September 2024
Sinoma unit sells stakes in Midong Tianshan and Fukang Tianshan 23 September 2016
China: Xinjiang Tianshan Cement, a subsidiary of China National Materials Company (Sinoma), has arranged to sell stakes in two of its companies to Zhongtai Chemical. Zhongtai Chemical will acquire a 64.6% equity interest in Xinjiang Midong Tianshan Cement and the entire equity interest in Xinjiang Fukang Tianshan Cement, currently held by Tianshan Cement. It will also acquire a 19.47% equity interest in Midong Tianshan held by Xinjiang Tunhe Cement.
Sinoma said that the equity transfer aims to respond to the national policy of production capacity reduction, quality improvement and efficiency enhancement, and to realise the preservation and appreciation of the assets of Tianshan Cement.
Vietnam cement sales may reach 95Mt/yr by 2020 22 September 2016
Vietnam: Vietnam’s cement sales are predicted to reach 95Mt by 2020 says Nguyen Quang Cung, chairman of the Vietnam Cement Association (VNCA). The total will include 80Mt/yr of domestic sales and 15Mt/yr of clinker and cement exports, according to the Vietnam News Agency.
Vietnam’s domestic cement sales are predicted to rise by 5 - 5.5Mt/yr to hit 80Mt by 2020. The country’s cement and clinker exports will stay at 15Mt/yr, Cung added, noting that Vietnam will be able to satisfy the demand. He also predicted that the country’s cement sales will reach 77Mt in 2016, including of 60Mt of domestic sales and 15.5 – 17Mt of exports.
The Ministry of Construction previously forecast that Vietnam’s sales of cement and clinker would rise 4 - 7% year-on-year to 75 – 77Mt in 2016 despite on-going economic problems.
Hongshi-Shivam Cement building road to project site in Nepal 22 September 2016
Nepal: Hongshi-Shivam Cement is building a 36km road between Nawalparasi and Palpa to connect limestone reserves to a plant it is building. The China-Nepal joint venture is building a 6000t/day cement plant in Sardi, Nawalparasil that will be completed in 2017, according to the Kathmandu Post. The company plans to double the plant’s production capacity to 12,000t/day in the next four years. Limestone reserves at Palpa are expected to last 300 years.
Hongshi Cement has invested US$360m in the project which is the largest Chinese investment in the country’s cement industry. Investment Board Nepal (IBN) approved Hongshi's proposal in July 2015.
Hima Cement to build US$40m grinding plant in Uganda 22 September 2016
Uganda: Hima Cement plans to build a grinding plant at Nyakesi, Tororo district at a cost of US$40m to meet demand for local infrastructure projects and for regional markets. The plant will be built near to the plant of Hima’s competitor, Tororo Cement. It will add an additional 1Mt/yr of cement production capacity to the company.
"Hima Cement is committed to ensuring sufficient cement capacity to serve the national infrastructure and construction projects, individuals and the commercial sector. As a result, we are embarking on several capacity building projects, starting with the construction of a grinding plant at the end of 2016,” said Daniel Pettersson, the CEO of Hima Cement. He added that the company is also in the final stages of exploration for a limestone site in North East Uganda to support a future clinker plant.
In 2010, Hima Cement invested US$120m towards building a new production line at its plant in Kasese. This project increased the plant’s production capacity to 0.9Mt/yr. On completion, the Tororo expansion will further increase Hima Cement's capacity to around 1.9Mt/yr.
Raysut Cement completes gas pressure reduction unit at Salalah plant 22 September 2016
Oman: Raysut Cement has commissioned and completed a gas pressure reduction unit at its plant in Salalah. The upgrade will enable the plant to increase its production capacity to 140,000t/yr from 130,000t/yr. This is expected to increase the profitability of the company. The cost of the project was estimated at US$5.45m when it was first announced in December 2015.
Portland Cement Association and Mine Safety and Health Administration renew safety and health agreement 22 September 2016
US: The Portland Cement Association (PCA) and the US Department of Labor’s Mine Safety and Health Administration (MSHA) has renewed for three years an on-going alliance aimed at fostering safer and more healthierl working conditions in the cement industry. Started in 2008, the agreement has enabled the PCA and the MSHA to share information, guidance and training resources to help protect the health and safety of all cement industry employees.
“Over the past seven years, this alliance has facilitated a productive collaboration between the cement industry and the regulatory agency, which has resulted in measurable safety and health benefits to cement industry employees,” said PCA President and CEO James G Toscas.
The Kiln of Theseus 21 September 2016
Congratulations are in order for CalPortland. It celebrates its 125th anniversary or quasquicentennial today. According to the company blurb on the website, a cement plant was established in 1891 in Colton, California. This was the first plant west of the Rockies and it went on to supply building materials towards the development of Los Angeles. However, the website doesn’t exactly shout about its purchase in 1990 by one of the Japanese companies that eventually became Taiheiyo Cement. Its earliest constituent company, the Cement Manufacturing Company, was established 10 years earlier than CalPortland in 1881. So perhaps CalPortland could celebrate the 135th anniversary of its Japanese owners at some point this year too.
