CemWeek Magazine, Issue 17

GLOBAL CEMENT INDUSTRY. KNOWLEDGE.

OCTOBER - NOVEMBER 2013

Contribution from CTP Air Pollution Control:

The New Regenerative Thermal Oxidation (RTO) with Integrated NOx Reduction FEATURE:

ALTERNATIVE FUELS IN SPAIN AND THE REST OF EUROPE

Spain on track to increase alternative fuels use

CONFERENCE HIGHLIGHTS:

Cement Business & Industry ( CBI ) 2013 returned to Mumbai to share strategic insights with the industry professionals News

•

Analysis

•

Market Coverage

•

Interviews

•

People Moves

17

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Our experience of over 150 years in creating innovative technologies allows us to better understand the needs and requirements of our KHD PROVIDES FULL RANGE OF PLANT SERVICES • • • •

Spare parts Plant audits Training Operations and Maintenance

customers. We carry out a complete spectrum of plant inspections, reconditioning, annual maintenance contracts for particular machines, kiln alignment (hot/cold), and plant and equipment upgrades. Such a wide range of services along with our onsite audit and expert review ensure that our customers get more out of their cement plants.

To get more out of your cement plant, visit www.khd.com

CONTENTS FEATURES 5 The New Regenerative Thermal Oxidation (RTO) with Integrated NOx Reduction 10 years of testing different waste gas cleaning systems

5

11 USE OF ALTERNATIVE FUELS IN SPAIN AND THE REST OF EUROPE Spain on track to increase alternative fuels use

FEA

11 DEPARTMENTS LETTER FROM THE PUBLISHER 1 Coming back to India: cement and solid fuels conferences numbers in brief 3 Three quarters in - Cement companies aim for higher prices research 21 Cement Volumes 24 Cement Energy Markets people 29 People on the move EVENTS 15 Cement Business & Industry (CBI) India 2013 Conference & Exhibition

31 34 35 36

regional reports Europe, Middle East & Africa Central & South-East Asia Asia Pacific Americas

From our industry partner 38 Construction and building materials update equipment 41 Equipment and notable projects cw group meeting agenda 43 Group’s upcoming events BUZZ 44 Top 15 CemWeek and BM Week stories

EDITOR’S NOTE Letter from the publisher and editor

Coming back to India: cement and solid fuels conferences ur CW Group executives just returned from Mumbai, India where they had the opportunity to attend as speakers at the Solid Fuel Summit (SFS) and the 2nd edition of Cement Business & Industry (CBI) India and South East Asia, organized by GMI Global.

The Solid Fuel Summit, held on October 7th and 8th, followed a roundtable-format and presented participants with a unique networking opportunity and set the framework to share ideas around petcoke, coal, power generation and other energy sources in the Indian cement sector.

The industry faces a challenging outlook for balancing supply and demand of coal and for improving logistics to move imported product out of the ports. Coal price pressures continue to spread and in the absence of a steady supply of the product, some producers are switching to petcoke for savings.

National coal suppliers, not able to keep up with local demand, will need to invest in technology and increase production, as the market continues to observe a continuous increase in coal imports in the upcoming years.

On the 9th and 10th of October, we had the opportunity to meet senior executives from India and beyond at CBI and on the sidelines of the meeting, CW Advisory hosted several of the executives in our by invitation-only “CEO & Executive Forum”, focusing on the executive agenda facing the sector. The mood was sullen in India and echoed across market segments and geographies. Upcoming elections seemed to cause more pause for concern than an inflection point, with the opinion swinging from some seeing it as the start of a recovery to others expecting at least another 12-18 months thereafter before any material recover.

In addition, this issue of CemWeek Magazine includes two thematic features that look closer at the alternative fuels in the cement industry and how the pollution can be reduced if the right technology is used.

The “Use of Alternative fuels in Spain and the rest of Europe” feature highlights the evolution in the use of alternative fuels in the region and the expectations for Spain to reach the level of substitution achieved by other countries in Europe. This is complemented by a contribution from CTP Chemisch Thermische Prozesstechnik GmbH presenting in a six page feature the air pollution control technology used by Wopfinger Baustoffindustrie, a cement producer in Austria, installed after 10 years of intense research.

We invite you to take part of some of the most important highlight from the SFS and CBI 2013 meetings that we share in this issue as well as the broader industry perspectives.

Robert madeira

PUBLISHER AND HEAD OF RES EARCH

Raluca Neagu

The CemWeek Magazine is published by the CW Group LLC 132 Larchmont Ave, Suite 12, Larchmont, NY 10538, USA T: +1-702-430-1748 F: +1-928-832-4762 www.cwgrp.com www.cemweek.com

STAFFBOX ROBERT MADEIRA CEMWEEK PUBLISHER HEAD OF CW GROUP RESEARCH

CRISTIAN DUMITRU DESIGNER

RALUCA NEAGU ADVERTISING PROJECT MANAGER

CLARE ASLAN ROXANA CHISCOP LAURA GOLDNER CLAUDIA STEFANOIU CONTRIBUTING WRITERS & RESEARCHERS

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Any submissions or contributions from readers shall be subject to and governed by CemWeek’s Terms and Conditions, which are available upon request.

The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances.

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It was a pleasure to work with FLSmidth.

They readily accept customers’ ideas and convert them into successful projects DURAISAMY SIVAGURUNATHAN Executive President India Cements Limited

Collaboration cuts costs and achieves 35% capacity upgrade Collaboration was the key to an innovative capacity increase at India Cements Limited Chilamkur plant. FLSmidth and the plant’s senior management teamed up to analyse potential bottlenecks and challenges. Reusing existing equipment from a competitor and inserting FLSmidth technology in parallel resulted in a solution that achieved all guaranteed performance parameters at a lower cost than originally projected. We’ve been helping cement plants implement innovative upgrades since 1882 – we’d be happy to do the same for you.

For more information about how FLSmidth can help make your plant more competitive, visit www.flsmidth.com/upgrades

numbers

IN BRIEF

THREE QUARTERS IN CEMENT COMPANIES AIM FOR HIGHER PRICES Most of the cement markets worldwide have been flooded with announcements of price increases in 2013. Even the most depressed markets (e.g. Western Europe) faced inflating cement prices that ultimately led all regions, without exceptions, at higher pricing levels at the end of the third quarter of 2013 when referenced versus the end of 2012.

REGIONAL CEMENT PRICE COMPOSITE (select markets within each region; indexed) 105

Asia ex-China

E Europe & CIS

Latin America

Middle East

North America

Western Europe

98 Dec-12

Jan-13

Feb-13

Mar-13

Apr-13

May-13

Jun-13

Jul-13

Aug-13

Sep-13

Source: CW Research

100

Even though not fully representative for CW Research’s tracking universe, the illustrative above composite, revealed for discussion purposes, emphasized Asia ex-China as the region with the highest price hikes. This status was mostly backed by the price increases noted on the Pakistani and Thai cement markets. Latin America also experienced rising prices with Argentina, Panama and Nicaragua among the countries that posed the highest pressure on cement prices in 2013.

ANNUALIZED CEMENT PRICE GROWTH RATE (September 2013, select markets)

-10%

3

Russia Australia* Brazil Czech Republic+ Bolivia+ Greece+ Nepal* Singapore Trinidad and Tobago* France Slovakia+ Malaysia Japan Oman* United Arab Emirates+ Serbia Haiti India Poland Philippines United Kingdom South Africa+ Saudi Arabia Chile+ El Salvador Romania Belarus+ Indonesia+ Peru+ Canada Germany Sweden+ Hungary+ Ecuador+ Belgium+ United States+ Colombia Venezuela+ Cyprus+ Mexico Nicaragua Panama+ Turkey+ Thailand+ Pakistan+ Argentina Egypt Tunisia

0%

OCTOBER / NOVEMBER 2013

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Source: CW Research

20%

There is hardly anyThing

more aTTracTive for an

innovaTive engineer

Than finding his

maTch Now it’s time for LOESCHE innovative technology. For further information please call +49 211 53 53 0 or visit www.loesche.com

feature

The New Regenerative Thermal Oxidation (RTO) with Integrated NOx Reduction at the Cement Plant Wopfing, Austria Gerhard Philipp, Wopfinger Baustoffindustrie GmbH, Austria

dor emissions had been a problem for the cement plant in Wopfing, Austria for several years. Due to the location of the cement plant in a narrow valley, nearby villages were affected by its emissions. After 10 years of testing different waste gas cleaning systems, the Wopfinger Baustoffindustrie GmbH decided to install a Regenerative Thermal

Wopfinger Baustoffindustrie GmbH (formerly Wopfinger Stein- und Kalkwerke) has been producing lime since 1911 at its plant in Wopfing – located in Piestingtal in Lower Austria close to Wiener Neustadt. The company has been owned by the Schmid family since 1940. In 1970 the company started to produce binders and plasters in addition to lime. Cement production was added in 1980. Internationally recognized inventions like the Parallel

Flow Regenerative Lime Kiln and the Slagstar were created in Wopfing.

Limestone (from the plant’s own quarry), clay and quartz sand are burnt to cement clinker in a rotary kiln preceded by a fivestage cyclone preheater with calciner. The clinker capacity is 1,300 tons per day. Pulverized lignite and natural gas are used as fossil fuels, plastics and paper fibre residues are used as secondary fuels. The fuel

OCTOBER / NOVEMBER 2013

substitution rate is more than 75 %. In 2005 a SNCR was installed to reduce NOx to a level of 400 mg/Nm³. Cement grinding takes place in a combined grinding plant (two roller presses and one ball mill).

Due to the use of clay, paper fibre residues, and aggravated by the plant’s location in a narrow valley, odor has been a problem almost since the beginning of the cement clinker production. In 2001 Wopfinger started pilot-testing different technologies, like injection of liquid odor reduction chemicals, ozone dosing, a fixed bed adsorber, entrained flow absorber and an SCR. These measures to reduce the odor at the stack of the cement kiln were only marginally successful.

In 2009 a two-month test of a pilot-scale Regenerative Thermal Oxidizer (RTO) was executed. The RTO achieved good results in reducing the carbon monoxide, total organic carbon and odor emissions. During this test Wopfinger successfully injected ammonia into the RTO’s combustion chamber to reduce NOx.

Aerial view of the Wopfing cement plant

5

Oxidizer (RTO) to control odors, CO and organic components.

The desire of the authorities to reduce NOx emissions in the area led to the plant’s decision to equip the RTO with an integrated Selective Non-Catalytic Reduction (SNCR) system. The installation has provided consistent high performance and reliability for more than 2 years.

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Implementation of the RTO The success of the RTO pilot tests resulted in a swift decision by the plant to erect a full-scale system. In spring 2010 the owner placed an order with the Austrian company Chemisch Thermische Prozesstechnik, GmbH (CTP).

This company, who also provided valuable support during the pilot testing, specializes in flue gas cleaning systems with more than 750 oxidizer (RTO and TO) and other air pollution control installations worldwide in various industry sectors, such as building and construction materials, mines, chemical, waste treatment, forest products, electronics and others.

Wopfinger found CTP to be a reliable part-

ner with whom to develop this new technology in the cement production process.

Summer 2011 – Begin operation of new system with RTO/SNCR

A precondition to run a RTO is an efficient dust cleaning system (< 10 mg/Nm³). This was the reason the plant replaced their two electrostatic precipitators with a new fabric filter system along with other modifications to the flue gas system.

The total investment costs of the project were about 9 million Euros (50% RTO; 50% filter and flue dust system).

The work progressed as follows: Autumn/Winter 2010/11 – Erection of the fabric filter and adaption flue gas system Spring 2011 – Begin filter operation, dismantle electrostatic precipitators and erection of RTO/SNCR

The completed system represents a classic end-of-pipe-solution – where upstream production processes are not affected by the new equipment. With this installation all waste gas streams coming from the kiln can be cleaned. This includes the waste gas from the raw mill, the paper fiber driers and the chlorine gas bypass. The process flow of the complete clinker burning process, including the RTO/SNCR is shown below.

Figure 1: View of the Wopfinger plant

Schematic process flow of the Wopfing cement plant

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OCTOBER / NOVEMBER 2013

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feature

RTO Operation The Regenerative Thermal Oxidizer (RTO) is a proven system in all fields of VOC treatment, irrespective of whether the organic compounds are emitted as gaseous solvents or aerosols.

To ensure the destruction (oxidation) of VOCs, the combustion chamber is maintained above 800°C by a gas burner and a high efficient heat exchanger system containing ceramic thermal mass to keep energy losses to a minimum.

ber, generally three, five or seven identical heat exchanger beds, where waste gas is heated up and cooled down in cycles. The duration of the regeneration cycle is usually between 30 and 60 seconds. To change the direction of gas flow, poppet valves are integrated in the waste and clean gas distribution pathways.

By using these valves to switch the waste gas flow between the heat exchangers, the thermal efficiency of the RTO is optimized.

In Wopfinger’s five bed system, two beds

Functionality of the RTO

comb blocks. Each block is 15 cm x 15 cm and 30 cm high, having a pitch of 3 cm and 40 x 40 cell matrix. The blocks resemble the catalytic elements used in some SCRs. They are arranged in 5 layers with 25 x 40 blocks per layer. The blocks are produced in a ceramic factory in Hermsdorf, Gemany owned by CTP and are specifically optimized for the thermal stability, resistance to chemical attack and heat transfer characteristics required in the different areas of the heat exchanger.

The total heat exchanger surface area is about 145,000 m². Overall dimensions of the RTO are 26 m long, 10 m wide and 12.5 m tall. Because of shortage of space the fan and the clean gas duct are situated underneath the RTO. This results in a total height of 22 m. The total weight of the RTO is approximately 350 tons. Each poppet valve has a diameter of about 1.8 m.

