Displaying items by tag: Ecuador

Peru’s been the place over the last week with news reports of new production capacity and its targeting as a key export market by Vietnam.

Local press reported this week that three new cement grinding plants are planned to start production in 2019. Cemento Inka plans to build a 0.6Mt/yr grinding plant at Ica near Pisco. It also plans to upgrade the kilns at its plant at Cajamarquilla near Lima. Then Mixercon, a ready-mix concrete firm, wants to spend US$20m towards building two new plants in northern Lima, also in 2019. It also has plans to open distribution centres around the capital too.

For a local industry generally dominated by local often family-controlled producers this is quite a change. The larger companies – Pacasmayo, UNACEM and Yura – normally dominate the headlines and the market here. Unsurprisingly then that Pacasmayo and Yura also have upgrades planned for their plants in 2019 too.

Changes to capacity started in late May 2018 when Salaverry-based importer Invecem was said to be buying equipment for a 0.25Mt/yr grinding plant. Then things really started moving when Unacem bought Cementos Portland (Cempor), a joint venture between Chile's Cementos Bío Bío and Brazil’s Votorantim Cimentos. The foreign companies were planning to build a plant near Lima but the project was delayed by a legal battle over environmental issues intitiated by Unacem. This was followed by Cal & Cemento Sur (Calcesur), a subsidiary of Grupo Gloria, announcing that it was going to add a new production line to its cement and lime plant in Puno.

With this level of interest in grinding plants going on it’s unsurprising that Vietnam, a major exporter of cement, has taken an interest. Imports of cement to Peru rose by 65% year-on-year to 0.94Mt in the 12 months from December 2017 to November 2018 from 0.57Mt in the same period previously. Imports of clinker rose by 37% to 0.78Mt from 0.57Mt. This compares to a rise of 21% to 0.61Mt in cement imports in 2017 and a fall of 1.2% to 0.51Mt in 2016. In the 12 months to the end of November 2018 most of that imported cement (81%) came from Vietnam followed by 14% from China and 3% from Mexico. Clinker imports have been more varied with 39% from South Korea, 31% from Vietnam, 19% from Ecuador and 11% from Japan. The general situation for the clinker producers has been a slight increase in cement production to 10Mt for the 12 months to the end of November 2018 and slightly higher increases in despatches.

So, it looks like an apparent cement demand is up in Peru and the importers are rushing to meeting demand. The question, then, is why haven’t the clinker producers announced projects to squeeze out the grinders? As mentioned above Pacasmayo and Yura have upgrades planned but nothing really large seems to be coming yet. Also, given the tough time Cempor was given by the local companies what kind of opposition are the new projects by Cemento Inka, Mixercon and Invecem likely to face? The country’s gross domestic product (GDP) growth rate is below the glory days of the 2000s when it topped 6% but it is still one of the strongest in South America with 3.8% forecast for 2019 by the World Bank. This is the country in the region to watch in 2019.

Ecuador: FCT Combustion has won an order to supply a clay dryer to Cemento Chimborazo. The order includes a complete raw material drying system. It consists of a 41.2t/hr Triplex drier and a fluidised bed combustion system for petcoke and alternative fuel firing. No value or commissioning date has been disclosed.

Bolivia: Imasa, with ThyssenKrupp Industrial Solutions and Valoriza, has been awarded the contract to build a 1.3Mt/yr cement plant for Empresa Publica Productiva Cementos de Bolivia (ECEBOL) at Chiutara in Potosí. The contract is worth US$241m and it is expected to take three years to complete. President Evo Morales signed the deal with representatives of the European engineering companies.

Imasa is also building a similar sized plant for ECEBOL at Jeruyo, Caracollo that is scheduled to be finished in mid-2018. Elsewhere in Latin America the Spanish engineering firm is building a 2600t/day clinker production line for Unión Cementera Nacional (UCEM) at Riobamba in Ecuador.

US: FCT Combustion has reported service updates to its clients in Ecuador, the US and Canada.

Hormicreto in Cuenca, Ecuador is preparing for commissioning of its G-Jet Hot Gas Generator for alternative liquid fuels firing, with a thermal capacity of 5.2MW. The system will provide hot air for the raw and cement swing mill application. FCT is responsible for the complete supply from the waste oil tank to the hot gas generator. Hormicreto is also commissioning a new riser duct natural gas firing system. FCT has also supplied two K-Jet Calciner Burners at the riser.

The Lehigh Cement Leeds plant in Alabama, US has awarded FCT with a new contract for a natural gas firing system for their riser duct. The system, rated at 30MW, will consist of a NPFA 86 Valve Train and K-JetCalciner Burner.

St Marys Cement, part of the Votorantim Group, has ordered, via Arctic Combustion, two K-Jet Calciner Burners for natural gas at the riser for its Ontario, Canada plant. The K-Jet Burner has a cutter block system that adjusts gas velocity on the fly during operation.

The CRH Mississauga plant in Canada has hired FCT to make an audit of several of its pieces of combustion equipment of the plant.

Ecuador: Union Andina de Cementos (UNACEM) has been recognised as an eco-efficient company by the Ministry for the Environment. The certification is given to companies that have demonstrated environmentally friendly production. Unacem submitted four case studies to qualify for the certification, according to La Hora. These included examples of using slag to produce clinker and co-processing alternative fuels like palm kernel shell and waste oils.

