Displaying items by tag: Sinoma
CNBM and Sinoma start merger preparations
23 August 2016China: The Assets Supervision and Administration Commission has announced the reorganisation of the China National Building Materials Group Corporation (CNBM) and China National Materials Group Corporation (Sinoma). The commission did not provide further details on the merger.
CNBM is the world's major non-metal materials manufacturer, and cement equipment and engineering service provider, with total assets over US$64.5bn. Sinoma is also an industry leader in the construction materials industry. China has started accelerating the reorganisation of its SOEs to improve their competitiveness.
Nigeria: Sinoma International, a subsidiary of Sinoma, has signed two engineering, procurement and construction deals with Dangote Cement worth a total of US$370m. The first, project worth US$281m, is to build a 6000t/day clinker production line for Okpella Cement, a subsidiary of Dangote based in Edo state. The scope of the contract covers limestone crushing to packaging cement for shipping. The project is expected to take 27 months to produce cement and 30 months to complete.
The second project, worth US$89m, is to build a slag grinding plant at Port Harcourt. The scope of the contract covers unloading slag and gypsum to packaging cement for shipping. The project is expected to take 20 months to complete.
One Chinese cement giant, one massive order
15 June 2016A Sinoma subsidiary was raking in the big bucks this week with the announcement that it had booked a Euro1.05bn order with the Egyptian government. The order was for six 6000t/day cement production lines plus assorted maintenance contracts from Chengdu Design and Research Institute of Building Materials Industry (CDI).
The order caps a busy month for Sinoma. At the start of June, another subsidiary, CBMI, said that it had picked up deals to build two new lines in Algeria for Groupe des Ciments d’Algérie. Around the same time another project in the country, a joint venture between Lafarge Algeria and Souakri Group, revealed that it had started commissioning its mill. Other assorted cement projects announced so far in 2016 include a waste heat recovery unit for Thai Pride Cement in Thailand, a conversion to coal burning at South Valley Cement in Egypt and various orders for mills via Loesche for Sinoma projects in Vietnam.
The scale of that latest Egyptian order becomes apparent when one looks at Sinoma, or China National Materials Group Corporation’s, annual results. It reported revenue of US$8.08bn in 2015, a slight decrease from US$8.38bn in 2014. Those six lines represent 13% of the group’s entire turnover in 2015. That’s one humongous order. The last time Sinoma signed a cement deal on this magnitude was in August 2015 when Nigerai’s Dangote placed an order at a value of US$1.49bn.
Elsewhere on the balance sheet for 2015, its profit fell markedly by 25% year-on-year to US$150m from US$200m. However, its new order intake grew by 14% to US$5.1bn. Overseas orders accounted for over three quarters of this or US$4.32bn, its highest level on record. This compares to its rival FLSmidth’s new order intake of US$2.8bn in 2015. It declared that it would continue to seek business outside of China in line with the country’s ‘One belt, one road’ policy focusing on Central Asia and South America.
This growth by Chinese engineering companies on the world stage may have been stymied in 2015. The Verband Deutscher Maschinen- und Anlagenbau (VDMA) in Germany reported in April 2016 that the members of its Industrial Plant Manufacturers’ Group (AGAB) had booked orders of Euro19.5bn in 2015, a similar figure to its orders in 2014. This compared to a drop of 63% of large plant orders (not just cement) in 2014 from Euro5.29bn in 2013. AGAB saw opportunity in service industries for its German members as markets stalled in Russia and Brazil, and China’s property market faced its own problems. Research by UBS Evidence Lab, as reported by the Financial Times in May 2016, has taken a different view, suggesting that Chinese construction quarry equipment manufacturers such as Sany, Zoomlion and XCMG were likely to expand their market share outside of China to 15% by 2025. At present the research pegged them at 7%.
Expansion comes with its risks though. In late May 2016 Sinoma International Engineering reported details of a tax dispute it was suffering in Saudi Arabia. The Saudi subsidiary of the company was levelled with a request for unpaid back taxes from 2006 and 2008. At the time it was appealing against a bill of US$18m. In a changing global marketplace some things never change. Global success it seems is taxed.
