Displaying items by tag: Plant
Turkey: HeidelbergCement and Sabancı Holding subsidiary Akçansa has used the coronavirus lockdown period to install a new burner at its Büyükçekmece cement plant in Istanbul, where production has been suspended due to the outbreak. FCT Combustion supplied the burner, which it said will improve ‘combustion, emissions control and clinker quality.’
Akçansa will undertake a burner upgrade on its second kiln during a scheduled stoppage in mid-2020.
Aïn Touta Cement awarded ISO certifications
27 May 2020Algeria: The Aïn Touta Cement (SCIMAT) plant near Batna has been awarded two conformity certificates, according to the Ministry of Industry and Mining. The subsidiary of Public Industrial Cement Group of Algeria (GICA) has earned ISO 45001: 2018, relating to the occupational health and safety management system, and ISO 50001: 2018, related to energy management.
Philippines: Holcim Philippines has announced its full return to cement production across all integrated plants after it resumed operations at its 3.3Mt/yr Bulacan, Norzagaray plant, 2.1Mt/yr Davao, Ilang plant and 1.2Mt/yr La Union, Bacnotan plant. The company’s 1.8Mt/yr Lugait, Misamis Oriental plant remained open throughout the coronavirus lockdown. It says that it started to reopen plants and terminals from mid-March 2020 after national and local governments began to ease the lockdown.
Holcim Philippines president and chief executive officer (CEO) John Stull said, “We are ready to continue supporting our partners nationwide as they build important structures and contribute to reinvigorating the economy. Holcim Philippines is determined to ensure the wellbeing of our people, communities and business partners in our operations consistent with our core value of health and safety. Our company is also ready to share our expertise on this area to government and private sector partners to further contribute to the recovery efforts.”
Russia: Iskitimcement has announced the beginning of CEM-II ground granulated blast furnace slag (GGBFS) cement at its Iskitimcement plant in Novosibirsk Oblast. Regional Weekly News has reported that the cement will be used in road base concrete production and soil reinforcement. Iskitimcement says that the cement has high frost, abrasion and impact resistance and strength of over 5.5MPa. It will sell the cement, the seventh type produced at the plant, in 25kg, 50kg and 1t bags.
Uzbekistan: Namangan Cement has announced the beginning of work at its 0.3Mt/yr integrated cement plant in Namangan region on a second line to boost the plant’s capacity to 1.2Mt/yr. The National News Agency of Uzbekistan has reported that the project will be completed in late 2021, creating 250 jobs. It will cost US$49m, of which Namangan Cement will provide US$14m directly, with the remaining US$35m taken on loan from Hamkorbank.
Belarus: Krasnoselskstroymaterialy has announced that its US$7.8m refuse-derived fuel (RDF) plant at its 1.6Mt/yr Krasnoselskstroymaterialy plant will be completed in September 2020. The plant is installed with equipment worth US$4.5m from Czech suppliers. The Ministry of Construction and Architecture has said that waste from the Grodno Recycling and Mechanical Sorting Plant will replace Belarusian peat and Russian coal as the cement fuel in the plant’s kilns, fulfilling Krasnoselskstroymaterialy’s goals of renewability and national self-reliance.
Ministry of Construction and Architecture energy conservation head Sergey Nikitin said, “The transition to RDF will create an opportunity to reduce the cost of cement production in the future, strengthen the financial and economic situation of the Krasnoselskstroymaterialy enterprise and create additional competitive advantages over producers operating on traditional fossil fuels.”
Canada: Votorantim Cimentos subsidiary St Mary’s Cement has completed a 30m-high stack extension at its 0.8Mt/yr integrated St Mary’s plant in Stonetown, Ontario. The Canadian Press newspaper has reported that the upgrade is a response to increased odour complaints from Stonetown residents.
Votorantim Cimentos St Mary’s plant manager Jose Soraggi said, “Growing along with the community also means adapting along with it. We consider ourselves fortunate to maintain good relations with local residents and the town and to serve as an integral part of the business community in St Marys and Perth County. We take every opportunity to hear from our constituents and find solutions toward a positive and mutually beneficial future. The stack extension is an excellent example of that.”
