Global Cement Newsletter

Issue: GCW447 / 18 March 2020

Headlines


With events moving fast in Europe with regard to the on-going health crisis, here are a few threads to consider from the cement industry news this week.

Firstly, there have been two solar power stories over the last week in North America. Grupo Argos said that it had installed a 10.6MW solar power plant at Cementos Argos’ Piedras Azules cement plant in Comayagua. Then US-based Alamo Cement Company was reported to have signed a contract with Renergetica to build a solar power plant at its integrated plant in San Antonio, Texas. Global Cement has looked at this topic on and off over the years from the steady addition of photovoltaic (PV) solar plants around the world to supply electricity to cement plants to more ambitious plans such as research into using concentrated solar power to start powering creating clinker directly. These two latest PV stories follow projects in El Salvador and Cyprus so far this year. We’re not going to comment now on the overall progress the cement industry is making towards moving away from fossil fuels but the general trend is encouraging.

Next, there are on-going investments and upgrade projects being announced. Germany’s KHD revealed on 17 March 2020 that is building a new raw mill and pyroprocessing line for an ACC plant in India. FCT combustion recently announced that it has won a deal to supply Titan Cement in the US with an upgrade to a kiln line to natural gas. Buzzi Unicem’s SLK Cement in Russia has agreed to co-process solid municipal waste at its Sukholozhskcement plant. South Africa’s PPC has invested in a pneumatic offloading facility and a silo for its George Depot cement terminal in the Western Cape. These will have likely been agreed before the global coronavirus outbreak but they are reminders that some level of capital expenditure by cement companies is happening.

In China the Ministry of Industry and Information Technology (MIIT) said this week that the domestic cement sector’s net profit grew by 20% year-on-year to US$26.6bn in 2019. With this in mind the first quarter results for 2020 from cement producers in China will make essential reading for producers from elsewhere around the world wondering what to expect. However, a recent interview with the president of Huaxin Cement, a company based in Hubei province at the epicentre of the outbreak, revealed that despite the short term economic disruption from the quarantine the company was expecting a rapid economic rebound after April 2020 provided that there is a suitable government stewardship. He also mentioned the key role the company was playing in disposing of clinical waste. As such it was hoping for tax breaks to support continuing incineration and the advancement of co-processing in general.

Finally, also on the health crisis, many cement industry events have been cancelled or postponed as work practices change including those organised by Global Cement. We’re taking our events online in the short term as virtual conferences with opportunities for information exchange and networking. We encourage as many of you as possible to register.


Ireland: Ecocem Ireland has appointed Susan McGarry as its managing director. Previously she held a variety of roles with the company including the positions of European Sustainability Manager, Environmental Manager and Technical Development Manager. Prior to this she was a lecturer at the Technological University Dublin. McGarry trained as a civil engineer and holds a master’s degree in engineering management.


Germany: Siemens subsidiary Flender Group, which equips cement plants with mechanical drive systems, has announced the appointment of Andreas Evertz as its chief executive officer (CEO).

Evertz, who has been chief technical officer (CTO) and CEO of Walter and CEO of Schenck Process Group and was Flender Group wind gearbox segment Winergy managing director for 15 years, will assume the new position on 1 June 2020.
Flender Group Supervisory Board chairman Horst Kayser said, “With Andreas Evertz we have found a well-experienced CEO to succeed Stefan Tenbrock. Together with Dr Ulrich Stock as chief financial officer (CFO), he will continue the successful path of Flender.”


Germany: Beumer Group has appointed Christian Schneider as the director of People and Culture, its human resources department. A law graduate of the University of Hamburg he previously worked in human resources for Bauer Media followed by Schulke & Mayr, a subsidiary of Air Liquide Group, and for Air Liquide itself.


India: KHD’s subsidiaries Humboldt Wedag India and Humboldt Wedag have signed a deal with LafargeHolcim’s subsidiary ACC to build a new raw meal grinding unit and a pyroprocessing line for an existing cement plant. The contracts also include the supply and installation of the electrical and instrumentation package for the entire cement plant. The entire contract package is worth over Euro35m.