A hot gas bypass was installed to give the operators a means to bypass hot, purified gas around the heat exchangers when necessary. This gives Wopfinger additional flexibility to process gas streams that are highly variable in concentration, as well as tolerate upsets in the process without overheating.

The raw gas is directed through the monolithic ceramic heat exchangers where it is heated close to oxidation temperature.

Then it arrives at the combustion chamber where harmful compounds are oxidized without residue. The hot purified gas then passes again through the ceramic heat exchanger beds where it releases its thermal energy (thermal efficiency more than 95%).The organic compounds and CO contained in the raw inlet gas is often sufficient to run the RTO autothermally – not requiring additional fuel. When running autothermally, the main energy user in the system is the fan used to ventilate the RTO and associated ductwork.

Typically, high efficiency RTOs, such as the one at Wopfinger have an odd num-

7

OCTOBER / NOVEMBER 2013

are cooled with raw gas entering the combustion chamber, two beds are heated up with purified gas leaving the combustion chamber, while the odd bed is purged with clean gas or sometimes fresh air, delivered by the purge system. Waste gas flushed from the odd bed is processed in the combustion chamber to avoid emission peaks while switching the gas flow at the end of each regeneration cycle.

RTO Design Parameters The Wopfinger RTO is designed to process between 42,000 and 218,000 Nm³/h of raw gas, giving them the ability to clean the different waste gas streams or bypass them individually around the RTO. The oxidizer consists of five heat exchanger beds with a total of 25,000 monolithic ceramic honey-

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Ceramic honeycomb block

The Wopfinger RTO was designed to run in autothermal mode at a total raw gas contaminant level of 5,000 mg/Nm³ CO, but using the hot bypass system, streams with concentrations up to 20,000 mg/Nm³ CO can be processed without problems.

To reduce NOx emissions the combustion chamber is equipped with 40 two-component nozzles – 8 per heat exchanger bed – which spray an atomized ammonia/water solution into precise locations within the combustion chamber in a carefully controlled manner.

Operational Experience Operation The RTO has been operating more than two years with an availability of almost 100%. Due to an adaption of the raw materials and the resulting higher level of organic content in the raw meal it is now impossible to reliably meet the plant’s emission limits without the RTO. A failure requires a shutdown of the clinker burning process but the high availability keeps this risk at a minimum.

During normal operation the flue gas from the raw mill and the paper fibre driers are cleaned by the RTO. Because of the possibility of plugging the heat exchangers with dust, all gas streams are equipped with continuous dust detectors. If the dust concentration of any stream exceeds 10 mg/Nm³ the offending gas stream automatically bypasses the RTO until the situation can be corrected.

The stack exhaust temperature has increased from 110°C to 200°C. Since the removal of the electrostatic precipitators, there is no further need to water-cool the flue gas leaving the preheater tower.

The inlet temperature of the RTO is about 150°C. Another reason for the hotter stack temperature is the RTO itself. Depending on the raw gas concentration the increase of temperature across the RTO is typically between 40 and 70°C.

RTO and preheater tower at Wopfinger cement plant

The differential pressure across the RTO is about 35 mbar. Higher pressure may indicate fouling of the ceramics caused by dust or condensation of gaseous compounds like ammonium sulfate. By running a bake-out-cycle the temperature in the cooler areas in the heat exchangers will rise up to 400°C and the condensation vaporizes in a process similar to a self-cleaning oven. Due to the low NH3 and SO2 concentrations at the Wopfinger plant, it’s nec-

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essary to perform bake-out only once or twice each year. This bake-out-cycle can be run during normal operation.

Abatement of organic emissions and CO The project was successful in achieving its main goal, the odors from the plant’s stack emissions have disappeared.

With the flexibility offered by the new system, Wopf inger c an now us e ot her

OCTOBER / NOVEMBER 2013

8

feature

secondary fuels and raw materials containing organic components which cause the concentration of CO and TOC to increase significantly in the raw gas entering the RTO. In spite of this increase, the overall stack emissions have decreased significantly. The RTO provides an abatement rate of CO and organic compounds of about 99%. Since the startup of the RTO in August 2011 the emission values for CO, organic matter and odors have been reduced by more than 95%.

precisely controlled manner. The required temperature range for selective non catalytic reduction of 850 to 950°C is present in the combustion chamber.

A diluted ammonia solution is injected directly into the raw gas stream coming from the inlet heat exchanger beds using several parallel injection ports where the optimum distribution of droplet sizes enables uniform mixing with the hot gas. The reagent manifolds are controlled in con-

Overview of the emissions (based on 10 % O2) Stack before installation of RTO

After installation RTO; inlet RTO

After installation RTO; stack

NOx (mg/Nm³)

400

350

< 200

NH3 (mg/Nm³)

< 10

< 50

< 10

CO (mg/Nm³)

1,200

3,000 – 10,000

< 100

TOC (mg/Nm³)

80

500 – 1,500

< 20

Odors (OU)

2,000 – 5,000

> 5,000

< 200

1)

200 mg/Nm³ and a NH3 level below 10 mg/ Nm³ at the stack exhaust can be reached.

Maintenance The RTO has only a few wear parts – mostly valve gaskets. Since each of the 10 poppet valves experience about 300,000 cycles per year, it is essential to have a detailed maintenance program for the entire valve system. The ceramic blocks do not wear out if left undisturbed, but when removing them for inspection up to 20% of them will break. Routine inspection and maintenance takes place during the winter shutdown. Normally no maintenance is needed during the year.

The largest single maintenance cost is cleaning dust deposits from the ceramic blocks. The blocks can be cleaned in place using compressed air or by flushing with water (called a “wash-out”).

This wash-out is done by flushing the ceramics from top to bottom, and is more effective than cleaning with compressed air. The complete wash-out procedure can be completed in one week. After ceramic cleaning, Wopfinger’s experience shows the pressure drop across the system is reduced by about 5 mbar.

OU: Odor Units

Abatement of NOx Unwanted NOx can be produced in the combustion chamber at one hand as thermal NOx at gas temperatures around 850 to 900°C and on the other hand through the oxidation of ammonia coming from the kiln or raw mill.. In the RTO there is ammonia abatement up to 90% by burning ammonia to NOx or reduction to N2 and H2O.

cert with poppet valve switching. An NOx abatement rate of more than 50% can be reached.

Depending on the ammonia concentration in the raw gas, the NOx level increases from 30 to 50 mg/Nm³. This formation can be controlled by injecting ammonia directly into the combustion chamber in a

The dosing into the RTO/SNCR is controlled by the existing emission monitoring equipment at the stack. By optimizing the dosing and avoiding ammonia slip after the preheater tower a NOx level below

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OCTOBER / NOVEMBER 2013

The operation of the integrated RTO/ SNCR works together with the existing calciner SNCR. The ammonia dosing into the calciner is controlled by a new NOx monitoring system installed after the preheater tower.

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Wash-out of the ceramic blocks

Operating Cost Electricity :

The main operating cost is the electricity needed for the fan and the compressed air.

Compressed air is used for the operation of the valves and to atomize the natural gas and the reagent. The electricity consumption is about 8 kWh per ton of clinker produced.

Natural Gas :

Wopfinger’s experience shows the consumption of natural gas has been reduced from 1.5 Nm³ per ton of clinker to 0.5. This is because of the ability to use other secondary fuels and raw materials containing organic components.

Ammonia :

To reach 200 mg/Nm³ NOx at the exhaust, up to 5 liters of 25% ammonia solution per ton of clinker are needed.

Conclusion The new integrated waste gas treatment system at the cement plant in Wopfing has demonstrated high performance for more than 2 years. CO and organic carbon as well as odor have been reduced by more than 95%. In addition, a 50% reduction of NOx can be reached, and ammonia slip can be controlled to levels below 10 mg/ Nm³.

for maintaining and cleaning the ceramic elements. By having more opportunities to use TOC-containing raw materials and fuels the installation can be operated in an economical way. It may be possible to transfer these positive operating experiences to other cement plants. However, because of each plant’s specific situation, e.g. use of raw materials and fuels, results may differ from plant to plant.

On-site pilot trials at each location may be helpful to determine if the RTO technology (in combination with SNCR or SCR) can be implemented successfully.

The reliability of the system is very high; only one shut-down per year is necessary

QUALITY THROUGH EXPERTISE

Air Pollution Control Turnkey Solutions Regenerative Thermal Oxidation (RTO) Selective Non-Catalytic Reduction (SNCR) Selective Catalytic Reduction (SCR) VOC Abatement NOx Reduction Odor Control CTP Chemisch Thermische Prozesstechnik GmbH 8042 Graz, Austria, Schmiedlstrasse 10, Phone +43 316 41 01, Fax +43 316 41 01-80, office@ctp.at

130xxx CTP Inserat CemWeek 210x137.indd 1

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OCTOBER / NOVEMBER 2013

1029.10.13

16:37

feature USE OF ALTERNATIVE FUELS IN SPAIN AND THE REST OF EUROPE

The addition of carbon dioxide into the atmosphere through the burning of traditional fossil fuels has long been cited as the primary cause of global warming and climate change. Efforts to arrest climate change have centered on the reduction of carbon emissions, and the cement manufacturing industry is doing its part primarily through the use of alternative fuels in the clinker production process.

The construction industry is a major contributor of carbon emissions in the world, following the automotive and energy generation industries. As cement has long been (and will continue to be) one of the most popular, inexpensive, and versatile building materials today, demand will undoubtedly continue to rise, and so will production.

Europe has thus far been the worldwide leader in the use of alternative fuels in cement manufacturing, particularly in cement-producing powerhouses like Holland, Germany, Austria, Switzerland, France, and Belgium. And while lagging behind the rest of the continent in environmental awareness, Spain’s cement manufacturing industry is making an aggressive push to join Europe’s most sustainable cement-producing countries.

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GROWING USE OF ORGANIC WASTE IN THE SINTERIZATION OF CLINKER Traditionally, clinker production uses large amounts of fossil fuels, which contribute to large portion of carbon emissions and other greenhouse gases. Efforts to curb the production of carbon in Euro-

“

Europe is the model of cement manufacturing industries worldwide, with up to 34 percent of its fuel used for clinker-making coming from alternative sources.

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pean cement manufacturing have been made in the past, including the reduction of energy needed to produce one ton of cement, which the European Commission believed in 1993 had reached the limit of what could be achieved by clinker-making technology. This finding was recently confirmed in a report published by the Cement Sustainability Initiative (CSI).

This was the reason why, more than 20 years ago, the European cement industry began to look for alternative forms of energy to further reduce carbon emissions.

Today, Europe is the model of cement manufacturing industries worldwide, with up to 34 percent of its fuel used for clinker-making coming from alternative sources and more than 160 of the 250 clinker production plants in the region now burn waste material as fuel.

This reduced the need to mine coal and other non-renewable sources, while making good use of organic waste, which would have otherwise been disposed of in landfills or through incineration, both of which would have contributed even more carbon emissions.

Alternative fuel for clinker-making comes in a wide variety of organic waste, including sewage sludge, solvents, animal meat and bone meal, waste tires, and plastics.

Alternative Fuels used in cement production

Tires

16%

Plastics

31%

Mixed Ind Waste 17%

Solvents Waste Oil Fossil based waste

2% 9%

14% 5%

6%

Saw dust Biomass

Source: CW Research, WBCSD/CSI

In 2006 alone, the European cement industry produced a total of 266Mt of cement, which would have required about 26Mt of coal. Instead, 18 percent of the fuel was taken from alternative sources, saving about 5Mt of coal.

2011 - Percentage use per fuel type Europe Fossil fuel

Alternative fuel

66%

Source: CW Research, WBCSD/CSI

34%

SPAIN’S CEMENT MANUFACTURING INDUSTRY ACTIVELY ENACTING MEASURES TO USE ALTERNATIVE FUELS

1990 - Percentage use per fuel type Europe Fossil fuel

Alternative fuel

97%

Source: CW Research, WBCSD/CSI

3%

Spain has been rather late to the trend of using alternative fuels in cement manufacturing. In 1990, while the rest of Europe was already experimenting with the use of organic waste in clinker manufacturing, with 3 percent of the fuel used coming from alternative sources, Spain was still utilizing only fossil fuels for its cement manufacturing processes. Much of the rest of Europe had been studying the use of alternative energy in cement production, while studies in Spain had only recently become commonplace.

However, by 2011, Spain had increased the use of alternative fuels reaching a 23 percent substitution rate, a big improvement over the 1990 level, but still 9 points behind the 34 percent average for Europe.

Recent developments in the country’s cement manufacturing industries, however, are encouraging, and are seen to spur even more progress in the use of alternative fuel.

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Aside from the trend of using waste in clinker-making in the rest of Europe, the growth of alternative fuel use in Spain’s cement manufacturing industry was spurred by the following studies and developments: 1. Encouraging results were gathered from studies made by the Alicante University on the use of sewage sludge and urban solid waste in the Alicante cement plant.

The studies found that the emissions were no different from that produced from the burning of fossil fuels, indicating the safe use of dead organic waste in the production of a useful construction product.

2. In 2004, the Cement and Environment Foundation (known in Spain as the CEMA Foundation), was established following the signing of an agreement concerning the recovery of energy from the use of organic waste in the cement production industry.

The signing was done by Oficemen (the recognized association of Spanish cement manufacturers), and FECOMA-CCOO and MCA-UGT, sectorial trade union sections.

OCTOBER / NOVEMBER 2013

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feature

Percentage use per fuel type in Spain Fossil fuel

Alternative fuel

The favorable sentence was added to the 2009 sentences (TSJ of Cantabria and TSJ Castilla-La Mancha) that ratify legal alternative fuel use in cement plants.

