Displaying items by tag: Poland
Spain: Cemex España has announced plans to invest Euro4m in upgrades to its Buñol, Valencia, Muel, Zaragoza, Raspeig, Alicante and Rubí, Barcelona mortar plants. The upgrades will increase production capacity, safety and efficiency and improve product quality. The company said that the promotion of its range of over 160 special mortars is a main focus of the investment.
Cemex Europe, Middle East, Africa and Asia regional president Sergio Menéndez said “We recognise the growing demand for innovative mortar solutions for new and existing buildings to reduce carbon emissions in our cities and support the EU Renewal Wave. Our wide range of mortars for dry silos, in bags and ready to use, is reinforced by expert solutions for paving streets, plastered walls, tunnel solutions, plasters and special sands.”
The group is also investing in upgrades to production and packaging systems in its mortar segment in Poland and the UK.
Exporting Chinese cement overcapacity
06 January 2021One of the last news stories we covered before the Christmas break was that Lafarge Poland had selected China-based Nanjing Kisen International Engineering as the general contractor for a Euro100m-plus upgrade to its Małogoszcz cement plant. This appears to be the first major European cement plant upgrade project to be publicly run by a Chinese contractor. There may be other European projects in the sector run by Chinese companies ‘on the down-low.’
If it is the first then this is a significant milestone for the growth of the Chinese industry. It is a noteworthy first for Nanjing Kisen in the European Union. Europe is the home, after all, of a number of locally-based contractors and companies that can build or upgrade cement plants including FLSmidth, Fives, ThyssenKrupp, IKN and others. Indeed, all of the work on this project might actually be conducted by local companies, selected by the general contractor. For example, Lafarge Poland says that the general contractor will select a subcontractor on the Polish market.
It’s easy to fall into jingoistic nostalgia but should we really be surprised that China can competitively build cement plants given the ferocious growth of its own industry over the last few decades? Arguments by Western critics against growing Chinese dominance in industry have tended to home in on excuses why they might be ‘cheating’ such as intellectual property theft, unfair state aid or the use of low-cost infrastructure loans to countries along its Belt and Road Initiative. That last one carries some irony given that not so long ago discussions about developing world debt were framed in the context of the Cold War and the oil crisis in the 1970s. Western countries were seen as the bogeymen depending on one’s political outlook. With this in mind, the Financial Times recently reported on data released in December 2020 that suggested that China might be heading into its own overseas debt crisis. The takeaway message here is that attempting to apply China’s whopping infrastructure boom elsewhere might not work so well without the same level of control. Exporting production overcapacity abroad may simply turn out to be something like a giant Ponzi scheme! For the cement industry this may mean a pause or wind-down in the number of new plants backed by Chinese money, often with Chinese contractors tied in, and that the rise of Chinese engineering firms might not seem as unassailable as all that after all.
This leads into another noteworthy story that we also published before Christmas on China’s latest proposal to further reduce production capacity at home. The Ministry of Industry and Information Technology (MIIT) wants to tighten the ratio of production capacity that has to be closed before new capacity can be built from 1.25:1 to 1.5:1. The kicker is that the new rules also include a clause intended to restrict the use of so-called ‘zombie’ capacity in the swapping process by limiting eligibility to productions lines that have been operated for two or more consecutive years since 2013. These rules seem targeted at the present day but they could potentially push Chinese cement production capacity per capita to rates more similar to those found in developed economies elsewhere (i.e. halve existing Chinese production capacity). Many of the country’s kilns were built in the early 2000s and the average lifespan of a clinker kiln is 50 years. This suggests that the ministry is thinking seriously about culling capacity by the administration’s carbon neutrality target of 2060.
Chinese penetration in the European cement plant market is more of an after-thought given the pace of projects in Asia and Africa over the last decade and the maturity of the sector. It can also be misleading given that some very-European-sounding engineering companies are actually owned by Chinese concerns. Yet no doubt local contractors and suppliers would like to keep any business they can. On the other hand, more market share may be found in Europe over the coming decades from retrofitting CO2 mitigating equipment or building the anticipated hydrogen revolution once the regulatory and financial framework starts to favour it. Or maybe shifts to service and/or machine intelligence-style packages are the way forward. Nanjing Kisen may be the first Chinese company to upgrade a European cement plant but the market focus may quickly move on. Time will tell.
Happy New Year from Global Cement
Lafarge Poland awards upgrade project at Małogoszcz cement plant to Nanjing Kisen International Engineering
23 December 2020Poland: Lafarge Poland has chosen China-based Nanjing Kisen International Engineering as the general contractor for a Euro100m-plus upgrade to its Małogoszcz cement plant. The subsidiary of China Triumph International Engineering will deliver an engineering, procurement and construction (EPC) contract and it intends to select a local Polish subcontractor. This is the first project by the Chinese engineering company in Poland and the European Union.
