Displaying items by tag: Aalborg Portland

Malaysia: Cementir Group subsidiary Aalborg Portland Malaysia has launched CEM II/A-LL 52.5N with 12% lower CO₂ emissions compared to Aalborg White CEM I 52.5N. The product, part of the D-Carb family, maintains high and consistent early-age performance and is aimed at supporting industrial decarbonisation. It will be distributed primarily in Australia, with further availability across Asia.

Aalborg Portland APAC managing director Fabrizio Piero Carraro said “The demand for low carbon white cement is rapidly increasing across APAC markets, particularly in more mature markets like Australia. This growth is being driven by clear policy direction, defined industrial decarbonisation targets and rising environmental awareness among industry players. As a result, we are seeing a strong shift toward white cement solutions that offer both reduced carbon emissions and high performance.”

Denmark: Cementir Holding subsidiary Aalborg Portland Cement has awarded Christian Pfeiffer an engineering, procurement and construction (EPC) contract for the installation of a QDK-T 250-Z high-efficiency separator for Cement Mills 8 and 9 at its Rørdal plant. The equipment will integrate both mills into a shared separator system, in order to increase their total capacity and facilitate the production of new cements. The upgrade also includes the installation of a single replacement bucket elevator, two air slides with integrated flow impact meters and a bag filter system. Commissioning is scheduled for 2026.

Christian Pfeiffer’s Product Line Manager Cement, Juan Camilo Vanegas Aguirre, said “This was the first EPC offer jointly prepared by our team in Chennai, and reaching this agreement after two years of collaboration is a real achievement.”

Denmark: Air Liquide and Cementir Holding, via its Danish subsidiary Aalborg Portland, have signed the European Innovation Fund grant agreement for the ACCSION project at the Aalborg cement plant. The project aims to reduce the plant’s CO₂ emissions by 1.5Mt/yr, with the captured CO₂ transported via pipeline to onshore CO₂ storage facilities.

The value of the Innovation Fund grant is €220m, fully financed by the EU Emissions Trading System.

Egypt: Cementir Holding’s Aalborg Portland Holding has acquired an additional 25% stake in Sinai White Portland Cement (SWCC) from Sinai Cement Company for approximately €30m. This represents Sinai Cement Company’s entire stake. Following this transaction, Cementir will indirectly hold 96.5% of SWCC’s share capital.

Denmark: Aalborg Portland, a Danish cement firm, has completed testing for its second carbon capture pilot plant and will now undergo further trials in Romania and Greece, according to M-Brain News. This plant is a key component of the EU-subsidised ConsenCUS project.

A spokesperson for Aalborg Portland said "This experience offers preliminary knowledge ahead of establishing a full-scale CO₂ capture facility, and we are also contributing to the progression of this area where we, within the ConsenCUS collaboration, have verified the existence of multiple potential technologies for CO₂ capture."

Denmark: Aalborg Portland has appointed Ignacio Arroyo as its plant director.

Arroyo started his career working for Holcim in 1998 as a project manager at the Carboneras Plant in Spain. Other roles in Spain followed before he became the Operation Manager at the Yeles plant in 2012. He then worked as Technical Director and Plant Manager at Holcim’s National Cement Factory in Abu Dhabi, UAE. Subsequent roles included Plant Manager positions in Holcim Romania and Lafarge Canada.

There have been two major announcements in the cement sector this week. The first was that Holcim is preparing to divest its business in the US via a spin-off and full capital market separation. The second was that FLSmidth is thinking about selling its cement equipment business. Both stories are huge so we will cover them both. This week we will focus on FLSmidth and Holcim will follow next time.

Both news stories came as something of a shock. Yet FLSmidth’s plans were not surprising given the divestment of MAAG gears and drives business earlier in January 2024 and several years of tough trading conditions in the sector generally. Yet, as one commentator on the Global Cement LinkedIn Group put it, it feels like “the end of an era.”

First a little history. FLSmidth has been in business for over 140 years and has been indelibly linked to the cement market throughout this time. Its first big cement order was in 1887, it built its own plant in Aalborg in 1889 and it started selling rotary kilns in 1899. By 1957, at the time of its 75th anniversary, it was estimated that 40% of the world’s cement was manufactured in equipment supplied by FLSmidth. Many other advancements and milestones followed but signs of the modern business’ focus on mining can be detected in the acquisition of US-based Fuller Company in 1990, the sale of Aalborg Portland in 2002 and the purchase of ThyssenKrupp Industrial Solutions’ mining business in 2021.

FLSmidth described its reasoning for a potential divestment of its cement business and focusing on mining as follows: “our industries, and in turn, the appropriate operating models which best serve them, have diverged. Consequently, combining our two organisations under one ownership is now forcing more operational friction than benefit.” It took pains to state that it hopes to sell its cement business in one piece whereupon it can continue to grow under new ownership and “maximise its full potential.”