Company | Country | Year | Age |
LafargeHolcim | Switzerland | 1833 | 183 |
AnhuiConch | China | 1997 | 19 |
CNBM (Sinoma) | China | 1984 | 32 |
HeidelbergCement | Germany | 1873 | 143 |
Cemex | Mexico | 1906 | 110 |
Italcementi | Italy | 1864 | 152 |
China Resources | China | 2003 | 13 |
Taiwan Cement | Taiwan | 1946 | 70 |
Eurocement | Russia | 2002 | 14 |
Votorantim | Brazil | 1918 | 98 |
Table 1: Age of leading cement companies by production capacity: Source: The Top 100 Report 2016, Global Cement Directory 2016, company websites, Wikipedia
As can be seen from Table 1, a list of major cement producers by production capacity in 2016, most of the European or non-Chinese multinationals are old. They have roots in various predecessor companies going back at least a century. By contrast most of the Chinese producers on this list are far younger having been established since the 1980s.
Company | Country | Year |
Lafarge (LafargeHolcim) | France | 1833 |
Vicat | France | 1853 |
Dyckerhoff (Buzzi Unicem) | Germany | 1864 |
Italcementi (HeidelbergCement) | Italy | 1864 |
Essroc (Italcementi) | US | 1866 |
HeidelbergCement | Germany | 1873 |
Taiheiyo Cement | Japan | 1881 |
CalPortland (Taiheiyo Cement) | US | 1891 |
PPC | South Africa | 1892 |
Table 2: Age of selected older cement companies still in business: Source: Company websites.
Table 2 adds an international perspective from the cement industry to CalPortland’s achievement. It’s an arbitrary list chosen from larger, mostly multinational cement producers that still operate today. As such it may well be missing some key names. However, they all follow the first industrial revolution innovators in cement such as John Smeaton, Joseph Aspdin or Louis Vicat. A generation later the first cement companies that have endured to the present in some form or another such as Lafarge, Vicat or Dyckerhoff started to appear. As impressive as the longevity of these companies are though, they pale in comparison to Saint-Gobain, the French construction materials company that was first established in 1665.
A BBC News article on company lifespans found that the average lifespan of a company listed in the S&P 500 index of leading US companies had decreased from 67 years in the 1920s to 15 years in 2012, according to research by Professor Richard Foster of Yale University [LINK]. By this measure most of the cement companies examined here are doing well. Yet, most of the older ones have endured such a tangle of mergers, acquisitions and changes that it is debatable whether any of them could be considered the same company as their originator. Joseph-Auguste Pavin de Lafarge may have started his operations at Teil in the Ardèche region of France in 1833 but LafargeHolcim, its modern day successor, is only one year old following its creation from Lafarge and Holcim in 2015.
This leads to the Ship of Theseus' paradox or the thought experiment regarding whether an object that has all of its parts replaced is still the same object. Just as humans gradually have most of their constituent parts (or cells) replaced over time so too do long-lasting companies. One superficial response is to point out that memory or heritage can have a lasting effect for individual, national and corporate entities. Just compare, for example, the different outlook of western European national states with millennia of continuation to much newer nations in the Americas. European countries, like the UK, are often seen as being old and stuffy compared to new world dynamism despite all the citizens in both regions being younger than their countries.
To end on a cementitious note, perhaps this dilemma should be renamed the Kiln of Theseus paradox for the cement industry. If a cement plant’s engineers replace all the parts of a cement kiln is it still the same kiln? The suspicion is that the staff at CalPortland would definitely think it is!
If any readers have a suggested name for a 135th anniversary This email address is being protected from spambots. You need JavaScript enabled to view it.
Tanga Cement Launches Mkomboz Cement brand 21 September 2016
Tanzania: Tanga Cement has launched its Mkomboz Cement brand. The 32.5N cement class is an all-purpose cement aimed to meet the construction needs of Tanzanians in infrastructure and residential housing in particular.
“Tanga Cement’s new cement brand is yet another step by the company to approach Tanzanians with an innovative product that is affordable to the people yet with an assured high quality product and technological superiority that has been the trademark of Tanga Cement”, said Tanga’s National Sales Manager Leslie Massawe.
Dalmia launches Dalmia DSP Cement brand 21 September 2016
India: Dalmia Cement Bharat has launched its Dalmia DSP Cement brand of cement. Senior Executive Director and group head B K Singh told the Press Trust of India that this new product will make concrete buildings more durable and it will be packaged to prevent water damage, allowing for longer storage times. The product will be released first in Tamil Nadu before a phased introduction in other states in the south of the country.
Indonesia: The Indonesia Cement Association (ASI) has urged the government to restrict the issuance of new licenses as the country's cement industry has been experiencing oversupply. Widodo Santoso, chairman of the ASI, told an industry seminar that there are 13 cement producers in the country with total production capacity of 92Mt/yr but that local demand is only reaching 63 – 65Mt/yr, according to Cogencis.
"The government should restrict investment in cement industry by leading the new cement investment to outside Java where there is no cement industry," said Santoso said.
Santoso added that 10 cement plants opened in 2015 and that four more are set to start operation in 2016. By 2017 the country’s cement production capacity may surpass 100Mt/yr. He recommended that local producers increase their exports. The ASI estimates that exports will increase to 2Mt/yr in 2016 from 0.5Mt/yr in 2015. Countries such as Bangladesh, Sri Lanka, Australia, African countries, and West Asian countries are among the destinations.