Italy: HeidelbergCement and its Italian subsidiary Italcementi are each donating Euro100,000 to the Ospedale Papa Giovanni XXIII in Bergamo. The region in Lombardy in Northern Italy has been markedly affected by the coronavirus outbreak with over 400 fatalities since February 2020. Italcementi’s headquarters is located in the city. Italcementi's managing director Roberto Callieri has also invited employees to support the hospital and other institutions.


Canada: Albarrie says that there has been no interruption in any provision of products to its customers. Its production capabilities are not affected by novel coronavirus and it is implementing travel restrictions and health guidelines in line with government and World Health Organisation (WHO) advice. Key features include heightening risk assessments for employees, improved workplace hygiene, bolstered information technology support to allow home working and the cancellation of all nonessential domestic and international travel. Albarrie produces textile products including filtration products used by the cement industry.


Mexico & Thailand: Cemex and Siam Cement have made changes to upcoming shareholder meetings in relation to the coronavirus outbreak. Mexico’s Cemex intends to reduce attendance at its general shareholders meeting in late March 2020 and introduce hygiene protocols. Thailand’s Siam Cement has postponed indefinitely its annual general meeting of shareholders scheduled for early April 2020. Its board of directors plan to set a new date when the “situation is resolved.”


All: Global Cement will continue to publish both Global Cement Magazine and Global Cement Weekly throughout the current coronavirus outbreak. Global Cement organises a number of cement-related conferences, and those in the remainder of the first half of the year have already been postponed to provide certainty for all participants. Each event (Global GypSupply, Global Slag and Global CemProcess) will instead take place as a virtual conference, with live Q&As and cyber-networking. Please see the respective event website for details.

Global Cement will continue to supply its customers with up-to-date and accurate information, the means to promote their businesses and the forum to make valuable business contacts. For commercial opportunities, please contact Paul Brown, paul.brown@propubs.com.


World: A number of cement industry events such as a conferences and trade fairs have been affected by the coronavirus epidemic. Here is a roundup of some of the major ones.

This list will be continuously updated (please email us with anything we may have missed)

IEEE-IAS/PCA Cement Industry Technical Conference (Las Vegas 19-23 April 2020 - Cancelled (next event is in Orlando, Florida, 23-27 May 2021)

CemTech Asia (Jakarta) 14-17 June - Postponed

Solids Dortmund, Germany - postponed to 24 - 25 June 2020

Hannover Fair, Germany - first postponed to 13 - 17 July 2020, then cancelled - now due on 23-24 June 2021

IFAT, Munich, Germany - postponed to 7 - 11 September 2020

International Powder & Bulk Solids, Chicago, US - postponed to 6 - 8 October 2020

Global Slag Conference & Exhibition, Vienna, Austria - postponed to 10 - 11 November 2020

interpack, Düsseldorf, Germany - postponed to 25 February - 3 March 2021

HILLHEAD Quarrying and Recycling Show - Postponed to 22 - 24 June 2021

Cementtech, Anhui, China - postponed - dates TBA

Global CemProcess Conference & Exhibition, Munich, Germany - postponed - dates TBA

Intercem Shipping Americas, Chicago, US – postponed – dates TBA (Intercem Americas 26-28 October in Miami going ahead)

LogiMAT, Stuttgart, Germany - cancelled. Next: 9-11 March 2021


Thailand: The coronavirus pandemic has caused Siam Cement Group (SCG) to postpone its initial public offering (IPO) for 30% of its packaging subsidiary SCG Packaging at a value of US$1.0bn, which was reportedly due to take place in early 2020. Reuters News has reported that the company has yet to set a new date for the IPO.


Chile: The board of directors of Grupo Hurtado Vicuña (GHV) subsidiary Cemento Polpaico, which operates the 2.3Mt/yr integrated Cerro Blanco plant in Santiago and two grinding plants, has voted in favour of a merger with fellow GHV subsidiary Cementos Bicentario (BSA), which operates three grinding plants in the country. The Diario Financiario newspaper has reported that GHV first mooted with merger with the affected parties in February 2018.


