012. Turkey and Iran contributed the majority, representing a combined 42 percent of the imports in 2012. Russian cement exports remained relatively stable at 2.1 percent and 2.3 percent of production in 2011 and 2012, respectively. Key cement export markets for Russia are Kazakhstan, Azerbaijan, and Belarus, which together account for 96 percent of exports. The top five Russian majors control about 61.4 percent of the market. Multinational producers control 18.7 percent. Belarus hikes production in 2014 In Belarus, national cement production in 2013 is estimated to reach a total of 6 million tons and it will probably increase as far as 9.5 million tons in 2014. Going back, during the mid 2000s the Belarus domestic market registered an acute cement shortage, which created a significant dependency on imports. Purchasing from external markets jumped significantly at the time and contributed to an increase in the cost of construction for the country. As a result, in 2007, the government decided to double annual domestic cement production to 10 million tons. The resulting program launched a cooperation project with China’s Citic for building new production lines using the dry production process at each of the country’s three plants. The program boosted production capacity by 1.8 million tons per plant. MIDDLE EAST Moving to Middle-East, after a halt due to price disagreements, exports of cement from Iran to Iraq are poised to resume.
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Saudi prices stabilized Following cement import orders by Government and the King, imports of cement into Saudi Arabia may hit 6 million tons by the end of 2013. To boost local stocks, Southern Province Cement is prepared to start importing approximately 0.8 million tons of clinker. The first shipment, carrying 0.47 million tons, reached the port of Jizan in the third week of August. Since cement imports have started entering the market, prices in Saudi Arabia have stabilized at SRY 240 (about US$64) per ton. This brings the price per bag from SRY 17 or US$4.5 to SRY 13 or US$3.4. In the neighbor Egypt, the price of cement saw a decline of about EGP 75 per ton in the first weeks after the beginning of the month of Ramadan. Current prices are around EGP 525 pounds per ton, compared with EGP 570 to EGP 620 per ton previously. The declines are attributable to increased supply compared with demand as a result of suspension of work on several projects. For a period of time, the supply of natural gas for Egyptian cement plants was halted by EGAS. This put the country’s cement industry into a truly difficult situation,
Regional report: EUROPE MIDDLE EAST AND AFRICA
In addition, Iran plans to establish a 2 million tons capacity cement factory in Iraq. The country produced 25.65 million tons of cement in the first quarter of the Iranian calendar starting March 21. In the coming years, Iran plans to reach an annual output capacity of 115 million tons, becoming the world's third largest cement producer, after China and India.
SELECT PROJECTS IN THE WORKS: AFRICA
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exposing plants to heavy losses, reportedly reaching as high as EGP 80 million per day. Nine factories have halted production as a result of lack of fuel.
been conducting talks with private equity companies to sell a 30 to 50 percent stake in its fertilizer subsidiary for US$20 to 25 million.
AFRICA In Kenya, during the first half of 2013, ARM Cement witnessed a 28 percent increase in profits while preparing to spin off and list its non-cement business on the Nairobi Stock Exchange. On the back of increased cement sales, ARM registered a net profit of KES 702 million between January and June, compared with KES 550 million in the same period last year. Previously, ARM had commissioned a new cement plant in Dar es Salaam, with an annual capacity of 0.75 million tons. The new plant accounted for 8.7 per cent of ARM sales last year.
South Africa’s PPC announced it will purchase a controlling stake in Safika Cement Holdings for about ZAR 350 million in cash. Safika is a blended cement manufacturer that produces more than 20 million bags per year. It owns five blending facilities and one milling operation and produces blended 32.5N cement under three brands: IDM Best Build, Castle, and the Spar Build-It house brand.
In other ARM related developments, the company predicts strong performance in the second half of the year as well. It has
SELECT PROJECTS IN THE WORKS: MIDDLE EAST
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Morocco cement sales fell sharply Cumulative Moroccan cement sales for 2013, to the end of July, showed a sharp decline of 11.72 percent, or 8.94 million tons. For the month of July alone, sales reached 1.17 million tons, 5.48 percent lower than the previous month. The decline affected all Moroccan cities with the exception of parts of Laayoune-BoujdourSakia El Hamra and Doukkala-Abda, where year-to-date sales increased by 15.1 and 10.7 percent, or 0.21 and 0.63 million tons. Greatest declines were observed in Guelmim-Smara, where cement sales fell by nearly 47.7 percent since the beginning of the year. The decline also affected TadlaAzilal, where sales in July fell 26 percent. In related news, cement major Lafarge has estimated the cement consumption market potential of Nigeria at over 50 million metric tons per year. The current market sits at 28 million tons.
