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Displaying items by tag: Plant
Adani Group speeds up its expansion plans in India
19 June 2024Adani Group’s subsidiary Ambuja Cements signed a deal this week to buy Penna Cement for US$1.25bn. The agreement adds 14Mt/yr of cement production capacity to the group with a focus in the south of India. The acquisition is a big step towards the group’s target of reaching a capacity of 140Mt/yr by 2028. Ajay Kapur, the head of Ambuja Cements, also singled out the advantage the company hopes to gain from taking control of Penna Cement’s terminals saying that they would “prove to be a gamechanger by giving access to the eastern and southern parts of peninsular India.” The move is expected to increase the group’s market share in India by 2%, and by 8% in South India.
Penna Cement operates four integrated plants in Andhra Pradesh and Telangana with a capacity of 7Mt/yr. Two of these units also include waste heat recovery installations and one has a captive power plant. It runs two grinding plants in Andhra Pradesh and Maharashtra with a capacity of 3Mt/yr. Another integrated plant is being built at Jodhpur in Rajasthan and a grinding plant at Krishnapatnam in Andhra Pradesh. Finally, the company owns four bulk cement terminals at Kolkata, Gopalpur, Karaikal and Kochi in India, one at Colombo in Sri Lanka and it also owns a 25,000t cement carrier.
Adani Group’s march towards that target of 140Mt/yr by 2028 started off in mid-2022 when it purchased Ambuja Cements and ACC from Holcim. This gave it a starting capacity of 68Mt/yr in the cement sector. Various smaller additions followed including new plants at Ametha and Dahej and the acquisitions of Asian Cement and Concrete, MyHome Industries and Sanghi Industries. The latter company was the biggest of these purchases. Once the in-progress projects from Penna Cement are built, Adani Group should have a capacity of 93Mt/yr. Another 20Mt/yr is reportedly at various stages of execution. The remaining 27Mt/yr is described as being ‘blueprint ready.’
Generally, the local financial press has been in favour of the transaction agreeing with the geographic advantages of Adani Group increasing its presence in the southern states. The benefits of the high number of railway sidings at Penna Cement’s plants were also commented upon as a means for Ambuja Cements to reduce its costs per tonne of cement. The logistics benefit from the port terminals is also expected by Adani Group’s chief financial officer to reduce the group’s logistics costs with an impact expected within the next year. However, it has been reported that Penna Cement’s operating performance had been weaker in the last financial year due to low sales volumes, poor operational efficiency and high coal costs. A takeover by Adani Group could certainly fix the latter two issues. Yet, it has also been reported that competition in the cement markets in Andhra Pradesh and Telangana is up, due to a mismatch between supply and demand. So, improving Penna Cement’s capacity utilisation in these regions might be harder to solve than simply being absorbed into Adani Group.
India’s two largest cement producers both have plans in motion to mount up production capacity by the end of the decade in what has been dubbed ‘the battle of the billionaires.’ The market leader is UltraTech Cement and it has shown reluctance to cede ground to the cement newcomer Adani Group. The former company’s current target is to make it to just under 190Mt/yr by 2027. It said it had a capacity of 152Mt/yr in May 2024. It is ahead of Adani Group by this measure but there is still plenty of scope for surprises. Given the rivalry between the companies there is a regular stream of speculation about which of the smaller cement producers they might be about to buy at any given time. For example, in October 2023 HeidelbergCement India was rumoured to be courting offers from UltraTech Cement, Adani Group and JSW Cement. Last week, Adani Group was reportedly interested in buying either Saurashtra Cement, the cement business of Jaiprakash Associates, Vadraj Cement or… Penna Cement. Occasionally the rumours are true after all. UltraTech Cement remains in first place for now but the situation may change.
Spain: Heidelberg Materials, the owner of Cementos Rezola, has announced a restructuring plan that will affect 56 employees, roughly half of the workforce at the Añorga plant in Donostia. This decision comes as part of an employment regulation filing (ERE) linked to the cessation of clinker production in a move towards decarbonising cement manufacturing.
The company has proposed 15 early retirements, 30 internal relocations (to other plants within the group) and 11 external relocations. Unions have clarified that of the internal transfers, 15 positions are offered at the Arrigorriaga plant in Bizkaia. Management stated that those not interested in relocation options within the group will be offered external relocation solutions and can avail of measures the company will implement to assist in finding new employment in the labour market.
The company said “The ERE targets positions that are no longer required as a result of the cessation of clinker production, necessary to meet decarbonisation obligations.”
Despite the significant impact of the ERE, the company highlighted that this represents a proportion ‘substantially lower than the decrease in activity volume’ at the Añorga plant. It also confirmed plans to continue cement production in Añorga using clinker produced at the ‘more efficient plant in Arrigorriaga’.
This transition will support a €32m investment from 2024 to 2026 aimed at decarbonising both plants. Half of this investment will be allocated to the Añorga plant to transform it into a facility specialising in ‘sustainable’ cement.
