Displaying items by tag: grinding plant

Adani Cement’s dispute with truck driver unions in Himachal Pradesh is about to enter its fifth week. The standoff began on 15 December 2022 when the company closed its integrated plants at Darlaghat and Barmana in response to union freight rates. A third unit, a grinding plant at Nalagarh, reportedly continued to operate for a few days longer with raw materials supplied from neighbouring Punjab and Rajasthan, until the transport companies shut down its supply.

Adani Group took over the plants from Ambuja Cement and ACC following its acquisition of Holcim’s India-based businesses in September 2022. The new business seemed to be running smoothly as new officials were appointed and an alternative fuels subsidiary, Geoclean, was created. Then Adani Cement closed its two plants in Himachal Pradesh. In a statement the group said, “Our plants at Gagal (Barmana) and Darlaghat have been incurring losses for quite some time now with no signs of improvement due to stiff resistance from transportation unions ignoring the larger cause of employment generation and contribution to the state’s revenue.” The group added that it had requested the truckers reduce the freight rate to around US$0.07/t/km from US$0.14/t/km, with the lower rate previously recommended by a committee from the state’s transport department.

Himachal Pradesh held state elections in mid-November 2022 with the Indian National Congress (INC) party taking control of the state government from the Bharatiya Janata Party (BJP). The results of the poll were revealed about a week before the cement plants closed and the new administration has suffered a bumpy start to its tenure. At first the state government issued a show cause notice to the cement producer requesting that it explain the closures or else risk ‘appropriate administrative action.' Several rounds of talks followed to no avail. Most recently, a government subcommittee has been set up that will bring together representatives of Adani Cement and the truck unions to try and agree on new freight rates.

In production terms the closure of the Darlaghat and Barmana cement plants is a big deal in the state, given that they have a combined cement production capacity of 6Mt/yr from the region’s total integrated capacity of 10.5Mt/yr. Data is limited on the direct effects of the standoff on the cement and construction market so far. However, competitor UltraTech Cement may be benefiting as it was swiftly awarded the supply contract for government projects. Local press reports have also noted that some of the unions have been stopping cement trucks from entering the state.

What is clearer is the human side to the dispute. Around 1000 staff are employed both directly and indirectly at the Barmana plant and others have jobs at Darlaghat and Nalagarh. Adani Group has relocated at least 140 staff from both sites during the closures. In addition over 7000 drivers were supporting both plants. Even more people have jobs connected to the plants, their supply chains and markets.

The argument between Adani Cement and the truck driver unions in Himachal Pradesh needs to be resolved soon for the good of everybody. Rising fuel costs are the driver of this situation, although it would be interesting to know why the other cement producers in the state haven’t similarly reacted against high freight rates in the same way. India isn’t the only country where the cement sector has been affected by driver union activity. South Korea endured a series of driver strikes in the autumn of 2022 that disrupted the cement sector. Eventually the government enacted laws to restrict strikes that might cause disruption to key areas such as cement production. The International Monetary Fund (IMF) forecasts that global inflation rates will stabilise in 2023 after a sharp rise in 2022. Growth rates are also predicted to slow. As societies and companies adjust to this it seems likely that there will be more clashes between companies, unions and other organisations as everybody tries to absorb higher costs.

Chad: Société National de Cimenterie (SONACIM) has placed an order with a China-based machine parts supplier for a part for its Baoré grinding plant’s generator. Alwihda News has reported that previously ordered the part from a supplier based in Egypt, which since failed to make the delivery. Cement production has been suspended at the plant since early July 2022, pending delivery of the missing part.

SONACIM’s deputy director general Koye Ndaye Benoît said “As soon as the part arrives, production will be restarted.”

430 people are employed in SONACIM’s operations in Chad.

India: Dow Jones Institutional News has reported that Adani Group is in talks with a ‘major shareholder’ of Orient Cement over a possible acquisition of the latter’s stake in the CK Birla Group company.

Orient Cement first began producing cement in Telangana in 1982, and has since spread to Karnataka and Maharashtra, with a cement production capacity of 8Mt/yr.

Orient Cement previously leased land in Maharashtra for a new grinding plant from coal-fired power plant Adani Power Maharashtra, an Adani Group subsidiary, in late 2021. Adani Group entered the cement sector following its acquisition of ACC and Ambuja Cements from Switzerland-based Holcim on 16 September 2022.