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Regional report:
INDIA Swiss giant Holcim is merging one of its Indian subsidiaries, Holcim India Pvt Ltd, with Ambuja Cements. Ambuja will pay Holcim INR 3,500 crore for a 24 percent stake and will issue shares for the remaining 76 percent. ACC, where Holcim India holds 50 percent, will become a subsidiary of Ambuja Cements
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after the deal is completed. Also Indiabased ACC is looking to reduce its fossil fuel consumption by 5 percent by 2015. To accomplish this, the company is trying to use more clean fuel with lower carbon emissions and low ash content. Expenditures on coal account for close to one-third of the total expenses of the cement manufacturer. Meanwhile, Anil
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Ambani group's Reliance Cement has leased 100 acres of land for a factory unit at Purulia's Raghunathpur. The lease price for the plot is INR 14.43 crore. The factory unit will bring in investments worth INR 600 crore and will have a capacity of 3 million tons, generating job opportunities for about 1,000 people.
Jaiprakash Associates’ net debt currently stands at about INR 62,300 crore. The debt grew five times in the last five years, as a result of the company’s expansion of its power, sports, and construction businesses. The group requires INR 8,100 crore to service the debt. Shares of Jaiprakash Associates’ dropped 68 percent this year, although the company recently gained 1 percent to INR 31.45 in Mumbai. Nevertheless, JA is in talks with billionaire Kumar Mangalam Birla about the Gujarat cement unit, where the company has 4.8 million tons in production capacity. Jaypee holds another 5 million tons of capacity in South India.
Regional report: CENTRAL AND SOUTHEAST ASIA
JA closer to deal signing On a different note, Jaiprakash Associates is reportedly close to selling its Gujarat-based cement units to Birla's UltraTech Cement at a far lower valuation than what it sought when it started the talks early this year. The purpose of the transaction is to decrease its debt by 25 percent or INR 15,000 crore. Jaiprakash was expected to get around INR 4,500 crore from the sale, but now it will get a tad below INR 4,000 crore, according to sources from the banking sector.
Birla aims for more capacity India’s Birla Corporation will invest about INR 2,500 crore over the next three years to increase its cement capacity. The investment will be made in previously-announced projects such as a 1.5 million tons cement plant at Chanderia in Rajasthan, a one million ton plant in Assam, and in some other projects. The company's current cement production capacity is 9.3 million tons. The new projects would increase that capacity to 13.8 million ton over the next three years, and would generate total revenue of around INR 1,600 crore. Going back to mergers and acquisitions, in a deal worth INR 14,000 million, India’s CRH 50:50 joint venture, My Home Industries (MHIL), has reached an agreement to acquire Sree Jayajothi Cements Limited, a 3.2 million tons per year cement company based in South India. The investment is financed from MHIL's existing debt capacity and by equity inputs from the joint shareholders. CRH entered the Indian market in 2008 with the acquisition of a 50 percent stake
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in MHIL, a cement business located in Andhra Pradesh. OTHER In Pakistan, higher taxes, an early monsoon and the commencement of Ramadan in the second week of July impacted cement consumption adversely in the first month of the new fiscal year 2013-14. Cement dispatches fell 7.84 percent. Local sales recorded a major decline of 10.43 percent, while exports fell by 0.75 percent. Total cement dispatches in the month stood at 2.59 million tons, vs. dispatches of 2.81 million tons in July 2012. Local sale volumes amounted to 1.84 million tons, of which 1.5 million tons were dispatched by mills in the northern region and 0.34 million tons from the south. In the same month of 2012, the industry dispatched 2 million tons. Tajikistan's cement production has dropped by 0.11 million tons since the beginning of 2013. The cause of the decline is a lack of natural gas required to run Tajikcement, the most important production facility in the country. Since January, the country has produced only 29 thousand tons of cement. By contrast, the country produced 0.14 million tons of cement between January and July of 2012. Cement production is expected to increase at the end of the third quarter, after a new 1 million-ton production facility is commissioned and the Tajikcement enterprise production resumes.