India: Representatives from Aditya Birla subsidiary UltraTech, Ramco Cements, India Cements, JSW Cement and KCP have met with Andhra Pradesh Chief Minister Jaganmohan Reddy and other state officials to negotiate the sale of their products to construction companies working on public projects ‘at lower prices.’ The Hindu newspaper has reported that the state forecasts a year-on-year rise in its annual cement consumption of 67%, to 30Mt in 2020 from 18Mt in 2019. India Cements’ vice chair and managing director Narendra Srinavasan said that all planned infrastructure projects ‘ought to be implemented in order to bail out the industry from the turmoil it has been undergoing.’


India: The Competition Commission of India (CCI) has fined Aditya Birla flagship company Grasim Industries US40.6m for anti-competitive practices, specifically for failing to disclose its discount policy as instructed by the CCI. Accord Fintech News has reported that cement accounts for almost 50% of Grasim Industries’ profit.


Azerbaijan: An unidentified sender has threatened executive board members of Switzerland-based LafargeHolcim subsidiary Holcim Azerbaijan and their families. Turan Information Agency has reported that an alleged assault was perpetrated against a non-Azerbaijani manager of the company. Holcim Azerbaijan said, “Apparently the transparent activity of our company interferes with the interest of criminal forces.” Law enforcement authorities have launched a full investigation.


US: Italy-based Buzzi-Unicem subsidiary Alamo Cement Company has signed a contract with Italy-based renewable power supply expert Renergetica for the construction of a solar power plant at its 1.1Mt/yr integrated Plant 1604 cement plant in San Antonio, Texas. Renewables Now News has reported that the plant will have a capacity of 10MW.


Morocco: Switzerland-based LafargeHolcim subsidiary LafargeHolcim Maroc has recorded a profit of Euro161m in 2019, up by 7.5% year-on-year from Euro149m in 2018. Its sales held steady at Euro744m. The company says that it ‘does not anticipate any significant change in market conditions’ in 2020. Its new Agadir-Souss grinding plant is scheduled to come online in 2020.


Oman: Al Madina Cement Company recorded a net profit of US$48.2m in 2019, up by 61% year-on-year from US$29.9m in 2018. Its sales rose by 54% to US$141m from US$91.9m in 2018.


US: The Environmental Protection Agency (EPA) has awarded Energy Star certification to Japan-based Taiheiyo Cement subsidiary CalPortland’s 1.3Mt/yr integrated Rillito plant for the eighth consecutive year for its superior energy performance compared with other plants of comparable capacity in the country. CalPortland president and CEO Allen Hamblen said, “We continue to demonstrate our commitment to environmental stewardship and ENERGY STAR while also reducing our energy costs through the hard work of our employees and our corporate energy management culture.”


China: The Ministry of Industry and Information Technology (MIIT) has reported net profit growth for the entire domestic cement sector of 20% year-on-year to US$26.6bn in 2019 from US$22.3bn in 2018. Total revenues reached US$144bn, representing an increase of 13% from US$128bn. Xinhua China Economic Information Service has reported that the MIIT attributed the profit growth to a reduction in overcapacity throughout the year due to supply-side structural reform.


Philippines: Cemex Holdings Philippines has announced that production of will continue as normal at all its plants in spite of the global coronavirus pandemic. Reuters has reported that the company has activated rapid response teams throughout operations to reduce the disease’s impacts. Cemex Holdings Philippines has said that there will be no material disruption in its ability to transport products or receive raw materials and equipment.


Mexico: A ship carrying cement from Cooperativa La Cruz Azul’s 2.2Mt/yr Oaxaca plant in Lagunas, Oaxaca state has sunk with 1500t of cement. Maritime Bulletin has reported that the Togo-registered vessel, Duban, had been delivering cement to Manzanillo, Colima state.


China: A cement plant in Xiamen, Fujian province, that was shut down under the China Cement Association’s overcapacity crackdown has found a new lease of life as luxury flats. Dezeen News has reported that the flats incorporates modern industry and the ancient Chinese village through minimalist use of cement to evoke physical stasis and calm.


Namibia: Ohorongo Cement – via the Ohorongo Otavi Community Trust – has donated US$59,800 to the Opuwo district hospital. Ohorongo Cement general manager Rudolf Coetzee sais, “This organisation supports various projects by means of financial and humanitarian means as well as through donation.”


