Global Cement Newsletter

Issue: GCW487 / 06 January 2021

Headlines


One of the last news stories we covered before the Christmas break was that Lafarge Poland had selected China-based Nanjing Kisen International Engineering as the general contractor for a Euro100m-plus upgrade to its Małogoszcz cement plant. This appears to be the first major European cement plant upgrade project to be publicly run by a Chinese contractor. There may be other European projects in the sector run by Chinese companies ‘on the down-low.’

If it is the first then this is a significant milestone for the growth of the Chinese industry. It is a noteworthy first for Nanjing Kisen in the European Union. Europe is the home, after all, of a number of locally-based contractors and companies that can build or upgrade cement plants including FLSmidth, Fives, ThyssenKrupp, IKN and others. Indeed, all of the work on this project might actually be conducted by local companies, selected by the general contractor. For example, Lafarge Poland says that the general contractor will select a subcontractor on the Polish market.

It’s easy to fall into jingoistic nostalgia but should we really be surprised that China can competitively build cement plants given the ferocious growth of its own industry over the last few decades? Arguments by Western critics against growing Chinese dominance in industry have tended to home in on excuses why they might be ‘cheating’ such as intellectual property theft, unfair state aid or the use of low-cost infrastructure loans to countries along its Belt and Road Initiative. That last one carries some irony given that not so long ago discussions about developing world debt were framed in the context of the Cold War and the oil crisis in the 1970s. Western countries were seen as the bogeymen depending on one’s political outlook. With this in mind, the Financial Times recently reported on data released in December 2020 that suggested that China might be heading into its own overseas debt crisis. The takeaway message here is that attempting to apply China’s whopping infrastructure boom elsewhere might not work so well without the same level of control. Exporting production overcapacity abroad may simply turn out to be something like a giant Ponzi scheme! For the cement industry this may mean a pause or wind-down in the number of new plants backed by Chinese money, often with Chinese contractors tied in, and that the rise of Chinese engineering firms might not seem as unassailable as all that after all.

This leads into another noteworthy story that we also published before Christmas on China’s latest proposal to further reduce production capacity at home. The Ministry of Industry and Information Technology (MIIT) wants to tighten the ratio of production capacity that has to be closed before new capacity can be built from 1.25:1 to 1.5:1. The kicker is that the new rules also include a clause intended to restrict the use of so-called ‘zombie’ capacity in the swapping process by limiting eligibility to productions lines that have been operated for two or more consecutive years since 2013. These rules seem targeted at the present day but they could potentially push Chinese cement production capacity per capita to rates more similar to those found in developed economies elsewhere (i.e. halve existing Chinese production capacity). Many of the country’s kilns were built in the early 2000s and the average lifespan of a clinker kiln is 50 years. This suggests that the ministry is thinking seriously about culling capacity by the administration’s carbon neutrality target of 2060.

Chinese penetration in the European cement plant market is more of an after-thought given the pace of projects in Asia and Africa over the last decade and the maturity of the sector. It can also be misleading given that some very-European-sounding engineering companies are actually owned by Chinese concerns. Yet no doubt local contractors and suppliers would like to keep any business they can. On the other hand, more market share may be found in Europe over the coming decades from retrofitting CO2 mitigating equipment or building the anticipated hydrogen revolution once the regulatory and financial framework starts to favour it. Or maybe shifts to service and/or machine intelligence-style packages are the way forward. Nanjing Kisen may be the first Chinese company to upgrade a European cement plant but the market focus may quickly move on. Time will tell.

Answers by email for when readers think the first cement plant or production line in the US will be built by a Chinese company.

Happy New Year from Global Cement


Egypt: Cement Engineering and consultancy company ASEC has appointed Ashraf El-Kahky as its managing director. It follows the retirement of Khaled El-Sebaie, who has been in post for eight years. El-Sebaie will continue to work for the company as a technical consultant.

El-Kahky joined ASEC Group as the Group Chief Financial Officer in September 2019. He brings over 30 years of experience from roles in financial management, risk management, strategic planning and restructuring, having previously held leading roles in several national and multinational organisations.


UK: The World Cement Association has appointed Roland van Wijnen, the chief executive officer (CEO) of PPC, and Mahendra Singhi, the managing director and CEO of Dalmia Cement, as directors. The appointments were agreed in a vote at the WCA General Assembly Meeting in December 2020.