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Regional report:
CHINA The cement industry in China is regis tering excess capacity, with production of dry cement and clinker as of December 2012 reaching 1.61 billion tons, or 1,190 kilograms per capita. This exceeds a limit of 900 kilograms per capita previously imposed by state authorities. More specifically, overcapacity problems plague, among others, the province of Chongqing, where the official price per ton of bulk cement stands at CHY 270, well below the national average price of approximately CHY 323. The actual price situation in the market is worse, as it varies between CHY 230 and CHY 240 for exported products, while the domestic local market price stands at about CHY 210.
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Local producers protest construction of new facility In the Heilongjiang province, 21 cement producers have protested the construction of a Jidong Cement 7,200 tons clinker production facility in Harbin. The protes ters argued that the development would be economically damaging for industry, since production capacity in the province stood at 63 million tons, while demand topped out at 34 million tons. In Harbin, Overall prices in China, however, show the problem has been even more serious, signs of stabilization. The cement sector with demand at around 10.6 million tons, index has risen over 160 points this and actual production at 20 million tons, month, or 10 percent. Cement stocks an oversupply level of 47 percent. The are up slightly, as well. This traditional Jidong Cement plant in Harbin would off-season rise reflects the increase generate an added 13 million tons of in demand, which is most apparent cement, reportedly forcing bankruptcy in the provinces of Xibei and Xinan. on other producers and leaving Also contributing is the decreased thousands unemployed. Jidong Cement supply registered in late July, when representatives countered by saying that provinces of eastern China begun Heilongjiang Province imports about 7 shutting down production to per - million tons of clinker per year, which mit maintenance. Currently, Hangzhou is representative for the fact that there is high-grade cement price is CHN 360 still room for growth on the local market. per ton. Given that the price of coal has fallen 10 percent, the cement industry's OTHERS profitability in the third and fourth In Vietnam, major power consumers quarters will likely exceed market such as steel and cement manufacturers may soon pay higher electricity prices. expectations.
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According to the Ministry of Industry and Trade, steel and cement producers using power voltages of 110kV or higher during peak hours will pay 10 percent more for power than the average retail price. The highest price hike for voltages of less than 6kV during peak hours would be 20 percent. The total capacity of Vietnam’s cement sector has reached 68 million tons, and most production is done with ASEAN-comparable technologies. Only 2.35 percent of the country’s cement firms use blast furnaces. Holcim revives Philippines unit Holcim Philippines announced plans to reopen its Batangas grinding unit to boost cement output by up to 1 million metric tons a year. After a year of fullscale operation, the yearly output of Holcim Philippines will reach nearly 9 million metric tons, up from 7.7 million tons. From the same company, a PHP 20 billion Holcim Philippines cement factory in Norzagaray, Bulacan, awaits final approval in September. The company reported PHP 1.62 billion in net income during the second quarter, up 34 percent year-on-year. Revenues rose by 13 percent, to PHP 8.11 billion from PHP 7.2 billion, over the same period. First half net income totaled PHP 3 billion, up 50 percent from PHP 2 billion in the previous year. Over the same period, first half revenues rose 10.5 percent to PHP 15.28 billion from PHP 13.82 billion.
Semen Indonesia plans new unit in Sumatra Semen Indonesia is planning a capital expenditure of at least IDR 5-6 trillion in 2014. Funds will be used to finance the construction of a new cement plant and cement bagging facilities in West Sumatra and Central Java. The new plant is expected to produce 3 million tons of cement per year. Cement sales in Indonesia grew by 7 percent year-over-year, reaching 32.9 million tons, between January and July 2013. This pace of growth is yet another sign of cooling economic growth in Southeast Asia's largest economy. Java, Indonesia's highest populated island, continues to account for the largest segment of the country's cement demand. Although the 7 percent growth rate is much lower than last year's numbers, it is still higher than
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Indonesia's overall economic growth of about 6 percent. Total domestic cement sales in 2013 are projected to reach 60 million tons, an 8 percent increase over sales in 2012. The country's annual cement production capacity has grown to 64.5 million tons, up from 60.5 million tons at the end of 2012. Capacity was 37.8 million tons in 2010 and 52 million tons in 2011, and is projected to reach 65 million tons by the end of 2013. Demand in 2010 exceeded production, coming in at 40.8 million tons. However, production exceeded demand in the next three years, with demand totaling 48 million tons in 2011, 55 million tons in 2012, and 60 million tons in 2013. Clean technology grant won in Australia Wagners Queensland has received a grant from the Labor Government's Clean Technology Investment Program. The AUD 9.6 million grant will help fund the introduction of new milling technology to cut energy costs by up to AUD 2.7 million a year and reduce carbon emissions. The technology will improve the grinding efficiency of the mill, cutting energy consumption and reducing the use of clinker by allowing alternative materials. The improvements to the grinding efficiency alone will reduce the site’s carbon emissions intensity (carbon emissions released per unit of production) by 23 percent. The company will also invest AUD 19.2 million of its own money into the project.
