CemWeek Magazine: May/June 2018 by CemWeek

GLOBAL CEMENT INDUSTRY KNOWLEDGE

ISSUE 44

MAY / JUNE 2018

LEADERS Q&A

Koen Coppenholle Chief Executive of CEMBUREAU World seaborne trade

The shift from cement to clinker Global lime market

China to lead consumption through 2023 CW Research

The recovery of global cement prices News

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Analysis

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Market Coverage

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Interviews

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People

EDITOR’S NOTE Letter from the editor

The CemWeek Magazine is published by the CW Group LLC PO Box 5263 Greenwich, CT 06831, USA www.cwgrp.com www.cemweek.com

STAFFBOX ROBERT MADEIRA

Uncharted waters

CEMWEEK PUBLISHER HEAD OF CW GROUP RESEARCH

As this issue of CemWeek was being wrapped up, North Korean leader Kim Jong-un and US President Donald Trump were meeting in Singapore in a historical summit, one many world leaders hoped would be an important step towards the denuclearization of the Korean peninsula. This landmark event could also work as a tonic for international relations, in a time when the global economy is still clouded by a possible trade war between China and the US. Such a scenario could turn the tide for the dry bulk market, which started the year with an optimistic outlook, and particularly for the seaborne trade of cementitious products. In fact, the world sea-based trade of cement and clinker is experiencing shy growth amid a wave of environmental constraints – a trend that is analyzed in depth in this issue. Always on the table, environmental concerns are also the cornerstone of CemWeek’s conversation with Koen Coppenholle. The Chief Executive of CEMBUREAU has shared his insights on the increasingly important role of the European Cement Association, Europe’s economic challenges, and, in particular, the European cement industry’s worldwide leading position regarding alternative fuel usage.

Margarida Cunha Editorial Coordinator

LIVIU DINU Mihnea Manea ADVERTISING

Filipe Gouveia Paulo Cruz Raluca Cercel Sara Ruas Tea Vukicevic

CONTRIBUTING WRITERS & RESEARCHERS

Diogo Vieira SANTOSH SHETTYE DESIGNER

After a challenging 2017, Europe’s construction sector is slowly recovering. With demand gradually picking up, cement prices, both domestic and trade, are also increasing, not only in Europe but globally. The first quarter of 2018 proved positive for the world cement sector, despite a still fragile macroeconomic scenario that prevents analysts from adopting overly optimistic outlooks.

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Notwithstanding the geopolitical risks that could dampen cement consumption, investing in the construction sector continues to represent an opportunity not only for improving quality of life domestically, but also to increase competitiveness internationally. That is especially true for Colombia, an emerging economy that is currently investing in its infrastructure. CW Research sets its eyes on the Colombian cement market and analyzes the country’s plan to upgrade transportation and boost the national cement industry.

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

As the global economy floats its way along uncharted waters, the world cement industry continues to ride a wave of cautious growth. After all, a rising tide lifts all boats.

The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of its contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

CW Group

Margarida Cunha

Editorial Coordinator

CW Group

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CW Analytics

contents FEATURES 4 Leaders Q&A: Koen Coppenholle In an exclusive interview to CemWeek Magazine, Koen Coppenholle, Chief Executive of CEMBUREAU, shares his insights on issues such as the role of CEMBUREAU, Europe’s economic challenges, and, in particular, the European cement industry’s worldwide leading position regarding alternative fuel usage

30 CW Research: Global cement domestic and trade prices to rise in 2Q 2018 Following a depressed 2017, the first quarter of this year is proving cautiously optimistic for the global cement industry, with factors such as stronger demand and costlier fuel driving cement FOB and ex-works prices up

12 CW Research: World Sea-Based Trade – The shift from cement to clinker Expected to top 150 million tons by 2023, global sea-based trade navigates its way towards shy growth amid a wave of environmental constraints

36 Country Snapshot: Colombia’s plan to upgrade transportation and boost the cement market CW Research analyzes how large-scale infrastructure projects will shape the evolution of the Colombian cement sector through 2023

18 Acico – Expanding in Cement ACICO Industries and subsidiaries is an established manufacturing, building materials, and construction group with a track record of over 25 years' experience in the Arabian Gulf

26 CW Research: World lime market to reach USD 30 billion by 2023 The global lime market will face several changes over the next few years, most of which will be directly tied to China’s industry policies and the development of emerging markets

DEPARTMENTS 1 EdiTor's letter Uncharted waters

48 cw group meeting agenda CW Group’s upcoming events

3 numbers in brief EBITDA pressured by growing energy costs and cost of deliveries

40 Research Cement Volumes 42 Departments People Equipment

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49 BUZZ Top 10 CemWeek, BMWeek and PetcokeWeek stories

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numbers in brief

Harsh weather conditions affect sales in 1Q 2018 EBITDA pressured by growing energy costs and cost of deliveries Companies have been affected by the unseasonal cold weather of the first quarter of 2018, specifically in North America and Europe. The harsh weather conditions of the first quarter are expected to be mitigated by the end of the year, as some manufacturers now have to deal with a backlog of orders (such is the case of HeidelbergCement). Another common theme for the first quarter of 2018 has been the rising cost of energy. Cemex announced that cost of sales has increased, reflecting higher energy costs, and that it is realistic to expect a 4-6 percent increase in energy cost per ton of cement by the end of the year. On the other hand, HeidelbergCement expects energy costs to flatten by the end of 2018. CHART: 1Q2017 and 1Q2017 revenue (USD bn)

Source: Company reports, CW Research

Titanâ&#x20AC;&#x2122;s results in the United States were eroded by long maintenance stoppages and the harsh winter conditions. Tough conditions were also faced in South-East Europe, but were mitigated by growing pricing. Likewise, Cemex and HeidelbergCement reported price increases in most of the geographies they have presence in. CHART: 1Q2017 and 1Q2016 EBITDA margin (%)

Source: Company reports, CW Research

LafargeHolcim continues to struggle with a slowdown in revenue, in spite of increased cement volumes. For the rest of the year, the company expects positive signs in most regions.

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Leaders Q&A

Koen Coppenholle CEMBUREAU, Chief Executive In an exclusive interview to CemWeek Magazine, Koen Coppenholle, Chief Executive of CEMBUREAU, shares his insights on issues such as the role of CEMBUREAU, Europe’s economic challenges, and, in particular, the European cement industry’s worldwide leading position regarding alternative fuel usage

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Leaders Q&A “A passion for European law and international politics has driven my career, starting with a strong focus on EU institutional law as a research and teaching assistant at the ‘Katholieke Universiteit Leuven’.” That’s how Koen Coppenholle starts to describe the journey that would take him to CEMBUREAU, where he currently serves as Chief Executive. “My year abroad for a Master of Laws at Harvard Law School allowed me to study US federalism as a possible blueprint for the further development of the European Union. The three year stint at the European Court of Justice in the cabinet of Judge P.J.G. Kapteyn allowed me to deal with a wide array of cases in all areas of EU law, a perfect preparation for my career as an attorney with Linklaters De Bandt where the focus was also on EU competition law and state aid. As from 2000, I entered the area of government relations where I gained experience on ‘EU law in the making’, first with General Electric and then for ArcelorMittal. As an energyintensive industry, the steel industry’s challenges and opportunities are similar to those of the cement industry. So, CEMBUREAU was an obvious next step, which allowed me to add management skills to my legal and policy expertise.” CemWeek had the pleasure to interview Koen Coppenholle, and now shares his insights on a wide range of pressing topics, from the role of CEMBUREAU to Europe’s economic challenges, and, in particular, the European cement industry’s worldwide leading position when it comes to alternative fuel usage.