0%

1%

4%

5%

6%

7%

12%

16%

23%

4. A policy of transparency and communication between companies, local authorities, and citizens in towns where alternative fuels are used in cement production. Readily-available information

100%

99%

96%

95%

94%

93%

88%

84%

77%

1990

2000

2005

2006

2007

2008

2009

2010

2011

Source: CW Research, WBCSD/CSI

3. In 2010, several groups studied the process of co-incineration in the Buñol cement plant. Their findings were found acceptable by the Supreme Court Justice of Comunidad Valenciana.

has encouraged all concerned to support the new processes and the environmental benefits they aim to achieve.

5. The Environment Ministry and Ministry of Industry in Spain acknowledges the use of alternative fuel and biomass waste as the key tools in reducing emissions in the cement manufacturing industry, as stated in Spain’s latest National CO2 Allocation Plan.

6. A URS study on “Emissions And Its Possible Effects On The Health In Cement Plants’ Surroundings” done on four cement plans in Spain found that regular emissions do not pose a health risk to workers and citizens living in the vicinity of a cement plant, and that using alternative fuels do not increase any risk.

Cemex cement plant in Buñol, Spain, is using a RDF known as ENERFUEL, and avoiding CO2 emissions in the process. Thus far the plant has been able to obtain fuel substitution rates as high as 44% in a month using ENERFUEL SEE MORE

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OCTOBER / NOVEMBER 2013

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7. Spain’s regional governments are now more aware about the viability of recovering waste material both for cement manufacturing and sustainable waste management.

The Ministry for Environmental Affairs began pushing in 2009 for Spanish legislation to force the Member States to realize a system of valuation for waste material recovery.

OTHER SUSTAINABLE MANUFACTURING PRACTICES IN THE CEMENT INDUSTRY IN SPAIN AND EUROPE Aside from the use of waste material as alternative fuel for clinker-making, other sustainable manufacturing practices being implemented in Spain and the rest of Europe are also worth noting: (1) The development of carbon capturing systems, and (2) the use of organic waste as substitute for clinker raw material.

1. Carbon Capture and Storage (CCS) involves the capturing of CO2 for use in other methods. CCS technology aims to recover CO2 as a useful byproduct of the cement-making process, and a handful of studies are being made on the use of sequestered CO2 to make products such as sodium bicarbonate (baking soda), or to inject liquefied CO2 into depleted oil reserves. CCS technology for cement manufacturing is currently at its infancy, but it is expected to be available by 2025.

2. Clinker is the main constituent of cement, and in certain situations, some of the clinker may be replaced by alternative components. Two of the most significant materials that have been found up to task for the method are blast furnace slag

â&#x20AC;&#x153;

Spain has worked hard in achieving substantial reductions in the use of fossil fuels in a very short time, but the road to meet the European standards is still long

(an iron manufacturing by-product), and fly ash (a by-product from the burning of coal). This was also a discovery by the European cement manufacturing industry.

Substituting some clinker with waste material means less fuel will be needed to produce the same amount of cement, and therefore fewer emissions will be generated. Other waste materials that pose high potential as clinker substitutes include

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shale, clay, limestone, contaminated soil, waste from road cleaning processes, and other wastes containing iron, silica, and aluminum.

FUTURE TRENDS FOR SPAIN AND THE EUROPEAN CEMENT MANUFACTURING INDUSTRY Europe will continue to lead the world in the use of alternative fuels in the production of cement, especially with Spain coming up to par with the rest of the continent.

Thereâ&#x20AC;&#x2122;s still huge potential for improvement in the region, and especially in Spain, which is far from achieving the levels recorded by other countries in Europe in 2011: Austria 66 percent, Germany 62 percent, Czech Republic 49 percent and Poland 40 percent. Some plants in Germany have even reported rates of over 80 percent.

Spain has worked hard in achieving substantial reductions in the use of fossil fuels in a very short time, and the road to meet the European standards is still long , but local cement producers are working on sustainable programs with aggressive substitution rates targets and confident the country will get there.

OCTOBER / NOVEMBER 2013

14

events CONFERENCE HIGHLIGHTS :

Cement Business & Industry (CBI) India 2013 Conference & Exhibition returned to Mumbai to share strategic insights with the industry professionals

15

OCTOBER / NOVEMBER 2013

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CBI India & South Asia Conference

equipment manufacturing companies

returned to Mumbai on October 9 -10

for the cement and related industries.

2013, bringing the latest in business

The annual event took place at the pres-

and technical trends to the region. Over

tigious Hilton International Airport Hotel

100 delegates registered for the meet-

in Mumbai, India, where the delegates

ing, including an exceptional selection

and sponsors enjoyed two days of inten-

of renowned speakers and top corpo-

sive interactive sessions and a premium

rate sponsors from the most influential

exhibition.

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OCTOBER / NOVEMBER 2013

16

events

he conference was introduced by Ms. Beatrice Ene, Client Development & Marketing Director of GMI Global, a leader in networking and insight-oriented industry conferences and international meeting management support services. “I am proud to be back in India for the second edition of the Cement Business and Industry conference.

Business & Finance Highlights Mr. Sushil Anand, Senior Investment Officer, International Finance Corporation – IFC – (Private Sector arm of World Bank Group) and Mr. Robert Madeira, Managing Director & Head of Research at CW Group, opened the sessions with presentations around global context and shifting

Last year’s meeting was a big success and I am happy to see many of you joining again.

India is a country of incredible opportunities and challenges and we are looking forward to expanding CBI events in India in 2014 and welcoming an even a larger and more diverse group of executives.”

The delegates attending the main two-day conference represented organizations from the global and Indian cement and related industries. The mix of senior-level executives included general managers, vice presidents, business heads and other industry leaders with wide-ranging backgrounds, as well as technical directors, engineers, analysts and associates.

17

OCTOBER / NOVEMBER 2013

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economic strength and macro challenges in the global cement industry.

Speakers brought diversity of topics and perspectives such as cement volume forecast and pricing trends, presented by Claudia Stefanoiu, Senior Analyst CW Group, and the cement industry in Afghanistan,

opportunity and analysis introduced by Mr. Mohammad Zamir Attai, Director of Mineral Sector Development, Afghan Ministry of Mines.

Additional subjects included challenges and opportunities for the Indian cement market, focus on Indian regions, economic forecasts, environmental performance and fuel usage, raw material and mining practices in cement and innovation.

Bharat Sharma, Addnl. General Manager (Strategy & Business Development) at Shree Cement, introduced “Indian Cement Industry: Trends, Opportunities and Challenges”. He underscored housing remains the major segment capturing cement consumption in India and accelerating urbanization, easy credit availability, tax benefits and population growth are the main demand drives in the country. Mr. Sharma expects cement demand to increase 7-8% annually over next 5 years.

Gaurav Bajaj, Joint Managing Director, RNB Cements, focused on the “Clinker & Cement Market in NE India”. Mr. Bajaj concluded that the north east cement and clinker market is fully saturated and there is no scope for any further capacity addi-

tion, until and unless the economy revives and the infrastructure projects and hydro projects open up.

Other highlights from the conference included an analysis on the infrastructure

sector and its impact in the cement industry introduced by Rajesh Sarada, Assistant Vice President Reliance Cement. In his presentation “Indian Cement Sector Outlook” Mr. Sarada explained the significant potential for growth in cement demand in India and how infrastructure will emerge as one of the largest consumers of cement.

He also added that growth in cement production will lead to increase in the demand of various resources required for producing and distributing cement and proactive measures will be needed to ensure availability of key resources.

“Solid fuel use in the cement sector” was the subject discussed by Laura Goldner, Senior Analyst – Energy, CW Group, while Joe Phelan, Director World Business Sustainability Cement Development (WBCSD) and a valued partner for the event, explained to the audience the different activities in which WBCSD/CSI is involved in India and the outlines of the India cement roadmap.

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OCTOBER / NOVEMBER 2013

18

events

Management Group, who approached the subject of “Sustainable fly ash in cement”.

Technical & Engineering Highlights The latest technologies, trends and innovations in engineering were dedicated a special section in CBI India 2013.

Dr. S.N. Pati, former Joint Director (Environmental Management), National Council for Cement, made two very thoughtful presentations: “Life Cycle Assessment (LCA) of cement sector” and “Environmental issues for cement industry”. He focused in key issues like resource productivity, climate protection, emission reduction, ecological stewardship, community wellbeing and global welfare, generating vivid discussions among the participants.

One of the most interesting topics covered during the day was addressed by Mr. Krishna Srivastava, Whole Time Director, Zuari Cement (Italcementi Group). In his “Innovative Building Solutions” presentation, Mr. Krishna Srivastava showed the astonished audiences Italcementi’s transparent cement “i.light” that was especially developed by the company to build the Italian Pavilion at the 2010 World Expo in Shanghai. His presentation was comple-

19

OCTOBER / NOVEMBER 2013

mented by a work of art at the exhibitions and fairs the group participates in, thanks to their latest innovative technology.

A very special session was dedicated to Ready Mix and Fly Ash, with presentations leaded by L.R. Manjunatha, Senior Manager & Functional Head-Marketing, RMC Readymix (India), Prism Cement Limited & Secretary -ICI-KBC and Shardul Kulkarni, Principal Energy, Tata Strategic

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A special section dedicated to fuels, counted with the participation of Ulhas Parlikar, Director - Geocycle Business, ACC Ltd. (“Alternative fuels & raw materials co-processing”) and by Dr. Jayant Bapat, Independent Consultant (“Petcoke as fuel for cement production: benefits and challenges”). Mr. Pukhraj Sethiya, Manager, Mining, PwC India gave a powerful presentation on “Energy and coal issues facing the cement sector”.

The newest technologies and trends were exposed in the presentations held by Johannes Hartenstein, Project Manager Research & Development at Magnesita, who spoke about the innovations of “Modern Doloma Magnesia Refractories Performance and Benefits”, Michael Kirmse, Sales Manager Clinker Cooler, Claudius Peters, who showed the latest on “ETA Cooler” and Ambareesh Dixit, Director - Business Development (India Region), HGH Systemes Infrarouges who introduced the “Kiln process temperature control through infrared”.

“Increasing efficiency and decreasing electrical consumption” was an issue explained

by Mukund A. Toke, Owner, DPTS Enterprises. Mr. Toke showed the audience areas of improvement in the use of alternative fuels, the installation of waste heat recovery systems and the implementation of high level of automation.

The session held by Ajit Ostwal, Head of Mining, UltraTech Cement, “Raw material and mining aspect in cement” offered the audience key concepts around prospects, investigation and study of raw materials deposits, technology, transport, processing and equipment.

“Global cement equipment forecast” presented by Claudia Stefanoiu, Senior Analyst, CW Group showed how Indian-based companies continued to invest in 2011 and 2012 after the economic slowdown.

The percentage share in CAPEX of Indian-based companies vs. global companies increased from around 10 percent in 2008 to more than 25 percent in 2012. According to Mrs. Stefanoiu, global cement players expect to limit as much as possible CAPEX in future years.

tured CEO panel discussions from global cement industry leaders: Zuari Cement, Reliance Cement, Sanghi Cement, Amrit Cement, Murli Cement, IFC and the special attendance of Mr. Jean Michel Allard, Retired deputy CEO and Director of the Board of France-based Vicat. The panels were moderated by Mr. Robert Madeira, Managing Director & Head of research.

benefited from the great presence, input and sponsorship of top industry companies: Magnesita, Loesche, Claudius Peters, Promac Engineering Industries Limited, Mondi, HGH. The cocktail offered by Amrit offered the delegates an extended networking opportunity and allowed the ideas and insights to flow among the participants in a less formal set up.

Closing highlights CBI India & South Asia 2013 sessions

CemWeek once again provided key support and program guidance to CBI India 2013; also, World Business Council for Sustainable Development – Cement Sustainability Initiative was a very important supporter for the event.

The event was promoted by the main media partners in the region: India Cement & Construction Material Journal, Industrial Angles, AlitInform, Construction Sphere, Coal Insights and India Coal.

GMI Global is looking ahead and is excited to begin planning for the next CBI India & South Asia Conference. Follow www.gmiforum.com for news on what will surely be the most exciting annual cement business and industry event in India.

Special roundtable session for CEO’s and executives In parallel with the India & South Asia 2013 Conference, the CW Group hosted an exclusive and special roundtable, the CEO & Executive Forum. The event fea-

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OCTOBER / NOVEMBER 2013

20

CEMENT MARKETS

CW research & Analytics

CEMENT VOLUMES Cement markets caught up between two extremes Most of the European cement markets managed to reduce the scale of their declines

The third quarter of 2013 brought a pale softening of the depression experienced by some markets since the beginning of the year. Most of the European cement markets managed to reduce the scale of their declines , even though countries such as Spain, Cyprus or Poland remained in the double digits negative zone. With stability being such a seldom viewed status, only South Korea, Colombia and Chile were able to brag about matching closely the levels reached in the first three quarters of last year. In the performersâ&#x20AC;&#x2122; corner, some of the major Latin American, Asian or Middle East cement markets continued their march and notched consistent growth rates.

Q1-Q3 2013/Q1-Q3 2012 Cement Production Growth Rate (%) 20%

-30%

Source: CW Group Research

Argentina

Thailand

China

Peru

Saudi Arabia

Vietnam

Belarus

Japan

UK

Colombia

-20%

South Korea

Ukraine

Poland

-10%

Cyprus

0%

Spain

10%

Ecuador registered the highest expansion, while consuming 4.84 million tons of cement between January and September 2013, 11 percent above the corresponding period of 2012. In October 2013, the growth rate softened slightly with the ten-month growth rate reported at 10.2 percent. However, large investments provide an exciting outlook for the cement market. Infrastructure projects that exceed US$8 billion, 14 hydroelectric power plants deploying around US$7 billion, on top of another US$10 billion pledged for mining, port expansion and housing projects are among the drivers of the cement consumption. Thus, Empresa Publica Cementera del Ecuador, owner of Cemento Chimborazo and Industria Guapan, announced in October 2013 that it is looking for a strategic partner to increase its cement capacity.