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Regional report:
NORTH AMERICA In San Antonio, Texas, Skyonic Corpo ration has awarded the US$117 million construction contract for the Capitol SkyMine plant to Toyo-Thai-USA Corpo ration. Toyo-Thai has also invested US$1 million in Skyonic to support the project. More than two years ago, Lafarge promi sed to dramatically reduce emissions of nitrogen oxide and sulfur dioxide at its plants in New York. Now, Lafarge plans to replace two kilns at the Ravena plant with a new state-of-the-art kiln with advanced pollution controls. The company has also agreed to lower its mercury emissions another 25 percent and possibly lower SO2 and NOx emissions when the new kiln becomes operational.
Cemex's price increase equates to an additional 60 pesos (US$4.69) plus tax per ton of gray cement, or MXN 3 per 50-kilogram sack.
Still in the US, the Portland Cement Association (PCA) and others in the concrete industry are urging the enactment of H.R. 2241, the Disaster Savings and Resilient Construction Act of 2013. The bill provides a tax credit to business or homeowners who rebuild in local regions that were declared federal disaster areas. The plan calls for the National Institute of Standards and Technology to develop a resilience framework and provide guidelines for safe buildings and infrastructure. Cemex prices to increase in Mexico Cemex will raise its cement prices in Mexico by about 4 percent to com pensate for higher raw material costs.
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Lafarge Canada is offering three new packaged cement products in Eastern Ontario, Quebec, and Atlantic Canada. The company will be selling 20kg Contempra (GU-L), 20kg High Early Cement (HE), and 30kg Silica Fume Cement (GUb-SF) bags in these key market areas. The Dominican Association of Cement Producers denies rumors that Haiti is considering a ban on cement imports from the Dominican Republic. Appro ximately 53 percent of all exports of the Dominican cement industry normally go to Haiti. Trinidad Cement Limited fears its banker of five decades may be planning a takeover of its board, amid an ongoing court fight in Port of Spain launched by minority shareholders. The clash over TCL's boardroom seats comes in the wake of a two-year negotiated program to restructure the cement maker's debt. SOUTH AMERICA Cement demand in Bolivia has increased 9-10 percent per year over the past three years. Three cement factories (Soboce, Coboce, and Itacamba) plan to invest US$440 million in the next two years to increase their production, adding to the US$240.5 million already invested. Cement production in the country has increased by 138 percent over the last 10 years, up to 1.14 million tons produced in 2012. The high price of cement in Colombia is currently a matter of ongoing debate. Today, a bag of cement costs between COP 22,000 and COP 24,000, up from COP 7,000 a decade ago. With an average inflation of 5 percent, the current price should be between COP 14,000 and COP 15,000. However, although the Index of Construction Costs for Housing has increased 66 percent between 2002 and 2013, the price of cement has gone up only 51 percent.
