25 April 2019
UltraTech Cement holds profits as energy costs mount 25 April 2019
India: UltraTech Cement’s net sales rose by 20% year-on-year to US$5.24bn in its 2019 financial year from US$4.35bn in the 2018 reporting period. Its profit after tax grew by 10% to US$347m from US$317m. Its power and fuel costs increased by 33% to US$1.20bn from US$903m.
The cement producer said that production stabilised at its integrated plant in Manavar, Madhya Pradesh, reaching a clinker production capacity utilisation rate of 100% in the quarter that ended on 31 March 2019. It worked on the plants of its UltraTech Nathdwara Cement subsidiary to reach a production utilisation rate of 72% in March 2019. Both plants were acquired from Binani Cement in late 2018.
The plants it acquired from Jaypee Associates in 2017 are running at a capacity utilisation rate of 82%. A planned shutdown was undertaken at its Bela plant in Madhya Pradesh plant for cost improvements. The company intends to install waste heat recovery (WHR) units at these plants. Work on the 4Mt/yr Bara grinding unit is on track and the first phase of the expansion is expected to be commissioned during the first quarter of its 2020 financial year.
Italy: Colacem’s Spoleto cement plant has been idled. The kiln has been shut down and quarrying work suspended, according to La Nazione newspaper. The integrated plant was acquired by Colacem from Cemitaly in early April 2019. Union representatives from the plant have asked Colacem what its business plans and staffing levels will be. Currently the plant employs 80 people.
Ukraine: Data from the State Statistics Service shows that cement production grew by 23% year-on-year to 1.53Mt in the first quarter of 2019. Production accelerated in March 2019, according to the Ukrainian News Agency. Annual cement production fell by 1% to 8.93Mt in 2018.
Dominican Republic: Cementos Argos says it had broken its production record at its 0.54Mt/yr Najayo grinding plant. The plant produced 50,194t in one month, its highest rate in 20 years. The Colombian company operates two ready-mix concrete plants and a cement grinding plant in the country.
Senegal: The Ministry of Commerce says that a shortage of cement should be averted by the end of April 2019. A breakdown in the clinker production line at the SOCOCIM plant in Rufisque has led to reduced supplies, according to Senegal Direct. The subsidiary of France’s Vicat is arranging imports of clinker in the meantime.
Vietnam: Data from the Building Materials Department of the Ministry of Construction show that cement exports rose by 0.9% year-on-year to 8.55Mt in the first quarter of 2019. They had a value of US$865m, according to data from the Viet Nam News newspaper.
Saudi Arabia: Al Jouf Cement has signed a non-binding memorandum of understanding with China’s Riga Company to convert its second production line to produce white cement. The agreement will last six months.
Iraq: Al Shumookh Lucky Investments, a subsidiary of Pakistan’s Lucky Cement, has ordered a power pant from Finland’s Wärtsilä for its Najmat Al-Samawa cement plant. The equipment is scheduled for delivery towards the end of 2019, and the plant is expected to become fully operational during the third quarter of 2020. No price for the order has been disclosed.
The power plant will operate on two Wärtsilä 32 engines running on locally-available heavy fuel oil (HFO) with diesel as a back-up fuel. The engine is designed to operate with reduced fuel and water consumption in hot climates.
RHI Magnesita raises prices by 5% 25 April 2019
UK: Refractory manufacturer RHI Magnesita has increased its prices for industrial and steel users by 5%. It says the rise is a consequence of the persistent increase in operating, raw materials, manufacturing, environmental and regulatory costs. The increase has been applied to the whole product range including basic (magnesia and dolomite based) and non-basic products, varying in a range of 3% to 20%. Customers have already started to be informed accordingly.
The company said that global scarcity of raw materials was still evident, mainly due to Chinese environmental regulations that have restricted mining and processing. Since 2017 there has been a ‘step’ change in refractory raw material production as China has implemented new environmental standards, which adjusted the level of production to global standards. Consequently, the refractory industry has been faced with supply shortages, leading to elevated raw material prices especially in higher grade dead burned and fused magnesia. This situation is expected to continue in 2019 although in the medium term prices are expected to fall below levels seen before 2017.
Fuchs opens new plant in Suzhou 25 April 2019
China: Germany’s Fuchs Petrolub has opened new plant in Wujiang, Suzhou. The Euro46m unit replaces a plant in Shanghai. Work on the plant started in 2017.
The new 80,000m² plant has a capacity of 100,000t/yr in phase one, almost double the capacity of the Shanghai plant. The automated high-bay warehouse has a capacity of 12,000 pallets. The production portfolio includes automotive oils, industrial oils, metalworking fluids, corrosion preventatives, rolling oils, coating materials and products for the forging industry. Expansion in phase two is at the development stage. Fuchs is also expanding its offices and laboratories at the site in Shanghai.