The first works related to project started in October 2020. First clinker production from the upgrade is scheduled for December 2022 with overall commissioning planned for spring 2023. Part of the investment will be implemented in cooperation with the Krakow Technology Park as part of the Polish Investment Zone. LafargeHolcim says the upgrade project is part of its scheme to reduce its CO2 emissions by 55% by 2025 compared to 1990 levels.
Cementownia Warta orders Aumund arched plate conveyor
28 October 2020Poland: Cementownia Warta has ordered a BPB-SF heavy-duty arched plate conveyor for the new limestone crushing facility at its Warta integrated cement plant from Germany-based Aumund. The supplier says that it will deliver the equipment before the end of 2020.
Aumund said that it has delivered “more than 20 machines” to the Warta plant since the producer placed its first order with the company in 1998. In 2020 it delivered five KZB pan conveyors of a total capacity of 2300t/hr as part of a project to construct a 120,000t steel-roofed concrete silo at the plant.
Lafarge Poland to upgrade Małogoszcz cement plant
27 October 2020Poland: Lafarge Poland has shared plans to modernise its 2Mt/yr Małogoszcz cement plant in Świętokrzyskie Voivodeship. The company says its planned investment of Euro100m will, “increase technical efficiency and minimise environmental impacts by reducing CO2 emissions by 20% and energy consumption by 33%.” The project, which will partly be carried out in partnership with Krakow Technology Park, is scheduled for completion in 2023.
Lafarge Poland president Xavier Guesnu said that the modernisation is part of the company’s effort to meet its commitment of 55% emissions reduction to 300kg/t of cement in 2030 from 667kg/t in 1990.
Polish Cement Producers Association celebrates 30th anniversary
14 October 2020Poland: The Cement Producers Association (CPA) has celebrated the 30th anniversary of its founding with the release of a report entitled ‘The Influence of the Cement Industry on the Polish Economy.’ The report states that the industry’s 13 cement and grinding plants, which employ 3500 people across the country, have received Euro2.23bn in investments since 1990.
CPA chair Krzysztof Kieres said, “We have started actions aimed at achieving emission neutrality at our 60th anniversary in 2050. These ambitious climate goals, the economic situation and legislative changes constitute new challenges for the cement industry, and it needs to look for partners with similar goals - to care for the development of the construction industry and the entire Polish economy.”
Czech Republic achieves record cement production in 2019
03 September 2020Czech Republic: Domestic cement production was 4.57Mt in 2019, up by 3.2% year-on-year from 4.43Mt in 2018. CTK Business News has reported a corresponding increase in domestic sales, up by 1.5% to 3.84Mt from 3.78Mt, and exports, up by 1.9% to 761,000t from 747,000t. Slovakia received 380,000t (50%), Germany received 221,000t (29%), Austria received 114,000t (15%) and Poland received 68,500t (9%). Imports fell by 15% to 490,000t, of which Slovakia supplied 245,000t (50%), Poland supplied 122,000t (25%), Germany supplied 98,000t (20%) and Austria supplied 39,200t (8%).
Association of Cement Producers lobbies Polish government to allow production to continue
08 April 2020Poland: The Association of Cement Producers (SPC) has told the government that the cement industry generates 1.0% (Euro5.39bn) of annual gross domestic product (GDP) directly and 10% (Euro53.9bn) indirectly via construction and, as such, ought to be permitted to continue operations as a ‘necessary business’ under the terms of the country’s coronavirus lockdown. The SPC also said that the industry serves a crucial function in disposing of 11-12% (1.32 – 1.44Mt/yr) of Poland’s waste as fuel for cement production.
Poland has been on lockdown due to the coronavirus outbreak since 11 March 2020.
ScanChain opens new Polish plant
27 March 2020Poland: Denmark-based chain specialist ScanChain has announced that it will be producing and distributing chains from a new facility located in Poznan in the province of Greater Poland. The company says it has ended its partnership with a partial ownership by UK-based John King Chains.
Scan Chain said “Over the past three years we have seen a great growth in new markets. We are pleased that both ScanChain and John King Chains wish to establish a strong link going forward.”
Belarusian Cement Company opens Polish office
28 February 2020Poland: Belarusian Cement Company (BCC) says that it has responded to ‘increased demand for Belarusian cement in Central Europe in 2019’ by opening an office in Warsaw, Poland. Belarus Daily News has reported that one purported aim of the office is to court supply contracts with ‘European, Polish, German and other partners.’
Both Krichevtsementnoshifer and Krasnoselskstrojmaterialy, the remaining two of Belarus’s three cement producers, have reportedly concluded preliminary agreements for export of their cement to Poland in 2020.