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The European Cement Association plays a significant role in the industry. How do you characterize the evolution of CEMBUREAU to date? The role of CEMBUREAU is to link EU policy initiatives to the bottom-line relevance of cement companies. This involves three major areas of activity and CEMBUREAU has made significant strides to improve its performance in each of these over the years:

CEMBUREAU has made considerable efforts over the past years to not only tell the stories of our industry and workers, but also to position cement as a product championed by policymakers • Early warning role: CEMBUREAU has built an unparalleled early warning system whereby our Members are not only alerted about the most recent policy initiatives but can also get information on the status of legislative files, next steps in the procedure and the workings of the

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institutions in general. This function allows our Members to always be on top of any developments and provide timely input. • Analysis of the impact of policy on the cement sector: CEMBUREAU is continuously working on its position as a trusted partner in its relationships with policymakers and for that it mobilizes the cement sector to provide input, data and facts that are then translated into sector positions on specific policy initiatives. CEMBUREAU has,

over the past years, invested considerably in external studies that underpin the arguments we make vis-à-vis policymakers or reinforce the strengths we set out for cement and concrete. • Communication: the voice of the cement sector needs to be heard and that is where our communication comes in. Here as well, CEMBUREAU has made considerable efforts over the past years to not only tell the stories of our industry and workers, but also to position cement as a product championed by policymakers. CEMBUREAU has also engaged in a longer-term communications and public affairs campaign to align our messages with those on the EU agenda and reach out to EU institutions and citizens at large and share the solutions that the industry can offer in a modern society. This effort is coupled with our other initiatives, for instance, The Concrete Initiative, which aims to promote the unique contribution of concrete to a more sustainable built environment. For better and more effective

ac ti on on the European cement market, what strategies has CEMBUREAU adopted? First of all, I would like to emphasize that CEMBUREAU is not a “player” on the market. As an association, we represent the industry towards European and national policymakers on issues that are, from a regulatory point of view, relevant for the sector. In that role, however, we

have developed actions that ensure that we feel the heartbeat of the industry and are confident that the positions we present and the facts we provide are supported by what lives in the cement companies and the national cement associations. Therefore, we have reinforced our outreach to people in the field through the organization of a CEO meeting in the margin of our General Assembly, which aims to create a platform for exchange on relevant policy priorities.

The main challenge, but also opportunity, for the cement industry is to demonstrate its essential contribution to smart cities and well-being of its citizens In addition, the CEMBUREAU Board has met with group CEO’s in order to get their direct input on top priorities for the business. We have further opened our window on the world by engaging with the European trade unions

and we envision a stronger cooperation with them going forward. As many of the policy challenges and opportunities are global in nature, we also reach out to our colleagues in other parts of the world and have engaged in a reflection on increased international cooperation. These actions, together with a stronger focus on studies and analyses that strengthen our arguments, a transparent communication and a driven coordination with our

national associations and companies, all contribute to firmly positioning our industry as a positive and constructive partner in the policy debate. Currently, what are the most pressing challenges for the European cement industry? From an economic perspective, the European cement industry is still on a path to recovery following the severe downturn in the market during 20072013. Our Activity Report shows optimistic signs of cautious recovery in cement production as a result of construction markets picking up again. From a policy perspective, the main challenge, but also opportunity, for the cement industry is to demonstrate its essential contribution to smart cities and well-being of its citizens. The cement industry’s supply chain, from quarry to end product, contributes to jobs, growth and innovation in the European market but with a strong focus on developing local communities. A study carried out by LeBipe for CEMBUREAU has demonstrated that every EUR of added value generated in the cement and concrete industry translates into EUR 2.8 for the overall economy, a figure that is higher than in other industries precisely because of the positive impact of our industry on local growth and jobs.

We need to further position our industry as key to the circular economy: today’s cement industry in Europe substitutes an average of 43% of its primary fuels with alternative fuels, making Europe the frontrunner worldwide as the global average is just 14%. Alternative fuels are taken from a large variety of waste streams and the cement sector is therefore part and parcel of waste management policies at European and national level. A recent study

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Leaders Q&A

carried out by Ecofys for CEMBUREAU demonstrates that there is no technical barrier to substantially increase the use of alternative fuels. The barriers are regulatory in nature, including the lack of an efficient landfill ban for recyclable and recoverable waste and permitting, public acceptance and waste management issues at national level. The Energy Union initiatives create a unique opportunity for CEMBUREAU to not only highlight the investments done by the cement industry to turn its manufacturing process into one of the most energy-efficient ones but also to showcase the energy efficiency characteristics of concrete thanks to its thermal mass. A study by 3E consultants demonstrated the huge potential of buildingsâ&#x20AC;&#x2122; thermal mass to maximize the use of renewable energy. This can result in up to a 25% CO2 reduction per dwelling, up to 50% reduction in the need for peak electricity supply capacity and savings of up to â&#x201A;Ź300 per household per year. The story of the cement industry is of course also the story of a CO2 intensive

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manufacturing process and we should be clear about putting the facts on the table. The cement industry is a process industry whereby 60% of the emissions are process-related. Over the past 24 years, the EU28 cement industry has achieved a 21% reduction in CO2 emissions per ton cementitious. Furthermore, a vision of how we see our sector reducing its

on the innovation projects we have in the pipeline focused on, inter alia, a reduction of the clinker-to-cement ratio, research into the development of novel cements and research on carbon capture and storage/use, which has now culminated in a demonstration project that has identified two plants (one in Italy, one in Austria) for demonstration.

Todayâ&#x20AC;&#x2122;s cement industry in Europe substitutes an average of 43% of its primary fuels with alternative fuels, making Europe the frontrunner worldwide

What can be done to make alternative fuel usage more attractive to cement companies? We do not think it is a question of attractiveness of alternative fuels to cement companies. As stated before, we are at a 43% average alternative fuel rate in the European Union, with some plants achieving up to 100%.

emissions by 2050 has also been developed in our Roadmap. We also communicate

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It is the waste management organization that occurs at different speeds across Europe that is the main barrier to a further uptake.

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Leaders Q&A The above-mentioned Ecofys study, carried out on behalf of CEMBUREAU, identifies four main drivers which encourage coprocessing in the sector: • Waste management policy, whereby Member States incentivize more advanced treatment methods • Low levels of bureaucracy, facilitating the permitting for both using waste and importing pre-processed waste • A modernized cement industry • Price and price volatility of conventional fossil fuels In terms of the barriers at national level that can hinder co-processing in the cement industry, these have been identified as: • an insufficient availability of high quality waste

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The barriers [to increasing the use of alternative fuels] are regulatory in nature • excessive bureaucracy • low public acceptance • an under-developed waste processing industry • high competition for available waste • low landfill taxes.

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The use of other constituents in cement and the reduction of the clinker-tocement ratio means lower emissions and lower energy use. What is being done by companies to achieve this goal? We wish to emphasize first that our innovation agenda aimed at driving down emissions and improving our energyefficiency is not limited to decreasing the clinker-to-cement ratio. Our 2050 Low Carbon Roadmap sets out different routes to emissions reduction, amongst which an increased use of alternative fuels, research into novel cements, improved energy efficiency of our kilns and a successful deployment of CCS/CCU technology. As stated before, we are calling for a full supply chain approach in determining the footprint of the cement industry, which would introduce concrete as a low-carbon product and with strong energy-efficiency characteristics, in the assessment of our overall carbon footprint.

