Displaying items by tag: Spain

Spain: Cementos Alfa, part of Cementos Portland Valderrivas Group, has received permission from the Ministry of Environment to expand its quarry. The approval also allows the cement producer to expand the area of its quarry, according to the El Diario Montañés newspaper. The quarry currently produces 0.6Mt/yr of limestone and marl that are used for clinker production at the neighbouring plant.

Lots of facts stuck out from the inaugural Global GypSupply Conference that took place in Brussels last week. One was that Spain exported 1.49Mt of raw gypsum to West Africa in 2016. The data point from Spanish customs popped up in a presentation by Mohamed El Moustapha, the managing director of a gypsum mining company based in Mauritania. He was using the figures to reinforce the opportunities for his company to supply the growing cement industry in West Africa. Yet the size of the market has implications for the oft-repeated claims of cement sector self-sufficiency that various countries in the region have cried out for.

Gypsum is used as a retarding agent to control the setting time of cement. It gets added whilst clinker is ground into cement. Roughly speaking, cement production requires about 5% of gypsum. So a 1Mt/yr cement plant would require around 50,000t/yr of gypsum. The crucial question for cement producers in West Africa is where is this gypsum coming from. Given that the Global Cement Directory 2018 places cement production capacity at just under 100Mt/yr in the region, this requires around just under 5Mt/yr of gypsum.

El Moustapha made out that there were no gypsum deposits in West Africa. This contradicts a study on Nigerian gypsum mining published in Global Gypsum Magazine in March 2016 estimated local reserves to be around 150Mt although to be fair to El Moustapha these appear to be relatively underused. This also doesn’t take into account sources of synthetic gypsum produced at coal-power plants although this is likely to be negligible at present.

Reserves in Mauritania appear to be much larger at 1.7Bnt. Instead, the problem here appears to be assisting the exploitation of mined gypsum by improving infrastructure and supply chain issues. El Moustapha’s company Samia reported that it exported 170,00t of gypsum to cement plants in West Africa, mainly via ship, but with a significant minority via truck overland to Mali. Another speaker at the conference from the Moroccan gypsum trader Cultura presented a snapshot of a more mature market with exports of 210,000t in 2017. However, similar issues with port infrastructure were also present. To this end the company was keenly looking forward to an upgrade project the Port of Safi due for commissioning in 2020 – 2022 that would allow larger ships to berth.

A market report on the gypsum and anhydrite market by Roskill in 2014 placed Egypt, Algeria and South Africa as Africa’s leading gypsum producers. In particular it singled out South Africa as the only sub-Saharan country producing more than 100,000t/yr of gypsum. In terms of usage of gypsum Roskill estimated that just over half of the world’s gypsum was used to make cement, followed by 38% for wallboard and plaster production and then 18% for agricultural usage. Although this compares to just over a quarter for cement production and most of the rest for wallboard production in the US, with its more developed wallboard market than the rest of the world, according to recent United States Geological Survey (USGS) data.

As the Global GypSupply Conference demonstrated plenty of raw gypsum is available around the world. However, since supply and price can vary considerably in the short term, cement producers are keen to secure steady sources. Developing gypsum sources in northern Africa are necessary to help build the West African cement industry, but the regions need to work together.

The 2nd Global GypSupply Conference will take place in spring 2020

Spain: Cementos Molins has benefited from good performance in Mexico, Argentina and Spain. Its sales revenue rose by 13% year-on-year to Euro779min 2017 from Euro691m in 2016. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 15% to Euro192m from Euro168m. The cement producer attributed its increase in sales to higher prices and sales volumes.

Spain: Oficemen, the Spanish Cement Association, says that cement consumption grew by 11% year-on-year to 12.3Mt in 2017. The association expects it to rise by 12% to 13.7Mt in 2018. However, the cement consumed in 2017 is well below the high recorded in 2007. This has been due, in part, to a decrease in the amount of cement used in infrastructure projects. Cement used in civil works decreased by 75% to 5Mt in 2017 from 19Mt in 2008.

Exports of cement fell by 10% to below 9Mt, mainly due to a ‘loss of competiveness’ caused by growing local electricity prices. The association added that Spain is the largest exporter in the European Union and the eighth largest exporter of cement worldwide.

Ivory Coast: Jean-Claude Brou, the Minister of Industry and Mines, has inaugurated a new mill at LafargeHolcim Ivory Coast’s plant at Abidjan. The new mill has increased the unit’s production capacity to 2Mt/yr, according to the Agence Ivoirienne de Presse. LafargeHolcim Ivory Coast re-used a ball mill from a Spanish cement plant that was dismantled and shipped to Abidjan. The mill uses a 4.5MW motor and the cement producer says it is the largest horizontal ball mill in French-speaking West Africa. The project cost US$28.5m.

Spain: LafargeHolcim’s subsidiary Holcim España invested over Euro2m in its cement plant at Jerez during 2017. The work included environmental improvements, changes to the despatch areas and health and safety upgrades such as fire detection systems in its fuels storage zones. The plant also introduced a sulphate-resistant cement product (CEM IV/A (V) 42,5 R/SR) in May 2017 targeted for marine applications.