US: FCT combustion has announced that it has won an engineering, procurement and construction (EPC) contract with Titan Cement for the upgrade of its 5000t/d kiln line to 100% natural gas firing. The upgrade consists of the installation of two new burners: a dual-fuel capability Gyro-Therm Mk3 and a back-up natural gas-firing Gyro-Therm Mk3. The company has said that it will also supply accessories, field instruments, burner management system (BMS) and valve train.


Honduras: Colombia-based Grupo Argos energy subsidiary Celsia has announced that it has installed a 10.6MW solar power plant at Cementos Argos’ 1.0Mt/yr integrated Piedras Azules cement plant in Comayagua. Renewables Now News has reported that the 32,000-panel plant on the roof of the Piedras Azules plant will generate 20% of its operating power needs. Celsia says that the solar plant, its first in Honduras, will reduce Cementos Argos’ annual CO2 emissions by 10,000t/yr.


Azerbaijan: Akkord Cement has indicated that it plans to produce 1.6Mt of cement and clinker at its Gazakh plant in Dash Salahli in 2020. This would represent a 33% year-on-year increase from 1.2Mt in 2019. In 2019, Akkord Cement exported 500t of clinker from the plant to Georgia. Trend News has reported that the company intends to also export clinker to Iran in 2020.


UK: Parliament has voted to grant Her Majesty's Treasury powers to implement a UK emissions trading scheme (ETS) in line with the Climate Change Act (2008). Accountancy Daily News has reported that the ETS will be linked to the EU ETS ‘if such is suited to both sides’ interests,’ but, if not, will be subject to an alternative pricing mechanism. The Treasury said that “in a standalone UK ETS, additional market stability mechanisms can be implemented.”


El Salvador: Holcim El Salvador has enlarged its partnership with the Environmental Fund of El Salvador (FonAES) to provide an environmental awareness education programme to 6000 pupils across six schools. The Noticias Financieras newspaper has reported that Holcim El Salvador will give a total of US$12,400 to the programme in 2020, up by 1.5% year-on-year from US$12,200 in 2019.


Russia: Italy-based Buzzi UniCem subsidiary SLK Cement has concluded an environmental agreement with the Sverdlovsk Oblast Ministry of Energy and Housing and Communal Services for the co-processing of solid municipal waste at its 1.0Mt/yr Sukholozhskcement plant. AMF Online News has reported that the transition, part of a nationwide government initiative called simply ‘Ecology,’ entails a modernisation of the kiln line, which the company says will be commissioned in 2023 or 2024. SLK Cement general director Andrei Immoreev said that alternative fuels use will not only increase production efficiency, but will also contribute to solving the environmental problems of the region.”


South Africa: PPC has reported that it has invested US$548,000 in the construction and installation of a pneumatic offloading facility including a 250t silo at its George Depot cement terminal in the Western Cape. The company said that this ‘allows the business to receive cement by rail, improving its turnaround to customers without compromising quality.’


Zimbabwe: Work has begun on a 43,000t/yr dry mortar production line at Lafarge Cement Zimbabwe’s 0.5Mt/yr Manresa plant in Harare. The plant, supplied by Turkey-based Varlik Industries, will increase the company’s mortar production capacity by 710% to 50,000t/yr from 7000t/yr. Lafarge Cement Zimbabwe chair Kumbirai Katsande said “The expansion project is three-pronged and will include doubling of cement capacity and tripling agricultural lime capacity as well as automation of the dry mortars plant.”


India: Cement Corporation of India has signed a memorandum of understanding with power supplier NHPC Limited in order to ‘address the cement requirement’ for the Dibang Multipurpose Project in Lower Dibang Valley district, Arunachal Pradesh. The project is aimed at the construction of a 2880MW hydroelectric power plant and gravity dam for flood control in the Dibang Valley.


Germany: Easyfairs Deutschland has announced that its Solids & Recycling-Technik Dortmund trade fair will not be taking place on 1 – 2 April 2020 due to the coronavirus pandemic. It has postponed the event to 24 – 25 June 2020, pursuant to a ‘general decree by the authorities,’ namely the City of Dortmund and the Ministry of Health of North Rhine Westphalia.

Easyfairs event director Sandrina Schempp told attendees, “Our team will actively contact you by telephone in the coming days regarding further procedures.”