GLOBAL CEMENT INDUSTRY. KNOWLEDGE.
DECEMBER 2015 / JANUARY 2016
Feature
THE RESOURCE OPTIMIZATION
Wonder Cement Plant Visit
DOING WONDERS
Q&A: Leaders
MUNKHNASAN NARMANDAKH, CEO, MONPOLYMET GROUP News
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Analysis
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Market Coverage
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Interviews
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People Moves
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CONTENTS FEATURES
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4 Q&A: LEADERS In conversation with Munkhnasan Narmandakh, Chief Executive Officer, Monpolymet Group 10 CEMENT PLANT VISIT Doing Wonders 14 THE RESOURCE OPTIMIZATION Exploring new product recipes and production techniques 22 GLOBAL CEMENT TRADE PRICE REPORT Global trade of cementitious products records declining trend
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DEPARTMENTS EDITOR'S LETTER 2 2016: What lies ahead NUMBERS IN BRIEF 3 USA’s growth to boosts cement demand 26 RESEARCH Cement Volumes Cement Energy Markets 30 PEOPLE People on the move 32 34 36 38
REGIONAL REPORTS Europe, Middle East & Africa South-East Asia Asia Pacific Americas
CONSTRUCTION & BUILDING MATERIALS BY BMWEEK.COM 40 Construction and building materials update EQUIPMENT 42 Equipment and notable projects
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CW GROUP MEETING AGENDA 44 CW Group’s upcoming events BUZZ 45 Top 20 CemWeek and BM Week stories
EDITOR’S NOTE Letter from the editor
The CemWeek Magazine is published by the CW Group LLC PO Box 5263 Greenwich, CT 06831, USA T: +1-702-866-9474 www.cwgrp.com www.cemweek.com
2016: WHAT LIES AHEAD?
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hese are difficult times for the cement industry as it confronts the pressures arising from past activities and prepares for the challenges of the future. With the passage of time, raw material reserves are closer to depletion and modern environmental standards are now requiring producers to meet ever more stringent emissions regulations. Contrast that against the rising demand for the second most-consumed substance in society, and you have the picture of a dynamic, yet highly challenged industry. The new issue of CemWeek magazine covers the industry trends, as well as some of the ideas and solutions that will lead to adaptation. Also in this new issue, the magazine takes an in-depth look as to how producers are deploying the latest technology, to meet demand and as well as the regulations while being profitable. One of the main stories in the current issue of CemWeek focuses on resource optimization. At a time when efficient, clean raw material blending and processing tops the chart in terms of challenges for cement producers, the feature also reveals how the industry is exploring new product recipes and production techniques. Some of the main avenues pursued by major producers are cement composition and raw material processing, with sustainable development being high on the agenda.
Rajasthan. The discussion with the company’s management revealed that company has left no stone unturned while installing the stateof-the-art technologies in the plant. Read the report to find out what measures Wonder Cement has taken to bring down Co2 emissions and to conserve limestone deposits.
STAFFBOX ROBERT MADEIRA CEMWEEK PUBLISHER HEAD OF CW GROUP RESEARCH
RAHUL KAMAT SENIOR EDITOR
Direct exchange with cement players is essential to discovering industry insights, and that is what CemWeek did while interviewing Munkhnasan Narmandakh, Chief Executive Officer of the Monpolymet Group and responsible for the “Moncement” project in Mongolia. Ms. Narmandakh explained how Moncement took the challenge to build a local clinker and a cement production unit to substitute the country’s dependence on Chinese imports. And as usual, CemWeek Magazine provides all the relevant news about the main indicators of the industry, including the latest facts and figures about cement volumes, energy prices, and relevant personalities in the business. Also look for regional developments, equipment and construction projects. Don’t miss out the numbers and the trends laid out in the special sections.
Rahul Kamat SENIOR EDITOR
In order to delve deeper into the topic of modern production, the CemWeek team visited Wonder Cement’s plant at Nimbahera,
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NUMBERS IN BRIEF
USA’S SUSTAINED ECONOMIC GROWTH BOOSTS CEMENT DEMAND Residential construction was the main factor supporting the steady growth in cement demand REGIONAL US CEMENT DEMAND 100
Northeast
Midwest
Rocky Mountains
Southeast
Southwest
Pacific West
50
0
2011
2012
2013
2014
2015E
Source: USGS, CW Research
The US market, which is showing signs of sustained economic growth is on the path to recovery to pre-crisis level volumes. This is mainly due to residential construction, an important factor supporting the steady growth in cement demand. In 2015, CW Research estimated that the total demand surpassed 90 million tons of cement, up by an encouraging 22 percent, as compared to 72 million in 2009. Meanwhile, regions including the Pacific West, Rocky Mountains, and the Midwest have all observed a growth in cement demand, whereas demand remained flat in the Southeast and Northeast USA. Out of the total 90 million tons of cement demand around 8.2 million tons were imported from different sources. In terms of share of imports, almost half of the imports came from Canada, which was followed by China, Greece and Korea, respectively. It is worth mentioning that following the merger of Lafarge and Holcim, LafargeHolcim now controls almost one third of the market sales, followed by Cemex.
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Q&A: LEADERS
The important procurement strategy is to source all raw materials locally To construct a greenfield cement plant in a water scarce area is a tough task, to begin with. However, an effective and well-planned procurement strategy will not only arrest the time consuming process, but is likely to deliver the best possible measure in terms of bringing down the production cost.
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Q&A: LEADERS In an interview with CemWeek, Munkhnasan Narmandakh, Chief Executive Officer, Monpolymet Group and responsible for the project “Moncement” explain us about the importance of local procurement and continuous upgradation of supplier’s chain.
Included in the PEC contract and directly manufactured by Huaxin Cement workshops are the vertical raw mill, coal mill, tube cement mill and kiln. As far as crushers are concerned, they were provided by Sinoma Liyang and Sinoma Changshu, China. Meanwhile, the technology in the plant also includes Pillard Burner, Pfister feeders, Sick analyzer, Ventomatic packing and applicator, Panalytical X-Ray analyzer.
Since your Greenfield plant has new and advanced technology included in it. Can you tell us about from where these technologies have been sourced? Also name the major suppliers/providers from where you have sourced these technologies? For our integrated plant, we have awarded an engineering, procurement and construction (EPC) contract to Huaxin Cement Co Ltd. Holcim is a shareholder of this company.
The basic recipe of success of a cement industry is to build a plant close to a sufficient supply of materials and with easy access to an opened market. We, as Moncement, satisfy both of these important criteria and looks forward supplying high quality cement and clinker to the country’s mega infrastructure projects and mineral sector development.
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What makes the new plant an attractive investment proposition? The cement market in Mongolia is currently dominated by imports from China, but a local production of cement relying 100 percent from fuels and materials originating from Mongolia is possible. Moncement took the challenge to build a local clinker and cement production unit to substitute these imports and considering the constant growth of the Mongolian economy, secure its entire production and sales locally.
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The company has procured vertical raw mill, coal mill, tube cement mill and kiln from Huaxin.
In addition, how these new technologies are likely to bring down production costs and by what percent? What are the salient features of these technologies? Our clinker production line is a dry process, based on a rotary kiln, a five stage precalciner, high efficiency cooler, and a high level au automatization controlled by the Siemens CEMAT control system. Moreover, as our plant is located in the water scarce region of the Gobi desert, we designed the water system to perform a recycling rate of 90 percent, and as world citizens concerned by the greenhouse
effect, we reduced the carbon footprint of the plant by installing a waste heat recovery system equipped with boilers on cooler and preheater sides. These both devices are also part of the EPC contract of Huaxin Cement.
recycling units. The plant is also connected to the main railroad of Mongolia, that allows a quick and effective reception of materials and shipping of clinker and cement straight to the consumers and grinding stations.
seamless logistics, the plant has a railroad system connected to the main railroad of Mongolia, with an automatic receiving system of fuels and materials and clinker and cement wagon loading.
For an effective and efficient operation, what are the procurement strategies adopted by the company? We adopted the important procurement strategy is to source all possible raw materials locally. In this regard, 98 percent of the material is supplied from our quarry, located 2.2 km away from the plant. This has resulted in bringing down transportation and logistics cost. Meanwhile, all fuels and other remaining materials are primarily sourced locally. Also for an efficient and
Meanwhile, the strategy to procure locally relied on the network of local suppliers which are eager to sell to a local company for a final product destined to the Mongolian market. These suppliers can provide a swift and cost effective service.
Could you please describe the new technologies included in the plant? Recent technologies used in this plant include vertical mills, dry process with five stage preheater ILC type pre-calciner, high efficiency cooler, only bag filters, Waste Heat recovery of both Suspension Preheater and Quenching Cooler, water treatment and
What are the potential and challenges in procurement when it is related to a new facility or plant?
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The company has awarded an EPC contract to Huaxin Cement Co Ltd.
The plant uses 90 percent of the recycled water as the plant is located in water scarce region. DECEMBER 2015 / JANUARY 2016
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Q&A: LEADERS
Crushers were provided by Sinoma Liyang and Sinoma Changshu, China.
The challenges are many, but I would like to point out a few specific. Many equipment and consumables must be imported and we had to set a procurement team who progressively gained the needed expertise. Meanwhile, for an emergency situation, we can also rely on our EPC contractor. To make procurement more efficient, most of the cement majors have their set supplier/ vendor’s list, which they upgrade in a timely manner. How often Moncement does the process of supplier selection and evaluation of finding an appropriate supplier who are able to provide with right quality products? During the project phase, we utilized the services from China-based company VVR international. Their intensive knowledge of the industry and the organization was a major asset to guarantee the quality of the suppliers’ and equipment sourced by the EPC contractor. In the operational phase, we use the
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suppliers already identified during the project phase, and may use the services of companies such as VVR to continue opening our supplier’s list. We also like to share with you that the company is developing an enterprise resource planning (ERP) system, which will integrate a procurement module for the good governance and process efficiency. How you issues of selecting local vendor, considering round-the-clock manufacturing process? You must know that the supplier selection is a multiple criteria decision-making problem, affected by several conflicting factors such as price, quality and delivery. Hence, we continuously upgrade our selection criteria, when it comes to selecting our suppliers. This is part of a cycle that is constantly managed by our procurement department. However, considering the size of our needs, we also rely for the imported and recurrent supplies or for any emergency, on the possibility to use the services of our
EPC contractor who is also a cement maker with significant market shares in China and other Asian countries. Also, these days, most of the cement manufacturers are opting for alternative fuel. In this case, how does your company is aligning strategies specifically for procuring alternate fuels? Our plant is in the middle of the Gobi desert and alternative fuels were not identified as of now. The design of the kiln makes it possible to have an extension added in the future. What are your expectations for the coming year? Our goal is to enter the cement market with Moncement brand and build a reputation of stability in quality and supply. In the coming year, we will be reducing our import dependence to a minimum and substituting the same with our own production and local supplies. Also, we plan to sell all our production to the domestic market, but we will endeavor to export our best quality product to projects close to the border of Mongolia.