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The growth in the construction sector in several regions has remained mixed in the past months. The US market is slumbering, up only 3.3 percent YoY, while Latin America witnesses construction slowdown with building materials sales declining 20 to 30 percent in Peru. The Eurozone looks stagnant, down 0.3 percent in construction production in all 27 states in May vs. April. Meanwhile, China’s real estate production picks up the pace and fuels a 9.7 percent YoY increase in cement output to 1.1 billion tons at the half of 2013. CONSTRUCTION In Latin America, construction slow down has been evidenced, with Panama, investment in construction projects registering a slight decline. Total invest ment in construction reached US$ 749.8 million in the first six months, down 2.2 percent compared to the same period in 2012. Building materials sales decreased 15 percent to 20 percent in Peru during May and June 2013 over the same period last year. The decline in sales of cement, brick and other construction materials was mostly due to a sustained appreciation of the US dollar. Eurozone evolution flat overall In the EU and the Eurozone, production in construction fell 5.1 percent YOY in May 2013. Construction in the Eurozone was down by 0.3 percent in all 27 member states (the EU27) in May 2013
compared with April 2013. Building construction in May 2013 decreased by 0.6 percent in the Eurozone and by 0.5 percent in the EU27, after registering a slight growth of 0.5 percent in the Eurozone and 1.2 percent in the EU27 in April 2013. Construction rose in just four and fell in nine of the EU member states in May 2013, with the highest increases reported in Spain with 4.4 percent, Romania with 3.1 percent, Sweden with 1.7 percent and the Netherlands with 1.1 percent, and decreases in Bulgaria with 4.2 percent, Poland and Slovenia, both with 2.8 percent and Germany with 2.6 percent. UK construction on the rebound Meanwhile, the UK construction market experienced a rebound in output levels as the country registered the strongest construction output growth since June
2010, owing to increased business activity and increased volumes of new work. Residential building activity was by far the strongest performing category, with output growth surging to its highest since June 2010. Housing activity has also reported growth in the first half of 2013. Meanwhile, civil engineering activity returned to expansion in July, and commercial construction output rose at the most marked pace since May 2012. The latest Purchasing Managers’ Index (PMI) for constructors came in at 57.0 in July, up sharply from 47.2 in March and pointing to a robust and accelerated expansion of overall business activity in the construction sector. The European construction market forecasting network Euroconstruct, which includes 19 European countries, predicts that the housing market will continue to shrink in Europe in 2013.
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of the aggressive pricing strategies SECTOR COVERAGE: deployed in the second half of 2012.
However, the organization expects the construction activity in its 19 member states to increase again in 2015. Experts from Norway, Sweden, Denmark and the United Kingdom forecast an average growth of about two percent each year over the period between 2013 and 2015. The Norwegian market remains quite active and the trend will most likely continue until 2015. Switzerland and France are expected to see declines in housing markets between 2013 and 2015, while annual loss of more than one percent is projected for Hungary and Italy. The worse evolution of the housing market is expected to be recorded in Czech Republic, Portugal and Spain. China real estate fuels growth Moving to the Asian continent, cement output in China rose 9.7 percent YOY to 1.1 billion tons in the first half of the year, compared with 5.5 percent recorded in the same period of 2012. This rise in the output was mostly fueled by a pick up in the real estate investments in the country. The Chinese government is also planning to use investments in high-speed railways to help reduce overcapacity in the construction material sectors. The railway expansion is expected to ease sectors such as steel and construction materials, which were experiencing a glut.
In the Middle East, prices for major construction materials rose slightly in Abu Dhabi in the month of June and the second quarter of 2013 compared with the same period of 2012. Palestine follows an even higher trend as the prices of cement in the country rose further to 14 shekels per ton after an initial increase of 40 shekels introduced at the beginning of 2013 GYPSUM AND LIME Caribbean Cement Company Limited (CCCL) plans to resume gypsum mining in Bull Bay, St. Andrew. Last June, the company suspended its mining
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Russia and Middle East stable On another note, figures for the first half of 2013 show almost no growth in concrete production in Russia when compared with the same period of 2012. Concrete prices in the country are down 5-10 percent when compared with the first half of the previous year. The lower prices are mostly a result
AUGUST / SEPTEMBER 2013
Greece still in the red zone Moving to Europe, Greece saw a continued decline in its building and construction activities because of the massive internal economic crisis. The recession has hit construction industry,
New Residential Construction in the U.S
CONCRETE Concrete production in the UK increased on account of rising sales of aggregates and improved construction activity. After a poor first quarter, 2013 second quarter sales volumes increased by 14 percent for crushed rock aggregates, 9 percent for sand and gravel aggregates, 18 percent for ready-mixed concrete and 9 percent for asphalt, compared with the same period of 2012.
