Displaying items by tag: China
Germany/China: Baltrader Capital has ordered the construction of two cement carriers from China’s Fujian Southeast Shipbuilding, who will deliver the new vessels from end of 2020. The ships will be intended for the European shortsea trade. Following the completion of the order, the Baltrader fleet will comprise 12 cement carriers with pneumatic self-discharging systems.
Each of the sister vessels, CemCoaster and CemClipper, measures 98m in length, 15.6m in width and carries 4650t at 6m draft. They will be equipped with a MaK main engine, allowing a future conversion into dual fuel operation. The ships will then be optionally run on liquid natural gas (LNG) or on marine gasoil.
The ships have been planned and designed in Germany by SDC Ship Design & Consult in cooperation with the project engineering department of the BRISE-Group. Dutch producer Van Aalst Marine & Offshore will supply the automatic self-discharging system, powered alternatively by the main engine’s shaft generator or the auxiliary generators. It can be used for the transportation of loose cement, ground granulated blast-furnace slag and fly-ash. It will have a loading capacity of 500t/hr and unloading capacity of 250t/hr. Additionally, these iceclass 1B ships are equipped with a ballast water treatment system (BWTS).
Timken buys the Diamond Chain Company
02 April 2019US: Timken has acquired the Diamond Chain Company from Amsted Industries for an undisclosed sum. The US-based chain manufacturer supplies a range of industrial markets, which include material handling, mining and aggregates.
"The acquisition of the Diamond Chain Company adds another strong industrial brand with a reputation for quality, reliability and performance to Timken's growing power transmission portfolio," said Richard G Kyle, Timken president and chief executive officer. He added that the purchase was an ‘excellent strategic fit’ with Timken’s drives chain business and that it would aid its manufacturing presence in Asia.
The Diamond Chain Company was founded in 1890 and it has its headquarters in Indianapolis, Indiana. It has manufacturing operations in the US and China. It employs approximately 370 people.
China/France: Song Zhi Ping, president of China National Building Material Company (CNBM), and Frédéric Sanchez, chairman of Fives, have signed strategic agreement towards climate change and cooperation in third countries. This agreement develops the collaboration plans drawn up in January 2019 between cement plant manufacturer CNBM the engineering group Fives. It forecasts a volume of business of at least Euro600m over three years, and forms part of CNBM’s stated strategy of developing in partnership with western companies. The agreement was signed at the Elysée Palace in Paris during a state visit to France by China’s President Xi Jinping.
The agreement focuses on upgrading CNBM’s cement plants in China, building new plants outside of China and creating a Joint Engineering Centre to implement these projects and share information. The Joint Engineering Centre was inaugurated on 28 February 2019 in Shanghai. With regards to modernising its cement production lines in China, Fives said that its technologies, in grinding in particular, would ‘significantly’ improve performance and return on investment with regards to modernising CNBM’s domestic cement production lines. Fives said that the agreement is in full alignment with the Paris Agreement. It added that the agreement also shows the ‘mutual trust’ between the two companies with respect to intellectual property.
Huaxin Cement grows sales by 32% to US$4.09bn in 2018
29 March 2019China: Huaxin Cement’s sales revenue rose by 32% year-on-year to US$4.09bn in 2018 from US$3.11bn in 2017. Its net profit grew by nearly 150% to US$772m from US$309m. Its cement sales volumes increased by 3% to 70.7Mt and its ready-mix concrete (RMX) sales increased by 11% to 3.56Mm3. By region is operating revenue grew in all domestic regions, except for Jiangxi.
During 2018 the cement producer completed its acquisition of Chongqing Lafarge Shui On Cantian Cement. Its Tibet Shannan Third Phase 3000t/day and Shigatse Second Phase 3000t/day project were put into operation. In total the group added 4.77Mt/yr of cement production capacity in 2018. In its future risk analysis it said that production capacity reduction in the cement industry is ‘yet to be improved and that the ‘fundamental contradiction’ of the overcapacity has not been solved.
Switzerland’s LafargeHolcim’s runs Huaxin Cement as a joint venture. The company operates almost 200 subsidiaries in nine provinces in China as well units in Tajikistan and Cambodia. It has a cement production capacity of 100Mt/yr, RMX capacity of 23.3Mm3/yr and an aggregate capacity of 25Mt/yr.
Dongwu Cement grows sales and profits on rising prices
29 March 2019China: Dongwu Cement sales rose by to US$77.4m in 2018 from US$53.3m in 2017. Its profit more than tripled to US$13.4m from US$3.7m. Its cement sales volumes grew by 5% to 1.45Mt. It attributed its sales and profit growth to increasing cement prices.
Singapore: International Cement Group is planning to build new cement plants in Central Asia, Africa and South-east Asia to complement China’s Belt and Road Initiative. The company, formerly known as Compact Metal Industries, has held a ceremony to mark its listing at the Singapore Stock Exchange, according to the Business Times Singapore newspaper.
The company holds a 65% stake in a 1.2Mt/yr cement plant in Tajikistan. This unit’s production capacity was recently upgraded to 1.35Mt/yr. In mid-2018 it said it was building a new plant in Kazakhstan. This project is scheduled for commissioning by the end of 2019. In late 2018 the group said it had failed to buy a majority stake in a partially-built cement plant at Salamanga in Mozambique. In March 2019 the group agreed to buy a majority stake in Namibia’s Ohorongo Cement from Schwenk Namibia for US$104m.
