CemWeek Magazine #51: October 2019 by CemWeek

GLOBAL CEMENT INDUSTRY. KNOWLEDGE.

ISSUE 51

OCTOBER 2019

India The Rise of

A new global cement leader in the making

+ Q&A: The untapped potential of Fly Ash News

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Analysis

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+ Emerging economies boost world cement demand Market Coverage

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Interviews

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People Moves

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Small giants India is onto something. As China scales back cement capacity in order to comply with stringent environmental commitments and optimize production, India emerges as the undisputed leader in terms of capacity expansions, with its additions projected to amount to 100 million tons by 2024. The cards are on the table: recent news point to an increase in cement demand for the December quarter; petroleum coke and international thermal coal prices have fallen by over 20 percent in the past months; and, according to the EIA, the country is likely to raise its annual coal production by 27% each year, paving its way to leading global growth in industrial consumption of coal by 2050. Considered together, the figures point to a country that is taking its industrial fabric seriously, and the cement sector in particular is poised to reflect so. Be sure to read our analysis of the Indian cement industry, and explore the factors that, combined, are enabling it to emerge as a leader among its peers. India is also a key player in the global fly ash market. In this issue, Rishit Dalal, the Director of Projects and International Business at Jaycee, uncovers the untapped potential of the coal combustion by-product, along with challenges preventing the market from expanding further. But this issue is not only about India. Our focus expands to other emerging economies, as global cement demand is bound to be shaped by small, developing markets in the coming years. Because the big picture is always made up of small giants.

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contents FEATURES 4 Leaders Q&A: Rishit Dalal

In an exclusive interview with CemWeek, the Director of Projects and International Business at Jaycee shares his insights on the global fly ash market, from current challenges preventing higher utilization rates to the green potential of the coal combustion by-product.

14 CW Research: Emerging economies boost global cement demand recovery through 2024 As China scales back cement capacity in order to comply with stringent environmental commitments and optimize production, smaller developing markets take center stage to give world cement demand a push 20 Feature: India â&#x20AC;&#x201C; A new global cement leader emerges Cement companies in India continue to expand their capacity as demand for their product increases, paving the way to their leadership in the global cement market. Despite their competitiveness, companies face some challenges in affirming themselves in the global market, as the ongoing trade conflicts sweeping Asian markets pose both opportunities and risks

DEPARTMENTS 1 EdiTor's letter Small giants 26 Departments People Equipment 32 cw group meeting agenda CW Groupâ&#x20AC;&#x2122;s upcoming events 33 BUZZ Top 10 CemWeek, BMWeek and PetcokeWeek stories

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Leaders Q&A

Rishit Dalal

Director of Projects and International Business, Jaycee In an exclusive interview with CemWeek, Rishit Dalal shares his insights on the global fly ash market, from current challenges preventing higher utilization rates to the green potential of the coal combustion by-product. The scope of the interview also includes the role of India in the world fly ash landscape, a topic quite familiar to Dalal since Jaycee is a 30-year-old organization in the building materials industry, and the market leader in fly ash processing and exports from India.

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Leaders Q&A According to official statistics, India produced 196 million tons of fly ash in 2017-18, but only 67% was gainfully utilized. What do you think are the current and upcoming challenges preventing higher fly ash utilization? India is predominantly a coalpower driven economy and Fly Ash (as a by-product of coal combustion) will remain in abundance for the foreseeable future. The overall utilization level of Fly Ash in the country has been below par, because of various challenges. First, there is a demand-supply mismatch wherein many power plants are located far from consumption centers and ports, making it logistically uneconomical to transport or export Fly Ash to consumers. Second, the government has issued various notifications to enhance Fly Ash utilization directing power plants to support and promote ash-based industries, subsidize transportation within a specified radius, mandating various government agencies to increase ash usage, etc. but implementation has been weak resulting in limited impact of such notifications. Moreover, there are no incentives or subsidies on Fly Ash utilization or exports,

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The fly ash industry is highly fragmented and unorganized, with only few players investing capital and focusing on valueadded, quality products which constrain competitiveness relative to substitutes. Third, the Fly Ash industry is highly fragmented and unorganized, with only few players investing capital and focusing on valueadded, quality products that can drive large-scale utilization. This is exacerbated by the fact that coal power plants usually provide only short-term contracts for demand-linked price elasticity. This approach deters serious, long-term investments due to lack of supply security and price stability. All of these factors have prevented higher Fly Ash utilization, and a concerted effort by industry participants, including the government, is needed to create and execute a robust ash utilization strategy.

