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News grinding plant

Displaying items by tag: grinding plant

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Dalmia Cement hears locals' concerns over Bokaro cement plant plans

01 December 2021

India: Dalmia Cement has presented its plans for its planned Bokaro, Jharkhand, grinding plant expansion and heard locals' concerns at a community meeting. The company said that the plant would increase local employment and agreed to compensate communities impacted by its operations. The plans consist of the installation of 2Mt/yr-worth of new grinding capacity on 0.1ha of land.

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Jajpur Cements to commission 1.5Mt/yr Jajpur grinding plant in December 2021

16 November 2021

India: Sagar Cements says that its subsidiary Jajpur Cements is on track to commission its new 1.5Mt/yr Jajpur grinding plant in Odisha in December 2021. The Hindu BusinessLine newspaper has reported that the company invested US$41m in the plant’s construction. Sagar Cements acquired Jajpur Cements in May 2019 for US$16m. It had previously aimed to complete the new grinding plant’s construction by March 2021.

In October 2021, another Sagar Cements subsidiary, Satguru Cement, commissioned its new US$80.6m 1Mt/yr Indore integrated cement plant in Madhya Pradesh. The completion of both projects will bring Sagar Cements’ total installed capacity to 8.25Mt/yr. the company said that the new facilities will help in its rationalisation of freight expenses and help it to diversify its sales outside of existing markets.

Published in Global Cement News
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Update on Sri Lanka: November 2021

03 November 2021

The news from Sri Lanka this week is that Lanwa Sanstha Cement is preparing to commission a new 3Mt/yr grinding plant in January 2022. The timing is apposite given the current shortages in the country.

Some inkling of local problems can be seen in the cement news over the last few months. In August 2021 Insee Cement said that it was operating at full capacity utilisation across its network. Later, at the end of October 2021, the government intervened in the import market by opening up the use of Trincomalee Harbour. This was followed by the nation’s other main producer, Tokyo Cement, announcing that it too was operating its grinding plant at Trincomalee at full capacity. It also said that, at the government’s behest, it was going to increase its import rate.

The new Lanwa Sanstha Cement unit originally came to international attention when Germany-based Gebr. Pfeiffer revealed details in 2019 of an order of two MVR 5000 C-4 type roller mills from Onyx Group. Lanwa Sanstha Cement has since said that the plant will cost US$80m. Once operational the unit at the Mirijjawila export processing zone of the Hambantota International Port will manufacture ordinary Portland cement, Portland slag cement, Portland limestone cement and blended hydraulic cement. A further equipment order for the project was announced this week when the Chinese-run Hambantota International Port Group signed an agreement with Lanwa Sanstha Cement to build a conveyor from the port to the plant. The deal also includes two ship unloaders.

Other new cement units on the horizon include an integrated plant project from Nepalese businessman Binod Chaudhary that was announced in mid-2019. The US$150m plant was planned for Mannar in the north of the island. However, not much more has been heard since then. Chaudhary’s company CG Cement operates a grinding plant in Nepal. More recently, in October 2021, local press reported that the government had tentative plans to build a new plant at the old state-owned Kankesanthurai site, also in the north. The plant was originally built in the 1950s and production ran until 1990 when the military took over the unit amid the then on-going civil war. Earlier in 2021 the government agreed to sell off the machinery at the site. However, much of it has gone missing in the intervening period! Proposals to revive the plant have circulated since the mid-2010s.

Graph 1: Cement production and imports in Sri Lanka, 2015 – 2021. Estimate for 2021 based on January to August data. Source: Central Bank of Sri Lanka.

Graph 1: Cement production and imports in Sri Lanka, 2015 – 2021. Estimate for 2021 based on January to August data. Source: Central Bank of Sri Lanka.

The Sri Lankan cement market has faced a tough time over the last two years. First, total local production and imports fell by 11% year-on-year to 7.2Mt in 2020 from 8.1Mt in 2019. Then, imports fell by 18% year-on-year to 1.83Mt from January to August 2021 from 2.24Mt in the same period in 2020. Local production has more than compensated though, leading to growth in the total so far in 2021. There have been general economic reasons for why the ratio of imports to local production has fallen in 2020 and 2019 and this is explained in more detail below. Yet, imports hit a high of 5.68Mt in 2017 and have been declining since then both in real terms and proportionately.

Insee Cement summed up the local situation in its third quarter results by blaming cement shortages on input cost rises, supply chain disruption and negative exchange rates effects. The first two problems are issues everywhere around the world as economies speed up again following the coronavirus lockdowns but the last one is more specific to Sri Lanka. The country has faced a recession in its economy because the pandemic shut down tourism. The government initially introduced import limits to try and control foreign currency reserves. It then imposed price controls on essential foods and commodities, including cement, in September 2021 to try and stop shortages but this plan was abandoned a month later. Focusing on cement, some idea of the input cost inflation facing the sector can be seen in Tokyo Cement’s latest quarterly financial results. Its cost of sales rose by 72% year-on-year to US$59.5m in the six months to end of September 2021 from US$34.5m in the same period in 2020.

