Displaying items by tag: Expansion

India: JK Cement has inaugurated a US$341m new line at its Panna cement plant in Madhya Pradesh. The new line doubles the plant's capacity from 3.3Mt/yr to 6.6Mt/yr. Press Trust of India News has reported that the line is equipped with optimised kiln systems, energy-saving technologies and a waste heat recovery plant. The expanded Panna plant will help serve ‘growing demand’ in Central India, Uttar Pradesh and Bihar.

Managing director Raghavpat Singhania said "Our new Panna plant production line is a key pillar in our comprehensive business expansion plan, propelling us towards our vision of becoming a leading player in the cement industry. This strategic expansion allows us to meet the rising demand for high-quality cement, ultimately enhancing our ability to serve our customers.”

Changes are underway in South Asia’s second largest cement sector, with two legal developments that affect the industry set in motion in the past week. At a national level, the Competition Commission of Pakistan recommended that the government require cement producers to include production and expiry dates on the labels of bagged cement. Meanwhile, in Pakistan’s largest province, Punjab, a new law tightened procedures around the establishment and expansion of cement plants. At the same time, the country’s cement producers began to publish their financial results for the first nine months of the 2024 financial year (FY2024).

During the nine-month period up to 31 March 2024, the Pakistani cement industry sold 34.5Mt of cement, up by 3% year-on-year. Producers have responded to the growth with capacity expansions, including the launch of the new 1.3Mt/yr Line 3 of Attock Cement’s Hub cement plant in Balochistan on 17 April 2023. China-based contractor Hefei Cement Research & Design executed the project, including installation of a Loesche LM 56.3+3 CS vertical roller mill, giving the Hub plant a new, expanded capacity of 3Mt/yr.

Pressure has eased on the operating costs of Pakistani cement production, as inflation slowed and the country received a new government in March 2024, following political unrest in 2022 and 2023. Coal prices also settled back to 2019 levels, after prolonged agitation. Pakistan Today News reported the value of future coal supply contracts as US$93/t for June 2024, down by 2% over six months from US$95/t for January 2024.

Nonetheless, cost optimisation remained a ‘strong focus’ in the growth strategy of Fauji Cement, which switched to using local and Afghan coal at its plants during the past nine months. Its reliance on captive power rose to 60% of consumption, thanks to its commissioning of new waste heat recovery and solar power capacity. During the first nine months of FY2024, the company’s year-on-year sales growth of 14% narrowly offset cost growth of 13%, leaving it with net profit growth of 1%.

Looking more closely, the latest sales data from the All Pakistan Cement Manufacturers Association (APCMA) shows a stark divergence within cement producers’ markets. While exports recorded 68% year-on-year growth to 5.1Mt, domestic sales fell, by 4% to 29.4Mt. The association further breaks down Pakistani cement sales data into South Pakistan (Balochistan and Sindh) and North Pakistan (all other regions). Domestic sales dropped most sharply in South Pakistan, by 6% to 5.16Mt. In the North, they dropped by 3% to 24.2Mt. Part of the reason was a high base of comparison, following flooding-related reconstruction work nationally during the 2023 financial year. Meanwhile, the government finished rolling out track-and-trace on all cement despatches during the opening months of the current financial year, and commenced the implementation of axle load requirements for cement trucks. APCMA flagged both policies as potentially disruptive to its members’ domestic deliveries, amid a strong infrastructure project pipeline.

Pakistani producers suffer from overcapacity, but have established themselves as an important force in the global export market. They continue to locate new markets, including the UK in January 2024. Lucky Cement was among leading exporters overall, with a large share of its orders originating from Africa.

On 17 April 2024, the government of Punjab province set up a committee to assess new proposed cement projects, with the ultimate goal of conserving water. Falling water tables are considered a significant economic threat in agricultural Punjab. Besides completing an inspection by the new committee, proposed projects must also secure clearance from six different provincial government departments and the local government. While acknowledging the necessity of the cement industry, the government insisted that it will take legal action against any cement plant that exceeds water allowances.

Pakistan’s cement plants have grown in anticipation of a local market boom. Without this strong core of sales, underutilisation will remain troublesome, especially in North Pakistan where exposure is highest. At the same time, APCMA has given expression to the perceived lack of support affecting production and distribution. For an industry with expansionist aims, new restrictions on its growth and operations can feel like an existential menace.

India: Star Cement has launched a new clinker line at its Lumshnong, Meghalaya, cement plant. Capital Market News has reported that the line has a capacity of 3.3Mt/yr.

India: UltraTech Cement has concluded an agreement to acquire The India Cements’ 1.1Mt/yr Parli grinding unit in Maharashtra for US$37.8m. The plant will subsequently figure in a US$60.5m growth drive by the group, aimed at adding 3Mt/yr in new cement capacity in Maharashtra. Current on-going expansions and acquisitions are set to raise the Aditya Birla subsidiary’s capacity to 198Mt/yr.