Spain: Vicente Pedro has been appointed as the new plant manager of Lafarge Spain’s Montcada i Reixac plant near Barcelona. He succeeds José Luis Coleto, who will take over the management of the Sagunto plant in Valencia, according to the Crónica Global newspaper.

Pedro trained as an industrial engineer at the Universitat Politècnica de València. He has worked for LafargeHolcim and its predecessor companies for over 30 years spending time at plants at Spain, Venezuela and Brazil. More recently he has managed the company’s capital expenditure projects in Spain.

Spain: The board of directors of Oficemen, the Spanish cement association, has elected Jesús Ortiz, the chief executive officer (CEO) of HeidelbergCement in Spain, as its new president. He suceeds Jaime Ruiz de Haro, the CEO of Cemex España.

Jesús Ortiz, aged 56 years, worked between 1983 and 1989 as a Diplomatic Commercial Attaché for the French Ministry for Economy and Finance in various overseas postings and in France. In 1989 he joined Italcementi Group in France and then held different operational responsibilities at its Spainish operations. Between 2003 and 2007 he served as Managing Director of Italcementi Group’s activities in Greece and Bulgaria. He joined HeidelbergCement in 2007 as its General Manager for Spain before moving to Brussels to assume responsibilities for the group’s aggregate and concrete business in Europe and Africa. Following HeidelbergCement’s acquisition of Italcementi in 2016 he returned to Spain to coordinate the integration of the companies.

He holds a diploma in Economics and Business Administration from the ESC Clermont Graduate School of Management in Clermont-Ferrand, France and a master's degree from the European Institute of Business Administration in Fontainebleau, France. He is also the president of the European Aggregates Association (UEPG).

Spain: Sergio Martínez Hernández has been appointed as the new director of LafargeHolcim’s Carboneras cement plant in Almería. Martínez Hernández holds over 24 years of experience in the cement industry, according to Teleprensa. He joined Holcim in 1993 after training as an engineer at the Escuela Técnica Superior de Ingenieros Industriales (ETSII) in Madrid. During his career he has worked at plants in Gádor in Almería, Yepes in Toledo and Portland in Colorado, USA.

Plenty to mull over this week in Cembureau’s newly published Activity Report for 2016. The association pulls together data from a variety of places including its own sources, Eurostat and Euroconstruct. For competition reasons much of it stops in 2015 but it paints a compelling picture of a continental cement industry starting to find its feet again.

Graph 1: Cement intensity of the construction sector in Europe, 2000 – 2015. Source: Cembureau calculation based on Eurostat and Euroconstruct in Activity Report for 2016.

The really interesting data concerns so-called cement intensity. This is the quantity of cement consumed per billion Euro invested in construction. Figures calculated by Cembureau from data from Eurostat and Eurocontruct show that cement intensity has remained stable in Germany, France and the UK but that it fell sharply in Spain and Italy from 2000 to 2015. In other words the pattern of construction changed in these countries. One suggestion for this that Cembureau offers is that construction moved from new projects to renovation and maintenance. These types of construction projects require less cement than new builds. Seen in this context the huge production over capacities seen in Italy and Spain in recent years makes sense as the local cement industries have coped with both the economic crash and a step change in their national construction markets.

Further data in the report falls in line with the impression given by the multinational cement producers in their quarterly and annual financial reports. Cement production picked up in the Cembureau member states from 2012 and in the European Union members (EU28) from 2013. Meanwhile, import and export figures disentangled from a close relationship at the time of the financial crash in 2008 with imports of cement declining and exports increasing markedly. Much of it will have originated from Italy and Spain as their industries coped with the changes. Cembureau then forecasts that cement consumption will rise in 2017 by 2.4% and 3.5% in 2018 in the 19 countries than form the Euroconstruct network. A key point to note here is that most of the larger European economies will see consumption consistently grow in 2017 and 2018 with the exception of France where it growth will remain positive but it will slow somewhat in 2018. This fits with last week’s column about France with the early reports from LafargeHolcim, HeidelbergCement and Vicat reporting slight declines in sales volumes so far in 2017.

Cembureau’s country-by-country analysis also provides a good overview of its member industries. Looking at the larger economies, residential construction was the main driver for cement consumption in France and Germany in 2016. In Germany further growth is hoped for from an increased infrastructure budget set by the Federal Government. Italian cement consumption fell in 2016 and further decreases are anticipated for 2017, particularly from the public sector. By contrast though the story in Spain is still one of declining cement consumption but one heavily mitigated by exports. Spain is the described by Cembureau as the leading EU export country. Finally, there’s little recent on the UK other than uncertainty concerns about the Brexit process and an anticipated rise in infrastructure spending by 2019. The sparse detail here is probably for the best given the current political deadlock in the UK following the continued fallout from the general election in early June 2017.

In summary, Cembureau’s data shows that modest growth is happening in the cement industries of its member countries. It’s not uniform and some nations such as Spain and Italy are coping with changes in the composition of their industries. Cembureau also highlights the unpredictable consequences of the UK’s departure from the EU as one of the biggest risks in 2017. Check out the report for more information.