Lasantha Alagiyawanna, the State Minister of Consumer Protection, said at the end of October 2021 that it would take three weeks to import the required cement into the country. Whether this is enough to end the shortage remains to be seen. Yet, whatever does happen, it is likely that more production capacity from the likes of Lanwa Sanstha Cement and others will be welcome in 2022 and beyond.

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Lanwa Sanstha Cement to commission 3Mt/yr Hambantota grinding plant in January 2022

01 November 2021

Sri Lanka: Lanwa Sanstha Cement says that it will commission its Hambantota grinding plant in the Mirijjawila export processing zone of Hambantota International Port in January 2022. The company says that the plant will have a capacity of 3Mt/yr and cost US$80m. The Daily News newspaper has reported that the owner aims to help to counteract the domestic cement shortage.

Chair Nandana Lokuwithana said "One of the highlights of this first-of-its-kind facility in Sri Lanka will be the emphasis on new technology, with all mixing carried out using the latest European technology, while much of the other equipment used throughout the production process has been customised by world-renowned pioneers in innovation with environmental friendliness in mind." He added "Packaging is done using state-of-the-art technology for improved efficiency and minimal wastage."

Once commissioned, the Hambantona plant will produce ordinary Portland cement (OPC), Portland slag cement (PSC), Portland limestone cement (PLC) and blended hydraulic cement (BHC), according to Lanwa Sanstha Cement.

Published in Global Cement News
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Wonder Cements dispatches first delivery of cement from Nardana grinding plant to Ahmednagar

27 October 2021

India: Wonder Cements has dispatched cement from its Nardana, Maharashtra, grinding plant via a new rail route to Ahmednagar, also in Maharashtra. The Free Press Journal newspaper has reported that Wonder Cement plans to extend its use of the route 'in the near future' to send cement by rail to Mumbai Port. Western Railway's Mumbai Division expects to receive revenues of US$26,700/yr for use of its services. At its current rates, this would equate to annual deliveries of 383t.

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Tokyo Cement increases supply to solve Sri Lankan shortage

27 October 2021

Sri Lanka: Harsha Cabral, the chairman of Tokyo Cement Company (Lanka), says that the company has taken several immediate measures to address a local cement shortage. He said in a statement that it is operating its grinding plant at Trincomalee at its full capacity of around 170,000t/month, according to the Daily Mirror newspaper. He added that the company had been importing 30,000t/month of bulk cement through the Tokyo Cement Colombo Terminal. It had also, following a request by the government, made arrangements to import an additional 12,000t /month of cement as a contingency measure. However, Cabral, noted that the cement shortage was due to a variety of reasons beyond the control of the company. These included a lack of bulk cargo ships and delays in opening credit letters with local banks.

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Big Boss Cement suspends operations until 2022

20 October 2021

Philippines: Big Boss Cement has reportedly suspended business operations until 2022. An unnamed source at the company quoted by the Philippine Daily Inquirer newspaper said that the company is ‘rehabilitating’ its facilities. It added that the company is using a lull in business to make changes.

The company was set up by SM Group heir Henry Sy Jr in 2018. It opened a grinding plant at Porac in Pampanga, Luzon in 2018 and commissioned a third mill at the site in late 2020. Notably the unit manufactures its own secondary cementitious material, which it calls Granulated Activated Sand by Heating, as well as importing clinker and other raw materials.

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LafargeHolcim Côte d'Ivoire to produce white cement at Abidjan grinding plant from 2022

20 October 2021

Ivory Coast: LafargeHolcim Côte d'Ivoire has announced plans for the launch of white cement production at its Abidjan grinding plant in 2022. APA News has reported that the plant's clinker costs increased by 80% quarter-on-quarter in the third quarter of 2021. This, along with a drop in grey cement prices, inspired the strategic change.

Chief executive officer and managing director Rachid Yousry said "Our ambition is clear; it is to be the benchmark cement supplier in the Ivory Coast through our services." The 2.5Mt/yr-capacity producer held a 20% market share in the country in 2020.

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Penna Cement to launch US$207m initial public offering

19 October 2021

India: Penna Cement has received clearance for a US$207m initial public offering (IPO). The company will offer a US$33.3m stake for sale along with the fresh issue of US$173m. The Times of India newspaper has reported that the company plans to use US$73.3m of the fresh capital to settle its debts and to invest US$14m in the construction of second line at its Krishnapatnam grinding plant Andhra Pradesh. It will invest a further US$10.7m in an upgrade to raw material and clinker grinding mills at its Talaricheruvu cement plant, also in Andhra Pradesh.

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Cockburn Cement commences Kwinana grinding plant upgrade project

18 October 2021

Australia: Cockburn Cement has begun a US$152m upgrade of its Kwinana grinding plant. Business News has reported that the project will consolidate the company’s Kwinana and Munster grinding operations at a single 1.5Mt/yr plant. The company says that this will increase its production capacity by 36% and reduce its cement’s CO2 emissions by 20%.

The company will manage operations at the plant directly. Managing director Nick Miller said "We've all seen through the Covid-19 outbreak that domestic manufacture of essential products such as cement and industrial lime becomes critically important. Reliability of supply has become a very important driver for decision makers." He added "We have turned away from a turnkey contract to a self-delivery model. Part of the self-delivery model is to access small to medium sub-contractors in the market, where we have seen better value in what is a very heated market."

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