Displaying items by tag: Expansion

India: Ultratech Cement has commissioned an additional 3.35Mt/yr of clinker and 1.8Mt/yr of grinding capacity at a unit in Tadipatri, according to Reuters. This expansion is part of a broader 22.6Mt/yr capacity expansion announced in June 2022, which will bring the company's total cement capacity to 154.86Mt/yr.

Switzerland: Neustark has raised US$69m in a growth equity round to scale up its carbon dioxide removal technology. The funding, led by Decarbonisation Partners—a collaboration between BlackRock and Temasek—will support Neustark's aim to permanently remove 1Mt of CO₂ by 2030. Climate tech growth investor Blume Equity also joined the round, alongside existing backers Holcim, Siemens Financial Services, Verve Ventures and ACE Ventures.

Neustark has developed a technology that captures biogenic CO₂ at its source and utilises it in building materials through an accelerated mineralisation process. This method is currently applied at 19 carbon capture and storage plants in Switzerland, Austria, Liechtenstein and Germany, with 40 more under construction across Europe.

Johannes Tiefenthaler, co-CEO and founder at Neustark, said “We turn the world’s largest waste stream, demolition concrete, into a carbon sink. In the past year, we have already deployed our unique solution at 19 sites. This growth investment will take us into the next exciting phase of our mission, helping us to further scale our impact across Europe, enter new markets in North America and Asia Pacific, and develop new solutions to store even more CO₂ in mineral waste streams.”

France: Cem’in’log has surpassed 1Mt of clinker processed at the Sète site since its inception over four years ago, encouraging parent company Cem’in’EU to continue investments there. Since 2019, the Port of Sète has served as a key entry point for Cem’in’EU’s clinker imports, mainly from North Africa. The site's storage capacity was expanded to 300,000t/yr in 2023. A new warehouse set to increase capacity to 500,000t/yr will begin construction in summer 2024 with a €5m budget. Cem’in’log will also boost its equipment, expecting to operate six rail services weekly by the end of 2024, supporting future expansion.

General manager Jean-Yves Apard said "We are currently dispatching four to five trains per week from Sète, loaded with 1850t of clinker. By the end of 2024, with a second locomotive provided by Regiorail and handled at the port by Viia, we will increase to six trains per week."

Jamaica: Caribbean Cement's US$40m expansion project is set to complete by the first quarter of 2025, boosting cement production by 30%. Managing director Jorge Martinez confirmed the progress during a factory tour hosted by the Jamaica Manufacturers and Exporters Association (JMEA), according to RJR News.

Uzbekistan: By the end of 2024, Uzbekistan will commission new cement production capacity of 8Mt/yr, according to the Uzsanoatkurilishmateriallari Association. This expansion will raise the country’s total capacity to 40.8Mt/yr.

Currently, there are 38 cement companies in Uzbekistan, contributing to an existing capacity of 35.3Mt/yr. From January to April 2024, the country produced 4.8Mt of cement, marking a 19% increase from the previous year, Uzbekistan Daily reports. The projected cement production for 2024 is 16.7Mt, closely aligning with last year's demand of 16.8Mt.

India: Dalmia Bharat has launched a new mill at its Ariyalur manufacturing unit in Tamil Nadu. The new 1Mt/yr cement unit increases the company's total manufacturing capacity to 45.6Mt/yr. This brownfield expansion is valued at US$24.5m and aligns with the company’s aim to increase its capacity to 110-130Mt/yr by 2031.

Managing director & CEO Puneet Dalmia said "Driven by robust infrastructure development, housing and investments, we anticipate cement demand to rise. This increased capacity will facilitate the growing demand in the southern region."

US: Eagle Materials will modernise and expand its Laramie, Wyoming cement plant, increasing its capacity by 50% to approximately 1.2Mt/yr. The expansion includes a new cement distribution facility in northern Colorado. This project aims to cut manufacturing costs by about 25%, generated by the replacement of traditional fuels with lower cost alternative fuels and natural gas, as well as improved operating efficiency. This upgrade will also reduce CO₂ intensity by nearly 20%, according to the company. The US$430m investment also includes upgrading the existing plant, which became operational in 1927 and currently has a capacity of 800,000t/yr. Construction is set to begin immediately, with completion expected in the second half of 2026.

Kenya: East African Portland Cement (EAPCC) has recommenced operations at its Athi River cement plant after a one-month shutdown for renovations and maintenance. The plant has undergone a US$3m upgrade to expand its capacity in order to meet the increasing regional demand for cement, anticipating an annual production of 1Mt/yr within the next two years. Before the upgrade, the plant’s capacity was 310,000t/yr.