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How do you assess the environmental impact of unutilized fly ash? Unutilized Fly Ash is dumped into â&#x20AC;&#x2DC;ash-pondsâ&#x20AC;&#x2122;, which play havoc with the environment. They result in significant air quality degradation and toxicity. For example, unutilized Fly Ash contributed to 37% PM10 and 26% PM2.5 in Delhi â&#x20AC;&#x201C; the capital of India. This can cause respiratory diseases, cancer and long-term health hazards such as birth defects and nervous system disorders. Moreover, ash-ponds take away land from productive uses, causing direct economic losses. Heavy metal leaching into the soil prevents agriculture, contaminates ground water and affects flora and fauna. Disposal of unutilized Fly Ash thus has serious economic, environmental and social consequences that must not be ignored.

What are Indiaâ&#x20AC;&#x2122;s main advantages regarding fly ash production as compared to other producing markets? Unlike other ash-producing countries where coal power plants are winding down to comply with carbon emission regulations, India will predominantly have coal power for the next few decades - assuring secure, stable and abundant Fly Ash availability for consumers. Majority of the power plants in India run on singlesource, domestic Indian coal with a high ash content of 30-35%. This produces consistent quality Fly Ash with superior chemical properties (Class-F, siliceous), low LOI < 1% and stable

[Indiaâ&#x20AC;&#x2122;s current fly ash exports] are insignificant and there is large untapped potential

consumption is dependent on proximity of power plants to consumers (mainly cement, concrete, bricks and blocks and value added products), India also has coastal power plants near major ports, from where exports can be done in containers, break bulk and bulk economically.

color. With classification, the fineness can be controlled for various applications. While domestic

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Leaders Q&A Can India turn fly ash into an important export asset? How? India currently exports 800,000900,000 metric tons per year of Fly Ash, mainly to Bangladesh and Middle East, with some volumes going into Asia-Pacific and Africa. As a proportion of the total ash produced, the export volumes are insignificant and there is large untapped potential. Fly Ash exports rely on three main elements - quality, supply chain and price. Power plants with a stable coal source (preferably single-source, domestic Indian coal) produce consistent quality ash with low LOI < 1% and stable color. With classification, this ash becomes superior to all international standards like ASTM C618 Class-F, EN 450 Category S/N, AS/NZS 3582 and GB/T 1596. The right supply chain must be determined for each market - be it containers, break-bulk or bulk. And if the power plant is close to port, the cost can be made globally competitive for exports to happen in large volumes. Indian power plants typically do not invest in ash beneficiation nor do they export directly, so buyers need to work with ash-beneficiation companies that own processing and export facilities. However, it is critical to conduct thorough due diligence of

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Fly ash significantly increases the durability of concrete, increases life of structures and reduces maintenance the exporter - check supply security (long-term agreement with power plant), identify coal source to analyze ash quality, consistency and color stability (domestic Indian coal is recommended), inspect the ash processing and export facilities on ground, check quality certifications like CE, ISO, etc. and importantly, verify the track record, professional team and credibility of the organization. Finally, to give a strong impetus to exports and make it globally competitive, the Government of India must include Fly Ash based products in existing export promotion schemes such as MEIS, Interest Equalization Scheme, Market Access Initiatives and MSME schemes, which is lacking at present.

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What else can the Indian government do to encourage fly ash use not only across the cement industry, but in other sectors as well? In September 2018, the Prime Ministerâ&#x20AC;&#x2122;s Office in India has asked all government agencies to multiply Fly Ash usage by 10 times in a time-bound manner to ensure clean air and minimize adverse impact on the environment. Fly Ash bricks are being made mandatory in all government construction, while Fly Ash use is being mandated in all highway, roads and flyover projects as well as government initiatives such as Smart Cities, etc. A complete ban of clay bricks within a 300 km radius of power plants is also being considered to promote Fly Ash bricks. Furthermore, the Ministry of Power has launched a mobile application named â&#x20AC;&#x2DC;Ashtrackâ&#x20AC;&#x2122; to monitor ash generation and utilization across India. The government has seeded research institutes like Advanced Materials and Process Research

Institute, National Metallurgical Laboratory, National Environmental Engineering Research Institute and National Council for Cement and Building Materials, to develop new-age applications of Fly Ash. There has been significant work done on cement-free green concrete, high volume Fly Ash concrete, coating materials, lightweight aggregates, furniture from hybrid composite materials, ceramics, geopolymers, insulation materials, zeolites and agricultural applications. However, the government must accelerate commercialization of the research work by providing special incentives to Fly Ash based industries, and promoting them through ‘Make-In-India’ and ‘Start-up India’ initiatives. Exports of Fly Ash based products must also be incentivized through inclusion in various export promotion schemes, as it provides an additional avenue for utilization and brings in valuable foreign exchange for the country.

