Displaying items by tag: CNBM

Kenya: Devki Group has ordered a waste heat recovery (WHR) unit from China’s Sinoma Energy for its Athi River plant as part of a US$250m package. The deal also includes supplying a power plant for the company’s steel plant in Kilifi, according to the Daily Nation newspaper. Both projects will be completed by late 2020.

China: Sinoma International Engineering’s new order intake fell by 14% year-on-year to US$4.56bn in 2018. No reason for the decrease was given but orders from its construction business segment fell by 10% to US$3.43bn. By region, local Chinese orders rose by 34% to US$1.3bn but foreign orders dropped by 24% to US$3.26bn.

Argentina: China’s Sinoma International says that it has successfully lifted the first steel column of the pre-heater tower on a 5800t/day production line it is building at Loma Negra’s L'Amalí cement plant. The work in late December 2018 marked the start of the installation phase of the project. It is the subsidiary of China National Building Material’s (CNBM) first engineering, procurement and construction (EPC) project in South America. When the project was first announced in late 2017 it had a completion date of early 2020.

Algeria: Germany’s Aumund has received two clinker conveying equipment orders for cement plants at Zahana and Bechar. The two orders comprise 26 belt and chain bucket elevators, two bucket apron conveyors, ten pan conveyors and ten drag chain conveyors. No value for the deals has been disclosed.

The first order is for the 4500t/day Société des Ciments de Zahana (SCIZ) plant near Oran. Here three chain bucket elevators with centre distances ranging from 22.5 - 34.9m and capacities from 50 - 220t/hr will be used to convey cement and clinker. 11 belt bucket elevators (22.5 -116.1m) will convey raw meal, cement and clinker with capacities between 190 - 680t/hr. The Aumund bucket apron conveyor, with a centre distance of 61.1m and a capacity of 360t/hr, will join the five Aumund pan conveyors (18.3 - 106.8m, capacity 300 - 360t/hr) in conveying clinker. The ten Aumund drag chain conveyors with centre distances between 6.1 - 33.8m will be used in clinker dust extraction and are designed for conveying capacities from 15 - 80t/hr.

The second order is for the 3200t/day Bechar cement plant. This order was placed by China’s CBMI to Aumund Beijing with support from Aumund France. This plant will operate 15 Aumund belt and chain bucket elevators, five Aumund pan conveyors and an Aumund bucket apron conveyor for its bulk materials handling. The bucket elevators, with centre distances ranging from 11 - 102.9m, will convey raw meal, cement and clinker with capacities from 70 – 480t/hr. The five pan conveyors, with centre distances from 22.2 - 89.8m, will convey their loads at up to 480t/hr. The Aumund bucket apron conveyor in Bechar (centre distance 88.5m, capacity 200t/hr) will also convey clinker.

Nigeria: BUA Group has ordered a 3Mt/yr production line from China’s CBMI for its Kalambaina cement plant in Sokoto State. It follows the commissioning of a 1.5Mt/yr line at the site in mid-2018, according to the This Day newspaper. The company also completed a new line at its Obu plant at Okpella in Edo State in late 2018. BUA Group will have a production capacity of 11Mt/yr once the new project is completed. BUA Group is also in the process of merging with the Cement Company of Northern Nigeria (CCNN).

Chief executives from over 30 companies attended the Global Cement and Concrete Association (GCCA) inaugural event last week in London. Its first president Albert Manifold, the chief executive officer (CEO) of CRH, laid out the line by saying that, “For the first time we have a global advocacy body.” He followed this up by emphasising that ‘our product’ is the most used man-made product in the world. Just like the Cement Sustainability Initiative (CSI), the body the GCCA is partly-replacing, it is a CEO-led organisation. The target is very much about giving a global voice to the cement and concrete industries and the vertically integrated companies that produce these products.

Along with the head of CRH, the leaders of LafargeHolcim, HeidelbergCement, CNBM, Votorantim, Buzzi Unicem and Eurocement, amongst others, were all on the attendance list too. That kind of representation gave the event a charged air and a real sense of intent. At present the association says it represents 35% of global cement production and its aim is to reach 50%. That compares to the 30% base that the CSI had.

Representatives from some major cement associations were also present, including Europe’s Cembureau, the Federación Interamericana del Cemento (FICEM), the Canadian Cement Association and the VDZ. The only thing stopping the US Portland Cement Association being there was reportedly the Thanksgiving holiday. Although not comprehensive, that kind of representation suggests serious interest from the regional cement associations. The word from the GCCA CEO Benjamin Sporton was that the GCCA is here to provide a global level of coordination to the advocacy and sustainability side of the industry dealing with global organisations like the United Nations (UN), development banks, other associations and non-government organisations (NGOs).

How this will work in practice has yet to be seen, but at the very least, the GCCA can take over the work of the CSI and run with it. The word from the attendees we spoke to was uniformly positive for the association. It was seen as a long-overdue move to finally give the industry some sort of uniform voice at a global scale. In this sense it is catching up with similar bodies in industries like wood and steel. One benefit from moving from the CSI to a full advocacy organisation is that the industry can actually talk about the good things it does rather than being limited to sustainability and environmental data reporting. It seems like a small change in focus but it’s a big shift in mind-set.

A cynic might suggest that the exercise is one of a dirty industry trying to wrest the Overton window, or window of public discourse, back from legislators facing mounting environmental pressure. The latest UN Emissions Gap Report for 2018, for example, reported this week that CO₂ emissions rose in 2017 after four consecutive years of decline. This is the latest environmental report in a long line pointing out bad news. Yet, the GCCA’s unwritten mantra, that concrete improves lives, is sound. Somebody or something needs to link it all up. That somebody might just be the GCCA.

