Global Cement Newsletter

Issue: GCW412 / 03 July 2019

Headlines


Charah Solutions has been steadily building up its fly ash distribution business in recent years with an eye on the supplementary cementitious materials (SCM) market. This week it opened the third of its new series of SCM grinding plants, at Oxnard in California, US. The unit sticks out because it is focusing on grinding natural pozzolans. The plant will receive natural pozzolan by truck and rail and then use Charah’s patented grinding technology to produce pozzolan marketed under its MultiPozz brand. The previous plants in this series mentioned natural pozzolans but this is the first to promote it explicitly.

The change is potentially telling because global demand for granulated blast furnace slag (GBFS) outstrips supply. Both performance benefits and environmental regulations are pushing this. It’s a similar situation for fly ash, also driven by trends to close coal-fired power stations in some countries. As Charles Zeynel of SCM trading firm ZAG International explained in the March 2019 issue of Global Cement Magazine, “...volcanic pozzolans are a potential SCM of the future. This is gaining traction, but it’s slow progress at the moment. This will be the answer for some users in some locations.”

The problem though is that natural pozzolans are down the list of preferred SCMs for their chemical properties after silica fume, GBFS and fly ash. The first is expensive but the latter two were traditionally cheap and easy to obtain if a cement or concrete producer had access to a source or a distribution network. Natural pozzolans are very much subject to variations in availability.

It’s no surprise then that Charah is promoting natural pozzolans in a Californian plant given that state’s environmental stance. It’s unclear where Charah is sourcing their pozzolan from but they are not the only company thinking about this in the US. Sunrise Resources, for example, is working on the environmental permits for a natural pozzolan mine near Tonopah in Nevada. As it described in its company presentation, California and Nevada are the most affected states in the fly ash supply crisis because they are, “...at the end of the line when it comes to rail deliveries from power stations in central and eastern USA.” It also estimated that California used 0.9Mt of pozzolan in its cement production of which about 90% is fly ash. The state produced 9.6Mt in 2015. Other companies are also mining and distributing natural pozzolans in the US as the website for the National Pozzolan Association (NPA) lists. Although, if this line-up is comprehensive, then the field is still fairly select. Most of these companies are based in the west of the country.

One last thing to consider is that various groups are tackling a potential future lack of SCMs for the cement industry by making their own pozzolanic materials through the use of calcined clay. These groups include the Swiss-government backed LC3 project and Cementir’s Futurecem products. Using clay should bypass the supply issues with natural pozzolans but the cost of calcining it requires at the very least an investment to get started.

As concrete enthusiasts often point out, a variant of pozzolanic concrete was used by the Romans to build many of their iconic structures, some of which survive to the present day. To give the last word to the NPA, “What is old is new again: natural pozzolan is back!” If environmental trends continue and steel and coal plants continue to be shut then it might just be right.


South Africa: PPC has appointed Roland van Wijnen as its chief executive officer (CEO). He succeeds Johan Claassen, who announced his retirement in November 2018. Van Wijnen has signed a four-year contract and is expected to take up the position as soon as he secures a work permit.

Van Wijnen has worked for Holcim and LafargeHolcim for 17 years in various leadership positions across the group including the CEO of Holcim Philippines. He also worked in South Africa for the business before it left the territory. He is an Industrial Engineering graduate from the University of Twente in the Netherlands.


Barbados/Jamaica: Trinidad Cement has made changes to its executive management at its subsidiaries in Barbados and Jamaica. It has appointed Carlos Roberto Cordero Castro as the General Manager of Arawak Cement in Barbados. He succeeds Yago Castro Izaguirre in the role from 1 August 2019. It has appointed Castro Izaguirre as the General Manager of Caribbean Cement. He succeeds Peter Donkersloot Ponce from 1 August 2019.


Spain: FYM-HeidelbergCement plans to spend Euro3m on a new raw slate crusher at its integrated Malaga cement plant. The upgrade will replace two existing crushers and will improve dust and noise emissions. The new crusher will be installed in early 2020, with commissioning scheduled for the middle of the same year. No supplier for the equipment has been specified.

The plant is also about to launch a new clinker conveyor at the Port of Malaga. The enclosed system will deliver clinker from the dock to ships via a telescopic arm with a loading capacity of 650t/hr. The first boat to be loaded with the new system is scheduled for late July 2019. The project cost Euro2.5m.


