September 2024
Najran Cement takes US$3m hit on stopping production line 16 February 2018
Saudi Arabia: Najran Cement says that the financial impact of temporarily stopping its third production line and reopening its second production line will be around US$3m. The cement producer intends to sell stock from inventory to mitigate the cost.
Al Jouf Cement renews export licence to 2019 16 February 2018
Saudi Arabia: Al Jouf Cement has renewed its export licence for one year. The Saudi cement producer received the licence on 15 February 2018, according to Mubasher. The licence will end in February 2019 and any financial impact will be announced subsequently.
Hail Cement renews power plant operation deal with Wärtsilä 16 February 2018
Saudi Arabia: Hail Cement has renewed its three-year asset management agreement with Finland’s Wärtsilä for the power plant at its Turbah plant. Wärtsilä provides guarantees for the performance of the power plant and ensures the reliability and availability of its operations. The operations of the power plant are remotely monitored from a Wärtsilä Expertise Centre for real-time data gathering and analysis. The agreement, signed in November 2017, is already the second renewal of Wärtsilä’s service agreement for the power plant in Turbah, the first agreement being signed in 2012.
“Wärtsilä has been responsible for the full operation and maintenance of our power plant in Turbah for about six years now. We have been satisfied with its flexibility, quality of service and emphasis on safety, and are happy to continue our co-operation with them,” said Matar Al Zahrani, chief executive officer (CEO) of Hail Cement.
The agreement covers the operation and maintenance of Hail Cement Factory’s power plant, including the day-to-day operation of the power plant, preventive and predictive maintenance as well as plant operations manpower, health and safety management. The 53MW base load power plant is equipped with seven Wärtsilä 32 engines and provides energy for Hail Cement Company’s cement factory as well as for the nearby residential area.
Cheetah Cement imports clinker from China 16 February 2018
Namibia: Cheetah Cement has imported 40,000t of clinker from China via the Port of Walvis Bay. The clinker will be transported by truck to the cement producer’s plant in Otjiwarongo, according to the Namibian Sun newspaper. The company is a joint venture between China’s Asia-Africa Business Management and Whale Rock Cement. Its plant was reported ‘complete’ in late 2017 but construction work continued into January 2018.
HeidelbergCement sells Lehigh White Cement stake 15 February 2018
US: HeidelbergCement has announced that its subsidiary Lehigh Cement Company has signed an agreement to sell its 51% position in Lehigh White Cement Company to the minority shareholders Aalborg Cement Company and Cemex. Closing of the transaction is subject to customary conditions and is expected during the first quarter 2018. Authorisation by the Antitrust Authority has already been obtained.
Lehigh White Cement Company operates two plants in Waco, Texas and York, Pennsylvania with a combined production capacity of approximately 0.26Mt/yr.
“As a niche product with small volumes, the standalone production of white cement does not fit to the strategic focus on efficiency of HeidelbergCement,” said Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “The disposal is part of our global portfolio review and optimisation with the goal to generate additional cash flow in order to support our disciplined growth and increase shareholder returns.”
Cemex, via its US subsidiary, will increase its stake from 24.5% to 36.75% when the deal is completed. It will pay US$34.0m. Cementir, via Aalborg Cement, will pay US$107.m for the purchase of a further 38.75% stake. This will take its total share to 63.25% once the deal goes through.
"This acquisition gives us the opportunity to enter the direct management of assets in the US in a segment, that of white cement, which is our core business, strengthening our global leadership consistent with our development strategy," commented Francesco Caltagirone Jr, President and chief executive officer of Cementir Holding.
Shree Cement commissions Bangur grinding plant 15 February 2018
India: Shree Cement has commissioned its new cement grinding unit at Bangur, Rohi Udaipur Udasar in Rajasthan. The plant has a grinding capacity of 3.60Mt/yr.
Trucker strike could affect Padeswood 15 February 2018
UK: Drivers working for Hanson Cement are set to take strike action over what they have termed a ‘very unsatisfactory’ pay deal offer. The action is set to take place on one shift covering 26 - 27 February 2018 and will hit deliveries to and from the Padeswood plant near Mold, Wales. About 240 workers voted by 89% for strike action over the two-year pay deal.
The union Unite and the firm's management are holding last-ditch talks today (15 February 2018) in a bid to reach a settlement to avert strike action. The company is part of the HeidelbergCement Group.
The deal on offer is for a 2% pay increase from 1 January 2018, and a further increase in 2019 linked to inflation but capped at 3%.
Under the action drivers will also not spend overnights in their vehicles or use their cab phones between 26 February - 20 May 2018. They will withdraw ‘goodwill’ for the same three month period, i.e. not training of new or agency drivers.
Unite national officer for road transport Adrian Jones said, "Our members regard the two-year pay deal on the table as very unsatisfactory, given the current rate of inflation and soaring cost of living. The proposals also don't reflect the strong contribution that they make to the company's profitability.”
Hanson Cement said it had made a fresh 2.5% offer for 2018 and said further negotiations will take place. He added that they were hopeful about reaching a settlement that would avert strike action.
Lafarge Zimbabwe to expand quarry 15 February 2018
Zimbabwe: Lafarge Zimbabwe is looking to expand its operations as it is set to commence exploratative drilling for lime within the next two months. It already has two mining operations where limestone is extracted at Mbubu in Mashonaland East Province and Sternblick quarry in Harare.