Argentina followed closely with 10.7 percent rise up to September 2013, while Peru obtained an increase of 8.8 percent for the referenced period. Peru faced its first YoY To learn more, please contact the CW Research & Analytics team at sales@cwgrp.com or +1-702-430-1748.

21

OCTOBER / NOVEMBER 2013

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CW research & Analytics CEMENT MARKETS

decline in September 2013 (1.2 percent decrease) after expanding for 25 consecutive months. The contraction was generated by a slowdown in construction activities. The disappointing evolution of LatAmâ&#x20AC;&#x2122;s major cement market turned finally for the best as Brazil reached almost 52.5 million tons in cement consumption up to September (3.2 percent over 2012) with the prospect of expanding 4-5 percent versus 2012 by the end of the year.

The worldâ&#x20AC;&#x2122;s biggest cement producer put all concerns to rest after registering an impressive rise in cement production for the first three quarters of the year. China produced 1.735 billion tons of cement until September 2013 , 9.1 percent above 2012. With no significant signs of slowdown anticipated for the remainder of the year, China is projected to reach a whopping 2.39 billion tons in cement production by the end of 2013.

China produced 1.735 billion tons of cement until September 2013

Within the Asian region, Thailand, Vietnam, Japan and Indonesia also reported significant growth rates for the first nine months of 2013, but perhaps one of the most interesting development comes from Myanmar. In the beginning of November, the government of Myanmar selected thirteen cement companies to establish joint ventures to operate and rehabilitate state-owned cement plants. The successful tenders were applied by Shwe Taung Cement, Original Group, Max Myanmar Manufacturing, Asian Cement Public, Ultra Group of Companies, Shwe Khit Aung, Ferrostaal, Mother Industrial, Myint Investment Group, Myanmar Cement & Mineral Production, Global Star, Diadem (Myanmar) and Myanmar Jidong Cement.

On the opposite side, Cyprus reported the highest contraction from the analyzed countries with only 0.4 million tons of cement consumed in the first three quarters of the year (32.2 percent decrease versus 2012). However, Cyprus continued to intensify its exporting activities, which translated into a lower contraction noted at the level of cement production (16.3 percent). On another hand, Spain has the prospect to cross below 20 percent contraction by the end of the year after closing the first three quarters 20.8 percent below 2012.

Myanmar selected thirteen cement companies to establish joint ventures

No major changes are projected to be registered in the last quarter of the year. The expectation is that the growing cement markets will further consolidate their position, while the countries that disappointed in 2013 are estimated to recover some ground (e.g. Brazil).

Q1-Q3 2013/Q1-Q3 2012 Cement Demand Growth Rate (%) 10%

-30% -40%

Source: CW Group Research

Ecuador

Argentina

Thailand

Peru

Saudi Arabia

Japan

Indonesia

UK

Brazil

Switzerland

Pakistan

Colombia

Chile

South Korea

Poland

Germany

-20%

Spain

-10%

Cyprus

0%

To learn more, please contact the CW Research & Analytics team at sales@cwgrp.com or +1-702-430-1748. www.cemweek.com

OCTOBER / NOVEMBER 2013

22

MARKET DATA SNAPSHOT

CW research & Analytics

Cement Production Production (million (million tons) tons) Cement

CementConsumption Consumption(million (milliontons) tons) Cement

Country

LM

MoM (%)

YoY (%)

YTD

YTD (%)

Country

LM

MoM (%)

YoY (%)

YTD

Argentina (Oct)

1.2

10%

18%

9.9

11%

Brazil (Sep)

6.2

-3%

9%

52.4

2%

232.5

3%

11%

1,968.0

9%

Egypt (Jul)

3.3

-9%

-22%

25.1

-12%

1.0 7% 12% 8.2 TABLE AVAILABLE IN THE CEMWEEK 18.2 -4% 6% 168.1 MAGAZINE 5.1 -2% PRINT EDITION. 1% 44.9

0%

France (Jul)

6%

Germany (Sep)

11% 0% 11.6 TABLE2.0 AVAILABLE IN THE4% CEMWEEK 2.6 5% 18.5 MAGAZINE PRINT EDITION. 5.3 57% 3% 41.6

-4%

China (Oct) Colombia (Sep) India (Aug) Japan (Sep)

YTD (%)

-6%

3%

Indonesia (Sep)

23.8

-4%

Pakistan (Sep)

2.1

7.5 WWW.CEMWEEK.COM/SUBSCRIBE -1% 9%

44.9

8%

Peru (Sep)

0.9 -5% 1% WWW.CEMWEEK.COM/SUBSCRIBE

7.6

9%

Thailand (Sep)

3.4

4%

31.3

9%

Saudi Arabia (Sep)

4.4

7%

US (Jul)

8.1

7%

11%

45.3

2%

South Korea (Sep)

Vietnam (Sep)

5.2

6%

27%

44.0

7%

Spain (Sep)

Mexico (Aug)

2.9

Russia (Aug)

-4%

-6%

-1%

Cement Production Production MoM MoM (%) (%) Cement

36%

19%

5%

18.9

2%

40%

13%

41.7

3.2

-8%

-13%

32.5

0%

1.0

11%

-5%

8.2

-21%

CementConsumption ConsumptionMoM MoM(%) (%) Cement

Argentina

China

Colombia

India

Japan

Brazil

Egypt

France

Germany

Mexico

Russia

Thailand

US

Vietnam

Indonesia

Pakistan

Peru

Saudi Arabia

South Korea

Spain

110%

80%

90%

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

70% 50% 30%

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

60% 40% 20% 0%

10%

WWW.CEMWEEK.COM/SUBSCRIBE

-10%

Sep-13

Aug-13

Jul-13

Jun-13

YoY (%)

YTD

YTD (%)

Country

LM

26%

Brazil (Sep)

-7%

Canada (Jun)

MoM (%)

YoY (%)

YTD

YTD (%)

12% IN THE -22% 0.6 TABLE0.1AVAILABLE CEMWEEK 0.1 111% -18% 0.4 MAGAZINE PRINT EDITION. 0.3 12% 28% 1.5

-18%

9%

3.9

-5%

France (Jul)

3%

-10%

2.6

0%

Malaysia (Aug)

0.1

-13%

-12%

5.3

-1%

US (Aug)

0.6

WWW.CEMWEEK.COM/SUBSCRIBE

Cement Exports Exports MoM MoM (%) (%) Cement China

May-13

0.5

Apr-13

Thailand (Sep)

Mar-13

0.3

Feb-13

0.5

South Korea (Sep)

Jan-13

Japan (Sep)

Dec-12

MoM (%)

TABLE IN THE 0.9 AVAILABLE -3% 2% CEMWEEK 5.2 0.3 -16% -26% 2.3 MAGAZINE PRINT EDITION.

Germany (Jul)

Nov-12

CementImports Imports(million (milliontons) tons) Cement

LM

China (Jun)

Oct-12

Cement Exports Exports (million (million tons) tons) Cement

Sep-12

Oct-13

Sep-13

Aug-13

Jul-13

Jun-13

May-13

Apr-13

Mar-13

Feb-13

Jan-13

-60%

Dec-12

-50% Nov-12

-40% Oct-12

-30%

Country

WWW.CEMWEEK.COM/SUBSCRIBE

-20%

-52%

21%

WWW.CEMWEEK.COM/SUBSCRIBE 35% 23%

8% -15% -16%

0.7

17%

3.6

3%

CementImports ImportsMoM MoM(%) (%) Cement Germany

Japan

South Korea

Thailand

Brazil

240%

Canada

France

Malaysia

US

400%

190%

300%

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

140% 90% 40%

100%

WWW.CEMWEEK.COM/SUBSCRIBE

-10%

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

200%

WWW.CEMWEEK.COM/SUBSCRIBE

0% -100%

Sep-13

Aug-13

Jul-13

Jun-13

May-13

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Nov-12

Oct-12

Sep-13

Aug-13

Jul-13

Jun-13

May-13

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Nov-12

Oct-12

Sep-12

Sep-12

-60%

MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year

To learn more, please contact the CW Research & Analytics team at sales@cwgrp.com or +1-702-430-1748.

23

OCTOBER / NOVEMBER 2013

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CEMENT ENERGY MARKETS

CW research & Analytics

CEMENT ENERGY MARKETS Coal Market Update Australia and South Africa output recovers in September September total trading volume slightly dropped versus the previous month following a decline in Indonesia, US and Colombia’s coal deliveries. Loss of volume was offset by an increase of 1 percent and 8 percent in the output from Australia and South Africa, respectively.

Year to date coal trading volumes remain up versus 2012

Year-to-date coal exports from Australia and Indonesia remain over double digits compared to 2012. Australia is up 13 percent after seeing a ramp up in dispatches to China (36 percent), Korea (16 percent) and Japan (7 percent) while Indonesia has grown 20 percent, thanks to higher shipments to China and India.

South Africa’s coal output from Richards Bay Coal Terminal (RBCT) raised 8 percent in September 2013 to 5.6 million tons after declining 16 percent in August. Largest increases in volume, by destination, were in Western Europe (0.3 million tons), Southern Asia (0.2 million tons) and Southern Europe (0.1 million tons).

Coal Global Trading (million tons)

120

Indonesia

Coal Global Trading (million tons) Australia

Russia

South Africa

Colombia

US

Rest

80

0 SEP-13 AUG-13 JUL-13 JUN-13 MAY-13 APR-13 MAR-13 FEB-13 JAN-13 DEC-12 NOV-12 OCT-12 SEP-12 AUG-12 JUL-12 JUN-12 MAY-12 APR-12 MAR-12 FEB-12 JAN-12 DEC-11 NOV-11 OCT-11 SEP-11 AUG-11 JUL-11 JUN-11 MAY-11 APR-11 MAR-11 FEB-11 JAN-11 DEC-10 NOV-10 OCT-10 SEP-10

Source: customs data

40

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OCTOBER / NOVEMBER 2013

24

CEMENT ENERGY MARKETS

CW research & Analytics

Energy Prices Update Coal trading prices flat, demand remains sluggish

Coal Coal trading prices remained flat in main export hubs in September, as the markets continue to be oversupplied and demand remains sluggish.

Australia’s Newcastle coal export price is up one percent from August but down 13 percent versus a year ago. South Africa’s Richards Bay remained steady during September at US$73 per ton but price has plummeted 17 percent since September 2012.

In Indonesia, the average Harga Batubara Acuan (HBA) coal price closed at US$76.9 per ton in September, only 20 cents over the previous month closing price. The depreciation of the rupee has put some pressure in Indonesian prices as India, a major buyer of Indonesian coal, continues to push for lower rates to offset the currency slump.

China’s Bohai-rim Steam Coal Price Index (BSPI), which covers six major coal shipping ports in China, slid at the end of September and reached 531 yuan ($US87.07) per ton, 3 percent and 16 percent below the closing price in August 2013 and December 2012,

Steam Coal FOB Average Prices (US$/ton) 150

Indonesian HBA

US exported

Colombia exported

Australia Newcastle

140

120 110 100 90 80 70 60

SEP-13

JUL-13

MAY-13

MAR-13

JAN-13

NOV-12

SEP-12

JUL-12

MAY-12

MAR-12

JAN-12

NOV-11

SEP-11

JUL-11

MAY-11

MAR-11

JAN-11

NOV-10

SEP-10

JUL-10

MAY-10

MAR-10

JAN-10

NOV-09

SEP-09

50

To learn more, please contact the CW Research & Analytics team at sales@cwgrp.com or +1-702-430-1748.

25

OCTOBER / NOVEMBER 2013

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Sources: : EIA, Colombia Ministry of Mines and Energy, IMF, Indonesia Ministry of Energy and Mineral Resouces

South Africa Richards Bay

130

respectively. Local prices in China remain at their lowest since 2009, to compete with imports, but might recover by the end of the year when most companies start restocking following the arrival of the winter season.

US Petcoke Export Price (US$/ton) rolling 12-month average

140 120 100 80 60

20

AUG-13

JUL-13

JUN-13

MAY-13

APR-13

MAR-13

FEB-13

Petcoke The 12-month average price of U.S. uncalcined petcoke for export markets continued to decline in August and is now at US$78 per ton. Year-to-date prices are down for most Asian markets (36 percent Korea, 33 percent Thailand and18 percent Japan) and most Latin American markets (Panama 14 percent, Peru 12 percent, Brazil 3 percent and Chile 1 percent).

JAN-13

DEC-12

NOV-12

OCT-12

SEP-12

AUG-12

JUL-12

JUN-12

MAY-12

APR-12

MAR-12

FEB-12

JAN-12

DEC-11

NOV-11

OCT-11

SEP-11

AUG-11

0

Source: customs data

40

US petcoke export volume declines : deliveries to China and India drop

U.S. petcoke export volume reached 2.6 million tons in August 2013, down 10 percent versus July. Lower shipments to China, India, Turkey and Mexico were offset by higher volume sent to Japan, Canada, Morocco, Spain, Sweden and Italy.

To learn more, please contact the CW Research & Analytics team at sales@cwgrp.com or +1-702-430-1748. www.cemweek.com

OCTOBER / NOVEMBER 2013

26

CEMENT ENERGY MARKETS

CW research & Analytics

CEMENT ENERGY MARKETS

CW research & Analytics

Japan’s liquified natural gas import price declines for third consecutive month

Natural Gas European natural gas price remained stable in September at US$11.6 per MMBtu, but is still about 1 percent higher than the average of 2012. Price hasn’t been below the US$11 per MMBtu since September 2011.

In the U.S., Henry Hub spot price closed at US$3.6 per MMBtu in September, going back to July level. Natural gas price reached 2-year peak in April at US$4.2 per MMBtu, but has remained below the US$4 per MMBtu since then. The U.S. Energy Information Administration expects that the Henry Hub spot price will average US$3.71 per MMBtu in 2013 and $4.00 per MMBtu in 2014.