North Korea: Production has reportedly been stopped for three months at the Seongho Lee cement plant near Pyongyang due to a lack of electricity. Sources quoted by South Korea based Daily NK online newspaper suggest that government power rationing has lowered the importance of the plant in comparison to other so-called ‘core’ industries.

The Korean Cement Association reported in 2011 that the plant had a production capacity of 0.95Mt and it uses a wet process production line. The site dates back to 1919 and the age of its equipment may have contributed to the decision to idle the plant.


Chile: The Servicio de Evaluación Ambiental (SEA), the country’s environmental body, has approved the environmental impact assessment for a new 0.5Mt/yr grinding plant that Melón is planning to build in Punta Arenas. The unit will have an investment of US$45m, according to the Diario Financiero newspaper. Spain’s Cemengal will supply the mill for the project.


India/UK: The Global Cement and Concrete Association (GCCA) has launched GCCA India. As part of GCCA’s strategic partnership with the World Business Council on Sustainable Development the new office, based in Mumbai, will take over the work of the Cement Sustainability Initiative (CSI) India, which formerly served as the sector’s sustainability alliance.

GCCA India plans to ensure that, from a sustainability angle, innovation in technology and manufacture, and collaboration across the wider built environment, the Indian cement sector can play a key leadership role. It will develop a work program that will focus on the wider global GCCA priorities but with practical application across the Indian built environment.


Europe: Data from Eurosac shows that estimated paper sack deliveries for the cement sector in Europe grew slightly year-on-year to 0.18Mt in 2018. Growth for other building materials with the exception of cement grew faster at 1.8% to 0.23Mt. Paper sack deliveries from Eurosac members increased by 1.8% to 1.82 million units from 1.80 million units. Eurosac represents over three quarters of European paper sack producers operating in 20 countries.


Ghana: The Cement Manufacturers Association of Ghana (CMAG) is lobbying the government against a recent fumigation levy of US$0.50/t on imported clinker by the Ministry of Health. At a recent meeting the association discussed this tax and others negatively affected the cement sector, according to the Business and Financial Times newspaper. It is also unhappy about more longstanding charges, including a VAT restructuring levy of 5%, and a 2% special tax as well as a new 11% electricity tariff and a proposed increase in the cost of a certification licence from the Ghana Standards Authority and impending. CMAG is also complaining to the Customs Division of the Ghana Revenue Authority about imports.


Egypt: Suez Cement has launched its ‘Primo’ customer loyalty scheme. It is intended to strengthen communication with its clients and build the cement producer market position. Existing customers will be offered benefits, including a loyalty points system that can be redeemed from shopping coupons.


Germany/UK: The Global Cement and Concrete Association (GCCA) and the European Cement Research Academy (ECRA) have announced a formal partnership agreement. The strategic alliance is aimed at fostering innovation in the cement and concrete sectors and across their value chain partners.

Under the terms of the agreement, the GCCA and ECRA have granted each other mutual membership in order to aid collaboration. In addition, ECRA’s managing director will join the GCCA’s Partnership Council and the GCCA’s cement director will join ECRA’s Technical Advisory Council. The two parties will share their current work programs and identify key areas for future collaboration and input.

“ECRA’s mission to advance innovation in the cement industry within the context of sustainable development, as well as communicating key knowledge and research findings in technology, fits perfectly with the GCCA’s aim of driving advances in sustainable construction,” said Benjamin Sporton, the chief executive officer (CEO) of the GCCA.


Kenya: Mombasa Cement has ordered a MVR 3750 C-4 type vertical roller mill from Germany’s Gebr. Pfeiffer. It will be used to grind cement on the second production line it is building at its integrated Vipingo plant. The mill has a drive power of 2900kW to produce 150t/hr of Ordinary Portland Cement (OPC). Delivery will be coordinated between Gebr. Pfeiffer’s Indian subsidiary and its headquarters in Kaiserslautern, Germany. No value for the order has been disclosed.

The cement producer has previously ordered two cement mills from Gebr. Pfeiffer. In January 2016 it ordered a type MVR 3750 C-4 vertical mill for the Tororo plant in Uganda. In June 2016 it ordered a Ready2Grind type MVR 1800 C-4 mill for its Vipingo plant. The latest order at Vipingo has the same design as the mill in Uganda.