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OCTOBER 2019

Leaders Q&A Fly ash use can implicate longer concrete setting times. Availability of fly ash is also a problem in many regions. How do you think these factors can prove detrimental to the broader use of fly ash in the global construction sector? Fly Ash consists of small, hard, spherical particles rich in silica and alumina. It partially replaces cement in concrete and reacts with free lime to form an additional durable binder named calcium silicate hydrate. The spherical particles have a â&#x20AC;&#x2DC;ball-bearingâ&#x20AC;&#x2122; effect, which increases workability/ flowability of concrete and allows concrete to be produced using less water, with long-term strength gain, higher durability and reduced alkali silica reaction. Optimization of concrete mix design can help users reduce overall cost of concrete (and construction) using Fly Ash. Fly Ash is also responsible for reducing heat of hydration and controlling temperature, which is essential in mass concrete projects like dams. The setting time can be controlled by adjusting

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Robust, costefficient global supply chains will have to be developed to fill the [fly ash] need gap in large markets

the water-cement ratio as well as admixture dosage, and is not a major detriment. Usage of Fly Ash also depends on availability from logistically-economical sources. However, Fly Ash usage is mandated in certain projects purely for its technical advantages, even if it is more expensive from cement. To overcome the problem of domestic availability in many countries worldwide, Fly Ash can be imported from sources like India with cost-optimized supply chains. New technologies are also available to reclaim and beneficiate pond-ash for use in concrete, and Fly Ash is expected to have strong global demand for the foreseeable future.

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What role can fly ash play in rendering the concretemaking process greener? As a by-product of coal combustion, Fly Ash is a sustainable, recycled material and does not require additional energy-intensive processes. It partially replaces cement in concrete, thus saving 0.7-1 ton of CO2 per ton of Fly Ash. According to research, one ton of Fly Ash used saves 4 million Btu of energy and 90 gallons of water. It also reduces water-demand in concrete due to its spherical shape. Furthermore, Fly Ash significantly increases the durability of concrete, increases life of structures and reduces maintenance, consuming significantly lesser resources overall. Thus, it is a very important part of green building/ sustainable construction and is accredited by the US Green Building Council for the LEED certification program.

What are the main factors boosting global fly ash consumption? And what holds it back? Since the construction of Hoover Dam in the 1930â&#x20AC;&#x2122;s, Fly Ash has been an integral part of the global construction industry. Major markets such as North America, Europe, Australia, China and India use Fly Ash in most cement and concrete produced for technical and commercial reasons. Fly Ash being a sustainable, recycled material, is more economical than cement and directly replaces 20-30% (going upto 70%) cement in concrete, thus saving cost. Fly Ash also provides increased long-term strength, durability, workability and reduced heat of hydration, alkali silica reaction, as well as chemical attacks. It reduces water-demand in concrete, and in parallel, increases life of structure. While the technical and commercial advantages of Fly Ash drive global consumption, substitutes like

ground granulated blast furnace slag also impact demand in some markets. Moreover, lower Fly Ash generation due to winding down of coal power plants in North America, Europe and Australia means that Fly Ash will either have to be imported from countries like India where it is available in abundance, or reclaimed from ash-ponds. Robust, cost-efficient global supply chains will have to be developed to fill the need-gap in large markets.

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Leaders Q&A How can transportation issues impact fly ash trade? Being a by-product/ recycled material, the intrinsic value of Fly Ash is low and transportation typically constitutes 3 0 80% of the landed cost of Fly Ash in domestic as well as export markets. Fly Ash transportation over long distances makes it economically unviable, unless specified for technical reasons. Therefore, consumers prefer Fly Ash from the nearest coal power plant or exporting country to keep transportation costs in check. As far as exports are concerned, containerized cargo (with jumbo bags) is economical

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The value-added fly ash products space is looking exciting and we will see some interesting innovations in the time to come

only for some destinations, whereas we need to look at larger break-bulk or bulk shipments for destinations with sailing time of more than 15-20 days. The right mode of packing and transportation is critical in making Fly Ash trade economically viable.

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Scientists from the Nanyang Technological University, Singapore, managed to launch a proof-of-concept for a 3D-printed bathroom using fly ash in less than a day. How can fly ash help boost innovation in the building materials sector? Fly Ash is a unique material, and people are developing newer, innovative applications in the building materials industry using it. Since Fly Ash plays an important role in reducing CO2 emissions, companies

are working on developing â&#x20AC;&#x2DC;Geopolymer Cementâ&#x20AC;&#x2122; using Fly Ash and activators, which can completely replace Portland cement in some applications. There are other companies working on manufacturing bricks, blocks, pavers, pipes and tiles with a very high proportion of Fly Ash (up to 95%); creating light-weight aggregates from Fly Ash; developing specialized fillers for plaster and rubber products; creating hybrid composite materials using Fly Ash to substitute wood; and also extracting rare earth elements from Fly Ash. The value-added Fly Ash products space is looking exciting and we will see some interesting innovations in the time to come.

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OCTOBER 2019

FEATURE

CW RESEARCH

Emerging economies boost global cement demand recovery through 2024 As China scales back cement capacity in order to comply with stringent environmental commitments and optimize production, smaller developing markets take center stage to give world cement demand a push

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FEATURE

orld cement consumption is projected to increase to 4.2 billion tons in 2019, according to CW Research’s 2H2019 update of the Global Cement Volume Forecast Report (GCVFR). The IMF’s July update, which forecasts global economic output to grow over three percent in 2019, coupled with countercyclical measures taken by China and other emerging countries, are the main drivers behind the rising trend.