What are the plant’s main value propositions? The plant represents a shift in the industrial investments generally made in Mongolia, with all the production slated to be sold in the local market in Mongolia rather conversely to exporting mined products with none or with a little processing. The integration of the plant on the local environment was a constant preoccupation from the first phases of the development of the project. For example, Moncement plant respects the emission criteria imposed by the EBRD and integrates a waste heat recovery system, a water recycling unit, both aimed at reducing the environmental impact. What are the main challenges that the new plant will be facing in the near future? Running the plant in a climate with temperatures from -30C to +30C is the first challenge the plant will meet. To anticipate for the inexperience of our personnel, we will use the services of an Operation and Maintenance company with conditions of transfer of knowledge to have a fully locally operated plant within a three year period.
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FACT FILE `` The company has procured vertical raw mill, coal mill, tube cement mill and kiln from Huaxin. `` The company has awardedan EPC contract to Huaxin Cement Co Ltd. `` Crushers were provided by Sinoma Liyang and Sinoma Changshu, China `` The plant uses 90 percent of the recycled water as the plant is located in water scarce region. `` Recent technologies used inhis plant include vertical mills, dry process with five stagepreheater ILC type precalciner, high efficiency cooler, only bag filters, waste heat recovery, full automatization.
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FEATURE
Cement Plant Visit
Doing Wonders
Recently, the CemWeek team did a quick visit to India’s Wonder Cement’s plant at Nimbahera, District Chittorgarh, Rajasthan. Based on the discussion with company’s management, Wonder Cement has left no stone unturned while installing the state-of-the-art technologies in the plant.
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FEATURE
C
louds of dust, loud sounds from the plant, quarry excavation, heavy duty trucks creating pollution etc., seem to be the perception of an operating cement unit. However, it (perception) completely changed when CemWeek did a quick visit to Wonder Cement’s plant at Nimbahera in Rajasthan, India.
Meanwhile, the company produces blended cement, apart from Portland cement, both 43 and 53 grade, where fly-ash is used as one of the ingredients. The level of fly ash absorption is 26 percent at present. While raw material acquisition and refining is one of the most important stages of cement production for which Pfeiffer has supplied the latest VRM
The company has taken all the necessary measures to bring down CO2 emissions
To begin with, as per the company’s management, Wonder Cement has taken all the necessary measures to bring down Co2 emissions, and in this connection, they have tried different cementitious materials to conserve limestone deposits, which is connected to the cement plant. The limestone mine has a proven reserve of 330 million tons, with a lifecycle of 30 years. We extract around 18,000 – 22,000 tons of limestone, per day.
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technology, the equipment for Pyroprocessing and clinker grinding has been supplied by ThyssenKrupp. GREEN INITIATIVES Speaking about green initiatives undertaken by Wonder Cement, the entire design of the plant is based on the latest environmental norms. Technologies, including a reverse air bag house and ESP, has also inducted in the plant. Basically, ESP has been used for gas cleaning of every aspect of cement manufacturing.
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A number of nuisance bag filters installed having emission of much below the permissible unit.
consumption is 690 kcal per kg of clinker. However, on electrical energy, we still need to improve the performance". EFFORTS ON CLINKERIZATION At present, on clinkerization, the company running its plant 58-59 kWh/tons. The company’s short-term focus is to reach 55 kWh/tons of clinkerization in the next 2-3 months and in the long term to 50 kWh/ tons. For cement grinding, presently the company is operating at 35 kWh/tons and want to achieve 30 kWh/tons. "Our immediate attention is the optimization of electrical energy," Jain said.
To this, Mr JC Toshniwal, Executive Director, said, "Our plant at Nimbahera, has undertaken all the necessary environmental norms suggested by the Ministry of Environment". He added, "Also, a number of nuisance bag filters installed having emission of much below the permissible unit. That enables the plant to be clean and dust free." Importantly, a fair amount of measures of the company’s concern on environmental
gets dumped, but also saving the environment too, explains Mr S M Joshi, President – Works. "But, these are our long-term plan," avers Toshniwal. ENERGY CONSERVATION This particular cement unit has a 40 MW captive power plant. In addition, the company is constructing 18 MW waste heat recovery system (WHS) to meet the power requirement of its recently complet-
The company is also in the process of using industrial waste as a source of fuel for cement production issues was addressed by planting 55,000 tree saplings in 50 hectares, in the last two years, against a target of 75 hectares in 20 years. That said, the company is also in the process of using industrial waste as a source of fuel for cement production process. We want to use the less hazardous industrial waste. So, by using these industrial wastes, we do not only disposing it, which anyway
FACT FILE `` Extract around 18,000 – 22,000 tons of limestone, per day. `` Equipped with VRM technology, the equipment for Pyroprocessing and clinker grinding has been supplied by ThyssenKrupp. `` The company is constructing 18 MW waste heat recovery system (WHS)
ed second unit. This (WHS) plant will be installed by Thermax and ThyseenKrupp.
`` The company’s short-term focus is to reach 55 kWh/ tons of clinkerization.
In addition, the company is also planning to add another 40 MW plant purely based on the petcoke at the cost of INR 180 crore.
`` For cement grinding, presently the company is operating at 35 kWh/tons.
On thermal energy, the company claims that they are better off and rate themselves "good" as, says Mr Pradeep Kumar Jain, DGM (QC & Env), "Our thermal energy
`` The company planted 55,000 tree saplings in 50 hectares, in the last two years.
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FEATURE
THE RESOURCE
OPTIMIZATIO
Efficient, clean raw material blending and processing tops the chart in terms of challenges for the cement makers DECEMBER 2015 2015//JANUARY JANUARY2016 2016 14 DECEMBER
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ON
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FEATURE
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he cement industry is exploring new product recipes and production techniques in order to cope with increasing market pressures and the ever tighter environmental standards.
materials calcining (60 percent) and clinker phase pyroprocessing (40 percent), streamlined Co2 levels will be realized through the development of new cements, and concretes of lower clinker content, thereby reducing mix designs volume of material with highest embodied energy.
new regulations, green taxes and escalating fuel prices. And, in this regard, locally available minerals, recycled materials and (industry, agriculture and domestic) waste may be suitable for blending with ordinary Portland cement as a substitute, or in some cases replaced, binders.
Some of the main avenues, being pursued by major producers, are cement composi- The Cement Plan also references emistion and raw material processing, with sustainable Since 2001, the cement sector has demonstrated development being high on the agenda. ability to make progress on climate change. Scarcity of raw materials is one of the challenges that the cement industry is facing, along with depleting fossil fuel reserves, perpetually increasing demand for cements and con-
cretes, growing environmental concerns and an ailing world economy. One of the latest and high profile moves towards making changes in the industry occurred during the UN Paris Climate Conference. A Cement Action Plan to clip worldwide industry carbon emissions 20–25 percent by 2030 was also outlined in the event, with the backing of 16 major producers. Beyond process improvements in Portland cement production, whose high carbon emissions are generated through raw
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sions avoidance by impressing the life cycle attributes of cement and concrete products in local markets building and infrastructure
value chains. "Since 2001, the cement sector has demonstrated its ability to make progress on mitigating its impact on climate change," said Eric Olsen, Chief Executive Officer, LafargeHolcim. The move comes to confirm that many greener alternatives rely on technological advances that include energy-efficient, low carbon production methods, novel cement formulations, geopolymers, carbon negative cements and novel concrete products. In this case, emission reduction is required to counter the impacts on product cost of
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its
THE ALTERNATE WAY It is worth mentioning, international researchers across the globe, are developing alternate methods for producing cement.
A Polytechnic University of Valencia and San Paolo State University in Brazil have
International researchers, across the globe, are developing alternate methods for producing cement.
developed ecological cement with the use of sugar cane residue as a substitute for Portland cement. To add more, researchers from the University of Msila have designed ecological cement. In the ecological cement, mud from the dams is a key aggregate.
FACT FILE `` Polytechnic University of Valencia and San Paolo develops ecological cement with the use of sugar cane residue
France-based Vicat Vicat is planning to process around 530 tons of tires at its unit in Isère.
Whats more? A Cameroon-based researcher has discovered the manufacturing of cement process based on laterite. In fact, his discovery is likely to benefit the African continent in more ways than one—the raw material will be available and that too, cheap, unlike the clinker.
mixed with automobile shredder residue and ship it to Vicat Montalieu plant, Isère, France. Not only, Vicat, but Germanys ZoZ is promoting the use of nanostructured cement. The nanostructured cement will make construction faster and be cost effective. The
It is evident that the average amount of energy required to produce one ton of cement is equivalent to the combustion of approximately 120 kg of coal.
Whereas, the researchers are being proactive, the cement companies globally are too captivating some initiatives. France-based Vicat Vicat is planning to process around 530 tons of tires at its unit in Isère. The Isère SMEs, Arc-en-Ciel Recycling will handle the collection of tyres, while the collected materials will be entrusted to Valerco, a subsidiary of Vicat, to be
company is using the cement to construct a small bridge in its premises in Germany. PRESSURE FROM THE MARKET AND THE ENVIRONMENT Environmental responsibilities are high on the cement industrys agenda because the cement manufacturing process requires extremely high temperatures, which consume about ten times more energy than the average amount required by other manufacturing processes.
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`` France-based Vicat Cement is planning to process around 530 tons of tires at its unit in Isère `` Germanys ZoZ is promoting the use of nanostructured cement `` Russias Topkinsky Cement plans to invest around RUB 50 million in modernization of its cement plant `` Uzbekistans Kyzylkum Cement to use hydroripper technology, instead of explosive mining techniques
`` Vietnams Song Giah Cement to increase consumption of renewable resources and minimize use of mining resources `` Indian cement makers to use blended cement, which will ensure sustainable use of limestone deposits
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FEATURE It is evident that the average amount of energy required to produce one ton of cement is equivalent to the combustion of approximately 120 kg of coal. Employing waste, as alternative fuel has greatly helped the cement industry to manage its environmental impact, while alternative raw materials made it possible for producers to adapt to changing market conditions.
The amount of cement to be used in construction will be more than double the total of all other building materials, including wood, steel, plastic and aluminum.
and Concrete Plant, in San Pedro de Macoris.
