CemWeek CemWee MAGAZINE
GLOBAL CEMENT INDUSTRY. KNOWLEDGE.
JUNE / JULY 2013
CemWee CemWee BMWeek Carbon Capture & Storage
Mozambique The rough diamond of South Africa
News
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Analysis
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The Next Giant Step for the Cement Industry
Market Coverage
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People Moves
cbi conference
cement business & industry india & south asia October 9-10, 2013 • Hilton Mumbai International Airport Hotel • Mumbai, India CBI India & South Asia 2013 Conference will focus on the various aspects of India’s cement industry from a business growth & investment perspective. Notably, the programme will take a dual-track business and technical approach to the issues around:
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Market perspective, forecast and competitive outlook
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Alternative fuels, new business models
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Environmental performance management
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Finance and capital markets
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Coal as mainstay fuel option and outlook
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Efficiency, innovation, new developments
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Technology, operations and best practices
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Organized by GMI Global and again with the great support from the India Cement & Construction Materials (ICCM) journal the event is expected to bring together more than 200 cement and lime professionals. GMI is excited to build on the success of CBI India 2012 to expand the scope to include participants from the entire South Asia region this time around.
Register on-line at www.gmiforum.com or email sales@gmiforum.com. You may also call us in the US at +1-203-516-7424 supported by
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Letter from the publisher and editor
Improving beyond today. reen shoots of improvement may be starting to emerge on a wider scale around the planet. But even while the main focus in these markets may be on optimizing the core franchise, some are looking beyond. In this issue of the CemWeek Magazine, we take a look at two aspects in particular: the exciting (even if not yet fully certain) prospects of carbon capture and the ever-present need to improve logistics with a case example from Holcim-controlled ACC in India. But one market that has not had to suffer the waning demand that many developed economies did, is Mozambique in southeastern Africa. The CW Group’s Research & Analytics team shares some highlights about this market from their recently published market research report. Additionally, CW Group’s Research & Analytics provides a snapshot of the international Cement and CemEnergy segments as a recurring viewpoint in the eponymous section. Be sure to also take a look at the CW Group upcoming meetings to see if we can meet in person or virtually in the next few months. Our regularly scheduled webinars are an excellent way to share some ideas and get a conversation started – always feel free to contact our consultants and analysts about these topics. Additionally, the CW Group will take part of several industry events over the coming months, including Cement Business & industry India 2013 and Solid Fuels Summit India 2013, both hosted in Mumbai on October 9-10, and 8-9, respectively. We hope to meet you there!
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CONTENTS FEATURES 6 Carbon capture projects in the cement industry The Next Giant Step for the Cement Industry 12 Leaders Q&A with India’s ACC Achieving logistics excellence
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16 Mozambique The rough diamond of South Africa
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12 DEPARTMENTS EDITOR’S LETTER 1 Improving beyond today
34 Americas 38 Asia Pacific
Numbers in Brief 4 Cement Equipment Order Intake Index Slides
From our Industry Partner 40 Building materials update
Research 20 Official Prices 22 Coal market update 23 Energy price update 26 Tables Page regional Reports 28 Europe, Middle East & Africa 32 Central and Southeast Asia
Projects & People 43 People on the move 44 Equipment & notable projects CW Group Meeting Agenda 46 CW Group’s upcoming events
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NUMBERS
IN BRIEF
Indices plummet in first quarter of 2013 Equipment companies experienced a steep decline in order intake during the first quarter of 2013, as orders were still affected by the weak situation in some markets and uncertainty about the future performance of the industry. CEMENT EQUIPMENT ORDER INTAKE INDEX The CEOI dropped 70 percent and 82 percent in the first quarter of 2013, compared to the last quarter of 2012 and the first quarter of 2012, respectively. The slide is mostly attributed to a lack of large orders during the period, since cement customers remain indecisive about expansions and new greenfield plants under the current environment. The most active countries in terms of new capacity are still located in South America, sub-Saharan Africa and Asia, where infrastructure projects continue to boost cement demand. CEMENT EQUIPMENT ORDER INTAKE INDEX (CEOI)
100
0
Q4 2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Source: CW Group Research
200
CEMENT EQUIPMENT ORDER BACKLOG INDEX The Cement Equipment Order Backlog Index (CEOB) moved to the 93 level in the first quarter of 2013, down 16 percent from the second quarter of 2012. The index continues to follow a downward trend that started in the second quarter of 2012; however, equipment supplier expectations remain positive. Companies are counting on cement demand growth from developing regions to support a strong order intake and an increase in order backlog in 2013, but tough competition and hard market conditions will remain in the short term. CEMENT EQUIPMENT ORDER BACKLOG INDEX (CEOB)
100
80
4
Q4 2009
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Q1 2010
Q2 2010
Q3 2010
Q4 2010
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Q1 2011
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Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Source: CW Group Research
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Carbon Capture &
Storage
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The Next Giant Step for the Cement Industry As global development surges on, the rapid deterioration of the environment has become a major concern in every part of the world. And carbon dioxide (CO2) emissions have been recognized as the primary culprit in climate change.
Brevik Cement Plant, Norway Norcem is working with Norway’s Aker Solutions and RTI International on a carbon capture pilot project at the Brevik cement plant Courtesy of Norcem, HeidelberCement Group. Norway.
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FEATURE
Š 2013 Aker Solutions
D
uring the past decades, the world has seen a rapid increase in carbon dioxide emissions, and the most recent statistical reports show that global CO2 continues to rise. Growth is primarily concentrated in the Asia Pacific region, and attributed mostly to emissions in China, Japan and India. Industrialized nations with more access to the latest technology and information have been able to curb growth in carbon dioxide emissions for the past two decades. Although there is no question that the answer lies in energy conservation and alternative fuel sources, technology plays a critical part in finding a real solution to this global issue. As the largest contributors to emissions, energy generators have been one of the first sectors to pursue projects aimed at discovering new technology and methods to reduce CO2 emissions. On the other hand, the U.S. and Europe are currently leading the way in the use of hybrid technology for the transport industry, which is the second largest contributor. Vehicles that run purely on renewable energy sources and electricity may be decades away from commercial distribution, but those that run on a mix of electricity and fuel are gaining popularity. As the technol-
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ogy becomes cheaper and more reliable, it will soon become the standard in the automotive industry. And as the third largest contributor, the manufacturing and construction industries are ensuring that they follow the same commitment as the energy producers in finding ways to minimize, if not totally eliminate, carbon dioxide emissions. Global Cement Industry Active in Reducing CO2 Emissions At the very core of global progress and development is rising infrastructure, and along with increased infrastructure de-
velopment comes increased production of cement. In 2011, world cement production was estimated at 3.6 billon tons, which translated to more than 2 billion tons of CO2 released in the atmosphere from fuels utilized in the production process and the calcination of limestone. So it is no surprise that cement manufacturers have become one of the sectors that more actively pursue reduction of CO2 emissions. Over the past two decades, cement producers were able to reduce CO2 emissions per ton of cementitious material by as
GLOBAL CARBON DIOXIDE EMISSIONS-MILLION TONS OF CO2 20,000
Asia PaciďŹ c
Africa
South & Central America
Middle East
Europe & Eurasia
North America
10,000
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0 1991 Coal Week Coal Week Coal Week
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
Source: BP Statistical Review of World Energy, June 2012
SOURCES OF CO2 EMISSIONS
4% 12.2% 43.9% 18.2%
21.7%
Š 2013 Aker Solutions
Others
much as 16 percent. From 754 kg of CO2 per ton in 1990, the world average has declined to 633 kg per ton in 2010. The reduction was primary attributed to efforts and programs related to (a) energy efficiency, (b) alternative fuel and (c) clinker substitution. However, these efforts will not be sufficient as urbanization in emerging economies is expected to accelerate in the coming decades. Increasing demand and production will soon outpace any progress made by such programs. Carbon Capture and Storage to Substantially Cut Down CO2 Emissions of Cement Sector According to the International Energy Agency (IEA), in order to meet interna-
tional standards, the cement industry will need to cut down its CO2 emissions by approximately 18 percent from current levels by 2050. With the cement sector currently accounting for 5 percent of global CO2 emissions, the only way to achieve this goal would be the use of Carbon Capture and Storage (CCS) technology in cement production worldwide. By 2050, the IEA’s vision is to have 50 percent of cement plants in North America, Europe, Australia and East Asia using CCS technology, while a somewhat lower adoption rate of 20 percent is targeted in China and India. CCS technology involves capturing waste carbon dioxide from large sources such as power plants, transporting it to a storage site and eventually depositing it
Fuel Combustion for Other Uses Industries Transport Energy Generation
Source: www.oica.com
where it cannot have any impact on the atmosphere. The sequestered CO2 is normally injected in geological formations to serve various purposes such as enhanced oil recovery. There are three types of technology for carbon sequestration that are currently under study: pre-combustion, post-combustion and oxyfuel combustion. For cement production, only postcombustion and oxyfuel combustion are possible options for carbon capture.
CEMENT INDUSTRY - AVERAGE NET KG OF CO2 PER TON OF CEMENTITIOUS MATERIAL South America ex. Brazil CIS
China
North America Central America
Middle East
Japan Aus NZ
Brazil
India
Asia ex. China, India, CIS and Japan
Europe Africa
1,000
500
0
1990
2000
2005
2010
Souce: World Business Council for Sustainable DevelopmentBMWeek - Cement Sustainability Initiative CW Group CemWeek JUNE / JULY 2013
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FEATURE Post-combustion carbon capture involves the use of either chemical absorption or membrane technology, and these will not require major changes to the kiln-burning process. Post-combustion technology is possible for new kilns as well as for retrofits and has the potential ability to capture about 77 percent of CO2 exhaust gases. Aside from higher capital costs, a cement plant with post-combustion technology is likewise estimated to consume more energy to capture and compress the CO2. Below is a table indicating the comparative costs of cement plants with postcombustion technology using chemical absorption (MEA-based solvents). The European scenario is based on a 1 million ton per year plant while the Asian developing country scenario is based on a 3 million ton per year plant. Costs of transport and storage are excluded. On the other hand, oxyfuel combustion technology utilizes oxygen instead of air in cement kilns. It cannot be installed as a retrofit and is only possible as new
build. A new cement plant with oxyfuel technology is expected to incur 25 percent more in investment cost than a traditional cement plant. Oxyfuel combustion is still in its early stages of research and would require more study before it can be considered as a viable option for CCS. The costs of an oxyfuel cement plant using a 1 million ton per year plant for the European scenario and a 3 million ton per year plant for the Asian developing country scenario are provided below. Costs of CO2 transport and storage are excluded. With CCS technology, it is important to emphasize that the transport and storage of the captured CO2 is an essential part of the process and cannot work with mere sequestration technology alone. The captured CO2 will be compressed into liquid form and transported via pipeline or tankers for storage. Thereafter, the CO2 will be injected in depleted oil and gas fields or deep saline aquifer formations. In the process known as Enhanced Oil Recovery (EOR), the CO2 will be inject-
© 2013 Aker Solutions
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ed into porous rocks and bind chemically to the rock over time, keeping natural gas and oil secure underground for years. Pilot Projects for CCS Technology in Cement Production At the moment, there are four pilot activities worldwide that are working on CCS technology for cement plants. 1. Skyonic established a CCS facility at the Capital Aggregates cement mill in the U.S., which focuses on the recycling of CO2 to create sodium bicarbonate or baking soda. They are operating a mobile facility that tests the technology with CO2 captured from a cement plant. 2. Norcem of the Heidelberg Cement Group is working with Norway’s Aker Solutions and RTI International on a $15-million carbon capture pilot project at the Brevik cement plant in Norway. RTI’s post-combustion capture technology was initially intended for coal-fired power plants and will now be tested for the first time on a cement plant. It in-
WITHOUT CCS PARAMETERS Total Investment Cost
WITH POST-COMBUSTION CAPTURE
UNIT
(EUROPEAN SCENARIO)
(EUROPEAN SCENARIO)
(ASIAN DEVELOPING COUNTRY SCENARIO)
€M
263
558
647
Net Variable Operating Costs
€M/y
17
31
97
Fixed Operating Costs
€M/y
19
35
50
Cost per Tonne of CO2 Emissions Avoided
€/t
N/A
107.4
58.8
Cost per Tonne of Cement Product
€/t
65.6
129.4
72.2
Source: IEA GHG (2008) WITHOUT CCS PARAMETERS Total Investment Cost
WITH POST-COMBUSTION CAPTURE
UNIT
(EUROPEAN SCENARIO)
(EUROPEAN SCENARIO)
(ASIAN DEVELOPING COUNTRY SCENARIO)
€M
263
327
N/A
Net Varialble Operating Costs
€M/y
17
23
N/A
Fixed Operating Costs
€M/y
19
23
N/A
Cost per Tonne of CO2 Emissions Avoided
€/t
N/A
42.4
22.9
Cost per Tonne of Cement Product
€/t
65.6
82.5
46.4
Source: IEA GHG (2008)
cludes Alstom’s chilled ammonia process, Alstom’s regenerative carbonate cycle and Aker Clean Carbon’s amine scrubbing. 3. The Industrial Technology Research Institute is currently working with Taiwan Cement to operate a 1 ton per hour pilot scale facility for calcium looping capture. The testing is being performed at the Hualian cement plant in eastern Taiwan. 4. The European Cement Research Academy (ECRA) is now proceeding with Phase IV of its CCS project. This phase of the project will be focused on oxyfuel technology and is expected for completion by 2015.