A review of the inaugural annual general meeting and symposium of the GCCA will be published in a forthcoming issue of Global Cement Magazine.

UK: The Global Cement and Concrete Association (GCCA) has held its inaugural annual general meeting and symposium in London. Member companies ratified key deliverables for the association and set-out its priorities and work program. Albert Manifold, chief executive officer (CEO) of CRH, was confirmed as GCCA President and will serve for two years. Fernando A González, CEO of Cemex and Jianglin Cao, CEO of CNBM, were confirmed as Vice-Presidents.

The work program will focus on: position concrete as the sustainable building material of choice; promote international best practice in the areas of safety, production and the use of cement and concrete in the built environment; foster innovation in the cement and concrete sectors; make a positive contribution to global sustainable development; and promote the principles of a circular economy across the value chain.

“Concrete is the enabler of critical buildings and infrastructure that enhance the way we live – safe and durable homes, roads, hospitals, clean water, effective wastewater management, as well as providing the vital structures for the clean energy of tomorrow,” said Benjamin Sporton, the CEO of the GCCA.

The association was launched in January 2018. It represents 32 member companies with nine affiliate organisations. Its members hold 35% of global cement production.

HeidelbergCement is set to release its third quarter financial results later this week. In the meantime what can the results from the other major cement producers tell us?

Graph 1: Revenue from major cement producers, Q1 -3 2018. Source: Company reports.

The biggest of the big beasts, China National Building Material (CNBM), released its third quarter update last week. As usual for a major Chinese producer it was the expected story of continuing double-digit growth. Operating income up, profit up and little other information besides.

CNBM’s half-year report back in August 2018 had more information, revealing that cement production volume fell by 5% year-on-year to 143Mt in the first half of 2018 from 150Mt in the same period in 2017. This was pinned on ‘flat’ demand, increased pressure on environmental protection and rising costs of fuel and raw materials. As we mentioned at the time the state-owned company is attempting to cope with the aftermath of China’s great construction boom. National Bureau of Statistics (NBS) data shows that local cement sales dropped by 8% year-on-year to 158Mt in the first nine months of 2018. CNBM’s cement sales are likely to have dropped also so far in 2018 but continuing industry consolidation and/or the merger with Sinoma may save them. With this in mind note the lack of sales volumes figures from CNBM and Anhui Conch in Graph 2 below.

Graph 2: Cement sales volumes by major cement producers, Q1 -3 2018. Source: Company reports.

Of the other larger Chinese producers, Anhui Conch’s third quarter report was similarly sparse, sticking to the facts (revenue and profit up) and discussing in more detail a recent large-scale sale and purchase agreement with Jiangsu Conch Building Materials with a value of up to around US$230m. China Resources Cement is typically more verbose in its results releases. Its turnover and profits are also up so far in 2018 but it actually explained that cement and clinker prices had risen by 32%.

Outside of China, LafargeHolcim’s results were mixed in a direct year-on-year comparison but more favourable on a like-for-like basis. Net sales and cement sales volumes are growing slowly but recurring earnings before interest, taxation, depreciation and amortisation (EBITDA) fell very slightly. Growth in Europe and North America was countered by issues in Asia Pacific, Latin America and Middle East Africa. Chief executive Jan Jenisch was more optimistic than at the same point in 2017 with no talk of ‘lacking potential’ and more emphasis on ‘positive momentum.’

As for the others, both Cemex and UltraTech Cement are looking good so far. Growth in Mexico and the US has bolstered Cemex’s performance giving, it a 7% year-on-year boost to US$10.9bn in the first nine months of 2018. Cement sales volumes grew more slowly at 3%, although operating EBITDA remained flat. Part of this was down to poorer markets south of Mexico, notably in Colombia. UltraTech Cement is still looking good after its acquisition of Jaiprakash Associates’ plants in 2017 but earnings and profits have started to decline. The Indian market leader has blamed this on mounting energy and logistics costs coupled with local currency depreciation effects.

So, in summary, generally good news from the big producers, although issues are present in certain markets, notably South America. HeidelbergCement has already set the scene for its third quarter results with a warning that its earnings are down due to poor weather in the US and rising energy costs. Sales volumes and revenue are said to be ‘within expectations.’ Its Indian subsidiary, HeidelbergCement India, reported storming figures for its half-year to the end of September 2018 with double-digit growth across sales, sales volumes and earnings. Less reassuringly, its larger Indonesian subsidiary reported falling sales for the first nine months of 2018. All eyes will be on HeidelbergCement later in the week to see how this plays out.

China: China National Building Material’s (CNBM) revenue rose by 21.5% year-on-year to US$22.5bn in the first nine months of 2018 from US$18.5bn in the same period in 2017. Its net profit nearly doubled to US$1.7bn from US$956m.

China: Lubao Cement has ordered three vertical roller mills from Germany’s Loesche for a new 4500t/day plant that is being built at Bei Liu in Guang Xi. The project is being handled by Sinoma (Suzhou) Construction, part of Sinoma International Engineering and China National Building Material Group (CNBM) in turn.

Loesche is supplying three mills for the project, one each for raw material, coal and clinker/slag. One four-roller mill with a capacity of 450t/hr will be used for grinding cement raw material to a fineness of 12% with a sieving residue of R 80μm. Another mill with a throughput of 200t/hr will be used for the subsequent grinding of cement clinker to a fineness of 3400 - 3600 Blaine. A large three-roller mill with a capacity of 42t/hr will be used for grinding fuel coal to a fineness of 2% and a sieving residue of R 80μm.

No value for the order has been disclosed.