Kenya: Data from the Kenya Bureau of Statistics shows that cement production fell by 6% year-on-year to 1.46Mt in the first quarter of 2019 from 1.55Mt in the same period in 2018. Cement consumption dropped by 3% to 1.46Mt from 1.50Mt. Cement consumption previously grew by 2.8% year-on-year to 5.9Mt in 2018 from 5.8Mt in 2017. However, production fell by 2.6% to 6.07Mt from 6.23Mt. Imports increased by around 50% to 23,000t but exports decreased by 63% to 0.14Mt from 0.39Mt, mainly due to a major drop in deliveries to Uganda and Tanzania.


South Africa: PPC says it plans to shut the kiln at its Port Elizabeth cement plant ahead of stricter requirements to the country’s emission standards. It is shutting down the kiln to meet new standards for NO2 and dust emissions on 1 April 2020, according to Reuters. Around 30 jobs are expected to be affected by the shutdown.

The cement producer’s revenue rose slightly year-on-year to US$736m in its financial year to 31 March 2019. Its profit nearly quadrupled to US$10.2m. Its cement sales volumes also rose slightly to 5.9Mt. Sales and earnings fell in South Africa due to a poor market but they grew elsewhere in Sub-Saharan Africa, notably in Rwanda and the Democratic Republic of Congo.


Pakistan: The All Pakistan Cement Dealers Association has suspended sales of cement in protest against ‘unjustifiable’ taxes. Asif Saeed, the president of the association, has accused the government and the Federal Board of Revenue (FBR) of levying ‘numerous’ taxes on the cement sector, according to the Business Recorder newspaper. He claimed that the association’s members will remain on strike until their demands are met.


Russia: The Akkermann cement brand has entered the Perm market. The Gornozavodskcement Plant near Perm has started producing cement products under the brand name, according to the Pro Perm website. 400, 500 and 600 strength products will be available in bags and CEM I 42.5N and CEM II / A-W 32.5B products will be available in bulk. The Akkermann brand is part of the South Ural Mining & Processing Company, which operates an integrated cement plant at Orenburg.


Japan: Taiheiyo Cement has set an 80% CO2 reduction target from cement production by 2050. It also plans to reduce its emissions from cement products by 20%. It aims to do this via a variety of means including energy-saving measures, promoting co-processing, lowering the clinker factor of its cement and CO2 capture technology. The cement producer started a pilot of a chemical absorption method on kiln exhaust gases at its Fujiwara plant in early 2019.


Bangladesh: Shahab Uddin, the Minister for Environment, Forest and Climate Change, says that five cement plants near the Sundarbans mangrove forest region have been granted environmental clearance certification. The plants are Meghna Cement Mills, Bashundhara Cement Mills, Mongla Cement Mills, Dubai-Bangla Cement Mills and Holcim (Bangladesh), according to the New Nation newspaper. Uddin said that the units were all at least 6km away from the Sundarbans reserved forest area and that the Department of Environment was monitoring their emissions on a regular basis. In 1995 the government declared a 10km area around the Sundarbans Reserve Forest as a ‘critical’ ecological zone.


India: Minister Piyush Goyal, the Commerce and Industry Minister, has confirmed that the Competition Commission of India looking into complaints of rising cement prices. He said that complaints on the had been received about the price of cement and allegations of cartel-like behaviour, according to the New Indian Express newspaper.


US: Researchers from CalPortland have published a peer-reviewed study looking at the absorption or carbonation of CO2 by buildings, pavements and structures made from concrete. The authors argue that this negative effect on CO2 emissions is not being considered in global, national and regional greenhouse gas accounting methods. The paper calls for focused studies on CO2 uptake in concrete within the context of its overall Life Cycle Assessment (LCA).

“It is time to further examine the value of concrete in the built environment as a significant carbon sink,” said Allen Hamblen, president and chief executive officer (CEO) of CalPortland. “To do so accurately, we must specifically look at the net effects of CO2 sequestration in concrete and evaluate all structures over their lifetime within a circular economy.”

The study looks at previous attempts to quantify the effect of concrete carbonation, notably using work by the Swedish Environmental Research Institute (SERI) that examined data from several European countries to develop practical models to gauge the extent of CO2 uptake by concrete globally in the built environment. Different models estimated that 15 - 20% of CO2 emissions from clinker production were reabsorbed over the lifetime of concrete structures.