This being said, the cement industry keeps on working on reducing the clinker-to-cement ratio through the use of clinker substitutes. In these endeavors, one cannot ignore that the availability of alternative materials that can be used as other constituents varies considerably. For example, granulated blastfurnace slag availability depends on the location and output of blastfurnaces for pigiron production equipped with slag granulation facilities, whilst fly ash use is dependent on supply from sufficiently close by coal-fired power plants. The availability of pozzolans depends on the local situation and only a limited number of regions have access to this material for cement production. In our research and innovation efforts, we also need to ensure that the introduction of constituents allows the sector to maintain

the durability and strength that make our product a material of choice for durable and sustainable construction.

â&#x20AC;˘ EUROCONSTRUCT expects cement consumption to have risen by 2.4% in 2017 and to rise by 3.5% in 2018.

When do you think the cement industry's stagnation will end? What are the key steps that must be taken to make this happen? As stated before, there are signs of hope. According to the latest data available, there are signs that the market is picking up once again: â&#x20AC;˘ Production for EU28 (covering cement production plus clinker exports) was registered at 183.6 MT, while consumption at 154.2Mt, both recording a slight increase.

In order to sustain the positive momentum for our industry and spur growth, it is essential that its competitiveness is properly addressed. It is precisely within that context that we address policymakers to ensure that a legislative framework is created that, in its ambition, allows our sector to compete globally and to achieve returns on investment that allow for further growth, job creation and innovation.

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FEATURE CW RESEARCH

World sea-based trade

The shift from cement to clinker Expected to top 150 million tons by 2023, global sea-based trade navigates its way towards shy growth amid a wave of environmental constraints

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FEATURE

espite a decrease in the volume of cementitious materials traded between 2016 and 2017, seaborne transportation of those commodities will experience a slow but sure growth over the next five years. As Asia-Pacific reinforces its leadership as a global sea trade booster, increasingly tight environmental regulations, both in shipping and in limestone burning, are bound to turn the tide and relegate cement to a secondary position.

The international shipping industry continues to cement its role in the world commerce. Accounting for 90 percent of world trade, it is one of the safest and most environmentally benign forms of commercial transport. It is only natural

Due to proximity and pricing considerations, the largest volumes of cementitious materials are traded within the Asia-Pacific region that shipping is one of the preferred transportation means by the cement industry. On the one hand, seaborne trade ensures oversupplied markets can dispose of their surplus production. From the buyersâ&#x20AC;&#x2122; perspective, sea-based trade

of cementitious commodities enables markets with risky scenarios for business investments to import cement. The same goes for undersupplied markets where setting up new capacity is constricted or made too expensive by environmental regulations.

Asia-Pacific and gray cement boost trade in 2017 According to CW Research, in 2017 alone, more than 139 million tons of cementitious materials were traded by sea-going vessels, a decrease of 6.4 percent compared to the volume shipped in 2016. This contraction was mainly caused by even stricter Chinese cement and clinker rationalization efforts, combined with increasing cement capacity and selfsufficiency of many developing markets, namely East African ones. â&#x20AC;&#x153;The decline in Chinaâ&#x20AC;&#x2122;s gray cement exports and slower demand in some importing markets, along with selfsufficiency in other markets, have

Global gray cement trade outlook (million tons, 2018F to 2023F) Gray cement seaborne trade volume

Source: CW Research

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YoY % change

Main trading regions and pairings (2017, mm tons)

Western Europe & Baltics West Coast US

Great Lakes Black Sea & intra-Med Basin

Eas t S Coa Am outh st eric a

& a st fric Weral A nt Ce

bean Carrib

North Africa

Middle East

Coast West merica A South

Eas t& Afri South ca

Ea st Co as t

Asia Pacific

Source: CW Research

hindered cementitious trade volumes in 2017”, notes Tea Vukicevic, CW Group’s Associate Analyst. “However, as of the beginning of this year, more than fifty new vessels have been added as a response to solid demand in Asia and a turnaround in the market and investors’ confidence.” Due to proximity and pricing considerations, the largest volumes of cementitious materials are traded within the Asia-Pacific region, which, in 2017, accounted for over 50 million tons (almost 40 percent) of the global sea-based trade. The Middle East ranks second, albeit with a much smaller market slice that nears 12 percent of the total cementitious seabased trade. At the global level, gray cement continued to be the most commercialized cementitious commodity by sea in 2017, making for almost half of the sea-based

CW Research forecasts clinker will replace gray cement as the most traded commodity by sea by 2023 cementitious trade. Clinker (including both white and gray), accounted for 35 percent of total seaborne cementitious trade in 2017, followed by ground blast furnace slag, with an 18 percent share. Far less traded, white cement and fly

ash made for three percent and for less than two percent, respectively, of total seaborne trade of cementitious materials.

Clinker to replace cement as most traded cementitious commodity by sea Over the medium term, trends in the seaborne trade of cementitious commodities will reflect a more environment-friendly approach to both producing cement, and shipping in general. Between 2018 and 2023, the total volume of sea-based traded cementitious materials will reach almost 151 million tons. The increasing trend represents an annual growth rate of over one percent, and is likely to be driven in particular by growing demand for clinker in limestonescarce markets that are constantly increasing grinding capacity, and supply chain optimization efforts.

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FEATURE Sustainability concerns are bound to shape the seaborne trade of cementitious materials at different levels. On the production side, a more stringent environmental approach to limestone burning in developed economies – coupled with scarcity of the sedimentary rock in emerging ones – represents an opportunity for clinker to grow its market slice. More so, the trend for future plant expansions is likely to be more materially translated into grinding units rather than integrated plants, since cement manufacturers benefit on the short term by reducing investment costs. Thus, CW Research forecasts clinker will replace gray cement as the most traded commodity by sea by 2023. “Looking onwards, Asia Pacific will remain the most dynamic route, trading mostly inter-regionally as well as regionally, and supplying clinker – which is expected to be the lead trading cementitious material by 2023”, observes Tea Vukicevic. From a transportation perspective, shipping costs, a key factor when competitively supplying customers with cement, are impacted by fuel costs,

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Solid demand in Asia has contributed to a turnaround in the market and investors’ confidence, and interest in new vessels and conversions has been increasing which in turn are being regulated by an increasingly stricter legal framework. The shipping industry is being pressured by the International Maritime Organization to reduce its fuels maximum sulfur content to 0.5 percent from the current average of 3.5

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percent, in an attempt to reduce pollution – a move that is likely to translate into increasing transportation charges.

Asia leading new cement carrier additions There are currently more than 360 cement carriers used for seaborne distribution of cementitious materials, with an average age of 27 years. Solid demand in Asia has contributed to a turnaround in the market and investors’ confidence, and interest in new vessels and conversions has been increasing. Therefore, the majority of the newly added vessels found their place in markets such as Japan, Vietnam, Indonesia, Philippines, etc. Allowing for environment-friendly, speedy and weather-independent cement distribution, utilization of cement carriers has currently reached almost 100 percent, and is a market CW Research forecasts to grow in the coming years (mostly concentrated in Far East Asia, India, United States and, to a lesser extent, in Med Basin). When looking at market shares of large cement companies by cargos moved, LafargeHolcim, HC Trading and Cemex control almost 30 percent of the market,

LafargeHolcim, HC Trading and Cemex control almost 30 percent of the market

while the two largest Asian cement traders, Taiheyo and Tong Yang Cement, account for around 11 percent of the market. At the global level, there are almost 800 cement terminals, more than 130 waterside grinding plants (slag and clinker), and almost 150 waterside integrated cement plants. Most of the cement

terminals at the global level are located in Far East Asia, followed by Europe, specifically Western Europe. In terms of waterside integrated plants (used as export facilities), the Far East has a total of 51 plants, and 43 integrated waterside plants are located in the Med Basin and Black Sea region.