Japan’s Liquefied natural gas (LNG) import price decreased for the third consecutive month in September. Price is now below US$16 per MMBtu, the lowest sin January 2013.

Natural Gas Prices (US$/MMBtu)

20

US

Europe

Japan LNG

15

10

To learn more, please contact the CW Research & Analytics team at sales@cwgrp.com or +1-702-430-1748.

27

OCTOBER / NOVEMBER 2013

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SEP-13

JAN-13

MAY-12

SEP-11

JAN-11

MAY-10

SEP-09

JAN-09

MAY-08

SEP-07

JAN-07

MAY-06

SEP-05

JAN-05

MAY-04

SEP-03

JAN-03

MAY-02

SEP-01

JAN-01

MAY-00

SEP-99

JAN-99

MAY-98

SEP-97

0

Source: EIA, World Bank

5

Petcoke - US Exports (million tons - Aug) Petcoke - US Exports (million tons - Aug)

Coal - Exports (million tons) Coal - Exports (million tons) Country

LM

Indonesia

31.5

Australia

16.0

MoM (%)

YoY (%)

YTD (%)

Country

LM

MoM (%)

YoY (%)

YTD

Total US

2.6

-10%

23%

20.7

13%

To Mexico

0.2

US

TABLE AVAILABLE IN THE CEMWEEK 1% 5% 137.7 MAGAZINE PRINT-9%EDITION.80.7 7.7 -16%

20% -9%

Colombia

6.0

52.4

-8%

South Africa

5.6

51.1

-7%

-3%

YTD

13%

-19%

293.3

53%

WWW.CEMWEEK.COM/SUBSCRIBE 8% -3%

Coal Exports MoM (%) Coal Exports MoM (%) Indonesia

Australia

US

Colombia

South Africa

10%

To India To Brazil

0.2

-17%

To Turkey

0.1

To Italy

0.2

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

40%

4%

WWW.CEMWEEK.COM/SUBSCRIBE

1.2

9%

70%

0.9

WWW.CEMWEEK.COM/SUBSCRIBE -54% -67% 1.3

India

-4%

-60%

-38%

16% -12% -12%

Brazil

Mexico

Turkey

Italy

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

0%

-10%

0%

petcoke exports prices MoM USUS petcoke exports prices MoM (%)(%) Global

90%

8%

TABLE AVAILABLE IN-28% THE CEMWEEK -22% 1.9 MAGAZINE PRINT 0.1 -72% -28%EDITION. 1.7

190% 140%

YTD (%)

Aug-13

Jul-13

Jun-13

May-13

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Nov-12

Oct-12

Sep-12

Aug-12

Sep-13

Aug-13

Jul-13

Jun-13

May-13

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Nov-12

Oct-12

Sep-12

WWW.CEMWEEK.COM/SUBSCRIBE

-8%

Coal - Imports (million tons) Coal - Imports (million tons) Country

LM

MoM (%)

YoY (%)

YTD

YTD (%)

20.1 AVAILABLE -4% 35% CEMWEEK 190.8 TABLE IN THE 15.2 -11% -13% MAGAZINE PRINT EDITION. 141.6

China Japan Korea, South

9.4

India

10.0

Turkey

2.4

-22%

-10%

-14% 9% WWW.CEMWEEK.COM/SUBSCRIBE 44%

13%

Country

LM

2%

Total US

95.3

1%

To Mexico

-3%

111.7

29%

To India

TABLE AVAILABLE IN THE CEMWEEK -1% -8% 65.8 PRINT 94.9 MAGAZINE -4% 2% EDITION. 93.7

21.4

6%

To Brazil

64.2

To Turkey

68.7

To Italy

68.6

Coal - Global export prices (USD/ton) Coal - Global export prices (USD/ton) Country

LM

MoM (%)

YoY (%)

YTD

76.9

Australia US Colombia

76.8

South Africa

73.1

0%

-11%

84.4

15%

5%

64.3

-4% 5%

-1%

-8%

63.4

-3%

0%

-10%

68.5

-1%

MoM (%)

YoY (%)

YTD

YTD (%)

WWW.CEMWEEK.COM/SUBSCRIBE -1% -7% 69.6

0%

Natural Gas Prices (US$/mmBtu) Natural Gas Prices (US$/mmBtu)

-7%

Japan

TABLE AVAILABLE IN-5% THE CEMWEEK 0% 16.2 PRINT 11.6 MAGAZINE 0% 5% EDITION. 11.9 3.6

0%

-19%

83.6

-13%

0%

-15%

79.3

-17%

US

LM

16.0

WWW.CEMWEEK.COM/SUBSCRIBE 6% 27% 3.7

-5% 5% 45%

Natural Gas prices (%) Natural Gas pricesMoM MoM (%) Australia

US

Colombia

South Africa

US 20%

10% 5% 0%

WWW.CEMWEEK.COM/SUBSCRIBE

Japan LNG

WWW.CEMWEEK.COM/SUBSCRIBE

-5%

-10%

Europe

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

15%

0% -5%

YTD %

78.4

Country

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

10%

YTD

-10%

-14%

Coal export prices MoM (%) Coal export prices MoM (%) Indonesia

YoY (%)

-4%

-15%

Europe

WWW.CEMWEEK.COM/SUBSCRIBE

MoM (%)

75.8

YTD (%)

TABLE AVAILABLE IN THE CEMWEEK 83.2 1% -13% 91.5 MAGAZINE PRINT-14% EDITION. 79.3 72.8 -2%

Indonesia

Petcoke - US export prices (USD/ton - Aug) Petcoke - US export prices (USD/ton - Aug)

15%

Sep-13

Aug-13

Jul-13

Jun-13

May-13

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Nov-12

Oct-12

Sep-12

Sep-13

Aug-13

Jul-13

Jun-13

May-13

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Nov-12

Oct-12

Sep-12

-10%

Source: CW Group analysis estimates

LM: latest month (September, except where other specified); MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year

To learn more, please contact the CW Research & Analytics team at sales@cwgrp.com or +1-702-430-1748. www.cemweek.com

OCTOBER / NOVEMBER 2013

28

MARKET DATA SNAPSHOT

CW research & Analytics

people NEW LEGAL FORM AT DYCKERHOFF At Dyckerhoff, a buy-out of minority shareholders by the main shareholder Buzzi Unicem, as well as the delisting of Dyckerhoff shares from the Frankfurt Stock Exchange, have enabled the company’s supervisory board to approve the transformation of the company’s legal form from today’s corporation (Aktiengesellschaft, AG) to a future limited liability company (Gesellschaft mit beschränkter Haftung, GmbH).

The new legal form will become effective in March 2014, and will be accompanied by changes in the company’s organization and management. Through mutual agreement between the management board and the supervisory board, part of the company overhaul will include Drs. Stefan Fink and Stefan John, as well as CEO Wolfgang Bauer, stepping down from their current positions.

Bauer has been a member of the management board since October 2000 and CEO since March 1, 2004. Dyckerhoff reports that his contributions to the company have been substantial. new Country Chief Executive Officer AT LAFARGE Lafarge has appointed Guillaume Roux as its new Country Chief Executive Officer for Nigeria and the Benin Republic, effective September 2013. Roux succeeds Jean-Christophe Barbant, who has moved on to another responsibility within Lafarge Group after four years in Nigeria. Roux succeeds Jean-Christophe Barbant, who has moved on to another responsibility within Lafarge Group after four years in Nigeria. Roux, who is also an Executive Vice President in Lafarge Group and holds joint French and American nationalities, is a graduate of the Institut d’Etudes Politiques in Paris.

He joined Lafarge Group in 1980 as an internal auditor. After holding several key finance positions in France and the United States, he was appointed Vice-President of Strategy and Marketing for North America in 1996. He then served as Chief Executive of Lafarge operations in Turkey in 1999.

29

OCTOBER / NOVEMBER 2013

Ahmed bin Mohammed Omran as a board member at Saudi Cement Professor Ahmed Al-Omran will serve as representative of the General Organization for Social Insurance, effective October 2013, and will complete the remainder of the term of Engineer Abdullah bin Abdul Rahman Alsuhaibani. The new appointment will be presented to the next general assembly of shareholders for approval.

Professor Ahmed Al-Omran holds a Bachelor’s degree in information systems and served as Deputy Governor for Information Technology Foundation.

SERGEI SHEPTALIN, NAMED ONE OF RUSSIA’S BEST MANAGERS Sergei Sheptalin, General Director of Achinsk Cement, part of the holding BaselCement, has been named one of Russia’s best managers of regional enterprises. The 14th annual ranking of Top 1000 Russian Managers recognizes top managers based on evaluations from their peers.

www.cemweek.com

Sheptalin has headed Achinsk Cement since 2007. Currently, Achinsk is one of the companies forming the building market of Krasnoyarsk Krai. Achinsk’s share of the Siberian market is about 10 percent, and delivery destinations include regions of the Urals and Volga federal districts.

JUAN CASTELLS MASANA HAS RESIGNED FROM CEMENTOS PORTLAND VALDERRIVAS Cementos Portland Valderrivas Board Director Juan Castells Masana has resigned his position for personal reasons. Castells Masana sat on the Audit and Control, Nominating, Compensation, and Corporate Governance and Executive Strategy committees for Cementos Portland. He began his position as external director in May 1993.

A TEC announced that Mr. Jai Bardhan will serve as sales and process engineer for the company in India ased in New Delhi at Loesche India’s office, Mr. Bardhan will be primarily responsible for the sales activities of the A TEC and A TEC GRECO group in India.

He will be supported by Michael Suppaner, Sales Engineer at A TEC Austria, as well as by the sales & marketing management of Loesche India. Mr. Bardhan began his career as chemical production and process engineer with Holcim Ambuja Cement.

The position provided him with experience in project management as well as safety and team management. Mr. Bardhan holds a B-Tech in chemical engineering from the West Bengal University of Technology.

Dimitri KnjeginjiC to become new CEO AT LAFARGE SERBIA Dimitri Knjeginjić is set to become the new CEO of Lafarge Serbia, with responsibility for all three business lines: cement, aggregates and concrete. Knjeginjić gained extensive international experience working for Lafarge in Serbia, North America and France. Previously, he served as Vice President for the Organization and Human Resources Cement business divisions, based in Paris. Knjeginjić will replace Costin Bork, who has become director of Lafarge Romania.

Walter Dissinger, Global Vice President for Votorantim Cements Dissinger has been with the company since June 2013, and has been responsible for the management of the cement, aggregates, concrete, and complementary products businesses. Dissinger’s transition process will begin immediately. During this period, in addition to maintaining his current responsibilities, Dissinger will work alongside the current President, Paulo Henrique de Oliveira Santos, on organizational and strategic aspects of the company. Dissinger’s mission will be

to continue the process of organic growth in the domestic market through ongoing expansion and to accelerate the process of integration and growth in other markets globally.

NEW BOARD FOR COBOCE Coboce has elected a new board to serve for the next two years. The new general secretary of the Cooperative Boliviana de Cemento, Industries and Services (Coboce) will be Demetrio Rojas Saavedra.

Rojas Saavedra belongs to the maintenance department of the factory and brings over 10 years of experience. He will replace Coboce’s former leader, Corsino Villarroel.

Rojas Saavedra is supported by 21 workers in various positions within the union directory.

Dr. Isa bin Baissy, NEW gm of Al Jouf Cement Dr. bin Baissy was previously general manager of one of the cement companies operating in the Kingdom, and brings extensive experience in the cement industry. He holds a Bachelor’s degree in mining engineering and a Master’s in business administration from the King Abdul Aziz University in Jeddah, as well as a Ph.D. in business administration from the University of Atlanta.

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OCTOBER / NOVEMBER 2013

30

year. Year-to-date, Ul’yanovskcement has produced 1.4 million tons of cement and 1.2 million tons of clinker, year-over-year increases of 3 and 6 percent, respectively.

September production reached 0.173 million tons of cement and 0.143 million tons of clinker, up year-over-year by 11 and 12 percent, respectively. September shipments totaled 0.175 million tons of cement, up 114 percent year-over-year.

Year-to-date shipments have totaled 1.4 million tons of cement, up 3 percent yearover-year.

REGIONAL REPORT:

Europe Portuguese conglomerate Semapa’s profits fell 52 percent to 39 million euros in H1 2013. Overall, Semapa’s business stood at 233.5 million euros, a decrease of 3.2 percent year-over-year.

In Italy, cement makers have reduced emissions and are pushing for an even cleaner production cycle.

The Spanish cement sector has fallen by 27 percent year-to-date. Factories such as Malaga are sustained by exports. Spain’s Portland Valderrivas is planning cuts and layoffs affecting 620 people, or 97% of its workforce.

El Puerto Exterior Port in Coruna, Spain, recently received a new shipment of 3,500 tons of cement at Punta Langosteira.

The UK Competition Commission wants Lafarge Tarmac to sell one of its cement plants and some of its ready mix concrete sites to prevent coordination between three major players − Lafarge Tarmac, Cemex and Hanson.

In Turkey, Eskisehir Küpeliler Inc. has begun construction of a $135 million, 2 million-ton cement factory. Turkey’s Competition Board has fined Denizli Cement 2.8 million pounds, Göltaş Lake District 3.1 million pounds, and Konya Cement 3.5 million pounds for violating the Competition Act. In France, Lafarge has issued a 750 millioneuro bond with a 7-year maturity and fixed

31

OCTOBER / NOVEMBER 2013

annual coupon of 4.75% to institutional investors.

Germany wants to review Holcim’s proposed acquisition of parts of Cemex Group’s activities in western Germany, France, and the Netherlands Russia’s Mordovcement has increased cement production to 3.840 million tons year-to-date, up 4.4% year-over-year.

