September 2024
Nepal: Annapurna Cements has started test production at its new plant in the Sunsari-Morang Industrial Corridor. The US$5.8m plant has a production capacity of 12000bags/day of Portland Pozzolana Cement (PPC), according to the Kathmandu Post. Commercial production at the site is expected to start by the end of June 2017. The plant will import raw materials from India and it plans to sell its products initially in Provinces One, Two and Three.
UAE: Salem Al Shehi, a member of the Federal National Council, has called for stricter measures to mitigate emissions from cement plants and other industrial production units. The representative from Ras Al Khaimah has suggested that these sites be fitted with filters and be constantly monitored, according to the Gulf News newspaper. He cited the concerns of residents living close to industrial sites in Ras Al Khaimah, Al Ghail, Naseem, Suhaila and Al Manama.
Local legislation requires that dust-control techniques must be introduced in all quarries and mines, and owners of these sites are obliged to install air-monitoring stations linked to a control centre based at the RAK Environment Protection Authority’s headquarters. Despite this the Ministry of Climate Change and Environment issued pollution warnings to five cement plants between 2014 and the end of May 2017. 55 quarries were also temporarily shut down for breaching health and safety regulations in the same period.
Saudi Arabia: Cement sales have fallen by 19% year-on-year to 22.6Mt/yr in the first five months of 2017. Clinker production decreased by 11.3%, according to a market report by Al Rajhi Capital. Northern Cement and Najran Cement recorded the highest declines in the period at 50% and 43% respectively. The report does not expect demand to pick up in the remainder of 2017. Overall it forecasts a 14% fall in sales volumes to around 47Mt in the year. Saudi Cement, Yamama Cement, Yanbu Cement and Najran Cement hold 50% of the total inventory in the sector at 4.9Mt, 4Mt, 3Mt and 2.8Mt respectively.
Mondi wins three Paper Shipping Sack Manufacturers’ Association awards for plant safety 15 June 2017
US: Three Mondi Industrial Bags plants in North America have won awards for plant safety from the Paper Shipping Sack Manufacturers’ Association (PSSMA). The winning plants were Louisville in Kentucky, Arcadia in Louisiana and Salt Lake City in Utah. The Arcadia and Louisiana plants also achieved zero incidents rates in 2016. The awards were presented at the organisation’s seminar in Vancouver, Washington in April 2017.
Germany: Beumer Group has developed the Beumer Overall Operation Monitoring app, and mobile phone application that enables staff to maintain an overview of all the relevant parameters of their packaging line. The application shows the status of availability, performance and quality levels as well as the energy and compressed air consumption. The program can be adapted to customer-specific requirements. The development is intended to move Beumer Group’s products and practices towards the so-called Industry 4.0 with increased automation and data exchange for industrial processes.
LafargeHolcim expands retail network for construction materials in Middle East and Africa 15 June 2017
Middle East/Africa: LafargeHolcim is expanding its specialised Binastore retail network for construction materials in Middle East and Africa. The construction materials producer already operates 500 stores in the region that serves end-consumers, self-builders, masons and smaller contractors. The newly-branded network will sell a broad range of LafargeHolcim’s own products and solutions as well as a variety of other construction materials from partner suppliers.
The first stores operating under the Binastore brand have begun to serve customers in Algeria, Cameroon, Iraq and Lebanon. The format of the stores will vary with sizes from 50m2 to 2000m2 and it will also include mobile stores in some rural locations. Existing stores in the region will gradually be rebranded as Binastore, while new stores will also open under this brand.
“Our vision is to build the largest retail network for construction materials in the Middle East Africa region so the Binastore brand becomes a household name for small and medium-size builders. Building on our success in Algeria, our goal is to deliver a range of building products, including our own, through multiple channels to meet the needs and lifestyle of our customers who are becoming more and more sophisticated,” said Saâd Sebbar, Region Head Middle East Africa.
The Binastore network is part of LafargeHolcim’s long-term strategy of expanding its retail business in emerging markets. In April 2017, the group announced the rollout of Disensa, a similar concept, in Latin America, where the goal is to have a network of around 1000 stores operating by the end of 2017.