Singhi has worked in India’s cement sector for over 40 years. He leads Dalmia Cement (Bharat), a large Indian cement producer recognised as having one of the lowest carbon footprints in the world.
Van Wijnen brings more than 20 years of international CEO and consulting experience encompassing operations management, strategy planning and execution, business process re-engineering and people management and development. Prior to his role as CEO at PPC, a large African cement producer, he worked at LafargeHolcim for 17 years, during which time he held various senior leadership roles across the group.


Nepal: Udayapur Cement has appointed Gopi Neupane as its director general. He holds experience in the hydro-electric, health and education sectors, according to Khabarhub. The state-owned cement producer markets the ‘Gaida Cement’ brand.


India: LafargeHolcim subsidiary ACC has commissioned a new 1.4Mt/yr unit at its Sindri cement grinding plant in Jharkhand. The plant now commands a total grinding capacity of 4.4Mt/yr. The company began work on the expansion in December 2019 in order to strengthen its presence in the Eastern region. It said that the state government and local authorities aided smooth commissioning.

LafargeHolcim India chief executive officer (CEO) and non-executive director ACC Limited Neeraj Akhoury said, "Strong ambition aimed at deliverance of high performance is what guided ACC to establish the commissioning of the Sindri GU-Phase-II within a record period.” He added, “I am proud of the flexibility and agility demonstrated by the team."

ACC managing director and chief executive officer (CEO) Sridhar Balakrishnan said, “The commitment, meticulous planning and collaborative approach by the Project Sindri team in these unprecedented times and commencing the cement production in a record time have set a new benchmark for ACC.”


US: A US court has fined Argos USA US$20m for violations of antitrust rules between 2011 and 2016 with regards to the ready-mixed concrete market. The subsidiary of Columbia-based Cementos Argos subsidiary has admitted to collusion with another ready-mix producer. The US Department of Justice says that the companies coordinated price rises, submitted collusive non-competitive bids to customers, allocated markets in Southern Georgia and elsewhere and charged fuel surcharges and environmental fees.

Argos says the conspiracy was committed by, “a small number of former employees of a small, local sales office” that joined Argos when it acquired another company, according to Reuters. It added that its management “did not participate in or condone the conduct, which was undertaken in contravention of company compliance policies.”


Morocco: Bab Sahara Company is building a new cement plant in Guelmim, Guelmim-Oued Noun. Le Desk has reported that the company is a joint venture between three private investors, including Tarfaya City Council Chair Abdelhay Hartoun. An environmental impact study for the project was started in late December 2020 by the Ministry of the Interior.


Paraguay: Cementos Concepción (Cecon) says that its new 1Mt/yr integrated Concepción cement plant in San Lazaro will start commissioning in June 2022. Regular production is expected to start in August 2022. The Hoy newspaper reports that the project recently secured the last phase of its funding. It has a total investment of US$240m.


Argentina: Holcim Argentina has confirmed that it will stop milling activity at its Yocsina cement grinding plant in Córdoba province at the end of March 2021. The decision is part of a move to unify all cement grinding in the region at its integrated Malagueño plant, according to Agência CMA. The latter unit is currently being upgraded with start-up scheduled for the first quarter of 2021.


Trinidad & Tobago: Rock Hard Cement says it will close during January 2021 in Trinidad due to alleged changes in government tariffs on imported cement. It hopes to reopen In February 2021, according to the Trinidad & Tobago Guardian newspaper. The company has published advertisements in local media warning of potential price rises of up to 80% in 2021. As well as changes to import costs the cement importer claims that the quantity of imported cement will be restricted to 75,000t/yr. The Ministry of Trade and Industry said it couldn’t comment on the matter as it is currently undergoing legal proceedings.


Dominican Republic: The Dominican Association of Portland Cement Producers (ADOCEM) estimates that local production fell by 8% year-on-year in 2020 due to the coronavirus pandemic. Julissa Báez, the executive director of ADOCEM, said this compared to a 16% drop in the construction industry generally, according to local media. She added that local cement plants were allowed to continue production during a local lockdown that started in March 2020.


Saudi Arabia: The Ministry of Transport has granted Najran Cement a licence to launch its own limited liability transportation company. Reuters News has reported that the company is in the process of obtaining the final licence for the launch.


Oman: The Consumer Protection Authority (CPA) has intervened to suspend operations at a cement producing facility in Al Dhahirah Governorate. The Times of Oman has reported that the suspension results from repeated complaints to the CPA’s consumer protection department about product quality. The operation is also suspended from selling its goods.