Middle East remains gloomy; Latin America picks up The evolution of world cement demand is marked by wide discrepancies across regions.

Within the next five years, CW Research forecasts global cement demand to continue growing, albeit modestly.

From an estimated 102 million tons in 2019, cement demand in North America is poised to experience a moderate increase until the end of the year and in the upcoming fiveyear period. The US economy has been growing every month since June 2009, the longest expansion ever recorded. However, the trade war with China and the inversion of the yield curve have created an element of doubt over the short to mid-term scenario and a slowdown in growth should be expected.

“Emerging economies like Bangladesh and the Philippines, with their rapidly growing and urbanizing population, provide the backbone of this year’s increase in global cement consumption through their eagerness to carry out large-scale infrastructure projects, sometimes taking the form of entire cities as in the case of Saudi Arabia’s NEOM City and Egypt’s New Administrative Capital,” assesses Carolina Pereira, Business Analyst at CW Group.

In Western Europe, cement consumption is expected to grow stronger than in 2018 thanks to a turnaround in key markets. Higher housing needs and an improvement in the infrastructure segment managed to pull the German cement sector from a decline of more than half a percent in demand last year to an estimated increase of one percent in 2019. Meanwhile,

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CW Research forecasts global cement demand to continue growing, albeit modestly in Italy, cement demand is projected to continue expanding modestly in 2019. “Advanced economies especially those in Western Europe and North America, are likely to see sustained but moderate levels of cement consumption growth in the coming years as they focus on a much-needed requirement of revamping infrastructure, particularly in the case of the United States” notes Carolina Pereira, Business Analyst at CW Group. In the Middle East, cement demand is projected to decline again in 2019, albeit at a much softer rate than in 2018. After three consecutive

HEATMAP: GLOBAL 2020 YEAR-OVER-YEAR OUTLOO K GROWTH (mm tons)

2020 YoY

Source: CW Research

Asia ex-China is forecast to account for over 40 percent of all capacity additions years of double-digit contractions in cement consumption, Saudi Arabiaâ&#x20AC;&#x2122;s cement sector is expected to witness a softer decline in

2019. Although investment in infrastructure has risen to support the diversification of revenue away from oil, those investments, however, are still tied to oil revenues. Going forward, cement demand in the country is expected to grow marginally in the next five years.

In Latin America, cement consumption continued to contract in 2018, yet not as severely as in the previous year. CW Research expects a rebound in 2019, with demand likely to increase by a timid margin, supported by an improvement of the still-negative scenario in Argentina and a recovery in Brazil. Argentina remains in a dire situation due to hyperinflation and has already called for an intervention by the IMF. Conversely, Brazilâ&#x20AC;&#x2122;s cement demand is finally set to return to growth in 2019, with an expected improvement of three percent.

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FEATURE Asia ex-China’s emerging markets drive world cement capacity World cement capacity is projected to touch 5.8 billion tons by 2024, according to CW Research. In 2019 alone, Asia ex-China is forecast to account for over 40 percent of all capacity additions. “China, with its capacity rationalization efforts that aim to accommodate fewer, yet more modern and efficient, production facilities, is witnessing its contribution to global cement capacity being balanced with additions from India and smaller

India emerges as the undisputed leader regarding capacity additions

Cement production capacity in 2014-2024F (Million tons)

Source: CW Research

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regional players, such as Bangladesh and Vietnam, which are taking over the role of driving capacity growth” observes Carolina Pereira, Business Analyst at CW Group.

India tops capacity additions In the upcoming five-year period, when single markets are considered, India emerges as the undisputed leader, with its capacity additions by 2024 projected to amount to 100 million tons, whereas the Philippines is expected to front world capacity when observing percentage growth. In North America, cement capacity is projected to remain flat in the next

Advanced economies are likely to see sustained but moderate levels of cement consumption growth as they focus on revamping infrastructure five years, as regional players work on improving utilization rates. Canada’s capacity additions are forecast to edge up in 2019-2024, but the United States will continue to hold regional leadership.

Western European markets are also expected to display a downward curve, as modest capacity expansions in France and the UK prove insufficient to offset the declining trend through 2024. In Latin America, cement capacity additions are forecast to rise in the next five years, with Brazil and Mexico starting to pave the way already in 2019. In Brazil, the bulk of capacity expansions will come from CSN Campo Largo’s new plant, with the capacity to produce 3 million tons per annum, and scheduled for commissioning in 2020. In the Middle East, Iran is likely to continue leading cement capacity expansions, accounting for 36% of the regional total, followed by Iraq. The latter will be the stage of a variety of new projects, with the AlMaysarah Group’s announcement of the rehabilitation of Fallujah White Cement for 2020. Meanwhile, Northern Cement and Southern Cement announced the construction of two cement plants.