However, the IEA is determined to adopt CCS into cement production and believes it is now the most viable option for the cement sector. Although it is estimated that CCS technologies will be available no earlier than 2025, the IEA is targeting to have 50 percent of all cement facilities in
OECD countries equipped with CCS technology by 2050. And for countries currently identified as the biggest contributors to CO2 emissions, such as China and India, the IEA’s vision is to have no less than 20 percent of their cement facilities CCSequipped by 2050.
Prospects of CCS in the Cement Industry While these pilot projects are still in their early stages, other efforts to curb CO2 emissions in the cement industry include the production of alternative cement products that produce lower CO2 emissions. These are manufactured using magnesium instead of calcium. © 2013 Aker Solutions
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LEADERS
Q&A
ACC Limited Innovates Logistics Management In March 2012, India’s cement manufacturer ACC Limited, one of the top cement producers in the country, launched an RFIDbased vehicle tracking system called “SPEED” with the objective of developing a new logistics management system that would stimulate efficiency and productivity along with saving on freight costs and reducing the detention time of vehicles at its cement plants.
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assures tracking, access control, identification and better supply chain management. It helps in tracking the item on real-time basis. RFID technology offers several significant advantages over barcodes (which are also capable of supporting automated data capture). Some of these are:
Deepak Gulati ACC
PEED was initially implemented in ACC’s Tikaria plant located in the Amethi district in the state of Uttar Pradesh (U.P.) in northern India. Following the success in Tikaria, the company subsequently adopted the program in two more plants – Damoder Cement Works in West Bengal and Thondabhavi Cement Works in the State of Karnataka. The company plans to roll out the system to all of its 16 plants in two years.
◆◆ Barcodes have to be manually scanned, keeping them close to the reader. An RFID tag, bearing a unique identifier, can be scanned from a much longer distance. ◆◆ RFID tags can hold more data compared to barcodes. ◆◆ Expanded reading range supports quicker reading and faster processing. ◆◆ Facilitates rapid product movement. ◆◆ Continuous data reading, writing, modifying, adding and deleting information possible. ◆◆ Readability of RFID tags is better
in adverse conditions such as dirt and outdoors – it makes an obvious choice for an industry like cement. ◆◆ RFID allows us to measure detention time at each stage of truck loading and thus the utilization of assets within the plant. CW: What was the value creation in terms of overall plant and logistics management? DG: This project has been aptly named SPEED, keeping in mind: ◆◆ Safety of the stakeholders ◆◆ Productivity of the packers ◆◆ Efficient utilization of the assets (trucks) and ◆◆ Ensuring customer ◆◆ Delight And thus the acronym SPEED. ACC’s Tikaria plant loads around 500 trucks of outbound bagged cement per day. Due to this high volume, tracking and knowing the location of the vehi-
This project effectively keeps in mind the safety of the stakeholders, the productivity of the packers and the efficient utilization of the assets
We spoke to ACC’s Logistics DirectorNorth, Mr. Deepak Gulati to learn how the project has helped the company to improve the performance of the distribution fleet and what ACC sees as the biggest logistics challenges the Indian cement industry will face in the future. CW: What technology choices were made and why? Deepak Gulati: We chose RFID (Radio Frequency Identification) technology, which is extensively used in the identification process with the help of a card and a reader. The choice of this technology was obvious – it is a fast emerging nextgen technology that uses radio frequency waves to transfer data between a reader and a moveable item. The technology
SPEED-LED screen displaying delivery details for loader personnel
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LEADERS Q&A
cles at any stage of the loading process was extremely difficult. This project has given the logistics team the functionality to monitor real-time in-plant movement of vehicles and improve the overall safety inside the plant. Another major advantage in terms of logistics management has been the visibility of the trucks. Now, with the help of RFID based tracking, it has become possible for us to filter the seasonal and occasional trucks coming to our plant for loading during lean seasons and instead focus on the dedicated and regular fleet. This has also significantly reduced the pressure on the parking yard infrastructure which can now be better utilized by the dedicated fleet.
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CW: How will this help ACC serve its customers better? DG: ACC treats each of its stakeholders as a very important business partner. The implementation of the ACC SPEED project has given us several benefits and created a win-win situation for both. We have been able to reduce the overall in-plant detention of the vehicles. This in turn has contributed in the faster execution of orders for our customers and channel partners. Dealers/customers can now be kept informed, with a high degree of accuracy, as to when the truck carrying their order is likely to leave the plant, the estimated
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transit time and a forecast of when the consignment is expected to reach destination. Earlier we were not able to project this kind of valuable information with great accuracy. Now our customers can plan their work much better with this valuable input that we are able to provide. CW: Does the project create a competitive advantage for ACC? DG: Yes. This project with its transparent and visible dispatch process is also coupled with other improvements we have implemented, such as enhanced basic amenities for the trucks’ crew members like a new washroom complex, a large cafeteria with television, water coolers and covered cooking area in a now much cleaner parking yard. Thanks to all these
improvements, our Tikaria plant has become the most attractive plant for loading in the area.
Tikaria Cement Plant
More frequent trips now enjoyed by regular and dedicated trucks translates into higher earnings for them. These benefits factored in as a freight advantage with transporters can help make our product more competitive in a highly price-sensitive market. CW: Is the company currently investing in any other logistics-related optimization processes? DG: This project has already been replicated across two more locations of ACC with three more in the pipeline. In order to further strengthen the good logistics practices, the company has already partnered with a leading GPS service provider. In the first phase, 1000 vehicles are planned to be fitted with GPS devices for real-time, out-plant vehicle tracking. In addition, we are also in various stages of testing/piloting a truck scheduler for automated truck/order assignment and a driver/vehicle management center for improving the safety of drivers/vehicles. What are the biggest logistics challenges the Indian cement industry is and will be facing? The major challenges faced by the cement industry today are: ◆◆ Overall rising costs – particularly of fuel, which leads to rising transportation costs. ◆◆ Availability of roadworthy and safeto-ply trucks. ◆◆ Shortage of competent drivers and lesser number opting for driving as a profession. ◆◆ Poor road and safety infrastructure in the country. All the above factors, particularly the availability of competent drivers, will pose the biggest challenge in road transSPEED-LED displaying portation as fewer people now seem inpacking bay number, tare terested to enter this profession as comweight details for drivers pared to alternate areas of employment. BMWeek CemWeek CW Group BMWeek BMWeek
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FEATURE
Mozambique The Rough Diamond Of South-Eastern Africa
The prospects for Mozambique may finally be looking bright as its resource sector has seen an unprecedented boom. The start of coal mining in 2010 and the discovery of significant offshore gas fields have become major springboards for the Mozambican economy. However, the consolidation of the country’s growth depends on its ability to exploit these huge opportunities without hiccups.
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COUNTRY SNAPSHOT Mozambique’s economy expanded 7.5 percent in 2012, concluding two decades of uninterrupted growth that followed the end of the country’s civil war in 1992. The real GDP compound annual growth rate of 7.9 percent registered in the last twenty years is expected to stretch over the next five years, as well. In early 2013, severe floods destroyed crops and damaged infrastructure in southern Mozambique, which led financial institutions to lower their 2013 growth expectation for the country. Notwithstanding positive long-term prospects, Mozambique is still severely constrained by infrastructure bottlenecks that limit the pace of development. Thus, most of the earmarked construction investments focus on the infrastructure segment with large funds pledged for railway modernization. Mozambique is dependent on Foreign Direct Investments (FDI), receiving more than US$5,200 million in 2012. Over the next three years, the amount is projected to exceed US$10 billion, on the basis of annual approval of around 300 projects. Over the past years, Mozambique’s cement industry has been slowly expanding under the aegis of Cimpor. But with a surge in economic activity and predicted impressive growth in cement demand glittering on the horizon, the government awarded a series of cement plant construction licenses. But even so, to date, only one new cement plant has started commercial operations since 2005. Today, Mozambique is home to five production units, four of which owned by Brazil’s InterCement (subsequent to its take-over of Cimpor’s assets in the country). The combined output of these units reached 1.19 million tons in 2012, falling short of the 1.6 million tons of cement consumed domestically.
FOREIGN DIRECT INVESTMENTS IN MOZAMBIQUE (2001–2012)
6,000
YoY Growth
3,000
0%
0
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-100% 2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Source: CW Group Research
APPARENT CEMENT DEMAND & PRODUCTION (2005–2012) - TONS
2,000,000
Cement production Apparent consumption
1,000,000
Even though the cement capacity of the Mozambican cement plants exceeds the country’s cement consumption,
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250%
FDI Inward (US$ million)
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0
2005
Coal Week Coal Week Coal Week
2006
2007
2008
2009
2010
2011
2012 Source: CW Group Research
Mozambique is still dependent on cement imports. Around 27 percent of the country’s cement consumption since 2005 was covered by imports. Operational challenges, financial difficulties and production interruptions are just a few of the hurdles faced by the Mozambican cement producers.
NAMEPLATE CEMENT PRODUCTION CAPACITY (2007–2017E) - TONS
10,000,000 New Capacity
Baseline Capacity
5,000,000
0 2007
2008
2009
2010
2011
2012'
2013E
2014E
2015E
2016E
2017E
Source: CW Group Research
APPARENT DEMAND FORECAST (2005–2017E) - TONS
3,000,000 Apparent consumption
1,750,000
500,000
2005
2006
2007
2008
2009
2010
2011
2012
2013E 2014E 2015E 2016E 2017E Source: CW Group Research
The CW Group highlights another important aspect of Mozambique’s cement sector - “only a fraction of the cement capacity can be produced with domestic clinker. This situation is causing increased dependency on imported clinker, with around 3.23 million tons of clinker imported by Mozambique between 2005 and 2012. Although Mozambique is known for its abundant availability of high-quality limestone, the deposits remain untapped as a result of high logistics costs as well as the limited clinker production capacity of the country.” By 2017 the per capita cement consumption is estimated to cross 100 kg per inhabitant for the first time in its history. Large construction projects, combined with infrastructure and housing deficits, are regarded as the major drivers of the cement industry over the next five years. CW Group concludes: “under the base case scenario, cement consumption is projected to increase by a compound annual growth rate of 10.7 percent between 2012 and 2017. A more optimistic scenario, which assumes a smoother implementation for main construction projects given the presence of established and experienced international companies on the market, predicts a higher CAGR (13.6 percent) that could potentially push the cement demand beyond 3 million tons by the end of 2017.”
This article is a summary of the 43-page indepth market research from CW Analytics. To learn more, contact CW Analytics at sales@cwgrp.com.
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Preliminary June 2013 estimates reveal an upward trend for cement prices
Official Cement Prices Global prices upbeat at the end of H1 2013 India and Pakistan lead the pack in price increase movement After booming in the first two months of 2013, the global official cement prices entered a stabilization phase that lasted for three consecutive months. Preliminary June 2013 estimates reveal an upward trend for cement prices, mostly driven by a sharp increase in South East Asian countries of India and Pakistan. In Pakistan, a 50 kg cement bag was traded for Rs 488.4 in June 2013, 5.45 percent higher versus the previous month, and 10.2 percent over the corresponding month of 2012. As soon as the Federal Budget for 2013 – 2014 was released in mid June by the government, cement producers hurried to announce price increases from Rs 30 to Rs 45 per 50 kg bags of cement, blaming budgetary measures, the elevated transportation costs and retention price as driving forces Before the release of the budget, a goods and services tax (GST) was due only on wholesale prices, but the situation has changed and the GST is currently applied on the retail price. Additionally, the recent implementation of the new axle load limit led transportation costs for both cement and coal on higher grounds. On the positive side, the Pakistani government reduced the withholding tax on dealers to 0.1 percent in a movement predicted to relieve the burden on cement production companies. Corporate tax rate was also reduced from 35 percent to 34 percent with the prospect to reach 30 percent over the next five years. M-O-M CEMENT PRICE COMPARATIVE SET METRICS 1%
Jun-13
May-13
Apr-13
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
-0.4%
Jun-12
0%
May-12
CEMENT MARKETS
CW Research & Analytics CW Group CemWeek BMWeek CemWeek CW Group BMWeek CemWeek BMWeek CW Group CEMENT MARKETS
SOURCE: CW Group Research Group Coal Week CemWeek BMWeek To learn more, please contact the CWCWResearch & Analytics team at sales@cwgrp.com or +1-702-430-1748. CemWeek CW Group Coal Week BMWeek CemWeek BMWeek JUNE / JULY 2013 www.cemweek.com CW Group Coal Week 20
C
In neighboring India, cement prices closed the first half of 2013 at Rs 294 per 50 kg bag, 3.2 percent higher compared to May 2013. After increasing in a range between Rs 5 and Rs 25 in the beginning of June, mostly in the northern, eastern and western India, cement prices reversed the trend and declined between Rs 10 and 20 per 50 kg bag during the last days of the month. Local sources mention an even further price decrease during early July, even though cement companies struggled to keep prices at high levels ahead of the monsoon season.
