Displaying items by tag: Government

Niger: The government has approved a project by Kao Cement to spend US$287m on a plant in the Tahoua region. The scheme is expected to create over 300 jobs, according to Agence Ecofin. Kao Cement is based in Niamey. A previous government scheme in 2017 looked for investors to build a 0.95Mt/yr cement plant in Kao.

Japan: A proposal by Mitsubishi Group on researching CO₂ injection into concrete has been approved for a grant from the New Energy and Industrial Technology Development Organisation (NEDO). This joint project between Mitsubishi Group, Kajima Corporation, and Chugoku Electric Power aims to improve the existing technology so that it can be applied to the reinforced and cast-in-place concretes used in building construction. At present the group said that current carbon-recycling techniques are mainly used for unreinforced concretes, such as concrete blocks.

Mitsubishi Group has already been involved in the development of concrete projects that take advantage of carbon-recycling, including a zero-emission concrete called CO₂-SUICOM. It added that carbon capture, utilisation and storage (CCUS) technologies, including carbon-recycling, are an excellent opportunity for the company to use its strengths between industries that both emit and use CO₂.

Germany: The Westküste100 green hydrogen project has received funding approval from the Federal Ministry of Economic Affairs. The plan is backed by an investment of Euro89m, with Euro30m of this total approved for the project’s launch in August 2020. The initiative intends to produce green hydrogen, transport it in the gas network, use it in industrial processes and to interlink different material cycles within the existing infrastructure. The consortium brings together ten partners: EDF Deutschland, Holcim Deutschland, OGE, Ørsted Deutschland, Raffinerie Heide, Heide’s municipal utility, Thüga and ThyssenKrupp Industrial Solutions, along with the Region Heide development agency and the Westküste University of Applied Sciences.

“An electrolysis plant with a capacity of 700MW - this is our vision and the next milestone in implementing the development targets laid down in the national hydrogen strategy by 2030,” said Jürgen Wollschläger, managing director of Raffinerie Heide and coordinator of the Westküste100 project.

The funding approval enables work to begin on the first phase of the project, which is set to run for five years. A newly formed joint venture, H2 Westküste, comprising EDF Deutschland, Ørsted and Raffinerie Heide, is to build a 30MW electrolyser which will produce green hydrogen from offshore wind energy and provide information on the operation, maintenance, control and grid compatibility of the equipment.

In a later stage of the project hydrogen from both electrolysis and CO₂ from a cement plant in Schleswig-Holstein will be used in the process. During the initial phase of the Westküste100 project preparations will be made for converting the Lägerdorf cement plant to an oxyfuel combustion process.

Thorsten Hahn, chief executive officer (CEO) and chairman of Holcim (Deutschland) said, “For us, as a manufacturer of building materials, the funding approval is a key milestone on the way to decarbonising cement production. Now all of us involved in Westküste100 must move forward quickly, decisively and dynamically in order to achieve our ultimate goal of cross-sectoral coupling on a large industrial scale in the coming years.”

India: Data from the Commerce and Industry Ministry shows that cement production fell by 85% year-on-year to 26.3Mt in the first six months of 2020 from 178Mt in the same period in 2019. Cement production in June 2020 fell by 7% year-on-year in June 2020 to 26.3Mt from 28.0Mt. India implemented a coronavirus-related lockdown that shut down industrial plants from late-March 2020 to early May 2020.

China: Data from the Ministry of Industry and Information Technology shows that cement output fell by 4.8% year-on-year to 1Bnt in the first half of 2020. Output from the building materials sector as a whole decreased by 2.2%, according to the Xinhua News Agency. Overall, the sector’s sales revenue and profits decreased by 4.8% to US$344bn and 8.2% to US$26.8bn respectively.

Canada: Residents at Port-Daniel-Gascons in Quebec reported dust emissions from the McInnis Cement plant in June and July 2020. This has been blamed on mechanical breakdowns and a computer failure, according to the Journal de Québec newspaper. The cement producer says it has reported the situation to the local authorities. Commercial production at the plant started in mid-2017. The incidents reportedly took place as the plant reached its maximum production capacity.

Paraguay: Distributors of cement supplied by Industria Nacional del Cemento (INC) are reportedly waiting up to a month for their orders to be delivered, even if they pay in advance. The state-run cement company’s two plants are delivering around 40,000 bags/day despite a production capacity of up to 100,000 bags/day, according the ABC Color newspaper. INC inaugurated a new mill at its Villeta cement grinding plant in 2018 and has invested US$80m in its last set of upgrade projects.