About the report CW Group’s Global Cement Volume Forecast Report (GCVFR) is a twiceyearly update on projections for cement volumes on a national, regional and global level. The forecast provides global and regional outlooks, as well as detailed perspective on 57 of the world’s most important countries’ cement consumption, production, net trade and cement production capacity. The five-year outlook presented in this benchmark study enables industry professionals to shape their perspective on markets and business priorities. The Global Cement Volume Forecast Report has two updates a year: Extended (October): an extended update (includes briefs on 57 key markets with principal supply-demand impacting drivers and CW Research's analyst market assessments presenting a detailed numerical worldwide analysis, as well as the regional and global supply-demand model). Quantitative update (March): a quantitative update (only includes the numerical sections of the report, not country write-ups).

More information about the report can be found here: https://www.cwgrp. com/research/research-products/ product/12-global-cement-volumeforecast-report

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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OCTOBER 2019

FEATURE

India: A new global cement leader emerges Cement companies in India continue to expand their capacity as demand for their product increases, paving the way to their leadership in the global cement market. Despite their competitiveness, companies face some challenges in affirming themselves in the global market, as the ongoing trade conflicts sweeping Asian markets pose both opportunities and risks.

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FEATURE

ndia has secured its place as the second largest global cement producer, with its capacity reaching 502 million tons in 2018, and being expected to touch close to 550 million tons by 2020, although it remains quite far from Chinaâ&#x20AC;&#x2122;s 3.2 billion tons, according to figures released by the India Brand Equity Foundation. However, as China continues to deploy a capacity rationalization strategy and is focused on shutting down outdated production lines, India, with its expanding output, is in line to catch up to the global leader. Nevertheless, Indiaâ&#x20AC;&#x2122;s current expansion plans do not foresee a surge in capacity up to the Chinese levels in the near to medium term.

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Cement demand is overall strong since India is still developing key infrastructure in order to accommodate a booming population

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As India is still developing key infrastructure in order to accommodate a booming population, and the housing challenges that come with it, cement demand is overall strong, having grown at a strong two-digit pace for most of the past decade. And while growth for the 2020 financial year is expected to be more subdued, it is still forecast to touch a healthy eight percent, as the government resumes construction spending after a decrease caused by the election in April.

A private affair Indiaâ&#x20AC;&#x2122;s cement market is largely in the hands of private companies, which are aiming to expand via consolidation and take over smaller producers, with fourteen acquisitions taking place in the sector in 2017. In 2018, market leader UltraTech also boosted its capacity by fourteen

Chart: Capacity shares of main producers (2019E, %)

Source: CW Research, Global Cement Volume Forecast Report, 2H2019

percent to a total of 100 million tons after acquiring the cement business of Century Textiles and Industries, as part of its aggressive growth strategy, which has consolidated a significant part of the countryâ&#x20AC;&#x2122;s cement industry.

The market is highly competitive, and prices tend to vary wildly across regions, affecting companiesâ&#x20AC;&#x2122; margins, especially as supply is high, and transportation constraints weigh on their profitability. Price volatility is especially strong during the monsoon season, when construction activity is hindered by strong rains. Currently, prices are stronger in the North and South, as

the government has resumed key infrastructure projects in the area, but in the East and Central regions, more allocations of housing units under government programs should incentivize further growth in the construction sector as well. Meanwhile, manufacturers have also begun to grow their business overseas by exporting to nearby foreign markets, with neighboring countries in particular such as Bangladesh, Sri Lanka and Nepal

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FEATURE proving good offloading opportunities for companies seeking to secure new growth. Other popular export markets are located within Asia, Africa’s East Coast and the Middle East, the latter of which has also become a preferred place of investment, the United Arab Emirates in particular, with UltraTech acquiring a cement plant there after its acquisition of Binani, and JSW Cement considering an investment in the area.

The market is highly competitive, and prices tend to vary wildly across regions, affecting companies’ margins

In order to continue to perform positively and see their market share expand not only in India but in other markets, companies face many challenges, but the overall base for growth is laid down, and just needs to be appropriately taken advantage of. Salient statistics

2019E

'19E YoY

'14-'19 CAGR

2024F

'19-'24 CAGR

Population (mn) GDP (bn nat’l currency) Source: CW Research, Global Cement Volume Forecast Report 2H2019

Challenges to growth The most pressing issues begin at the manufacturing process stage, as prices of fuel and some raw materials are higher than some of India’s neighbors, while capacity utilization is, on average, low. The manufacturers mainly use coal and petcoke or fuel oil to power their operations, although the logistics costs severely weigh in on plants more located to the interior of the country. One of the largest obstacles to overcome is tied to the procurement of these materials, as the domestic coal supply faces many constraints due to the high demand and logistics issues, especially as this is mostly handled by the state, with very little openings for private companies.

