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FLSmidth details clinker line order from Bursa Çimento

10 December 2020

Turkey: Denmark-based FLSmidth has released details about a new clinker production line it is currently supplying to Bursa Çimento. Work at the site is underway at present covering the line from crushing to clinker cooling. The new line is scheduled to start at the end of 2022. FLSmidth says the equipment it is supplying includes a Hotdisc Combustion Device, which will help increase the substitution rate to 86%, the highest in Turkey. The order also includes an OK Raw Mill, a Rotax-2 kiln, Pfister feeders and new air pollution process filters.

"The modernisation of our Bursa site is a strategic investment, providing us with a more competitive cost base,” said Osman Nemli, General Manager at Bursa Çimento. “But just as important is the entire upgrade which focuses on reducing emissions and power consumption. In this way, we are proactively mitigating future possible environmental regulation."

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Lanwa Sanstha Cement’s Hambantota cement plant on course for June 2021 commissioning

10 December 2020

Sri Lanka: Lanwa Sanstha Cement says that its upcoming 2.4Mt/yr Hambantota cement plant is on schedule for commissioning in June 2021. The total investment in this first phase of the project is US$70m. The Daily News newspaper has reported that the second phase of the project will consist of an expansion of the plant’s production capacity to 3.6Mt/yr at an additional cost of US$10m. Germany-based Gebr. Pfeiffer and Siemens have supplied the plant’s production equipment, while Denmark-based FLSmidth is supplying its packaging equipment.

Chair Nandana Lokuwithana said, “This facility will serve to benefit the construction industry tremendously by delivering products of premium quality to the market. The plant is the first of its kind in Sri Lanka to use cutting-edge European technology to yield optimum outcomes while being environmentally conscious through continuous monitoring.”

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Krasnoyarsk Cement completes environmental upgrade

10 December 2020

Russia: Sibirskiy Cement subsidiary Krasnoyarsk Cement says that it has installed a new electrostatic precipitator on Kiln 5 at its Krasnoyarsk cement plant as part of an environmental upgrade project. It spent US$3m on the equipment from Switzerland. It says that it has made ‘a significant contribution’ to the company’s goals under the Clean Air national project. The company has also installed an automatic emission control system at the plant.

The cement producer now plans to upgrade the plant’s primary limestone crushing equipment for US$203,000 and install a new automated measuring system for US$379,000. It has estimated that its full-year cement output in 2020 will increase by 2% year-on-year to 621,000t from 609,000t in 2019.

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Flender opens new production and testing facility in Western Australia

10 December 2020

Australia: Germany-based Flender has announced the opening of a new production and testing centre in the Perth suburb of Bayswater, Western Australia. The supplier says that the 3500m2 facility is equipped with a 1.5MW load test bench capable of testing complete drive systems up to a voltage of 6.6kV.

Chief executive officer (CEO) and general manager Kareem Emara said, “Our recent growth in Western Australia has been great and a testament to the
quality of our products, service and technical know-how. As we continue to grow, we want to reinvest in this key market and be where our customers are to offer them the combined brains trust of over 50 facilities worldwide through this new state-of-the-art centre.”

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India starts to build cement capacity again

09 December 2020

Manoj Kumar Rustagi was on hand yesterday to discuss JSW Cement’s operations in the UAE at the Virtual Middle Eastern Cement Conference. At the event, jointly organised by Global Cement Magazine and the Arab Union for Cement and Building Materials (AUCBM), Rustagi mainly stuck to the development of the producer’s new integrated plant in the Fujairah Free Zone but he also gave an overview of JSW Cement’s presence in India. For example, as part of an industrial conglomerate, JSW Group, the cement producer benefits from links to steel production by JSW Steel that enables it to use blast furnace slag. Notably, JSW Cement’s Shiva Cement subsidiary announced plans at the end of November 2020 to spend around US$200m on a new 1.4Mt/yr integrated cement plant in Sundergarh district, Odisha with the clinker production line supplied by ThyssenKrupp Industries India.

JSW Cement is not alone in ordering new production capacity. This week, UltraTech Cement approved a planned increase of 12.87Mt/yr for around US$740m. This is in addition to new capacity projects of 6.7Mt/yr that are currently underway. All of these new projects are scheduled to be commissioned in a phased manner by the end of the 2023 Indian financial year (by March 2023). It is unclear at present how exactly these projects are distributed but they are centred in the Northern, Central and Western Zones of the country, and the new tranche includes the previously announced Pali plant in Rajasthan. At this price the inference is that the much of the new capacity will be in the form of grinding plants and/or upgrades to existing clinker lines. Around the same time as this, LafargeHolcim said it wants to spend US$112m on waste heat recovery (WHR) plants for six of its cement plants in India by the end of 2022.

Graph 1: Change in Indian cement production year-on-year (%). Source: Office of the Economic Adviser.

Graph 1: Change in Indian cement production year-on-year (%). Source: Office of the Economic Adviser.