Nigeria: BUA Cement and Dangote have signed an agreement with the government to supply cement at a discounted rate for the construction of 300,000 homes under the government’s Mass Housing Programme, according to The Sun newspaper.

Vice President Yemi Osinbajo said that the producers have agreed to provide cement for this project at a ‘considerable’ discount, which he described as ‘very helpful.’ He added, “Also important is the job creation aspect of it. You have young men and women who are builders, architects and civil engineers working on this project. We are hoping that a lot of the other building materials will be made locally.”


Nigeria: BUA Cement has successfully concluded a US$290m Series 1 fixed-rate senior unsecured bond issue. The Punch newspaper has reported that the company utilised US$290m of its US$505m maiden bond issue in line with regulatory guidelines. It was nonetheless oversubscribed by nearly US$350m. The group said that it will apply to dual-list the bond on the relevant exchanges, subject to necessary approvals.


Nigeria: The Standards Organisation of Nigeria (SON) has awarded Mandatory Conformity Assessment Programme product quality certificates to Lafarge Africa. The certificates were presented after the company’s Mfamosing cement plant met confirmatory and standardisation requirements set by the SON, according to the Punch newspaper. The subsidiary of Switzerland-based LafargeHolcim said that the certifications further demonstrated its commitment to ensuring quality assurance and compliance with the relevant product standards within the regulatory framework of the government. The certification process followed a series of inspections and connected analysis.


India: UltraTech Cement has raised around US$137m through unsecured redeemable non-convertible debentures (NCD). It has allotted 10,000 NCDs, each worth US$13,700, by private placement. The NCDs will reach maturity on 29 December 2023.


India: Dalmia Cement (Bharat), plans to spend around US$50m on a 2.3Mt/yr upgrade to its Bengal Cement Works plant in West Midnapore. The project will increase the unit’s production capacity to 4Mt/yr. The company says that it will make the cement plant the biggest in the state of West Bengal. It intends to take advantage of expected growth in cement demand, following the coronavirus-related slowdown, due to affordable housing schemes, real estate and infrastructure projects.

“We have deployed the latest machinery and technology for this addition and will be producing only 100% blended cement so as to ensure reduced carbon footprint as part of our commitment to become carbon negative by 2040,” said Ujjwal Batria, chief operating officer (COO) of Dalmia Cement (Bharat).


India: The board of directors of NCL Industries has approved plans for the establishment of two ready-mix plants at a cost of around US$0.8m. The plants will be located in Hyderabad, Telangana and Visakhapatnam, Andhra Pradesh. Both projects are scheduled for completion in early 2021. The units will be financed by bank loan.


Bangladesh: The Bangladesh Cement Manufacturers Association (BCMA) has called on the state-owned Bangladesh Bank (BB) to extend an ongoing moratorium period on the payment of loan instalments by another six months to mid-2021 in response to the negative economic effects of the coronavirus pandemic. The original loan window was schedule to end on 31 December 2020, according to the Dhaka Tribune newspaper. The association has also called for a fixed lending rate for non-government lenders due to rising costs. Local cement sales fell by 13% year-on-year in the five months from January to May 2020 due to a coronavirus-related lockdown that ended in late May 2020.


Georgia: Georgia imported 296,000t cement from Azerbaijan from January to October 2020, a decline of 20.2% year-on-year. Data from the Georgian National Statistics Office (Geostat) and the Trend News Agency also shows that cement imports for this period cost US$14.5m.


China: Companies increased total cement production in the first 11 months of 2020 by 1% year-on-year to 2.16Bnt from 2.14Bnt in the first 11 months of 2019. Xinhua News Agency has reported that estimated total building materials sector operating revenues rose by 1% to US$700bn. The sector’s estimated profit for the period rose by 3% to US$61.9bn.


Pakistan: The government has extended its construction industry fixed tax regime by a further year until 31 December 2021. In a live address to the country, Prime Minister Imran Khan said that the move was in response to ‘big’ demand from the sector, according to the Dawn newspaper. Other incentives unveiled during the broadcast included an exemption for builders from disclosing sources of income to tax authorities until 30 June 2021. The measures follow the government’s introduction of the foreclosure law, under which banks are aiming to allocate US$2.36bn towards house building until 31 December 2021. Khan called 2021 a ‘year of growth.’