Ecuador: Hormicreto has ordered two calciner burners and a hot gas generator for its swing mill application, for alternative liquid fuels firing, with a thermal capacity of 5.2MW, including the complete the fuel pumping, heating and valve train, from FCT Combustion for its cement plant in Cuenca, Ecuador.

Change draws nearer this week in the Ecuadorian cement industry with the announcement of further details on a new integrated cement plant. Union Cementera Nacional (UCEM) plans to build its third cement plant. The part-government owned group will build its new 2200t/day facility in the country's central Chimborazo province. The move will expand the group's domestic production from 1600t/day to 3800t/day, adding to its existing 650t/day of plant in Chimborazo and its 950t/day plant in Azogues. The expansion was supported by a US$230m investment agreement agreed in September 2015 between UCEM and Casaracra.

The timing is interesting here given that cement sales have reportedly fallen year-on-year by 7% for the first seven months of 2015, according to Ecuadorian Institute of Cement and Concrete (INECYC) data. Holcim, in its financial report for the first half of 2015, attributed its lower cement volumes to effects on the local economy by lower oil prices and poor weather. This also followed a declining year for volumes in 2014 after Holcim reported a record year in 2013.

Holcim also reported continuing to export clinker to its Ecuador unit in 2014 despite the drop in volumes. To that end it completed the second phase of its own expansion project at its Guayaquil cement plant back in March 2015. It increased its clinker production capacity to 4500t/day at the site at a cost US$400m.

Also of note, but on a smaller scale, was the announcement by the North American subsidiary of Gebr. Pfeiffer in September 2015 that it was supplying a new MPS swing mill for an existing grinding station at a clinker plant run by Hormicreto. Published details are sketchy on this plant but A TEC Greco refers to supplying a burner to the company for a cement kiln in 2013. The mountainous location and ownership by a concrete producer suggest that this may be a mini-cement plant.

Following the departure of Lafarge from the market at the end of 2014, Ecuador now has three main cement producers: LafargeHolcim (inheriting the Holcim assets), UCEM and Union Andina de Cementos (UNACEM). UCEM's expansion plans will increase its share of the industry by production capacity making it the second largest producer in the country. MCPEC - INECYC estimates projected that cement demand would reach 9Mt/yr in 2018. Meanwhile Manuel Román Moreno, general manager of the Empresa Pública Cementera del Ecuador (EPCE), estimated that the country imported around 1Mt/yr of clinker in 2014.

The question then for UCEM is whether the country will want 9Mt/yr of cement in 2018 with a depressed price of crude oil. As an Organisation of the Petroleum Exporting Countries (OPEC) Ecuador's economy is, no doubt, feeling the pinch from the low price of crude oil after a period of growth. In its expansion announcement UCEM reported the reliance of the new plant on bunker oil. This will be trucked in from the Amazonas (Shushufindi) refinery in Sucumbios province and purchased at a subsidised price. Cheap oil can be used to run the plants but it may be needed more to run the country's infrastructure demand for building materials such as a cement.

Ecuador: Gebr. Pfeiffer Inc, a subsidiary of Germany's Gebr. Pfeiffer SE, was recently contracted to supply a complete grinding unit to replace aging ball mills at the Hormicreto clinker plant in Ecuador.

The new grinding unit helps reduce energy consumption and improves the overall grinding efficiency, allowing the plant to increase production from a single mill. Gebr. Pfeiffer supplied the following components of the new grinding station:

• MPS 2500 BC swing mill with 'Lift and Swing' technology;
• SLS 2250 BC classifier;
• Bucket elevator;
• Reject conveyor belt;
• Chutes and divert chutes;
• Reject silo;
• Weigh feeder;
• Dedusting unit;
• Metal detector;
• Separator;
• Rotary locks;
• Bag filter;
• Mill fan;
• Ducting, expansion joints and dampers;
• HML 1250 Pfeiffer hot gas generator;
• MCC, control and instrumentation;
• Related engineering services.

Delivery of the grinding unit is expected to be complete by December 2015.

Ecuador: Cement sales fell by 7.04% to 3.38Mt between January and July 2015 compared to 3.64Mt in the same period in 2014, according to data from the Ecuadorian Institute of Cement and Concrete (INECYC). Sales are expected to drop between 10% and 15% in 2015 compared to 2014 when sales of 6.47Mt were recorded.

Consumption is high in Guayas, Azuay, Manabí and Pichincha, according to El Telegrafo. Holcim holds 60.5% of the local market, followed by Unacem (formerly Lafarge) with 22.5% and Union Cementera Nacional (UCEM) with 17%. Recent developments include a US$400m modernisation project at Holcim's Guayaquil plant and a US$230m expansion by Cementera Nacional with Cementos Yura to expand the Riobamba plant.

Ecuador: Holcim Ecuador has inaugurated the second phase of its modernisation project at the 4500t/day clinker capacity Guayaquil plant. The expanded production capacity replaces the need for imports. Approximately US$400m has been invested in the modernisation work in the last five years. The project has included a particular focus on limiting the plant's environmental impact. Around 20% of investment has been spent on environmental control equipment. The new clinker line will help Holcim Ecuador to reduce its CO2 emissions by 700,000t/yr.