About the report The World Cement, Clinker & Slag Sea-based Trade Report provides an in-depth and data-oriented analysis of trade-related development and analyzes the historical trade flows and prices, changes in exports and imports the past years from a regional perspective with a focus on key markets. The report also projects key cement and clinker supply-demand gaps that will sustain world cement trading in for the next few years. Key exporters, their facilities, and traders are profiled, as well as key ocean-going cement carrier operations and their vessels. Examined trade flows include gray cement, clinker, white cement, and slag, as well as a discussion of fly ash trade, in bag, big-bag, or bulk form. The report projects main flows through 2023 expected to be shipped by ocean going vessels and also includes prevailing cement trade prices and bulk/dry cargo shipping rates.

More information about the report can be found here: https://www.cwgrp. com/research/research-products/ product/276-world-cement,-clinkerslag-sea-based-trade-forecastthrough-2023

For more information and placing an order, please contact Liviu Dinu, Market Services & Marketing Consultant, CW Group (Europe), by phone at +40-74467-44-11, or e-mail at ld@cwgrp.com.

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FEATURE

Acico Expanding in cement ACICO Industries and subsidiaries is an established manufacturing, building materials, and construction group with a track record of over 25 years' experience in the Arabian Gulf. ACICO established business operations in Kuwait, backed by competencies in the manufacturing of autoclaved aerated concrete while using German technology.

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FEATURE

ince established by ACICO Construction Co. on August 2007; ACICO Cement has contributed to the construction boom in Kuwait through its support of governmental projects. These projects were executed either with ACICO Construction’s contribution or through other pioneer construction companies locally and internationally. In addition, ACICO Cement has exported its production to some neighboring Arab countries and spared no efforts in supporting the private projects continuously. In addition, the company’s aim to become a globally recognized brand through value, self-reliance, and fulfilling promises according to a well-established plan without any quality compromises. ACICO’s mission is to achieve sustainable growth combined with integrated development by maintaining high quality products, efficient production lines and delivery schedules, and fostering stable and robust long-term relationships.

Our Corporate Social Responsibility ACICO is not just a construction company or a manufacturing company; as ACICO believes that the very existence of any organization relies on the human element, which constitutes of the whole operational chain from board executive to factory worker. The wellbeing of each employee at all levels of the hierarchy is

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a responsibility of the organization that leads to maximum efficiency performance, which in turn fulfills the responsibility to shareholders, consumers, and the environment. The continuation of this cycle requires maintenance of the human element, which spreads into society creating the satisfied communities we live in. From an environmental perspective, it is the responsibility of every organization to have a waste management policy, as ACICO does. This would preserve the environment and the community we operate and live in.

operations and projects, which in turn decreases the risk factors associated with manufacturing. ACICO Cement has contributed to a more secure and solid construction development in Kuwait. ACICO Cement is locally produced. The cement is used in the manufacturing of a variety of building material such as aerated concrete, ready mix concrete, interlock pavers and pre-cast systems. ACICO Cement has become the trusted name for all kind of construction works due to the reliability of the product’s high quality and technical specifications.

In addition, it is in the best interest of all profit organizations to adapt a cohesive CSR policy as it is a core concept that contributes directly to the performance and profitability of the organization.

Through our high-tech quality control laboratories, highly qualified technical engineers, technicians, and skilled labors, we are able to maintain and assure the quality of ACICO’s Cement. ACICO operates and manufactures in compliance with local and international standards. ACICO Cement is approved by Ministry of Public Works, Public Authority for Housing Welfare, Ministry of Defense and all major governmental bodies.

ACICO Cement has contributed to a more secure and solid construction development in Kuwait Plant Overview Due to our industrial success, ACICO started manufacturing cement as part of ACICO’s self-sufficiency policy. This value chain assures the timely supply of raw material for ACICO manufacturing

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ACICO’s products of cement, ready-mix concrete and interlock pavements are characterized as a major contributor in executing all different kinds of construction projects in many fields such as housing, hospitals & health care facilities, and public works of all different kinds and scales, in addition to Kuwaiti oil sector’s various projects. ACICO Cement cooperates with all the Kuwaiti construction field key players and contributors, including architects and craftsmen, locally and internationally. The annual capacity is approximately 2.2 million tons of various types of cement.

Ahmed Al Khaled â&#x20AC;&#x201C; CEO, ACICO Contruction

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FEATURE Product Mix

The Challenge - The Cement ACICO Cement was and will always Plant Expansion

ACICO Cement adopts a philosophy that is oriented around continuous development to ensure fulfilling the business needs by working on enhancing both productivity and reliability. In order to keep the competing advantage and provide the Kuwaiti market with uniform services and products that are aligned with the market Cement ACICO Cement has multiple number of demand. production lines to facilitate producing various types of cement and other relevant To do so, ACICO created a new department, Project Development products as follows: Department (PDD), to work in parallel with ACICO Operations. These two departments ensured internal cooperation and implementation but also made sure that every step of the development met local and regional regulations, market conditions and demand. In spite of the remain committed to providing construction solutions that meet all the needs of its business partners by offering different kinds of its vital wide-range products. ACICO cement includes the following sectors:

Ordinary Portland cement – OPC Type 1

Moderate- Sulfate Resistant Cement – MSRC Type 2

Sulfate Resistant Cement – SRC Type 5

White Cement

Ground Granulated Blast-furnace Slag – GGBS

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best contingency plans prepared to address possible issues, the expansion was met with a few setbacks including climate, geography and regulatory related challenges. However, the production capacity increased successfully.

Ready-mix Concrete

The high quality of Acico Cement has prompted the company to provide itself with two production lines of both wet and dry ready- mixed concrete. This quality of Acico ready-mixed concrete has proved its ability to meet project specifications and delivery schedules in addition to providing the appropriate services as well as meeting the customer expectations. Moreover, this leading ready-mix concrete is transported using one of the best fleets, which includes both transit mixer and concrete pumps.

The plant is designed and equipped with the latest industrial technologies and is supervised by experienced engineers and managed through prudent management policy, which aims to maintain quality according to local and international standards. The company includes ready-mixed concrete plant to serve its projects and projects of the local market. This plant contributes to the building process through a fleet of ready-mix concrete vehicles, pumps, and central automatic concrete mixers. Acico clients benefit from its technical expertise and from the innovative materials provided by it to the market, and these are prominent trade mark of Acico Cement which is considered one of Kuwait`s pioneers in the industry of ready- mixed concrete which enjoys a prominent presence in Kuwait.

Precast Concrete

ACICO Interlock Plant is characterized currently as one of the latest production lines in this industry

The Company has a group of production lines to engage in the production of precast concrete and pre-stressed buildings. ACICO has the longest experience in the Gulf Region in producing all types of precast concrete therefore it is considered a specialized company in constructions and precast concrete. There are 4 production halls which contain the most advanced European machines and equipment such: as automatic central batching plants, hollow core production line, hydraulic tilting casting tables, steam system, an automatic concrete transportation system to the casting stations in addition to overhead, and gantry cranes to transfer the in process and finished products to the production and stock yards. The most important precast products are:

Coloums, beams, wall panels and slabs of different types.

Infrastructure products.

Barrier and concrete boundary walls.

G R C products.

External cladding materials.

Electrical Converter substations or similar.

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FEATURE Interlock Pavements

ACICO Construction invaded the interlock field as a part of the company`s integrated strategy and vision targeting customersâ&#x20AC;&#x2122; needs of the product and meeting their aspirations through products diversification. ACICO Interlock Plant is characterized currently as one of the latest production lines in this industry, using one of the most advanced German technologies.

Quality control

inspected during the dispatch process by the means of random samples of the product before delivery to the customer.