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And while some benefit from captive coal mines, thus able to mine and provide their own fuel, others rely on imported coal, a commodity whose price is highly volatile. Petcoke supplies are also mostly acquired from foreign sellers, due to the tight domestic supply, with many manufacturers preferring this fuel due to its favorable pricing and high calorific content, but governmental authorities have banned it in certain areas as it is more polluting when compared with coal.

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India’s transport network poses a large problem for suppliers as well, either for domestic shipments or foreign ones, as railways tend to be packed, roads are in need of maintenance and expansion into some areas, and the port infrastructure is also lacking both in volume and quality. However, the government is currently investing in these segments, with improvements expected in the following decade. While many of the concerns can be addressed by the companies, the export outlook is currently severely weighted towards the

downside due to the many trade conflicts or political tensions around the region, which could be a source of further challenges for the industry, or even opportunities.

An emerging titan By far, one of India’s main boosts for growth is its sheer size, both in geographic and demographic terms. Estimated to surpass China as the most populated country by the end of the century, and to reach a population of 9.7 billion people in 2050, India’s government has an ongoing effort to develop more infrastructure

The most pressing issues begin at the manufacturing process stage and housing in order to accommodate the needs of its booming people, especially as it is still working on key infrastructure such as power and water supply in many of its states. This is expected to continue to fuel cement demand in the coming decades, providing a strong incentive for companies to expand their capacity in order to meet these needs, and to make their pricing as competitive as possible with other manufacturers in the region, which are currently looking to make way in the Indian market for their cheaper products. The country’s proximity to emerging markets is a boon to the industry as well, as India’s products are well priced to supply infrastructure construction in countries such as Sri Lanka and Nepal, which currently are the two highest importers of Indian cement. C e m e n t products made in India are typically blended with industrial byproducts and waste such as granulated slag and fly ash, making them more

environmentally friendly. Demand for these types of products is growing in advanced economies, making it a possible market for India’s manufacturers in the future.

Conclusion India’s emergence into a developed economy and global power over the next decades, if its growth stays in line with analysts’ expectations, is the main catalyst for the cement industry’s growth, as the overall needs call for a revamp of the country’s infrastructure. If India’s expansion proves to be as booming as China’s, then its industry could even surpass the top cement producer. While challenges for the future are mounting, the cement industry’s current placement is on the growth path. The government’s many infrastructure projects and housing programs, the continuing development of the transport network and improvement of logistics are the main points of growth in the next few years, while the outlook for fuel and raw materials supply, as well as the ongoing trade tensions, is muddled. However, the government is currently expanding its coal operations and attributing more mines to companies in order to help them meet their energy needs, helping to offset the existing gap. As for the trade tensions, India could stand to benefit from surfacing rivalries between powers such as China and the US or South Korea and Japan shunning products from these markets and becoming more open to imports from other countries.

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OCTOBER 2019

DEPARTMENTS

PEOPLE LafargeHolcim welcomes new Chief Data Officer LafargeHolcim announced that Anurag Harsh was joining the company as their new Chief Data Officer. ”He will help our operating units to boost commercial effectiveness, optimize logistics, increase manufacturing efficiency, and to improve jobsite safety and product sustainability,” stated the company on the LinkedIn release. The hiring of Harsh is tied to the company’s Industry 4.0 four year plan, with LafargeHolcim expecting to launch the “Plants of Tomorrow”. Solomon Baumgartner Aviles, Global Head Cement Manufacturing for LafargeHolcim,

said: “Transforming the way we produce cement is one of the focus areas of our digitalization strategy and the ‘Plants of Tomorrow’ initiative will turn Industry 4.0 into reality at our plants. These innovative solutions make cement

production safer, more efficient and environmentally fit. We are moving to fully data-driven operations in order to support further profitable growth as part of our Strategy 2022 – ‘Building for Growth’.”

Turkey’s Cement Manufacturers Association elects new president The Cement Manufacturers Association of Turkey has appointed Dr. Tamer Saka as its new president on August 26. Saka served as the Chairman of the Board for the Association since the beginning of July. He also serves as Sabanci Holding’s Cement group president.

OCTOBER 2019

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Tamer Saka said: “I would like to thank Mr. Nihat Özdemir, our previous Speaker of the Assembly and our esteemed elder, for the works he has carried out in our parliament to this day. TOBB Turkey with Cement and Cement Products Parliament Speaker task I would be very happy to work with you. I thank you all again.”

PEOPLE Crown Cement Group welcomes new CEO Md Mukter Hossain Talukder was appointed the chief executive officer of the Crown Cement Group. He previously worked as the group’s chief operating officer, and also served the Aman Group, Rangs Group and the Social Marketing Company in key positions. He obtained a master’s degree on accounting and information science from the university of Dhaka. He is also a fellow chartered accountant of the Institute of Chartered Accountants of Bangladesh.