France: HeidelbergCement France has finalised the acquisition of Cemex’s Centre region aggregates and ready-mixed concrete businesses. The acquisition includes seven aggregate quarries and 28 ready-mixed concrete plants. The acquired aggregates reserves and resources amount to about 25Mt. HeidelbergCement France will fully integrate the operations into its own network.

“With this acquisition, we strengthen our vertically integrated market position in central France,” said Bernd Scheifele, chairman of the managing board of HeidelbergCement. “The operations fit very well into our existing network of aggregates and ready-mixed concrete plants in the Paris region, and we expect significant synergies.”


UK: Hanson has been part of a new continuous concrete pour record in the UK as part of its work at the EDF Energy’s Hinkley Point C (HPC) new nuclear power station in Somerset. It supplied raw materials for the concrete to main civil engineering contractor BYLOR, which operates the on-site concrete production plant. The 9000m3, five-day, pour was to construct the last of five reinforced concrete segments that make up the cross-shaped foundations on which all of the first nuclear reactor’s buildings will sit. The record-breaking pour beats the previous UK record set by the Shard skyscraper in London.

The completion of the foundation platform, which is up to 4m thick, represents a significant milestone for the project, described by EDF Energy as J-zero. It marks the transition from below ground activity to the construction of permanent reactor buildings above ground.

Hanson says that mix design for HPC took three years of development and testing to ensure that the concrete was of the required quality mandated by the Office for Nuclear Regulation. The subsidiary of Germany’s HeidelbergCement has 65 employees directly involved in the HPC project team. To date Hanson has supplied 51,000m3 of concrete, 2.5Mt of aggregates, 210,000t of marine sand, 65,000t of cement; 105,000t of ground granulated blast furnace slag (GGBS) and 125,000t of asphalt.


India: Credit rating agency ICRA expects that cement demand growth will fall to 7% year-on-year in the first quarter of the 2019 – 2020 financial year from 13% in the previous year. It has blamed this on a slowdown in infrastructure projects due to the general election and resulting labour shortages. However, higher cement prices and lower input costs - including power, fuel and distribution expenses – are forecast to improve profits. Cement consumption is predicted to increase in the third quarter due to housing demand and pickup in infrastructure schemes.

The agency also said that around 18 – 20Mt/yr of cement production capacity would be added in the 2019 – 2020 year. This will be from a variety of integrated and grinding projects. This is below the projected demand growth of 24Mt/yr but overall sector production overcapacity is expected to continue at around 71%.


India: UltraTech Cement is in talks to buy a stake in Emami Cement for up to U$800m. Sources quoted by the Economic Times newspaper say that UltraTech Cement is working with private equity companies, including KKR and Temasek Holdings, on the potential deal. Emami Group is reportedly still deciding whether to sell its entire cement business, a stake or selected assets.

Emami Cement operates a 2.5Mt/yr integrated plant at Risda in Chhattisgarh and a 2.5Mt/yr grinding plant at Panagarh in West Bengal. It acquired a 0.6Mt/yr grinding plant at Bhabua, Bihar in September 2018. In addition, the firm has mining assets in Guntur in Andhra Pradesh and near Jaipur in Rajasthan. Its main markets are in West Bengal, Chhattisgarh, Odisha, Jharkhand, Bihar, Maharashtra and Madhya Pradesh. It markets its products under the Double Bull brand.


Cameroon: Ciments de l'Afrique (CIMAF) has agreed with the Cameroon Investment Promotion Agency (CIPA) to invest US$33m in its integrated plant at Douala. The subsidiary of Morocco’s Addoha Group plans to triple the plant’s production capacity to 1.5Mt/yr, according to Business in Cameroon magazine. The unit was originally commissioned in 2014.


US: Charah Solutions plans to open a grinding plant to make supplementary cementitious materials (SCM) from natural pozzolan at Oxnard in California. The unit will be accessible by truck and railway. It will sell pozzolan and other materials to concrete product manufacturers throughout south California.

The Oxnard plant will be operated in partnership with Diversified Minerals, a supplier and manufacturer of standard and custom blend cement and concrete products. It will receive natural pozzolan by truck and rail and then grind pozzolan marketed under the brand MultiPozz pozzolan. MultiPozz pozzolan will be distributed throughout Charah Solutions’ MultiSource materials network of more than 40 nationwide in the US with international sourcing and distribution.