Board chairperson Richard Mbithi said critical components used in cement production processes such as filter bags and refractory bricks were replaced during the upgrade. EAPCC also refurbished its grate cooler system, enabling the company to increase its production targets.

Mbithi said “With the finalisation of the plant refurbishment and the resultant improved production and efficiency, we are confident that the company will accomplish the production and revenue targets.”

The company undertook the first phase of maintenance two years ago and it involved the replacement of the kiln shell which was completed in September 2022. This led to improved clinker and cement production and resulted in a 38% increase in revenues, according to the Star Kenya.

Philippines: Phinma Corp is set to expand its cement business with new facilities in Mindanao, according to a spokesperson for the company. The producer will establish a cement plant in Davao, valued at US$34.7m, which will bring the company’s total capacity to 5Mt/yr once completed. The plant is currently awaiting its environmental clearance certificate.

Additionally, the Petra plant in Zamboanga del Norte has started operations, with a cement grinding capacity of 500,000t/yr.

Cemex announced this week that it is preparing to sells its operations in the Philippines to a consortium comprising Dacon, DMCI Holdings and Semirara Mining & Power. Rumours of the divestment first started to appear in the media in February 2024.

The main part of the deal covers Cemex’s cement subsidiaries, APO Cement and Solid Cement, which have been valued at an enterprise value of US$660m. However, this becomes confusing because the actual selling price is the enterprise value minus the net debt and adjusted for the minority shareholding of one of the parent companies, Cement Holdings Philippines (CHP). The deal also includes the sale of a 40% stake in APO Land & Quarry and Island Quarry and Aggregates. Based on a press release issued by CHP to the Philippine Stock Exchange, the actual cost of the divestment appears to be around US$305m. It is hoped that the divestment will complete by the end of 2024 subject to regulatory approval from the Philippines Competition Commission and other bodies.

Cemex entered the market in 1997 when it acquired a minority stake in Rizal Cement. It then built the business up to a cement production capacity of 5.7Mt/yr from its two main integrated plants, the Solid Cement plant in Antipolo City, Rizal and the APO Cement plant in Naga, Cebu. However, CHP has endured a hard time of late, with falling annual operating earnings before interest, taxation, depreciation and amortisation (EBITDA) since 2019 and falling net sales in 2022 and 2020. The bad news continued into 2023, with net sales falling by 17% year-on-year to US$300m in 2023 from US$356m in 2022. It reported a loss of US$35m in 2023, double that of 2022. The company blamed the fall in sales on lower volumes. It noted that prices were also down and energy costs had grown.

The three companies buying CHP are all controlled by the Consunji family so effectively DMCI Holdings is acquiring Cemex’s operations in the Philippines. The group focuses on construction, real state, energy, mining and water distribution. It previously announced in the late 2010s plans to build one integrated cement plant on Semirara and three cement grinding plants at Batangas, Iloilo and Zamboanga but these plans didn’t seem to go anywhere. Later it was linked to the proposed Holcim Philippines sale in 2019, although the subsidiary of Holcim eventually gave up on the idea.

This latest attempt to enter the cement business underlines DMCI Holdings’ intent and the group has immediately started saying what it plans to do next. In a statement chair and president Isidro A Consunji admitted that cement demand in the country was ‘soft’ but that it is expected to rebound due to the Build Better More national infrastructure program and an anticipated fall in internet rates. Consunji added, “We recognise CHP's operational and financial issues, but we are positive that we can turn it around by 2025 because of its ongoing capacity expansion and the clear synergies it brings to our group.” He was also keen to play up that CHP is currently building a new 1.5Mt/yr production line at its Solid Cement plant with commissioning scheduled by September 2024. DMCI plans to reduce CHP’s costs through various synergies including supplying it coal, electricity and fly ash from Semirara Mining & Power.

The acquisition of CHP by DMCI Holdings is the biggest shake-up in the local cement sector in a while. DMCI has long harboured ambitions in heavy building materials and now it’s close to becoming a reality. As evidenced by its statements following the official announcement of the deal it is already thinking ahead publicly to soothe shareholder concerns. What will be interesting to watch here is whether it can actually pull it off and whether it will face trouble from imports. Readers may recall that the Philippines cement sector has long battled overseas imports, particularly from Vietnam. Despite anti-dumping tariffs though the Cement Manufacturers Association of the Philippines (CEMAP) warned in January 2024 that workers could be laid off due to continued competition from imports. Good luck to DMCI.