ACICO Cement factory supplies its products to ready-mix concrete companies, precast, and blocks companies in addition to other sale outlets in different areas in Kuwait where cement is demand either in bags or as bulk. The final product is also

To guarantee compliance to the Kuwaiti authoritiesâ&#x20AC;&#x2122; quality standards and metrics, the products are tested quarterly by MPW test lab. During this test, the product is certified as complying with the quality standards of the MPW. ACICO Cement products are also subjected to being tested through other governmental certified labs such as the Kuwaiti Institute for Scientific Research and the Ministry of Defense (MOD) lab. These tests aim to certify the product competency and

Cement and Ready-Mix Factory and Precast Factory

The Interlock plant producing a chain of products and other relevant products as follows:

PRODUCT

EXAMPLES High ways

Medium Duty Pavers

Walk ways Malls Interface Traffic light intersections

Heavy Duty Pavers

Car parking Petrol stations

Curbstones and its accessories

Boarders Buildings

Solid Cement Blocks Villas

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compliance to the project-based and authority-based standards

Interlock Factory

ACICO Interlock Factory is equipped with the latest technology according to the standards of the Kuwaiti Ministry of Public Works (MPW) to assure production compliance to the process requirements, as well as the final product compliance to the quality standards via well furnished with high-tech testing equipment. In addition, quality assurance process starts from the moment raw material are received and then it is followed by various inspection tests and approaches during production process, which is performed

The annual capacity is approximately 2.2 million tons of various types of cement by using very high standard devices implementing the latest technology represented to the filed. The final product is also inspected during the dispatch process by the means of random samples of the product before delivery to the customer.

To guarantee compliance to the Kuwaiti authoritiesâ&#x20AC;&#x2122; quality standards, the products are tested semi-annually by MPW test lab. During this test, the products as well as the machinery are certified/calibrated as complying with the quality standards of the MPW. ACICO Interlock products are also subjected to being tested through other governmental certified labs such as the Kuwaiti Institute for Scientific Research and the Ministry of Defense (MOD) lab. These tests aim to certify the product competency and compliance to the project-based and authority-based standards. ACICO Interlock was and will always remain committed to providing construction solutions that meet all the needs of its business partners by offering different kinds of its vital wide-range certified products. ACICO Interlock is approved by Ministry of Public Works, Public Authority for Housing Welfare, Ministry of Defense and all major governmental bodies.

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August / September MAY/JUNE 2016 2018

Insight Analysis CW RESEARCH

World lime market to reach USD 30 billion by 2023 The global lime market will face several changes over the next few years, most of which will be directly tied to Chinaâ&#x20AC;&#x2122;s industry policies and the development of emerging markets

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Insight Analysis

n the 2018-2023 period, the global lime market is projected to still be driven by China, despite the most recent policies effected by the Chinese government regarding the steel and aluminum sectors, which will dampen consumption in the world’s largest consumer of the commodity. In their most recent update of the Global Quicklime, Slaked Lime and Hydrating Lime Market Report, CW Research’s analysts expect total lime production to top 380 million tons over the next half decade, while in terms of value the market is projected to reach USD 30 billion during the same period. Growth drivers and dampeners

Lime consumption drivers in the 20182023 period are expected to vary wildly from region to region, but most of the growth will be boosted by several industries in Africa, particularly the metallurgy and aluminum ones, while in the Middle East the steel sector is projected to drive consumption over the period. In Asia and Europe, consumption of lime is expected to remain stable, with the paper and pulp industry in Asia ex-China, emerging as one of the major consumers of lime over the next five years. Meanwhile, consumption growth of lime in some sectors in China is projected to decrease or remain mostly flat in the 2018-2023 period, due to the country’s new policies for several key end-user industries of the product, including steel and aluminum.

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In the Americas, demand growth for lime over the 2018-2023 period is expected to be mostly derived from the alumina, road construction and oil sectors, with moderate growth across other key industries, despite a projected contraction in the flue gas desulfurization (FGD) segment by 2023.

Output of quicklime projected to decline, while hydrating lime is expected to grow Between 2018 and 2023, over 70 percent of lime production is projected to be accounted for by quicklime, followed, to a much lesser extent, by hydrating lime and slaked lime. Quicklime production will likely be affected by the new Chinese policies on steel output, and its demand is also projected to drop, while hydrating lime consumption is expected to rise. In terms of consumption, China is projected to account for nearly half of the total lime consumed in 2023, followed by the United States and India, each with a share of under ten percent. China’s foothold on lime consumption is therefore projected to decrease when compared to the estimated data for 2018, in which the country has a share of over half of the total global lime consumption, while its two closest competitors’ shares stand at around five percent.

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By 2023, worldwide demand, excluding China, is projected to be driven by the steel sector, FGD and alumina, followed by the paper and pulp industry.

A steely conundrum As CW Research’s report demonstrates, China is expected to be the largest consumer of lime in the global market by 2023, accounting for around 50 percent of the global demand for the period, with most of the consumption expected to be driven by the aluminum and civil construction sectors. One of the main end-user industries for lime is the steel industry, of which China is the largest global producer. However, the country is cracking down on excess output due to environmental concerns, and enforcing similar measures on the aluminum industry, having shuttered several mills, which the government deemed as “illegal capacity”. In 2018, output for both of these industries is expected to either decrease or grow at a moderate pace, after reaching near-record production levels in the previous years. Lime consumption for these sectors is expected to slow down as well, but remain overly robust, as China’s dominance over these industries in a global context is not likely to be challenged up to 2023.

Global production to expand In 2018, global lime production is estimated at just over 340 million tons, and is projected to reach a volume of around 380 million tons by 2023, with most of the product being outputted in the AsiaPacific region. While Asia-Pacific is projected to remain the main producing region during this period, its market share is expected to contract slightly to around 60 percent from

Lime production by type of lime 2018E-2023F (mm tons)

About the report CW Research’s Global Quicklime, Slaked Lime and Hydraulic Lime Market Report provides an in-depth assessment and outlook for the quicklime, slaked lime and hydraulic lime world market through 2023.

Source: CW Group

the estimated 67 percent for 2018, as other regions’ market shares increase marginally.

Worldwide steel sector to drive lime consumption over the period Europe and CIS and the Americas are projected to remain behind Asia-Pacific, with a similar share of just over ten percent each of the global lime market in terms of production. Africa’s slice is expected to remain under ten percent and Middle East’s not to surpass five percent by 2023.

Conclusions China’s foothold on the global lime market will remain mostly unchanged

over the next half-decade, as its large industrial machine, currently responsible for over half of the world’s consumption of lime, is expected to remain well-oiled and with few changes. Despite its most recent attempts at curbing excess output in highly pollutant industries all around the country, China remains the top producer of key inputs such as steel and aluminum, two of the main sectors with the highest demand for lime. As the country continues to move forward with expansions both at home and abroad, in search of synergies across several sectors, its demand for raw inputs such as lime will only increase as well. However, China’s consumption of lime is expected to remain mostly flat over the next few years, with the largest surges coming instead from developing markets in Asia, Africa, and the Middle East, as their industrial capacities increase, and further investments are made across key sectors.

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The report provides detailed market sizing in a highly quantitative and datarich format to provide reliable and accurate decision support. Key areas such as demand by industry end-user segments, product price dynamics and competitive landscape for major lime markets and worldwide industry are extensively covered. Divided into regional demand (USD and in tons) as well as product segments, the report provides a strategic perspective on the evolution and outlook for the industry, including steel, construction, paper & pulp, mining & minerals, agriculture, petrochemical applications, precipitated carbonate and others.