From an annualized growth rate perspective, Egypt bagged the lion’s part from the price increases reported over the last 12 months - 15.6 percent. An unusual 21.2 percent increase in February 2013 up to LE 676.7 per ton prompted Egypt’s Consumer Protection Agency (CPA) to file a complaint against cement companies accusing them of unfair practices. Market sources argued that the impressive increase was generated by energy shortages and unfavorable exchange rates. In order to counteract energy costs inflation, Egyptian cement companies are currently looking for alternative fuel sources, focusing on switching to coal instead of using gas. More recent data points show that cement prices declined in the beginning of July 2013 to around LE 600 per ton.
CEMENT MARKETS
CW Research & Analytics CemWeek BMWeek BMWeek31 countries CemWeek BMWeekregistered CemWeek cement price increases over the last 12 months
At the other head of the scale, Trinidad and Tobago reported the highest decline in the 12-month annualized growth rate, with -12.3 percent, after a successful market recovery from the mid-2012 production hick-up. After stabilizing in the last 10 months at AED 260 per ton, UAE cement prices also declined on an annualized base to -6.6 percent. The stabilization of the market was obtained on the back of stable evolution of raw materials and freight rates. Taking a rear-view, cement prices have been on a rise in the last 12 months. Price drops were registered in 13 countries out of the 47 included in CW Analytics and Research universe. Three markets were stable, while in the remaining 31 cement prices increased. JULY 2012 - JUNE 2013 GROWTH RATE (%)
0
Trinidad and Tobago* United Arab Emirates Russia Nepal* Australia* Poland Chile Czech Republic Greece Mexico Slovakia France India Cyprus Japan Oman* Sweden Singapore United Kingdom Indonesia Malaysia Canada Tunisia Bolivia Hungary Peru South Africa Haiti El Salvador Germany Belarus United States? Turkey Ecuador Belgium Venezuela Romania Brazil Philippines Serbia Nicaragua Colombia Panama Thailand Pakistan Argentina Egypt
20%
-15% SOURCE: CW Group Research CW Group CemWeek To learn more, please contact the CW Research & Analytics team at sales@cwgrp.com orBMWeek +1-702-430-1748.
JUNE / JULY 2013
CemWeek CW Group BMWeek www.cemweek.com CemWeek BMWeek CW Group
21
Coal W Coal W Coal W
CEMENERGY MARKETS
CW Research & Analytics CW Group CemWeek BMWeek CemWeek CW Group BMWeek CemWeek BMWeek CW Group CEMENT ENERGY MARKETS COAL MARKET UPDATE
Chinese coal imports might be stalled but trading markets still have high expectations for 2013
Coal exports recover in some markets while markets wait for China’s decision on low calorific value coal exports Despite the deceleration in economic growth in China, the top coal importer worldwide, year-to-date coal trading volumes remain flat compared to 2012. Coal trading volumes in the second quarter of 2013 showed a marginal increase from the second quarter of 2012 as declining volumes from Colombia and the United States were offset by an increase in coal exports from Australia and Russia. June 2013 coal output from South Africa’s Richards Bay Coal Terminal (RBCT) rose 22 percent to 5.3 million tons, following a 30 percent decline during May. In Australia, coal shipments out of Newcastle grew 10 percent, recovering from a 9 percent drop in May. Colombian coal exports are back on track after the steep decline in February and March volumes that followed the coal union strike. As a result of the strike year-todate coal exports are 23 percent down from last year. In the United States, the Energy Information Administration (EIA) is expecting coal production to remain relatively stable this year compared to 2012, while coal exports are anticipated to decline to around 100 million tons in 2013. Exports will be mainly affected by increased competition due to low coal prices, the ongoing economic slowdown in Europe and deceleration in some economies in Asia, mainly China.
COAL GLOBAL TRADING (million tons) Rest
100
US
Colombia
South Africa
Russia
Australia
Indonesia
May-13
Apr-13
Feb-13
Mar-13
Dec-12
Jan-13
Oct-12
Nov-12
Sep-12
Jul-12
Aug-12
Jun-12
Apr-12
May-12
Feb-12
Mar-12
Dec-11
Jan-12
Oct-11
Nov-11
Sep-11
Jul-11
Aug-11
Jun-11
Apr-11
May-11
Feb-11
Mar-11
Jan-11
Dec-10
Oct-10
Nov-10
Sep-10
Aug-10
Jul-10
Jun-10
0
May-10
50
SOURCE: CW Group Research Group Coal Week CemWeek BMWeek To learn more, please contact the CWCWResearch & Analytics team at sales@cwgrp.com or +1-702-430-1748. CemWeek CW Group Coal Week BMWeek CemWeek BMWeek JUNE / JULY 2013 www.cemweek.com CW Group Coal Week 22
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CEMENERGY MARKETS
CW Research & Analytics CemWeek BMWeek CemWeek BMWeek CemWeek BMWeek
China’s coal imports have been declining this year as a result of weakening demand in the country. Also, the local industry has seen its sale prices plunge, making imports less attractive to coal buyers and favoring domestic products. Meanwhile, the government is still considering a ban on imported coal with low calorific value, but the proposal has found strong opposition and it is unknown whether the authorities will move on with the ban or not. The ban would have a negative effect on Indonesia, the main supplier of low calorific coal to China. As a response, the Indonesian government has announced the country will be looking for new export markets to divert the volume lost to China.
ENERGY PRICES UPDATE Coal Coal trading prices in the main export hubs declined in May for a second month in a row as a consequence of a still oversupplied market. Australia, Russia and the United States have been the major sources of the additional coal shipped this year and trading volume is not expected to contract anytime soon. Despite cutbacks in production to balance supply and the closure of unprofitable mines in some markets, a number of mining companies have reported an increase in production to maximize output, sacrificing margin over volume. The average Harga Batubara Acuan (HBA) coal price in Indonesia slid 4 percent from April. In Colombia and South Africa, price fell 1 percent versus the previous month. Year-over-year prices are down 16 percent in Indonesia, 14 percent in South Africa, 13 percent in Colombia and 9 percent in Australia and the U.S.
Coal prices mainly unchanged, but trends are mixed
In China, coal prices continue to fall off. The Bohai-rim Steam Coal Price Index (BSPI), which covers six major coal-shipping ports in China, is now 5 percent below the level it had at the end of 2012. STEAM COAL FOB AVERAGE PRICES (US$/TON) South Africa Richards Bay
150
Australia Newcastle
Indonesian HBA
US exported
Colombia exported
90
May-13
Mar-13
Jan-13
Nov-12
Sep-12
Jul-12
May-12
Mar-12
Jan-12
Nov-11
Sep-11
Jul-11
May-11
Mar-11
Jan-11
Nov-10
Sep-10
Jul-10
May-10
Mar-10
Jan-10
Nov-09
Sep-09
Jul-09
May-09
30
SOURCE: CW Group Research CW Group CemWeek To learn more, please contact the CW Research & Analytics team at sales@cwgrp.com orBMWeek +1-702-430-1748.
JUNE / JULY 2013
CemWeek CW Group BMWeek www.cemweek.com CemWeek BMWeek CW Group
23
Coal W Coal W Coal W
CW Group CW Group CW Group
Petcoke The 12-month average price of U.S. uncalcined petcoke for export markets in April remained unchanged for the third consecutive month at US$81 per ton. Prices seem to have stabilized after a long slide that started in the fourth quarter of 2011. The decline has eased in some markets and the price in India, for example, is now at the same level it was a year ago. Compared to 2012, seven out of the top ten export market destinations show signs of price recovery. Only Japan, Canada and South Korea are lagging behind. While prices are bogged down, volumes are on the rise. U.S. petcoke exports soared in April and reached the second-highest petcoke volume exported in U.S. history. Output was boosted by an increase in shipments to China, Canada, The Netherlands and Mexico. April year-to-date exports to The Netherlands more than doubled versus last year and the volume shipped to Mexico is 40% higher over the same period of 2012. US PETCOKE EXPORT PRICE (US$/TON) ROLLING 12-MONTH AVERAGE
120
60
0 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13
CEMENERGY MARKETS
CW Research & Analytics CemWeek BMWeek CemWeek BMWeek Petcoke prices stable and no signs of rebound yet CemWeek BMWeek
SOURCE: CW Group Research Group Coal Week CemWeek BMWeek To learn more, please contact the CWCWResearch & Analytics team at sales@cwgrp.com or +1-702-430-1748. CemWeek CW Group Coal Week BMWeek CemWeek BMWeek JUNE / JULY 2013 www.cemweek.com CW Group Coal Week 24
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CEMENERGY MARKETS
CW Research & Analytics CemWeek BMWeek CemWeek BMWeek CemWeek BMWeek
Natural Gas With oil prices declining from a 12-month high in February 2013 and a soft demand environment, natural gas prices in Europe and liquefied natural gas (LNG) prices in Japan were 5 percent and 2 percent down, respectively, in May compared to April. LNG price in Japan reached its lowest since November 2012, but it is expected to recover as the summer season hits and power consumption goes up. In Europe, even after this month’s slide, price remains at high level, and the average price for the first 5 months of 2013 is 5 percent higher than the same period of 2012. Natural gas demand in Europe is still sluggish but Russia’s Gazprom, the largest gas supplier to European markets, is expecting a 9 percent growth in its deliveries to the region during 2013, following a decline of 7 percent in 2012. Gazprom reported an increase of 5 percent in its export contract pricing during 2012.
In the U.S., Henry Hub spot price has been declining since the beginning of June, after reaching levels over US$4/mmBtu in April and May. Prices are down in most regions except for the Northeast where they rose 10 to 20 percent during the second week of June due to warmer-than-normal temperatures. The heat wave continued to affect west and southwest states through the end of June and the beginning of July, with temperatures hitting triple digits in most locations. Experts are predicting summer 2013 will be among the top 10 warmest on record, which could send natural gas prices back to US$4/mmBtu. However, the U.S. Energy Information Administration (EIA) still maintains its natural gas price forecast for 2013 at around US$3.92/mmBtu.
Extended winter drives rally in US natural gas prices
NATURAL GAS PRICES (US$/MMBTU)
20
Japan LNG
Europe
US
May-13
Sep-12
Jan-12
May-11
Sep-10
Jan-10
May-09
Sep-08
Jan-08
May-07
Sep-06
Jan-06
May-05
Sep-04
Jan-04
May-03
Sep-02
Jan-02
May-01
Sep-00
Jan-00
Sep-98
Jan-98
May-97
0
May-99
10
SOURCE: CW Group Research CW Group CemWeek To learn more, please contact the CW Research & Analytics team at sales@cwgrp.com orBMWeek +1-702-430-1748.
