Displaying items by tag: Plant

Egypt: Arab Swiss Engineering Company (ASEC) has launched legal action against Misr Beni Suef Cement. The latter terminated the supplier’s technical management contract in mid-February 2021. Arab Finance has reported that the producer alleges that ASEC breached its commitments regarding its Beni Suef cement plant’s production capacity.

News has been dripping out slowly over the last few months about which assets HeidelbergCement is planning to divest. This week reporting from Bloomberg suggested that the German-based building materials producer might be seriously considering selling one or more integrated plants in Spain. The idea is reportedly part of a wider review of its portfolio in the country with the possible inclusion of cement plants at San Sebastian and Bilbao at a future date also. A proposed price of Euro300m for the national business was put forward by the sources to the reporters but it is unclear how many cement plants that figure includes.

HeidelbergCement announced in July 2020 that it had reduced the value of its total assets by Euro3.4bn following a review. It blamed this on reduced demand for building materials due to the coronavirus pandemic and the devaluation of its Hanson subsidiary in the UK, in part related to the UK’s exit from the European Union. A divestment plan followed at its Capital Markets Day event in September 2020 when it said it was simplifying its country portfolio and prioritising the strongest market positions. To this end it said it was setting up a watch list of underperforming assets to keep an eye on.

Over the next few months a number of corporate reorganisations and actual confirmed divestments occurred as well as plenty of speculation. HeidelbergCement-controlled Suez Cement started to acquire a 100% stake in its own subsidiary, Tourah Portland Cement, in September 2020. Suez Cement then sold its majority stake in Kuwait-based Hilal Cement in late January 2021. This week HeidelbergCement Bangladesh informed the local stock exchange that it is planning to amalgamate its subsidiary Emirates Cement.

Signs that European reviews had taken place could be seen later in the autumn of 2020. In November 2020 the Italian press picked up on rumours that HeidelbergCement was planning to move subsidiary Italcementi’s research centre from Bergamo, Lombardy, to Heidelberg in Baden Württemberg. Whether this was ever a serious proposition or not, this appeared to have been avoided in early February 2021 when an Italian union said it had agreed with Italcementi to keep the research centre in Italy as well as a preserving jobs generally. Meanwhile, also in November 2020, France-based subsidiary Ciments Calcia announced a major upgrade at its integrated Airvault cement plant but along with the conversion of two other integrated plants into a grinding unit and a terminal respectively, and changes at the French headquarters at Guervill.

Just before Christmas the bigger speculations started to appear in the press, with a story suggesting that HeidelbergCement was considering selling assets in California, US, with a target price of US$1.5bn for three integrated plants and associated concrete and aggregate units. That story is particularly beguiling given Cemex’s decision this month to reopen a kiln in Mexico to supply cement to the southwest US to meet shortages (See GCW 493)! Incidentally, readers should also note the story this week about a shortage of natural gas exports from Texas, US, that has caused cement plants in northern Mexico to shut down. This week, as mentioned at the start, has seen Spain added to the list of places that HeidelbergCement might be considering selling up in. The Spanish market like Italy has been rationalising heavily over the last decade particularly as export markets have dwindled. Oficemen, the Spanish cement association, reported that domestic cement consumption fell by 10% year-on-year to 13.3Mt in 2020 from 14.7Mt in 2019. On top of this Oficemen has repeatedly warned of the threat that CO₂ emissions prices pose for its members’ exports.

Group chairman Dominik von Achten told Reuters this month that the company plans to sell the first of the five assets in early-to-mid 2021. Of course he wouldn’t say where, except for adding that the company would stay in ‘rock solid’ markets like Northern Europe. Indonesia has been seen as a candidate for disposal by analysts, likely due to local production overcapacity levels and LafargeHolcim’s own departure in Indonesia 2018. All Von Achten would say on the matter was that Indonesia was an ‘important’ market for the group. Whether it’s seen as important for reducing company debt or building value remains to be seen. HeidelbergCement hasn’t exactly been shy about saying what they are doing over the last half year or so but they are only going so far and they won’t comment on speculation. So in the meantime we must wait to find out more.

Sweden: HeidelbergCement subsidiary Cementa has appointed Matilda Hoffstedt as the manager of its integrated Slite plant. She will succeed the current plant manager, Fred Grönwall, in June 2021. Grönwall has been in post since 2018 and will leave the company.

Hoffstedt holds a master's degree in science from Uppsala University and started working for HeidelbergCement in 1998. She worked as a supervisor and project manager at Slite until 2010. Later she ran operations at the Skövde plant for 10 years until 2020 and is currently working as Manager Technical Support for HeidelbergCement Northern Europe.

Chile: Melón has signed an electricity supply contract with Enel Generación. The contract covers the supply for its La Calera, Puerto Montt and Ventanas cement plants, and its San Bernardo aggregates quarry, until 2043, according to the La Tercera newspaper. All energy supplied under the contract will come from renewable sources. There is also the possibility of expanding the scope of the contract.