More information about the report can be found here: https://www.cwgrp. com/research/research-products/ product/273-global-quicklime,slaked-lime-and-hydraulic-limemarket-report-forecast-to-2023

For more information and placing an order, please contact Liviu Dinu, Market Services & Marketing Consultant, CW Group (Europe), by phone at +40-74467-44-11, or e-mail at ld@cwgrp.com.

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FEATURE cw research

Global cement domestic and trade prices to rise in 2Q 2018

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Following a depressed 2017, the first quarter of this year is proving cautiously optimistic for the global cement industry, with factors such as stronger demand and costlier fuel driving cement FOB and ex-works prices up

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FEATURE

t the global level, FOB cement prices increased year-on-year during the first quarter, while exwork prices showed an overall improvement. This trend is attributable to higher demand, costlier fuel, and fluctuations in the US dollar, along with other, more idiosyncratic motives. Still, some wide gaps can be found between markets in different regions, ranging from steep increase in cement prices caused by constrained supply Economic Corridor. India too is enjoying in China to insipient demand a period of higher cement demand owing and rates in Brazil. to rural housing construction and large

Demand has started to recover in Europe, with mounting construction activity

Demand highlights China, where several measures have been taken to reduce cement production capacity, was an exception in the Asian market, with demand falling considerably during the first quarter. To the south, Pakistan witnessed a remarkable increase of 14 percent year-on-year on cement consumption in March alone, thanks in large part to infrastructure development in the framework of the China-Pakistan

August / September MAY/JUNE 2018 2016

infrastructure projects such as roads and irrigation. In South America, the macroeconomic scenario continues to depress cement consumption in Brazil, while Argentinaâ&#x20AC;&#x2122;s cement sector clocks a rapid growth. In the latter, dynamism in both the private and public sectors has contributed to

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a surge of 13.2 percent year-on-year in demand. Producers in the United States have enjoyed strong demand from continuous growth in residential and non-residential construction sectors, which were able to dodge the negative impact of the hurricane season and heavy rain across 2017. The trend was especially accentuated in the southern states and in the West Coast. Meanwhile, demand has started to recover in Europe, with mounting construction activity. To the contrary, the Saudi cement market continues to perform poorly after several quarters of falling demand.

Ex-works Prices Three factors have contributed to an almost universal increase in ex-works cement prices during the first quarter: demand progression, an increase in fuel prices, and the devaluation of the US dollar against other currencies, with different impacts depending on the region.

Regional gray cement export prices

(USD/ton)

Source: CW Research

Fuel prices were determinant for Indian producers, whereas in Europe, local cement prices remained largely unchanged and appeared inflated only when inscribed in US dollars, given the latterâ&#x20AC;&#x2122;s poor performance against the Euro. In Egypt, the stabilization of the

pound also contributed to a sustained increase in prices tagged in dollars. For other markets, demand and capacity were the main predictive factors. Sluggish demand dragged down prices in Brazil, countering the trend in South America,

where prices showed vitality when compared to the same period last year. In Saudi Arabia, prices seemed to have had a small rebound after hovering over the production cost levels, even as demand continues low.

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FEATURE In Algeria and Tunisia, it was an increase in capacity that led to lower prices. Quite the opposite, rising capacity was not enough to hamper prices in Pakistan, as the country continues to experience steep demand growth. Similarly, in Argentina, prices have increased by a double-digit margin both in the local currency and in the US dollar supported by soaring demand. For China, constraints in cement and clinker production in place during the peak season, paired with stable demand and a more competitive landscape, were the force behind a whopping 51-percent year-on-year increase in prices.

FOB Prices Between August 2017 and February 2018, the median FOB cement price increased steadily, eventually reaching USD 65 per ton. Since then, prices have again retreated to an estimated USD 63 per ton. The lowest

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Sluggish demand dragged down prices in Brazil, countering the trend in South America assessed price rebounded from USD 31 per ton in January to USD 32 per ton by the end of the quarter, while the costlier cement assessed reached USD 146 per ton, Global FOB prices for gray cement posted a recovery in the first quarter, after a

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decline in December; this was in spite of lower export volumes during the first quarter, an expected seasonal movement. China remains the largest exporter of cement, accounting for around 12 percent of the global trade, a share expected to decline as the country continues to apply capacity cuts. Japan was the second largest cement exporter, even with a fourpercent fall in traded volumes. Local producers were forced to raise prices over workforce shortages and higher costs with raw materials, coal, electricity, and logistics, thus rendering their products less competitive in the seaborne market. Going forward, FOB cement prices are expected to show an overall improvement, held down by declines in North America and Eastern Europe and the CIS. CW

Global FOB prices for gray cement posed a recovery in the first quarter, after a decline in December Research predicts export prices to average USD 49 per ton in the Asia-Pacific region, propelled by Malaysia and partly displaced Vietnam, India and Japan. For the Mediterranean Basin, CW Research team expects a similar growth

of 0.9 percent in FOB rates, with Spanish producers hiking their prices due to costs with electricity and labor, while Portugal and Turkey are likely to observe price decreases. Finally, in Western Europe, healthy demand – especially in Germany, Austria, and Ireland – will convince producers to focus on domestic demand, hedging FOB rates by 3.9 percent.

Conclusion Overall, cement prices have performed well during the first quarter, with a noticeable 10-percent hike year-on-year in the global average FOB rates and a widespread improvement in ex-works prices, even if partly inflated by the weak US dollar. Demand growth contributed to that trend, along with variations in installed capacity, fuel prices, and exchange rates. Going forward, and with a few exceptions, prices are expected to keep rising.

About the report 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 150+ page report, published on a quarterly basis, serves as the industry go to source for monthly price data for about 60 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.

More information about the report can be found here: http://www.cwgrp. com/research/research-products/ product/1-global-cement-trade-pricereport

For more information and placing an order, please contact Liviu Dinu, Market Services & Marketing Consultant, CW Group (Europe), by phone at +40-74467-44-11, or e-mail at ld@cwgrp.com.

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Country Snapshot: Colombia

cw research

Colombiaâ&#x20AC;&#x2122;s plan to upgrade transportation and boost the cement market

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CW Research analyzes how large-scale infrastructure projects will shape the evolution of the Colombian cement sector through 2023 www.cemweek.com

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Country Snapshot: Colombia

olombia is an emerging economy characterized by inadequate infrastructure. In the forthcoming years, however, cement-intensive projects, such as the emblematic 4G highway plan, are bound to boost the Colombian cement market by increasing demand and fostering a more competitive pricing environment. 4G highway plan to boost domestic cement consumption Having risen at an annual average rate of over two percent over the previous five

The Colombian cement sector is dominated by three major players: Cementos Argos, Cemex, and LafargeHolcim years, cement demand in Colombia is expected to reach 15.3 million tons in the next five. According to CW Researchâ&#x20AC;&#x2122;s 2018

Bogota

COLOMBIA

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Colombia Cement Market Report, this improvement will be more noticeable from 2019 to 2021, when large-scale projects are expected to be in their most cementintensive stages. Colombia is currently undergoing largescale infrastructure projects in order to boost the countryâ&#x20AC;&#x2122;s productivity, often hindered by high transportation costs. The most remarkable one is the 4G highway plan. In development since 2014, it is aimed at constructing and upgrading 11,000 kilometers of highway. This initiative will play an important role in the stimulation of the domestic cement market in the upcoming years. In one hand, it will be one of the main consumption hubs for Colombian cement; on the other, it will allow transportation to become less dangerous and costly. This is expected to spark up an increasingly competitive environment, as producers become more susceptible to pricing competition both internally and from imports. The government is currently focusing on attracting investors for this project under PPP agreements, with 18 out of the 30 highway projects having started construction.

