Displaying items by tag: Maintenance
Clinker is the new gold in Kenya
08 May 2024Kenya-based East African Portland Cement (EAPCC) made the news this week with the reopening of the company’s Athi River cement plant after a month-long shutdown. The closure was conspicuous because the company is gradually working towards increasing the integrated plant’s production capacity. The first phase of the maintenance and upgrade project saw the replacement of the production line’s kiln shell in September 2022. The current aim is to increase the unit’s cement production capacity to 1Mt/yr by mid-2026. The recent shutdown appears to have been a more normal annual renewal and repair job but EAPCC has used it as a promotional opportunity. Notably, a spokesperson for EAPCC described clinker as the “new gold” in a recent video explaining what was going on.
It’s an improvement on the financial trouble EAPC found itself stuck within in the late 2010s before the government ended up taking a controlling share in the cement producer. On this front local media reported in July 2023 that the government had found a 'strategic investor' to buy a 30% stake in the company. Nothing more has been said on this topic since then though.
The highlighting of the recent shutdown is likely to be a public relations exercise intended to project stability, but that focus on clinker is telling given that the government introduced its Export and Investment Promotion Levy in July 2023. This legislation imposed a 17.5% fee on imported clinker in order to encourage the local industry. Cement producers that rely on imported clinker - including Rai Cement, Bamburi Cement, Savannah Cement, Ndovu Cement and Riftcot - attempted to lobby against the levy but it remains in place. This business environment helps to explain EAPCC’s renewed focus on clinker production.
One company that stands to benefit from the levy is National Cement, producer of the Simba Cement brand and a subsidiary of Devki Group. It made the news at the start of April 2024 when its subsidiary Cemtech commissioned a 6000t/day clinker plant at Sebit in West Pokot. National Cement already operates an integrated plant near Athi River, south of Nairobi. However, hot on the heels of the West Pokot plant, it is already considering building another integrated plant in the north of Kitui County, to the east of Nairobi. As reported in the local press this week, Cemtech has submitted an environmental impact assessment for the project to the local authorities.
The country has two other clinker producers: Holcim subsidiary Bamburi Cement and Mombasa Cement. The former company announced at the end of 2023 that it had signed a contract to build solar plants at its integrated plant in Mombasa and its grinding plant in Nairobi. The deal was framed as a money saver but additionally it may have been in response to a less than reliable local grid. It also said that it was removing Ordinary Portland Cement (OPC) from its product line from the start of 2024. This move challenged expectations about sustainability initiatives outside of richer countries. Yet, considering how Bamburi Cement argued against the clinker levy, there might have been some commercial thinking here too in order to sell products that use less clinker. Finally, despite completing its divestment of Uganda-based subsidiary Hima Cement for US$84m in March 2024, Bamburi Cement reported a loss of US$2.99m in 2023 compared to a profit of US$1.36m in 2022. Although it reported a rise in turnover and operating profit, it appears that taxes and legal costs related to the sale of Hima dragged the company into a loss.
Graph 1: Rolling annual cement production in Kenya, 2019 - September 2023. Source: Kenya National Bureau of Statistics (KNBS).
It’s been a difficult business environment in Kenya over the last decade given the number of companies that have faced serious financial difficulties. This list includes ARM Cement, EAPCC and Savannah Cement. The last of these companies, Savannah Cement, is currently in administration and is trying to sell its integrated plant. Yet, rolling annual cement production in Kenya has remained above 9.5Mt/yr since early 2022. The government is sticking to promoting local clinker production, and companies like Bamburi Cement, EAPCC and National Cement are making investments of varying scales. The focus, for now at least, is on clinker production in Kenya.
East African Portland Cement resumes operations
03 May 2024Kenya: East African Portland Cement (EAPCC) has recommenced operations at its Athi River cement plant after a one-month shutdown for renovations and maintenance. The plant has undergone a US$3m upgrade to expand its capacity in order to meet the increasing regional demand for cement, anticipating an annual production of 1Mt/yr within the next two years. Before the upgrade, the plant’s capacity was 310,000t/yr.
Board chairperson Richard Mbithi said critical components used in cement production processes such as filter bags and refractory bricks were replaced during the upgrade. EAPCC also refurbished its grate cooler system, enabling the company to increase its production targets.
Mbithi said “With the finalisation of the plant refurbishment and the resultant improved production and efficiency, we are confident that the company will accomplish the production and revenue targets.”
The company undertook the first phase of maintenance two years ago and it involved the replacement of the kiln shell which was completed in September 2022. This led to improved clinker and cement production and resulted in a 38% increase in revenues, according to the Star Kenya.