FLSmidth’s strategy for selling its cement equipment business appears to have taken the form of separating out the cement business, making it look as strong as possible and then publicly announcing that it is “exploring divestment options.” This is different from many other corporate divestments that only become public once a deal with a prospective buyer has been secured. FLSmidth has been preparing for a potential divestment of the division internally through its ‘pure play’ strategies and focusing more recently on product, services and technology rather than project risks. It said that the MAAG sale had shown it that there was interest in buying the cement business. However, no potential buyers have been disclosed at this time. In a conference call the company said that it was hoping for five to 10 interested parties and it would expect these to be either industrial buyers or financial entities.

One of the callers homed in on the attempts by ThyssenKrupp to sell the cement division of its subsidiary ThyssenKrupp Industrial Solutions (TKIS) in 2020 following a restructuring drive. It changed its mind in 2021 and ended up selling its mining division to FLSmidth instead. In response to any comparison, FLSmidth asserted that it was preparing to sell a significantly different asset to TKIS, not least due to its careful steering away from project-based risk.

The wider business backdrop to this decision has been the rise of the Chinese cement sector since the late 1990s, persistent global production overcapacity, the setting of net zero CO₂ emission targets globally and, more recently, logistic and economic shocks arising from the Covid-19 pandemic and geopolitical events. New cement production line projects are now frequently managed by China-based equipment suppliers in many territories, with the exception of North America. It is worth noting here that some of the largest China-based cement equipment suppliers are subsidiaries of the government. The Chinese government has also supported the construction of new plants outside its borders through its Belt and Road initiative. Protectionist investment policies implemented by western governments to support industry transitioning to net zero is in part a response to this in the general economy. Cement equipment suppliers from outside of China can and do build lines on a regular basis but they tend to concentrate on parts of plants, such as mills, or specific technologies and services. FLSmidth is a good example of this transition with its renewed focus on the green transition.

The decision by FLSmidth to consider selling its cement business marks another sign that the cement industry is changing. The transition to net zero puts Europe-based suppliers in a good position given that the region is currently leading with carbon capture projects. A retrofit boom for cement plants (and customers) being made to pay for CO₂ emissions could change the dynamic for the cement equipment sector as the focus shifts from building kilns to capturing CO₂. And companies like FLSmidth are well placed to benefit from this. Then again it may just end up being business as usual. Either way, any eventual change in the ownership of FLSmidth’s cement division does indeed mark the end of an era.

Next week: Holcim’s plans in the US

Egypt: Abu Dhabi Ports Group subsidiary Transcargo International (TCI) is building a bulk cement terminal at Arish port in North Sinai Governorate. The company says that the facility will be equipped with six 10,000t cement silos. Four silos will store up to 40,000t of grey cement, while two will store up to 20,000t/yr of white cement. Cementir Holding subsidiary Sinai White Portland Cement has signed a cooperation agreement with TCI to use the Arish cement terminal. TCI says that the terminal will serve multiple markets worldwide and help Sinai White Portland Cement to raise its total export volumes, thereby also raising its competitiveness.

TCI’s CEO Mohamed El Ahwal said "This project aligns with our commitment to support Egyptian exports by providing specialised logistics solutions across several industries. Building and operating Egypt’s first bulk cement terminal, we anticipate cost savings for cement producers in Egypt, making prices more competitive globally and increasing global market penetration."

Denmark: Crown Prince Frederik of Denmark will today inaugurate the ConsenCUS CO₂ capture pilot unit at Aalborg Portland Cement’s Rørdal plant. Kadri Simson, the European Union (EU) Energy Commissioner, and Lars Aagaard, the Danish Minister for Climate, Energy and Supply Minister, will also attend the event. A European Commission-run carbon capture, utilisation and storage (CCUS) forum will take place in Aalborg at the same time.

Aalborg Portland Cement first established a CCUS pilot project called CORT at its cement plant in 2022 in collaboration with the Technical University of Denmark (DTU) with support from the EU Innovation Fund. This is now being replaced by the ConsenCUS pilot. The new project will test a more energy-efficient CCS technology that can potentially halve the energy consumption compared to traditional CO₂ capture methods by driving the process exclusively via electricity. The project partners will also investigate converting the captured CO₂ into potassium formate, a valuable resource for the chemical industry. The ConsenCUS project is supported by the EU's Horizon 2020 research and innovation program.

Denmark: Aalborg Portland and US-based Fidelis New Energy have signed a letter of intent to collaborate on the onshore storage of captured CO₂ from the cement producer's Aalborg cement plant in North Jutland. The partners will convey captured CO₂ from the plant to Fidelis New Energy's upcoming Norne Carbon Storage Hub at East Port of Aalborg via a pipeline. The pipeline is scheduled for commissioning ahead of the launch of the Aalborg cement plant's upcoming carbon capture system in 2030. The system will capture 400,000t/yr of CO₂ from the plant's flue gases.

Fidelis New Energy's Norne Carbon Storage Hub is due to commence operations in 2026. It will have a handling capacity of 4Mt/yr of CO₂, with the possibility of subsequently expanding to 8Mt/yr.