About the report CHART: CEMENT DEMAND (2008-2018)

Source: CW Group

An expanding cement market

The 4G highway plan is aimed at constructing and upgrading 11,000 kilometers of highway

The Colombian cement sector is dominated by three major players: Cementos Argos, Cemex, and LafargeHolcim, which together control 87.7 percent of the cement production capacity in the country. There is currently a total of 21 operational plants, eight of which are grinding units, and the remaining integrated. Domestic cement prices in Colombia have remained stable over the years, as transport costs keep regional markets segmented and competition localized.

The Colombia Cement Market Report, part of CW Researchâ&#x20AC;&#x2122;s Cement Industry Country Report series, meets the country-level cement market research needs of small and large businesses, analysts and governments. The reports cover cement volume trends in detail, analyzing trade flows, cement demand and production (historical and a fiveyear outlook), per capita consumption, and the competitive landscape, including company profiles, cement production facility details, including past and announced brownfield production increases and greenfield projects. Cement Industry Country Reports also cover demand drivers, including macro-economic and construction sector dynamics, for the specific country. Industry reports are presented in an objective, easy-to-understand format, providing hard-to-find answers to top market research questions. More information about the report can be found here: https://www.cwgrp. com/research/research-products/ product/275-cement-market-reportcolombia-forecast-through-2023

For more information and placing an order, please contact Liviu Dinu, Market Services & Marketing Consultant, CW Group (Europe), by phone at +40-74467-44-11, or e-mail at ld@cwgrp.com.

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CEMENT MARKETS

CW Research

Cement Volumes The first quarter of 2018 proved to be a strong quarter for South American economies when compared to the previous year. Economies such as Argentina and Peru are showing signs of an increasing pace in their consumption sectors, while Brazilâ&#x20AC;&#x2122;s cement consumption remained mute, although declining at a slower rate.

In Argentina, continued momentum in public infrastructure and private construction is the main driver behind a 13.2 percent increase on a yearly basis for the first quarter of 2018.

In Argentina, continued momentum in public infrastructure and private construction is the main driver behind a 13.2 percent increase on a yearly basis for the first quarter of 2018. In just the first three months of the year, both cement production and consumption surpassed the 3.0-million-ton mark. Peruvian manufacturers have also recorded positive momentum, driven by reconstruction efforts from the El NiĂąo phenomenon in early 2017, as well as public investment in infrastructure. Imports have continuously recorded a rise over the past year, causing

cement production to drop 0.6 percent over this time period despite positive demand. Poor economic performance and lack of consumer confidence have kept Brazilian cement consumption at bay. In March 2018, cement consumption in Brazil reached 4.4 million tons, 8.4 percent lower than what was recorded in the previous year. In Africa, our two select markets for the region are both recording a contraction in cement demand. In Kenya, political instability coupled with a decline in economic growth are hampering investor confidence, and causing the construction sector to slow down. This has worsened conditions for manufacturers, with further projects coming online expected to contribute to reduced profits. In Morocco, a general decline in construction is being recorded in the major urban centers,

CHART: Year-to-Date Cement Demand (%)

Sources: CW Research

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CW Research CEMENT MARKETS

resulting in a decrease in cement consumption. In the first quarter, cement demand fell 6.9 percent on a yearly basis, reaching 3.3 million tons. In March 2018, the decline was the steepest, falling 15.1 percent when compared to March 2017. In South Asia, both India and Pakistan reported favorable conditions for cement demand and production in the first quarter of the year. In India, cement production rose to 81.8 million tons in the first quarter of the year, 18.2 percent higher than in the previous year. This strong upsurge in demand has caused prices to surge, increasing manufacturersâ&#x20AC;&#x2122; profits. Pakistan reported an 18.9 percent yearly increase when compared to the same quarter in the previous year. Construction activity in the country is being driven by infrastructure developments from the China-Pakistan Economic Corridor. In March 2018, cement

consumption in Pakistan rose 13.5 percent on a yearly basis, reaching 4.2 million tons. In China, cement production has reported a sharp decline in the first quarter, reaching under 400 million tons. Production reduction measures to combat smog and electricity consumption, coupled with a declining demand for cement, have caused the Chinese cement sector to contract. In the future, the Chinese cement market will be characterized by high cement prices, and by an overtime decline in overcapacity. In emerging Asia, cement demand has been rising at fast rates, with both Vietnam and Indonesia reporting higher volumes. In Indonesia, large-scale infrastructure projects are causing cement demand to rise 6.6 percent on a yearly basis when compared to the same quarter in the previous year. In Vietnam, on the other hand, cement production rose 10.4 percent, partly driven by an increase in cement exports.

CHART: Year-to-Date Cement Production (%)

In South Asia, both India and Pakistan reported favorable conditions for cement demand and production in the first quarter of the year.

Sources: CW Research

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August / September MAY/JUNE 2016 2018

DEPARTMENTS

PEOPLE LafargeHolcim appoints new CEO for US cement operations Jamie Gentoso has been appointed the new CEO of US Cement operations. She is a professional engineer that was, until now, vice president of sales and marketing at Construction Specialties. “Jamie has a proven track record in this industry, and her deep-seeded expertise and strong focus on the customer will be valued contributions to LafargeHolcim in the US,” said René Thibault, LafargeHolcim’s executive committee member and region head for North America.

Gentoso will succeed to John Stull, the new CEO of Holcim Philippines. She has a Masters of Business Administration

from the University of Michigan and a Bachelor of Science in Civil Engineering at the same institutions.

Cementir appoints head of the new North American division Recently, Cementir Holding announced the expansion of its stake in Lehigh White Cement Company through Aalborg Cement Company, attaining a majority stake that allows it to directly manage the US company. In light of the acquisition, the holding decided to create a North American Regional division, which will control production and distribution from Lehigh White Cement and the concrete plants of Vianini Pipe. Daniel Harrington was chosen to lead the new division. He formerly served as the president and CEO of Lehigh Hanson North America and as chairperson of the Portland Cement Association.

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PEOPLE China National Building Materials announces retirement of executives

China National Building Materials announced that several senior executives will be stepping down to retirement following the upcoming annual general meeting, scheduled for June 13. The soon-to-be retirees include Song Zhiping, chairperson of the board of directors, Guo Chaomin, director of the company, and Xu Weibing as supervisor and chairperson of the board of supervisors. The company is preparing the election of Peng Jianxin as its new executive director and Xu Weibing, Shen Yungang, and Fan Xiaolu as nonexecutive directors. As part of the company’s merger with Sinoma Corporation, eight senior managers of the latter were appointed vice presidents. Their names are Song Shoushun, Yu Mingqing, Yan Yumin, Su Shi, Yu Kaijun, Xue Zhongmin, Liu Yan, and Liu Biao.

Raysut Cement appoints new manager for Pioneer Cement Oman-based Raysut Cement appointed Ashley Bryan, general manager of Pioneer Cement Industries, a whollyowned subsidiary of the company. He will directly report to Joey Ghose, CEO of Raysut. Bryan has 30 years of experience working for the cement sector. He started his career in 1988 and has since occupied several posts in cement companies across Nigeria, the United Kingdom, and southeast Asia. “I am delighted to be joining the Raysut Group at such an exciting time in the company’s development. The integration of Pioneer and the organizations appetite for business expansion will be priority area of focus for me in my new role. I also look forward to bringing a fresh prospective to Health & Safety, people development and performance improvement,” said Bryan. www.cemweek.com

August / September MAY/JUNE 2016 2018

DEPARTMENTS

EQUIPMENT Loesche supplies new mills to Mexico The German equipment manufacturer is delivering grinding plants for cement makers in Mexico. Loesche sold two coal and petcoke grinding mills to the Mexican cement producer Cooperativa La Cruz Azul. One of the mills will be set in Cruz Azul’s cement plant in the province of Hidalgo, and the other in the Lagunas plant, Oaxaca Province. In both factories, the company is currently setting a new production line.

