Displaying items by tag: Zuari

India: The Andhra Pradesh Pollution Control Board (APPCB) has issued Zuari Cements’ Kapada cement plant with a closure order. The order follows an alleged failure to conform to a previous environmental order from the APPCB. The Indian Express newspaper has reported that, pursuant to the order, the board has requested police to cut off the power supply to the integrated cement plant.

India: HeidelbergCement India is targeting expansion options to increase its production capacity to 20Mt/yr from 12.5Mt/yr. Managing director Jamshed Cooper said that the company is looking at companies in the range of 5 – 10Mt/yr in order to avoid the National Company Law Tribunal (NCLT) process, according to the Indo-Asian News Service. The cement producer is also planning to build a 22MW waste heat recovery unit at its Zuari plant in Yerraguntla, Andhra Pradesh at a cost of US$28m. Debottlenecking initiatives are also being conducted at a cost of US$7m to increase overall production capacity by 0.5Mt/yr when completed in 2021.

The group operates two subsidiaries locally: HeidelbergCement India and Zuari Cement. HeidelbergCement India serves the central markets and Zuari Cement, a former Italcementi subsidiary, focuses on the south of the country.

India: Zuari Cement’s integrated cement plant at Sitapuram, Telangana has been issued a show cause notice by the Central Pollution Control Board (CPCB) for exceeding particulate matter emissions. During an inspection it has found to be emitting 40.6mg/Nm³ from the kiln and 78mg/Nm³ from the cement mill, according to the Times of India newspaper. The limit is 30mg/Nm³. CPCB officials also found other violations including an alleged deliberate attempt show reduced levels of sulphur dioxide and nitrogen oxide. The plant has been asked to calibrate its dust monitors properly and submit a compliance report by late July 2019.

Zuari Cement's ground breaking of a new port-side packing terminal in Kochi, Kerala is the latest Indian cement news story with an eye on the sea. The Italcementi subsidiary's terminal won't be open until 2015 but the move shows that Indian producers are starting to tackle industry over-capacity through shipping lanes.

The Italcementi subsidiary holds two integrated cement plants and a grinding plant in Andhra Padesh and Tamil Nadu, two of India's biggest cement-producing states. In 2013 Italcementi reported that cement consumption fell for the first time in 10 years. Although Italcementi's cement and clinker sales rose by 1.6% in India in 2013, its revenue fell by 14% to Euro214m. Profit indicators like earnings before interest, taxes, depreciation, and amortisation (EBITDA) also fell. Targeting Kerala, one of the country's smallest cement producing states (0.6Mt/yr in 2013), makes sense.

Zuari Cement isn't the only Indian cement producer with its eye on shipping or on Kerala. At the end of March 2014, Gujarat producer Sanghi Industries announced plans to invest US$25m in ships and sea terminals. It plans to acquire six vessels in the next five years. It is also in the process of setting up terminals at Navlakhi port in Gujarat and at Mumbai port in Maharashtra.

Sanghi has stated that its aims are to find new markets, reduce fuel costs and increase its distribution networks. In an interview with Alok Sanghi, the director of Sanghi Cement, for a forthcoming issue of Global Cement Magazine, Sanghi revealed that Kerala is one of the four markets the producer focuses on within India (alongside Gujarat, Rajasthan and Maharashtra).

Neighbouring Pakistan is no stranger to exporting its cement around the world. Frequent complaints from east and south African press and cement producers attest to this. However, this week's story about plans to build the country's first 'dirty cargo' terminal at Port Qasim, Karachi marks a change from the normal narrative.

According to a Pakistan cement producer who Global Cement interviewed earlier in 2014, coal is the most common fuel used to fire cement kilns following a shift from gas in recent years. Subsequently coal prices rose, leading to higher cement prices in the country. A new terminal with the capacity to handle 12Mt/yr of coal (growing to 20Mt/yr in a second phase of the build) could certainly help cut input prices for the industry.

The producer also mentioned that most of the coal that Pakistan currently uses is imported from Indonesia and South Africa. So, indirectly, the South African coal industry appears to be making money helping to make Pakistan cement that eventually arrives back in South Africa to undercut local cement producers! They say that market always finds a way. Ships certainly help.