Displaying items by tag: GCW203
Encouraging news from Egypt with the announcement that Lafarge Ecocem has taken on two refuse-derived fuels (RDF) contracts in Suez and Qalyubeya. The RDF plants will have production capacities of 42,000t/yr and 280,000t/yr respectively, after upgrades are built.
The move follows a deal Lafarge struck with Orascom in March 2015 to develop a waste management framework of municipal and agricultural waste. The plan is to achieve an average fuel substitution rate of 25% by the end of 2015. Around the same time Ecocem also signed a cooperation agreement with the German Development Cooperation (GIZ) and the Qalyubeya Governorate to upgrade a recycling plant in Qalyubeya to produce RDF. Part of the deal was intended to reinvest some of the revenue from RDF sales back into the region's waste collection infrastructure.
These production levels compare to SITA UK's new RDF plants in the UK, which has a more mature RDF market. There, the newly opened Malpass Farm plant is planned to produce 200,000t/yr and the Tilbury plant will have an output capacity of 500,000t/yr when it opens. However, the Malpass Farm plant mainly feeds one cement plant, the 1.3Mt/yr Cemex Rugby plant with a mean substitution rate of 61% in 2013. By contrast, Lafarge Cement Egypt runs the massive 10.6Mt/yr El Sokhna plant.
Co-processing at El Sokhna by Lafarge is of particular interest given the links with Egypt's unofficial household waste collectors, the Zabbaleen. Lafarge Egypt recruited and trained 140 Zabbaleen to gather waste material for RDF production. The strategy enabled Lafarge to gather continuous supplies of RDF and strengthen local stakeholder relations, as Lafarge's 2013 sustainability report puts it. Lafarge Egypt's substitution rate was 2.2% in 2012 with significant improvements made since then. The current target of 25% for the end of 2015 shows how much progress Lafarge has made.
Hisham Sherif of the Egyptian Company for Solid Waste Recycling (Ecaru) placed Egypt's municipal solid waste level at 20Mt/yr at a presentation given at the Global CemFuels Conference earlier in 2015. From this 4Mt/yr of RDF could be produced. Together with biomass derived fuel (BDF) Sherif reckoned that the country's cement plants could reach substitution rates of 30 – 40%. Problems though with increasing RDF rates in Egypt include legal complexities, institutional issues, poor services and monitoring and centralised planning with little regard for the country's unofficial waste pickers, such as the Zabaleen.
Lafarge Ecocem appears to be tackling each of these problems in turn as the deals with Orascom and the Qalyubeya Governorate show. However, spare a thought for Egypt's unofficial waste sector workers who are likely to lose their livelihoods as waste management becomes more formalised and personnel rates per tonne of waste collected tumble.
For more information on the Zabaleen, check out the documentary made about them in 2009, called 'Garbage Dreams'.
Portugal: João Castello Branco will replace Pedro Queiroz Pereira as the CEO of Semapa. In a company statement, Pedro Queiroz Pereira announced that he would propose João Castello Branco to the board of directors in July 2015 for the post as well as for appointment to the post of chairman of the executive committee. Pedro Queiroz Pereira intends to remain as chairman of the board of directors. João Castello Branco works currently as a senior director at McKinsey Iberia.
Thailand: Siam Cement Group (SCG) has confirmed that it is preparing to appoint Roongrote Rangsiyopash as its next president. The SCG board has agreed to maintain Roongrote's position as executive vice-president and end his top position at SCG Paper as well as announce the promotion of two other SCG executives to replace Roongrote, according to the Bangkok Post. Roongrote will end his tenure as president of SCG Paper on 1 July 2015.
"It is a process that we've been planning for several years, and it's clear the company wants Roongrote to replace me, as he is one of the company's more competent resources," said Kan Trakulhoon, SCG's current chief executive and president, who will retire at the end of 2015. "Roongrote is expected to oversee all SCG businesses from now on."
Roongrote joined SCG after graduating from university in 1985. He ran several of the company's businesses before being officially promoted to the latest position of SCG Paper president. He was also a director of Thai-German Industry and PTT Chemical.
Devnya Cement opens Euro166m cement line
03 June 2015Bulgaria: Devnya Cement, part of Italcementi Group, has formally launched a Euro166m clinker and cement line at its plant near Varna on the Black Sea. The investment project, which was launched in 2012, included an overhaul of the existing conveyer belt for raw materials to the plant and the construction of new infrastructure, logistic and office facilities.
House of Representatives try to avert clash between Edo and Kogi over limestone deposit
03 June 2015Nigeria: On 2 June 2015 the House of Representatives intervened in a dispute between Ohinoyi of Ebiraland, Alhaji Ado Ibrahim and Company (AICO) in Kogi State and Okpella in Edo State over the ownership of a limestone deposit. The motion on the issue, which came as a matter of Urgent National Importance, moved by Edo lawmaker Abubakar Momoh, was unanimously adopted by the House.
"This peaceful co-existence is being threatened by the purported sale of OBU Limestone in Okpella, owned by Okpella Cement, to Dangote Company by Alhaji Ado Ibrahim. This is with a view to frustrating BUA Cement Company, which acquired Okpella Cement as a private investor," said Momoh.
According to Momoh, BUA has also built a cement plant in Okpella, which is due for inauguration in June 2015. "The House recalls that when in 1994, this same ownership of OBU Limestone deposit arose, the Okpella community went to court on the issue. The suit was filed against AICO, which prompted AICO to file application in 1997 to the Okpella community for local consent. The consent was turned down on account of having already granted the same to Edo Cement, which owned the mining license of the deposit," said Momoh.
