Displaying items by tag: Upgrade
India: Dalmia Bharat subsidiary Dalmia Cement has commenced commercial production of cement at the new 2.3Mt/yr production line of its Bengal Cement Works cement plant in Midnapore, West Bengal. The new line brings the plant’s total capacity to 4Mt/yr.
Chief operating officer Ujjwal Batria said, “To ensure that demand is met in a sustainable manner, we have deployed the latest machinery and technology at our Bengal Cement Works unit and will be aiming to produce 100% blended cement. This step is also in line with our commitment to become carbon negative by 2040.” He added, “Post the lockdown-led demand disruption, the cement sector has been continuously witnessing buoyancy across the country. This is largely led by revival in demand from the infrastructure and urban housing sectors, along with the demand from individual homebuilders and the government's rural housing schemes especially from east and central regions. Hence, the onset of commercial production at the Bengal Cement Works unit will enhance our ability to contribute towards nation building and Atmanirbhar Bharat, while also catering to the growing demand from the eastern and north-eastern states of the country.”
Guatemala: Mexico-based Cemex subsidiary Cemex Latam Holdings plans to install a new 1000t/day horizontal ball mill and support infrastructure including a dust collector and 3000t silo at its Puerto de San José grinding plant in Escuintia. Central America Data has reported the value of the work as US$16m.
Update on Peru: March 2021
24 March 2021Two fairly serious investments in Peru made the industry headlines this week. The first was Yura’s plans to upgrade its Arequipa cement plant at a cost of US$200m. The project will involve increasing the plant’s clinker production capacity as well as installing a new mill and a 4.3km conveyor. The second was the latest instalment in Cementos Interoceanicos’ long held ambition to build a plant. It has struck a deal with France-based Satarem to build a 1Mt/yr plant near Puno. The deal also includes Satarem buying a 30% stake in Cementos Interoceanicos and plans to construct two lime units as well.
Graph 1: Local cement sales in Peru, January 2020 to February 2021 compared to January 2019 to February 2020. Source: ASOCEM.
These projects follow a squeeze for the local industry due to coronavirus-related containment measures. Data from the Association of Cement Producers (ASOCEM) shows that cement sales collapsed during the lockdown to just 11,000t in April 2020 before recovering in the autumn. Total annual local sales fell by 17% year-on-year to 9.7Mt from 11.6Mt. Sales have also remained high in January and February 2021.
The experience from the larger cement producers mirror the data from ASOCEM. Cementos Pacasmayo’s sales revenue fell by 7% year-on-year to US$354m in 2020 and its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 21% to US$86.3m. Unión Andina de Cementos’ (UNACEM) income fell by 14% year-on-year to US$467m in 2020. Despite this, UNACEM managed to sign a deal to buy Cementos La Unión Chile for US$23m in December 2020. The purchase consists of a 0.3Mt/yr cement grinding plant and a 0.34Mm3/yr ready-mix concrete business with multiple concrete plants and trucks. UNACEM described Chile as its main clinker export destination and it holds concrete and precast subsidiaries in the country.
Yura’s general manager Ramón Pizá reportedly called his company’s plans a “vote of faith in Peru.” This is not an understatement considering the market shocks caused by coronavirus in 2020. The country implemented public health measures relatively early during the pandemic but still ended up with one of the worst death rates per capita in Latin America so far. As the British Medical Journal (BMJ) pointed out earlier this month, the timing was right but tragically the application of public health measures has been found wanting. Yet, the fundamentals for the Peruvian cement market are strong. Annual sales mounted from 2017 to 2019, and were showing signs of continuing this in early 2020 before the lockdown shut the market down. This growth pattern has continued so far in 2021.
IKN to equip new line at Qizilqumsement cement plant
24 March 2021Uzbekistan: Germany-based IKN has secured a contract for process integration and equipment design for a new kiln line at Qizilqumsement’s Qizilqumsement cement plant. The supplier’s remit includes the pyroprocessing line, preheater, kiln and cooler including ID fan, kiln drive and burners. It plans to use a six-stage preheater, the region’s first. Commissioning is scheduled for 2022.
Yura plans US$200m Arequipa cement plant upgrade
18 March 2021Peru: Yura plans to upgrade its Arequipa cement plant at a cost of US$200m. The planned upgrade will increase the plant’s clinker production capacity to 8000t/day from 5000t/day. The La República newspaper has reported that the sustainability-enhancing expansion involves the installation of a new vertical roller mill, packing, storage and dispatch equipment and a 4.3km raw materials conveyor. General manager Ramón Pizá called the modernisation a “vote of faith in Peru.”