JUNE / JULY 2013
CemWeek CW Group BMWeek www.cemweek.com CemWeek BMWeek CW Group
25
Coal W Coal W Coal W
Cement - Production (million tons) Country
LM
CW Group CW Group CW Group
Cement - Consumption (million tons)
MoM (%)
YoY (%)
YTD
YTD %
Country
LM
MoM (%)
YoY (%)
YTD
YTD %
China (June)
227.5
1%
10%
1,083.7
8%
France (June)
1.9
6%
-10%
9.6
-7%
India (April)
22.5
-7%
13%
89.9
8%
Brazil (June)
5.5
-8%
4%
33.6
2%
US (April)
6.5
14%
0%
21.7
1%
S. Arabia (June)
5.1
-4%
15%
31.4
11%
Russia (April)
5.4
15%
6%
16.6
11%
Spain (May)
1.0
10%
-18%
4.4
-25%
Mexico (April)
3.0
-1%
2%
11.7
-2%
Indonesia (April)
4.5
0%
9%
18.1
9%
Colombia (May)
0.9
5%
1%
4.4
2%
Egypt (March)
3.5
0%
-10%
10.6
-15%
YTD
YTD %
YTD
YTD %
Portland Cement - Exports (million tons)
Portland Cement - Imports (million tons)
Country
LM
MoM (%)
YoY (%)
China (March)
0.8
26%
13%
2.2
Thailand (May)
0.7
13%
4%
3.1
Country
LM
MoM (%)
YoY (%)
38%
US (May)
0%
Malaysia (May)
0.5
-3%
-20%
1.9
6%
0.1
-27%
27%
0.4
25%
Japan (May)
0.4
9%
-28%
2.1
-5%
Canada (March)
0.1
24%
1%
0.2
10%
Korea (May)
0.3
46%
-32%
1.4
16%
France (April)
0.2
16%
-22%
0.7
-21%
Germany (March)
0.3
17%
-21%
0.8
23%
Brazil (May)
0.1
41%
-5%
0.4
38%
Coal - Exports (million tons) Country
Petcoke - Exports (million tons)
LM
MoM (%)
YoY (%)
YTD
YTD %
Indonesia
27.7
3%
-7%
134.5
-3%
Australia
14.0
-5%
9%
70.4
10%
US
7.8
-12%
-30%
45.5
-6%
Petcoke - Global export prices (USD/ton) Country
Colombia
7.1
17%
-13%
25.6
-23%
South Africa
4.8
-30%
-7%
30.9
0%
2%
Country
LM
MoM (%)
YoY (%)
YTD
YTD %
US
2.9
23%
10%
9.7
1%
US
LM
MoM (%)
YoY (%)
YTD
YTD %
78.5
-6%
-5%
79.9
1%
Natural Gas Prices (US$/mmBtu)
COAL EXPORTS MoM (%) Colombia
South Africa US
Australia
Indonesia
Country
LM
MoM (%)
YoY (%)
YTD
YTD %
Japan
15.3
-2%
-11%
15.9
-4%
Europe
12.3
-5%
6%
12.1
5%
US
4.0
-3%
66%
3.7
59%
NATURAL GAS PRICES MoM (%) 60%
0%
US
Europe
Japan
Apr-13
May-13 May-13
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
Jun-12
COAL EXPORT PRICES MoM (%)
Australia
93.7
0%
-9%
97.3
-16%
US
74.4
0%
-9%
76.4
-12%
Colombia
83.8
-1%
-13%
86.6
-12%
South Africa
81.1
-1%
-14%
83.6
-18%
South Africa
10%
Colombia
US
Indonesia
Australia
0% -10%
Source: CW Group Research LM: latest month (June where not specified); month vs previous YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year CW Groupmonth; Coal Week CemWeek BMWeek MoM: CemWeek CW Group Coal Week BMWeek CemWeek JUNE / JULY 2013CW Group Coal Week www.cemweek.com BMWeek
Mar-13
-19%
Feb-13
88.0
Jan-13
-16%
Dec-12
-4%
Nov-12
85.3
Oct-12
Indonesia
Sep-12
YTD %
Aug-12
YTD
Jul-12
YoY (%)
Jun-12
MoM (%)
May-12
LM
26
Apr-13
Coal - Global export prices (USD/ton) Country
-30%
May-12
May-13
Apr-13
Mar-13
Feb-13
Dec-12
Jan-13
Nov-12
Oct-12
Sep-12
Aug-12
Jul-12
0%
Jun-12
-1%
May-12
CEMENERGY MARKETS
CW Research & Analytics CemWeek BMWeek CemWeek BMWeek CemWeek BMWeek
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REGIONAL REPORT: center (production capacity 0.6 million tons). The venture will utilize a system based on the external supply of raw materials concept. The French firm Vicat has started trial production of Alpenat cement, a new product with 30 percent lower CO2 emissions in manufacturing. In New Caledonia, Holcim will sell its 0.2-million-tons operations, Holcim Nouvelle CalĂŠdonie, to Tokuyama Corporation of Japan. Holcim aims to increase operating profit by CHF 1.5 billion between 2011 and 2014.
EUROPE Tough economic times continue for the Spanish cement market, which has fallen 24 percent in 2013 on reduced public spending and is predicted to finish the year down 21 percent from 2012. Market predictions suggest that the market will stabilize at 20-25 million tons of consumption next year. Holcim in Spain will cut 75 percent (568 million euros) of its capital expenditures. The struggling Spanish CEMEX branch has sold its Sant Feliu de Llobregat, Catalonia, unit to Cementos Molins. The Italian cement market has a similarly poor outlook, with production volumes halved in the past seven years and declines of 20-25 percent predicted for 2013. Production in 2012 decreased 20.8 percent year-over-year to 26.2 million tons, while consumption fell by 22.1 percent. Excess production capacity is estimated at 40-50 percent. The Italian firms Cementir and Italcementi have announced closures and worker layoffs, spurring protests. Italcementi is moving ahead with a restructuring plan intended to boost efficiency from 60 million to 100 million euros. In France, Holcim is venturing into the western portion of the country. Western
Oversupply of European cement has boosted imports into Belgium. Market watchers expect a loss of 8 percent in cement consumption in Belgium in 2013. In Switzerland, Holcim’s Siggenthal unit has begun using lignite to power its kiln, importing 1,500 tons of fuel per week via freight train. Since the fuel comes from Europe, the supply chain is shorter and security higher than for overseas coal.
acquisitions have included Atlantic Cement and the cement import terminal of Montoir-de-Bretagne in Saint-Nazaire. Additionally, Holcim has opened a clinker grinding center in Grand-Couronne, with production capacity of 0.58 million tons, and is set to open a second center on the Port of La Rochelle, also with capacity of 0.58 million tons. Kercim is targeting 10 percent of the western French market with its ultra-modern, US$44 million Saint-Nazaire grinding
select PROJECTS IN THE WORKS: europe, russia and baltic region COMPANY (LOCATION) Holcim/Russia Russia
Table available in the CemWeek Magazine Print Edition.
Kerry Qiefu/Belarus
28
OVERVIEW
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Holcim announced that it will start construction at a new cement plant in Saratov region, Volsk by the end of this year. The company targets to commission the unit late 2015 - early 2016. A new cement plant will rise in the Buinaksk district of Dagestan. The plant will have a capacity of 0.3 million tons per year. Kerry Qiefu grinding plant has undergone initial ignition. Kerry Qiefu cement plant was the last www.cemweek.com/subscribe plant in a three plants construction project, being also the longest project of all three. CW Group CemWeek BMWeek CemWeek CW Group BMWeek CemWeek BMWeek JUNE / JULY 2013CW Group
Coal Week Coal Week Coal Week
Price pressures are increasing in the Austrian cement industry, after 2012 registered stable sale margins of 4.46 million tons, but revenue that declined 4.7 percent to 375 million euros. New technologies are one promising approach: in the Austrian Leitha Mountains, Lafarge has a 12 million-euro, large-scale plant with catalyst technology, expected to reduce nitrogen emissions. Cimpor will export 0.045 million tons of cement from Alhambra port via barge to Lisbon and thence to Africa. The city of Tema, Ghana, will receive 55 percent of the shipment, with the rest bound for Freetown in Sierra Leone. In Romania, the cement manufacturer Carpatcement expects to increase cement production by 1.9 percent this year to 2.8 million tons. Total cement production in Romania totaled 7.7 million tons in 2012 and 7.6 million tons in 2011. Carpatcement predicts a turnover of RON 834.8 million this year, up 3.3 percent compared to 2012, and a gross profit of RON 174.9 million, down 4.9 percent.
regional report: europe, middle east, africa
RUSSIA AND THE BALTIC REGION Cement production in the first four months of the year has increased by 10.5 percent year-over-year in Russia to 16.6 million tons. Market players have shifted over the same period, with Eurocement reducing its stake by 1.1 percent to 32.8 percent, while Novoroscement increased its stake by 2.6 percent to 10.4 percent, and Heidelberg Cement is up 0.5 percent to 5.4 percent. Holcim has announced construction of a new cement plant in the Saratov region. In Pikalyovo, Russia, the company BaselCement will spend up to 5 billion rubles to modernize BaselCement Pikalyovo, integrating two new production lines. Sebryakovsky Cement has also announced the opening of a new production line in Russia. In contrast to Russia, cement production in the Ukraine reached 1.046 million tons in May 2013, up from April by 24.5 percent, but a year-over-year decrease of 8.4 percent. April 2013’s production, 23.1 percent higher than March, came in at 5.5 percent below April 2012. In total, 2013 production in the country has totaled 3.201 million tons, a drop of 3.2 percent compared with the same period in 2012. Production in 2012 fell 6.8 percent below those of 2011, which had seen an increase of 11.2 percent over 2010’s production. On the fuels side, the Ukrainian cement firm Ukrcement has requested 0.816 million tons of the country’s imported coal quota to continue production.
After receiving a modernization loan of US$530 million from Eximbank, the Belarusian cement industry launched a US$1,134 million modernization project, including installation of three new production lines with a 1.8-million-ton capacity each. The lines were expected to increase national cement production
select PROJECTS IN THE WORKS: middle east COMPANY (LOCATION)
OVERVIEW
Najran Cement/Saudi Arabia
Najran Cement successfully tested its third clinker line that increased the company's daily clinker capacity to 15,500 tons. The latter production line brought an additional capacity of 6,500 tons per day.
Eastern Cement/Saudi Arabia
Eastern Cement also announced the start of the trial run of its new 600 tons per day production line. The trial period will last for three months.
Tabuk Cement/Saudi Arabia
Tabuk Cement announced the construction of its second clinker production line (5,000 tons per day) and a captive power plant (30 MW).
Babylon Cement Plant/ Iraq
The Ministry of Industry and Minerals has signed a joint investment with an Iraqi company and two others for the rehabilitation of the Babylon cement plant, while confirming that the value www.cemweek.com/subscribe of the contract amounts to US$ 25 million for a period of 15 years. Once rehabilitated, the cement capacity of the plant should reach 0.22 million tons.
Raysut Cement/Yemen/ UAE/Oman/Somalia
Raysut Cement is planning to build a state-of-the-art cement terminal in Berbera Port, Somalia, and a grinding plant in Mukulla, Yemen. The company has also approved a plan to build a new cement terminal in Duqm Port, Oman, but also an expansion project at its UAE affiliate, Pioneer Cement.
Table available in the CemWeek Magazine Print Edition.
by 117 percent. However, with two of three new lines operational, production decreased by 1.6 percent, year-over-year, between January and April 2013. Domestic market consumption shrank and exports are limited by long transportation distances and lack of demand. MIDDLE EAST In Saudi Arabia, cement demand is expected to decrease due to a summer building lull. This is in contrast to the first half of 2013, when demand was high enough to require an estimated total of 5-6 million tons of cement imports over the year. Total cement sales in the country from January through May 2013 totaled 26.23 million tons, up 6.6 percent year-over-year. Looking ahead, a new 250-million-riyal Saudi cement plant will be constructed by Umm al-Qura, while Najran Cement has already begun testing a new production line expected to produce 6,500 tons of clinker daily and to boost the firm’s total output to more
JUNE / JULY 2013
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29
Coal W Coal W Coal W
regional report: europe, middle east, africa
lower than 2010 and 2011. Meanwhile, in Kuwait, a new 8,500-ton clinker production line is open on a trial basis in Kuwait Cement’s Shuaiba Industrial East plant. With the new line, the total plant capacity will reach 5 million tons per year. The Israeli cement market is currently controlled almost entirely by the company Nesher, with 10 percent supplied by Lion Baron. To promote competition and lower prices, the Israeli government has approved a bill to de-monopolize the market.
than 17,000 tons of cement per day. The Saudi company Eastern Cement has announced a trial run of a new 600-ton production line for specialized cement types. In Iran, cement and clinker exports have doubled, to 5.75 million tons, in the first quarter of the Persian solar calendar fiscal year. In June alone, 1.4 million tons of cement and 0.33 million tons of clinker were exported. Iran exports cement to Iraq at US$50 per ton, a price that will increase by US$5 going forward. With assistance from the government, the Iraqi company Babylon Cement will rehabilitate its cement plant for US$25 million, aiming for production capacity of 0.22 million tons. GCC cement sector profits rose in the first quarter of 2013 to US$585.3 million, an increase of 16.9 percent year-overyear. The profit margin reached 40.8 percent compared with 39.7 percent a year earlier. Cement prices, however, fell overall by 0.9 percent in 2013 to US$66.1 per ton, taking into account price drops of 2.5 percent in Saudi Arabia and a price increase of 6.7 percent in Kuwait. In the UAE, foreign cement trade reached US$269 million and a growth rate of 11 percent during the first nine months of 2012. Reflecting stable commodity prices and a lack of cement scarcity, cement prices in the UAE are holding steady at 250-260 dirhams per ton in 2013.