KHD joins World Cement Association The World Cement Association announced it has further expanded its international network of members by welcoming KHD Humboldt Wedag International AG (“KHD”), a global leader in cement plant technology and equipment, as an Associate Corporate Member. “In a globalised world, we can only tackle the big challenges facing the cement industry, like climate change, together, so it’s great to be working alongside an organisation as respected as KHD,” said Vincent Lefebvre, Chairman of the World Cement Association. “We’re delighted to welcome KHD to our membership and look forward to their expert contribution to the work of our Technology and Innovation professional committee”. With its range of Clean Technology solutions, KHD is driving innovation in energy-efficient and environmentally-friendly products for the grinding and pyro-processing sections of cement plants.

The technology-focused group has been a technical leader for many years with innovations from the world’s first pre-heater tower to energy-efficient grinding systems. KHD is an industry leader in calcining technology with low NOX burners calciners with the ability to use a wide range of alternative fuels. “The potential for environmentallyfriendly technologies in the cement industry is huge, and we’re always looking to enhance our thinking,

share expertise and collaborate with others, which is why we’re so pleased to be joining WCA, the leading international cement association active in promoting clean technology” said Mario Zhu, CEO of KHD. The 160-year-old company is based in Cologne, Germany, and has over 650 employees worldwide, including in growing markets like India, China, Turkey, and Russia, as well as in Europe, and the USA.

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OCTOBER 2019

DEPARTMENTS

EQUIPMENT Votorantim installs new Artificial Intelligence system Votorantim Cimentos has recently installed a new Artificial Intelligence (AI) system, called Project Spectrum, to monitor and understand the behavior of the main cement producing equipment. The company said this allows it to keep a 100-percent online monitoring of its main assets, such as kilns, mills, reducers and elevators, through a series of sensors installed in the machines and connected in a system with technology of analysis that helps to forecast any setbacks to the equipment.

also allows the system to bring up indicatives for precision and preventive maintenance of each equipment, cutting down on downtime and repair costs.

The main variables being monitored are temperature, vibration, current, pressure, and other signs. It

The system was first deployed last year in the plants of Salto de Pirapora and Rio Branco do Sul, and allowed

the company to identify 51 cases to avoid unexpected stoppages, and saving BRL 1 million. The company aims to extend the system to 100 percent of its plants in Brazil over 2019 and 2020, as well as to its units in Europe, Asia and Africa.

Gebr. Pfeiffer supplying mill for Cemex in the Philippines Gebr. Pfeiffer announced it will supply an MVR mill for cement raw material grinding in the Philippines This contract for a Cemex works in the Antipolo region includes the supply of an MPS mill for the grinding of coal. The order was received through a Chinese general contractor.

OCTOBER 2019

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EQUIPMENT Gebr. Pfeiffer supplying equipment to Sri Lankan unit Most of the components of the grinding plants, be it mechanical or electrical, will be supplied by the Indian subsidiary, Gebr. Pfeiffer (India). The core components of the mills, like for instance the grinding rollers, the tension systems and the gear units, will come from Europe. Besides the equipment supplies, Gebr. Pfeiffer (India) will also provide the entire engineering for the grinding plants and make available staff to support and supervise the erection and commissioning and assist with the performance test.

Gebr. Pfeiffer reported it will supply two MVR 5000 C-4 roller mills for the production of various cement types based on clinker, gypsum, granulated blast-furnace slag and fly ash to Sri Lanka. The customer, Lanwa Sanstha Cement Corporation (Private) Ltd.,

belongs to the ONYX Group mainly operating in Sri Lanka and the United Arab Emirates. The contract was signed in February 2019. Both the building volume and the footprint of the grinding plants to be set up in a closed building are kept to a minimum.

The two grinding plants, each coming equipped with an MVR 5000 C-4 producing about 180 t/h of OPC ground to a fineness of 4000 cmÂ˛/g acc. to Blaine, will be set up at staggered intervals. Delivery of the first plant is slated for the end of this year and scheduled to go onstream in the 2nd quarter of 2020.

Achinsky Cement acquires new cement trucks Achinsky Cement has acquired three new cement trucks to increase the volume of centralized delivery of non-stocked cement. The newly acquired equipment consists of three IVECO Stralis AT440S48 truck-mounted tractors made in Europe and Russian semitrailers with a SESPEL SF3U32 aluminum barrel. The machines have already been put to use. Investments in the fleetâ&#x20AC;&#x2122;s expansion reached RUB 31 million, with the exception of the leasing cost, and this will also allow the company

to become more independent regarding its transport needs, and

to avoid any supply issues during the high season.

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OCTOBER 2019

EQUIPMENT FLSmidth supplies dual line of white and gray cement to Saudi Arabia According to the equipment supplier, Saudi Arabia-based Alsafwa Cement Company is converting to a dual white and grey cement line, aiming to begin production in early 2020. This will involve the cost-effective modification of existing equipment to create a dual white and grey cement production facility. With the modified kiln expected to be commissioned in early 2020, the production objectives are to produce a minimum of 2000 tons per day (tpd) white clinker with a maximum heat consumption of 1380 kcal/kg clinker. FLSmidth’s Duoflex Burner is a central element in white cement production, and the conversion project involves installing this burner inside the kiln.