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operations in the area and was relying on its inventory for manufacturing cement. CCCL has started preparatory work by calling for proposals for the development of access and haul roads at Halberstadt, Bull Bay, St. Andrew. The company is currently investigating the feasibility of resurrecting its gypsummining operations and will restart its work once the process is commercially and environmentally stable.
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Hanson Aggregates, on the other hand, is looking to stop dredging operations in the Allegheny River. Given the regulatory restrictions and lack of economically exploitable reserves, the company, which is the sole remaining dredger on the Allegheny, is not planning to renew its permit when it expires at the end of the year. A UK sand quarry in Shropshire will be expanded over the next seven years. The expansion plans include extending the quarry by 14.8 acres. Extraction and restoration will take place in eight phases over seven years. The quarry, which will work to a maximum depth of 12 meters, is expected to recover 0.2 to 0.25 million tons of mineral reserves and 1.4 million tons of sand per year.
Production in Construction Index
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GREEN AND INNOVATIVE BUILDING Azerbaijani and Austrian companies have teamed up to construct a new fiber cement plant in Azerbaijan. Fiber-cement is used as a high-quality and competitive building material for roofing and façade panels, partitions and interiors, and can successfully replace the asbestos material, which is a potential threat to health and the cause of cancer. The new facility will be launched into production in 2015.
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including the limestone sector, causing manufacturers of aggregates and construction materials to struggle daily for survival. In France, Lafarge is looking to expand operations at a limestone unit in Perrigny. On the other hand, Cimenteries et Briqueteries Reunies (CBR), a part of the Heidelberg Cement, now has one of the largest excavators in the world in one of their limestone mines – the Hitachi EX19006. The excavator is capable of extracting 3 million tons of materials per year, 2.2
million of which are calcareous used at the company’s 1.6 million tons cement production facilities in Lieze. Vietnam agrees to new developments In Asia, Vietnam’s Prime Minister agreed to adjust 4 mineral deposits in the province of Nghe An and allow exploration and exploitation of mineral reserves for the cement industry. The PM agreed to adjust limestone quarries Kim Giao, Len Mountain, Saw Tooth and the clay pits at Silver stone Quynh Luu district, in the Nghe An province.
In India, Perlcon Premix is all set to launch a new range of 100 percent free sand building materials. The new products use the same concept as dry-mortar formulation in Europe. In Chennai, the City Hall Corporation is going to address construction debris issue in the city by designating dumping yards. The city generates more than 8,000 tonnes of construction and demolition debris every week. City Hall is planning to recycle this construction debris by allocating specialized dumping yards.
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AGGREGATES In the US, Port of Redwood City saw one of its busiest years in recent history as it reported higher traffic on building materials. The annual activity of sand and aggregate tonnage in the port jumped 203,435 metric tons. The traffic was driven largely by importing sand and aggregates from British Columbia.
Source: Macgregor
EQUIPMENT
The cement is then transferred to two short intermediate aero-slides by means of hydraulically-actuated flow control gates. These transfer the cargo to two reversible horizontal screw conveyors. One moves the cement forward to holds 1 and 2; the other serves holds 3 and 4. Maximum level guards indicate when the holds are full, while pneumatically shut-
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off valves avoid contamination between different grades of cement. Sloping aeration panels installed on the tank top of each hold are the first elements in the discharge system. Air blown through the panels fluidizes the cement, allowing it to flow towards the centre of the hold, where it feeds into a vertical screw conveyor equipped with two remote-controlled flow control gates. At deck level, the cement returns to the reversible horizontal screw conveyors and is conveyed to a buffer hopper inside the pump room, located amidships. From the hopper the blow pump system transfers the cement to a silo ashore via two pipes. Dust collectors are installed on deck. Indocement installs 7 Loesche VRMs A new cement production line, including seven Loesche Vertical Roller Mills, is currently being installed at Citeureup, part of Indocement, Indonesia’s secondcement producer. Citeureup comprises
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nine kiln lines with a total cement capacity of 11.9 million tons per year. This makes it to one of the largest integrated factory complexes in the world. All of the kilns at the plant utilize dry process and precalciner technology. Two mills for the grinding of cement raw material will be of the type LM 56.4. Each will have a capacity of 400 tons per hour at a product fineness of 10% R 90 nanometers. Two further mills of the type LM 28.3 D will be grinding coal and have a capacity of 40 tons per hour at a product
Source: Loesche
New cement carrier features Macgregor handling system MacGregor, part of Cargotec, has secured a new order for autonomous loading and unloading systems for an 8,700 dwt cement carrier to be built for Japanese ship owner Taiheiyo Kisen Kaisha Ltd. The 109 metters vessel will have four cargo holds, each divided into two compartments. The cement handling system is designed to carry up to three grades of cement in each shipment. During loading operations, the ship's deck-mounted receiving aero-slide is connected to the shore facilities by flexible bellows; loading can be achieved on either side of the vessel.