According to Momoh, if nothing was done immediately to settle the matter, it might lead to a clash between the parties. He urged the security agencies to make adequate security arrangements in the location. "The governments of Edo and Kogi should intervene and settle the matter amicably, before it degenerates into serious inter-communal clash between the two states. The National Boundary Commission is urged to intervene with a view to permanently establishing the boundary between Edo and Kogi."
The acting speaker, Emeka Ihedioha, who presided over the plenary session, advised the two communities to maintain peace and assured them that the house would do its best to resolve the issue.
Zimbabwe: Over 600 families in Masvingo are set to be displaced to make room for a new cement plant. The displacement follows the discovery of rich limestone deposits in the area and about 16 villages will be affected. Initially, 200 villagers are expected to be employed at the plant.
Masvingo Rural District Council CEO Martin Mubviro said that they had signed a Memorandum of Understanding with a company that wanted to invest in the venture, Xhing Xhong Cement Company. "I can confirm that we've agreed with an investor who wants to establish a cement plant. We have signed a Memorandum of Understanding with the investor and it is now left to them to start the project. Close to 600 families may be affected, although the exact number of those to be moved will be ascertained after feasibility studies are complete. The land where they should be resettled is yet to be identified," said Mubviro.
He said that major infrastructural improvements around Masvingo would be made once operations begin. "While some villagers will feel aggrieved to be moved from their original homes, there is a bigger picture of employment as many unemployed youths are going to get jobs," said Mubviro. "The plant will also add value to the province's economy through infrastructural development. People in this province will also get their cement for building nearer, so too will businesspeople who deal in building materials. Thus it will have an effect on prices of cement."
Namibia: Namibia's sole cement manufacturer, Ohorongo Cement, has said that 2015 has thus far seen tremendous results compared to all of its previous years. It started production in 2011.
Managing director Hans-Wilhelm Schutte attributed the much-improved performance to an increase in infrastructure projects by both the government and the private sector, as well as export inroads made in neighbouring countries. Schutte admitted that initial sales were 'extremely tough,' but was quick to add that the plant, which cost US$203m, has been running perfectly since comissioning and expects both local and regional sales to grow.
"Since 2011 we have improved significantly. Towards the second half of 2013 things really started picking up and 2014 saw us doing really well in terms of sales," said Schutte. He noted that large infrastructure projects such as NamPort's port expansion and the Neckartal dam have made notable contributions to Ohorongo's performance.
Dangote Cement begins trial production in Ethiopia
02 June 2015Ethiopia: Dangote Cement, which entered the cement sector in Ethiopia with an investment of US$600m, began trial cement production at its new 2.5Mt/yr capacity plant in May 2015. The plant, which received its licence from the Ethiopia Investment Commission on 8 September 2008, is located at Muger in Adebern Wereda, Oromia. Dangote has started work with 1000 employees.
Dangote Cement has imported 1.2m packaging bags from Egypt, with more to be imported soon. Twenty-three heavy trucks imported for transport have also arrived at the port in Djibouti, with a duty free privilege provided by the government to the company, said Mesfin Abera, Dangote's sales and marketing manager in Ethiopia. The company will import a total of 600 trucks.
According to data obtained from the Ministry of Industry's Cement & Related Industry Development Institute, cement demand in Ethiopia is expected to reach 10.6Mt/yr in 2017.
Colombia: Jose Mario Velazquez, president of Cementos Argos, has confirmed the firm's intention to start operations in markets in Chile and Peru. Grupo Argos is already present in the US, Haiti, Honduras, Panama and Puerto Rico.
Afrisam investor Pembani Group merges with Shanduka
02 June 2015South Africa: Private equity company Pembani Group, investor in Afrisam and Shanduka, a South African investment group, have passed regulatory filings to the Mineral Resources Department and the competition authorities to combine their interests. Pembani acquired the interests of Shanduka following the departure of deputy president Cyril Ramaphosa, who sold his Shanduka stake after rejoining the government in 2014. The deal will also transform Standard Bank's and Ramaphosa's family trust Jadeite's Shanduka stakes into minority ownership in Pembani.
On 1 June 2015 Pembani, which has a US$730m portfolio after the merger, said that the cement industry has a duty to respond to disruptions caused by the entrance of new players, cheap imports and expanded capacity. "Businesses have a duty to respond to changes," said Pembani CEO Kennedy Bungane. He said that the group would pursue opportunities in the rest of sub-Saharan Africa.
The first substantial move by Pembani is likely to be in the cement industry. Although only a 30.5% investor in Afrisam, Pembani controls it through an agreement with the PIC, which is a 66% shareholder. The PIC is also PPC's single largest investor with a 12% stake. Pembani chairman Phuthuma Nhleko is also Afrisam's chairman. Afrisam wrote to PPC, South Africa's largest cement maker, in December 2014, offering a combination of the entities. After considering the proposal, but without presenting it to a shareholder vote, the PPC board rejected the overture in March 2015, saying that it did not believe there would be enough synergies to justify a merger.
Bungane said that the cement industry had undergone permanent changes. "The cement industry in South Africa has changed radically and permanently," he said. "I do not rule out a response by the market to these disruptions." Though Bungane would not elaborate on Pembani's plans for Afrisam, he said it was important for businesses to respond to changing conditions.
Pembani also owns 63% of Tanzania's Tanga Cement, which Bungane said would be used to enter the rest of east Africa, where a shortage of cement capacity makes for good profit margins.