Rohrdorf cement plant installs rooftop solar panels
19 June 2024Germany: Rohrdorfer has started operation of a new photovoltaic (PV) unit at its Rohrdorf cement plant near Rosenheim in Upper Bavaria. The rooftop PV installation comprises 1000 modules, covers around 2000m2 and has a peak output of 400kW. The construction time of the solar panels took five weeks. Modules supplied by Hecker Solar were installed by Elektro Ecker.
The cement plant has produced around one third of its electricity requirements via a waste heat recovery unit since 2011. Rohrdorf Group aims to generate 30% of its electricity from renewable sources as a whole by 2033.
Afghanistan: The Ministry of Mines and Petroleum has awarded three new contracts for the construction of cement plants in Herat, Kandahar and Parwan. Xinhua News Agency has reported the total value of the contracts as US$500m.
The government aims to achieve national self-sufficiency in cement production by rebuilding destroyed cement plants and building new ones. Plans are in motion to grant further contracts for the construction of cement plants in Jawzjan, Logar and Samangan.
Worker dies at UltraTech Cement’s Manawar plant
19 June 2024India: A worker has died after being caught in a belt at Ultratech Cement’s Manawar cement plant in Madhya Pradesh’s Dhar District on the morning of 17 June 2023. Local press reported that 30-year-old Tikam Singh succumbed to his injuries after becoming trapped in the equipment. The police have launched an investigation into the incident.
Germany: Calix's subsidiary Leilac and Heidelberg Materials have formed a joint venture to build the Leilac-2 low emission cement demonstration plant at Heidelberg's Ennigerloh facility. Construction is set to begin in 2025, with the plant's commissioning scheduled for mid-2026. The Leilac-2 plant will showcase a module capable of capturing up to 100,000t/yr of CO₂ emissions from cement and lime production. Following construction and commissioning, Leilac-2 will be operated for up to three years to test the performance of the technology.
The project benefits from €16m in funding from the EU's Horizons 2020 programme and contributions from partner cement companies. Following construction, Heidelberg Materials may repay Leilac's capital contribution, and the partners will consider a full-scale commercial installation of Leilac technology at a Heidelberg plant. Plans for Leilac-3 envisage a significantly increased capture capacity, potentially capturing 0.5–1Mt/yr of CO₂.
Leilac CEO Daniel Rennie said "The formation of a joint venture with Heidelberg Materials for the Leilac-2 plant marks another important milestone for commercialisation of the Leilac technology. We look forward to continuing to collaborate with Heidelberg Materials to demonstrate and deploy cost-effective solutions to decarbonise cement production at commercial scale.”
Lafarge Canada and Hyperion Global Energy launch Tandem Carbon Recycling System at Bath cement plant
12 June 2024Canada: Hyperion Global Energy has fired up its pilot Tandem Carbon Recycling System at Lafarge Canada’s Bath cement plant in Ontario. The system mineralises captured CO2 to produce mineral components for alternative building materials. It has a capture capacity of 1000t/yr. The partners will test the Tandem Carbon Recycling System in producing Lafarge Canada’s 30 – 90% reduced CO2 ECOPact concrete.
Lafarge Canada’s Eastern Canada regional president and CEO of David Redfern said "Our collaboration with Hyperion marks an exciting milestone in our decarbonisation journey and the advancement of our circular construction technologies. We look forward to advancing our net zero strategy by leveraging carbon utilisation technology like Hyperion's, enabling us to further reduce CO₂ emissions from our operations while at the same time producing innovative and sustainable building solutions."
Hyperion CEO Heather Ward said "Working together with an innovative partner like Lafarge on this exciting pilot project allows us to apply our proprietary carbon recycling technology to large-scale industries, and make an immediate, measurable reduction on carbon emissions. At the same time, we are advancing our vision to offer a scalable and affordable decarbonisation solution for industry, and a market-driven profit incentive on the cost of carbon removal."
Spain: Heidelberg Materials plans to stop clinker production at its Añorga plant near San Sebastián and run the site as a cement grinding plant instead. It says it intends to use the change to focus on low-carbon cement products in Spain and the South-West of France. The clinker required to supply the markets in Northern Spain and the South-West of France will be produced at Heidelberg Materials Spain’s Bilbao plant instead. The closure of the clinker production line at Añorga will start once staff negotiations at the plant are completed. The company said that, “socially acceptable solutions for all affected employees are being sought.”
Sacopor inaugurates new bag production line
12 June 2024Portugal: Sacopor has inaugurated a new bag production line at its paper bag plant near Lisbon. The new line will increase capacity to 160 million bags per year from 130 million at present. It had an investment of €11.5m. The subsidiary of Cimpor sells bags to the cement mortar industries.
Resident Cement and Sinoma Nigeria Company to invest US$500m in upcoming 10Mt/yr Bauchi cement plant
11 June 2024Nigeria: The government of Bauchi State has signed a deal with Resident Cement and Sinoma Nigeria Company for the construction of their upcoming 10Mt/yr cement plant in the state. The deal stipulates total investments by the companies of US$500m to build the plant, situated in Gwana District.
Governor Bala Abdulkadir Mohammed said "We are reassured in our commitment to maximise the available resources to exploit the natural resources Bauchi State possesses for the economic development of the state.”