“Fly ash is becoming more difficult to source in California, which is forcing the construction industry to look for viable alternatives. Natural pozzolan and other SCMs that meet ASTM specifications are generating very high interest. With Charah Solutions’ resources and DMI’s strategic partnership with the only active pozzolan mine in Southern California, we are both the closest and the first to bring these products to market,” said Jim Price, chief executive officer (CEO) of Diversified Minerals.


Russia: Vostokcement Group has warned both federal and regional government that its on-going legal troubles will delay infrastructure projects in the Far East district, including the Zvezda shipyard, Vostochny Port coal terminal, Sila Sibiri gas pipe and a bridge over the River Amur. It said it also might be unable to pay up to 5000 workers. The cement producer previously said that office of the Prosecutor General of Russia had seized the financial accounts at Spasskcement, Teploozersk Cement and other subsidiaries in relation to a civil legal case where the defendants are trying to recover Euro44.5m.


Poland: FLSmidth MAAG Gear has successfully tested a MPU/274G type gear unit at its Elblag production plant. The product is intended for JK Cement’s new cement grinding plant in Aligarh, Uttar Pradesh. Shipping is scheduled for late June 2019. No value for the order has been disclosed.


China: Huaxin Cement emitted 1.4Mt of CO2 equivalent in 2018. About 60% of this came from process emissions from making clinker and about 30% came from burning fossil fuels. Additional emissions arose from electrical consumption.

The cement producer says that it implemented a variety of emission control and sustainability initiatives in 2018. These included improving its energy saving management, rollout of waste-heat recovery systems and other plant upgrades. It is also promoting so-called ‘green’ products. In January 2019 its Huaxin Fortune brand 42.5R grade Ordinary Portland Cement obtained low carbon product certification from the China Quality Certification Center.


South Africa: Sephaku Cement estimates it will have to pay up to US$2.8m/yr as part of South Africa’s new carbon tax. The new tax started in June 2019. The subsidiary of Nigeria’s Dangote Cement said that it would apply the tax on its products based on the proportion of clinker per tonne. This would work out at between a 1.5% and 2.5% price increases on lower strength and high strength cement respectively.

In a financial report to 31 March 2019 the cement producer said that its cement sales volumes fell by 6.4% year-on-year due to low cement demand was exacerbated by increases in value added tax (VAT) and fuel prices during the first and last quarter of its financial year. Its sales revenue fell by 3.1% to US$162m and its net profit rose to US$9.08m but only due to a tax credit.


Saudi Arabia: Denmark’s FLSmidth has revealed that it is working on a project to convert a grey cement production line at Alsafwa Cement to a dual-white and grey line. The modified kiln is expected to be commissioned in early 2020. The production objectives are to produce a minimum of 2000t/day white clinker with a maximum heat consumption of 1380kcal/kg clinker. No value for the project has been disclosed.

FLSmidth plans to install its Duoflex Burner inside the kiln. To minimise costs it says that only minor changes will be made to the current preheater with as much existing equipment as possible being reused. In this case, the oil handling equipment, clinker cooler, raw material storage system and raw mill grinding equipment will be reused.


Colombia: Cemex Colombia has been accused by the news division of Caracol Televisión of allegedly making payments to the Juan Manuel Santos presidential campaign in 2014 in return for preferential treatment on construction contracts. Santos subsequently won the 2014 presidential election and served until 2018.

Sources, quoted by Noticias Caracol from a US police investigation into the company, say that it paid US$1m in cash and contributed cement to local candidates. They say that the local candidates then sold the donated cement at a discount for additional campaign funds. The Office of the Attorney General of Colombia is also investigating the matter. The report by Noticias Caracol follows an expose by Semana magazine.


US: ABB has launched its Dodge Safety Mount spherical roller bearings product with a built-in patented locking mechanism. It says that this new feature can reduce installation time by up to 75% compared to traditional products. It is mounted by tightening fasteners, instead of using a hammer and other tools. The new system also allows for simple installation and removal from the same side of the bearing. The new bearing is intended for bulk material and air handling applications.

Safety Mount bearings feature a triple-lip contact seal and corrosion-resistant flinger sealing system, which prevents contamination from entering the product during installation and operation. A labyrinth seal option is available for high-speed and high-temperature applications. The product can also be used with ABB Ability Smart Sensor.