Votorantim Cimentos to upgrade Corumbá cement plant
16 March 2021Brazil: Votorantim Cimentos has announced plans to upgrade cement production at its 0.2Mt/yr integrated Corumbá cement plant in Mato Grosso do Sul. The Correio de Corumbá newspaper has reported the value of the planned work as US$2.85m. The investment is intended to improve the plant’s grinding line, modernise an electrical substation system, make changes to its mining operations and generally focus on optimising energy consumption. It also plans to train employees and work on community outreach activities.
Ramco Cements plans capacity expansion
15 March 2021India: Ramco Cements says that its 16Mt/yr installed production capacity will increase to 20Mt/yr during its 2022 financial year that starts in April 2021 with the completion of a new plant at Kurnool in Andhra Pradesh and a third production line at its Jayanthipuram plant. The original plan to complete the work by the end of March 2021 was delayed by the coronavirus pandemic, according to the Hindu newspaper. The new integrated plant at Kurnool will have a clinker capacity of 2.25Mt/yr and a cement production capacity of 1Mt/yr. The third production line at the Jayanthipuram plant will have a production capacity of 1.5Mt/yr, increasing the plant’s total to 4.5Mt/yr.
The producer also plans to complete Phase 3 of the installation of a waste heat recover (WHR) unit at the Jayanthipuram plant. Phase 1 (9MW) was commissioned in September 2020, Phase 2 (9MW) in February 2021 and Phase 3 (9MW) is scheduled for after the third line is complete. So far the first two stages have reduced the cement plant’s power consumption from a thermal power plant by 15MW. The project has cost around US$30m.
Ramco Cements has spent US$345m out of its planned US$470m capital expenditure in the 2021 financial year, which ends on 31 March 2021.
Argentina: Loma Negra has completed the replacement of an electrostatic filter at its integrated Zapala cement plant in Neuquén with a new baghouse filter. The Gaceta Mercanil newspaper has reported that the company said that the new product has the benefit of being able to work without an electricity supply. Additionally, it is able to operate at higher inlet temperatures than the previous filter, reducing water consumption by approximately 50%. Work began in early 2019 and the total investment cost of the project was US$7m.
Loma Negra reports adjusted earnings growth in 2020
12 March 2021Argentina: Loma Negra’s consolidated adjusted earning before interest, taxation, depreciation and amortisation (EBITDA) grew by 3% year-on-year to US$146m in 2020 from US$143min 2019. Sales fell by 13% to US$458m from US$526m and net profit rose by 107% to US$125m from US$60.6m. Consolidated cement, masonry and lime sales fell by 6% to 5.2Mt from 5.5Mt, but rose by 27% in the fourth quarter of 2020 to 1.6Mt from 1.3Mt. The company noted a fourth-quarter increase in bulk cement sales of 7%. Bagged cement also made a ‘robust recovery’ from the negative effects of the strict Covid-19 lockdown in the second quarter of 2020, according to the company. It attributed the rise to the partial lifting of lockdown for private works. Throughout the year, the group decreased its net debt by 81% to US$22.8m from US$119m.
In 2020 the producer continued with its L’Amali cement plant expansion and divested its Paraguayan asset. All detailed engineering is reported complete and all equipment and materials supplies have been delivered to the site. Commissioning and start-up has been completed at the crushing section and a new primary crusher is fully operational. Commissioning and start-up at raw mill department and clinker line are in progress.
Chief executive officer Sergio Faifman said, “We finished the year in a very good way when considering the unprecedented scenario that we were presented with from the beginning of the year. At that point in time, the fragile macroeconomic environment in the country was impacted by the emergence of the Covid-19 pandemic, making the future uncertain and blurred. More than ever, it was in that challenging context that we lean on our competitive strengths.” He added, “At the beginning of the crisis, we focused on managing our cash position and cash generation, and we sought to optimise our productive structure. As the market began to pull in demand, we relied on our value chain to speed up sales, especially of bagged cement. All of this allowed us to expand our profitability, and enhanced our already solid balance sheet.”
Lehigh Hanson and Fortera to install carbon capture and storage system at Redding cement plant in California
12 March 2021US: Lehigh Hanson has signed a collaboration agreement with materials technology company Fortera. Under the agreement, the companies will establish a carbon capture and storage (CCS) system at the producer’s 0.8Mt/yr integrated Redding Cement plant in Shasta district, California. The system will produce a cementitious material for use in concrete production. The material will be the first of its kind to be produced at a cement plant.
"This collaboration with Lehigh Hanson will prove the commercial scalability, the quality of the final product, and the competitive economics of the Fortera process," said Ryan Gilliam, chief executive officer and co-founder of Fortera. He added that the Fortera process (ReCarb) has been designed to utilise the existing cement infrastructure, from the quarry to the kiln, but with less CO2 emissions, lower energy, and lower processing temperatures, leading to 60% lower CO2 emissions per tonne of product.