Pakistan: Attock Cement has announced the successful completion of a new production line at its cement plant in Hub, Baluchistan. This additional line is capable of producing 1.28Mt/yr of cement and commenced operation on 16 April 2024.

India: UltraTech Cement will integrate vertical mill technology from Gebr. Pfeiffer for three new clinker production lines. Gebr. Pfeiffer SE and its Indian subsidiary, Gebr. Pfeiffer India, will fulfil a subsequent order.

At the Happy 3 plant, cement raw material grinding will be conducted using an MVR 5000 R-4 mill, equipped with a 5300kW drive, capable of grinding about 705t/hr to a product fineness of 1.5% R 212µm. Additionally, three MPS 3550 BK mills, each with a 1300kW gearbox, will grind about 45t/hr of petcoke or 90t/hr of coal. These mills come with an integrated SLS 3750 BK classifier.

Gebr. Pfeiffer's MVR mills are distinct in their use of rollers according to the R=C principle. This design allows the same rollers to be used with parts for both raw meal and cement grinding. The MVR 5000 R-4 mill at Happy 3 features four actively redundant rollers, maintaining about 70% production capacity during maintenance. Gebr. Pfeiffer equips MVR mills with maintenance-oriented condition monitoring systems, enabling the implementation of digital maintenance strategies.

Handling of the order will be a collaborative effort between Gebr. Pfeiffer SE and Gebr. Pfeiffer India with all customer support and plant planning managed by Pfeiffer engineers in Noida. Core components like gearboxes, grinding bowls and roller suspensions will be shipped from Europe, while other parts like foundations and classifiers will be provided by the Indian subsidiary. Support for the plants will be managed by the customer support centre in Noida, accessible via remote data or on-site personnel.

US: Holcim has completed a major expansion of its cement holding facility in North Fremont, allowing the plant to meet ‘growing’ market demands in the Omaha region. The US$20m project includes additional rail capacity, a new 50,000t cement dome, an extra silo and a blender for product mixing.

According to the company, the facility now employs seven staff members, up from three, and fulfils the Nebraska Department of Transportation's blended cement requirements using natural pozzolan to create a lower-carbon product.

Holcim's head of US Corporate Communications, Lynn Safranek, said "The availability of extra cement storage and the addition of rail capacity means fewer trips to transport cement from Holcim’s plant in Ste. Genevieve, Missouri, and more reliance on train transportation, which is more efficient than other land-based alternatives.”

US: Fortera has inaugurated its first ‘green’ cement production facility in North America, located in Redding, California. The 2787m² ReCarb plant operates alongside the existing CalPortland cement plant, capturing CO₂ emissions and mineralising the CO₂ into calcium carbonate for production of the company’s low-carbon ReAct cement. The process reportedly reduces emissions by 70% compared to traditional methods, yielding a tonne of ‘green’ cement for every tonne of limestone input. The facility aims to capture 6600t/yr of CO₂ and to produce 15,000t/yr of ‘green’ cement.

According to Fortera CEO Ryan Gilliam, Fortera currently has 20 upcoming projects with various cement producers, which will cost US$150m each. This includes a plant in the Midwest that will be a 25-fold capacity increase compared to the Redding plant, producing 400,000t/yr of ‘green’ cement.

India: Ambuja Cements will acquire the grinding unit of My Home Group in Tuticorin, Tamil Nadu, for US$49.6m. The unit has a capacity of 1.5Mt/yr. The acquisition is spread across a 24.6-hectare site near Tuticorin Port and comes with a long-term fly ash agreement.

The CEO of Cement Business at Adani Group, Ajay Kapur said "In addition to the infrastructure and geographical advantages, Ambuja Cements will also inherit the existing dealer network and retain current employees, facilitating a smooth transition and enabling the rapid ramp-up of utilisation."

The total cement capacity of Adani Group now stands at 78.9Mt/yr.

South Africa: Afrimat has received approval to acquire all of Lafarge South Africa and its subsidiaries. The acquisition has been structured as a locked box transaction, effective 31 December 2022, and the purchase is valued at US$6m. Afrimat also agreed to repay its loan amounts owed equating to US$47.8m. Afrimat confirmed the acquisition of the LSA Group, part of the Holcim Group, on 10 April 2024.

CEO Andries van Heerden said "The time was perfect for Afrimat to return to its roots of quarrying and aggregates to support long-term diversified sustainability across the group." He added that CFO Pieter de Wit will serve as the full-time integration manager to ensure integration of the two entities.

Pieter de Wit said "This exciting deal forms part of the Afrimat group’s ongoing diversification strategy. It will increase Afrimat’s offering in the construction materials space, by expanding the group’s quarry and ready-mix operations nationally."

The deal will bring 800 Lafarge employees to Afrimat. The acquisition also includes Lafarge's fly ash operations and a grinding plant. Funded primarily in cash, Afrimat's move comes at a time when the construction materials sector is experiencing increased demand, driven partly by state initiatives and a ‘robust’ residential building market in coastal regions.