France: Vicat started using a CO2ntainer system supplied by UK-based Carbon8 Systems at its Montalieu-Vercieu cement plant in November 2020. It uses captured CO2 from the unit’s flue gas emissions to carbonate cement-plant dust and produce aggregate, which can then be used to make products such as concrete. The system has particular relevance for a plant burning alternative fuels due to the additional chlorinated dust created compared to the use of conventional fossil fuels. The company says it is the first European cement producer to use the process at an industrial scale. Previously, Carbon8 Systems said that its CO2ntainer would process and convert up to 12,000t of cement bypass dust in its first phase of operation.

Vicat Group scientific director Laury Barnes-Davin said, “We were drawn to Carbon8 Systems’ two-part technology: capturing the CO2 that Montalieu emits, and using it to produce an aggregate that can be marketed in the construction industry. It opens up great potential for our operations not just in France but also in all the countries where we work across the globe.” The group hopes to reach a 100% alternative fuel substitution rate in France by 2024.


Barbados: A worker has died following an accident at Arawak Cement plant in St Lucy. Two employees suffered burns whilst they attempted to fix a blockage at the unit, according to the Caribbean News Agency (CANA). An investigation into the incident is ongoing.


Mexico: Cementos Moctezuma is installing a 10MW solar power plant at its San Luis Potosí cement plant. Forbes Mexico has reported the estimated cost of the project as US$10m. It will consist of between 32,000 and 33,000 panels.

The company said, "The energy generated will be used at the Cerritos de Cementos Moctezuma plant, in order to replace a percentage of the electricity purchased from the Federal Electricity Commission (CFE), which is produced with fossil fuels and emits greenhouse gases.” It added that it aims to generate economic savings in the medium term as well as following its sustainability policies.


Germany: France-based REEL has agreed to acquire handling and lifting systems specialist Möller (also known as FLSmidth Hamburg GmbH) from Denmark-based FLSmidth for an undisclosed amount. The company employs 60 people and has reported sales of Euro400m/yr.

FLSmidth Cement President Carsten Riisberg Lund said, “The sale of Möller is part of an on-going process aimed at reshaping FLSmidth’s cement division. Consistent with the corporate strategy we announced earlier this year, we are pursuing a more focused cement portfolio. The new owner has a strong focus on the aluminium and related sectors and is therefore a natural fit for Möller’s future.”


Philippines: Holcim Philippines has partnered with mixed-martial arts organization ONE Championship and its heavyweight world champion, Brandon ‘The Truth’ Vera, for a marketing campaign. The ‘Built to Excel’ campaign will feature Vera highlighting the similarities of his path to being a champion with Holcim Philippines’ journey in establishing itself as, ‘the leading building solutions provider in the country.’ The campaign will highlight Holcim Excel, the company’s general purpose cement brand which is set to celebrate its 20th anniversary in 2021. Holcim will primarily use social media for the campaign and produce materials for its trade partners nationwide.

Filipino-American Vera won the inaugural ONE Heavyweight World Championship in December 2015 and has held the title ever since.


France: Eqiom’s Rochefort cement plant has won the Safety Trophy from the French cement industry union (SFIC). The award recognises work to reduce all types of workplace accidents. The subsidiary of Ireland-based CRH also won a safety award for its Chelles terminal, recognising its connected approach to logistics management.


India: Jagatpur police have raided a counterfeit cement bagging facility in Jagatpur Industrial Estate, Cuttack. Odisha TV News has reported that the operation is suspected of using marble dust, small amounts of white cement and artificial colouring in the fake product. Large amounts of empty packaging from several different cement brands were recovered in the raid. The police made one arrest and seized a vehicle.


Pakistan: The Association of Builders and Developers (ABAD) has issued a statement warning of the dangers of recent cement price rises. The Balochistan Times newspaper has reported that the association called the rises disproportionate given the local availability of raw materials. It said that the increase would be reflected in the prices of housing units under the Naya Pakistan Housing Programme.

Prime Minister Imran Khan launched the scheme, alongside a financial support package, to revitalise the construction industry in the wake of the coronavirus outbreak.


US: Cemex USA has delivered grants via the Cemex Foundation to over 80 non-profit organisations so far in 2020 as part of its coronavirus relief efforts. The funds donated by Cemex USA employees have provided more than a quarter million meals to those facing food insecurity and overall have positively impacted more than 200,000 people in California, Nevada, Arizona, Colorado, Texas, Alabama, Tennessee, Pennsylvania, Georgia and Florida. The initiative also supplied more than 20,000 pieces of personal protective equipment (PPE) for medical staff and first responders.