General Manager Iván Marinado said, “Our commitment to the sustainability of our operations is permanent. We have state-of-the-art technologies, we work together with our carriers in programmes to reduce logistical impact and energy efficiency, and we have a solid co-processing strategy for the use of alternative fuels (AF) and raw materials. Today we are happy to take a new step and start the use of renewable energies, as a concrete and effective example of our concern to contribute to the environmental improvement of the localities where we operate.”

Pakistan: Medics took three protestors from the site of a hunger strike outside a cement plant in Hattar, Khyber Pakhtunkhwa, to hospital in Haripur. The News International newspaper has reported that nine fired workers won a case before the National Industrial Relations Commission (NIRC) to be reinstated to their jobs at the plant. When not given back their jobs, they began the hunger strike on 17 February 2021.

The cement company said that it is appealing the NIRC’s decision.

Bestway Cement, Dewan Hattar Cement and Mustehkam Cement all operate cement plants in Hattar.

Mexico: Cemex plans to start using hydrogen as part of its fuel mix at its cement plants around the world in 2021. The estimated cost of the roll-out is US$40m. The company says it completed the deployment of its hydrogen technology across all of its cement plants in Europe in 2020 following trials at the Alicante Cement Plant in Spain in mid- 2019.

Global operations, technical and energy vice-president Roberto Ponguta said, “The fast adoption of this new hydrogen-based technology is a clear example of Cemex's innovation efforts and its strong commitment to decarbonise the cement production process.” He added, "We continue to identify and deploy existing technologies which have a high potential to contribute to our sustainability goals, and hydrogen is a key lever.”

Mexico: Nearly 500 cement and concrete plants in the northern Mexican states of Chihuahua, Coahuila, Nuevo León and Sonora have partly or fully suspended production due to an on-going regional shortage of natural gas. The El Financiero newspaper reports that plants run by Grupo Cementos Chihuahua (GCC), Cemex, Holcim and Cruz Azul operate in this region.

GCC said that a lack of electricity and natural gas had affected production at three of its plants in Chihuahua, Samalayuca and Juárez. Mexican Association of the Ready-mix Concrete Industry (AMIC) president Ana Laura Burciaga said that the situation has caused a 50% drop in the cement supply to concrete plants.

The cause of the shortage is reported to be the suspension of natural gas exports from Texas, US. Mexican steel and automotive manufacturers have also been affected.

Austria: Lafarge Zement has ordered a new conveying system for raw materials and alternative fuel (AF) for its Mannersdorf cement plant from Germany-based Beumer Group. The system consists of two pipe conveyors. The first will be 192m long with a capacity of 22t/hr. While the second will be 87m long and have a conveying capacity of 10t/hr. The lifting heights will be approximately 39m and the maximum angle of inclination will be 15 degrees. The order also includes three buffer bins and a weigh feeder.

The system replaces the cement plant’s pre-existing conveyors, which were seriously damaged in a fire in June 2020. Beumer will be responsible for delivery, installation, engineering and commissioning of the new conveyors. Commissioning is scheduled for mid-April 2021.

Spain: Germany-based HeidelbergCement is reviewing its Spanish assets, which includes three integrated cement plants and related businesses. It is considered ‘likely’ it will sell its plant in Malaga and it might sell its other plants at San Sebastian and Bilbao also, according to Bloomberg. The company’s assets in the country have been valued at around Euro300m by one source quoted by Bloomberg. Group chairman Dominik von Achten told Reuters earlier in February 2021 that the company completed a review of its business and identified five assets to sell.

Europe: Cemex commissioned seven new bolt-on investments across Europe in January 2021. The company says that all of the investments are aligned to its key priorities of climate action, sustainable construction and earnings before interest, taxes, depreciation, and amortisation (EBITDA) growth. They include advances in fossil fuel reduction, lower CO₂ footprint products, circular economy investments and products that demonstrate life cycle CO₂ and energy consumption advantages for buildings. It made various changes at its cement plants, for example the installation of a new alternative fuel (AF) system in the Czech Republic. In France and the UK, it made circular economy and recycling improvements, and shifted to lower-CO₂ cement production in Croatia and lightweight concrete production in Spain. Additionally, it made efficiency upgrades to sites in Spain and the UK.

Europe, Middle East and Africa regional president Sergio Menendez said, “We have made a strong start to our 2021 ambitions to both grow our business and improve our climate impact. In 2020, we achieved our ambition of a 35% reduction in our CO₂ emissions compared to our 1990 baseline in Europe. We are also the first company in our sector to align our Europe operations to the EU aspiration to reduce CO₂ emissions by at least 55% by 2030. These investments represent further advances towards this 2030 target, as well as to deliver net zero CO₂ concrete globally by 2050.”