The company told local press that exploratative drilling was anticipated to commence in April 2018. This comes as its environmental impact assessment for limestone exploration drilling in Pfura Rural District was approved. The company has contracted Bumira Environmental Consultants to perform the environmental assessment.
Innovations in industrial carbon capture 14 February 2018
Lhoist’s Jean Marbehant pretty much summed up the bind the cement and lime industries face from the tightening COP21 climate agreement when he said, “We produce CO2… and our by-product is lime.” He made the comment at a ground breaking event that HeidelbergCement hosted this week for a new carbon capture pilot project at the CBR Lixhe cement plant in Belgium. The project with the Low Emissions Intensity Lime And Cement (LEILAC) Consortium will test Australian company Calix’s direct CO2 separation process at an operational cement plant for two years at a pilot level scale.
Previously the technology has been used by Calix in the magnesite calcining sector in Australia. Now it will be trialled at 10t/hr of raw material for cement production and 8t/hr of ground limestone in a 60m tall direct separation reactor that is about to be built next to the cement plant’s pre-heater tower. The process has a target to capture up to 95% of process CO2 emissions. Construction is scheduled to be completed in 2018 and then followed by two years of operation and testing until the end of 2020. At this point the Euro12m funding ends but the next steps, if agreed, would be to test the process at a commercial scale for lime production and a large scale demonstration at a cement plant by 2025. Full scale commercial application at a cement plant would then happen by 2030.
The Innovation in Industrial Carbon Capture Conference was built around the various carbon capture initiatives that HeidelbergCement is involved with. The other big pilot is the oxyfuel project it is running with LafargeHolcim and the European Cement Research Academy (ECRA). As ECRA’s Volker Hoenig explained, this project is now set to move to the pilot scale at two cement plants in 2020 at a cost of Euro90m. The plants, in Italy and Austria, have been chosen so that the testing can start at a ‘simple’ plant and then move to a more complicated one. The former site, Colleferro, has a spare unused kiln that doesn’t use alternative fuels, making the testing less complicated. The latter, Retznei, does co-process alternative fuels and it also has a kiln bypass system. It’s also worth noting that Calix’s direct separation process is intended to be compatible with an oxyfuel kiln. Other technologies were also previewed at the conference such as the Cleanker calcium looping project, the CO2MIN mineral carbonation project, the Carbon8 process to make aggregates from flue gas and HeidelbergCement’s experiences with growing microalgae.
The event to mark the start of the pilot was an optimistic one but the cement and lime producers like Jean Marbehant have no illusions about the cliff face-steep challenge that meeting the CO2 emissions reduction targets the Paris agreement potentially demands. One slide Marbehant discussed in his presentation placed the CO2 marginal abatement cost for carbon capture at Euro90/t. However, since the European Union (EU) Emissions Trading Scheme (ETS) currently places the cost of CO2 at Euro9/t the real question about the future of carbon capture is about who is going to pay the bill. Albert Scheuer, a board member of HeidelbergCement, made it clear how his company thinks the cost should be divided when he said that its end product was concrete and he explained just how much cement and concrete everyone uses in their lifespan. He may not have said that we all need to pay but he certainly made it feel that way. The future of carbon capture it seems may be a bit like a group of friends awkwardly deciding how to split the bill after a meal.
One speaker at the LEILAC event used the phrase ‘no silver bullet’ to describe how industrial CO2 emissions could be cut and how Carbon Capture and Storage (CCS) might be used. Perhaps more tellingly though has been the emergence of a new acronym that seems to be doing the rounds at the European Parliament, of ‘Carbon Capture and Something.’ That ‘something’ here is of critical importance as it can either put up or decrease the price that CCS will add to cement production. So, whilst moving to Carbon Capture and Something might suggest that legislators are starting to get realistic about what carbon capture might actually be able to do, it might also indicate a naïve lack of understanding of how hard cutting CO2 emissions is from essential industries that produce CO2 from their core process.
The challenge for cement producers in this kind of environment is deciding how far they should go towards exploring CO2 reduction strategies whilst governments are not being precise about how they intend to meet their targets. Going first might bring an innovator advantages if the legislation toughens up, but the early cost is high. HeidelbergCement and others are definitely doing ‘something’ but commercial applications are at least a decade away at current funding levels. And that timescale doesn’t include rolling out the new technologies across the entire industry. Despite this it was reassuring to hear the director of the European Commission’s Directorate-General for Climate Action say that his outfit didn’t want to reduce cement production, only CO2 emissions. This was ‘something’ cement producers want to hear.
Pamela Gaul appointed as director of marketing for Plibrico 14 February 2018
US: Plibrico, a single-source supplier of refractory products and solutions, has appointed Pamela Gaul as its director of marketing. She will be responsible for directing all activities related to the strategic development and implementation of marketing initiatives for the organisation.
Gaul previously worked for RR Donnelley (RRD), where she served as a Senior Director of Marketing and Business Development. Much of her career has been spent with the marketing services division of RRD, where she held various marketing positions of increasing responsibility. Prior to RRD she held marketing positions with Riso and Canon Solutions America.