Global Cement News

France: On 20 June 2013 France-based cement producer Vicat announced that it had begun 10 days of trials at its Créchy cement plant in Allier with the aim of producing a new, low-CO₂ type of cement known as ALPENAT®.

The trials, which aim to produce 10,000t of ALPENAT, are a first step towards full industrial production following years of research by Vicat into lower-CO₂ cements. It is claimed that ALPENAT has embodied CO₂ levels that are 30% lower than that of conventional cement.

While Vicat is currently keeping chemical and technical specifics out of the public domain, it reports that ALPENAT achieves its lower CO₂ emissions via two methods. It reports that it has: 1. Reduced the temperature required in the kiln and; 2. Reduced the levels of limestone included in the cement raw mix, which reduces the CO₂ released in the decarbonation step.

In addition to its good environmental credentials, ALPENAT is also presented by Vicat as a high-performance cement. It allows faster setting, an increase in resistance at seven and 28 days compared to OPC in the same strength class (42.5 or 52.5) and improved durability. It has already proven its strength over two years at the Vicat Montalieu cement plant, where a ramp for 100t dumper trucks has been constructed out of concrete made from ALPENAT.

Vicat says that the research that led to ALPENAT was made possible by its focus on research and development, mainly at its Isle d'Abeau laboratories.

The Vicat announcement about ALPENAT comes hot on the heels of trials conducted by Lafarge, which recently presented details of its Aether® cement clinker to the cement industry. This belite-based cement was featured in the May 2013 issue of Global Cement Magazine.

US: Texas Industries (TXI) has announced that its board of directors has named Tom Ransdell as its chairman of the board effective from 18 June 2013. Ransdell has been an independent director of TXI since 2005 and has many years of experience in the construction materials industry. Ransdell now fills the position of chairman created by the untimely death of Bob Rogers on 11 June 2013.

Rogers was the son of the founder of TXI, Ralph Rogers, and was CEO of the company from 1970 until 2004 when he retired. From 2004 until 11 June 2013 he served as chairman of the board of TXI.

TXI is the largest producer of cement in Texas and a major cement producer in California. TXI is also a major supplier of construction aggregate, ready-mix concrete and concrete products.

Lafarge's decision to expand in Zimbabwe adds to the mix in sub-Saharan Africa.

As we discussed in Global Cement Weekly #104, Dangote and PPC (formerly Pretoria Portland Cement) may be facing off as the biggest local cement producers in the region but the influence of the European-based producers should not be dismissed too readily. Investing US$200m over the next 10 years matches PPC's similarly sized investment announced in November 2012. According to Lafarge, the spend will help maintain the cement producer's market share in the country.

The other point of note from Lafarge's Zimbabwe announcement is the emphasis on the multinational's 'Building Better Cities' campaign in the story. This is unsurprising given that that Lafarge Zimbabwe Managing Director Jonathan Shoniwa made the comments about Lafarge Zimbabwe at a branding event for the campaign. Similar events are happening around the world. However, looked at overall, the decision to place cities at the heart of its marketing makes an increasingly compelling case for a variety of markets.

Some commenters on the Global Cement LinkedIn Group discussed this very issue recently in response to a news story on Lafarge's next set of expansion plans for China. Specifically, someone asked why would Lafarge want to expand in a market suffering from overcapacity!

The Building Better Cities campaign offers one answer. As China prepares to shut down excess capacity, Lafarge's strategy to be in place once the dust settles (perhaps literally in some places) starts to make sense. As a marketing tagline 'building better cities' works well because who doesn't – from Zimbabwe to China to even France – want better cities with better transport links through price, planning, technical and aesthetic innovations.

To give a sense of the environmental zeitgeist happening in China right now, this week we carry a news story on the Chinese Institute of Public and Environmental Affairs reporting 17 Chinese cement companies for environmental misdemeanours. Elsewhere, we can see evidence of continued foreign enthusiasm for investment in the Chinese cement market from Japan's Sumitomo Osaka Cement, despite fears of overcapacity. Lafarge is saying the right things at the right time but it may not be alone in its strategy.

China: 17 cement companies have been found to regularly violate environmental protection laws by illegally discharging airborne pollutants, according to a report led by the Institute of Public and Environmental Affairs (IPEA). The report, conducted by the IPEA with several independent institutes and environmental non-government agencies (NGO), also accused the companies of failing to disclose environmental information as required.

The 17 cement companies have about 170 recorded environmental violations between them. Violations listed in the records include the lack of denitrification facilities, faulty monitoring appliances and excessive emissions.

"The State Council recently released 10 measures to control airborne pollution and achieve energy and emissions reductions. The extremely energy-intensive cement, steel and thermal energy production industries, especially those leading listed companies, need to share the heavy responsibility of reducing emissions and not disappoint the public," said Ma Jun, director of the IPEA.

The cement industry is among the six most heavily polluting industries that were required by the Environmental Protection Ministry to meet international emission limits from March 2013. Dust emissions from the cement industry accounted for about 30% of total industrial emissions in 2009.

"We found that this industry has shocking problems with dust and waste gas emissions. The cement industry's violations have deeply harmed the living environment and health of those who live near the factories," said Fang Yingjun from environmental NGO Green Jiangnan.

The environmental NGOs said that they have contacted the 17 listed companies to inform them of the aforementioned pollution problems, but most of the alleged offenders took an evasive stance.

China: Sumitomo Osaka Cement intends to increase cement production by 80% in China's Yunnan Province by 2016. The Japanese cement producer has been making cement in Yunnan Province since 2007 in partnership with a local steelmaker and a Hong Kong construction materials company. That operation involves four plants, each run by a separate joint-venture firm.

With infrastructure investment still active in Yunnan, the plan is to build two more cement plants with a combined production capacity of 6.4Mt/yr. This will make the operation the province's largest, with a capacity of 14.6Mt/yr.

The first new plant will be built in December 2014 and the second in 2016. Sumitomo Osaka Cement will invest around US$42m for its share of the project.