September 2024
Cemex Philippines signs CBMI for Solid Cement plant upgrade 18 October 2018
Philippines: Cemex Philippines says that its subsidiary Solid Cement has chosen China’s CBMI as the main contractor for an upgrade project at its plant in Antipolo, Rizal, according to ABS-CBN News. The new US$225m production line will increase cement production by 1.5Mt/yr to 3.4Mt/yr.
Eurocement starts building upgrade project at Akhangarancement 18 October 2018
Uzbekistan: Eurocement has started building an upgrade to its Akhangarancement plant at Akhangaransky. Botir Zaripov, chairman of the board of Uzstroymaterialy, and Mikhail Skorokhod, the president of Eurocement, attended a ceremony laying the foundation stone. The project has a cost of over US$160m and it will increase the production capacity of the plant to 3Mt/yr. The first batch of products from the new production line is expected in mid-2020. China’s CNBM is the main contractor on the project.
Sibirsky Cement production holds steady so far in 2018 18 October 2018
Russia: Sibirsky Cement’s production from its three plants has remained stable year-on-year at 2.5Mt for the first nine months of 2018. Its Topkinsky plant manufactured around 1.7Mt, Krasnoyarsky Cement’s production rose by 8% to 0.54Mt and Timlyuysk Cement’s output fell by 8% to 0.27Mt, according to the Siberian News Agency. The decline at Timlyuysk Cement has been blamed on market saturation in the Buryat Republic in Siberia.
Al Jouf Cement signs exports deal to Palestine 18 October 2018
Palestine: Saudi Arabia’s Al Jouf Cement has signed a deal with Sanad Trading and Marketing to export 50,000t/yr of cement and clinker. The financial impact from the agreement is expected to be noticed from the middle of the fourth quarter of 2018 onwards. The deal follows a memorandum of understanding that was signed between the companies in August 2018.
Nigerian sales boost Lafarge Africa’s sales so far in 2018 18 October 2018
Nigeria: Sales in Nigeria have boosted Lafarge Africa’s sales revenue so far in 2018. It added that increasing prices in South Africa had also helped. The cement producer’s sales rose by 5% year-on-year to US$643m in the first nine months of 2018 from US$614m in the same period in 2017. However, its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 8% to US$115m from US$124m due to poor performance in South Africa in the first half of the year.
“We continued to deliver strong margins in our Nigerian business as a result of our successful commercial strategies with improved product visibility and the fast tracking of the new route to market. Our energy efficiency plan translated in increased use of alternative fuel and coal,” said Michel Puchercos, the chief executive officer (CEO) of Lafarge Africa.
PPC makes redundancies at head office in poor market 18 October 2018
South Africa: PPC has started a cost cutting campaign at its head office following poor cement sales so far in 2018. A source quoted by Business Report told the newspaper that staff redundancies had taken place already. The fall in sales has been blamed on poor local economic growth, the impact of a value added tax (VAT) increase on consumer spending and problems in the construction industry, including a fall in large infrastructure projects and private non-residential building.
Cementos Argos loses trademark battle over Luz Verde brand 18 October 2018
Colombia: Cementos Argos has lost a trademark dispute over its Luz Verde brand. The Superintendent of Industry and Commerce (SIC) has authorised wholesale travel agent Luz Verde Representaciones to register its Luz Verde brand despite the objections of the cement producer, according to La República newspaper. SIC considered the opposition of Cementos Argos invalid as the companies operate in different business sectors. The company had previously lost another legal conflict with Energy Evolution Colombia for the registration of a motto including the element Luz Verde.
European cement producers not joking about implications of climate change legislation 17 October 2018
Well, it turns out that the European cement industry wasn’t kidding when it raised the risks of the climate mitigation on the sector. This week three (!) integrated plants have been earmarked for closure.
Cementa in Sweden said that it was considering closing its Degerhamn plant due to increased environmental regulations. Today, local press in Spain is reporting that Cemex España is planning to shut down two of its plants. These are plants in different parts of Europe with different local market dynamics but both are within the European Union (EU). That’s three plants closing out of 219 in the EU, or a loss of around 1% of production capacity.