Breedon Group reports first-quarter 2024 drop in sales
24 April 2024UK: Breedon Group's sales dropped by 5% year-on-year in the first quarter of 2024, according to a trading update from the company. It attributed this to macroeconomic uncertainty and unfavourable weather conditions in the UK. Sales volumes of its materials ‘softened,’ but prices remained ‘resilient,’ partly offsetting the decline. The quarter brought three new acquisitions, including the company’s first in the US. Two scheduled cement kiln shutdowns took place within budget and on schedule.
CEO Rob Wood said "We have laid good foundations for the remainder of the year: progressing pricing, pursuing efficiencies, completing two bolt-on acquisitions and launching our third platform by entering the US market. Although the economic landscape remains uncertain, I am confident our discipline and focus, coupled with our strong customer relationships, will see us deliver against our unchanged expectations for 2024."
Equatorial Guinea: A new five-year service agreement has been signed with SSB International Limited (SSBIL) to provide expertise and supervisory support for the operation and maintenance of Abayak Cement’s plant in Akoga. The plant, equipped with key technology including an OK™ Mill and a ROTAX-2® Kiln supplied by FLSmidth, has been largely idle since its installation in 2016 due to power supply issues. With recent investments in a new power plant and the reactivation of equipment, however, commissioning is underway and is expected to be complete by mid-2024.
Hama cement plant resumes operations after maintenance
25 March 2024Syria: The General Company for Cement and Building Materials has successfully restored Plant No. 3 in Hama province to operation, following comprehensive maintenance of its machinery and equipment. The maintenance, which began last January, was completed by the company’s engineering and technical teams.
General Manager Engineer Issam Al-Abdullah noted that the company is focused on developing its production processes to meet local cement demands. Upcoming maintenance work on Plant No. 2 is planned to enhance its production capacity to around 1000t/day.
Boral completes maintenance at Berrima plant
26 February 2024Australia: Boral's Berrima cement plant team has successfully concluded its annual kiln shutdown and maintenance period. The producer invested US$13.1m and 100,000 working hours over a period of three weeks. The project required coordination with 50 different contracting companies to undertake mechanical repairs and replace the kiln refractory, which is crucial for protecting the kiln shell from heat damage and ensuring operational safety. Employing Cement 4.0 technology and advanced diagnostic tools, the team efficiently identified the necessary repairs. About 300 employees and contractors were engaged in the specialist tasks, facilitating a rapid resumption of kiln operations.
Fujairah Cement Industries to temporarily suspend cement despatches from Fujairah cement plant
20 December 2023UAE: Fujairah Cement Industries has announced an upcoming temporary suspension of despatches of cement from its Fujairah cement plant, commencing on 1 January 2024. Sales will remain suspended until at least mid-February 2024 to the start of March 2024. During the suspension, the producer will carry out a ‘major’ refurbishment of the plant.
Death at cement plant in Kinta District
17 August 2023Malaysia: Police reported the death of a man at a cement plant in Kinta District on 16 August 2023. The 26-year-old contractor had been cleaning hardened cement from a silo through its manhole, when he fell in and was submerged by cement. Medical staff pronounced him dead after his arrival at hospital. Perak State Occupational Safety and Health Department has issued a stop-work notice to the contractor.
Cement plants in Kinta District include Aalborg Portland Malaysia’s Aalborg Perak plant, Malayan Cement’s Kanthan plant and Tasek Cement’s Tasek cement plant.
Contractor dies at Heidelberg Materials North America's Port Everglades cement terminal
07 August 2023US: Heidelberg Materials North America reported the death of a man at its Port Everglades cement terminal in Florida on 5 August 2023. Local press has reported that the body of the man was found inside equipment, where he is believed to have fallen. He was an external contractor who had been carrying out repair work. Authorities are currently investigating the tragedy.
Heidelberg Materials North America said "We are working closely with the appropriate authorities to ensure a thorough investigation into the cause of the accident."
East African Portland Cement Company to resume full-scale operations at Athi River cement plant
01 August 2023Kenya: East African Portland Cement Company (EAPCC) says that it is ready to resume full-scale cement production at its 600,000t/yr Athi River cement plant. The Standard newspaper has reported that the plant is currently operating at 50% capacity, following refurbishment. EAPCC replaced a 16m-long section of kiln shell in the plant's clinker line, at a cost of US$3.5m. Managing director Oliver Kirubai said that the company raised the funds through the sale of land located in Athi River.
Kirubai said "Our employees have cut back a lot, in a situation where we have been struggling even to pay their salaries. We are now back on our feet." He added "A number of companies owed us millions of Shillings. They have been ordered to pay us by the government. If they honour the agreement, the problem we are facing will be a thing of the past.”
EAPCC says that it expects the scale-up of production at the Athi River plant to help lower the cost of cement for its customers.