These three projects by major producers suggest that the Indian cement sector is recovering from the effects of the coronavirus lockdown in late March 2020. Graph 1 above shows the sector finally recovering in October 2020, with growth of 3% year-on-year to 26.9Mt. Kumar Mangalam Birla, the chairman of Aditya Birla Group, credited the economic situation with the Indian government’s Atmanirbhar Bharat stimulus program for his decision to commit to UltraTech Cement’s spending spree. This outlook gels with that of Fitch Ratings. The credit ratings agency has forecast in a recent report that ‘strong’ margins during the first half of the 2021 financial year (April – September 2020) are going to limit the financial risks to the larger Indian cement companies despite the lower cement sales volumes due to coronavirus. Pent-up demand helped the industry recover after the lockdown and this was further aided by lower energy/fuel costs and general cost cutting.

Needless to say all of the above is good news for the Indian cement industry after the year it has had. One thought to consider from all of this is who might UltraTech Cement order its mills and clinker lines from? Atmanirbhar, the name of the Indian stimulus plan, has been described as ‘self-reliance’ or ‘self-sufficiency’ in the local press. Unfortunately, relations have been poor between India and China in 2020 due to armed skirmishes along the Line of Actual Control on the border, amongst other issues. Ordering a new clinker production line from, say China-based Sinoma, may not look especially ‘self-sufficient’ in the current climate.

The proceedings pack and video from the Virtual Middle Eastern Cement Conference 2020 is availabe to buy now

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Punjab government approves five cement plant plans

09 December 2020

Pakistan: The government of Punjab Province has approved five cement plant plans worth a total of US$1.25bn. The Frontier Post newspaper has reported that Chief Minister Usman Buzdar chaired a cabinet meeting in which No Objection Certificates (NOCs) were issued to five planned cement plant projects.

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Madukkarai Cement fined US$61,000 for fugitive cement dust

07 December 2020

India: The Tamil Nadu Pollution Control Board (TNPCB) has fined ACC subsidiary Madukkarai Cement US$61,000 for fugitive emissions of clinker and cement dust in mid-2020. The Hindu newspaper has reported that inspections found dust in the village Kurumbapalayam, Coimbatore District, located on the eastern side of the cement plant. An ambient air quality survey in September 2020 revealed higher-than-prescribed particulate volumes.

In addition to paying the fine, the producer must comply with 19 instructions of the TNPCB for air pollution control and monitoring by 7 January 2021.

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Loma Negra suspends production at Olavarría plant

07 December 2020

Argentina: A dispute between a supplier and its union has caused Loma Negra to switch off two kilns at its Olavarría cement plant. The Clarín newspaper has reported that the argument is between Minerar, which provides the plant’s raw limestone, and the Asociación Minera Obrera Argentina (AOMA), which represents miners’ interests. The union says that miners are underpaid. They receive US$245/yr less than cement plant workers.

The producer said, “It is the leading Argentine cement company, with approximately 45% of total sales in the country. This shortage will impact the country's economy, which had been recovering after the pandemic." The union rejected a mandatory conciliation on 3 December 2020. Negotiations began in October 2020.

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UltraTech Cement targets 12.8Mt/yr additional cement capacity

04 December 2020

India: The board of directors of Aditya Birla subsidiary UltraTech Cement has approved a planned increase in cement production capacity of 12.87Mt/yr. This will increase its capacity to 136Mt/yr from 123Mt/yr, at a cost of US$743m. The company says that the expansion will consist of new plants and upgrades to existing plants in the ‘fast-growing markets of the east, central and north regions of the country.’ This includes the upcoming Pali integrated cement plant in Rajasthan and capacity expansions at plants in Bihar, Odisha, Uttar Pradesh and West Bengal, that are due for completion in the 2022 financial year (1 April 2021 - 31 March 2022).

The producer said, “Given the company’s history of setting up capacities in record time, commercial production from the new capacities is expected to go on stream in a phased manner, by early 2023. This capacity addition will not impact the on-going deleveraging programme, which is on track to make UltraTech debt-free by the time the expansion program is completed.”

Aditya Birla group chair Kumar Mangalam Birla said, “This significant investment in a core infrastructure sector will accelerate the wheels of economic activity and aid the kick-start of the private investment cycle. The capital outlay, given the current economic backdrop, is aligned with the government’s Atmanirbhar Bharat programme. It is also a marker of UltraTech’s ascent from being India’s No.1 cement player to a national champion. The cement industry has been witnessing healthy volumes post-relaxation of lockdown, on the back of the government’s thrust on infrastructure, underlying demand from the rural economy and individual home builders. Given its pan-India presence, which will be further strengthened by the capacity expansion, UltraTech will be well-positioned to support the rising demand for cement in the country.”

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LafargeHolcim unveils Indian waste heat recovery plans

03 December 2020

India: Switzerland-based LafargeHolcim plans to invest US$112m in implementing waste heat recovery (WHR) plants across six of its cement plants in India by the end of 2022. The group has estimated a net carbon dioxide (CO2) emissions reduction of 0.5Mt/yr as a result of the installations, towards its target of a 65% total reduction between 2018 and 2030.

Chief Sustainability Officer (CSO) Magali Anderson said, "On our net zero journey, we set ourselves an ambitious scope-two target. I am very excited to see India leading the way by investing US$112m in WHR. This major step forward builds on our procurement teams’ work in renewable energy."

When commissioned, the new plants will double the group’s WHR power generation capacity in India.

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Loesche - Innovative Engineering
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