Mr. Omar Rabia, Sales Manager at FLSmidth, explains that the approach taken at Alsafwa is a proven concept on several levels: “There is no doubt that in conversions such as this at Alsafwa Cement Company, our customers need to see a clear business case. With our Duoflex Burner and by reusing existing equipment, we not only ensure a

faster return on investment, but we also reduce future operations costs when production commences with the modified kiln.” The conversion of an existing grey cement line at Alsafwa Cement to a dual process line for white and grey cement includes modifying the kiln and preheater sections.

Loesche to deliver coal grinding plants for Cementos y Concretos Nacionales, Mexico At the Hidalgo plant, which has a production capacity of 3 million tons of cement per year, in the future not only the new line, but also all existing kiln lines will be supplied with ground pet coke from the LOESCHE mill.

In 2018, LOESCHE sold two coal grinding plants of one of the largest coal-mill types, type LM 41.4 D, for grinding petroleum coke to the Cooperativa La Cruz Azul group, which holds Cementos y Concretos Nacionales. These coal mills are to be used in two more of the client's 30

OCTOBER 2019

plants: in the Hidalgo province, 80 km north of Mexico City, and in the Lagunas plant in the Oaxaca province in southern Mexico. Cooperativa La Cruz Azul is establishing a new cement production line in each of the plants.

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In addition to the mill with a capacity of 50-65 t/h, LOESCHE will also supply process gas filters, mill fans, inertization units, explosion flaps, cyclone separators, conveyor augers and drag chain conveyors as well as the complete electrotechnical equipment. The scope of supply also includes the complete detail engineering for the steel and concrete construction. The equipment has already been fully dispatched. Installation is planned to start in December 2019 in Hidalgo. Installation of the grinding plant in Lagunas will start in July 2019.

Brazilian companies partnering to develop equipment that detects anomalies in cement

Repsol Sinopec Brazil, Ouro Negro and the Mechanical Engineering Department of PUC-Rio’s Technical and Scientific Center are expanding their technology partnership, and aim to develop a profiling tool to assess cement quality in lined wells through tubing logging. “The proposal is to have a tool that enables the detection of cement anomalies in the adjacent layer and not only in the layer closest to the tool, as occurs in the case of solutions that are currently available in the marketplace, thus avoiding the removal of the

production tubing to perform this operation,” said Támara García, Research and Innovation Manager at Repsol Sinopec Brazil. Eduardo Costa, CEO of Ouro Negro, added: “The idea is to incorporate TTilt in the future into the Wellrobot, thus making the system even more autonomous. This will reduce the need for well interventions, with their high costs and impacts. “This is because the robot is permanently installed in the well, continuously analyzing and passing the data on to the FPSO topside, to a ROV or even to an AUV that is passing

through the area to collect data,” the executive explained. “The TTilt on its own would be extremely disruptive. However, its incorporation into the Wellrobot and all these other possibilities would take this disruption to a currently unimaginable, albeit perfectly possible, level,” García said. “The potential in both well abandonment and interventions is enormous,” added García, saying that the new tool will feature a more powerful vision that can go beyond a single wall.

Remote Monitored Systems installing equipment at Tarmac’s cement plant GyroMetric Systems, in which Remote Monitored Systems has a 58% shareholding, has signed an agreement to install digital monitoring equipment on a critical drive at Tarmac’s Tunstead Cement Plant. The equipment aims to improve the efficiency of the company’s Tunstead Cement Plant, in the UK, by measuring gearbox wear, vibration and shaft alignment. The new equipment will indicate problems earlier for the company to

intervene before having to halt the drive, which transports limestone

to the rock crushing mills.

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OCTOBER 2019

Flashback NEWS FLOW IN CEMWEEK.COM LAST TWO MONTHS

Russia 21 articles

Spain 10 articles

United States 24 articles

Turkey 17 articles Pakistan 18 articles

Egypt 48 articles Nigeria 11 articles

Saudi Arabia 17 articles Indonesia 29 articles

Brazil 18 articles

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's meeting agenda includes: October 23, 2019

OCTOBER 2019

Cw Research's newest reportS:

Global Cement Trade Prices 3Q 2019 Webinars

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Global Cement Volume Forecast Report 2H2019

Global Cement Trade Price Report 3Q2019

World Cement Equipment Market and Forecast Report 2020

October 2019

January 2020

BUZZ

Cement prices in China expand mildly

Argentina’s cement consumption inches up in August

Dominican Republic: Cement production, sales rise in 1H2019

Cement and clinker trade prices rise in August

Peru’s cement consumption expands in July

10. Dominican cement industry expects to reach consumption record

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