“Covid-19 has created far-reaching impacts and unparalleled challenges, prompting thousands of families to request additional support for food and shelter while they continuously worry about the health and safety of themselves and their loved ones. At Cemex USA, we wanted to help our neighbours and communities during this unprecedented time,” said Cemex USA president Jaime Muguiro. “The help provided by non-profits right now is critical, and we are proud to be able to deliver significant support for their initiatives that are making a difference in our communities.”

Organisations that have benefited from the grants include: United Way of Central Alabama (UWCA) in Birmingham, Alabama; Feeding South Florida in Florida; Feed the Frontline Houston in Houston, Texas; Lyons Emergency Assistance Fund (LEAF) in Lyons, Colorado; House of Refuge in South Mesa, Arizona; and Heart of Los Angeles Youth (HOLA) in Los Angeles, California.


Philippines: The Tariff Commission (TC) has said that it was unaware of a Department of Trade and Industry (DTI) order imposing higher-than-scheduled duties on imports of cement. The Manila Bulletin newspaper has reported that TC commissioner Ernesto Albano said that it was legally ‘impossible’ for rates to rise above the previously scheduled US$0.19/bag. The DTI order in December 2020 set a duty of US$0.20/bag in the second year of the three-year tariff scheme. Albano said, "The DTI cannot do that. The schedule has been set.” He added, “The industry should improve so the duty should go down."

The Bureau of Customs (BOC) has implemented the new rate imposed by the DTI.


Romania: Holcim Romania and its subsidiary Somaco have donated around Euro0.95m to local hospitals to help buy equipment to manage the ongoing coronavirus pandemic. 20 hospitals in the counties of Alba, Arad, Argeș, Bihor, Buzău, Cluj, Dâmbovița, Iași, Neamț, Prahova, Timiș, Vrancea and Bucharest will benefit from the funds. It will be used to buy protective gear and medical equipment such as medical monitors, ventilators and fans. This latest donation follows one in April 2020 bringing Holcim Romania’s total to around Euro1.5m.


Italy: Federbeton, the Italian cement and concrete association, has called for a coordinated infrastructure investment plan to restart the national economy once the coronavirus crisis recedes. It has noted a halt to production not seen since the 1940s during the current crisis and a general reduction in cement consumption to 17Mt/yr from 47Mt/yr over the last decade, according to the Agenzia Nazionale Stampa Associata (ANSA). It is calling on a strategic plan for the sector to make any post-pandemic economic recovery as efficient as possible.


India: France-based Fives says that Ramco Cements has ordered a second FCB TSV 5500 BF type classifier for raw material mixing at a plant in Tamil Nadu. The order follows the commissioning of a similar classifier from Fives at the same site. The upgrade is part of an overhaul of the unit’s grinding equipment. No price for the order or commissioning date has been disclosed.


Spain: The Spanish cement association Oficemen has targeted a 43% emissions drop by 2030 across its entire value chain compared to 1990 levels. The objective has been published as part of the association’s sustainability roadmap to 2050. It is a tightening of the previous target of 27% by 2030. Oficemen intends to meet the tougher reduction by using the so-called 5C approach - clinker, cement, concrete, construction and built environment, and (re)carbonation – as detailed by Cembureau, the European Cement Association. Oficemen also revealed that it is working with the Spanish Technological Platform for CO2 (PTECO2) on identifying potential locations for storing captured CO2. Hugo Morán, Secretary of State for the Environment, participated remotely with the launch event.

Oficemen also reports that Spanish cement consumption fell by 12% year-on-year to 12.2Mt in the first 11 months of 2020. Exports declined by 5%.


Senegal: Aumund Group says that it is supplying conveying equipment to a new production line that will be built at Ciments du Sahel’s Kirene plant. The order package includes 23 bucket elevators, seven pan conveyors, eleven drag chain conveyors, two Samson material feeders, four Centrex silo discharge machines and 19 silo discharge gates. The machines will operate in all stages of the production process, from raw materials discharge to conveying between the clinker silo and the cement mill, and in the packing plant. Supply will be made in several tranches between March and June 2021. Commissioning is planned for the first quarter of 2022.

China-based Sinoma International Engineering and its subsidiary CBMI Construction are the main contractors for the project. Aumund France and Aumund China, with support from Aumund Foerdertechnik, are the main divisions of Aumund working on the upgrade.