Meanwhile in Chile, Cemento Polpaico has received a nod for a photovoltaic park As vast amounts of energy and non-renew- (PV). It is expected that the solar facility able resources are used in raw material will be set up in Cemento Polpaico plant production, customers and some investors in Tiltil, Chile. The company will conare demanding evidence of environmen- struct 23.5 MW PV park. The solar park will require iniToday, many plants tial investment of The amount of cement to be used in construction will be derive up to 70 perUSD 42 million cent of their energy (EUR 38.9 milmore than double the total of all other building materials, from alternative fuels. lion). The energy including wood, steel, plastic and aluminum. (See box Global comgenerated will be mitment towards raw connected to the material and energy existing grid with usages). the Punta Peuco tal performance – and signs of significant substation. Meanwhile, as the demand is on the rise, progress. cement is considered to be the second RESOURCE MOBILIZATION most-consumed substance in our society. Recently, Cemex Dominicana awarded for Fly ash and blast furnace slag are some its environmental efforts, and important- of the best known examples of cement As highlighted by the CW Groups Glob- ly, the company has received the award for al Cement Volume Forecast Reports, the third straight year. world cement consumption is expected to grow by more than 3.5 percent in 2016 The award is the result of Cemex's 1.5 MW and remain near 4 percent growth during Photovoltaic Solar Plant, and the Environ2017-2018. mental Management System in Cement
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Vast amounts of energy and non-renewable resources are used in raw material production
GLOBAL COMMITMENT TOWARDS RAW MATERIAL AND ENERGY USAGES
replacement materials that are in use today. The first is a by-product of coal combustion, the second of iron smelting and the third of electric arc furnace production of elemental silicon or ferro silicon alloys. Fly ash is produced from coal and some other solid fuel combustion systems. Where bottom fuel ash is left in the region of combustion, fine grained fly ash is carried by combustion flue gases and commonly collected by electrostatic precipitation. The chemical composition of fly ash tends to be a heterogeneous mixture of silicon oxides, aluminum oxides and iron oxides. Such ash types are common in Europe, but in many parts of the world lime-rich ashes are also available. Because of its pozzolanic properties, fly ash is often used to replace typically 30 percent of the mass of Portland cement in a concrete mix, for example to lower permeability and reduce initial heat evolution.
Considering the limited resources of raw materials, most of the global cement majors are taking some drastic steps for conserving the natural resources. A case in point to start with is Russias Topkinsky Cement plans to invest around RUB 50 million in modernization of its cement plant. During the modernization, the company will optimize its energy usage, quality control techniques and upgrade cement bag packaging. Meanwhile, Uzbekistans Kyzylkum Cement to cut cost of raw materials extraction. The cement company will use hydroripper technology, instead of explosive mining techniques. The cement company is considering offers from several parties to design the new equipment. However, the cement company has received an offer from a Korean company for hydroripper. It is to be believed that the new method is expected to reduce the cost of the extraction process, and improve the quality of raw material.
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In addition, Canadas St. Marys Cement is likely to modernize its Charlevoix plant. The scope of the modernization project includes, modernizing existing infrastructure and upgrading the capability of the plant to improve its operational efficiency. Also, enhance its environmental performance in response to changing economic conditions and a more competitive operating environment. To this effort, the company is investing in excess of USD 130 million. It is worth mentioning, that the Vietnams Song Giah Cement, in the future, will focus on production of green cement. The cement company plans to increase consumption of renewable resources andminimize use of mining resources. The cement company plans to make a significant technological and scientific investment in modern production and continuously improve its product quality. The cement company is planning to implement several energy saving measures to minimize its emissions and waste resource management.
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FEATURE Fly ash will contribute to the strength of concrete after seven days of curing, owing to a chemical reaction between the fly ash and calcium hydroxides produced by hydration of the Portland cement. Another replacement material, blast furnace slag, is a by-product of the iron and steel industry. It consists of calcium, magnesium aluminosilicates and also has pozzolanic properties depending on quenching history. Also, depending on the cooling method used, there are three main types of blast furnace slag: air cooled, granulated and expanded slag. Granulated slag is formed by quickly quenching molten slag with water. The result is glassy sand-like material that, when ground to a fine powder and
depleting limestone deposits in the country. According to a recent forecast, the availability of limestone deposits in the country would be until 2040. Several countries including USA, China and Japan, as well as European countries have implemented measures for sustainable use of natural resources. "The onus was on (about) the community of civil engineers to use blended cement in the interests of future generations," said Sandeep Singh Sandhu, Associate VicePresident, JSW Cements, India.
That said, the Indian cement makers, in this case, will be using blended cement, which will ensure sustainable use of limestone deposits. Using the blended cement will ensure sustainable use of gradually
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They also require less heat compared to Portland cements, further reducing emissions. As with Portland cement, gypsum is added in a controlled process in optimized amounts and ground with clinker to form different types of CSA A cements.
NOVEL, RESOURCE EFFICIENT CEMENTS Other types of cement include alternative recipes that are meant to improve the efficiency of the production process. Among
contacted with an alkali such as lime or Portland cement, develops strong hydraulic cementation properties. Expanded slag and air cooled slag are primarily used as aggregate in concrete and bitumen applications, but when ground into a fine powder, can also be used as supplementary cementitious materials similar. Reductions in Co2 are significant due to the process being less energy intensive and involving less heat to perform the calcinations process.
an industrial scale in China since the late 1970s. Belite-calcium sulfoaluminate ferrite CSA clinkers can produce cements with similar performance to Portland cements while in principle being manufactured in conventional Portland cement plants to deliver significantly less CO2 emissions during calcination.
USA, China and Japan as well as European countries have implemented measures for sustainable use of natural resources.
them is calcium sulfoaluminate cement, the calcium aluminate, the super sulfated or the magnesium-oxide based cement.
Their properties change from rapid hardening cement to a shrinkage compensated cement when increasing amounts of gypsum are added there is evidence that CSA
Cemento Polpaico is expected to a 23.5 MW solar PV park in Cemento Polpaico plant in Tiltil, Chile Calcium Sulfoaluminate (CSA) cements is manufactured and have been used on
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cements have the ability to protect steel reinforcement against corrosion.
In comparison to Portland cement, they of this type of cement is high, due to the wallboard imported from China. can achieve energy savings as high as 25 limited availability of materials. percent and provide environmental beneThis type of cement is already used for fits by reducing Co2 emissions by around In turn, water-activated-magnesium-oxide housing in developing countries. Argonne 20 percent. The use of CSA A cement as based cement was commonly used well National Laboratories have tested similar a construction material in countries other before OPC ever came into existence. It MgO-based Ceramicrete cements with a than China is entirely feasiview of develble, even initially as a niche oping them into The onus was on (about) the community of civil market product. more commercial products. engineers to use blended cement in the interests of Lafarge has patented a class New research future generations of cement clinkers based on is underway to Belite, CSA A and Calcium develop magAluminoferrite phases. The nesium-b as e d development and testing of CSA cements requires around 30 percent less energy to cement that absorbs more Co2 than it prothus show promise and could in time lead produce, and has some significant advan- duces during the manufacturing process. to the establishment of new codes and tages over OPC. standards. A working formulation of carbon-negative For example, when hardened, the cement cement derived from magnesium silicates Calcium aluminates cements are made in a is permeable, making it useful in terms of was devised by Nikolaos Vlasopoulos, chief rotary kiln by using bauxite (an aluminum heat regulation and control in the design of scientist at London-based Novacem Ltd., an ore) instead of the typical calcium silicates dwellings, particularly for warm climates. Imperial College start-up, working in colfound in clays. The limestone and bauxite It can breathe, and so it has been referred laboration with Lafarge and Laing ORourke. mix are fused into a cement clinker in the to as living cement. According to the inventors, magnesium silisame way as Portland cement. cates are globally available, but not uniformly Magnesium based cements also have great- distributed. Super-sulfated cements are being made by er strength. Although it is ancient cement grinding a mixture of 80–85 percent selec similar to what was at one time thought to ted GBFS with 10–15 percent calcium sul- have been used by the Chinese to build the fate and about five percent of Portland Great Wall, major cement producers are cement clinker. It is generally used where today using this cement in modern applihigh sulfate, acid and organic oil attacks cations, for example US Gypsums Granon a structure are expected. Again the cost crete, a spray-on structural cement and in
Two universities in Brazil have developed ecological cement with the use of sugar cane residue.
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DECEMBER 2015 / JANUARY 2016
21
FEATURE
Global Cement Trade Price
Global Trade of Cementitious Products Records Declining Trend
Global gray cement prices fell 11+ percent year-on-year, according to preliminary figures presented in the CW Research’s 3/4Q2015 update to its benchmark price assessment for monthly worldwide trade of gray cement, white cement, clinker, and slag, as well as ex-works and effective market prices: Global Cement Trade Price Report (GCTPR). DECEMBER 2015 2015//JANUARY JANUARY2016 2016 22 DECEMBER
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DECEMBER2015 2015 //JANUARY JANUARY 2016 DECEMBER 2016 23 23
FEATURE
T
he global trade of cementi- for export pricing remained mixed, highly tious products has gener- dependent on foreign exchange rate develally seen a declining trend opments. in both volumes and prices in the quarter to September The major gray cement exporters in 2Q2015 2015. CW Research’s 3/4Q2015 GCT- were China and Thailand, which accounted PR shows, trade prices mostly influenced by The quantity of traded gray cement fell by developments in foreign exchange rates as many in the second quarter of the year currencies have depreciated sharply against the U.S. dollar. for 15+ percent and 14+ percent respectiveMoreover, due to the slow progress of ly of total global gray cement exports. the economy at a global scale, worldwide cement demand is projected to decline by The December 2015 FOB prices for clinkabout 2.7 percent in 2015. er sourced from the Asia-Pacific-Japan
Notably, the quantity of traded gray cement fell by 0.5 percent in the second quarter of the year (the latest quarter with complete data sets) as compared to 2Q2014. Exports of gray cement fell marginally in volume terms, while the global outlook
24
DECEMBER 2015 / JANUARY 2016
regions are expected to see a 1.7 percent increase from August, influenced by stronger pricing in China, India and Japan. Meanwhile, the December average CIF price for the region is expected to reach
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USD 48.6 per ton, down 0.2 percent from 3Q2015. The December clinker FOB prices in the Mediterranean Basin are expected to represent an increase of 1.8 percent over September’s price point. Moreover, the report projects a contrac0.5 percent tion (trend) for gray cement prices in Asia-Pacific-Japan, North America, and Caribbean, and a growing trend in all the other regions in the fourth quarter of the year. Notably, in the Asia-Pacific-Japan regions, export prices are expected to show slight
variations (-0.3 percent) QoQ, while export prices for gray cement in Eastern and Western Europe are projected to improve by two percent in 4Q2015.
ABOUT THE REPORT
Exports of gray cement fell marginally in volume terms
The Global Cement Trade Price Report (GCTPR) is CW Research’s benchmark price assessment for monthly gray cement, white cement, clinker and granulated blast furnace slag prices and volumes. The 180+ page report, published on a quarterly basis, serves as the industry go to source for monthly price data for 70+ individual markets worldwide, including multiple cornerstone data series: import, export, ex-works and market prices. Additionally, the GCTPR includes extensive discussion of key players’ price strategies as well as trade price forecast and select trade volumes for each country. The report also provides regional price indices as well as a quick review of trading dynamics and drivers in the different regions.
ABOUT CW RESEARCH For North America and the Caribbean region, December’s figure is expected to reflect a 1+ percent increase on a year-onyear basis, in spite of a MoM decrease in 4Q2015. In the Asia-Pacific-Japan region, slag export prices are projected to increase 1+ percent in December, in comparison to September 2015. For white cement,
"Anemic and uneven economic growth, reduced off take from China and the strengthening dollar are all impacting cement demand and trade and putting pressure on prices," said Prashant Singh, Associate Director, CW Group in the Mumbai, India office. He added: "As a highlight, we saw countries like Turkey and Mexico experience a
In the Asia-Pacific-Japan region, slag export prices are projected to increase
China’s notable 26+ percent rise MoM expected in 4Q2015 confirms the recovering trend for FOB prices in Asia-PacificJapan region.
fall in their FOB prices for white cement. For slag export December prices in Western Europe, the 12 percent estimated growth will be determined by the two main exporters in the region, Germany and Austria."
