September 2024
ZEMA threat to Dangote cement plant 03 April 2014
Zambia: Commerce minister Miles Sampa says that the Zambia Environmental Management Agency (ZEMA) is a threat to the planned commissioning of the US$400m Dangote Cement plant in Ndola in July 2014.
ZEMA recently directed the halting of construction of the plant. Sampa said that ZEMA needs to partner with the government in facilitating the much-needed foreign investments to help the country's economy grow.
"If ZEMA looks to stop progress then something is wrong somewhere," Sampa said. "Why in the world, after US$400m has been invested, would ZEMA decide to write to the investor to stop the construction? ZEMA approved the project in 2011."
According to local sources, ZEMA ordered a halt to the construction of the Dangote cement plant over a dispute on tapping water from the nearby Kafubu River. ZEMA contended that tapping water from the river was not in the initially approved Environmental Impact Assessment report when it approved the planned construction of the plant.
"If Dangote break the rule, let's treat them like any other company; the people here need jobs," Sampa said. "Let's not just dance to the tune of those who do not have the interest of the people here. I am appealing to ZEMA in the next seven days to formally write to advise Dangote to continue with the construction or to stop and that should be done within the law."
Sampa said that the new plant would increase competition among cement producers and consequently reduce the cost of the commodity in the country. "The construction industry is eagerly waiting for commercial production and distribution of Dangote cement products at competitive market prices," said Sampa.
India: The Government of Kerala is planning to construct a cement terminal at Azhikkal port in the state. The vessel capacity is up to 10,000DWT (dead weight tonnage) with a 6 - 12m draft. ABG Group has been awarded the contract. The project is waiting for the final approval from the finance and planning board department and is planned for completion in five years from the date of approval.
Cement industry development in Uzbekistan 02 April 2014
Our spotlight is on Uzbekistan this week following an update on the Almalyk Mining and Metallurgical Combine's (AMMC) plans to build a new cement plant in the south of the country. The news emerged in the wake of the completion of the AMMC's cement grinding plant, in the Jizzakh region, which was finished in late March 2014. Meanwhile, Eurocement announced that its subsidiary in Uzbekistan, the Akhangarancement plant, had received a limestone and marl quarrying licence.
Previous to the new AMMC grinding plant, Uzbekistan had five cement plants with a total cement production capacity of nearly 6Mt/yr. Only one of these was a dry production process plant, the 2.5Mt/yr Krzylkumcement plant, in the south-western Bukhara province. Cement consumption in the country was estimated to be around the same, also at 6Mt/yr.
Back in 2011 the government of Uzbekistan planned to invest US$6.94bn to develop infrastructure, transport and communication construction from 2011 - 2015. This investment has now been followed up with a direct financial injection into the cement industry.
In late February 2014, local building materials company JSC Uzbuildmaterials announced government plans to invest US$49.1m into the local cement industry. The programme includes nine projects for the three largest cement plants in the country: the Kyzylkumcement plant, the Ahangarancement plant and the Bekabadcement plant. Kyzylkumcement will receive the majority of the investment, US$39.6m to spend over three years on a new cement mill, upgrades to the clinker production lines and construction of a 220/10kV main substation. Ahangarantcement and Bekabadcement will replace 'out-dated' equipment and will upgrade their production lines.
Mineral-rich Uzbekistan is relatively undeveloped but this is changing. Its Gross Domestic Product (GDP) was reported to be US$51bn in 2012 by the World Bank, having seen steady growth since 2002, and its population was just over 30m in 2013. Its cement consumption is 300kg/capita, a figure below the global average (estimated at 536kg/capita in a forthcoming Global Cement Magazine report on 'Cement consumption versus Gross Domestic Product'). This places Uzbekistan in a favourable position for future development on a graph of GDP per capita against cement consumption per capita. The latest investment programme suggests that the Uzbek government are hoping that this is the case.
Venezuela: Industries minister José David Cabello has overturned a resolution designating Gilberto Barrios Contreras as president of the Cemento Andino. Barrios Contreras was appointed to the post by the previous industries minister in a resolution dated 25 march 2014.
ABB completes upgrade at Eastern Province Cement Company 02 April 2014
Saudi Arabia: ABB has completed a process control system upgrade to three cement production lines at Eastern Province Cement Company (EPCC) in Al Khursaniya, Saudi Arabia. Power and automation technology supplier ABB updated the Extended Automation System 800xA to the latest standards.
"ABB has completed the final upgrade on site in a record time during the planned maintenance shutdown of the plant", said Mohammad Arif Khan, Electrical and Instrumentation Manager at EPCC.
The scope of supply included the updating the Extended Automation System 800xA licences, computer, laboratory and raw meal proportioning system hardware, as well as project management, engineering and site services, including training. The modernisation follows a previous process control system upgrade of the production lines number one and two in 2003, as well as equipment deliveries for the extension of the plant with line number three in 2005. The contract was booked in June 2013. Commissioning was completed in December 2013.
