Displaying items by tag: Shah Cement

The Bangladeshi cement industry has been busy over the last month. Both Vietnam and Iran have marked up the country as a major destination for their exports. No change there, but Saudi Arabia has also started to join them as its producers have started announcing clinker export deals to the country. Alongside this there have also been production upgrades announced from MI Cement, Chhatak Cement and a Saudi-led partnership. Also, just before Christmas, Shah Cement inaugurated the world’s largest vertical roller mill (VRM) with a 8.1m grinding table, supplied by Denmark’s FLSmidth, at its Muktarpur plant in Munshiganj.

Md Shahidullah, vice president of the Bangladesh Cement Manufacturers Association (BCMA), described 2018 as a good year for the local industry to local media. Cement sales rose to 33Mt and consumption grew by 12% year-on-year.

The country has an integrated production capacity of 8.4Mt/yr from eight plants according to Global Cement Directory data. The main plants are Chhatak Cement and Lafarge Surma Cement. Locally produced clinker accounts for about 20% of the country’s needs, with the other 80% imported from abroad. Hence, the action is really with the grinding plants and the country has over 30 of them. A market report by EBL Securities in mid-2017 reckoned that local cement production capacity was 40Mt/yr but that actual production was around 32Mt in the 2016 - 2017 reporting year due to problems with power supplies and so on. Given the focus on grinding it’s interesting to note imports of clinker. These rose by 9% year-on-year to a value of US$518m in 2017 - 2018, the highest figure since 2014 - 2015. Not all of this may be consumption related since the local currency, the Taka, depreciated against the US dollar in 2017 and 2018.

Back in 2016 the market leaders were Shah Cement, LafargeHolcim Bangladesh, Bashundhara Group, Seven Rings Cement and HeidelbergCement. They accounted for about half of the market share. Of these LafargeHolcim Bangladesh saw its revenue nearly double year-on-year to US$101m from US$58m in the first half of 2018. Its profit did double to US$6.3m from US$2.7m. The company is a joint venture between LafargeHolcim, Spain’s Cementos Molins and other partners.

Bangladesh suits a grinding-based industry due to its high level of navigable waterways and low levels of limestone. In some respects though the country is a glimpse of what future cement markets might look like. Its lack of raw materials means it focuses on grinding and a clinker-rich world plays right into this. This creates an oversaturated market full of lots of companies due to the lower cost of setting up a grinding business or cement trading. In theory this should be great for end consumers and the general development of the country. After all Bangladesh has a high population, of 164 million, and a low gross domestic product (GDP) per capita, US$4561, and similarly low per capita consumption of cement. The downside though is that reliance on external raw materials. Any changes to exchange rates or material supply puts the entire industry at risk or puts prices in flux. In the meantime though the interest by Saudi exporters adds an interesting dynamic to a crowded market.

Bangladesh: Shah Cement has inaugurated the world’s largest vertical roller mill (VRM), supplied by Denmark’s FLSmidth, at its Muktarpur plant in Munshiganj. The FLSmidth OK 81-6 Mill has an 8.1m grinding table and six grinding rollers powered by two 5.8MW FLSmidth MAAG Max Drive gear systems. FLSmidth says that the mill is the largest VRM ever to be installed in a cement plant in terms of dimension, operating capacity and installed power. It was put in operation in September 2018

“We are proud to have the world’s largest vertical roller mill as part of our operations. We selected the FLSmidth OK 81-6 Mill for its exceptional efficiency and reduced power consumption – and we are expecting it to deliver as promised. As the largest single-unit grinding mill in the industry, we expect it to meet our production requirements for many years,” said Hafiz Sikander, Director of Operations, Cement Division of Shah Cement Industries.

The mill is designed to produce Ordinary Portland Cement (OPC), Pozzolana Portland Cement (PPC), Portland Slag Cement (PSC) and slag cement types. It is producing PPC at a capacity of 500t/hr at 3500 Blaine with 15% slag. In addition to the OK Mill, FLSmidth supplied the process and layout engineering, along with site advisory. The supporting equipment included FLSmidth Pfister weigh feeders, FLSmidth Airtech process bag filters, process fans and auxiliary equipment from raw material hopper discharge to process bag filter discharge.

Shah Cement Industries is the largest cement producing plant in Bangladesh, with a capacity of 8.0Mt/yr. The company is part of the Abul Khair Group, the largest business conglomerate in Bangladesh.

India: Aumund India has been awarded orders for 17 bucket elevators, eight silo discharge systems and one pan conveyor in connection to orders FLSmidth has received from Tamilnadu Cement, Akij Cement and Shah Cement.

Aumund India will deliver one type BW-ZL bucket elevator, one type BWG belt bucket elevator and three type BWG-GK belt bucket elevators instead of the conventional Aumund type BWZ bucket elevator for the Akij Cement project. For the Tamilnadu Cement project FLSmidth had specific design criteria and wanted a certain safety factor for the chain. So Aumund India provided an optimised solution, which met these specific criteria. It will deliver two type BW-ZL bucket elevators, eight type BWG bucket elevators, eight type SDI silo discharge systems and one type KZB deep drawn pan conveyor. For the Shah Cement project Aumund India will deliver two type BWZ bucket elevators.