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CW Research is a leader in syndicated and data-driven market research solutions. The company offers independent perspectives on multiple industrial market segments (e.g., Cement, metals & minerals, and specialty chemicals) and deep functional expertise in market intelligence, sourcing intelligence, commodity pricing intelligence. CW Research also provides custom industry and competitive research programs for operating companies, financial analysts, consultants, governments, suppliers and many others as well as tailored studies together with CW Advisory. Our team operates in the USA, India, Brazil, Portugal and Romania. For more information: research.cwgrp. com
DECEMBER 2015 / JANUARY 2016
25
CEMENT MARKETS
CW Research
CEMENT VOLUMES
In Japan, cement demand continued to remain weak as consumption fell for fifth straight month due to slowdown in public work projects. Cement demand fell by 7.9 percent YoY in November 2015. Cement manufacturers are adapting to declining demand by reducing production volumes. This was reflected in November with production volume declining by 7.6 percent on a YoY basis. Germany’s cement consumption is showing initial signs of revival on the back of the housing segment recovery, but industrial demand continues to remain muted. Cement demand grew by 4.7 percent YoY in November 2015, while the January to November 2015 period saw demand declining by -2.4 percent as against -3.1percent in the previous month. Spain, which saw a marginal dip in its cement demand in October, bounced back with a healthy growth of 11.8 percent YoY in November 2015. However, the year to date Cement production November 2015 YoY (%)
(YTD) growth in the January to November period moderated to 4.2 percent against a high of 5.8 percent reported for January to April 2015. It was mainly due to the slowdown in construction activity in last few months. Cement production continued to decline in Russia, with November witnessing the steepest fall in 2015, as production volume declined by 15.6 percent YoY. Overall production volume during the January to November period of 2015 fell by 7 percent in comparison to the same period last year. Cement production continued to decline due to weak demand and reduced investment activity. Saudi Arabian cement demand growth continued to remain strong growing by 6.2 percent YoY in November 2015.The overall January to November period saw demand growth at 9.2 percent as compared to the same period of 2014. The country’s cement production also increased by 7.2 percent YoY in November,, while in the January to November period, production increased by 9.5 percent on a YoY basis. This is despite a severe fall in crude oil prices. Ecuador’s cement demand continued to fall throughout 2015 on the back of a decline in infrastructure spending and uncertainties surrounding real estate projects. Cement demand declined by 16.4 percent on a YoY basis in November. However, during January to November 2015, cement demand declined by 8.9 percent as against same period last year. Cement demand November 2015 YoY (%)
80%
30%
60%
20%
40%
Source: CW Research
Source: CW Research
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DECEMBER 2015 / JANUARY 2016
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Japan
Ecuador
Thailand
Argentina
Poland
Colombia
Germany
Indonesia
Saudi Arabia
Spain
France
-20%
Morocco
Belarus
Japan
Russia
Thailand
Poland
Argentina
Colombia
Ukraine
Saudi Arabia
-40%
Vietnam
0% -10% Cyprus
0% -20%
Cyprus
10%
20%
Pakistan
In Japan, cement demand continued to remain weak as consumption fell for fifth straight month due to slowdown in public work projects. Cement demand fell by 7.9 percent YoY in November 2015.
Local cement demand in Pakistan has been growing at a swift pace on back of an increase in private sector construction activities. Growth continued to remain strong for the second consecutive month, with November 2015 registering an increase of 20 percent YoY. This follows the 23.9 percent YoY growth reported in October 2015. Consequently, January to November 2015 demand has increased by10.6 percent as compared to same period last year.
CW Research
CEMENT PRODUCTION (million tons)
CEMENT CONSUMPTION (million tons)
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
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CEMENT PRODUCTION MOM (%)
CEMENT CONSUMPTION MOM (%)
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
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WWW.CEMWEEK.COM/SUBSCRIBE
CEMENT EXPORTS (million tons)
CEMENT IMPORTS (million tons)
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
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CEMENT EXPORTS MOM (%)
CEMENT IMPORTS MOM (%)
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
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Source: CW Group analysis estimates
MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year
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27
CEMENT MARKETS
Volume variation analysis for selected countries that are major consumers, producer, importers and exporters of cement. This is a selection of notable markets. Additional detail is available from CW Research as well as on-line at http://www.cemweek.com to the market data section.
CEMENT ENERGY MARKETS
CW Research
ENERGY PRICES UPDATE COAL: The average coal price for December 2015 closed at $53.22 per ton, falling 25 percent YoY as
compared to December 2014’s price of $70.74 per ton. It decreased slightly by 4 percent as compared to November 2015’s price of $55.36 per ton.
STEAM COAL FOB AVERAGE PRICES (US$/TON) US exported
Colombia exported
Australia Newcastle
Indonesian HBA
South Africa Richards Bay
130 120 110 100 90 80
US petcoke exports decreased 8 percent to 2.67 million tons in October 2015 as compared to the previous month, and down 0.6 percent as compared to October 2014.
70 60 50 Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec ’11 ’12 ’12 ’12 ’12 ’12 ’12 ’13 ’13 ’13 ’13 ’13 ’13 ’14 ’14 ’14 ’14 ’14 ’14 ’15 ’15 ’15 ’15 ’15 ’15 Sources: EIA, Colombia Ministry of Mines and Energy, IMF, Indonesia Ministry of Energy and Mineral Resouces
COAL TRADING VOLUMES: Global trading volumes increased to 81.97 million tons in October 2015, increasing 1.6 percent in comparison with 80.71 million tons recorded in September 2015. An increase in coal trading volumes was observed in Indonesia, Australia, South Africa and the US, whereas Colombia and Russia showed some decline in coal trading volumes.
PETCOKE: US petcoke exports decreased 8 percent to 2.67 million tons in October 2015 as compared to the previous month, and down 0.6 percent as compared to October 2014. The US export price for petcoke for October 2015 closed at $50.17 per ton, decreasing 15 percent as compared to September’s price of $59.11 per ton and down 26 percent as compared to October 2014’s price of $67.92 per ton.
US PETCOKE EXPORT PRICE (us$/ton) monthly price 90 80
Rolling 12-month average
70 60 50 40 30 20
O ‘15
S ‘15
A ‘15
J ‘15
J ‘15
A ‘15
M ‘15
F ‘15
M ‘15
J ‘15
D ‘14
N ‘14
S ‘14
O ‘14
A‘14
J ‘14
J ‘14
A ‘14
M ‘14
M ‘14
J ‘14
F ‘14
D ‘13
N ‘13
0
O ‘13
10
Source: customs data
NATURAL GAS: The US Henry Hub spot price traded at $1.93 per MMBTU in December 2015, decreasing 8 percent as compared to November 2015’s price of $2.09
per MMBTU and down 45 percent as compared to December 2014’s price of $3.48 per MMBTU. Price in Europe decreased 2 percent MoM, reaching $6.10 per MMBTU in December 2015.
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DECEMBER 2015 / JANUARY 2016
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Volume variation analysis for selected countries that are major importers and exporters of coal and petcoke. This is a selection of notable markets. Additional detail is available from CW Research as well as on-line at http://www.coalweek.com/ to the market data section. COAL - EXPORTS (million tons) - Oct 2015 Country
LM
MoM (%)
PETCOKE - EXPORTS (million tons) - Oct 2015 YoY (%)
YTD
YTD %
Country
LM
MoM (%)
YoY (%)
YTD
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
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WWW.CEMWEEK.COM/SUBSCRIBE
YTD %
COAL EXPORTS MoM (%) US PETCOKE EXPORTS PRICES MoM (%)
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
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COAL - IMPORTS (million tons) - Oct 2015 Country
LM
MoM (%)
YoY (%)
YTD
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
YTD %
PETCOKE - GLOBAL EXPORT PRICES (USD/ton) - Oct 2015 Country
COAL - GLOBAL EXPORT PRICES (USD/ton) - Dec 2015 LM
MoM (%)
YoY (%)
YTD
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION. WWW.CEMWEEK.COM/SUBSCRIBE
COAL EXPORT PRICES MoM (%)
MoM (%)
YoY (%)
YTD
YTD %
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
WWW.CEMWEEK.COM/SUBSCRIBE Country
LM
WWW.CEMWEEK.COM/SUBSCRIBE
YTD %
NATURAL GAS PRICES (US$/mmBtu) - Dec 2015 Country
MoM (%) YoY (%) YTD TABLELM AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
YTD %
NATURAL GAS PRICESWWW.CEMWEEK.COM/SUBSCRIBE MoM (%)
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
TABLE AVAILABLE IN THE CEMWEEK MAGAZINE PRINT EDITION.
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WWW.CEMWEEK.COM/SUBSCRIBE
Source: CW Group analysis estimates LM: latest month Jan 2016 except where specified; MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year
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DECEMBER 2015 / JANUARY 2016
29
CEMENT ENERGY MARKETS
CW Research
DEPARTMENTS
PEOPLE CEO OF HOLCIM ROMANIA TO TAKE OVER AS CEO OF AGGREGATES INDUSTRIES Francois Petry, the general manager of Holcim Romania, will take over as CEO of Aggregates Industries. Aggregates Industries is the British subsidiary of the newly formed LafargeHolcim group. Frenchman Francois Petry will assume the position on December 1, 2015. His replacement at the helm of Holcim Romania will be announced soon. Petry has been CEO of Holcim Romania since 2014, after managing Holcim’s aggregates division in France since 2008. He is a member of the Board of Directors of the Foreign Investors Council (FIC) and President of the Chamber of Commerce Switzerland – Romania (CCE-R).
RUSSIA’S LIPETSKCEMENT APPOINTS NEW CEO Russia-based Lipetskcement appointed Oleg Lopatin as the new CEO of the company. The President of Eurocement, Mikhail Skorokhod, introduced Oleg Lopatiin saying, “With the direct participation of Oleg Petrovich was carried out construction of one of the most modern plants of the Holding Company in the Voronezh region.” “In 2016, we have ambitious goals - to keep the price of basic construction material, and to strengthen the position of the Eurocement Group as the leader in the Russian market of building materials,” said Mikhail Skorokhod.
DECEMBER 2015 / JANUARY 2016
The former president of the company, José Alberto Vélez, will retire from his position. Jorge Mario Velasquez joined the company as an intern in 1984 and has a career spanning over 30 years. He has handled several segments of the company. Since 2012, he has been Chairman of Cementos Argos and has led recent operations of acquisitions and international expansion of the cement company.
Jorge Mario Velasquez, President, Colombian Argos
LAFARGEHOLCIM APPOINTS NEW CFO
30
The board of directors of Colombian Argos unanimously appointed Jorge Mario Velasquez as the new president of the company. Velasquez will join the position on March 26, 2016.