fineness of 12 percent R 90 nanometers. For the clinker grinding, Citeureup relies on three Loesche Vertical Roller Mills type LM 56.3+3. Each mill will be producing 240 tons per hour of PPC cement with a fineness of 19 percent R 32 nanometers. In addition to the vertical roller mills for the cement grinding plant, the Loesche scope of supply includes the cyclones, de-dusting filters, fans, as well as the corresponding hot gas generators for the cement mills. Still in Indonesia, Loesche recently re ceived an order for a new cement mill for Holcim’s Tubafa plant. The equipment will grind clinker, gypsum and limestone at a product rate of 260 tons per hour and less than 3 percent R 45 nanometers. The gearbox will have a capacity of 5,200 kW. The new cement production line where the mill is to be installed will be an exact copy of Holcim’s Tubafa 1 line. In addition to the vertical roller mill for the cement plant in Tubafa the Loesche scope of supply includes the dedusting filter and fan, metal detectors, magnetic separator, slide gates and a rotary valve as well as a hot gas generator. Equipment delivery is planned for January 2014. FLSmidth VRMs contract signed in Brazil Danish equipment maker FLSmidth has received two new orders from Brazil for a new 3,300 tons per day line and an OK33 vertical roller mill. The FLSmidthsupplied plant at Sete Lagoas is operating well above expected capacity. This helped motivate Companhia De Cimento Da Paraíba's choice of FLSmidth as its supplier for all major equipment for the Pitumba Plant in Paraiba State. The second contract from Cia. De Cimento Itambé, is for a vertical roller mill for cement grinding to be installed at the Balsa Nova Plant in Brazil's Paraná State. Aumund rebuilds highest elevator in cement works Bucket elevator installed 170 meters high at the Himachal Pradesh plant of Ambuja Cement succumbed to the stress
design was for the supply of three inground weigh platforms. These units enable the facility to switch between each platform and measure either individual weight measurement or total weight.
of continuous operation caused by raising raw meal to the pre-heater tower 24/7 at a continuous rate of 650 tons per hour. The elevator is reportedly the highest of its kind installed today and as such, only a few companies possessed the knowhow to deliver a competent replacement service. Originally, the machine was fitted with a steel cord belt of 1450 mm width and tension rating of 3500 N/mm. After passing the application data through their sophisticated computerised selection program, Aumund decided to offer an alternative based on their own design concept, resulting in a belt width of 1050 mm and with a bucket size of 1000 mm at 430 mm pitch. Others In the UK, Claudius Peters engineering solutions provider recently supplied materials handling solutions to Hanson Cement for their Bristol Port Project. Hanson, owned by Heidelberg Cement, ordered 12 wagon unloading stations. The stations are fed by a Claudius Peters FLUIDCON system. Hanson Cement has contracted with Schenck to replace its existing and underperforming train weighing system. The old rail weighing system could not reliably weigh rail cars being loaded with OPC. The final Schenck system
Dal Teknik Makina orders Pfeiffer VRM The Turkish company DAL Teknik Makina has placed an order for a Pfeiffer MPS 3350 B vertical roller mill for raw meal, to be used for the manufacturing of grey cement and white cement. The mill is guaranteed to achieve a raw meal capacity of 200 tons per hour for the production of grey cement. For white cement, the mill will be capable of processing 160 tons per hour of raw material. HeidelbergCement has commissioned a split Loesche grinding plant at Jhansi in the State of Uttar Pradesh. As a result, current cement capacity of the company in India has been boosted to 6 million tons per year. The Loesche mill type LM 53.3+3 C was guaranteed for 215 tons per hour. Performance tests in March 2013 revealed that the mill was already operating at 235 tons per hour. Krasnoyarsk Cement has announced the implementation of environmental protection equipment at its production facility. Expected results include 98 percent reduction in cooler dust emissions, as well as a 99 percent drop in gas emissions. GE Power Conversion has signed a MOU with Sinoma International Engineering Co., Ltd. and Yingda International Leasing Co., Ltd., for clean energy development in China. All three parties will share resources and cooperate closely to develop the solar energy industry in China and abroad. Key objectives of the partnership will be to ensure product quality as well as alleviate pressure on cash flow and financial constraints.
