Displaying items by tag: Closure

South Korea: Cement producers say that an on-going truck drivers' strike will force them to suspend production from 5 December 2022 if it continues for another week. Yonhap English News has reported that Industry Minister Lee Chang-Yang spoke to industry representatives on a visit to Asia Cement's Jecheon cement plant in Chunbuk. The cost of missed deliveries after four full days of the strike on 28 November 2022 was US$34.6m.

US: Lehigh Hanson has announced the upcoming permanent closure of its Glen Falls cement plant in northeastern New York. Times Union News has reported that the producer has extended an offer of financial and job-hunting support to the plant's 85 employees. A phased closure will commence in 2023. The company said that 'changes to the competitive landscape within the context of a global cement industry' partly informed its decision, in addition to the 'small, aging and inefficient' condition of operations at the plant. Lehigh Hanson's Mitchell, Indiana, cement plant will cover the plant's market in future.

Lehigh Hanson Northeast regional president Alex Car said "We are committed to continuing to supply our customers in the New England region. We have the available capacity to meet the current and future needs of our customers, even after the Glens Falls plant halts production." Car added "We are thankful for the dedication and efforts of our Glens Falls workforce over the years and we will work to minimise the impacts to our employees and the community as much as possible."

Thailand: Siam Cement Group (SCG) recorded total national cement consumption growth of 6% year-on-year throughout the first nine months of 2022. The producer partly attributed the comparatively high figure to nationwide building site closures during the first nine months of 2021. In its management discussion and analysis of its third quarter 2022 results, the group noted commercial construction as the main driver of demand growth. Its cement consumption rose by 8% year-on-year, cement use by infrastructure projects grew by 6% and cement demand for residential projects rose by 5%.

Public construction supplies 40% of Thai domestic cement demand, with commercial and residential construction together accounting for the remaining 60%.

SCG previously reported that Thai cement demand had dropped by 5% year-on-year during the first half of 2022.

US: Lehigh Hanson plans to stop cement production at its integrated Permanente plant near Cupertino in California. The subsidiary of Germany-based Heidelberg Materials plans to use the site as a distribution centre and to continue some quarry work, according to the Mercury News newspaper. The cement plant was originally opened in 1939 but it stopped clinker production in 2020.

Malaysia: Cahya Mata Sarawak has informed its customers that its cement despatches will be 'back to normal' by 6 November 2022. The producer's closure of its 1Mt/yr Kuching cement plant for maintenance, followed by unexpected raw materials supply issues, has caused a shortage of cement in western Sarawak State. Bernama Daily Malaysian News has reported that a 14-day delay to raw materials deliveries to the Kuching plant ensued due to heavy rains.

The producer said “We would like to apologise for the shortage of cement, and will strive to ensure a steady supply of cement to all of our customers.”

Cahya Mata Sarawak has successfully maintained regular supply of cement to other areas of Sarawak, including Bintulu, Miri and Sibu, through despatches of cement from its Bintulu grinding plant.

China: Dalian Onoda Cement, a subsidiary of Japan-based Taiheiyo Cement, says that it plans to suspend cement production at its Dalian cement plant in Liaoning. The producer said that it will shut the plant when its land lease expires in December 2022.

Nigeria: The government of Kogi State ordered Dangote Cement to shut down its Obajana cement plant within 48 hours on 13 October 2022. Kogi State Governor Yahaya Bello also ordered the release of impounded Dangote Cement trucks across the state.

Bello thanked Kogi residents for their “resoluteness in the ownership impasse between Dangote Group and the state government.” He added, "While the state government recognises the right of the citizens to peaceful protest, as we witnessed across the state yesterday, we urge people to remain civil and law abiding and to give room for constitutionalism. Breakdown of law and order will not be in the interest of anyone."

Lorry drivers blocked the Abuja - Lokoja road in protest against the closure on 14 October 2022, according to the Advocate newspaper. Meanwhile, a gang has raided the plant, destroying property and shot firearms at the 27 employees who remained on site.

Germany: Heidelberg Materials says it is considering shutting down plants in Germany due to the high cost of gas and electricity. In comments reported by Reuters chief executive officer Dominik von Achten said, "If power prices won't come down sustainably, we would have to take individual plants in Germany completely off the grid. That's what we have prepared for." He added that the company is shifting production to times and days when power prices are lower including at the weekend. However, changing staff shift patterns has required ongoing discussions with labour unions.

The building materials company expects its energy bill to rise by around half year-on-year to over Euro3bn in 2022. It has called on the German government to place a cap on energy prices despite measures the company has already taken to protect itself from soaring costs, such as using alternative fuels.

India: Gujarat Sidhee Cement again closed its Sidheegram cement plant on 11 September 2022. The producer says that the temporary suspension of production will last until 1 October 2022.

Belgium: Cembureau, the European Cement Association, has called for urgent action to be taken to support cement production due to large increases in the cost of electricity. It said that, if no measures were taken at both the European and national level, the current energy prices would lead to widespread plant closures across the European Union (EU). This in turn could create a crisis in the construction supply chain. It explained that one tonne of cement normally takes around 110kWh of electricity to produce. Therefore, with electricity prices now between Euro700 - 1000mWh, as observed in several EU member states, electricity costs amount to Euro70 – 110/t of cement, tripling the total cost of production.

The association has called for: all available sources of electricity generation to be used to boost power supplies; the immediate introduction of emergency measures, such as price caps; that the EU temporary state aid framework adopted in late March 2022 should allow all energy-intensive industries to have access to state aid covering 70 - 80% of eligible costs; and that co-processing in cement kilns should be actively encouraged and promoted at EU, state and local levels.

It added that further measures should also be considered, including: the electricity market design rules, including the marginal price setting mechanism, should be changed to prevent further electricity price hikes in the future; the cement sector should be made eligible for financial compensation under the EU emission trading scheme indirect state aid guidelines and that indirect emissions should be included in the EU Carbon Border Adjustment Mechanism (CBAM); the large-scale deployment of renewable energy should be supported across the EU; and that the pace of the EU climate agenda ('Fit for 55') should be maintained, and the CBAM should be implemented in a timely manner.