Displaying items by tag: grinding plant

Togo: Germany-based Intercem Engineering says that CimMetal Group’s upcoming 2.5Mt/yr Lomé grinding plant is on track for commissioning ‘at short notice’ in late 2021. The supplier has delivered a 1000tph truck unloading station, a 25,000tph storage facility for additives, a 1000tph truck loading station, two 50,000t clinker silos, four Rotopackers, eight truck loading stations, ten truck scales and laboratory equipment, alongside steel construction, sheet metal fabrication, subsystems, electrical equipment and complete engineering services.It is also supervising the erection and commissioning of the plant. It said that all material conveyor belts are mounted in a closed gallery to ensure dust-free transport. The belt system is also designed for fully automatic ship unloading.

The plant is the third delivered for CimMetal Group by InterCem Engineering and partners InterCem Installation and Switzerland-based InterCem Cement, after one in Burkino Faso and one in Ivory Coast.

Italy: Colacem plans to stop grinding cement at its Maddaloni Plant in Campania from the start of October 2021. The unit will be converted into a sales and logistics site, according to the Il Mattino newspaper. The cement producer purchased the Maddaloni plant from Italcementi in mid-2018 as part of the measures required by the Italian Competition Authority when Italcementi acquired Cementir. The kiln at the plant was later shut down in early 2019.

Panama: Panamanian cement producers reused cooling water used in cement grinding at a rate of 88 – 100% nationally in 2020. The development is part of a concerted water conservation effort first launched by Argos Panamá. The La Estrella newspaper has reported that Cementos Panamá’s Quebrancha grinding plant reduced its water consumption by 88% in five years, to 59,600m3 from 477,000m3 in 2015. The plant’s cement now has a water consumption of 100l/t, compared to 537l/t in 2015.

Guatemala: Cemex Latam Holdings plans to invest US$25m in installing a new mill at its 500,000t/yr Guatemala City grinding plant. The company says that the mill will increase the plant’s capacity by 80% to 900,000t/yr.

Cemex South America, Central America and Caribbean president Jesus Gonzalez said "This investment reinforces Cemex's commitment to Guatemala's development and reflects our confidence in the favourable outlook of the economy in the country and the region." Gonzalez added “We are excited about expanding our offer of products and solutions to the market which contribute to sustainable construction, like Vertua, our family of net-zero and low carbon products."

Companhia Siderúrgica Nacional (CSN) Cimentos was confirmed this week as the agreed buyer for Holcim’s Brazilian cement business for US$1.03bn. The deal includes five integrated cement plants, four grinding plants and 19 ready-mix concrete facilities. CSN is now poised to become Brazil’s third-largest cement producer by production capacity after Votorantim and InterCement. Or second place if you believe CSN’s cheeky claims about a competitor’s idle capacity!

Figure 1: Map of cement plants included in CSN Cimentos’ deal to buy LafargeHolcim Brazil assets. Source: CSN Investor Relations website.

CSN originally started out in steel production and this remains the major part of its operations to the present day. In 2020 it reported revenue of US$5.74bn. Around 55% of this came from its steel business, 42% from mining, 5% in logistics and only 3% came from its cement segment. CSN’s path in the cement sector started in 2009 when it started grinding blast furnace slag and clinker at its Presidente Vargas Plant at Volta Redonda in Rio de Janeiro state. It then started clinker production in 2011 at its integrated Arcos plant in Minas Gerais. Not a lot happened for the next decade, publicly at least, as the country faced an economic downturn and national cement sales sunk to a low in 2017. From around 2019, CSN Cimentos then started talking about a number of new proposed plant projects elsewhere in Brazil, dependent on market growth and an anticipated initial public offering (IPO). These included plants at Ceará, Sergipe, Pará and Paraná and expansion to the existing units in the south-east. Then CSN Cimentos agreed to buy Cimento Elizabeth for US$220m in July 2021.

It is worth noting that the Holcim acquisition is subject to approval by the local competition authority. For example, the Cimento Elizabeth plant and Holcim’s Caaporã plant are both in Paraíba state and within about 30km of each other. If approved, this would give CSN Cimentos two of the four integrated plants in the state, with the other two operated by Votorantim and InterCement respectively. CSN also stands to pick up four integrated plants in Minas Gerais from Holcim to add to the one it holds at present. Although this would seem to be of less concern due to the high number of plants in the state.

Holcim has made a point of saying that its divestment in Brazil is part of its strategy to refocus on sustainable building solutions with the proceeds going towards its Solutions & Products business following the Firestone acquisition that completed in early 2021. It has also stated previously that it wants to concentrate on core markets with long term prospects. In this context a major steelmaker like CSN diversifying into cement is a contrast. Both industries are high CO₂ emitters so CSN is hardly moving away from carbon-intensive sectors. Yet the two have operational, economic and sustainability synergies through the use of slag in cement production. This puts CSN Cimentos in company with Votorantim in Brazil and JSW Cement in India, two other steel manufacturers that also produce cement. Whatever else happens at the 26th United Nations Climate Change conference (COP26) in November 2021, it seems unlikely that global demand for steel or cement is likely to be significantly reduced. CSN Cimentos is now going to resume its IPO of shares to raise funds for the Holcim acquisition.