Shipment of cement rose 5.6% yearover-year, to 3.911 million tons. Clinker production increased 1.9% to 3.181 million tons. Calibrated products amounted to 0.87 million tons, up 2.3% year-over-

Russia’s Mal’tsovsky Portland produced 2,393,925 tons of cement between January and August, up 19.4 percent year-overyear. Total shipments reached 2.4 million tons, up 17.9 percent year-over-year.

Shipments by road increased by 4 percent to 21 percent of total shipments, with the remainder sent by rail. High-quality cement CEM I 42,5 N and PC 500-D0-H currently accounts for 77.4 of total product volume.

Over the same period, Russia’s Katavsky Cement boosted shipments by 6.3 percent year-over-year. Katavsky produced 0.81 million tons of cement and 0.64 million

EUROPE, RUSSIA AND BALTIC REGION EUROPE, RUSSIA AND BALTIC REGION Company/Location

Overview

Batısöke Söke Çimento Sanayi/Turkey

KHD Humboldt Wedag was awarded a contract for engineering and delivery of equipment to increase the cement grinding capacity from 59 tph to 195 tph at the plant located in western Turkey.

Asia Cement/Russia

New Era Cement has opened a new clinker production facility in Shuangyashan, Heilongjiang Province. The 4,000 tons per year plant was completed in less than 18 months.

Sengileevsky Cement/Russia

Siemens secured a contract from TPI Polene Public Company for engineering and supply of the power distribution system and drives for the new clinker production line in Saraburi, Thailand. Operation at the 12,000 tpd clinker line is due to commence in October 2014.

TABLE AVAILABLE IN THE CEMWEEK Akkord Cement/AzerbaijanMAGAZINE PRINT EDITION.

Taiheiyo Cement will expand its capacity by 15% this year investing at least $3 million or P150 million.

Norm Cement/Azerbaijan

Camargo Corrêa Group is looking to invest R$ 800 million in a cement

plant in Amazonas. The installed capacity of the plant will be 0.9 milWWW.CEMWEEK.COM/SUBSCRIBE lion tons per year.

Calucem Cement/Croatia

Calucem recently performed a new environmental impact study, which initiated the process of increasing production by 15 percent through the construction of a ninth line. The objective is to produce a new aluminous cement, called Hipercem.

Cementa/Sweden

Cementa is building a new cement facility that will use fly ash. The plant will be available in the market in 2015.

SFERA/Montenegro

Russia based cement maker SFERA is looking to build a plant in Pljevlja, Montenegro

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MIDDLE EAST MIDDLE EAST Company/Location Qatari Investors Group/ Qatar

Overview FLSmidth confirmed that negotiations regarding supply of equipment to a Qatari cement plant are currently underway

TABLE AVAILABLE IN THE CEMWEEK Raysut Cement/Oman MAGAZINE PRINT EDITION.

Raysut Cement Company is building a cement handling terminal at Duqm port in partnership with other investors. The terminals will help import bulk cement and bitumen.

Oman Cement/Oman

WWW.CEMWEEK.COM/SUBSCRIBE Oman Cement has awarded the contract for the supply and installation of its new cement grinding mill to FLSmidth. The grinding mill will have a capacity of 150 tons per hour.

tons of clinker. Katavsky’s shipments have totaled 0.83 million tons over the period.

Meanwhile, Oskolcement has shipped 2.2 million tons of cement, up 2 percent yearover-year. August’s shipments totaled 0.075 million, up 0.7 percent year-over-year.

Russian firm Mechel has completed a $174.4 million, 1.6 million-ton grindingmixing complex using vertical roller mills to grind down to 4500-6000 Blaine fineness.

Total Russian exports of cement in H1 2013 reached 1.3 million tons. The Ukraine imported 0.62 million tons of Russian cement in H1 2013. Kazakhstan imported 0.39 million tons, and Azerbaijan imported 0.17 million tons. Total Russian exports were valued at more than $119 million.

Currently, a ton of cement sells for $70 to $130.

Middle East

6.4 million tons in the sixth calendar month. Iran exported 8.064 million tons of cement and clinker in the first five months of the Iranian calendar year, up 43.5% year-on-year. Exports of cement and clinker amounted to 6.52 million tons and 1.53 million tons, respectively. Iran plans to increase its cement output to 85 million tons by 2015.

In Syria, Adra’s cement production between January and July totaled 0.14 million tons, with a utilization rate of 28 percent. Over the same period last year, the company produced 0.31 million tons, with a utilization rate of 55 percent. The price of Portland cement is 12,000-12,500 pounds per ton. The price per ton of 32.5 Portland is 13,000-13,500 pounds, while the price per ton of Portland cement sulphateresistant is 15,000-15,500 pounds.

2014. To date, Saudi’s Southern Cement has received its third and fourth 0.0495 million-ton clinker imports, and the company expects another 0.19 million tons and Cement Company’s quota of 0.814 million tons. Meanwhile, Saudi’s TCC has secured 500 million riyals in Islamic financing, and Al Jouf Cement has received a 0.02 million-ton cement shipment from Almkas.

Saudi’s Eastern Province Cement has begun operation of a 600-ton-per-day production line of specialized cement. The line is expected to increase the company’s 2014 profits by 15 million riyals.

In Jordan, daily cement demand is up to 0.012 million tons per day. However, cement capacity stands at 0.035 million tons per day. Ex-works prices per ton are set at 79 dinars, while retail prices vary between 90-92 dinars per ton. Prices of cement on the local market recently rose 8 percent per ton in a few days, hitting 79 dinars vs. 72 dinars. The domestic Jordanian market in 2013 has registered demand of 2.4 million tons year-to-date.

Saudi Arabian cement makers will be able to supply the market at least until H1

Iran produced 38.3 million tons in the first half of the Iranian calendar year, up 4 percent year-over-year. North Khorasan Province exported 0.022 million tons of cement, valued at $13 million, over the period. Nationwide, production reached

www.cemweek.com

OCTOBER / NOVEMBER 2013

32

30 percent surplus. Exports fell to 0.078 million tons in 2012 vs. 0.53 million tons previously.

Between January and July, Morocco cement sales fell by an estimated 11.7 percent.

National sales have hit 8 million tons so far. After posting a decline of 21 percent at the end of March 2013 and another decline of 12.6 percent at the end of H1 2013, the cement market rose somewhat in late August.

Africa Egyptian cement production has reached 55 million tons per year, surpassing demand. Cement prices are expected to remain at 550 pounds per ton. Meanwhile, the Egyptian government has voted to allow imported coal to fuel cement plants.

Egypt has asked Lafarge to cut cement prices.

Kenya’s Athi River (ARM) Cement expects its earnings to grow with the addition of a new plant in Tanzania.

Tunisia’s Carthage Cement has started initial production at its new clinker unit, the result of four years of work and 800 million dinars of investment.

Tanzania-based cement makers have called on the government to reinstate the East African Custom Union Protocol 2005. The firms complain of declining profits due to substandard imported cement in the local market.

Construction revival has sparked price wars in the Ivory Coast. The company CIMAF, specializing in grinding clinker, is competing with two traditional producers: Ivorian Company of Cements and Materials (Socimat) and the Amida Angola is boosting cement production.

Group. Amida and Socimat had a 2012 Namibe Province is receiving the first production capacity of 2.54 million tons 0.02 million tons of cement produced in In Zambia, Chilanga Cement prices in and produced1.85 million tons, creating a Kwanza Sul Province.

Ndola have gone up by K15 to K80 because of escalating construction activity.

AFRICA AFRICA In South Africa, local cement sales Company/Location Overview increased 9.8 percent year-on-year, to Ethiopia based Habesha Cement plans to start construction on its pro3.2 million tons, in Q3 2013. Sales in Q2 Habesha Cement/Ethiopia posed factory later this year with the objective to commission it by 2013 reached 2.6 million tons. The yearSeptember 2015. to-date sales volume, at 8.85-million tons, is already 4.2 percent higher than Sephaku Cement/South Sephaku Cement will advance the ramp-up of its cement milling plant in Delmas, in Mpumalanga and the plant is expected to be operational the full 2012 sales volume. South Africa’s Africa early next year. Power has already been connected to the 1.4 million government aims to spend R4 trillion on tons cement plant. infrastructure over the next 15 years.

In Uganda, cement prices have fallen on low demand. The current price per bag is Shs 25,500-Shs 27,000, a drop of around Shs 6,000.

Construction of a $256 million, 1 millionton cement plant in Ben Zireg, Algeria, will begin in the first quarter of 2014. The plant will create more than 500 direct jobs and 3,500 indirect jobs and will open in early 2017. Algeria plans to curtail cement imports by 2017. Cement prices in Algeria reached 1,000 dinars per bag.

33

OCTOBER / NOVEMBER 2013

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

United Cement Company/ Nigeria Government/Lesotho

Sinoma and United Cement have joined forces to build a 6,250 tons per year cement production unit. The contract for Mfamosing2 totals 277 million USD and is the largest for Sinoma in West Africa.

The government will fund the construction of a R400m cement plant WWW.CEMWEEK.COM/SUBSCRIBE producing 200‚000 tons a year that will supply the construction of the dams and houses for the second phase of Lesotho Highlands Water Project (LHWP).

Dangote Cement/Cameroon

Cameroon canceled the proposed cement plant project by Nigerian cement giant Dangote.

Dangote Cement/Niger

Dangote Cement plans to spend US$350 million to build a 1.5 million tons cement plant in Niger.

Lafarge Wapco/Nigeria

Lafarge Wapco reconfirmed plans to increase its cement production capacity in Nigeria, while looking to tap into the growing cement market.

www.cemweek.com

REGIONAL REPORT:

JK Lakshmi Cement looking to expand capacity in next fiscal year The company’s cement plant located in Chattishgarh has resumed operations and it is expected to expand cement capacity in the first half of the next fiscal year.

Thus, the cement plant’s capacity will be increased from the current 2.7 million tons to 8 million tons. JK Lakshmi’s activities have been affected lately by the economic slowdown, slowing demand and scarcity of water.

Raw materials price increase put pressure on cement prices in India Cement prices may increase by around Rs50 per 50 kg cement bags in Mumbai given the price hike of raw materials. The increase is not forecast to last long, as cement demand continues to be weak.

Cement prices took a previous hit in August, following the relatively stable price evolution in July. The decline was driven by an increased supply due to the entry of new players, poor demand, shortage of materials, and good monsoons across most regions.

India’s Birla prepares for tough times Birla’s move to acquire Jaypee Cement’s 4.8 million-ton cement plant in Gujarat is seen as part of the cement maker’s strategy for growth amid tough times. UltraTech’s Cement will rise to 56 million tons per year, projecting another increase by the end of 2015 when the company will be rated at 70 million tons in cement capacity per year.

As a comparison, Holcim’s cement capacity in India will increase to 65 million tons by

2015 from the current 57 million tons.

Pakistan cement sales grow in September Total cement dispatches increased by 6 percent during September 2013 to 2.76 million tons. The increase in monthly sales was the result of 11 percent yearly hike in local dispatches to 1.98 million tons as against 1.79 million tons in the same period last year. The cement market picked up in September 2013 after facing two months of heavy rains that halted construction activities.

From the financial perspective, Pakistan cement market continued to underperform due to concerns of a reversal in SBP’s monetary easing stance and fears of an emergence of a price war. Many cement companies have used their operating cash flows over the last two years to de-leverage balance sheets.

in the production of cement. During August and September 2013, Tajikistan produced 90,000 tons, reaching to a total output for the first three quarters of the year of 119,700 tons. The commissioning of the Yavan cement plant, owned by Tajikcement, represented a contributing factor to the positive outcome of the third quarter. However, the country’s production for the nine-month period was still below the 182,000 tons registered in 2012 during the same time frame.

Additionally, the foundation stone for the new Tajik-Chinese JV cement plant was laid on October 1. The 0.6 million tons cement plant will be built in the town Chormagzak, about 30 kilometers south of Dushanbe.

Higher cement production reported in Kazakhstan In the first eight month of 2013, Kazakhstan produced 9.3 percent more cement than in the corresponding period of 2012 and reached 4.478 million tons.

Sri Lanka-based Kankesan Cement to get upgrade Sri Lanka Cement Corporation will spend Rs1,500 million to upgrade the Kankesan Cement Plant in Kankesanthurai.

The company expects to recover the investment within 15 years after commencing operations and with a net profit contribution of 8 percent.

Tajikistan cement production increased in September Government data noted a sharp increase

www.cemweek.com

OCTOBER / NOVEMBER 2013

34

panies. They also urged the government to include all investments of integrated cement plants, especially US$250 million and above, under the Investment Priorities Plan. Higher tariffs should also be imposed on non-Asean imports.

REGIONAL REPORT:

Infrastructure investments support the Chinese cement demand After reaching 214 million tons in cement output in August, the Chinese cement industry registered another increase the following month (225 million tons). Overall, in the first nine months of the year cement demand reached 1.75 billion tons, almost 9 percent above 2012. Although, initial expectations revealed less optimistic growth rates, the Chinese cement market was mostly driven by an increase in infrastructure investment. On the back of increased cement demand, prices showed a strong evolution with increases in most of the Chinese regions.

Taiwanese companies are also projected to benefit from the increased Chinese demand. Taiwan Cement predicts that company’s shipments to China will increase by 10 to 15 percent this year and reach 45 or 46 million tons.

Indonesian cement companies increase investments along with the surging demand After a slow start in the third quarter, cement shipments surged in September registering an all-time high for the month.

Domestic cement sales amounted to 41.6 million tons in the first nine months of the year, increasing 5.3 percent over the corresponding period of 2012. Demand outside Java and stalled infrastructure projects continue to limit growth on the market.

