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Vietnam: The General Department of Vietnam Customs has reported total cement and clinker exports in the first ten months of 2020 of 31.6Mt, up by 19% year-on-year from 26.5Mt in the corresponding period of 2019. The Viet Nam News newspaper has reported that the value of exports rose by 7% to US$1.78bn. China bought 18Mt, worth US$611m, corresponding to 57% by volume and 34% by value of Vietnam’s cement and clinker exports.
In October 2020 Vietnam exported 3.58Mt of cement, down by 18% month-on-month from 4.37Mt in September 2020, at a total value of US$142m, down by 12% from US$160m.
Lucky Cement orders three new Wärtsilä engines for Pezu cement plant 26 November 2020
Pakistan: Lucky Cement has placed an order for three 10MW 34DF dual-fuel engines for its Pezu cement plant in Khyber Pakhtunkhwa province from Finland-based Wärtsilä. The engines are capable of operating on various fuels but will be fuelled primarily by natural gas. They have been ordered to provide additional power for the unit’s captive power plant due to an increase in cement production capacity. The orders were placed in April, August, and November 2020. No value for the order has been disclosed.
“It is important for large cement producers to have operational flexibility to run the power plant on multiple fuels in case the gas supply is interrupted, or whenever otherwise required. Wärtsilä’s multi-fuel power generating technology provides the kind of flexibility that we need for an efficient and reliable power supply. The cement plant is relying purely on the power plant with Wärtsilä gensets supplying the power,” said Syed Noman Hasan, executive director at Lucky Cement.
In addition to the engines, Wärtsilä is also supplying waste heat recovery boilers needed to generate steam required for the steam turbines for electricity generation in combined cycle mode. The first Wärtsilä engine is being delivered in November 2020 and is expected to become fully operational in January 2021. The remaining two engines will be delivered by March 2021 and will become operational in May 2021.
The cement plant already uses ten Wärtsilä dual-fuel engines in its on-site power plant. The need for the new engines follows on from an increase in cement production capacity.
US: The Portland Cement Association (PCA) has announced the winners of the 2020 Safety Innovation Awards. The awards recognise ‘creative safety-enhancing projects in the cement industry’ across five categories.
Buzzi Unicem USA’s Joliet, Illinois cement terminal won the distribution award for its barge entry ladder, which reduced fall hazards associated with unloading cement from barges. Ash Grove Cement’s Durkee, Oregon cement plant won the general facility award for its burner pipes cart upgrade, which reduced safety hazards associated with moving cement kiln burner pipes. Further hazard reductions were made by Buzzi Unicem USA’s Chattanooga, Tennessee cement plant’s finish mill access platform and the Monarch Cement Company’s Humboldt, Kansas cement plant’s noise reduction upgrade, which jointly won the milling/grinding award. The pyroprocessing award went to GCC of America’s Pueblo, Colorado plant for its semi-automated clinker feeding system, while the quarry award went to Ash Grove Cement’s Louisville, Nebraska plant for its dump box hardened material extraction tool.
PCA president and chief executive officer (CEO) Michael Ireland said, “Our industry prioritises the safety of its employees above all else. We are proud of our members’ efforts to pursue excellence in safety innovation for their company and their colleagues.”
Update on France: November 2020
Written by David Perilli, Global Cement
25 November 2020
There were mixed feelings evoked by HeidelbergCement’s good news last week that its French subsidiary Ciments Calcia is to set to spend Euro400m on a modernisation project. Sadly, this came with the bad news that the integrated plants at Gargenville and Cruas will be downgraded into a grinding plant and a terminal respectively, and there will be a review of the company’s headquarters in Guerville. All of this will cut 160 jobs but create 20 new ones.
Make no mistake, this is serious money to invest. Euro300m alone will go towards an upgrade of the integrated Airvault cement plant in the former Poitou-Charentes administrative region. HeidelbergCement didn’t say it in its press release but French press reported that the pyroprocessing line at Airvault will be rebuilt starting in 2022 with commissioning scheduled for 2025. If correct then this certainly suits an investment on this scale for a single plant. Smaller investments in the region of Euro25 – 50m were also said be earmarked for the integrated plants at Bussac-Forêt, Beaucaire and Couvrot. These are serious commitments to HeidelbergCement’s production base in France.
Generally speaking, the French cement and construction market has done as well as expected for a country forced to implement two coronavirus lockdowns so far in 2020. Half-way through the year the major cement producers were reporting sales declines of around 10% year-on-year with business picking up again over the summer. Vicat, for example, reported a 9% fall in sales volumes in the first half followed by ‘solid business growth’ in June 2020. LafargeHolcim, CRH and HeidelbergCement all reported a similar situation for their local subsidiaries.
Looking at the wider construction industry, in October 2020 analyst company GlobalData stuck by its forecast of a contraction of construction output by 11.6% in France in 2020. It noted a 35.5% quarter-on-quarter rebound in the third quarter, although it reckoned output was still down by around 5% in the quarter year-on-year, using French National Institute of Statistics and Economic Studies (INSEE) data. With a second national lockdown initiated in late October 2020, it said that INSEE expected a contraction in the fourth quarter of 2020 even with construction sites being allowed to stay open. This follows a peak of cement production above 20Mt in the late 2000s before hitting a low of around 15.5Mt in 2015 and a gradual recovery since then, according to data from the French cement industry union (SFIC).
Ciments Calcia’s upgrade at Airvault is noteworthy for the whole of Europe because it is one of only a few new pyroprocessing line projects in the last decade. The last major one was the new 4000t/day line at HeidelbergCement’s Burglengenfeld plant in Germany that was commissioned in 2018. The trend since then has generally been one of integrated plants slowly closing as markets shrank following the 2008 financial crisis, international clinker levels boomed and environmental measures tightened. Dominik von Achten, chairman of the managing board of HeidelbergCement, addressed this last point directly with the announcement of the Airvault project when he said, “This is why we focus our initiatives on the main CO2-emitting plants in France.” The competitors to the larger established cement producers in France are certainly thinking about CO2. Alongside the general European trend of fewer new clinker production lines has been rise in France of the smaller cement producers with grinding and/or reduced-clinker factor models like Cem’In’Eu, Hoffmann Green Cement Technologies and Ecocem. Anyone spending Euro300m on a clinker kiln spewing out CO2 would do well to consider how much the CO2 price might be in fifty years time.
James Brotherton appointed as chief financial officer designate of Breedon Group
Written by Global Cement staff
25 November 2020
UK: Breedon Group has appointed James Brotherton as its chief financial officer (CFO) designate with effect from 1 January 2021. He was previously the CFO of Tyman between 2010 and 2019, prior to which he was Director of Corporate Development for five years. Prior to Tyman, Brotherton worked in investment banking roles at Citi and HSBC, after qualifying as a chartered accountant at Ernst and Young. He is currently a director of the Quoted Companies Alliance (QCA) and represents the QCA on the Takeover Panel.
As announced previously, Rob Wood, Breedon Groups' current Group Finance Director, will succeed Pat Ward as chief executive officer (CEO) upon Ward’s retirement during 2021. It is anticipated that Brotherton will be appointed to the board as CFO at that point to ensure an orderly transition.