The newly appointed CEO has work experience of over 35 years, including 15 years in management positions. Interestingly, during the 2008-2010, he served as a CEO of Lipetskcement
Francois Petry, CEO, Aggregates Industries
Ron Wirahadiraksa was appointed the CFO of LafargeHolcim. He will report to the CEO of the group, Eric Olsen. Ron Wirahadiraksa will join the position in December 2015.
ARGOS APPOINTS NEW PRESIDENT
He joined the executive committee after the retirement of Thoma Aebischer. Ron Wirahadiraksa has a PhD in economics.
Ron Wirahadiraksa, CFO, LafargeHolcim
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He has held many executive positions in his career, most notably at Philips in the Netherlands, Greece, Malaysia and USA.
PEOPLE CEMEX ANNOUNCES CHANGES TO ITS SENIOR LEVEL ORGANIZATION Cemex announced changes to its senior level organization effective January 1, 2016. Juan Romero Torres has been appointed as President of Cemex Mexico. Ignacio Madridejos Fernández has been appointed President of Cemex USA and Jaime Gerardo Elizondo Chapa has been appointed President of Cemex Europe. This new region will now integrate the company’s operations in Europe including Spain and Croatia. Jaime Muguiro Domínguez has been appointed President of Cemex South, Central America and the Caribbean. Joaquín Miguel Estrada Suárez has been appointed President of Cemex Asia, Middle East and Africa. By rotating managers from one region to another, Cemex can increase their diversity of experience and knowledge of Cemex’s operations, which allows Cemex to operate its business more effectively and obtain the best use of its assets. “I have the greatest confidence in our management team and our entire workforce. Our greatest asset is the talent and dedication of everyone at Cemex, and I am very excited about the outlook for our business,” said Fernando A. Gonzalez, Chief Executive Officer of Cemex.
SPANISH CEMENTOS PORTLAND COMPLETES EXECUTIVE RESTRUCTURING The board of directors of Spain based Cementos Portland Valderrivas, a subsidiary of Fomento de Construcciones y Contratas (FCC), appointed a new nominee director at its head office in Spain.
HEIDELBERGCEMENT ANNOUNCES CHANGES IN EXECUTIVE BOARD Germany-based cement company Heidelberg Cement announced the resignation of two board members and the appointment of two new board members. The cement company plans to implement the new changes before its acquisition of Italcementi. In July 2015, HeidelbergCement signed an acquisition contract worth EUR 6.7 billion for Italcementi. The current board members, Daniel Gauthier and Andreas Kern, will be resigning from the board of HeildelbergCement.
Currently, Gauthier is responsible for western and southern Europe excluding Germany, while Kern heads the company’s operations in Eastern Europe, Central Asia and Germany as well as sales and marketing.
Hakan Gurdal, Jon Morrish and Kevin Gluskie will join the board as senior
EUROCEMENT GROUP APPOINTS A NEW BRANCH MANAGER Eurocement Group has appointed Johan Anton Nishvits as a new manager for its Voronezh branch in Russia. Johan Anton Nishvits has an extensive experience in the industry.
challenges of the enterprise on the basis of best international practices of the cement industry," said Mikhail Skorokhod, President of Eurocement Group.
The Voronezh plant of Eurocement Group, is by far, one of the most modern and efficient enterprises. “We are very pleased that he has joined our team and are confident that his experience and expertise will enable us to meet the
THAILAND’S SIAM CEMENT APPOINTS NEW CEO Thailand-based cement company Siam Cement appointed Roongrote Rangsiyopash as its next president and CEO.
Mexican magnate Carlos Slim, the largest shareholder of FCC, appointed Carlos Jarque as CEO of FCC. The former director of the company, Juan Rodrigues Torres, was appointed president of Cementos Portland’s real estate arm, Realia.
managers in the cement company. Morrish and Gluskie currently work as senior managers in the group, while Gurdal is a manager at Turkey's Sabanci Holding, with which HeidelbergCement has a joint venture.
The company’s former CEO, Kan Trakulhoon, will retire from his office. Roongrote Rangsiyopash, President and CEO, Siam Cement
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Roongrote Rangsiyopash will join the new position from January 1, 2016 DECEMBER 2015 / JANUARY 2016
31
REGIONAL REPORT
EUROPE, MIDDLE EAST AND AFRICA LAFARGE ZAMBIA COMMISSIONS RAIL EXPORT FACILITY Lafarge Zambia has signed an agreement with Zambia Railways Limited (ZRL) and the Congolese Railways. The agreement was signed for commissioning of the eighth stateof-the-art rail loading facility in Ndola. The move is likely to boost exports of the cement company, as the company is expected to load 400 tons of cement per week in 2016 and more in 2017. “The commissioning the facility is in line with the company’s strategy to continue being innovative and taking a lead in implementing Government policies that promote diversification in the cement industry,” said Emmanuel Rigaux, Chief executive officer of Lafarge Zambia. The company is planning to increase the volume of annual exports to Democratic Republic of Congo, Malawi and Zimbabwe.
32
DECEMBER 2015 / JANUARY 2016
NO NEW CEMENT SUPPLIES FOR GAZA STRIP The program on the cement distribution to Palestinian citizens affected by the 2014 Gaza war is stalled without a clear explanation. The Palestinian Ministry of Economy explained that the citizens of Gaza are still in need of thousands of tons of cement for reconstruction efforts.
Demand for cement and other building materials are expected to increase further due to weather conditions. Though several thousand tons of cement have entered the Gaza Strip so far, demand for cement and other building materials remains high as many citizens are still registered to receive cement for reconstruction purposes.
NOTEWORTHY PROJECTS: AFRICA COMPANY/LOCATION
OVERVIEW
PPC/ZIMBABWE
PPC has earmarked USD 200 million in expanding its production facilities in Zimbabwe. The South African manufacturer will add new milling facilits at the Harare plant, as well as milling and clinker assets in Bulawayo and Gwanda. The upgrades will bring the company's total capacity in the country to 1.2 million tons cement per year.
DANGOTE/CAMEROON
Dangote plans to build a new cement plant in Cameroon, with a capacity of 1.5 million tons of cement per year. The investment required for the integrated plant is of USD 150 million and construction works will be completed in 20 months.
KWANZA SUL CEMENT/ ANGOLA
company will increase production at its only plant in the short and TABLEThe AVAILABLE IN THE CEMWEEK medium term in order to reach a daily cement production capacity of 4,500 tons per day MAGAZINE PRINT EDITION.
QALAA HOLDINGS/SUDAN
The Egyptian company plans on boosting the production capacity of WWW.CEMWEEK.COM/SUBSCRIBE its Sudaneze cement plant to 0.8 million ton per year by 2016. At the moment, the plant has a 0.4 million tons per year cement capacity.
CIMPOR/ MOZAMBIQUE
Cimpor is to invest USD 250 million in a new cement production unit in Mozambique. The company's existing plants in the country currently have a 3.1 million tons capacity.
LIMAK/MOZAMBIQUE
The Turkish cement manufacturer plans to invest USD 150 million in a cement plant with a 2 million tons per year capacity. The plant will be set up in the Maputo port.
MEDCEM/CAMEROON
Medcem has invested more tha EUR 24.39 million in the setting up of a plant with an annual production capacity of 0.6 million tons in Douala. The plant initianted production in June.
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REGIONAL REPORT RUSSIA’S SIBTSEM RECORDS FALL IN CONCRETE PRODUCTION Siberian Concrete, a subsidiary of Siberian Cement, has witnessed a 19 percent decline in production of ready-mix concrete to 245,000 cubic meters in the first ten months of the year, as compared to the same period, a year earlier. The production of concrete was highest in Novosibirsk region to about 137,000 cubic meters, followed by Krasnoyarsk and Kemerovo regions. Krasnoyarsk and Kemerovo regions produced 47,000 cubic meters and 43,000 cubic meters of ready-mix concrete in the first ten months of the year.
LAFARGE CEMENT ZAMBIA EXPORTS TO DRC Lafarge Cement Zambia has partnered with Zambia Railways Limited to improve cement exports to the Democratic Republic of Congo that are expected to reach 400 tons per week in the next year. Lafarge operates two cement plants in Zambia. The Ndola cement plant currently has a production capacity of 400,000 tons per year, while its Chilanga plant is able to produce up to 1 million tons of cement per year. Lafarge's Ndola plant is due to increase capacity by 100,000 tons per annum.
The demand for concrete is increasing due to surge in residential and commercial construction activities. The company is involved in several major construction projects approved by the government. The company plans to sell another 32,000 cubic meters of concrete by the end of the year. The company plans to maintain/ continue the production volumes of 2015 in the next year, as it will facilitate the delivery of high-quality products.
HAIL CEMENT COMPANY RECEIVES INTERNATIONAL CERTIFICATION Saudi Arabia's Hail Cement Company received four international certificates. The cement company successfully passed an external audit of its procedures. The audit was carried out by ABS Global Inc. The four certificates received were: quality management system certification ISO 9001, a certificate of health occupational and safety management systems OHSAS 18001, environmental management system certification ISO 14001, responsible care certification RC14001. The process of certification is expected to improve operational performance and, therefore, the financial performance too.
NIGERIA: DANGOTE CEMENT GIVES TRUCKS TO ITS DISTRIBUTORS
BAKHCHISARAY CEMENT, CRIMEA TO SEE ELECTRICITY SUPPLIES INCREASE
Nigeria cement company Dangote Cement distributed 150 new trucks in brand new condition to its distributors.
Bakhchisaray Cement in Crimea is likely to see its electricity supplies increase as Crimean authorities instructed power companies to increase the supply of electricity to the company.
The move was aimed at improving the distribution of cement products as part of a program named “Redistribution Fleet Empowerment Program”, under which 250 new units will be given in the next phase. The trucks have a 20 tons capacity and are given to the distributors without costs for them, with the condition that they reach a certain volume of sales over the next three years.
According to the head of the Bakhchisaray region, Vladimir Verkhovoda, the company needs about 4.2 MW to fully operate. After negotiations with the power companies, the plant is expected to operate without restrictions for 8 hours during the night, while during the day; the plant will receive about 2 MW of electricity.
NOTEWORTHY PROJECTS: MIDDLE EAST COMPANY/LOCATION DARVAR/IRAN
SOUTH VALLEY CEMENT/ EGYPT
OVERVIEW is investing USD 350 million in a cement pant with a 3,300 tons TABLEDarvar AVAILABLE IN THEthe CEMWEEK per day cement capacity.IN plantCEMWEEK will be located in Damghan and will TABLE AVAILABLE THE benefit from the proximity of a limestone and marl deposit MAGAZINE PRINT EDITION. MAGAZINE PRINT EDITION. The company is installing a new production line at its cement plant WWW.CEMWEEK.COM/SUBSCRIBE through an agreement with a Chinese company. The investment WWW.CEMWEEK.COM/SUBSCRIBE will double the cement plant’s capacity to 3 million tons of cement per year.