Vietnam: Larger cement producers in Vietnam have failed to build government mandated waste heat recovery (WHR) systems. Under Vietnam's cement industry development plan until 2020 with a vision towards 2030, all cement plants with a clinker production capacity of 2500t/day or above have to implement a WHR system to save at least 20% of their electricity consumption by 2015. However, local media has reported that only Holcim and Ha Tien 2 have invested in the technology. Other cement producers have been prevented from investing in their plants by high debt and poor local demand for cement.
Nguyen Quang Cung, chairman of the Vietnam Cement Association admitted to the delayed investment in the WHR systems. "However, there won't be an extension. The cement makers will be forced to implement this on time," said Quang Cung.
Nguyen Cong Minh Bao, director of Sustainable Development of Holcim Vietnam, which invested US$18m in a WHR system in 2012, said that Vietnam should not extend the deadline. According to Bao 60% of Chinese firms apply the system in China and WHR is an intrinsic component of any new project.
Holcim Vietnam's WHR system has an output capacity of 44MkWh/yr. It will be enough to serve the firm's Hon Chong Cement Factory for 88 days of operation, meaning Holcim Vietnam will save 9000t of coal and reduce 25,300t of CO2 per year.
Vietnam's cement sector is considered as one of the country's most energy-intensive industries. Under the third draft of the retail pricing scheme conducted by the state-run Electricity of Vietnam in 2013, steel and cement producers using power voltages of 110kV or higher during peak hour would pay 10% than the asking price for their normal power. Overall, the draft would dish out a power tariff hike of 2 - 16% to steel and cement producers.
China Tianru revenue rises by 14% to US$1.4bn in 2013 02 April 2014
China: China Tianrui Group Cement Company has reported that its revenue rose by 14% to US$1.40bn in 2013 from US$1.22bn in 2012. Its gross profit remaining static at US$305m in 2013 and its earnings before interest, taxes, depreciation and amortisation rose slightly to US$356m. The Chinese cement producer attributed the rise in revenue to increasing sales volumes of cement in response to a 'proactive' pricing strategy and a general increase in demand driven by rural development and the demand from certain large-scale infrastructure projects, such as the South-North Water Transfer Project.
Sales of cement rose by 19% year-on-year to US$1.30bn in 2013. Sales of clinker fell by 23% to US$107m. By region, the company saw its revenue in its Central China region rise by 13% to US$1.01bn. In Northeastern China its revenue rose by 16% to US$385m. By volume, the company sold 36.9Mt/yr in 2013, a rise of 41.4% from 2012.
In 2013 Tianrui acquired one 1.2Mt/yr clinker production line and six cement production lines with a combined production capacity of 5.3Mt/yr in Liaoning and Henan provinces, at a cost of US$109m.
Podilskiy Cement reports Euro7.4m loss in 2013 02 April 2014
Ukraine: Podilskiy Cement has preliminary reported a loss of US$7.4m in 2013. The CRH subsidiary reported a US$6.5m loss in 2012 despite increasing its revenue. The wet process cement plant has six production lines with a total cement production capacity of 3.7Mt/yr.
Qatar National Cement Company to build new cement line 01 April 2014
Qatar: Qatar National Cement Company (QNCC) has signed a letter of intent with Fives FCB to build a fifth cement plant line with a clinker production capacity of 5000t/day. Fives FCB and TPF Basse Sambre will work together to finalise the contract documents by the end of April 2014.
The turkey contract has been valued at US$261m. Construction will start after handing over the site on a phased manner, starting with two cement mills which will be delivered after 17 months and 19 months. The overall project will be completed in 27 months.
Fives FCB was also the contractor for the construction of plant lines two, three and four. QNCC's production capacity is expected to rise to 17,000t/day of clinker and its grinding capacity will rise to 20,000t/day.
Almalyk Mining and Metallurgical Combine to start building US$250m cement plant in 2015 01 April 2014
Uzbekistan: The Almalyk Mining and Metallurgical Combine (AMMC) is planning to build a 1.5Mt/yr cement plant in the Surkhandarya region of southern Uzbekistan in 2015. The contract is being negotiated with Turkey's Dal Teknik Makina with a completion date set for 2015, according to Russian news agency RIA Novosti. The US$250m project will be financed by equity funds of the AMMC, credits from the Fund for Reconstruction and Development of Uzbekistan and local Uzbek banks.
In late March 2014 the AMMC completed construction of a cement plant in Jizzakh region with a value of US$114m. The plant has a production capacity of 0.75Mt/yr of grey OPC and 0.35Mt/yr of white cement. The general contractor of the project was also Dal Teknik Makina.