At the cement capacity level, investments are being pushed forward with Semen Indonesia looking to increase installed capacity to 90 million tons. The compa-

35

OCTOBER / NOVEMBER 2013

ny is preparing to open a new packaging plant in Banjarmasin, South Kalimantan, as well. Siam Cement is also building a cement plant in Sukabumi, West Java in the exchange of US$304.7 million with the aim to produce a maximum cement output of 1.8 million tons per year. On another note, Holcim Indonesia’s Tuban 2 received a boost in funding from BNP Paribas, which will extend its loan by US$98 million. However, Indonesian cement companies are forced to increase capex given the increasing costs of imported materials and weak rupiah.

Philippine cement producers lobby for fiscal incentives Driven by the necessity to operate in a leveled domestic playing field, Philippine cement companies called on the Trade Department to grant similar incentives for new entrants and expanding com-

Following its continuous expansionary efforts, Taiheiyo Cement is investing US$3 million to increase cement capacity by 15 percent this year. After the project is commissioned in 2014, cement capacity at the plant will be 150 percent higher than two years ago.

Cement prices increase in Vietnam The Finance Ministry announced an 8-9 percent increase in cement prices, applicable from the end of September. Before the increase, retail prices were reported from 1.28 million to 1.56 million VND per ton in the Northern provinces and from 1.60 million to 1.64 million VND per ton in the Southern provinces.

South Korea deepens its recession The domestic real estate market is in recession and the rise in international commodity prices is hitting the cement industry hard. In the last five years, sluggish sales resulted in 900 billion won of losses, and the cement industry now demands a price hike, disapproved by construction and ready-mix concrete companies.

ASIA PACIFIC Company/Location Yangshan Cement/China

Overview China’s Yangshan Cement has opened a new 1.48 million tons of clinker and 1.8 million tons of cement production facility in Quanzhou, Fujian. Total cost was estimated at 1.8 billion yuan.

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

New Era Cement/China

New Era Cement has opened a new clinker production facility in Shuangyashan, Heilongjiang Province. The 4,000 tons per year plant was completed in less than 18 months.

TPI Polene/Thailand

Siemens secured a contract from TPI Polene Public Company for engi-

neering and supply of the power distribution system and drives for WWW.CEMWEEK.COM/SUBSCRIBE the new clinker production line in Saraburi, Thailand. Operation at the 12,000 tpd clinker line is due to commence in October 2014.

Taiheiyo Cement/Philippines

Taiheiyo Cement will expand its capacity by 15% this year investing at least $3 million or P150 million.

Vietnam

Camargo Corrêa Group is looking to invest R$ 800 million in a cement plant in Amazonas. The installed capacity of the plant will be 0.9 million tons per year.

www.cemweek.com

REGIONAL REPORT:

SOUTH AMERICA In Argentina, a train illegally carrying 2.5 million kilos of bulk cement valued at over 2 million , was detained by the collection agency ARBA. The train had left Olavarria District and was headed toward Vicente Casares.

In Argentina’s San Juan, the price of cement is now 17.21 pesos per 50-kilo bag, an increase of 39.3 percent. The spike stems

from a broken line at the Loma Negra factory in Drink, Rivadavia. Loma Negra reported a banner month for August, with sales exceeded the previous record for Argentina by 20,000 tons.

September’s cement sales rose 8.8 percent year-over-year in Brazil, reaching 6.2 million tons. Sales advanced in the Northeast, Midwest and South by 16.4 percent, 17.6 percent, and 12.8 percent, respectively.

Demand in the North fell 0.8 percent, while

demand rose 3.5 percent in the Southeast.

Third quarter sales totaled 18.8 million tons, up 3.8 percent year-over-year. Yearto-date sales totaled 52.4 million tons, up 2.3 percent year-over-year. Over a twelvemonth period, the market has totaled 69.5 million tons, up 2.7 percent year-over-year.

Brazil-based cement maker CSN has tapped MRS to transport cement from its plant in Volta Redonda to Rio de Janeiro, São José dos Campos (SP), and São Paulo.

The agreement holds through November, 2026, and is worth $23 million per year.

Brazil’s Cimento Zumbi is installing a new

plant in Alagoas State. The $10 million plant will produce 65 tons per hour. The unit is predicted to create 58 direct jobs and 173 indirect jobs. In Paraíba, Brazil, current cement production is 2.5 million tons per year. The state is projected to produce 10 million tons per year after planned industry increases. Cement supply remains low in Açailândia, where construction has grown recently by 30 percent.

The Venezuelan cement sector could col-

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lapse because lack of investment since nationalization has created spare parts shortages. Facilities affected include the National Cement Factory (Miranda), Andean Cement (Trujillo), Cemex Mara (Zulia), and Venezuelan Cement (Lara).

The government is planning a new plant in Tachira State to meet demand. Venezuela’s Cerro Azul plant will start production by mid-November. Cerro Azul’s first line can produce one million tons of cement per year, half the plant capacity. The remainder of Cerro Azul’s production will come online in early 2014.

Domestic cement consumption increased in Peru In August, Peru experienced an increased cement consumption by 6.01 percent yearover-year. Higher increases occurred in July (11.11 percent year-over-year) and June (6.98 percent year-over-year), and consumption has overall registered 21 months of uninterrupted growth on private and public works construction. While the

January construction growth rate reached 18.4 percent, it fell to 3.7 percent in March, rose to 26.5 percent in April, and slipped back down to 7 percent in June. Local cement sales (representing 93 percent of the construction industry) are expected to grow this year between 7 percent and 10 percent, compared with 15.8 percent in 2012 and an annual average of 10.8 percent over the past five years. Cement shipments in Peru totaled 6.7 million tons between January and August 2013, an increase of

OCTOBER / NOVEMBER 2013

36

9.87 percent year-over-year. Cement production was 6.8 million tons, up 9.81 percent. Meanwhile, exports totaled 0.125 million tons, an increase of 36.14 percent.

Total cement dispatches reached 6.8 million tons over the period, up 10.26 percent year-over-year.

In Bolivia, a new 1.3 million-ton capacity factory in Caracollo, Oruro, will cost BOB 306 million. The main cement producer in Bolivia is the Sociedad Boliviana de Cemento (SOBOCE), with a factory 35 kilometers from the city of La Paz. Construction of a second new cement plant, in Potosí, is expected after construction of a $214 million pipeline.

Sales of cement fell in Colombia Production and sales of cement in Colombia fell in August by 0.2 percent and 4 percent, respectively. A decrease of 6.6 percent was attributable to marketers (-11.8) and those driving prefabricated (-9.5 percent). By contrast, builders and contractors (+8.6) registered the highest demand, followed by concrete companies (+3.4).

Declines in shipments occurred in Nariño (-32.7), Boyacá (-31.7), Meta (-19.5), Huila (-17.8), Bogota (-9.2), and Santander (-8), combining to subtract 4.7 percent. Cemex in Colombia is looking to build a 0.5 million-ton capacity plant for $125 million.

and a Cementos del Oriente bag for 23,500 pesos.

Cement production rose in Trinidad In Trinidad, cement production rose 96.9 percent year-on-year or 0.18 million tons between January and May 2013, after falling 8.8 percent, or 0.02 million tons, between October and December 2012. Total sales increased 24.8 percent between October 2012 and May 2013, to 0.57 million tons. Domestic sales increased 25.7 percent, to 0.41 million tons. Cement exports increased 22.9 percent to 0.16 million tons. The price of cement fluctuated, falling quarter-over-quarter by 27.7 percent to $48.86 per bag in the first quarter and rising in the second by 16.9 percent to $57.12.

Lafarge has sold its cement operations in Honduras to Cementos Argos for 435 million euros. The value represents a 2012 EBITDA multiple of 8.6. Previously, Lafarge owned 53.3 percent of its Honduran subsidiary (Lafarge Cementos SA de CV).

NORTH AMERICA In the US, cement consumption is expected to increase four percent in 2013 and approach double-digit growth in 2014 and 2015. 2013 growth hinges on the residential construction market. Local public spending is projected to reach 11 percent in fiscal year 2016.

Lafarge expects the modernization of its Ravena, U.S.-based unit to be complete

by July 1, 2016. Upgrades should increase capacity by 57 percent and decrease energy needs by 49 percent.

AMERICAS AMERICAS Company/Location

Overview

Lafarge Ravena/United States

The upgrade program for the Ravena based unit is expected to be completed by July 1, 2016. The capacity at the facility should expand by 57

Gray cement production in Colombia, up 12.1 percent Gray cement production in Colombia reached 1.003 million tons in September, up 12.1 percent year-over-year, while 0.98 million tons were shipped to the domestic market, an increase of 13.7 percent.

Growth occurred in distribution channels, builders and contractors, concrete companies, and marketing, contributing 13.4 percent. Gray cement deliveries increased in Antioquia (20.2 percent), Ontario (28.7 percent), Norte de Santander (55.2 percent), and Caldas (40.0 percent), contributing 7.6 percent to the total rise of 13.7 percent.

percent, while the energy needs are projected to decline by 49 percent.

Port-Daniel-Gascons/Canada

Two prominent business clans in Quebec, the Beaudoin-Bombardier (McInnis Cement) and Desmarais (Lafarge) are now squaring off

TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.

against each other over a cement plant project. Lafarge says McInnis could benefit from Quebec taxpayer money to finance its project and flood the market with product when the industry is already oversupplied.

Cemex Latam/Colombia

WWW.CEMWEEK.COM/SUBSCRIBE Cemex is looking to build a 0.5 million tons per year cement plant by investing $125 million. Construction is estimated to last about 24 months.

Cimento Zumbi/Brazil

Cimento Zumbi is installing a new plant in Alagoas state. All equipment for mounting the unit will arrive by the end of November. With an investment of $ 10 million and a production capacity of up to 65 tons of cement per hour, the plant will be fully operational in mid-June 2014.

In contrast, Nariño (-20.9 percent), Cordoba (-6.2 percent), and Huila (-1.1 percent) subtracted 0.6 percent overall. A bag of Holcim cement sells for 25,000 pesos, a Cementos Argos bag for 24,500 pesos,

37

OCTOBER / NOVEMBER 2013

Camargo Corrêa/Brazil

Camargo Corrêa Group is looking to invest R$ 800 million in a cement plant in Amazonas. The installed capacity of the plant will be 0.9 million tons per year.

www.cemweek.com

sector coverage : Construction & BUILDING MATERIALS by BmWeek.com

CONSTRUCTION Saudi Arabia has allocated more than $17 billion for transportation and infrastructure in 2013, up 16 percent year-over-year.

In the EU, construction spending rose by less than 1 percent from June to July. July data was available for only some member states.

The most built-up European country is Malta, at 33 percent artificial surface, followed by Belgium with 13 percent. In the UK, 7 percent is built-up, 20 percent forest, 22 percent cropland, 40 percent grassland, 7 percent water, 6 percent shrubland, and 1 percent bare land. Across the 27 EU countries surveyed, bare land accounts for 2 percent, cropland a quarter, and grassland a fifth of land area. These values are based on a large-scale land survey, the land use/ cover area frame survey (LUCAS), involving 750 field surveyors collecting data at 270,000 points In the UK, construction orders, valued at ÂŁ5 billion, escalated by 12 percent, yearover-year, in the year leading up to Q2 2013. New infrastructure orders over the same period were up 19.8 percent, and orders for public non-housing, including

schools and hospitals, grew by 12.6 percent.

The Peruvian construction sector is expected to grow by 14 percent (6.5% of GDP) in 2013. The sector has registered eight consecutive growth years.

JP Morgan, 20 percent outperformance by construction companies In Australia, JP Morgan reported 20 percent outperformance by construction companies in the latter half of 2012. The recovery arrived courtesy of low US interest rates and the bottoming of the US property market. The more domestic players such as CSR, Fletcher Building, Brickworks, and Adelaide Brighton have had no boost from Australian activity. Australian building approvals in July showed a 10.8 percent seasonally adjusted rise, but the data slipped 4.7 percent in August. The 12-month period to August was up 10.3 percent for private sector houses, compared with a 12 percent increase for the 12 months to July.

UAE, Qatar, and Saudi Arabia, more than 75 percent of the total pot Ongoing road and bridge developments across the GCC are currently valued at

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$109 billion. Upcoming UAE road and bridge investments are worth $58 billion, while Saudi Arabiaâ&#x20AC;&#x2122;s improvements are valued at $77 billion. As the host of the 2022 Football World Cup, Qatar is allocating $20 billion to roads and highways, in addition to a $35 billion rail network. Projects in the UAE, Qatar, and Saudi Arabia account for more than 75 percent of the total $109 billion pot.

In the US, new construction starts in August advanced 2 percent, month-overmonth, at a seasonally adjusted annual rate of $490.2 billion. Residential building and non-building construction (public works and electric utilities) rose. However, nonresidential building retreated, continuing an up-and-down pattern. Between January and August 2013, construction starts totaled an unadjusted $329.4 billion, up 1 percent year-over-year. Excluding electric utilities, total construction starts are up 10 percent.

The August data lifted the Dodge Index to 104 (2000=100), compared to a revised 102 for July. The Dodge Index has hovered between 98 and 106 in 2013, after averaging 103 throughout 2012.

OCTOBER / NOVEMBER 2013

38

sector coverage : Construction & BUILDING MATERIALS by BmWeek.com

Russia plans to spend EUR 36 billion on construction for the 2014 Sochi Winter Olympic Games City. The project could equal a financial disaster for Russia. One year before the arrival of the Olympic flame, 5000 machines and 60,000 workers have just started construction on the project. The budget has exploded from 14 to 36 billion euro.

The difficult economic climate in Morocco has reduced normal housing real estate transactions by 10 percent and high-end transactions by 20-30 percent. Social housing construction fell to 63.4 percent in the first half of 2013. With a housing deficit of 800,000 units on the local market, Moroccan developer Addoha offered conversion to shares of 2012 dividends. Addoha is expected to raise 567 million dirhams (50.5 million euros) by issuing 12.6 million new shares at 45 dirhams per share. Addoha sold only 25,627 units in 2012, down 9 percent from 2011.

