US: Solidia Technologies has filed a patent for a new hydraulic cement consisting of Ordinary Portland Cement (OPC) and other supplementary cementitious materials (SCM) including lime, alkali hydroxides, clay minerals and over 10% synthetic pozzolan.

Solidia Technologies said, “In order to reduce global CO₂ emissions it is necessary to adopt new approaches to create a new generation of hydraulic cements. The most efficient cement kiln can produce OPC clinker with an associated emission of 816 kg of CO₂/t. Blending the ground cement clinker with SCM, which have low or zero associated production CO2 emissions, reduces the total embodied CO₂ of the final product. Using a cement with the lowest possible clinker factor for a given application is the most common industry approach to reducing the CO₂ footprint of concrete.”

Kazakhstan: Steppe Cement recorded earnings before interest, taxation, depreciation and amortisation (EBITDA) of US$23.9m in 2019, up by 12% year-on-year from US$21.4m in 2018. Sales volumes of cement remained stable at 1.7Mt with local sales increasing by 4% and exports decreasing by 29% due to increased competition and negative currency effects. Steppe Cement said that overall domestic demand was 8.9Mt, up by 2% from 8.7Mt in 2018. The company operated at 88% production capacity and production costs per tonne rose by 10% due to increases in fuel and transportation prices.

Finland: Lujabetoni says it has begun work on a new 80 - 100m3/hr ready-mix concrete plant in Kuopio, Northern Savonia to replace its existing plant in the town. The new unit, which will serve construction projects throughout the region, will have an improved raw materials heating system. The plant is scheduled for completion in late 2020 or early 2021.

Exports are the theme this week with news that the value of Turkey’s cement exports fell by 26% year-on-year in April 2020. Reporting from the Trend News Agency showed that the export market has been stable so far for the year to date, with some countries, like Kazakhstan, increasing exports and others, like France, decreasing exports. However the change in April may mark the start of a new trend.

As Tamer Saka, the chairman of the Turkish Cement Manufacturers’ Association (TÇMB), said earlier in the year, his country is one of biggest cement exporters in the world and among its most important markets are the US, Israel, Ghana and Ivory Coast. To look at one of these countries, United States Geology Survey (USGS) data shows that cement and clinker imports from Turkey to the US grew by 26% year-on-year to 1Mt for the first quarter of 2020 but that exports fell by 24% year-on-year to 0.11Mt in March 2020. Each of these countries is being affected in different ways by the coronavirus pandemic and at different times. Overall though, Saka’s and the TÇMB’s forecast in February 2020 that exports would rise by 15% year-on-year in 2020 is looking decidedly shaky. Any knock to the export market in Turkey is particularly unwanted given the poor state of the Turkish economy at the moment.

What would be useful to know here is how other major cement exporters are coping with the global situation. Data from the Pakistan Bureau of Statistics shows that Pakistan’s cement exports dropped by 31% year-on-year to 0.36Mt in April 2020. Data from the All Pakistan Cement Manufacturers Association (APCMA) for the same month tells a similar story. Its data shows a 57% drop in exports to 0.25Mt in April 2020, with a bigger share lost by plants in the north of the country than those in the south.

The other country to note is Vietnam. Here, data from the General Department of Vietnam Customs shows that cement exports fell by 9.7% year-on-year to 7.73Mt in the first quarter of 2020. This follows the announcement by Vietnam Cement Association (VCA) chair Nguyễn Quang Cung in May 2020 that all cement plant projects scheduled to begin in 2020 would be suspended. Luckily those currently being built avoided this fate. This has included a new line at Thanh Thang Group Cement’s integrated Bong Lang cement plant, which Germany’s Loesche has just sent a pair of clinker mills to this week.

These changes from the major cement exporters are bad for their host countries but the other side of the chain is how their destinations are affected. For example, Australia’s clinker imports nearly doubled between 2010 – 2011 and 2018 – 2019 to 4.1Mt. This compares to local clinker production of 5.6Mt in 2018 – 2019, according to the Cement Industry Federation and the Australian Bureau of Statistics. With this in mind, this week saw the resolution to a legal dispute between Wagners Holdings and Boral over a cement supply contract. Boral found a cheaper source of cement from Cement Australia in early 2019 and the two parties argued over their contract. This dispute may have nothing to do with foreign import levels but Wagners Holdings, Boral and Cement Australia all operate standalone clinker grinding plants and will all be subject to general market pricing trends. Higher international clinker levels may add pressure to pricing issues surrounding cement supply contracts in Australia and elsewhere.