US: HeidelbergCement is considering selling assets in California. Bloomberg News reports that it is working with Morgan Stanley on a potential divestment and it hopes to raise around US$1.5bn. It is reportedly approaching competitors including Martin Marietta Materials, Cemex, CRH, Summit Materials and LafargeHolcim, as well as companies in China and Latin America. The first bids are not expected until early 2021.

The Germany-based building materials company operates three integrated cement plants in California, as part of its Lehigh Hanson subsidiary, in addition to concrete and aggregates units. Divestment of these assets would focus the company instead on markets in the East Coast, Midwest and Canadian regions of North America.

In July 2020 HeidelbergCement announced that it had reduced its value of its assets by Euro3.4bn following a review. It blamed this on reduced demand for building materials due the coronavirus pandemic and the devaluation of its Hanson subsidiary in the UK, in part related to the UK’s exit from the European Union.


China: The Ministry of Industry and Information Technology (MIIT) has released tougher draft rules regulating how cement producers should decommission old production capacity before they build new capacity. Under the new guidelines cement companies must retire at least two tonnes of outdated capacity for each tonne of proposed new capacity in areas classified as environmentally sensitive, according to Caixin Global. Previously, the ratio was 1.5:1. In non-environmentally sensitive areas, at least 1.5 tonnes of obsolete capacity should be retired for every tonne of new capacity, an increase from the current ratio of 1.25:1.

The proposed rules are currently open for public comment. However, cement companies are reportedly hurrying to obtain approval for new capacity projects approved under the current, easier regulations. The Chinese Cement Association has commented that some of the newly proposed projects ‘challenge’ the effectiveness of the government’s intent with the new measures and it has recommended a ban on production swaps across regions. The new rules also include a clause intended to restrict the use of so-called ‘zombie’ capacity in the swapping process by limiting eligibility to productions lines that have been operated for two or more consecutive years since 2013. Such redundant capacity is reportedly mainly concentrated in northeast China, Inner Mongolia and Xinjiang. No date for the ratification of the new rules has been disclosed.


Nigeria: China-based Sinoma CBMI Construction has signed an agreement with BUA Cement to build three 3Mt/yr plants in Adamawa, Edo and Sokoto states respectively. When completed by the end of 2022, the projects will bring the producer’s installed capacity to 20Mt/yr, according to the Vanguard newspaper.

The deal is Nigeria’s largest ever single contract for the construction of cement plants. the project will cost US$1.05bn.


Poland: Lafarge Poland has chosen China-based Nanjing Kisen International Engineering as the general contractor for a Euro100m-plus upgrade to its Małogoszcz cement plant. The subsidiary of China Triumph International Engineering will deliver an engineering, procurement and construction (EPC) contract and it intends to select a local Polish subcontractor. This is the first project by the Chinese engineering company in Poland and the European Union.

The first works related to project started in October 2020. First clinker production from the upgrade is scheduled for December 2022 with overall commissioning planned for spring 2023. Part of the investment will be implemented in cooperation with the Krakow Technology Park as part of the Polish Investment Zone. LafargeHolcim says the upgrade project is part of its scheme to reduce its CO2 emissions by 55% by 2025 compared to 1990 levels.


Tajikistan: Cement producers recorded total production volumes of 3.95Mt in the first 11 months of 2020, up by under 1% year-on-year. Tajikistan Newsline has reported that in 2019 the country produced 4.2Mt of cement and exported 1.5Mt, worth US$68m. The country has an estimated production capacity of 4.7Mt/yr.


Ivory Coast: LafargeHolcim Côte d'Ivoire commissioned a new clinker discharge equipment at its Abidjan cement plant in June 2020. Aumund France supplied the equipment. It consists of a 75,000t-capacity silo, two Aumund KZB pan conveyors with ten gravity discharge gates, four Aumund GF belt conveyors and a dedusting system comprising five filters, as well as the complete electrics and automation package for the new discharge system. The supplier says that it also supervised installation and commissioning of the equipment.


Mexico: Police have received arrest warrants for three leaders of an alleged criminal network which stole 10,000t of cement from Cooperativa La Cruz Azul. The El Universal newspaper has reported that the accused stole the cement by running a parallel accounting system from within the company. They sold the stolen cement via the company Azul Concretos y Premezclados.


Turkey: Total cement exports raised nearly US$1bn in revenue in 2020. Tamer Saka, the chief executive officer (CEO) of Turk Cement, told the Anadolu Agency that the country exported 30Mt in 2020 making it the world’s second largest cement exporter. He added that the local sector has a production capacity of 100Mt/yr. "The sector has been selling cement to important big projects in the US and they prefer Turkey because of both price and quality,” said Saka.