Acquisitions are all about timing. The CSN Cimentos-Holcim deal follows the purchase of CRH Brazil by Buzzi Unicem’s Companhia Nacional de Cimento (CNC) joint-venture earlier in 2021. As mentioned above, the cement market in Brazil has been doing well since it started recovering in 2018. The coronavirus pandemic barely slowed this down due to weak lockdown measures compared to other countries. The current run of sales growth may be tapering off based on the latest National Cement Industry Association (SNIC) figures for August 2021. Rolling annual totals on a monthly basis had been growing since mid-2019 but this started to slow in May 2021. Annual sales will be up in 2021 based on the figures so far this year but after that, who knows? A CSN investors’ day document in December 2020 predicted, as one would expect, steady cement consumption growth in Brazil until at least 2025, based on correlated forecast growth in the general economy. Yet fears of inflation, rising prices and political uncertainty ahead of the next general election in late 2022 may undermine this. InterCement, for example, cancelled a proposed IPO in July 2021 due to low valuations amid investor uncertainty. CSN Cimentos may encounter similar issues with its own planned IPO or face over-leveraging itself when it picks up the tab for LafargeHolcim Brazil. Either way, CSN decided to take the risk on its path to becoming Brazil’s third largest cement producer.

India: Shree Cement is planning to launch three projects with a total value of US$646m. The Press Trust of India newspaper has reported that US$476m-worth of the sum will go towards establishing a new 3.8Mt/yr integrated cement plant at Nawalgarh in Rajasthan’s Jhunjhunu district. The producer will invest a further US$102m in establishing a grinding plant in Purulia district, West Bengal, to take advantage of ‘favourable’ demand. Lastly, it will invest US$68m in installing solar power plants at ‘various’ cement plants across India.

Shree Cement said “The company has committed to maximising the use of clean energy in its operations. Setting up of the above solar power plants will enhance the proportion of clean energy usage in the total energy consumption of the company.”

Brazil: Companhia Siderúrgica Nacional (CSN) has agreed to acquire Switzerland-based Holcim’s Brazilian cement business for US$1.03bn. The business’ assets include five integrated cement plants, four grinding plants and 19 ready-mix concrete facilities. Holcim said that the deal strengthens its balance sheet by ‘significantly’ reducing its debt ratio. It will use the proceeds to invest in its solutions and products business, building its recently acquired subsidiary Firestone. Latin America remains a core strategic growth region, according to the company.

Cheif executive officer Jan Jenisch said “This divestment is another step in our transformation to become the global leader in innovative and sustainable building solutions, giving us the flexibility to continue investing in attractive growth opportunities. We are pleased to have found a responsible buyer with CSN that will develop the Brazilian business over the long term.”

India: The state government of Orissa has approved cement grinding plant projects proposed by My Home Industries and Ramco Cements. My Home Industries plans to build a new 3Mt/yr grinding plant at Badchana in Jajpur. The Orissa Diary newspaper has reported the value of the producer’s planned investment as US$89.0m. Ramco Cements has proposed a 0.9Mt/yr at Haridaspur in Jajpur. The unit will cost US$26.0m and employ 60 local people.

China: Anhui Conch’s operating revenue grew by 8.7% year-on-year to US$12.5bn in the first half of 2021 from US$11.5bn in the same period in 2020. However, its net profit fell by 7% to US$2.32bn from US$2.49bn. The group blamed this on rising raw material prices and ‘fierce’ competition. Anhui Conch reported that its production and sales volumes of cement and clinker increased by 11.5% to 208Mt. By region, sales grew in east, central and south China but fell in the west.

The group said that one clinker production line and two cement grinding units for Hunan Yunfeng Cement had been commissioned during the first half of 2021. Construction work on two grinding projects based in Haimen and Ganzhou also started. Outside of China, work on the group’s Qarshi project in Uzbekistan progressed to the installation of equipment.

India: Dalmia Cement has signed three memoranda of understanding with the state government of Jharkhand. The memoranda provide that the Dalmia Bharat subsidiary will invest US$104m in expanding its cement operations in the state. The producer’s plans consist of a US$68.5m upgrade and capacity expansion to its Bokaro cement grinding plant. The project will increase the existing production line’s capacity to 3.7Mt/yr and add a new grinding line, bringing the total plant’s capacity to 6.3Mt/yr. In addition the cement producer will spend US$34m towards building a solar power plant and the remainder will be spent on setting up a waste management facility.