Claudius Peters delivers cement handling equipment to Lithuania The equipment maker delivered a turnkey silo and a discharge equipment to the private company responsible for Port of Klaipėda. The silo, a Claudius Peters 3300T Conventional Cone measuring 27 meters high and 12.5 meters of diameter, is fitted with a bottom fluidization system and has the capacity to hold 2,700 cubic meters of cement. Claudius Peters also provided a pneumatic conveying system that uses a 450 Claudius Peters X-pump that enables cement to be conveyed for a distance of 205 meters. Klaipėda is the only cargo port in Lithuania and one of the northernmost ones in Europe to be ice-free.

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EQUIPMENT Gebr Pfeiffer installs new MRV mill in South Africa Germany-based equipment maker Gebr Pfeiffer will install a new MVR grinding plant in the city of Port Elizabeth, South Africa. The mill will be operated by Osho Cement, a joint venture with the participation of HeidelbergCement. The MVR 3750 C-4 mill will be the first of its kind installed in South Africa. Gebr Pfeiffer has already supplied the model to suppliers in Algeria, Nigeria, Uganda, and Kenya. The mill is capable of grinding 110 tons of ordinary Portland cement per hour to a Blaine fineness of 3500 cubic centimeters per kilogram and 80 tons of blast-furnace cement per hour to a fineness of 4,500 square centimeters per gram.

ThyssenKrupp to supply equipment for the Ukhta plant, Russia The Ukhta building materials plant is to be refurbished with ThyssenKrupp Industrial equipment. Andrei Sazonov, founder of the Ukhta building materials plant, and Mikhail Kozlov, CEO of Thyssenkrupp Industrial Solutions Russia, signed a RUB 3 billion for the supply of new equipment to the factory. Thirty percent of the funding will be provided by the plant, with 70 percent coming from Sberbank. The deal inked during the Saint Petersburg Economic Forum includes the revamping of a lime production site and the construction of a new kiln with the capacity to produce between 350 and 400 tons per day. Works are expected to be completed until 2020. Ukhta is on track to become a major industrial hub for the production of non-metallic materials, with a precipitated calcium carbonate plant set to open in 2025, three lime kilns to

be commissioned in 2026, and a cement plant to be opened in 2030. In total, the

complex will represent an investment of RUB 18 billion.

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EQUIPMENT Kavkaz Cement launches new monitoring system A new mobile monitoring equipment, based on the use of Near Field Communication tag, has been introduced by Kavkaz Cement, part of EuroCement Group. Around 580 tags that can be read by a mobile device have been set across the factory. The monitoring system is designed to control the equipment functioning at all production divisions of the company and promptly make managerial decisions. By implementing this new system, Kavkaz Cement expects to increase the productivity and service life of the equipment, increase the efficiency of maintenance units, and reduce the cost of manufactured products.

According to Artem Scherbakov, chief engineer at Kavkazcement, the system shortens the time necessary for conducting

diagnostics and eliminating any malfunction that may arise on the cement production lines.

BELAZ supplies dump trucks to Cemex Philippines' quarry

BELAZ is expanding its quarry dump trucks business into the Philippines. The Belarussian automaker will export quarry dump trucks from its factory in Zhodino to the Philippines, expanding the number of countries where its products are present to 78. 46

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With its debut on the Philippine market, BELAZ wishes to establish a foothold in the Pacific Ocean market. According to its management, this deal was made possible by BELAZIA, the dealer representing BELAZ products in southeast Asia since 2011.

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In total, six BELAZ-7555B dump trucks with a payload capacity of 55 tons and equipped with a 709-horsepower Cummins KTTA 19-C engine will be delivered to the Philippines. They will be used to transport limestone for the cement factories of Cemex Philippines.

EQUIPMENT Loesche will deliver cement manufacturing equipment to Bestway Cement.

Loesche delivers four mills to Bestway Cement

Sinoma International Engineering, the company responsible for the modernization of Bestway Cement Company’s Farooqia cement plant, located in the Pakistan province of Punjab, ordered four new mills from Loesche. The German equipment maker – a contractual partner of Sinoma International Engineering – will deliver one raw materials mill, one coal mill, and two clinker mills to the factory. Those include a high-performance 4-roller mill VRM with the capacity to produce 450 tons per hour; two middleperformance range mills with an output of 170 tons per hour capable for grinding clinker to a fineness of 3,200 Blaine; and a large vertical roller mill with the capacity to handle 40 tons per hour and grind coal to a fineness of 10 percent.

Martin Engineering develops high-temp air cannon installation without production shutdown The inventor (and patent-holder) of low-pressure blasting using plant air for improved bulk material handling has announced a new technology for installing air cannons without a processing shutdown. The system allows speciallytrained technicians to mount the units on furnaces, preheaters, clinker coolers and in other high-temperature locations while production continues uninterrupted. Martin Engineering developed the patent-pending Martin® Core GateTM to dramatically reduce expensive downtime associated with traditional installation methods, which require that high-heat processes be halted to allow core drilling and mounting of the cannons. The new system has been paired successfully with the firm’s Smart

NozzleTM Series, a family of air cannon nozzle designs which can be serviced or replaced during production, without removing the cannons themselves. Currently the only technology to safely install air cannons and replace nozzles during production, the specialized equipment and process require no confined space entry. With all installation and service performed from outside the

vessel or process, the Core Gate system also contributes to a safer workplace by minimizing the difficulty and hazards of installation and maintenance. The new Core Gate and Smart Nozzle technologies are expected to find utility in cement manufacturing, coal-fired operations, ash handling and other hightemperature applications.

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August / September MAY/JUNE 2016 2018

Flashback NEWS FLOW IN CEMWEEK.COM LAST TWO MONTHS

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cw Research agenda / reports 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 https://www.cwgrp.com/research/webinars-and-meetings

CW Research meeting agenda include: June 21, 2018

How will seaborne cement trade increase to 150M tons by 2023?

June 28, 2018

Global White Cement Market and Trade â&#x20AC;&#x201C; 2018 Update

July 26, 2018

Cw research newest reportS:

Webinars

Global Cement Trade Prices 2Q 2018

August / September MAY/JUNE 2018 2016

Webinars

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Global Quicklime, Slaked Lime and Hydraulic Lime Market Report

World Cement, Clinker & Slag Sea-Based Trade report

Global White Cement Market and Trade Report

April 2018

May 2018

BUZZ

exports consumption crore

economic

products

slag

ministry

waste

global portland

materials

concrete

exports

growth

imports russia

materials results

investment results

industrial

TOP BMWEEK STORIES activity 1. Vietnam deems imported fly ash safe for use as IRAN a building material 2.

Senegal’s building materials output expands in March 3. Missouri Concrete acquires Mark Twain Redi Mix 4. Italian scientists study posidonia-based cement 5. Seaborne cementitious trade to top 150 million tons by 2023 6. Australia’s construction activity expands lightly in the first quarter 7. Germany booming construction to increase building materials’ sales 8. Malaysia: Construction industry tax rate to decline 9. Australia: Researchers develop new method to prevent building collapse 10. Eurozone construction output improves in March

region economic development

using

large

paid

industrial

power reach

short thermal volume

india

CemWeek Magazine: May/June 2018

Articles inside

World lime market to reach USD 30 billion by 2023

World Sea-Based Trade – The shift from cement to clinker

Colombia’s plan to upgrade transportation and boost the cement market

Q&A with Koen Coppenholle