Displaying items by tag: Electricity

China: Anhui Conch Cement plans to invest US$2.81bn in capital expenditure (CAPEX) throughout 2023. The investments will go towards building new capacity, upgrading to new technologies and increasing plants' energy efficiency. The Morning Star newspaper has reported that the producer currently faces high energy costs, against a backdrop of reduced cement demand.

Anhui Conch Cement recorded sales of US$19.2bn in 2022, down by 21% year-on-year from US$24.4n in 2021.

Philippines: Holcim Philippines recorded sales of US$490m during 2022, down by 1% year-on-year from US$499m. Sales rose by 9% year-on-year to US$266m during the second half of the year, 53% of the full-year figure. Throughout the year, the producer increased its alternative fuel (AF) substitution rate by 20% year-on-year and processed 1Mt of waste from industrial partners and local government bodies. Digitisation initiatives and alternative raw materials substitution helped the producer to reduce its specific CO₂ emissions by 7%. The Business Mirror newspaper has reported that the year also brought 'surging' energy and fuel costs for the producer.

President and CEO Horia Adrian said "In the face of extraordinary challenges, our company and people displayed tremendous resilience that enabled us to deliver positive financial performance and contribute to building progress in the country. Alongside a strong sales rebound in the second half and expansion of our customer base, we accelerated the decarbonisation of our operations."

El Salvador: Holcim El Salvador says that the upcoming solar power plant at its El Rondo cement plant will have a capacity of 21.4MW, across three separate installations. Energy provider AES El Salvador holds a 20-year power supply agreement for construction and operation of the plant. The La Prensa Grafica newspaper has reported that Banco Cuscatlán supplied a loan for the project. When operational, the new solar power plant will lower Holcim El Salvador's oil consumption by 43,000 barrels/yr.

Holcim El Salvador CEO Rodrigo Gallardo said "We are not only making solutions and products with a lower CO₂ content, but also cutting CO₂ in our production processes."

Afghanistan: Ghori Cement says that its Baghlan cement plants currently produce 600t/day of cement, corresponding to annual production of 0.22Mt/yr. The producer states that production is restricted by shortages of electricity and vehicles. With regular supply of these, it would increase its production by 33% to 800t/day (0.29Mt/yr), according to the company.

Production at the Baghlan cement plants was previously suspended for four months in mid-2022 due to high coal prices. This was resolved when the government began supplying the plants with coal at a pre-agreed price. The plants then reopened with a daily production of 520t/day (0.19Mt/yr), up by 49% from 350t/yr (0.13Mt/yr).

The provincial government said that an upgrade with equipment from China and Iran since increased production by 15% to its present 600t/day (0.22Mt/yr).

Pakistan: Dandot Cement recorded a net loss after taxation of US$463,000 during the first six months of the 2023 financial year. This corresponds to a year-on-year rise of 8% from US$429,000 in the first half of the 2022 financial year. Its finance costs rose by 10% to US$437,000, while its administrative expenses fell by 18% to US$71,400.

The producer's 0.5Mt/yr Lahore cement plant closed in 2019 for a 'balancing, modernisation and replacement' upgrade. Dandot Cement says that the on-going project is on schedule for completion before the end of the current Pakistani financial year on 30 June 2023. The company anticipates a rise in domestic cement demand due to new infrastructure projects and the renovation of existing infrastructure. However, it noted several principal risks and uncertainties, namely rising coal, diesel and electricity prices, rising interest rates, currency devaluation and current overcapacity in the Pakistani cement industry.

US: Alamo Cement has completed a new solar power unit that supports its integrated cement plant in San Antonio, Texas. The unit has a capacity of 17,800MWhr and is situated on an 18 hectare site. It is expected to generate up to 15% of the plant’s annual power consumption and reduce electricity costs.

Ireland: CRH expects to record increased earnings before interest, taxation, depreciation and amortisation (EBITDA) and profit before tax in its 2022 results. The producer has predicted an EBITDA of US$5.5bn, up by 10% year-on-year from US$5bn in 2021. This would entail a 0.8% year-on-year decline in its fourth-quarter EBITDA in the year. The producer also expects its profit after tax to rise by comparison to its 2021 figure of US$3.1bn.

CRH said that its projection “captures the impact of bad weather, higher energy costs in Europe, the risk of destocking in the building products chain and all this against tough comparisons from 2021.”

Denmark: FLSmidth's cement business recorded 29% year-on-year sales growth to US$2.14bn in 2022, from US$1.66bn in 2021. The business' earnings before interest, taxation and amortisation (EBITA) totaled US$28.9m, compared to negative earnings of US$2.7m in 2021. During the year, its Americas region contributed 34% of sales, its Europe, North Africa and Russia region (subsequently Europe and North Africa) 26%, its Sub-Saharan Africa, Middle East and South Asia region 25% and its Asia-Pacific region 15%. Overall, FLSmidth's sales rose by 24%, while its EBITA fell by 8%, year-on-year.

The supplier said "Overall, our cement service showed strong performance throughout the year. In some countries, we did however start to see the first cases of budget constraints imposed to counter the increasing energy costs."

Looking forward to 2023's anticipated result, it noted a 'healthy' order pipeline, but an anticipated slow-down in producers' decision making. This is due to concerns related to energy volatility continuing the wake of the outbreak of war in Ukraine. FLSmidth concluded "The short-term outlook for the cement industry remains impacted by overcapacity, and the potential recession is expected to impact market demand negatively over the coming period."

South/Central America: Holcim Latinoamérica says that it expects to use 18% renewable power across its operations in February 2023, compared to 8% throughout 2022. The regional unit of Holcim says that it will increase its share of renewable power to 25% by the end of 2023. It is committed to a target of 60% renewables by 2030. Holcim Latinoamérica's operations span Argentina, Colombia, Costa Rica, Ecuador, El Salvador, Nicaragua and Mexico.

Earlier in February 2023, Holcim Nicaragua commenced construction of a 3.38MW solar power plant in Nagarote, León Department. The producer said that the solar power plant's contribution to the national grid will cover 40% of its consumption in its cement operations there.

Holcim's Latin America regional head Oliver Osswald said “Our world is in constant change from population growth, urbanisation and the climate challenge. That is why, at Holcim, we are determined to put our best foot forward to accelerate low carbon circular construction."

Tunisia: Les Ciments de Bizerte recorded a full-year consolidated turnover of US$40.1m in 2022, corresponding to a drop of 5.4% year-on-year from 2021 levels. The producer's clinker production fell by 24% year-on-year to 538,000t. African Manager News has reported that the company faced a forced stoppage during the year due to a disruption to its raw materials supply. Meanwhile, its costs increased amid rises in the price of petcoke, electricity, diesel and packaging materials.