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REGIONAL REPORT
SOUTH EAST ASIA KAZAKHSTAN WITNESSES SURGE IN CEMENT IN THE FIRST NINE MONTHS The Kazakhstan cement sector witnessed a 34 percent increase in turnover from cement sales to KZT 60 billion in the first nine months of 2015, as compared to the same period in 2014. The weighted average price of cement for the first nine months of 2015 amounted to KZT 11,957 per ton. In the first nine months of the year, the country’s cement sector managed to sell around five million tons of Portland cement worth KZT 59 billion. The largest demand of cement was from the Karaganda region, with a trading volume of KZT 17 billion in the first nine months of the year. The demand for cement declined due to fluctuations of currency in the export market and end of the marketing season.
INDIA’S CEMENT COMPANIES TO RECEIVE PETCOKE VIA RAILWAYS
product transported at rates cheaper to road transport,” said a senior MRPL official.
The Southern Railway has joined hands with Mangalore Refineries and Petrochemicals (MRPL) initiated a few measures, to transport the petcoke via railways to cement companies. The railway wagons lifted about 3,500 tons of pet coke from MRPL and have transported it to Wadi in Kalaburgi district in the previous weeks. A rake of 59 wagons, each with a capacity of 66 tons, replaced nearly 190 trucks that otherwise would have transported the coke from Mangaluru to Wadi by road. “This is a win-win situation for the Railways, MRPL and the customer (ACC Cements, Wadi). While the Railways earned income, MRPL was content that the initiative replaced that many trucks from the roads while the customer got the NOTEWORTHY PROJECTS: SOUTH EAST ASIA COMPANY/LOCATION
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OVERVIEW
ZUARI CEMENT/INDIA
Zuari Cement is adding another million ton of cement to its current 6 million tons per year capacity in India. The additional capacity will be added by the end of 2015.
SANGHI INDUSTRIES/ INDIA
company has intalled a new cement grinding mill at Kutch, bringing TABLEThe AVAILABLE IN THE CEMWEEK the plant’s capacity to 1.2 million tons per year. Sanghi Industries also plans to install a 15 MW Heat Recovert System at the plant MAGAZINE PRINT EDITION.
JSW CEMENT/INDIA
JSW Cement is set to invest Rs 2,200 crore to bring its capacity in India to 20 million tons of cement per year over the next three years. The WWW.CEMWEEK.COM/SUBSCRIBE targeted Indian areas are East and West India, West Bengal, Odisha and Maharashtra.
DALMIA CEMENT/INDIA
Dalmia Cement Bharat commenced operations at its greenfield plant in Belgaum district. The plant has a 2.5 million tons cement capacity and required an investment of over Rs 1,300 crore.
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REGIONAL REPORT PAKISTAN MAY IMPOSE REGULATORY DUTIES ON IRANIAN CEMENT The All Pakistan Cement Manufacturers Association (APCMA) has requested the Ministry of Finance to impose regulatory duty on cement imports from Iran.
CHINA’S CEMENT MARKET STRUGGLES WITH OVER CAPACITY Hence, the local cement market is flooded with imported Iranian cement. The locally produced cement players are fast losing their market share as they cannot compete with Iranian cement.
The regulatory duties will save the interest of local cement producers. The cement imports from Iran have reached to alarming levels to around 2,000 tons per day.
INDIA WITNESSES SLUGGISH GROWTH IN CEMENT PRODUCTION
Bangladesh-based MI Cement plans to become the top manufacturer of construction material in Bangladesh in the next five years. The cement company is planning to invest a substantial amount of funds for expansion activities. At present, the company’s production capacity is around 6,000 tons, a day. Going further, the company has plans to increase the capacity to 10,000 tons by December, next year and subsequently, to 16,000 tons by 2020.
Prior to the four trillion investments, the country had several competing projects, including infrastructure to real estate, investment from railroads to airport construction. In the first eleven months, cement production fell by 5.1 percent to 2.147 billion tons. The cement prices have been falling steadily throughout the year.
Despite the statutory custom duty of 20 percent, the Iranian cement was being sold at price levels of 40 percent below the retail price of locally produced cement.
BANGLADESH’S MI CEMENT TO EXPAND ITS BUSINESS
The Chinese cement market is struggling with overcapacity in the cement industry. Several cement companies in the country are running into losses due to lower demand.
“The demand for cement has seen a quantum leap (increased rapidly). However, investment and demand is not endless, so results (outcome) of speeding investments in the last 10 years need to be overdrawn in advance,” said an insider from the industry.
India’s cement production growth to October 2015 has not reached even half way as compared to the last year’s numbers.
The overcapacity in the cement sector has led many cement companies in a challenging situation. The cement companies have witnessed a steady increase in their losses and valuation risks.
Cement demand has been sluggish due to subdued growth in the realty market and seasonal uncertainty. India’s total installed capacity is around 360 million tons per annum.
DEMAND FOR CONSTRUCTION MATERIALS IN CHINA TO DECLINE FURTHER
However, the cement industry is not operating at optimal capacity due to lower demand. In the financial year 2015, cement production increased by 8.35 percent to 270.93 million tons and dispatches increased by 4.07 percent to 258.46 million tons.
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Demand for cement, steel and coal is expected to continue its decline next year in China. The state infrastructure investment, although it may improve demand, is unlikely to reverse the decreasing tendency. In the mean time, the state will continue streamlining state-owned companies, reducing the number of enterprises from the current 110 to around 40-50, move which is expected to improve profitability as well as domestic and overseas investment.
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REGIONAL REPORT
ASIA PACIFIC SIAM CEMENT PREDICTS STEADY EARNINGS IN 2016 Siam Cement expects up to a 7 percent gain derived from lower energy costs, mainly due to lower prices in oil, natural gas and coal. The cement & distribution business is predicted to boost the company’s’ earnings, even with an expected five percent decline in domestic consumption, and with less rampup rate at the new cement plant in Indonesia. For these two reasons, the company revised its forecasts at four percent in 2015 and for 2016, at 8 percent. Meanwhile, 2016 is likely to aid THB 42.9 billion in revenues. Earnings for the company in the fourth quarter of 2015 are expected to come flat around THB 9 billion with a potential saving from lower energy costs of THB 1.5 billion.
THAILAND’S SIAM CITY CEMENT PLANS TO BECOME A GLOBAL PLAYER Thailand-based Siam City Cement is planning to become a global player in the cement industry. SCG president and chief executive Kan Trakulhoon, who will hand over the company’s reins to Roongrote Rangsiyopash, in the next month, stressed on the need for the Thai industrial giant to step up and become a global player. The cement company has begun scouting for opportunities that could
DECEMBER 2015 / JANUARY 2016
The president and chief executive also pointed out the company’s keen interest to acquire stakes in cement manufacturers in Vietnam and other countries. The company is currently the third major cement producer in the ASEAN region, since its first cement plant in Indonesia commenced a few months ago, to be followed by Myanmar next year, and Laos in 2017.
PROCESSING OF FLY-ASH TO INCREASE IN VIETNAM
VIETNAM BOOSTS INVESTMENTS FOR ROAD PROJECTS
According to Vietnam’s Deputy Minister of Construction, the volume of processing of ash, plaster of thermal power plants and chemical fertilizers will increase by 80 percent in the next 15-20 years.
The Hai Dong Province in Vietnam has invested around VND 228 billion to construct a new countryside road (NTM).
Le Quang Hung, Deputy Minister of Construction spoke at a meeting regarding handling of ash, gypsum and development of non-baked building materials (VLXKN). The ministry of construction has proposed an additional mechanism, policies concerning the emissions from the power plants and chemical fertilizers. The ministry has issued several legal documents to implement the new program.
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expand its business. To achieve a global player status, the company needs to strengthen its technological and management capabilities to be on par with global players in the industry.
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The investment included the purchase of 180,000 tons of cement from local cement producers. The cement will be used to construct 950 km of rural roads. In the past five years, the Hai Dong Province has funded and provided cement along with contribution from locals, to construct 2,350 km of the concrete rural roads. The project is expected to be completed by the end of 2015.
REGIONAL REPORT VIETNAM’S SONG GIAH CEMENT TO FOCUS ON SUSTAINABLE CEMENT
KOREA CEMENT ASSOCIATION CONDUCTS FORUM The Korea Cement Association, along with seven major cement companies in Korea conducted a forum to discuss resource recycling. The forum discussed the waste recycling in the cement industry and gathered views on circulation of resources and the environment safety management in the cement sector.
Vietnam-based Song Giah Cement has added an environmental protection to its business strategy towards sustainable development. The cement company plans to increase consumption of renewable resources and minimize use of mining resources. The cement company plans to make a significant technological and scientific investment in modern production and continuously improve its product quality. The cement company is planning to implement several energy saving measures to minimize its emissions and waste resource management.
SEMEN INDONESIA EXPECTS STAGNANT MARKET SHARE Indonesia’s Semen Indonesia predicted that its market share in unlikely to increase in the next year, due to increase in competition in the domestic cement market. In September 2015, the cement company had a market share of approximately 42.8 percent. However, the cement company expects to increase its sales by five percent in the next year. The cement company posted 11 percent increase in sales to 2.74 million tons in October, this year, as compared to 2.47 million tons in the same period, a year earlier.
HOLCIM DOME IN NEW ZEALAND LIKELY TO BEGIN OPERATIONS Holcim’s USD 50 million cement dome at Timaru’s port, New Zealand is all set to begin operations. The company's first Timaru-bound order—22,000 tons of cement—was being unloaded from the Esperance Bay ship on PrimePort Timaru's specially constructed No 2 wharf, recently. The cement order from Kanda port in Tokyo was the first inbound shipment for Holcim, in Timaru. Holcim-owned Milburn Carrier II, which will ship outbound orders from Timaru, is scheduled
to arrive in port for the first time later in December. The 30,000 ton silo facility is completed, no radical changes will be made and it will not be painted with the logo of Holcim. However, the company is open to install lights displays onto the dome. PrimePort chief executive Phil Melhopt mentioned that the No 2 wharf was almost completed and its ownership had been handed over to the port by Downer.
NOTEWORTHY PROJECTS: ASIA PACIFIC COMPANY/LOCATION
OVERVIEW
EAGLE CEMENT/ PHILIPPINES
The Filipino Eagle Cement plans to invest USD 1.2 billion in new cement manufacturing facilities in Cebu and Davao in 2015. The two new facilities would have a combined capacity of 4 million tons of cement per year. Apart from these new plants, Eagle Cement is adding a new production line at its existing cement plant in Bulacan.
PT SINAR ARTHALESTARI/ INDONESIA
The company has decided to set up a second production line at its Ajibarang plant in Central Java. The expansion will bring the plant’s capaity to 2 million tons of cement per year, and will require an investment of Rp 2.3 trillion.
PT SEMEN/ INDONESIA
TABLE AVAILABLE IN THE CEMWEEK By the end of 2016, Pt Semen will open a cement factory in Rembang, MAGAZINE PRINT Central Java. The EDITION. investment required is of Rp 4.5 trillion, and the capacity of the plant will be of 3 million tons of cement per year.
The cement sales declined by 1 percent to 21.35 million tons in the first ten months, this year, as compared to 21.57 million tons in the same period, a year earlier. The cement company has taken several measures to retain its market share in the several regions of Indonesia, including Pontianak, Banjarmasin, Lampung, and Balikpapan.