Consolidation of the Chinese cement industry looks set to take a major step forward this week. China National Building Material Company (CNBM) announced that it is restructuring its cement production assets and companies under one subsidiary, Tianshan Cement. The move is significant since CNBM is the world’s largest cement producer, with a production capacity of over 500Mt/yr. That’s more than the total output of any single country except China. It’s also between a quarter and a third of national capacity domestically.

Little information has been revealed except that it concerns most of CNBM’s cement producing subsidiaries. Namely: China United Cement, South Cement, North Cement, Southwest Cement and Sinoma Cement. Note that this leaves out Ningxia Building Materials and Qilianshan Holdings, although some commentators have suggested that they may be merged in later on. It was announced to stock markets as a proposal with a ‘letter of intent of cooperation’ exchanged between CNBM and Tianshan Cement. CNBM will remain the controlling shareholder of Tianshan Cement after the restructuring. However, the assets concerned - the cement companies are still being discussed and considered. The aim of the reorganisation is to ‘facilitate resolving industry competition’ among the subsidiaries of CNBM.

The move is expected to significantly increase operational efficiency at the cement companies as they start to act in a more coordinated manner. It also fits the government-requested drive for the industry as a whole to consolidate and follow supply-side reform initiatives by, hopefully, eliminating old production assets and other measures. Indeed as CNBM’s president Peng Shou said in the company’s report for 2019, “Production overcapacity of the industry has not been fundamentally resolved. The task of cutting production overcapacity was arduous, and the supply-side structural reform remains the major task.” The company says it is committed to building a three-pillar development platform of cement, new materials and engineering services.

How much more operational efficiency the world’s largest cement producer will need to do this is a key question. In 2019 the sales revenue from its cement business rose by 12% year-on-year to US$18.7bn and its earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 19% to US$5bn. Growth at this level is novel to western-based multinational cement producers! So the implication might be that CNBM is hoping to turbo-charge its financial performance before (or if) the serious government-forced supply side cuts occur or a general economic slowdown happens so that it can return to ‘normal’ Chinese performance afterwards.

The Chinese Cement Association presented a good overview of the history of CNBM that you can read here. The quick version is that it’s the embodiment of the Chinese government’s desire to build and merge its cement industry since 2005. The latest restructuring with Tianshan Cement is the latest chapter in this 15 year story. What the reorganisation means internationally is ‘probably not much’ in the short term. Better coordination between CNBM’s cement companies could have implications in the longer term if they acted together on an international strategy, such as a strategy on exports for example, or if group-wide suppliers were agreed upon.

That’s all on China but finally if readers were not able to join us for Global Cement Live last week on 23 July 2020, we recommend watching the playback of Arif Bashir, Director (Technical/Operations) of DG Khan Cement Nishat Group Pakistan. He gave a great overview of Pakistan’s cement industry and the challenges it is facing and overcoming. Be sure to tune in for this week’s guest speaker, Regina Krammer from Loesche who will be discussing how the coronavirus crisis will change communications in the sector.

To register for Global Cement Live visit: www.globalcement.com/live

India: Aditya Birla subsidiary UltraTech Cement has recorded a net profit of US$122m in the three months to 30 June 2020, the first quarter of the 2021 fiscal year – down by 28% year-on-year from US$169m in the corresponding period of the 2020 fiscal year. Sales were US$975m, down by 33% from US$1.45bn.

The company said, “UltraTech has emerged stronger and well-prepared in the wake of the on-going Covid-19 pandemic. The total lockdown period from late-March 2020 to 1 May 2020 has been a huge challenge for all manufacturing industries. UltraTech has managed the crisis with a sharp focus on operational efficiencies. In the available 68 operating days during the quarter, the company kept a tight control on costs and cash flow and achieved an effective capacity utilisation of 60% across its network of 54 plants around the country.”

UltraTech said that it had already noted “better-than-expected pick-up in cement consumption in rural markets,” which it attributed to “measured steps towards economic recovery” by national and state governments.

Thailand: Siam Cement Group’s (SCG) sales revenue from its cement business fell by 6% year-on-year to US$2.82bn in the first half of 2020. However, its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 5% to US$405m. The cement division of the group said that sales were hit by coronavirus-related lockdown measures. However, earnings benefitted from efficiency improvements and lower energy prices. Overall both sales revenue and earnings fell for the group across all business division in the reporting period.