CONCRETE Concrete production in the Ukraine increased in August 2013 by 6 percent year-over-year, to 1.4 million tons. July growth totaled 5.7 percent year-over-year.

Monthly totals fluctuated, with July production rising 13.7 percent from June, while August production fell 5.6 percent from July. Year-to-date, 2013 production

New RESIDENTIAL Residential CONSTRUCTION Construction IN in THE the U.S U.S NEW (THOUSANDS OF UNITS)

JUNE’13

JULY’13

918 954 TABLE AVAILABLE IN THE CEMWEEK 835 PRINT EDITION. 883 MAGAZINE

AUGUST’13

Authorized Units

918

Started Units

891

Units under construction

628

640

654

Units completed

759

767

769

WWW.CEMWEEK.COM/SUBSCRIBE

Source: U.S. Census Bureau, New Residential Construction Statistics

is up 2.2 percent year-over-year to 8.3 million tons.

the last year, combined with a 45 percent annual inflation increase.

In Russia, the group of companies “UNISTO Petrostal” began construction of a 1.3 billion , 6-hectare concrete plant in the Murino Leningrad region. The plant’s output will be sufficient for construction of 150,000 square meters of housing per year.

The bulk load capacity of the plant will focus on the production of goods UNISTO Petrostal’s own building projects, with the possibility of selling surplus.

Boosted construction across central England has prompted Cemex to resume readymix concrete production at its Woodbridge plant.

The Turkish C30 concrete price jumped by 53 percent, pushing concrete contractors in the public sector to the verge of bankruptcy. The increase appears largely due to a 10 percent increase in fuel oil prices in

In Israel, Cemex is supplying approximately 70,000 cubic meters of specialty concretes, including decorative white cement, for the new Blue luxury apartment project.

Cemex in Germany supplied more than 10,000 cubic meters of specialty ready-mix concretes for the new Steigenberger Hotel.

Lafarge has signed a partnership agreement with the US start-up Solidia Technologies to industrialize an innovative technology that could reduce the environmental footprint of pre-cast concrete. The technology could reduce CO2 emissions by up to 70 percent.

In the US, GreenFLEX reportedly has scrapped plans to open a building material plant in Stayton.

photo credit: Gavin Houtheusen/Department for International Development

39

OCTOBER / NOVEMBER 2013

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AGGREGATES In Thailand, Siam Cement Pcl plans to buy five companies in Southeast Asia as both the home-building market and infrastructure expenditures increase. The value of each deal will be between a few billion baht and 10 billion baht ($321 million). The company will also spend up to 250 billion baht over the next five years buying companies and expanding plants in countries including Thailand, Vietnam, and Indonesia.

Lafarge Canada has launched STABILIA, a cement-treated aggregate. STABILIA is a sustainable alternative to traditional base methods used for interlock paving installation and temporary road construction.

OTHER In the US, Carmeuse is planning to add two new mills to its facility for $10 million, expanding its operational capacity from 0.5 million tons to 0.8 million tons per year.

In Minsk, the Belarusian State Property Committee has announced a tender to choose the investor to privatize Belgips’ shares. The state owns 99.5% of the authorized fund. The investor will be required to provide money to modernize the functioning line to produce plaster wallboard at Belgips and to construct a factory near the village of Gatovo, Minsk District.

British Columbia’s Hoban Equipment Limited (HEL) has purchased a new portable asphalt plant. The plant is model EX8842 from Asphalt Drum Mixers Inc.

sector coverage : Construction & BUILDING MATERIALS by BmWeek.com

In Cuba, the pear industry Majibacoa municipality has stabilized its aggregates production capacity.

The EX8842 produces up to 250 tons of asphalt per hour.

Germany’s Wienerberger has invested 2.5 million euros in the first “mineral wool backfill” of Austria. The product enables passive houses to be built without additional insulation. Since the beginning of 2012, the Wienerberger Group (221 plants, 30 countries, 13,000 employees, sales of EUR 2.36 billion) has logged a net loss.

Russia’s Ishim is looking to open a new plant in the Tyumen region for the production of ceramic bricks, with a design capacity of 60 million pieces per year. The plant may produce 40 types of bricks and create up to 90 new jobs.

GREEN AND INNOVATIVE BUILDING Freyssinet Saudi Arabia has passed a key milestone at the Atturaif Unesco world heritage site, making its two-millionth adobe mud brick for use in rebuilding the site’s historic structures. At the site, 400-yearold buildings are being rebuilt using traditional materials and methods, including a 30-day fermentation process and a sevenday drying process. In total, 2.5 million of the bricks will be made.

PRODUCTION IN CONSTRUCTION INDEX Production in Construction Index (2010 = 100)

country Czech Republic Germany France Slovakia

JUNE’13

JULY’13

AUGUST’13

80.3

84.2

81.2

105.0 107.8 TABLE AVAILABLE IN THE CEMWEEK 98.0 97.7 MAGAZINE PRINT EDITION.

105.8 98.8

78.2

78.9

78.9

Hungary

92.8

91.5

95.2

Poland

94.9

99.2

97.6

Portugal

59.4

62.3

69.0

Sweden

106.0

104.9

109.9

WWW.CEMWEEK.COM/SUBSCRIBE

Source: Eurostat

www.cemweek.com

OCTOBER / NOVEMBER 2013

40

equipment

A TEC GRECO Supplies a Kiln Burner to Irish Cement Limited A TEC GRECO Combustion Systems Europe GmbH has been awarded by Irish Cement’s Platin Works to deliver a new kiln burner for their kiln line 3.

concept of A TEC GRECO´s Flexiflame burner offers a high flame momentum to be able to control the flame shape according the required kiln - and process parameters in consideration of a high solid alternative fuel substitution rate.

Irish Cement’s Platin Works is situated two miles south-west of Drogheda. Irish Cement Limited, which is active for over seventy five years in Ireland, has continually invested in enhancing quality and capacity of production to meet the demand of home and export markets.

Furthermore, the new Flexiflame kiln burner will allow the plant to work more flexible with the future fuel scenarios. The new equipment is also part of the policy to fulfill the very strict and low emission levels.

In the Platin Works, the FLS kiln with a capacity of 4300 TPD is using petcoke and alternative fuels. The modern

41

OCTOBER / NOVEMBER 2013

FLSmidth wins Qatar order FLSmidth has entered into an agreement with Qatari Investors Group. FLSmidth confirms that negotiations regarding supply of equipment to the cement plant are

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currently taking place. The company will make a public announcement if and when a contract will be finalised and will become binding.

FLSmidth is continuously negotiating many potential contracts on the global market. To be considered binding, such contracts require not only signing but also exchange of down payment and guarantees.

LIMAK Bati Group ordered KHD’s new kiln line LIMAK has, once again, shown confidence in KHD´s advanced technology, by placing an order for the engineering and equipment supply of its new 3,500 t/d clinker production line at the TRAKYA cement plant, located near the town of Pinarhisar, in the Thracian region of Turkey.

The new calciner with PYROCLON R will be KHD’s first Low-NOx calciner in Turkey. LIMAK Group will install their second PYROFLOOR system, after the Sanliurfa plant, to this new plant in Trakya.

Commissioning of the plant is scheduled for the autumn of 2014.

The concept suggested by KHD includes a new COMFLEX system, in combination with the existing ball mill system. This concept, along with the numerous positive references regarding KHD roller presses in the Turkish cement industry, ultimately won the customer over. Additionally, the horizontal version of KHD’s static VS separator will be used, allowing for a significant reduction in the installation height of the COMFLEX system.

new COMFLEX order from Batısöke for KHD The BATI ANADOLU GROUP, Batısöke Söke Çimento Sanayi T.A.Ş., awarded KHD Humboldt Wedag a contract for engineering and delivery of equipment to increase its cement grinding capacity at its plant in western Turkey.

With the installation of a COMFLEX grinding system, in its newest design, BATISÖKE, will have a system that is equipped with the most advanced grinding technology in the market.

The core components of KHD’s new line: 4-stage KHD Preheater with PYROCLON-R Low NOX calciner, equipped with PYROTOP compact mixing chamber, tertiary air duct with dust settling chamber, and PYROBOX calciner firing system for coal dust PYRORAPID two-tire rotary kiln, with a diameter of 4.4 m PYRO-JET kiln burner for coal and fuel oil PYROFLOOR clinker cooler equipped with a PYROCRUSHER System

The contract with LIMAK Bati Group, awards KHD the order for engineering, equipment supply, and supervision of erection and commissioning, including on-site training.The new kiln line will be erected near the existing 1,850 t/d line, which will also be upgraded by KHD in the beginning of 2014.

The contract to install a new COMFLEX grinding system will increase the capacity of cement grinding unit no. 5, from 59 tph to 195 tph @ 3300 Blaine and save more than 12 kWh/t energy, allowing Batisöke to maintain their position as one of the most significant companies in this region.

KHD´s scope includes the engineering and delivery of mechanical and electrical equipment, as well as advisory services during erection and commissioning for the new COMFLEX SC16-3250.

This will be KHD’s third COMFLEX grinding unit in Turkey, after Denizli and Kahramanmaras Cimento.

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The commissioning of the new COMFLEX system, in combination with the existing ball mill system, is planned for the end of 2014.

The core equipment to be designed and delivered by KHD: Clinker Grinding System / COMFLEX SC16-3250 Roller Press RPS 16-170/180 with ROLCOX system for control and monitoring V-Separator, type VS 524, as static classifier System fan HKF 200/265

OCTOBER / NOVEMBER 2013

42

FLASHBACK NEWS FLOW IN 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

CBI Brazil &LatAm 2014 Cement & Lime Conference

February 5-6, 2014

Hilton Morumbi Sao Paulo, Brazil

WPP â&#x20AC;&#x201C; World Paper & Pulp Industrial and Business Conference

April 2-3, 2014

Golden Tulip Paulista Plaza Sao Paulo, Brazil

AshTrade Europe 2014 - Fly Ash Industry Conference

May 2014

Dusseldorf, Germany

Cement Business & Industry (CBI) Africa 2014

June 12-13, 2014

Hyatt Regency Johannesburg, South Africa

CW Group Hosted Executive Summits

Middle East Cement Finance, Strategy & Trade Summit 2013

43

December 10-11, 2013

OCTOBER / NOVEMBER 2013

Emirates Towers Dubai, UAE

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CW Research & Analytics Webinars:

A year in review: petcoke prices and trading volumes

December 3, 2013 at 2:00 PM GMT

buzz TOP CEMWEEK STORIES 1

Amarchand Mangaldas and Vaish tapped for Jaypee deal

2

India: Court issues notice to Jaypee, UItraTech Cement

3

Holcim Romania to invest in improving efficiency

4

Lafarge looking to expand presence in Brazil

5

Saudi’s Cement City to install third production line

6

KHD bags contract from Turkey’s LIMAK

7

Eurocement to build plant in Russia’s Karachay-Cherkessia

8

Sources: Saudi rejects demand for additional fuel for cement plants

9

Cheap cement imports putting a dent on Tanzania’s purse

10

A Tec Group appoints new Managing Director

11

Loesche bags deal with Dangote Cement

12

Italcementi launches new branding strategy

13

Mykolaiv Cement installs environmental equipment

14

HeidelbergCement releases sustainability report

15

India’s Birla sets down strategy for growth in tough times

CEMWEEK.COM

activity

africa ambuja asia average

bags basis boost building bulk cemen-

cemex cent china coal commission contract contracts crore dangote decline declined development director division earnings eastern economic egypt ended energy exchange expand expansion export exports factories factory fiji financial fiscal grew grinding growth holcim tos cements

increased india indonesia infrastructure injured lafarge lines loss maintenance major makers management manager margin margins marketing materials minister naira nigeria oman operation pakistan performance plans plants port power previous products profits project public reached recorded region remained revenue rise romania russia saudi shipment shortage signed southern stake supplies

imports

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traders trillion venezuela

BMWEEK.COM

TOP BMWEEK STORIES 1

Bouygues Construction to build a residential complex in Singapore

2

Lebanon contractors threaten with strike over unpaid government bills

3

Panama Canal expansion reaches concrete milestone

4

Sochi Olympic Games puts pharaonic pressure on Russian budget

5

Growth in black economy

6

MDU Resources wins contract in North Dakota

7

Kyrgyzstan 8-months construction materials production increased

8

Aggregates traffic up through Port of Windsor, Canada

9

Greece announces reduced loss for ready-mix concrete segment

10

India’s mineral imports hiked in July 2013

11

South African’s workers strike ends

12

Russia: New brick factory to rise in Tyumen region

13

Plasterboard probe faced by Fletcher Building

14

Vulcan Materials resumes work at Calif. quarry

15

Cemex updates tram line in Zaragosa, Spain

workers

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aggre-

gates annual arabia asphalt australia brick bricks

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continue contract contractors costs data decline development director economic energy engineering environmental equipment facility factory firm fletcher france general government growth gypsum home housing india industrial infrastructure investment jobs lafarge land leading lime limestone long manufacturing meters mineral mining national noted operating operations output people plans plants previous price process product products project public quality quarry ready region research residential

cubic

sector service share spain technology times units value water work

results rise road roads russia sales sand saudi says

workers world 2014

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OCTOBER / NOVEMBER 2013

44

Conference & Exhibition

CEMENT BUSINESS & INDUSTRY June 12-13, 2014 â&#x20AC;˘ Hyatt Regency Johannesburg, South Africa

AFRICA

CBI Africa 2014 brings together over 100 stakeholders from African and international cement producers, equipment vendors, strategy and M&A, financial, sales and marketing and trading as well as delegates from the technical and operations, engineering, environmental, logistics, maintenance, production & operations side.

This conference will gather industry experts and market participants to discuss the major topics, including: Market perspective, forecast and competitive outlook Alternative fuels, new business models Environmental performance management Finance and capital markets Efficiency, innovation, new developments Technology, operations and best practices Fuel prices and outlook

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

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