India: The state investment promotion board of Andhra Pradesh has approved proposals by Chettinad Cement and KCP to build cement plants in the state. Chettinad Cement plans to spend US$210m towards building a grinding plant in Vizag and a plant in Guntur, according to the Economic Times newspaper. These projects are scheduled to start production in March 2019. KCP has allocated US$83m towards its project in Krishna with the first phase of operations due to start in mid-2018. However, media commentators have noted that the south of India is facing cement production over capacity.
Colombia: The Office of the Attorney General is preparing to present charges against three individuals involved in the sale of property in Maceo, Antioquia to Cemex for a new cement plant project. They are Edgar Ramirez Martinez, the former deputy director of Planning at Cemex, Camilo Gonzalez Tellez, the former legal director of Cemex Colombia and Eugenio Correa Diaz, the representative of CI Calizas, which sold the property to the cement producer, according to the El Tiempo newspaper.
The former employees of Cemex allegedly paid US$13.7m to Correa, despite being aware of the fact that the property, which formerly belonged to the deceased businessman Jose Aldemar Moncada, was in the process of being expropriated over unpaid taxes. It is also alleged that the funds never reached the accounts of CI Calizas, having been primarily used to pay off debts of Aldemar Moncada.
Plenty to mull over this week in Cembureau’s newly published Activity Report for 2016. The association pulls together data from a variety of places including its own sources, Eurostat and Euroconstruct. For competition reasons much of it stops in 2015 but it paints a compelling picture of a continental cement industry starting to find its feet again.
Graph 1: Cement intensity of the construction sector in Europe, 2000 – 2015. Source: Cembureau calculation based on Eurostat and Euroconstruct in Activity Report for 2016.
The really interesting data concerns so-called cement intensity. This is the quantity of cement consumed per billion Euro invested in construction. Figures calculated by Cembureau from data from Eurostat and Eurocontruct show that cement intensity has remained stable in Germany, France and the UK but that it fell sharply in Spain and Italy from 2000 to 2015. In other words the pattern of construction changed in these countries. One suggestion for this that Cembureau offers is that construction moved from new projects to renovation and maintenance. These types of construction projects require less cement than new builds. Seen in this context the huge production over capacities seen in Italy and Spain in recent years makes sense as the local cement industries have coped with both the economic crash and a step change in their national construction markets.
Further data in the report falls in line with the impression given by the multinational cement producers in their quarterly and annual financial reports. Cement production picked up in the Cembureau member states from 2012 and in the European Union members (EU28) from 2013. Meanwhile, import and export figures disentangled from a close relationship at the time of the financial crash in 2008 with imports of cement declining and exports increasing markedly. Much of it will have originated from Italy and Spain as their industries coped with the changes. Cembureau then forecasts that cement consumption will rise in 2017 by 2.4% and 3.5% in 2018 in the 19 countries than form the Euroconstruct network. A key point to note here is that most of the larger European economies will see consumption consistently grow in 2017 and 2018 with the exception of France where it growth will remain positive but it will slow somewhat in 2018. This fits with last week’s column about France with the early reports from LafargeHolcim, HeidelbergCement and Vicat reporting slight declines in sales volumes so far in 2017.
Cembureau’s country-by-country analysis also provides a good overview of its member industries. Looking at the larger economies, residential construction was the main driver for cement consumption in France and Germany in 2016. In Germany further growth is hoped for from an increased infrastructure budget set by the Federal Government. Italian cement consumption fell in 2016 and further decreases are anticipated for 2017, particularly from the public sector. By contrast though the story in Spain is still one of declining cement consumption but one heavily mitigated by exports. Spain is the described by Cembureau as the leading EU export country. Finally, there’s little recent on the UK other than uncertainty concerns about the Brexit process and an anticipated rise in infrastructure spending by 2019. The sparse detail here is probably for the best given the current political deadlock in the UK following the continued fallout from the general election in early June 2017.
In summary, Cembureau’s data shows that modest growth is happening in the cement industries of its member countries. It’s not uniform and some nations such as Spain and Italy are coping with changes in the composition of their industries. Cembureau also highlights the unpredictable consequences of the UK’s departure from the EU as one of the biggest risks in 2017. Check out the report for more information.
Indonesia: Cemengal has completed the commissioning of a new modular grinding station Plug&Grind XL for Cemindo in Benkulu. This is the third unit that Cemindo has installed in the country.