30
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For a total investment of US$24 million, Raysut Cement plans to build a cement terminal in the Port of Duqm, Oman, and another in Berbera Port, Somaliland, Yemen, in addition to a grinding plant in Mukulla, Yemen. Pioneer Cement Industries, a subsidiary of Raysut, will expand storage capacity with an additional cement silo as well as equipment upgrades. Domestic cement demand has been moderate in Jordan so far in 2013, with a volume of 1.5 million tons. White cement demand, 100-120 tons per day, has remained flat from 2012 but substantially
Finally, Syria’s Hama Cement company reports reduced cement marketing because the current political crisis has hindered construction projects and impeded transportation networks. In addition, cement prices are up due to high fuel costs. AFRICA In Egypt, product transport vehicles have returned to full work capacity, bringing cement prices down 50 pounds per ton after the price rose to 650-700 pounds previously. Nevertheless, cement production at the Ain Sukhna cement plants has fallen by 50 percent as a result of security concerns in conjunction with political protests.
select PROJECTS IN THE WORKS: africa COMPANY (LOCATION)
OVERVIEW
GalileiHeidelbergCement/ Angola
Galilei partnered with HeidelbergCement and Angola National Cement for the construction of a 2 million tons cement plant in the exchange of a total investment of EUR 284 million.
HeidelbergCement/ Liberia
HeidelbergCement commissioned a new cement mill at its grinding plant in the capital city of Monrovia. The 0.5 million tons mill represented an investment of US$ 14 million.
Tanga Cement/Tanzania
Tanga Cement plans to invest US$ 165 million for the construction of a second kiln at its plant, investment that will lift the clinker capacity by 0.6 million tons.
Table available in the CemWeek Magazine Print Edition.
Dangote/Tanzania
The ground breaking ceremony of Dangote's three million tons cement factory took place in the end of May, 2013 in Tanzania.
CIMAF Gabon/Gabon
Morocco's CIMAF group laid the foundation stone of its new cement plant worth CFA 9.67 billion. Located in Owendo, 15 km south of Libreville, the cement plant will have an initial capacitywww.cemweek.com/subscribe of 0.5 million tons.
Lafarge/Zimbabwe
Lafarge Cement Zimbabwe announced plans to invest US$ 200 million within the next 10 years towards setting up a new one million tons cement manufacturing plant.
Société Saoura Ciment/ Algeria
The Société Saoura Ciment (SSC), a subsidiary of Algeria's GICA, launched a tender for the realization of a cement plant with a capacity of 3,200 tons of clinker per day in Bechar.
Lafarge/Nigeria
The Enugu State Government has signed a Memorandum of Understanding with Lafarge for the establishment of a cement factory in the region.
Lucky Cement/ Democratic Republic of Congo
Lucky Cement starts construction at its US$ 240 million factory in Democratic Republic of Congo. Lucky Cement entered into a 50-50 agreement with the Rawji Group for a company called Nyumba Ya Akiba (NYA).
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Algerian cement imports rose 102 percent between 2012 and 2013, reaching US$159.39 million between January and May 2013. Import quantities increased more than 105 percent to 1.791 million tons. The Algerian firm GICA is set to construct a new multi-batch, 3,200-ton-capacity clinker plant in Bechar. GICA’s development plan, aiming to increase production from 11.5 million tons to 25.7 million tons by 2017, includes the construction of three other plants at Salah, Yellel, and Sigus.
New cement developments are emerging across the African continent. In Tanzania, the Tanga Cement Company plans to invest US$165 million to construct a second, 0.6-million-ton kiln and double clinker production. Meanwhile, the Confederation of Tanzania Industries (CTI) has called on the government to increase taxes on imported cement. Galilei and HeidelbergCement will partner to construct a 2-million-ton capacity plant in Benguela, Angola, at the cost of 284 million euros. Commissioning a new 0.5-million-ton, US$14-million mill at its grinding plant in Monrovia, HeidelbergCement has expanded its presence in Liberia. A booming construction sector has prompted Zambezi Portland Cement to increase production capacity from 1,000 to 1,400 tons per day. In Zimbabwe, Lafarge will invest US$200 million in a new cement manufacturing plant, elevating Lafarge Cement Zimbabwe’s production from 0.45 million tons per year to 1.45 million tons. Construction is
regional report: europe, middle east, africa
including Pretoria Portland Cement Company Limited (PPC Ltd.). PPC will raise 1.3 billion rand this year from bond sales and expects to build a US$200-million plant near Kinshasa to address a 1 million-ton shortage of cement in the country.
Elsewhere, the cement sector is hampered by a more negative outlook. Under high transportation costs, the price of cement has increased from K65 to K75 in Zambia. In Senegal, accusations that President Macky Sall blocked commissioning of a Dangote Cement plant due to pressure from a French business lobby were deunderway on a FCFA 35-billion cement nied. factory in Issongo-Bakingili, Limbe, Fako Division of Cameroon. The plant In Morocco, sales have registered their is expected to produce between 0.8 and largest decline in 35 years, finishing the 1 million metric tons of cement per year. first half of 2013 down 13.5 percent. The The Gabon-based company Cimaf (Afri- drastic decrease is of concern to econoca Group Moroccan Cement) has begun mists, who view cement consumption as construction on a second clinker grind- an indicator of a country’s development. ing plant with anticipated capacity of 0.5 Morocco registered a decline in housing million tons and potential to expand to 1 starts of 11.5 percent in 2012 and a demillion tons. crease in cement demand of 14.5 percent as of May 2013. In all, 2013 consumption Nigeria’s cement market is also attract- is expected to come in at 8 percent below ing new developments. Lafarge has an- 2012 levels. Morocco’s cement overcapacnounced plans to establish a new cement ity reached 5 million tons in 2012. factory to process limestone from large deposits in Enugu State. Meanwhile, Similarly, poor performance in the conthe Public Investment Corporation has struction market in Madagascar leaves invested US$289.3 million in Nigeria’s the cement industry on uneasy footing. Dangote Cement and is considering ad- With 0.5 million tons of cement available ditional Dangote investments. in the local market in 2013 and private construction responsible for 80 percent The rebuilding of destroyed infrastruc- of purchasing, oversupply with associatture in the Democratic Republic of Con- ed price declines (already down 6 percent go (DRC) is attracting cement makers, this year) are likely.
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REGIONAL REPORT:
reversal in the interest rate cycle, a pickup in infrastructure expenditures due to governmental elections, and the low-base effect. Cement prices rose in June 2013 across India. Over one month, the all-India average increased Rs 14/bag to Rs 308/bag. Prices are up year-over-year by Rs 15/ bag. Greatest gains occurred in the southern region, with an average price hike of Rs 30/bag. Prices increased by Rs 15-20/ bag in the east and west regions, yielding average prices of Rs 333/bag in the east and Rs 306/bag in the west. In the northern and central regions, prices increased by Rs 5-10/bag, bringing the northern and central price averages to Rs 296/bag and Rs 293/bag, respectively. Demand fell across the country, as a result of early monsoon arrival and a slowdown in infrastructure.
In India, the first quarter of 2014 is expected to be the third consecutive weak quarter for cement companies. Industry volumes are likely to be up 4 percent yearover-year and down 8 percent quarterover-quarter to 61.7 million tons, while average all-India cement realizations are likely to be down 4 percent year-overyear and broadly flat quarter-over-quarter. Average EBITDA per ton is expected to decline by 27 percent year-over-year and to remain broadly flat quarter-overquarter. The earnings downgrade cycle is likely to continue through the quarter. Positive outlooks on the sector hinge on demand recovery in the second half of 2014, a scenario predicated upon a housing upswing after a normal monsoon,
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Meanwhile, Holcim plans to carry out a substantial restructuring and optimization of Indian operations, perhaps including a much-anticipated merger between its local subsidiaries Ambuja Cements and ACC. Madras Cements plans to invest Rs 360 crore to set up a new grinding unit in Andhra Pradesh and another Rs 55 crore to increase its power generation capacity. The new unit will open in the second quarter of FY2014-2015. The clinker for this plant would be transported from its Jayanthipuram plant. The outSelect projects in the works: Central and Southeast Asia COMPANY (LOCATION)
OVERVIEW
Orient Cement/India
Orient Cement received environmental clearance for its cement plant at Chittapur in Gulbarga district of Karnataka. The Rs 1.75 crore project is expected to be commissioned by the end of December 2015.
Madras Cement/ India
The company is pledging Rs 360 crore for the construction of a new grinding unit in Andhra Pradesh and another Rs 55 crore to boost its power generation capacity. The grinding unit will be supplied with clinker from the Jayanthipuram cement plant and is expected to come online in the second quarter of FY 2014-2015.
Dal Teknik Makina Ticaret Ve Sanayi/ Uzbekistan
The Turkish contractor, Dal Teknik Makina Ticaret Ve Sanayi, signed a contract with German Pfeiffer for the supply of a MPS 3350 cement mill. The delivery of the equipment is scheduled for late www.cemweek.com/subscribe 2013 - early 2014.
Akkord Corporation/ Azerbaijan
The International Bank of Azerbaijan (IBA) announced the success of its program to finance the development of the sector of construction materials through the finalization of the construction process of a second cement plant in the country, funded by the World Bank and built in partnership with Akkord Corporation.
HeidelbergCement/ Kazakhstan
The new 1.8 million tons cement plant in the village of Shepte is on track to start production by the end of the year.
Table available in the CemWeek Magazine Print Edition.
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The Ghorahi Cement Industry of Nepal has launched its new Sagarmatha OPC (Ordinary Portland Cement) cement, which complies with Nepal Standards NS 49-2041. Aiming to substitute its product for imports from India and China, the company is now seeking to obtain ISO 9001 certification for the new cement. The new product’s strength ranges from 55-60 MPa, while 53 MPa is considered high-grade. Sagarmatha cement is manufactured at a plant equipped with stateof-the-art technology from KHD Humboldt of Germany.
regional report: SOUTH ASIA
ernment to support local production by rolling back fee waivers on imports from India.
Sri Lanka plans to protect local manufacturers and traders by banning foreign investments in steel, cement and supermarkets. Previously-approved projects will not be affected by the new investment ban. put from the new unit would be marketed in coastal Andhra Pradesh and in Odisha and Chattisgarh. The company currently operates three grinding units.
were up 4.8 percent to 0.408 million tons. Exports registered a steep monthly decline of 20 percent to 0.63 million tons in June.
Several notable sales are also on the horizon in India. Jaiprakash Associates (JP) will sell its Gujarat cement unit stake by the end of the year. The 4.8 million ton cement plant has been valued at Rs 4,000 crore. French cement major Lafarge received approval from Competition regulator CCI for its 14 percent stake sale in its Indian subsidiary to Paris Cement Investment Holdings, a subsidiary of Baring, while CRH and Vicat are in a race to acquire Shree Jayajothi Cements, the cement unit of Shriram Group. Shree Jayajothi Cements is valued at US$250 million.
Beginning July 1, cement prices in Pakistan will increase Rs 25-30 per 50-kg bag, as a consequence of a new 19 percent federal sales tax. The tax includes a 17 percent general sales tax, as well as a 2 percent tax on retailers and distributors.
In Pakistan, total cement sales declined 6.44 percent over one month to a June 2013 total of 2.702 million tons. Local sales declined 1.4 percent to 2.07 million tons. In northern Pakistan, sales declined 2.8 percent over one month to 1.665 million tons, but in southern Pakistan sales
In Nepal, the value of cement imports rose by 15.5 percent to Rs 3.34 billion in the first 10 months of the fiscal year, and seven new cement factories were brought online. Domestic manufacturers argue that local production can meet the Nepalese market demand and call for the gov-
By contrast, Pakistani manufacturers have slashed the price of cement exports to Afghanistan by around Rs 300 per ton in order to compete in the Afghan market. Cement exports to Afghanistan via the Torkhum border had been halted due to high availability of cheaper Iranian cement.
A proposal to abolish the import duty on cement in Kyrgyzstan has been rejected by the Parliamentary Committee on Economic and Fiscal Policy. The proposal argued that high cement prices increase construction costs and harm Kyrgyzstan’s markets. However, the committee rejected the proposal because the import duties do not apply to the CIS countries. The Yuzhnokyrgyzsky cement plant in Kyrgyzstan plans to produce 0.6 million tons in 2013, up from 0.5 million tons in 2012 and 0.335 million tons in 2011, but down from 0.922 million tons in 2010. Natural gas shortages have cut Tajikistan’s cement production significantly. In the first five months of this year, the country produced only 0.017 million tons of cement, down from 0.09 million tons during the same period in 2012. The largest cement plant in the country, a facility of Tajikcement, has been dormant since mid-November of last year. Tajikistan’s cement industry is working to shift equipment from gas-powered to coal-powered in an effort to restart production.
