Displaying items by tag: White cement

Mexico: Cemex has closed the sale of its white cement business outside of Mexico and the US for US$155m to Turkey-based Çimsa Çimento. The assets sold include the company’s Buñol white cement plant in Valencia, Spain. The group said that the proceeds from the sale would be used to fund its bolt-on investment growth strategy in its core businesses and geographies, and contribute to debt reduction.

Spain: Cementos Molins has completed the acquisition of a white cement terminal in the Port of Alicante from Turkey-based Çimsa. The unit includes a 10,000t silo and it will be able to supply over 50,000t/yr from the site. The producer also plans to use the terminal to bolster exports from its 0.7Mt/yr integrated white cement plant at Kairaouan in Tunisia, which is operated by subsidiary Société Tuniso-Andalouse de Ciment Blanc (SOTACIB). It distributes products from this plant to over 15 countries.

Spain: Turkey-based Çimsa Çimento intends to complete its acquisition of Cemex’s Buñol white cement plant in June 2021. Local government says that the purchase agreement has been in place since 2019 but has delayed by the international nature of the deal and competition concerns, according to Agencia EFE. Çimsa Çimento agreed to buy Cemex’s white cement business in Spain, including its Buñol plant, for around US$180m in March 2019. It was originally scheduled for completion in the second half of 2019.

Russia: Cemix, a subsidiary of the Austrian firm Lasselsberger, is preparing to open its new white cement plant to open in Abzelilovsky District of the Republic of Bashkortostan, Volga. The first batch of cement will be manufactured in May 2021, with the plant expected to be fully commissioned in August 2021. The design capacity is 700t/day of cement, with plans to increase to 1000t/day in the future, depending on demand.

Cuba: Corporacion Cementos Cubanos’ integrated Siguaney plant has resumed production of grey cement after stopping in late 2020 due to technical problems. The plant is targeting grey cement production of 65,000t in 2021, according to the Escambray newspaper. In 2020 local media reported that the plant produced 87,000t of grey cement and 3000t of white cement. At present the plant has 4000t of white cement in inventory and its annual production target for 2021 is 8000t.

Turkey: Denmark-based FLSmidth has won a contract to provide a grey-to-white cement line conversion at Çimko Çimento’s cement plant in Adiyaman. The company will supply equipment suited to the production of white cement including its DuoFlex burner, rotary cooler and OK raw mill. It said that it will begin work in 2021 and the producer will commission the renovated line in early 2022.

The supplier said, “Once completed, the upgraded line will offer Çimko Çimento new opportunities to expand its product range and enter new markets. White cement is especially sought-after in countries with relatively hot climates, as it tends to keep buildings cooler with its reflective characteristics. In addition, as a high-quality, value-added product, white cement is often used in the construction of innovative buildings and important landmarks. FLSmidth brings significant experience and know-how to the project, having conducted several similar grey-to-white conversions in recent years, including projects with Turkey-based Adana Cement and Eskisehir Cement, as well as Alsafwa Cement Company and Riyadh Cement Company in Saudi Arabia.”

Italy: An agreement between Italcementi and its unions has confirmed that its Bergamo research centre to stay in Italy. The agreement with the FenealUil, Filca-Cisl, Fillea-Cgil, Italcementi RSU unions is intended to preserve jobs at the company, maintain at least 15,000 hours/yr of research at the site and dedicate at least 1% of the company’s profits towards research and innovation. Parent company HeidelbergCement was reportedly considering a relocation of the centre to Heidelberg in Baden Württemberg, Germany in late 2020.

Separately, Italcementi’s grinding plant at Salerno has been approved to continue producing white cement. The decision follows staff cuts at the cement producer, according to the Il Mattino newspaper.

Cuba: Corporacion Cementos Cubanos’ Siguaney plant produced over 90,000t in 2020. Centrovision News has reported that the plant produced 87,000t of grey cement and 3000t of white. It had planned to produce 10,000t of white cement, but still exceeded its cement target overall. Cost per tonne of cement was also lower than planned.

