September 2024
Cementos Portland Valderrivas donates food and sanitary products in Alcalá de Guadaíra 19 February 2021
Spain: Cementos Portland Valderrivas has made donations worth Euro3000 of food and sanitary products to host communities in the neighbourhood of its Alcalá de Guadaíra cement plant in Seville. The company says that the donations are intended to support vulnerable families and groups affected by the coronavirus crisis.
Cementos Pacasmayo’s sales and volumes fall in 2020 18 February 2021
Peru: Cementos Pacasmayo recorded sales of US$354m in 2020, down by 7% year-on-year from US$381m in 2019. Consolidated earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 21% to US$86.3m from US$110m. Sales volumes of cement, concrete and precast shipments fell by 1% to 2.58Mt from 2.61Mt. Cement production capacity utilisation was 45%, down by 2% from 47%. In the fourth quarter of 2020 cement dispatches rose by 37% year-on-year.
The company said, “Despite political changes, the economic recovery continued its course during the fourth quarter of 2020. Thanks to the economic relief measures taken by the government and the fast adaptation of the private sector, an important part of the productive capacity was preserved. Public investment in particular has played an important role in the economic recovery, and it is expected to continue to do so during 2021.” It added, “The uncertainty around the end of the Covid-19 pandemic continues, but what is certain is that the world has been forever changed. The capacity to adapt quickly and efficiently in an increasingly digital world is key to success and will prevail long after this pandemic is behind us. We believe that the steps we have taken in that direction have both helped us weather the storm and given us a promising future. We are confident that we are better equipped to face another year that may prove challenging and continue to generate value to our stakeholders.”
The Good Employers Association (ABE) recognised the company in the Leadership category at its ABE Awards 2020.
Kohat Cement Company Limited to establish cement plant at Khushab 18 February 2021
Pakistan: The board of directors of Kohat Cement Company Limited (KCCL) has approved plans to establish a 7800 – 10,000t/day integrated cement plant at Khushab, Punjab. The company will also set up an 8 – 10MW waste heat recovery (WHR) plant and a 25MW coal-fired power plant at the site. The total estimated cost of the project is US$189m. The producer will raise finances through a mix of debt and equity. Commissioning is scheduled for mid-2023.
Loesche to supply Lafarge Zement’s Mannersdorf cement plant with new raw materials grinding plant 18 February 2021
Austria: Germany-based Loesche has received an order to supply a new raw materials grinding plant to LafargeHolcim subsidiary Lafarge Zement’s Mannersdorf cement plant. The plant will consist of a type LM 45.4 mill, a LSKS type classifier, a rotary feeder, a magnetic separator, a conveyor, a pair of Hurriclons, a mill fan and the ‘Digital Ready 4.0!’ digital package. Loseche’s subsidiaries Kingsblue and AixProcess are responsible for the digital products and A-Tec for the Hurriclons. Commissioning is scheduled by the end of February 2022.
Cement and ore head of sales Stefan Baaken said, "Many cement plants in Europe are facing similar challenges to our customer in Mannersdorf. For us as an original equipment manufacturer and also for the customer, the new grinding plant is an important signpost towards more energy-efficient and sustainable cement production.”
Claudius Peters reports sales drop in profitable 2020 18 February 2021
Germany: Claudius Peters’ 2020 sales were Euro80.2m, down by 19% year-on-year from Euro98.8m in 2019. The company recorded a ‘small profit’ compared to a loss in 2019. It said that it started the year with a historically low order book. This was compounded by the effects of the coronavirus pandemic. Despite this, the supplier exceeded targets in China, Romania and the US.
The company said, “Order intake is currently looking much more promising than a year ago with several major projects, delayed due to the pandemic, coming into the decision phase during the first quarter of 2021. With an operational overhaul now well under way, the future for Claudius Peters is looking more positive.”
Dangote Cement warns public against recruitment scam 18 February 2021
Nigeria: Dangote Cement has warned the public that confidence tricksters are using its name to offer ‘jobs’ On social media. The Vanguard newspaper has reported that applicants are then being required to pay an ‘administrative fee’ to the scammers.
Corporate communications directorFrancis Awowole-Browne said, “The job advertisements are entirely false and are intended to defraud unsuspecting members of the public. We are clarifying that we have not engaged any individual or job website to advertise job positions on our behalf and none of the contact details, either phone numbers or email, are those of Dangote Cement.” He added, “At Dangote Cement, we fill job positions through a formal procedure with all career opportunities clearly listed on our own website. Furthermore, we never request candidates to pay a fee before they are considered for any position.”
Cement shortages in Arizona 17 February 2021
One news story to note recently has been Cemex’s decision to recommission a kiln in Mexico to address cement shortages in the southwest US. In early February 2021 the Mexico-based producer said it was spending US$15m to restart a 1Mt/yr kiln at its CPN cement plant in Hermosillo, Sonora. The unit is over 250km from the US border but Cemex said it was making the investment to cope with cement shortages and project delays in California, Arizona and Nevada. At present it supplies over 3Mt/yr to California, Arizona, and Nevada from its integrated plant in Victorville, California and via sea-borne imports. Efficiency improvements at Victorville and other unspecified supply chain changes are also planned.