Switzerland: The Federal Council has noted a report stating that, without extensions to raw material extraction licences, domestic cement production is set to decline by 36% from 2024. The Agence Télégraphique Suisse has reported that local producers are already restricted by limited legally available limestone and marl reserves. At present the local cement sector provides 86% of Switzerland’s 5Mt/yr domestic cement demand. The report by the Swiss Geological Survey states that acceptance of all proposed mining expansion projects in 2023 would delay the projected decline until the end of 2030.


Sri Lanka: Insee Cement has extended the concessionary rate for its Sanstha cement product for current and former Sri Lankan armed forces personnel. The Daily FT newspaper has reported that the company first launched the scheme in August 2020.

Insee Cement chairman Nandana Ekanayake said, "We are thrilled to be offering Sri Lanka's most loved homebuilding cement brand Sanstha to all armed forces personnel island-wide.” He continued, “It was important for us to show all servicemen - those active, retired or disabled - our appreciation, as a mark of respect and gratitude for the sacrifices they have made for us, especially during these difficult times."


Colombia: Mexico-based Cemex has increased its stake in subsidiary Cemex Latam Holdings to 93% from 73%. Citigroup Global Markets acted as advisor and Corredores Davivienda acted as intermediary broker for the offer.

The group said, “Through the offer, Cemex is simplifying and strengthening its overall capital structure by further consolidating its indirect interest in CLH.


Senegal: Ciments du Sahel has begun work to increase the cement production capacity of its Kirene cement plant to 6Mt/yr. Agence de Presse Sénégalaise has reported that the installation of a third line at the company’s 3.0Mt/yr plant will double the unit’s capacity when opened before the end of 2023.

Chief executive officer (CEO) Latfallah Layousse said, "We are now at a production capacity of 3Mt/yr of cement. Currently, we are starting our third line with a doubling of our production capacity in the next three years. The doubling of our production capacity will allow us, in the long term, to rise to a higher level and become one of the largest cement factories in the region."


Malawi: LafargeHolcim and UK-based development financier CDC Group have printed two buildings in Lilongwe. The partnership, called 14 Trees, built a demo building and a school over a period of two days. It used 3D printing specialist COBOD’s BOD2 3D printer. The supplier also provided training to construction workers on how to operate the equipment.

LafargeHolcim Middle East Africa regional head Miljan Gutovic said, “I am very excited about the work of our joint venture 14Trees, innovating in 3D printing technology to accelerate affordable and sustainable building, from homes to schools. This is a great example of our commitment to build for people and the planet. Starting in Malawi, we will deploy this technology across the broader region with projects already in the pipeline in Kenya and Zimbabwe.”


Azerbaijan: Cement producers produced 3.0Mt of cement in the first 11 months of 2020, down by 3% year-on-year from the same period in 2019. Ready-mix concrete production rose by 11%, according to the Trend News Agency. The total value of building products rose by 25% to US$389m.


Chile: Peru-based Unión Andina de Cementos (Unacem) has signed a contract with Inversiones Mel 20 Limitada and Spain-based Cementos La Unión for the acquisition of the latter’s Chilean subsidiary Cementos La Unión Chile. Diario Financiero News has reported that the company operates the 300,000t/yr San Antonio grinding plant and a concrete plant. The value of the deal is US$23m. The agreement is subject to approval by local regulators.


UK: Cemex subsidiary Cemex UK has concluded a deal with the Nottinghamshire Wildlife Trust for the sale of its Attenborough Nature Reserve near Nottingham. The trust received a Euro828m grant from Biffa Award towards the acquisition. The Site of Special Scientific Interest (SSSI) on the River Trent is home to over 1000 species including bitterns and otters. The former sand and gravel quarry became a nature reserve in the 1960s when it was opened by the broadcaster and natural historian David Attenborough.

Cemex Europe regional land development and permitting director Stephen Redwood said, “After more than half a century of partnership, we are enormously pleased to see the transfer of this amazing and award-winning site to the Trust being completed. To see Attenborough evolve into such an important nature reserve in such close proximity to major population centres has been most rewarding.” He continued, “Our partnership with the Trust - which has included the establishment of the impressive Visitor Centre with support from the company’s own Landfill Communities Fund - has been a major success and we look forward to the Trust taking ownership as the site moves on to the next phase in its development.”