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Because of unfavorable market conditions, Brazilian cement company Votorantim Cimentos has postponed until September 11 its sale of US$3.7 billion in shares. The deal would have been the world’s second-largest this year, after Brazilian insurer BB Seguridade Participacoes’s US$5.7 billion sale in April. Votorantim’s postponement follows six Brazilian IPOs, worth a combined US$7.3 million, since January. Although IPOs are down 4.2 percent globally and 31 percent in the U.S. over the same period last year, Brazilian IPOs this year have been the highest for the period since 2002 and have tripled 2012 levels. The Portuguese company Semapa-Sociedade de Investimento e Gestao purchased a 50 percent stake in Supremo Cimento in 2012 and is building a cement plant in the Brazilian state of Parana. The new plant will increase Supremo’s cement capacity from 0.4 million tons to 1.7 million tons. Portuguese cement and building companies are focused on Brazil in anticipation of the 2014 soccer World Cup and 2016 Olympic Games. Additionally, cement consumption in Portugal has slowed considerably after the country’s 2011 bailout. In other developments, the port of Paranaguá on the coast of Paraná is receiving parts for the R$340 million Margem cement plant, located in Adrianopole in the Metropolitan Region of Curitiba and expected to generate 150 direct jobs in 2014. Parts arriving at the port originate from 15 countries and a large number of companies, including FLSmidth.
Construction has prompted Holcim, Cemex and Cementos Argos to together invest more than US$700 million to build new plants and expand existing facilities. Cemex, which has a 2.7 million-ton capacity plant near Ibague, another in the city of Cúcuta, and two mills located in Bucaramanga and La Calera, will invest about US$75 million in Colombia in 2013, building a new mill in Bolivar. Overall, gray cement production in Colombia increased slightly year over year in May, reaching 929,100 tons, but sales declined. A total of 901,600 tons of gray cement were shipped to the domestic market, down 0.3 percent from the same
The Colombian market is poised for expansion as a result of a government program slated to build 100,000 new homes.
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month last year. The decrease was mainly due to marketing sector losses, which subtracted 3.2 percent from the total. By contrast, there were increases in shipments to builders and contractors and cement trucks, which together contributed 2.9 percent. Shipment reductions occurred in Bogotá (-15.5 percent), Nariño (-38.2 percent), and Cesar (-20.5 percent), combining to subtract 3.9 percent from the total. Meanwhile, Córdoba (54.7 percent), Atlantic (22.4 percent) and Bolivar (25.8 percent) summed to a gain of 3.4 percent overall. Notable among individual companies, Cementos Argos has recently raised US$1.4 billion in capital. In the first funding round, the company earned 1.4 trillion paisa and awarded 182 million preferred shares. U.S. investment banks JP Morgan Securities and HSBC Securities purchased 27.2 million preferred shares for 209,423,000 pesos. With an investment of US$93 million, Cementos Argos then began to expand plant capacity in Rioclaro, Nare, and Cairo, increasing by 0.9 million tons the central Colombian cement production capacity.
regional report: americas
In Argentina, a factory gas compression plant is slated to open in the northern province of San Juan, enabling a new gas pipeline investment of US$250 million by cement firm Loma Negra. Loma Negra will open its tenth cement unit this year. Additionally, the company has invested US$45 million this year in the new plant and a coal grinding unit. The Argentinian port of Comodoro Rivadavia will ship 6,000 tons of cement to Ecuador. Shipment will occur on the Brazilian merchant vessel HC Opal and represents an exporting batch from Petroquímica de Comodoro Rivadavia. Between January and April 2013, sales of concrete and local cement dispatches in Peru grew by 90.7 percent and 0.5 percent, respectively. Combined year over year growth was 8.7 percent. Public sector consumption was stimulated by US$38 million in construction at public facilities. Tax works construction (US$3 million) on the Mansiche Road interchange began in the same period. The Chilean company Bio Bio and its Brazilian partner Vatorantim, working with the Local Ipsa and the Hispanic World
Cement Group, anticipate completion in 2016 of a US$160 million cement plant with a production capacity of 0.7 million tons in Peru. Between January and March of this year, 671,078 metric tons of cement were sold in Bolivia, an increase of 6.6 percent over 2012’s first quarter. Overall, 2.4 million metric tons were sold in the country in 2010, 2.6 million tons in 2011, and 2.7 million tons in 2012. Demand is expected to grow by at least 10 percent until December of this year. Expansion of the Bolivian cement market is illustrated by the recent opening of the Cooperative Boliviana de Cemento, Industries and Services (COBOCE)’s second modern cement plant, in the town of Irpa Irpa. The furnace currently produces 1,600 tons of clinker and is expected to double capacity. In late 2012, Bolivia imported about 10,000 metric tons of cement to supply the domestic market. However, recent expansion of domestic production capacity via the cement factories Viachan Soboce (La Paz), Fancesa (Sucre), and Coboce of Irpa Irpa (Cochabamba) ensures that
domestic supplies will meet current demand. Construction experienced no cement shortage during the recent busy construction season. However, construction on a priority installation of a cement plant in Oruro, spurred by the presence of a rich deposit of limestone in North Caracollo, has stalled. In the Dominican Republic, new entrants like Grupo Estrella have recently joined the fast-growing market, while foreign investments in the cement industry have totaled over US$1 billion. Local companies include Cementos Andino Dominican with a milling capacity of 0.475 million tons, Cemex with 2.4 million tons, Cementos Cibao with 1.3 million tons, Domicem with 1.1 million tons, Cementos Colon (Argos) with 0.5 million tons and Santo Domingo with 0.35 million tons. The seventh Dominican cement plant, belonging to Grupo Estrella, is currently under construction. The country’s installed capacity is estimated at 6.1 million tons per year. In 2012, the Dominican Republic exported 1.37 million tons of cement, 36 percent more than the previous year. Exports to markets in South America, the
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regional report: AMERICAS
Caribbean, and Central America have been strong enough to partially offset a 6 percent reduction in the domestic market. The Colombian cement company Argos arrived in the Dominican market in 1996 with a stake in Cementos Colon, gaining control of the company in 2009. In the integration process that followed, Argos has made investments to increase production capacity and has already launched a concrete plant to add to the Dominican market. Of additional interest in the growing Dominican Republic market is the launch of a new cement variant, known as Titan cement, by Cemex. A high efficiency (HE) product available in bulk quantities for industrial use, Titan exhibits enhanced resistance and performance and is expected to raise the quality of buildings in the country. The cement industry in Venezuela has shown recent signs of stabilization after the country invested US$458 million to improve operations. Production from April 2012 to April 2013 amounted to 8.4 million tons. The domestic industry’s production capital consists of 10 cement plants with a total of 23 kilns for clinker production and a capacity of 8.8 million tons per year, as well as 20 cement production lines with total capacity of 9.09 million tons per year. Looking to boost the cement industry, Venezuela may spend as much as US$1.2 billion to increase domestic cement production to 500 kg per person per year. Venezuela currently produces about 280 kilos per person per year. To further bolster supplies, Venezuela has begun importing cement, with the port of Puerto Cabello recently receiving 23,991 tons of cement from Cuba. These supply changes may impact fluctuating prices of cement in Venezuela. Bulk cement prices in the country increased by 40 percent in recent weeks, affecting the final price of works by about 8 percent.
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In Texas, demand in a market led mainly by the oil and gas industry has fueled Cemex’s plans to expand production capacity at its Odessa, Texas, cement plant by 62 percent to nearly 0.9 million tons per year. Meanwhile, Texas Industries reports that the second kiln at its Hunter cement plant is now operational. In combination, the two TXI kilns will produce and ship approximately 2.3 million tons of cement per year. To settle allegations of air pollution, the U.S. company Ash Grove Cement will pay a US$2.5 million penalty and invest about US$30 million in pollution-control tech-
nology at its nine cement manufacturing plants. The nine plants are located in Foreman, Ark.; Inkom, Idaho; Chanute, Kan.; Clancy, Mont.; Louisville, Neb.; Durkee, Ore.; Leamington, Utah; Seattle, Wash.; and Midlothian, Texas. In the first three months of 2013, cement demand plummeted 10 percent in Mexico, placing the 2013 first quarter among the worst in the past decade. However, the Mexican unit of Swiss cement giant Holcim expects demand for cement in the country to grow by 1-2 percent in 2013, once the government initiates a public works plan.
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OVERVIEW
Table available in the CemWeek Magazine Print Edition.
Cementos Yura/ Peru
Cementos Yura is expecting high-tech equipment from Germany for the expansion of its cement plant.
Cementos Bio Bio/Peru
All permissions have been obtained for Cementos Bio Bio's Peruvian projects. The Chilean cement company is partnering with the Brazilian Votorantim for the construction of the 0.7 million tons cement plant. The expectation is that the unit will be operational by 2016.
Loma Negra/ Argentina Cemex/USA
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www.cemweek.com/subscribe Loma Negra is currently preparing the Environmental Impact Statement (EIS) for its US$ 250 million Pocito cement project announced two years ago. Once approved, the company can start the construction process at the plant.
Cemex plans to expand the production capacity at its Odessa, Texas cement plant with the objective to reach a total capacity of 0.9 million tons per year.
REGIONAL REPORT:
The Chinese cement market is expected to grow by about 6 percent in 2013, up from 5.74 percent in 2012. Urbanization and strong infrastructure demand will sustain the Chinese market in a stable development phase. In the first five months of 2013, national cement production has maintained rapid growth, with output reaching 866.35 million tons, up 8.9 percent year-overyear. Over the same period, national investment in fixed assets (excluding farmers) was 13.1211 trillion yuan, up by 20.4 percent nominal growth. May fixed
asset investment (excluding farmers) increased 1.43 percent. The national real estate development and investment over the period was 2.6798 trillion yuan, up by 20.6 percent nominal growth. Residential investment equaled 1.8363 trillion yuan, up 21.6 percent. From January to April, Chinese exports of cement and cement clinker amounted to 4.07 million tons, an increase of 31.5 percent. Exports were valued at $230 million, an increase of 21.1 percent. April was the best month, with 1.23 million tons of cement and clinker exported.
Cement and clinker FOB prices were at about $55 per ton, $4 lower than the same period last year. Industry-wide, total profit in China for the period was 8.23 billion yuan, a decrease of 12.1 percent year-over-year. Losses were reported in 12 provinces, with greatest declines for the northern and northeastern regions. Better earnings occurred in the southwest, with substantial growth in Sichuan, registering total gross profit of 1.043 billion yuan (up 156 percent year-over-year), and in Guizhou (up 189 percent year-over-year) and Yunnan (up 192 percent year-overyear). The Chinese cement market has entered its off season, with national cement market prices down 0.67 percent in the past week to 320 yuan per ton. Local prices have dropped 10-30 yuan per ton. In northern and central China, the price of P.O42.5 fell 0.6 percent. For large enterprises, P.O42.5 fell from 350-360 yuan per ton to 340-350 yuan per ton, with other SMEs remaining in the 300330 yuan per ton range. Beijing market prices are expected to remain stable. The regions of Handan and Xingtai have been affected by reduced housing starts. In east-central China, P.O42.5 cement prices fell 0.8 percent over the period as demand weakened. Jiangsu and Zhejiang Provinces registered declines of 20-30 yuan per ton, and local cement prices dropped 20 yuan per ton in Hefei, Wuhu, and Lu’an. Lafarge (Lincang) Cement is installing a new 2,000t/d dry process cement clinker production line in China. The project represents a total investment of 460 million yuan, and is expected to come online in July. Once operational, the line will earn 5 billion yuan annually. Two Taiwanese cement makers have announced plans for expansion programs in mainland China. Taiwan Cement Corp. will invest 109 million Chinese yuan (US$17.41 million) in Liaoning province, and Asia Cement Corp. will invest more than US$20 million to expand production facilities in mainland China.