Chinese expansion in East Africa
20 May 2020Huaxin Cement’s deal to buy ARM Cement’s assets in Tanzania has reportedly completed this morning. The Chinese cement producer will pour US$116m into Maweni Limestone to settle its liabilities and add another US$30m to complete plant construction and an upgrade, according to Reuters. Kenyan-based ARM Cement operates an integrated plant at Tanga and a grinding plant at Dar es Salaam.
Given the state of the world at the moment due to coronavirus the timing seems almost prophetic. There have been plenty of jingoistic warnings in Western media about renewed Chinese global dominance in the wake of the crisis. However, this agreement dates back to at least September 2019 when it was publicly announced, well before the current health scare. This is part of the Chinese expansion plan in Sub-Saharan Africa that’s been happening informally and formally since at least 2013. ARM Cement has seriously suffered since 2017 when cement demand fell in Kenya, a coal import ban in Tanzania caused production issues at its Tanga plant and increased competition hit both countries. It entered administration in the summer of 2018 and previous owner Pradeep Paunrana has been fighting PricewaterhouseCoopers’ attempts to sell the business to local rival National Cement. In some respects the timing of this deal may also be bad for Huaxin Cement given that it’s just suffered a 36% year-on-year drop in sales revenue to US$542m in the first quarter of 2020, related to the coronavirus outbreak. If the company can’t absorb this through the rest of the year then it might have a problem.
The real trend here in Chinese expansion strategy by its cement sector is a move from imports, building plants and co-financing projects to outright asset acquisition. This isn’t the first example either. West China Cement completed its purchase of a majority stake in Schwenk Namibia for US$104m in January 2020. This gave it control of Ohorongo Cement. Other recent Chinese moves in Sub-Saharan Africa include the supply of a modular grinding mill in Guinea by Sinoma and the competition of construction of a 1Mt/yr integrated plant in Lubudi Territory in Democratic Republic of Congo by another CNBM subsidiary, Tianjin Cement Industry Design and Research Institute.
An outlier from the more ‘traditional’ Chinese routes of either supplying equipment and/or co-financing cement plants in Africa has been the CNBM/Sinoma plan to build a 7Mt/yr ‘mega’ plant in Tanzania. Once completed it will nearly double local clinker production! Unsurprisingly, when it was first announced it was pitched towards the export market. Cement producers in East Africa might do well to remind themselves what has happened in Egypt since the 13Mt/yr government/army-run El-Arish Cement plant at Beni Suef opened in 2018: the over-supplied market collapsed. Together with the Huaxin Cement purchase, once the CNBM project completes, Chinese companies will own the majority of cement production capacity in Tanzania.
Looking at Sub-Saharan Africa, Chinese cement producers look set to benefit from any potential economic realignment following the coronavirus pandemic due to their conservative approach in expanding overseas. By investing cautiously and generally avoiding large-scale international acquisitions and mergers they have insulated themselves relatively well from any potential economic crisis. One weakness though is a reliance on the strong Chinese domestic market. If, say, it declines over a longer period due to the coronavirus crisis or ever reaches more ‘normal’ per-capita cement consumption figures then expanding too slowly overseas might look like the wrong strategy in retrospect. Yet, if western competitors start retreating further then the temptation to start to buy assets in bulk may grow. Another risk is how badly the coronavirus outbreak hits countries in Africa. The combination of poor healthcare systems, younger populations and warmer climates make it extremely unpredictable. Fortune may favour the bold but slow success seems to be working well for Chinese producers so far.
Tanzania: Huaxin Cement has announced the completion of its acquisition of Kenya-based Athi River Mining (ARM) Cement’s Tanzanian subsidiary Maweni Limestone. Reuters has reported that Huaxin Cement will invest US$30m in completing upgrades to the company’s plants in addition to an investment of US$116m to settle Maweni Limestone’s debts.
Vietnam: Lam Tach Cement has upgraded Kiln 1 of its integrated cement plant with a new Turbu-Flex burner supplied by FCT Combustion. The upgrade follows the successful installation of an FCT Combustion Turbu-Flex burner in Kiln 2 of the plant in late 2019.