Pakistan: A Competition Commission of Pakistan (CCP) enquiry committee has recommended that the commission take action against the All Pakistan Cement Manufacturers Association (APCMA). The Frontier Star newspaper has reported that the enquiry found evidence that APCMA members had formed collusive arrangements contrary to the prohibited agreements under the Competition Act.

The Pakistan Bureau of Statistics (PBS) recorded a cement price rise in Northern Pakistan in April 2020 and May 2020, and in major cities in northern Pakistan and southern Pakistan in June 2020 and July 2020. This occurred in spite of a reduction in demand in early 2020. As a result, the CCP launched a search and inspection of the APCMA head office and the office of its senior vice chairman, a cement company director, in September 2020.


Australia: Adbri subsidiary Cockburn Cement has approved a US$152m upgrade to its Kwinana grinding plant in Western Australia. It says the investment will consolidate the cement operations at its Kwinana site. At present clinker is transported by truck from the Kwinana Bulk Terminal to cement mills at both the Kwinana grinding plant and the company’s integrated plant at Munster. It will increase its production capacity to 1.5Mt/yr from 1.1Mt/yr at present. The project is expected to save the company US$15m/yr due to better energy, transport and maintenance efficiency when the plant is commissioned by mid-2023. The producer will fund the investment through existing debt facilities.

The upgrade project includes: a bulk materials conveyor linking the Kwinana Bulk Terminal (KBT) facility to a new 110,000t clinker storage shed, incorporating an automated reclaim system, to eliminate road transport and minimise clinker handling using mobile equipment; a slag feed system that will handle granulated blast furnace slag and additives such as gypsum and limestone; a ball mill circuit with the installation of two new cement mills capable of grinding slag and clinker; and a new 21,000t finished product storage, truck loading and weighbridge infrastructure for storage and despatch.


Argentina: 40 employees of China Nation Building Materials (CNBM) subsidiary Sinoma International Engineering have arrived at the site of Loma Negra’s upcoming L’Amalí cement plant in Olavarría. El Popular Medios News has reported that the engineers will complete work on the plant in time for commissioning in March 2021. The engineers caused a stir at the Ezeiza International Airport as they were dressed in protective clothing and masks unlike many other local travellers.


Argentina: Loma Negra has resumed operations at its Olavarría cement plant in Buenos Aires Province. Noticias Financieras News has reported that the company informed the Ministry of Labour that it had reached an agreement with the AOMA mining union. The union represents employees of limestone supplier Minerar, who demanded to be classed as cement workers for purposes of union representation and pay. Loma Negra accepted the strikers’ claims, and paid a total of US$24,000 in retroactive salary installations for the period October to December 2020.


Ireland/UK: Mannok says that it has undertaken extensive preparatory measures to help its operations continue smoothly when the Brexit transition period ends on 31 December 2020. While keeping operations unchanged, the group has formed new legal entities such as Mannok GB, which will deal with UK customers. The group acknowledged that prices would depend on the future tariff arrangement between the UK and the EU, but would remain in line with market pricing. It added that the same effects would impacts competitors, who import significant amounts of raw materials from Europe.

The group said that it has been working closely with suppliers for over 18 months to ensure the security of its supply chains. It sources almost all raw materials for cement production from its own reserves.

Chief financial officer Dara O’Reilly said, “A key priority for us in all of this was to ensure that the service we can provide to our customers in a post-Brexit environment is as seamless as possible. We’ve made the changes to our structures; we’ve made the changes to how we operate and as a result of that, regardless of the outcome of the Brexit negotiations, we’re ready.”


US: CalPortland has launched a new fleet of 24 compressed natural gas (CNG)-fuelled bulk hauler trucks. The company has also commissioned a CNG fuelling hub at its Oro Grande cement plant in California. Ozinga Energy installed the hub, which uses biogenic Redeem methane from organic and agricultural waste at its fast-fill station and 24 slow-fill stations. The producer says that Redeem will reduce CO2 emissions per tonne of fuel burned by at least 70%. It predicted a total greenhouse gas emissions reduction of 10,000t/yr.

President and chief executive officer (CEO) Allen Hamblen said, “By adding 24 cement bulk hauler trucks and a fuelling centre at our Oro Grande cement plant, CalPortland continues to demonstrate our on-going commitment to achieving zero emissions through environmental stewardship and lowering our carbon footprint within the communities where we operate.”