Last week’s column on the United Nations’ (UN) Intergovernmental Panel on Climate Change (IPCC) report on Global Warming raised the way the cement sector is tackling climate change and the existing and impending legislation. President of the German Cement Works Association (VDZ) Christian Knell’s opening words at the VDZ Congress in September 2018 seem prescient. He said, “To be able to realise our efforts in terms of climate protection and at the same time not to lose competitiveness, we need research policy-related support for our investment in breakthrough technologies and the corresponding demonstration projects.” The add-on was that the industry needed to focus on how the development of carbon abatement technologies can meet the 2050 climate goals and, specifically, that suitable boundary conditions would have to be created. The press releases accompanying his speech emphasised that, “on-going trends in European emissions trading and the ‘rapidly increasing’ price of CO2 were already today leading to considerable costs for cement manufacturers.”
These words are similar to the comments Albert Scheuer, a board member of HeidelbergCement, made at the Innovation in Industrial Carbon Capture Conference early in 2018 about dividing the mounting environmental costs of cement and concrete between producers and society in general. Considering how much cementitious building materials most people use throughout their lives compared to the relative low price of cement, this argument carries some weight. In addition, the sustainability credentials of concrete buildings through longer lifespan and durability through extreme weather events is another argument that industry advocates such as the Portland Cement Association (PCA) in the US have been hawking in recent years.
Cementa, a subsidiary of HeidelbergCement, blamed anticipated tightening of environmental regulations for its decision. Although it said that the plant had made improvements over the years, the expected difficulty (read: cost) to make further improvements was becoming too hard. Shifting production to the company’s other two plants in the region, Slite on Gotland and Brevik in Norway, will reduce CO2 emissions by 260,000t/yr.
In Spain, the news from Cemex follows a half-year report from Oficemen, the local cement association, that predicted growth for the year but not as fast as previously expected. The problem was that continued declines in the export market, the 13th decline month-by-month in a row, offset the domestic growth. Oficement president Jesús Ortiz also took time to blame rising electricity costs, expected to rise by 20% year-on-year by the end of 2018.
Market issues in Spain aren’t in doubt, but the real question for both Sweden and Spain is whether EU CO2 legislation right now is causing cement producers to shut plants. The CO2 emissions allowance price hit a high of Euro22/t in September 2018, the highest price in a decade. Allowances have stayed below Euro10/t since 2011 and the price has more than doubled in 2018. Throw in the mood music of the IPCC and the trend seems irresistible. How many more plants in Europe are at risk to shut next? No doubt the European cement producers have charts marking the viability of their plants against the CO2 price. This would be a very interesting graph to get our hands on.
The 2nd FutureCem Conference on CO2 reduction strategies for the cement industry will take place in May 2019 in London, UK
Pietro de Michieli appointed managing director of Aumund 17 October 2018
Germany: Pietro de Michieli has been appointed as the managing director of Aumund. He assumed the role at the start of September 2018 and will focus on equipment sales, spare parts and after sales service.
Previously, de Michieli was the managing director of OMG MGM Cranes, part of Bedeschi Group. Prior to that he was chief operating officer of Bedeschi and a member of the board of directors responsible for the business unit bulk handling, marine logistics and mining and minerals, with a particular focus on sales, marketing, design, manufacturing, purchasing and project management.
Earlier in his career he was projects director with Endeco Engineering Design Construction and project manager at Danieli. He holds a doctorate in electro-mechanical engineering from the University of Padua, Italy.
Since January 2018 de Michieli has been a member of the board of directors of PEMA (Port Equipment Manufacturers Association), a forum and public voice for the global port equipment and technology sectors. He will support a bid for membership of PEMA by the Aumund group of companies.
Spain: Miguel Ángel López has been appointed as the chief executive officer (CEO) of Siemens Spain following the resignation of Rosa García García. García has decided to leave the company and will handover the role on 1 December 2018 and then continue in an advisory role until the end of the year. López, aged 53 years, has been working most recently as the chief financial officer (CFO) of Siemens Gamesa Renewable Energy (SGRE). The CFO role will be filled by David Mesonero, currently SGRE's Head of Corporate Development, Strategy and Integration.