Egypt: Chengdu Design & Research Institute of Building Materials Industry, a subsidiary of Sinoma, has been awarded a Euro1.05bn order to build six 6000t/day cement plants from the Equipment Bureau of the Ministry of Defence. The scope of the turkey contract includes construction of six new integrated cement production lines, operation and maintenance of two 5775t/day cement production lines of Phase II of GOE ARISH and the six Beni Suef cement production lines under the contract for three years. The order represents around 15% of Sinoma’s turnover in 2015.
Algeria: CILAS, a joint operation between Lafarge Algeria (49% stake) and Souakri Group (51% stake) located in the northeast of the country, has started commissioned its mill at its Biskra cement plant. Operation of the site’s kiln is scheduled to start in July 2016 according to the El Watan newspaper.
China’s CBM, a subsidiairy of Sinoma, signed a deal to build the plant in mid-2014. The engineering, procurement and construction (EPC) contract included design, equipment supply, civil construction, installation, training and commissioning of the project. The plant will have a cement production capacity of 2.7Mt/yr when fully operational.
Algeria: Groupe des Ciments d’Algérie (GICA) has signed two agreements with CBMI, a subsidiary of Sinoma, to build a new cement plant in Bechar and upgrade the Zahana plant at Mascara. The agreements were signed in the presence of Industry and Mines Minister Abdessalem Bouchouareb, China's ambassador to Algiers Yang Guangyu and the chief executive officers of GICA and Sinoma, according to the Algeria Press Service.
The Bechar cement plant will have a cement production capacity of 1Mt/yr and it will be run by the Saoura Cement Company. The upgrade work at Zahana cement plant has an investment of US$344m. A new 1.5Mt/yr production line will be built at the site run by the Cement Company of Zahana. Work at both sites is planed to be complete in 2018.
Paraguay: Industria Nacional del Cemento (INC) has reported progress on upgrade projects at its cement plants in Vallemi and Villeta. At its plant in Vallemi the company is continuing work on upgrading the fuels that the kiln can use. The project is expected to save up to US$22m/yr. CIE is conducting the work and the launch is scheduled for January 2017.
INC is also building a cement grinding plant at Villeta. The new mill is being built by Sinoma for a cost of US$11.5m and is scheduled for delivery in August 2016. It will have a cement production capacity of 80t/hour or be able to produce around 800,000 bags/month of cement. INC also plans to start operating a pozzolan drying unit at Villeta in September 2016.
Long Son Company orders mill from Loesche
06 May 2016Vietnam: Long Son Company has ordered a cement grinding mill from Loesche for its Dong Son Bim Son cement plant. The order is part of a contract with Sinoma-NCDRI. The contract includes a type LM 56.4 Loesche mill with a performance of 520t/hour. It will grind cement to a fineness of 12% R DIN 0.09mm. The gearbox of this mill has a power output of 3600kW.
Vietnam: Loesche has signed a contract with Sinoma-NCDRI for three mills to be supplied for Thanh Thang Cement in Bong Lang, Ha Na. A type LM 60.6 Loesche mill with a performance of 520t/hour as a reliable unit has been ordered to grind cement to a fineness of 12% R DIN 0.09mm. The gearbox of this mill has a power output of 4600kW. Two separate type LM 53.3+3 CS Loesche mills with a performance of 200t/hour will be in use to grind clinker to 3400 Blaine. The gearboxes of these two mills each have a power of 4,600 kW.
The scope of delivery for this order also includes rotary feeders, water injection, metal detectors and sealing air fans. All three mills are to be put into operation by October 2016.
South Valley Cement to convert to coal for US$14m
01 February 2016Egypt: South Valley Cement has signed a contract with Sinoma CDI to convert its plant to coal burning for US$14m. The contract is expected to be complete by April 2017. In August 2015 South Valley Cement signed a US$38m contract for Sinoma to build a grinding line for the plant.