PT ETERNIT GRESIK/ INDONESIA
The company has earmarked WWW.CEMWEEK.COM/SUBSCRIBE
Rp 1.1 trillion for the setting up of a second cement plant in Karawang. The company is preparing for the growing domestic demand following the Indonesian government’s plan to build one million affordable housing units.
CEEMX/PHILIPPINES
Cemex is undertaking the construction of a 1.5 million tons per year integrated production line at its existing plant in Luzon. The additional capacity will double the company's existing one.
XUAN THANH GROUP/ VIETNAM
The company has signed with FLSmidth for the supply of a new production line for the Xuan Thanh Ha Nam cement plant able to produce 12,500 tons of clinker per day. The investment in th expansion is estimated at VND 10.8 billion.
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DECEMBER 2015 / JANUARY 2016
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REGIONAL REPORT DOMINICAN REPUBLIC RECORDS SURGE IN CEMENT CONSUMPTION
AMERICAS CEMENTOS ARGOS OPTIMISTIC ABOUT COLOMBIAN MARKET Colombia-based Cementos Argos expects to benefit from the infrastructure and housing projects to be implemented in the country. The cement company expects consumption to reach around 13 million tons in Columbia due to growing housing and infrastructure markets. In 2015, the company’s revenue increased by 30 percent to USD 8 billion, EBITDA increased by 39 percent at the end of the fourth quarter and profits surged by 60 percent. The company recorded better results
CEMENT PLANTS IN BRAZIL HIT BY LOW SLAG SUPPLIES The cement plants, located in São Paulo, Brazil, are hit by the crisis in the steel market due to over dependency on blast furnace slag to produce special cements.
DECEMBER 2015 / JANUARY 2016
According to the President of the Dominican Association of Cement Producers (ADOCEM), Gabriel Ballestas, the public policies of the government will boost the cement consumption, production and exports. Meanwhile, the cement production is expected to touch around 5.4 million tons and 1.4 million tons of cement is likely to be exported.
and improved earnings in overseas and Columbian market. The cement company also benefitted from modernization activities at its cement plants. The cement company expects the planned infrastructure and housing projects to boost demand for cement.
The two plants, owned by Votorantim and InterCement, are likely to be hit by the suspension of the primary activities of production of Usiminas. Due to the lack of slag, the Votorantim plant will operate as a distribution center for the local market. Though the InterCement plant currently has stock of slag, the company is studying alternatives for the lack of slag supplies. InterCement is considering importing slag through the Port of Santos as an alternative. The two companies, customers of Usiminas in the region, expect the situation to stabilize.
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Dominican Republic is expected to record a 1.4 million ton of cement consumption in 2015.
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CEMENTOS CHIHUAHUA ANNOUNCES CLOSURE OF GCC OF AMÉRICA Cementos Chihuahua (GCC), a cement company with operations in Mexico and USA, has received a foreclosure notice for its GCC of América subsidiary from the court of law. The notice was sent by a USA court, after the dispute with the holding company, Compañía de Inversiones Mercantiles. Around four years ago, Compañía de Inversiones Mercantiles had sold its stake in Sociedad Boliviana de Cemento (Soboce). Since then, Compañía de Inversiones Mercantiles, which had control of Soboce, sued the Mexican cement company because it sold its 47.02 percent interest in that company to the Peruvian company Consorcio Cementero del Sur (CCS). The sale of Cementos Chihuahua breached the agreement by which it must offer the option to acquire the shares of Soboce at the first instance.
REGIONAL REPORT LAFARGE CANADA PLANS TO UPGRADE ITS KILNS LafargeCanada has successfully disabled kiln number 2, 3, 4 at Exshaw mill, reports Thecragandcanyon. In this regard, the company is in the process to replace kiln no.4 with kiln no.6, as a part of the plant expansion project. The company has planned to use stateof-the-art technology in its new kilns, which will help in controlling dust and will have cleaner burning emissions. The new machine will be approximately 30 percent cleaner with sulphur dioxide emissions, 75 percent cleaner with nitrous oxide emissions and 25 percent less greenhouse gas emissions caused due to combustion. The new kiln will also have a better filter technology to help improve dust control. Kiln 4 used the gravel bed filter technology, which was prevalent in the 1980s and 1990’s, but kiln 6 will have a state-of-the-art bag house to collect particles. Kiln no.6 will be operational in 2016.
ARGENTINA WITNESSES SHORTAGE OF CEMENT The Mendoza region in Argentina witnesses a shortfall of cement. The cement shortage was caused due to strike by truckers. This has impacted the construction activities, which has slowed down during the strike. Even cement major like Holcim did not get a sigh of a relief, as their cement plant in the region was also affected due to the strike. The cement sellers found it difficult to replenish the stock of cement in the absence of logistical support.
PARAGUAY’S NATIONAL CEMENT INDUSTRY TO STRENGTHEN SOCIAL HOUSING Paraguay’s National Cement Industry (INC) has signed an agreement with the National Secretariat of Housing and Habitat. “First, I want to thank the Minister for concrete Nunez’s relevant actions for Paraguay, and strengthen a sensitive area such as housing,” said Jorge Mendez, Minister of National Secretariat of Housing and Habitat.
Under the agreement, construction companies can buy cement at a relatively good price to build social housing. Under this agreement, the INC will provide various products of cement to the National Secretariat of Housing and Habitat for construction works. “On the other hand, I wanted to express that as National Cement Industry seek to offer the best product and the best price to all Paraguayans, with the aim of supplying the largest share of the domestic market,” he added.
USA’S CEMENT MARKET EXPECTED TO GROW FURTHER The USA’s cement market is likely to record a 3.5 percent gain in 2015.
An expanding economy will continue to drive growth in the cement market.
The cement market is expected to grow further in 2016 and 2017, by 5 percent and 5.7 percent, respectively. According to Portland Cement Association, the cement consumption has increased by 8.2 percent in 2014 and is expected that the year 2015 and 2016, will witness a similar growth. NOTEWORTHY PROJECTS: AMERICAS COMPANY/LOCATION
OVERVIEW
PACASMAYO / PERU
Pacasmayo invested more than PEN 380 million in a news cement plant in Piura. Construction began in October 2013, and the plant will come on-line in 2015 with a 1.6 million tons cement production capacity per year.
MEGATECH / VENEZUELA
In partnership with the Venezuelan state, India's Megatech is setting up a mini-cement plant to start production in 2016 in Yaracuy. The plant will produce about 4.5 million bags of cement per year. Reportedly, the partnership will extend to setting up another five mini plants in Portuguesa, Cojedes, Aragua, Merida and Yaracuy.
POLIMIX / BRAZIL
TABLE AVAILABLE IN THE CEMWEEK TABLEMAGAZINE AVAILABLEPRINT IN THEEDITION. CEMWEEK Polimix plans to invest R$220 million in a cement plant in the Pecem MAGAZINE PRINT EDITION. Industrial Complex (northeastern Brazil). The project is still pending approval, hence construction is expected to begin in the following 10 WWW.CEMWEEK.COM/SUBSCRIBE toWWW.CEMWEEK.COM/SUBSCRIBE 12 months. The projected capacity is of 0.9 million tons per year.
ELEMENTIA / MEXICO
Following the IPO Elementia is planning in Mexico, the company plans to invest USD 20 million to expand its capacity at the Tula Plant to 3.5 million tons per year. The plant currently has a capacity of 2 million tons of cement per year.
CEMENTOS YURA/ ECUADOR
Cementos Yura plans to invest USD 230 million in a new clinker production plant in Ecuador. Ecuador currently imports a lage part of the clinker needed for cement manaufacturing.
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DECEMBER 2015 / JANUARY 2016
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REGIONAL REPORT
CONSTRUCTION & BUILDING MATERIALS BY BMWEEK.COM LAFARGEHOLCIM AND CDC TO SET UP A NEW LOW CARBON CONSTRUCTION SOLUTION LafargeHolcim and UK’s CDC Group have signed a memorandum of understanding to set up a company that will produce and promote affordable low-carbon construction solution for developing countries. The new company aims at scaling-up production of earth-cement bricks, a simple, reliable, affordable and environmentally friendly building material that was launched by LafargeHolcim in Malawi in 2013.
affected by deforestation resulting from the use of wood-fired bricks.
CEMEX LAUNCHES CONCRETE MADE WITH RECYCLED AGGREGATES
LafargeHolcim has an alternative solution to burnt bricks, i.e. Durabric.
In Germany, Cemex has exhibited a new concrete type it has made with recycled aggregates.
Durabic has been developed by the company’s R &D center, which is produced from a mixture of earth and cement compressed in a mould, and left naturally to cure in the sun without firing. The new brick contributes to reduction in greenhouse gas emissions and a reduction in deforestation associated with wood fuel consumption.
The aim of the new company will be to extend the offer developed in Malawi. According to plans, the offer will also include the provision of equipment to make the bricks, on-site technical support and training for brick makers – into other developing countries that are
CHINA: LOUDI TO USE CEMENT KILN FOR CO-DISPOSAL OF WASTE A waste disposal project in Loudi City, Hunan Province, China, will soon commence. The project required an investment of CNY 80 million and involves the
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DECEMBER 2015 / JANUARY 2016
construction of a production line able to produce up to 200 tons of cement per day. Furthermore, the cement production line will involve processing of 66,000 tons of waste per year.
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Recycling building materials in the construction sector may contribute to decreasing the extraction of primary minerals and conservation of natural resources, making it a more sustainable alternative that has increasingly become an attractive option in the construction industry. "Products from recycled concrete building materials have proven their worth already in roads and civil engineering,” explains Marcel Busch, CEMEX Germany Regional Manager of Mineral Raw Materials for NorthEast Germany. “Now, for the first time in Berlin, a concrete with recycled aggregates is being used as a structural concrete for building construction. We are very pleased to have been part of this pilot project," he added. To produce the recycled aggregates, old concrete fragments are professionally processed in crushers and impact mills which break them down to the required grain size for making a ready-mix concrete.
BMWEEK.COM UPDATE NEW CONCRETE PLANT INAUGURATED IN MOSCOW In Russia, Moscow, a new concrete additives plant has been commissioned. The plant will produce the raw material for plasticizers in concrete - polycarboxylate ethers (SCE). Using SCE, allows polymer concrete, which will eliminate the cracks as a sponge absorbs moisture. According to the report, modern equipment allows casting several stories a day - said the first deputy minister of investment and innovation Moscow region Vadim Khromov opening production. "But if you do not use concrete with additives, the rate of decrease significantly, and the building will be thicker. Accordingly, the rise and the price per square meter," he said.
ALKERN LAUNCHES NEW CONCRETE BLOCK PRODUCTS
GREENRAIL USES RECYCLED RUBBER IN ITALY Technological innovation enables usage of these materials to cut costs. "Greenrail is an example of how the future of recycled rubber is to be built with technological innovation," explains Giovanni Corbetta, director general of Ecopneus. From 2011 to present, 37.5 percent was turned into new materials, next to football pitches, athletics tracks, asphalt and floors soundproofing now there will be the sleepers with these materials," he said.
railway lines and extends the life of the product, 50 against 30-40 of the concrete. But there are also the environmental benefits: for every km line armed with crosses Greenrail helps to recover 35 tons of discarded tires and 35 tons of plastic. Also, they stringers break down the vibrations and reduce the noise. Finally, they are designed to produce electricity with piezoelectric systems or photovoltaic modules polymer."