The company said that grinding operations were disrupted when the Cienfuegos cement plant delivered less clinker than expected. As a result, the Siguaney plant’s kiln produced 18,000t of additional clinker. It achieved this through the use of refractory bricks from another kiln. Disruptions to imports also caused the company to hire Cuban Lubicrants Company (Cubalub) to provide lubricants for the plant’s compressors.

The producer said that it foresees no increase in cement production in 2021. It will launch two new pozzolanic cements, PP-35 and PZ-25.

General manager Gonzalo Reina said "PP-35 and PZ-25 have similar benefits to other cements, but their constitution saves clinker, a raw material that generates the greatest cost and constitutes the greatest difficulty in maintaining stable production.”

India: JK Cement has increased the capacity of its Katni wall putty plant in Madhya Pradesh to 700,000t/yr from 400,000t/yr. Projects Today News has reported that the putty consists mainly of JK Cement white cement. The company now has a wall putty production capacity of 1.2Mt/yr.

Çimsa and its parent company Sabancı Holding renewed their ambition to become a global leader in the global white cement market this week with the formation of Cimsa Sabanci Cement. The new subsidiary brings together most of Çimsa’s international white cement companies including Cimsa Americas Cement Manufacturing and Sales Corporation in the US, Cimsa Cement Sales North in Germany, Cimsa Cementos Espana in Spain and Cimsa Adriatico in Italy. Notably, the new entity does not include businesses in Romania and Russia or at home in Turkey. The move coincides with regulatory approval from the Comisión Nacional de los Mercados y la Competencia (CNMC) for Çimsa’s purchase of Cemex’s white cement business in Spain, including its integrated Buñol white cement plant, for around US$180m, which was first announced in March 2019.

The acquisition in Spain came with conditions though since Çimsa has now become the market leader in both bagged and bulk white cement locally, with a combined share of over 50% in the case of bulk white cement. Firstly, Çimsa has agreed to give Cementos Molins the rights to use its silo in Alicante along with a customer list over the last three years. Secondly, it has agreed to supply all its customers previously supplied from a silo in Seville from one in Motril instead for two years. The Motril terminal was purchased from Cemex. The idea here is to give Cementos Molins time to establish itself in the new market and for customers in the south of Spain to find alternative white cement suppliers if they want to. The latter condition was enough for the CNMC to approve the Cemex purchase in Spain. It was proposed on 24 September 2020 and then approved by the end of the month.

The wider picture is that Çimsa has been playing up its ambitions in white cement for a while now. At the time that the acquisition in Spain was announced, Tamer Saka, the president of Sabancı Holding Cement Group and chairman of Çimsa said, “With the integration of the Buñol white cement plant to our production and distribution networks, we will increase our white cement production capacity by 40%, translating into Çimsa becoming the world's largest white cement company.” This compares to Cementir’s self-declared world share of around 27% white cement production capacity, through its Aalborg White brand and others. Other recent developments at Çimsa include the commissioning of a 0.35Mt/yr white cement grinding plant in Houston, Texas by Cimsa Americas Cement Manufacturing and Sales Corporation in July 2019 with commercial sales starting later that year.

Back home in Turkey the domestic grey cement industry has faced difficulties in the last few years as the economy suffered, the capacity utilisation rate fell, competition increased in export markets and then coronavirus-related lockdowns caused further stress this year. By contrast the world white cement market has remained quite buoyant over the last decade, rising by around 7% year-on-year to 21Mt in 2018 and then remaining at a similar level in 2019.

HeidelbergCement memorably described white cement as a “niche product” when it left the scene in 2018 by selling its remaining shares in Lehigh White Cement in the US to Cementir. It has faced problems of its own this week with the decision by the European General Court (EGC) to uphold the European Commission’s (EC) previous ruling in 2017 to block a proposed takeover of Cemex Croatia by HeidelbergCement and Schwenk Zement. Funnily enough, that acquisition also revolved around a cement terminal. In this case the EC didn’t think that the offer by the potential buyers to grant access to a cement terminal in Metković in southern Croatia would be enough to assuage concerns about reduced competition following the transaction. Some you win, some you lose.