Finally, cement trade flows aren’t the only commodity that has been affected by coronavirus disruption. The mass movement of workers home and then back to work is expected to complicate India’s return to business, as discussed in last week’s column. In this context it’s pleasing to come across one sign of normality. Local press in Hubei, China reported this week that workers from Huaxin Cement finally flew back to Uzbekistan. They were originally meant to commission a new plant in March 2020 but became stranded at home when they returned for the Chinese New Year. Commissioning of the plant is now planned for later in June 2020.

The Virtual Global CemTrans Conference and Exhibition 2020 on cement & clinker, shipping & trade, transport & logistics takes place on 16 June 2020. To find out more information and to register click here.

US: Germany’s Beumer Group has appointed Joseph Dzierzawski as the president and chief executive officer (CEO) of Beumer Corporation, its US subsidiary based in Somerset, New Jersey. He has been in post since April 2020. He is responsible for the Conveying & Loading Systems, Palletizing and Packaging Technology, and Sortation and Distribution Systems business lines in the North American market.

Dzierzawski holds a degree in metallurgical engineering from the University of Michigan. Later he attended executive management programs at the University of Michigan School of Business and the INSEAD business school in Fontainebleau, France. He joins Beumer from Hatch Metals & Minerals group where he worked as Global Director, Technology & Business Development. Prior to this he worked at SMS, where he held a series of positions, eventually serving as president and CEO for SMS USA and Chief Technology Officer for SMS Group.

Austria: Semperit has appointed Gabriele Schallegger as its chief financial officer (CFO) with effect from October 2020. Her term of office will end in October 2023.

Schallegger, aged 48 years, studied business administration in Graz and Exeter in the UK followed by several international management programmes, including one in St. Gallen, Switzerland. She most recently worked as the finance director of the Uncoated Fine Paper division at Mondi. Prior to this she held the position of CFO of Mondi Syktyvkar in Russia as well as finance director of the Kraft Paper Business division. She started her career in auditing and tax consulting at Arthur Andersen in Vienna. Subsequently she worked for the American pharmaceutical company Baxter and the Norwegian Orkla Foods Group, among others.

She succeeds Petra Preining, who had taken over the CFO role on an interim basis and will return to the supervisory board and audit committee of Semperit in October 2020.

Semperit develops, produces and sells a wide variety of products including conveyor belts, escalator handrails, construction profiles, cable car rings, products for railway superstructures, rubber products for the medical and industrial sectors and hydraulic and industrial hoses.

Nigeria: Sinoma Construction Nigeria says it has completed the construction of a second 6000t/d line at BUA Group subsidiary Obu & Edo Cement’s Edo cement plant, bringing the plant’s total integrated capacity to 5.5Mt/yr. The subsidiary of China-based Sinoma said that it completed the work in spite of an outbreak of malaria and electricity shortages. It said, “The successful fulfilment of the project has laid a solid foundation for the company's in-depth localised operation and comprehensive cooperation with the BUA Group.”

Honduras: The government says that it will not raise import duties on cement so as not to impact negatively upon “the construction industry and consumer.” The La Prensa newspaper has reported that Minister of the Secretariat of Economic Development María Antonia Rivera said, “The Government is defining regulations on the quality of imported cement and cement made in Honduras. We have no plans to increase tariffs; rather we are promoting price stability.”

Bolivia: Fábrica Nacional de Cemento (Fancesa) has announced that no cuts will be made to transport spending until after the end of the coronavirus lockdown. Plans to reduce operating expenditure in this area have been opposed by the company’s drivers. Fancesa head of transportation Jhonny Palma said, “Both parties now have the time to analyse the proposals. In due course we will present our operating cost sheets and these will be put up for debate.”

Pakistan: The government has announced plans to complete the construction of the Daimer-Basha Dam on the River Indus in Khyber Pakthunkhwa and Gilgit Baltistan. Daimer-Basha Consultants Group holds a consultancy contract worth US$169m for the project, and the government has awarded the energy supply contract for the dam’s 21MW hydroelectric power plant to a joint venture of the military Frontier Works Organisation and China-based Power China. Besides power generation, the aims of the project are to increase the area of land useable for agriculture and to stop floods and droughts. Flare Business News has reported that the dam, construction of which first began in 1998, will generate a demand for ‘huge quantities’ of cement and steel and create 16,500 jobs.