Cemex isn’t the only company with an eye on the south-west US. Around the same time Japan-based Taiheiyo Cement concluded its deal with Semen Indonesia to buy a 15% stake in its subsidiary Solusi Bangun Indonesia (SBI) for around US$220m. It’s a long way from Arizona but the related statement mentioned plans to make SBI’s integrated Tuban plant in East Java more export focused, with the construction of a new jetty and silos. It intends to export 0.5Mt/yr of cement to Taiheiyo Cement’s business in the US. Its local subsidiary, CalPortland, runs two integrated plants in California and one in Arizona.
Chart 1: Annual change in US cement consumption by state, December 2019 – November 2020. Source: PCA & USGS.
In its recent winter forecasts the Portland Cement Association (PCA) reported that the Mountain region of the US recorded the highest growth in cement consumption in 2020, at 10%, due to underlying economic fundamentals and favourable demographic trends. Data from the United States Geological Survey (USGS) supports Cemex’s view too. Ordinary Portland Cement and blended cement shipments rose by 21% year-on-year to 2.74Mt in Arizona and New Mexico in the first 11 months of 2020 from 2.28Mt in the same period in 2019. This doesn’t quite tally in California where shipments fell slightly, by 0.8%, to 9.42Mt. However, it reported 12% growth to 2.38Mt in the first quarter of 2020, suggesting that the market could return sharply once the coronavirus epidemic is better under control. Overall, shipments in the US grew by 1.03% to 82.3Mt in the first 11 months of 2020, driven by growth in central regions. The PCA expects national cement consumption to grow by about 1% in 2021 with a ‘robust’ recovery driven by residential housing but slowed by uncertain coronavirus vaccination supplies and general market volatility.
In a world with too much clinker production capacity, it stands out to see two established producers so visibly chasing market share in a mature market. Rather than building new plants, both Cemex and Taiheiyo Cement are using or reviving existing production lines in other countries, and building import strategies as well as optimising their existing facilities in the regions. With the western building material multinationals now often looking to focus on ‘safe’ markets in Europe or North America the fight to grow market share in these regions is likely to become more intense. It also complicates decisions about when or if an existing plant should be mothballed or shut. After all, Cemex’s old production line in Hermosillo is about to become very useful indeed.
Argos appoints new managers in Panama and Honduras 17 February 2021
Honduras/Panama: Cementos Argos has appointed Gustavo Adolfo Uribe as its manager in Panama and Central America. He has been succeeded by Luis Eduardo Tovar as the manager in Honduras.
Uribe studied civil engineering at the School of Engineering of Antioquia (EIA) and followed this with graduate training in economics at the University of Los Andes in Colombia and business at the École Supérieure des Sciences Economiques et Commerciales (ESSEC). He has worked for Argos for over 15 years in a variety of management roles, including being the general director for the business in Honduras.
Tovar studied business at the University of Lincoln in the UK. He has also worked for Argos for over 15 years in various managerial and strategic roles.
Kenya: East African Portland Cement (EAPCC) has appointed Daniel Kiprono as its acting managing director. He succeeds Stephen Nthei, who was appointed to the temporary post in mid-2019. No reason for his departure has been disclosed. Nthei replaced Simon Peter Ole Nkeri, who was reportedly relieved of the role, in mid-2019. Kiprono has worked at EAPCC for over 20 years in a variety of roles.
Kazakhstan increases full-year cement production to 10.8Mt in 2020 17 February 2021
Kazakhstan: Kazakhstan’s cement production increased to 10.8Mt in 2020. Kazakhstan Newsline has reported that 2020 is the first year in which domestic cement production has exceeded 10Mt. Capacity utilisation across the nation’s 16.5Mt/yr of installed cement capacity was 66%.
HeidelbergCement’s 0.8Mt/yr Caspi Cement plant exceeded its rated capacity by 10%. Kazakhcement’s 1.0Mt/yr Shar cement plant and ACIG’s 0.5Mt/yr Khantau cement plant both produced no cement in 2020. Gezhouba-Shiyeli Cement’s Shiyeli cement plant stood idle for several months in early 2020 when management and engineering staff became stranded in China due to the coronavirus outbreak.
Kazakhstan Association of Cement and Concrete Producers executive director Erbol Akymbaev said, “The production capacities of Kazakhstani factories exceed the needs of the domestic market by 41%: domestic consumption in 2020 amounted to just over 9Mt. Access to neighbouring markets is complicated by the fact that states protect their own producers. For example, in Russia, according to GOST, additional certification of imported products is required." He added that the cement industries of the two main cement exporters to Kazakhstan – Iran and Russia – are unregulated in terms of CO2 emissions. Kazakhstan’s commitment to a reduction in its emissions of 15% by 2030 gives it a competitiveness disadvantage.