"The advantages of this type of sleeper are twofold - explains Giovanni Maria Di Lisi, director and founder of Greenrail - at the economic level are reduced by 50 percent the cost of maintenance of
In France, the Alkern Group has launched a new concrete block product.
INDIA: STUDY SHOWS FLY ASH COULD REINFORCE CONCRETE
Alkern Group employs more than 1,000 employees and posted a turnover of over â‚Ź 200 million from more than 50 production sites, on 2014.
In India, adding a small quantity of fly ash in the concrete mixture can help the structure last a lifetime, according to a study conducted in Indian Institute of Madras.
Particularly involved in the environmental quality approach, nearly 32 of its plants are already certified ISO 14001.
Following a series of tests done on different types of concrete, the study by the civil engineering department of IIT-M showed that a proportion of byproducts like fly ash and ground granulated blast furnace slag
On Batimat, Alkern presented new concrete block particular with an insulating core made from expanded polystyrene (EPS), the Comfort City. Particularly suited to collective housing, it combines thermal performance, mechanical, acoustic and fireproof.
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(GGBS) added to the concrete mix can give durability and life of reinforced structures including buildings and bridges. According to the report, it recommends that the cement used for durable construction be partially replaced with or should contain at least 15 percent fly ash or 30 percent slag, along with the use of low water content in the concrete.
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EQUIPMENT
EQUIPMENT CEMENT PLANT IN BATISÖKE, TURKEY FITTED WITH GRINDING TECHNOLOGY A new kiln line has been developed in the Batisöke Söke Cimento Sanayii plant in Batisöke, Turkey. The plant was equipped with a type LM 56.4Loesche mill with a capacity of 500 tons per hour for grinding cement raw material. The gearbox of this mill has a power of 3,400 kW. Magnetic separators, metal detectors, refined parts of the mill fan and the engineering of the cyclone are also included in the scope of supply. The lead time for this vertical roller mill is 10 months. The new kiln line is now fitted with a type LM 28.3 D Loesche coal mill with a capacity of 40 tph. The gearbox has a power of 700 kW. For this mill, the further scope of supply includes magnetic separators, metal detectors, process filters, refined parts of the mill fan and, above all, explosion flaps. For grinding clinker, the type LM 53.3+3 CS Loesche mill with a capacity of 200 tph CEM I with a fineness of 3500 Blaine is being used. The gearbox has a power of 4,700 kW. The commissioning of the new mills in the Batisöke Söke Cimento Sanayii TAS cement plant is planned in the 2nd quarter of 2017.
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HORMICRETO CÍA INSTALLS NEW GRINDING STATION IN ECUADOR Hormicreto Cía will install a new grinding station and replace aging ball mills at its Hormicreto Clinker Plant in Ecuador. The project, awarded to Gebr. Pfeiffer, is expected to reduce the plant's energy consumption and improve the overall grinding efficiency, allowing the plant to increase production from a single mill.
It also includes reject silo, weigh feeder, dedusting unit, metal detector, separator, rotary locks, bag filter, mill fan, ducting expansion joints and dampers, HML 1250 Pfeiffer hot gas generator, MCC control and instrumentation, and related engineering services. Delivery of the entire grinding station is expected to be completed in the beginning of 2016.
The new grinding station includes MPS 2500 BC Mill with Lift and Swing technology, SLS 2250 BC classifier, bucket elevator, reject conveyor belt, chutes and divert chutes.
JAPAN’S CEMENT COMPANIES TO REDUCE CEMENT MAKING COSTS
RUSSIA’S MALTSOVSKY PORTLAND CEMENT COMMISSIONS NEW and EQUIPMENT
Tokyo-based Taiheiyo Cement Matsuda Sangyo have embarked on reinventing the cement manufacturing process.
Both the companies are planning to use, economical lithium ion secondary battery (LiB). The battery utilizes the high amount of gas at a high temperature and calcium as a raw material, which can be used in cement kiln. The companies are conducting a trial run of the equipment at Hiroshima Prefecture in Japan. The equipment is yet to be approved by the Ministry of Economy, Trade and Industry. www.cemweek.com
Russia-based Maltsovsky Portland Cement, has commissioned a modern automated module line for shipments of bulk cement via trucks. Loading will commence without testing the several parts of the equipment. The company will then test the equipment for loading of cement into the cement trucks. The company has completed the modernization of the cement separation module of loading cement. The company is likely to complete the second stage of the cement loading project by early 2016.
BMWEEK.COM UPDATE ESTANDA SUPPLIES DIP TUBES TO LAFARGEHOLCIM GROUP Spain-based Estanda, a specialist in refractory steels, has supplied the new designs of efficient dip tubes for the cement plant of the LafargeHolcim Group in Nigeria. The proposed solution will prevent wear and low durability that dip tubes had been suffering. Estanda will play an active role, from supplying the equipment to installing it in the cement plant of LafargeHolcim Group. The scope of the work includes, initial stage of total component redesign, modifying dimensions and materials used by the client to adapt to the technical recommendations provided by the company. The project was developed in stages 2, 3, 4 and 5 of the preheater cyclones with the installation of refractory steels resistant to high temperatures and abrasion.
THYSSENKRUPP WINS CONTRACT FROM SAUDI ARABIA’S YAMAMA SAUDI CEMENT Thyssenkrupp won a contract from Saudi Arabia’s Yamama Saudi Cement Company to build two turnkey cement clinker production lines. Startup of the two new lines is scheduled for 2018. The two clinker production lines will have a total capacity of 20,000 tons per day, and will be built at a new site, located about 80 km east of Saudi Arabia’s capital, Riyadh The main components include two mobile primary crushers for limestone (each 1,800 t/h throughput), three crushers for additives (each 500 t/h), two crushers for correctives (each 100 t/h) as well as two circular blending beds for limestone, each with a capacity of 80,000 t and various additive storage facilities.
Four Quadropol QMR2 roller mills with a throughput of 425 t/h and two 35,000 t capacity homogenizing silos will be used to grind and store the raw material. The kiln lines comprise 6-stage and 2-string preheaters with Prepol AS-MSC calciner, rotary kilns with Polflame-VN clinkering zone burners, and Polytrack clinker coolers. The clinker will be stored in three 10,000 t capacity clinker silos and two 100,000 t capacity clinker storage facilities. Four combi grinding units consisting of Polycom high-pressure grinding rolls, ball mills and SEPOL separators as well as downstream cement coolers will each produce 300 t of cement per hour. The cement will be stored in six cement silos each with a capacity of up to 25,000 t. The line will also feature six cement packing and loading stations.
THYSSENKRUPP TO EXPAND BUSINESS IN THE MIDDLE EAST Germany-based ThyssenKrupp is planning to expand its activities in the Middle East market. The company signed a deal with Saudi Arabia-based Yamama Cement. ThyssenKrupp will help Yamama Cement to build two greenfield cement plants at a cost of USD 0.5 billion. “As part of the integration and regionalization of its businesses, the firm aims to be close to its customers and participate more strongly in growth in the regions,” said Jens Michael Wegmann, CEO and chairman of the Executive Board of ThyssenKrupp Industrial Solutions. In fact, ThyssenKrupp has established a regional cluster operation in the America, Sub-Saharan Africa, India, MENA, Asia Pacific and CIS, with a view to pooling know-how, making better use of existing resources and standardizing processes.
ARABIAN CEMENT TO BUILD A BROWNFIELD CEMENT LINE Arabian Cement (ACC) plans to build a new brownfield cement line in Rabigh, Saudi Arabia, with a clinker production capacity of 10,000 tons per day.
Building Materials Group Corporation (CNBM) for a cement grinding plant including two Loesche vertical roller grinding mills.
In order to increase the cement grinding capacities (Phase1), prior to the completion of the new line (Phase2), ACC placed an order on China National
Loesche will supply two large vertical roller grinding mills of Type LM 63.3+3 with a table diameter of 6.3 m and a main drive size of 7,400 kW.
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FLASHBACK NEWS FLOW IN CEMWEEK.COM LAST TWO MONTHS (darker red shows higher news volume)
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://research.cwgrp.com/meetings
CW RESEARCH WEBINARS:
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Cement and Clinker Price Assessments – January in review
Thursday, January 28, 2016 at 2:00 PM GMT
Specialty Cements Market Outlook: White Cement & Oil Well Cement
Thursday, February 11, 2016 at 2:00 PM GMT
DECEMBER 2015 / JANUARY 2016
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CONFERENCES WHERE THE CW GROUP WILL BE PRESENTING CBI Brazil & LatAm 2016
February 24 – 25, 2016
Sao Paolo, Brazil
CW Group’s Middle East & Africa Summit
April 4 – 5, 2016
Dubai, UAE
Solid Fuel Trade, Logistics & Use Summit: Middle East & Africa 2016
April 5 – 6, 2016
Dubai, UAE
AshTrade Europe 2016
April 21-22, 2016
Rome, Italy
CBI Africa 2016
June 13-14, 2016
Johannesburg South Africa
BUZZ TOP CEMWEEK STORIES 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
CEO of Holcim Romania to take over as CEO of Aggregates Industries Saudi Arabia’s Yamama Cement signs contract with ThyssenKrupp India’s Shree Cement to acquire Jaypee’s cement assets HeidelbergCement to buy stake in Kyzylkumcement HeidelbergCement expects increased benefits from Italcementi deal New brand identity for Thyssenkrupp Ireland’s CRH expects strong growth in the US Ireland’s CRH gives positive guidance for 2015 GICA to absorb Algeria’s cement deficit Saudi Arabia’s Yamama Cement plans to set up a greenfield plant Germany’s cement industry ups its alternate energy consumption India’s JSW Cement and JK Lakshmi shortlisted for Reliance’s assets Egypt’s cement companies oppose release of the new licenses Cemex announces changes to its senior level organization India’s UltraTech Cement expects margin improvement in 2H2016 Lafarge Africa partners with microfinance bank for housing in Nigeria India’s Jaypee Group to sell cement business Cemex ranks second in CO2 emissions performance U.S.A: Lafarge installs a kiln in old cement plant Dangote Cement launches new promo
TOP BMWEEK STORIES 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
Siniat shut down Bucharest plant BASF sells PHK business to Imerys France: Ammann group outlines strategy for production India: Study shows fly ash could reinforce concrete Lafarge to make fresh investments in Algeria Cemex jas new concrete made with recycled aggregates US Concrete announced Q3 earnings India's WCL to install coal washeries Poland aggregates sector gets a boost USG Boral starts production in Oman US Concrete appoints new COO New concrete plant inaugurated in Moscow US construction spending picks up Re-use application for fly ash material pushed Angola: Update on building materials industry released CalStar Prodcuts closing its doors Cyprus construction numbers down in October Cement plants in Brazil hit by low slag supplies Construction waste to be recycled in Italy Scientists working on recycled aggregates in concrete
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