India: Three cement producers plan to establish new plants in Shankragarh, south of the River Yamuna in Uttar Pradesh’s Prayagraj District. The Uttar Pradesh State Industrial Development Authority said that JK Cement has signed a memorandum of understanding for the construction of a 2.5Mt/yr grinding plant, according to the Hindustan Times newspaper. Eco Cement plans to build a 4Mt/yr grinding plant, and KJS Cement a 2Mt/yr cement plant. All three companies have applied for no-objection certificates from the Uttar Pradesh Pollution Control Board.

Australia: Bruks Siwertell has received an order from Hallet Capital for an enclosed ship unloader for Port Adelaide. A gantry-mounted Siwertell 490 F-type unit has been ordered along with a jetty screw-conveyor system feeding a dome silo and individual screw conveyors for installation inside the dome. The unloader will be suitable for discharging bulkers up to 40,000dwt at a rated cement handling capacity of 500t/hr. It is planned for delivery in August 2023 and will be assembled on site.

Hallett Group announced plans in mid-2022 to build a slag cement grinding plant in Port Augusta, South Australia. The project will also include a new distribution facility at Port Adelaide.

India: Purvanchal Cement plans to invest US$24m in cement acquisitions and new grinding capacity construction projects before 2026. Under the plans, the producer will double its cement production capacity to 1Mt/yr. The Economic Times newspaper has reported that the plans include the establishment of a grinding plant in West Bengal and a second new plant with an associated quarry in northern Assam.

Purvanchal Cement operates the 0.5Mt/yr Kamrup grinding plant in Assam.

Spain: FCC subsidiary Cementos Portland Valderrivas has completed its acquisition of global investment company KKR's Andalusian business, including its subsidiary Surgyps. Surgyps operates an 800,000t/yr grinding plant in Jerez de la Frontera, Cádiz. The business filed for bankruptcy in 2010, but continued to operate the plant under a government concession, lasting until 2031.

The El Economista newspaper has reported that Cementos Portland Valderrivas said "With this operation, the group complements its position in Andalusia by taking a decisive step in our commitment to reduce the carbon footprint of cement."

The group controls six integrated cement plants across Spain, with a total capacity of 9.9Mt/yr.

India: The government of West Bengal plans to commence mining activity at the Deocha Pachami cement block in Birbhum District. The state hopes that the block will support further development of industries, including cement. Financial Express Online News has reported that Mangalam Cement, Purbanchal Cement and Shree Cement all plan to build new cement facilities in West Bengal. Shree Cement will invest US$102m in its planned Purulia grinding plant. Mangalam Cement's potential upcoming grinding plant will serve its planned new integrated cement plant in Chhattisgarh.

UK: The planning applications committee of Kent County Council has approved Hercules Enterprises' Euro46.5m plan for a new 500,000t/yr grinding plant at Sheerness Docks on the Isle of Sheppey. The Sheerness Times Guardian newspaper has reported that the council assented subject to the producer's adherence to its particulate and dust management plan and continual noise monitoring. When commissioned, the new plant will create 52 new jobs, generate up to 144 truck movements per day and increase traffic on the A249 by 1%.

Hercules Enterprises' director Stuart Mason Elliot said that the new facility will help to move cement production away from its reliance on road transport. He said “This is not an open, dated, dusty old operation, but a fully-enclosed, clean, modern, environmentally responsible and sustainable plant designed to be a good neighbour to residents and other occupants of the port.”

Morocco: Ciments du Maroc has officially started its 0.7Mt/yr Nador grinding plant in Oulad Settout. The new unit will be supplied with clinker from the integrated Ait Baha plant in Souss-Massa. It is intended to support the development of the north and east regions of the country. The project had a cost of around Euro84m.

Robert Dölger, the German ambassador, Zouhair Magour, the honorary consul of Germany, René Aldach, the chief financial officer of Heidelberg Materials, Hakan Gürdal, the head of Heidelberg Materials’ Africa-East Mediterranean Region, the president of the Oulad Settout region and various directors of Ciments du Maroc attended a ceremony marking the event on 9 December 2022.

The subsidiary of Heidelberg Materials operates three integrated plants, four grinding plants, four aggregate quarries and 21 ready-mix concrete plants in the country.