Prestige Cement inaugurates grinding plant in Abidjan
29 March 2019Ivory Coast: Prestige Cement has inaugurated a 1.2Mt/yr plant at Abidjan. The Chinese-Ivorian joint venture had an investment of around US$35m, according to the Agence de Presse Africaine. The unit has two 0.6Mt/yr production lines using vertical roller mills. Souleymane Diarrassouba, Minister of Commerce, Industry and SME Promotion, attended the event on behalf of the government. Chinese ambassador Tang Weibin was also in attendence.
China in 2018
27 March 2019Cement price rises by the major Chinese cement producers boosted sales revenue and profits in 2018. This is quite a trick, given that overall cement sales in the country have fallen by 11% year-on-year to 2.17Bnt in 2018 from a high of 2.45Bnt in 2014.
Graph 1: Cement sales in China, 2009 – 2018. Source: National Bureau of Statistics China.
On the corporate side most of the major Chinese producers issued positive profit alerts towards the end of 2018 and this has been followed up by (mostly) glowing financial reports. Data from the National Development and Reform Commission in February 2019 showed that the profits of local cement companies more than doubled to US$64bn in 2018 compared to 2017. As mentioned above, this has been fueled by price rises. In December 2018 the average price of cement was 10.6% higher than in December 2017.
This has translated into a 19% year-on-year rise in sales revenue at China National Building Material Company (CNBM) to US$32.6bn in 2018 from US$27.4bn in 2017 and its profit grew by 44% to US$2.09bn from US$1.46bn. Anhui Conch’s performance was even better. Its revenue grew by 70.5% to US$19.1bn from US$11.2bn. However, differences emerge between the two companies in terms of cement sales volumes. CNBM’s sales volumes fell by 2.4% to 323Mt. However, Anhui Conch’s sales volumes increased by 25% to 368Mt. This may not be in line with the government’s plans to scale down production but it does fit the industry consolidation model, as the company acquired Guangdong Qingyuan Cement in 2018. The results from other producers such as China Shanshui Cement, West China Cement, Tianrui Cement and China Resources Cement all tell similar tales.
If the figures from the National Bureau of Statistics China (NBS) above are accurate then this is a drop of over 300Mt of cement sales over four years. This is more than the cement sales of every other country except India. Indeed, it’s more cement than some continents make! It marks the deceleration of the Chinese industry since 2014 and represents a major achievement. However, whether it is enough remains to be seen. After all, sales of over 1500kg/capita are still way above the consumption curve for developed Western-style economies. Yet, imports of cement to China from Vietnam rose in 2018, suggesting that the price rises are being driven by shortages of cement!
China is undoubtedly an exceptional case, as its economic star has blossomed in the last few decades and it has literally built itself into history. Yet one might expect its consumption to be around 1Bnt/yr, a per-capita level more similar to Spain and Italy prior to the financial crash. In other words, even if the recently observed 5% year-on-year contraction is maintained, the Chinese industry would only reach this (still very high) level by the mid 2030s. However, continued national development, mega-infrastructure projects, a shift to more exports and China’s unique market could hold the consumption per capita figure higher.
Meanwhile, Chinese producers are commissioning more and more projects outside of China. Notably, CNBM saw its cement sales everywhere except for the Middle East and China. Success abroad is not guaranteed. The story in the years to come will be the balance between projects at home and those abroad.
CNBM’s cement sales rise by 31% to US$6.17bn in 2018
26 March 2019China: China National Building Material Company (CNBM) revenue grew by 19% to US$32.6bn in 2018 from US$27.4bn in 2017. Its profit rose by 44% to US$2.09bn from US$1.46bn. Its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 18% to US$6.33bn from US$5.37bn.
By product line its cement sales rose by 25% to US$18.7bn from US$14.9bn. Concrete sales rose by 31% to US$6.17bn from US$4.70bn. Overall sales rose in most regions, with the exception of the Middle East and Africa. The group’s cement companies’ cement production volumes fell slightly to 336Mt and cement sales fell by 2.4% to 323Mt. Particular declines in cement sales were noted at North Cement, Sinoma Cement, Tianshan Cement, Ningxia Building Materials and Qilianshan. The group’s overall concrete sales volumes rose by 3.4% to 96Mm3.
Sales from its engineering services division rose by 9% to US$5.09bn from US$4.67bn.
Price rises push profit boost for Anhui Conch in 2018
22 March 2019China: Anhui Conch’s revenue grew by 70.5% year-on-year to US$19.1bn in 2018 from US$11.2bn in 2017. Its sales volumes of cement rose by 25% to 368Mt. Its net profit increased by 88% to US$4.44bn from US$2.36bn. The cement producer attributed this to ‘significant’ growth in its prices.
During the reporting year the group commissioned four cement grinding units for its Yueqing Conch Cement and Jiande Conch subsidiaries. It also acquired Guangdong Qingyuan Cement, increasing its production capacity of clinker and cement by 2.7Mt and 4Mt respectively.
Outside of China, the group completed and commissioned two clinker production lines and four cement grinding units at Battambang Conch Cement in Cambodia and PT Conch North Sulawesi Cement in Indonesia. Its Luangprabang Conch Cement project in Laos has moved to the equipment installation phase and construction of Myanmar Conch Cement (Mandalay) in Myanmar has begun. Preliminary work has also started for the Vientiane Conch Cement project in Laos and the Qarshi Conch Cement project in Uzbekistan.
At the end of 2018 the group has a clinker and cement production capacities of 252Mt/yr and 353Mt/yr respectively.