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regional report: ASIA PACIFIC
In Indonesia, cement sales between January and May 2013 rose 6.9 percent to 23 million tons, but monthly growth rates are slowing. May sales increased to 4.7 million tons, an increase of 2.1 percent. This was the lowest monthly growth rate in recent years. Before May, 2013 sales grew at 8.6 percent year-over-year. Cement consumption contracted between January and May 2013 on all islands except Java and Sulawesi. About 55 percent of Indonesia’s total cement consumption occurs on Java, which experienced cement sale increases of 5.3 percent to 2.8 million tons. Contributing to cement price hikes, fuel prices have risen in Indonesia, with premium oil up 44.4 percent, from Rp 4,500 per liter to Rp 6,500 per liter, and diesel up 22.2 percent, from Rp 4,500 per liter to Rp 5,500 per liter. Fuel costs account for approximately 15 percent of the cement market’s total cost of good sold (COGS). On the individual company front, Semen Indonesia will seek to raise as much as US$200 million of a total Rp 4 trillion in capital funds this year. In addition, the company is aiming to meet 10 percent of its total energy needs with alternative energy sources, up from 5-8 percent. Along with these developments, Semen Indonesia is actively looking to expand into Myanmar, and is reviewing partnership opportunities. The planned investment in Myanmar will total US$200 million. The resulting joint ventures will generate production capacity of 0.3 million tons per year. Semen Indonesia itself is aiming for production capacity of 1-1.5 million tons per year. The company Semen Padang has installed a Rp 197 billion cement mill in conjunction with its packing plant facilities in Aceh Village. January to May 2013 cement consumption in Vietnam was up 19 percent year-overyear, to 23.8 million tons. Domestic cement production was up 109 percent year-over-year, reaching 19.15 million tons. Vietnam’s exports (primarily to
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OVERVIEW
Semen Padang/ Indonesia
In order to meet the cement demand in the East Coast of Sumatra, Semen Padang installed a cement mill in Aceh Village with an investment of as much as Rp 197 billion. The location also benefits from a packaging plant opened in December 2010.
Semen Indonesia/ Indonesia
The company is pledging Rp 7 trillion for the construction of two cement plants in West Sumatra and Central Java. Both cement plants are expected to be completed in 2016.
Table available in the CemWeek Magazine Print Edition.
Thanh My Cement/Vietnam Kampot Cement/ Cambodia
Thanh My Cement Plant (Quang Nam) announced that by mid-December the company will start operations at its new cement plant, targeting to supply cement to the central region market. At this point, the construction is 95 percent completed. Kampot Cementwww.cemweek.com/subscribe has accelerated works on the second factory after signing an agreement to buy technology and machinery from the Chinese company CITIC Heavy Industries. The plant start-up is scheduled for late 2015.
Cahya Mata Sarawak/ Malaysia
Cahya Mata Sarawak is investing RM150 million in a new grinding plant. The one million tons cement unit will commence production in late 2015.
Cemex Apo/ Philippines
Cemex intends to install a new mill at its Naga based cement plant. The 1.5 million tons vertical mill is expected to be commissioned in Q2 2014 and will require a total investment of P2.5 billion.
Lafarge Republic/ Philippines
Lafarge Republic is building a new 0.85 million tons cement mill at Teresa, Rizal. Commercial operations are scheduled to start in 2015.
Taiwan, Singapore, and Indonesia) have also increased in recent months. The country exported nearly 5.2 million tons between January and June 2013, up 170 percent year-over-year.
private and government construction activity. Meanwhile, the 8990 Group has made the mandatory tender offer (priced at P0.4083, a 67 percent discount) to the minority shareholders of Southeast Asia Cement Holdings after buying out the controlling shareholders. Previous shareholders include Calumboyan Holdings, Lafarge Holdings Philippines, and Seacem Silos.
The Vietnamese company Quang Ninh (QNC) will close two branches: the cement factory branch Hatu and the Uong Enterprise building. The closures occur amid difficult market conditions in Quang Ninh Province. Cemex in the Philippines is installing a new P2.5 billion vertical cement mill for Filipino cement companies report mixed its Naga-based plant. The new mill will activities in recent weeks. Siam Cement increase the Naga plant capacity by 1.5 Group of Companies (SCG) expects to million metric tons per year, and will grow its Philippine operations by up come online in the second quarter of to 15 percent this year, in light of both next year.
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SECTOR COVERAGE: From March to May 2013, the number of housing starts in France was up 6.7 percent to 86,700. Multi-unit housing was up 15.5 percent. Housing residence starts increased 5.3 percent and individual housing rose 1.3 percent, while individual dwellings grouped fell 4.4 percent. In Spain, residential construction is expected to grow by 5 percent in 2014 and 15 percent in 2015, signifying modest recovery after a 20 percent decrease in 2013. New housing starts in 2012 numbered 45,000 and are projected to reach 60,000 in 2015, far below the 250,000 starts recorded between 1991 and 1993. Infrastructure remains the strongest area of construction industry growth in Romania. Poor weather conditions and limited infrastructure funding reduced construction in the first half of 2013 to well below 2012 levels. Safe forms of industrial development include work supported by European funding, public-private partnerships, and foreign investors. Market volume in 2013 is expected to be similar to or slightly up from 2012.
CONSTRUCTION The construction sector has grown in several regions in the past months. In Bangladesh, infrastructure projects and continued urbanization have boosted the industry. In illustration of this, authorities recently floated a tender for the main infrastructure of a proposed US$3.0 billion Padma Bridge. Marginal construction expansion in Germany brings positive growth in May for the first time in over a year. The Markit Germany Construction Purchasing Managers’ Index (PMI) posted 50.6 in May, up from 48.8 in April. Values over 50 signify positive growth. Housing in Russia is up by 10.9 percent year-over-year, with completion of 17.5 million m² of new residences.
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The value of new housing is down by 0.1 percent year-over-year, however, totaling RUB 1.729 trillion (€40.13 billion). In all, 212,200 apartments were completed between January and May. Total construction spending in the U.S. rose to a seasonally adjusted annual rate of US$874.9 billion in May, up 5.4 percent year-over-year. Total residential housing spending rose to the highest level in 4.5 years, up 0.5 percent from April. Public construction rose 1.8 percent, with state and local activity up 1.6 percent and federal spending up 0.6 percent. Private residential construction rose 1.2 percent. By contrast, spending on nonresidential projects fell by 1.4 percent.
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In other nations, construction slowdowns have been in evidence. In India, the infrastructure sector reflects a general downturn in the economy. Infrastructure output registered growth of 3.2 percent in the last fiscal year after 5 percent the previous year. Nevertheless, the country is projected to become the world’s third largest construction market by 2025. In Ireland, the construction sector continued to contract in May. The Ulster Bank Construction Purchasing Managers’ Index (PMI) posted 42 in May and 41.9 in April. The construction sector has now posted monthly declines for six straight years, and a general lack of confidence in the sector is pervasive. In the EU, construction fell by 5.9 percent and in the Eurozone by 6.6 percent from January to April. April construction registered a slight increase of 0.9 percent in the EU and 2 percent in the Eurozone over March, with building construction up 1.1 percent in the Eurozone and 0.7 percent in the EU. By contrast, construc-
tion in March declined from February by 1.8 percent in the EU and 1.3 percent in the Eurozone, and building construction dropped by 1.2 and 0.9 percent, respectively. Civil engineering rose by 3.9 percent in the Eurozone and by 0.8 percent in the EU27, after -3.9 percent and -2.2 percent, respectively, in February. Construction rose in eight and fell in seven of the EU member states in April, with highest increases in Germany (6.7 percent), Portugal (5.9 percent) and Italy (5.5 percent), and largest decreases in Poland (5.2 percent), Romania (3.7 percent) and Spain (3.1 percent). CONCRETE In Russia, production of precast concrete structures and parts declined 10.7 percent month-over-month to 2.2 million cubic meters in May 2013, a drop of 0.6 percent from May 2012. Production so far in 2013 has reached 10.4 million cubic meters, rising each month from January to April. An even sharper May drop occurred in the Ukraine, where concrete production in May 2013 experienced a 1.6 percent monthly drop and came in 16.5 percent
Table available in the CemWeek Magazine Print Edition. Mar-13
Apr-13
May-13
Authorized Units
890
1,005
974
Started Units
1,005
856
914
Units under construction
Units completed
594 606 www.cemweek.com/subscribe 810
696
620 690
Source: U.S. Census Bureau, New Residential Construction Statistics
lower than May 2012, whereas April 2013 had registered 9.5 percent above April 2012, a 49.8 percent rise from March. The net January-May production level was roughly equivalent between 2012 and 2013 (4.2 million tons). New acquisitions, plants, and contracts have stimulated the concrete sector in several regions. Major improvements to Riga International Airport in Latvia have required over 80,000 m³ of a CEMEX specialty ready-mix concrete. So far in 2013, the Irish company CRH has logged £400 million in acquisitions across North America and Europe. CRH’s Northstone branch has acquired the ready-mixed concrete, aggregates, and
block operations of Cemex in Northern Ireland. The deal generates 24 million tons of reserve. In addition, CRH has acquired the import facilities of the Dudman group in mainland Britain.
sector coverage: construction materials
New Residential Construction in the U.S. (thousands of units)
The company Guizhou Qinglong Panjiang Cement is building a new concrete plant in Qinglong County, China. The plant, priced at 80 million yuan, is projected to produce an annual output of 800,000 cubic meters. Lafarge has opened a new concrete manufacturing plant in Gorzów, Poland, and predicts daily production of more than 600 m3 of concrete. Meanwhile, the German company Sommer Anlagentechnik GmbH will supply Tajikistan’s KDSK with equipment to upgrade the former KPD-3 concrete plant, elevating production to 150 thousand square meters. GYPSUM AND LIME Several companies have logged new investments in gypsum and lime in recent months. Metso has acquired a Copenhagen, Denmark, lime kiln and Karlstad, Sweden, recausticizing technology from the Danish equipment maker FLSmidth. VKG Energia company has began construction of a new lime plant, slated to produce 24,000 tons of lime annually using waste rock from the company’s Ojamaa mine. Bulgaria’s Calcit has contracted Pfeiffer to supply its Asenovgrad quicklime works with an MPS 112 B vertical roller mill and other equipment. The MPS mill yields 5 tons/hour of quicklime, ground to a product fineness of 1% residue 0.090 mm. Nordkalk Corporation’s Louhi limestone plant in Savonlinna, eastern Finland, is restarting production after being placed on stand-by in 2009. In light of positive
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SECTOR COVERAGE: CONSTRUCTION MATERIALS BY BMWEEK.COM
sales and demand projections, limestone quarrying will restart in August 2013 and the quicklime kiln will restart. The location’s slaking and grinding plants have been running continuously. The French company Lafarge will sell its North American gypsum business to U.S. private equity firm Lone Star for US$700 million, as part of an effort to cut debt and help restore Lafarge’s investment grade rating. The rating was lost in 2011 as a consequence of debt accrued through Lafarge’s purchase of Orascom in 2007. Several new gypsum production facilities have entered the worldwide pipeline. The Spanish company Xella, through its subsidiary Fermacell, has opened a new gypsum fiber board manufacturing facility in Orejo, northern Spain. The facility is expected to produce 12 million square meters annually, and represents a EUR 30 million investment. The Bank Sohar SAOG and USG-Zawawi Group will establish a US$45 million gypsum quarry and gypsum board manufacturing plant in the Salalah Free Zone in the Dhofar Governorate of Oman. Research by Tecnalia-Construction in Spain aims to assess the feasibility of a gypsum recycling processing plant, located in the Basque town of Urtuella, capable of removing gypsum particles from construction and demolition waste. AGGREGATES To improve efficiency and alignment with its strategic plan, Vulcan Materials has disposed of its four remaining quarries in the cities of Franklin, Dousman, Racine, and Sussex, Wisconsin. Meanwhile, a new Lafarge quarry in Aldermaston, West Berkshire, England, is expected to yield 2.5 million tons of sand and gravel over the next 12 years. By contrast, consumption of aggregates for construction in Andalusia, Spain, registered a heavy decline in 2012, coming in at 17 million tons or 37.8 percent below 2011. The industry is now down 81.3 percent since 2005.
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GREEN AND INNOVATIVE BUILDING In Nantes, France, Lafarge has begun using recycled construction aggregates, comprising layers of sand, Agneo, gravel natural, bitumen, and asphalt. Italian scientists in Salerno have added rubber strips from shredded waste tires to water and cement as part of concrete proProduction in Construction Index (2010 = 100) Country
Mar-13
Apr-13
Czech Republic
79.0
81.1
Germany
99.5
106.2
France
95.0
95.2
Italy
70.3
74.2
Hungary
91.2
92.5
Table available in the CemWeek Magazine Print Edition. Poland
95.7
90.1
Portugal
58.1
61.5
Sweden
124.7
121.7
www.cemweek.com/subscribe Source: Eurostat
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duction. Bio-Brick, an innovative new concrete product utilizing bacteria in production, is capable of reducing greenhouse gas emissions over those of traditional clay bricks by at least 800,000 tons of CO2. A subsidiary of the corporation Transstroi has applied for a patent for a new Inzhtransstroy-developed concrete mix incorporating fine mineral powder to reduce the amount of required cement and utilize limestone dust. The firm Saint-Gobain, in partnership with Akron Summit Community Action, Inc., and YouthBuild Akron, has completed an Akron, Ohio, home renovation expected to achieve the city’s first U.S. Green Building Council’s (USGBC) Leadership in Energy and Environmental Design LEED Platinum certification. The building will be the seventh LEED Platinum-certified home in Ohio.