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FLASHBACK News flow on CemWeek.com last two months (darker red shows higher news volume)
India holds main place in the CemWeek news flow as it is the stage of recent major moves by global cement players. It is followed closely by China, the United Sates and Russia.
CW Group Meeting Agenda
The CW Group will be hosting and participating in a number of webinars and conferences. We invite you to join us on-line or in person at the events to discuss our views of the industry. To learn more, please visit http://www.cwanalytics.biz/meetings Conferences where the CW Group will be presenting:
CW Research & Analytics Webinars:
Solid Fuel Summit (SFS) India 2013
October 7-8, 2013
Hilton Mumbai International Airport Hotel Mumbai, India
Global Cement Volume Outlook – CW mid-2013 update
September 5, 2013 at 2:00 PM GMT
Cement Business & Industry (CBI) India 2013
October 9-10, 2013
Hilton Mumbai International Airport Hotel Mumbai, India
2013 Brazil & Americas Cement Business Sentiment update
September 26, 2013 at 2:00 PM GMT
CBI Brazil &LatAm 2014 Cement & Lime Conference
February 5-6, 2014
Hilton Morumbi SaoPaulo, Brazil
The world of White Cement – a bright spot in a gray world?
October 3, 2013 at 2:00 PM GMT
Cement Business & Industry (CBI) Africa 2014
June 4-5, 2014
Hyatt Regency Johannesburg, South Africa
2013 Brazil and Americas Cement Sector Business Sentiment Survey
CW Group Hosted Executive Summits: Caribbean Rim & South America Cement Finance, Strategy & Trade Summit 2013
September 11-12, 2013
Le Meridien Panama City, Panama
Middle East Cement Finance, Strategy & Trade Summit 2013
December 10-11, 2013
Emirates Towers Dubai, UAE
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BUZZ Top CemWeek stories 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
India: Jaypee to sell cement unit by year’s end Holcim set to restructure India operations Madras Cement to install new grinding unit Holcim to sell New Caledonia unit Madagascar cement market struggling CRH, Vicat jockeying for Shiram cement unit India: Orient Cement to build plant in Karnataka Galilei, HeidlelbergCement to build plant in Angola Jaypee Cement nixes plan to sell Gujarat unit Holcim sets sights on bigger slice of French cement market CCI okays stake sale in Lafarge India Senegalese President denies Dangote allegations UltraTech Cement to set up plant in Katni district Ultratech Cement lines up new cement plant Cement plant mulled in India’s Nagaland
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India 2013
SOLID FUEL SUMMIT OCTOBER 7-8, 2013 | MUMBAI, INDIA HILTON MUMBAI INTERNATIONAL AIRPORT HOTEL
The Solid Fuels Summit India 2013 is a focused executive-oriented meeting and networking opportunity for coal and petcoke industry professionals who are involved in the Indian coal and petcoke sectors. The Summit will bring a special dual focus on business and industrial issues and the program will include topics such as: »»
Assessing India’s solid fuel needs: coal & petcoke
»»
Solid fuel opportunities beyond today - trinity of sectos
»»
Mining technology & maximizing productivity for coal
»»
Reducing costs through better technology
»»
Petcoke - a threat to Indian coal?
»»
Fuel waste - trash or treasure?
»»
The international trade & bulk handling perspective
COAL * PETCOKE * ALTERNATIVE FUELS * FLY ASH ORGANIZED BY GMI GLOBAL WITH THE GREAT SUPPORT FROM COALWEEK THE EVENT IS EXPECTED TO BRING A FOCUSED GROUP OF COAL AND PETCOKE INDUSTRY PROFESSIONALS.
REGISTER ON-LINE AT WWW.GMIFORUM.COM OR EMAIL SALES@GMIFORUM.COM. YOU MAY ALSO CALL US IN THE US AT +1-203-516-7424