PEOPLE
A
variety of notable personnel shifts have occurred across the cement industry in the past two months. In a controversial move at TCL, five new nominees for directorship have been proposed by a group of institutional investors from Trinidad and Tobago. The TCL board opposes the nominations. Meanwhile, company executive Djelal Hamid has been installed as general manager of Sour El Ghozlane. Hamid, formerly technical assistant, was selected by industry group Cements Algeria (IPAC)’s CEO, Bachir Yahia, to replace Ahcène Rezzagui following disappointing cement production levels. Carlos Gonzalez, president of Cemex in the Dominican Republic, has been named president of the Dominican Association of Cement Producers (Adocem) for 2013-2014. He will be supported at Adocem by Gabriel Ballestas Agros as treasurer and Jose Caceres de Cementos Cibao as secretary. Independent director Tom Ransdell will take over as chairman of the board at Texas Industries. Ransdell replaces as chairman recently deceased Bob Rogers. After 39 years in the business, general manager Jorge Matus has resigned from Chile’s Cementos Bio Bio. Iñaki Otegui, current manager of the cement division, has been appointed new general manager of corporate business. Hernán Briones Goich has been appointed the new Cementos Bio Bio chairman, Alfonzo Rozas Ossa the vice president, and Jose Ramon Valente Routes the third member of the Audit Committee. Board of Directors members include Luiz Alberto de Castro Santos, Eduardo Novoa and Jose Ramon Valente Castellón. The CEMBUREAU General Assembly elected former vice president Peter Hoddinott to succeed Ignacio Madridejos as CEMBUREAU president. Daniel Gauthier has been elected vice president. As Executive Vice-President of Energy &
Source: ADOCEM
Strategic Sourcing of Lafarge since 2012, Hoddinott was responsible for worldwide energy strategy and sourcing of Lafarge’s externally sourced inputs. Tim Surridge, CFO of Dangote Cement, has resigned his position because of family reasons. A global search for a replacement is expected. In the interim, CFO duties will be performed by Kuzhiyil Ravindran, currently CFO of Dangote industries and former CFO of Dangote Cement. Notable resignations are also reported at Cimpor, where Luís Sequeira Martins and Manuel Luís Barata de Faria Blanc have stepped down from the board of directors. Sequeira Martins, aged 65, has been a member of the Cimpor board of directors since 1987. Barata de Faria Blanc, aged 68, has been administrator of Cimpor since 2001. The resignations
arrive at a time when the cement industry undergoes changes under the tender offer (OPA) launched by InterCement, a division of Brazil’s Camargo Corrêa Group. At Votorantim Cement, the largest cement producer in Brazil, executive Markus Akermann has been elected to the board of directors. Akermann served as CEO of the Swiss giant Holcim between 2002 and 2012. After 11 years with Votorantim, executive Fábio Faria will transfer to CSN to head the latter’s corporate IT Group. He will report directly to CSN president Benjamin Steinbruch. Isidoro Miranda, CEO of Lafarge in Spain, has been appointed president of Oficemen. He will replace José Luis Sáenz de Miera, president of Cementos Portland.
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EQUIPMENT
& NOTABLE PROJECTS
New orders placed by Indian companies On June 5, 2013, FLSmidth received a new DKK 200 million order from Orient Cement for the supply of a greenfield cement plant to be located in the state of Karnataka. The 6,000 ton per day line follows the 4,000 ton per day brownfield project that was supplied by FLSmidth in 2007. The new order covers engineering and supply of main equipment from limestone crusher to packing plant and will contribute to FLSmidth’s earnings until the end of 2014. Sinoma Energy successfully signed a cogeneration contract with HeidelbergCement India for its Damoh cement plant. The Waste Heat Power Generation Project is dedicated to the three cement production lines of Damoh cement plant that own 1,700 ton per day, 2,350 ton per day and 6,000 ton per day, respectively, in ce-
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ment capacity. The installed capacity of the cogeneration project is estimated at 15MW. HeidelbergCement India also reported that the Loesche mill installed in Jhansi, Uttar Pradesh, already exceeded its guaranteed performance. The mill type LM 53.3+3 C was guaranteed for 215 tph. Following the performance tests run in March 2013, results revealed that the mill was already operating at 235 tph. HeidelbergCement supplies its clinker needs from the Narsingarh unit situated in Madhya Pradesh. The current cement capacity of the company in India has been thus boosted to 6 million tons per year. ThyssenKrupp wins large contract in Thailand Thailand’s TPI Polene Public Company has awarded a 150-million euro contract to ThyssenKrupp for the construction
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of a greenfield cement plant located in Saraburi, near the capital Bangkok. The 10,000 ton per day clinker line is expected to be commissioned in 2015. According to the awarded contract, ThyssenKrupp will supply major components for raw material preparation, clinker production, cement grinding and fuel preparation. FLSmidth to supply cement plant in Equatorial Guinea FLSmidth won an order worth DKK 505 million (approximately EUR 68 million) from Grupo Abayak AKOGA Cemento for the supply of an integrated cement plant in Akoga, Equatorial Guinea. The contract includes engineering and main equipment, such as jaw crusher, cone crusher, ATOX® raw mill, OK cement mill, pyroline with cross bar cooler, dosing systems, filters, packing plant and automation control system. The 3,000 ton per day line is expected to be commis-
sioned by the end of 2016 and will serve the currently undersupplied local market, as well as neighboring countries. First Pfeiffer raw mill reaches Uzbekistan The Turkish company DAL Teknik Makina has ordered a Pfeiffer MPS 3350 B vertical roller mill for raw mill to be installed as early as next year in Uzbekistan. The grinding plant will benefit from a grey cement raw meal capacity of 200 tons per hour and a white cement raw meal capacity of 160 tons per hour. China’s CITIC HIC enters Brazil The Chinese company CITIC HIC is looking to build a 2,500 ton per day cement plant in Adrianópolis, the metropolitan region of Curitiba. The project represents the first Brazilian cement plant of the company and will be built in partnership with CVR. Another three cement plant projects are found in different construction stages in Adrianópolis. Margem Cimentos already pledged R$340 million for the construction of a cement plant, while two other cement companies are negotiating the installation of cement producing units in the region. With an aggregated investment of over US$1 billion, the projects will create 10,000 direct and indirect jobs.
Another area the company is exploring is the promotion of concrete roads construction, which is viewed as a more durable and cost-effective building solution. Cemex already announced that it intends to support four major concrete paving projects in the country during 2013. McInnis Cement launches new website The website launched by McInnis Cement on June 12, 2013, contains a broad array of information, including a 3D animation showcasing the Port-Daniel-Gascons cement plant project in its setting. The total investment pledged for the cement plant project reaches $1 billion, including $700 million to be invested in the Gaspé region of Quebec. The project is expected to create up to 600 jobs during the construction phase and provide permanent direct and indirect employment for another 400 people after commission-
ing. The company benefits from a deposit of 450 million tons of high-quality limestone, ideal for cement production. In addition to the purchase of the property, significant development work on the project has already been undertaken including site preparation, the access road and maritime terminal, engineering and necessary environmental upgrades. Sinoma-Loesche partnering for Saudi cement project Sinoma International Engineering, Nanjing, ordered a Loesche LM 56.4 mill for Southern Province Cement’s Tahamah plant. The Vertical Roller Mill is designed with 400 tons per hour, a product fineness of RMI 8% R 0.09 mm and 1% residue on 212 µm. Additionally, Loesche will supply metal detector, magnetic separator, slide gates and rotary valves below Cyclones. The delivery will be performed in October and December 2013 through FOB North Sea Port.
Cemex invests in Egypt Cemex has reinforced its commitment to Egypt’s development, while setting aside approximately US$100 million for operational enhancements. The largest part of the investment is expected to counteract the fuel subsidies elimination scheduled for 2014. Following the investment, the Assiut cement plant is expected to increase the capacity to use coke, coal and alternative fuels. Since 2000, Cemex has co-processed over 0.25 million tons of waste in Egypt. The company will also install new waste co-processing and additional environmental equipment, thus reducing its emissions. Cemex inaugurated back in 2010 a new US$12 million dust filter.
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FLASHBACK News flow on CemWeek.com last two months (darker red shows higher news volume)
GLOBAL SPOTLIGHT Tracking the news flow of the global cement sector.
CW Group Meeting Agenda
The CW Group will be hosting and participating in a number of webinars and conferences. We invite you to join us on-line or in person at the events to discuss our views of the industry. CW Research & Analytics Webinars:
Alternative fuels and power as a new business model
October 7-8, 2013
Cement Business & Industry (CBI) India 2013
October 9-10, 2013
CBI Brazil & LatAm 2014 Cement & Lime Conference
February 5-6, 2014
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Caribbean Rim Cement Finance, Strategy & Trade Summit 2013
Fall, 2013
Panama City, Panama
Alternative fuels and power as a new business model
December 1011, 2013
Dubai, UAE
August 6, 2013 at 2:00 PM GMT
Conferences where the CW Group will be presenting: Solid Fuel Summit (SFS) India 2013
CW Group Hosted Executive Summits:
• • •
Hilton Mumbai International Airport Hotel Mumbai, India
•
Hilton Mumbai International Airport Hotel Mumbai, India
• •
Hilton Morumbi Sao Paulo, Brazil
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BUZZ TOP 15 STORIES 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
HeidelbergCement unit on track in Togo Votorantim elects former Holcim exec to its board India: HeidelbergCement sells Raigad grinding unit Cement prices on the rise in Zambia Uzbekistan plans to put up new cement plant by end of 2013 FLSmidth bags fresh order from Indian firm India: Opposition questions cement plant project FLSmidth receives order for cement plant in Africa Cementos Molins buys Cemex plant in Spain HeidelbergCement to continue expansion plans India: Vasavdatta Cement to burn plastic waste to power unit India: Jaypee to sell cement unit by year’s end Turkey: Cargotec wins contract for two road-mobile unloaders Holcim to slash spending in Spain India: MCL looking to build new cement plant
CEMWEEK.COM alternative average bags case cements cemex cent chairman china completed concrete consumption continue court crore data development director domestic economic energy equipment expand expansion export exports factory fuel general global growth holcim imports investment building government project increased materials india indonesia installed iran lafarge likely madras manufacturers national operations output pakistan plans plants port power profits program reached region research rise russia safety saudi sector shares support training transport value work
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2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
Lafarge CEO in Algeria to discuss cement market New mining projects in Spain discussed in European Parliament ThyssenKrupp may sell off rail, construction units Mexico mining production declined in March New railway system for Saudi Arabia Vulcan set to mine in Azusa Saudi traders say Nitaqat hurting construction India: Minister bats for sustainable construction China: Gezhouba inks deal with XCMG Concrete Concrete production increased in Ukraine Sandvik sets sights on India Equipment sales slow for CAT Quarry proposal turned down in Spain Italy: Construction materials market tumbles US: Builders express supply concerns
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M ct um ob Re e bai gis r 7 , In te -8, dia r To 20 da 13 y!
O
OctOber 7-8, 2013 | MuMbai, india HiltOn MuMbai internatiOnal airpOrt HOtel
the Solid Fuels Summit india 2013 is a focused executive-oriented meeting and networking opportunity for coal and petcoke industry professionals who are involved in the indian coal and petcoke sectors. the Summit will bring a special dual focus on business and industrial issues and the program will include topics such as: » » » » » » »
assessing india’s solid fuel needs: coal & petcoke Solid fuel opportunities beyond today – trinity of sectors Mining technology & maximizing productivity for coal reducing costs through better technology petcoke – a threat to indian coal? Fuel waste – trash or treasure? the international trade & bulk handling perspective
COal * PeTCOke * a lTeRnaTIve Fuels * Fly a sh
GMI
GLOBAL
Organized by gMi glObal witH tHe great SuppOrt FrOM cOalweek tHe event iS expected tO bring a FOcuSed grOup OF cOal and petcOke induStry prOFeSSiOnalS.
regiSter On-line at www.gMiFOruM.cOM Or eMail SaleS@gMiFOruM.cOM. yOu May alSO call uS in tHe uS at +1-203-516-7424