Global Cement News

Germany: Intensiv-Filter & Co KG has submitted an application for insolvency. The application was submitted on 31 May 2012 to the district court of Wuppertal, Germany. Dr Marc d'Avoine was appointed as the temporary insolvency trustee.

Initial plans are to re-start ongoing projects as quickly as possible. To aid re-capitalisation, d'Avoine has implemented efficiency improvement measures and continued technological advancements at the firm. In addition the sales department has, in spite of the insolvency, managed an order boom for the manufacture of machines and plants.

Intensiv-Filter group operates worldwide with around 400 employees. For 90 years it has been a leader in dust removal technology.

Nigeria: The cement sub-sector of the Nigerian economy received a further boost on 11 June 2012 when President Goodluck Jonathan inaugurated the new 5.25Mt/yr Dangote Cement Obajana Plant Line 3. The plant launch is part of the nation's drive to 'free itself' from foreign cement imports.

With the commissioning of the new line, the production capacity of the Obajana Plant will be raised to 10.25Mt/yr. In 2015 a fourth line will be completed, giving a combined production capacity of 13.25Mt/yr. This would make it the largest cement plant in the global cement industry.

The line 3 launch follows the commissioning of Dangote's 6Mt/yr Ibese plant. The company aims to lead the way in the Nigerian cement market and have sufficient material left over for export.

With the continuous expansion of the existing plants in the country and its operations across 14 other African countries, Dangote Cement will remain one of the largest producers in Africa and the world. The company said that the inauguration marked a milestone not only for the company but also for Nigeria, pointing out that the Obajana project will make Dangote Cement the 'power house of cement in Africa.'

Group President Alhaji Aliko Dangote has previously said that Dangote Cement would soon start to convert its import terminals for export terminals in readiness for exportation of its excess capacity to neighbouring countries.

Brazil: A large report by Sindicato Nacional da Industria do Cimento (SNIC) has revealed that home consumption of cement has risen by 104% in Brazil since 2006. The report, carried out by Galanto Consultoria, showed that Brazilian families are carrying out more home improvement, resulting in a surge in demand for many building materials.

DIY consumption of cement rose from US$14m in 2002-2003 to US$28.8m in 2008-2009. Interestingly, the use of bricks fell from 6% to 4.6%, wood from 5.7% to 3.9% and tiling from 6.4% to 5.9% of total materials used over the same period. The president of SNIC, Jose Otavio Carvalho, said that DIY applications now represent 18.23% of the total consumption of cement in Brazil.

Overall cement consumption in Brazil has risen by 34% to U$1.7bn in 2011, up from US$1.3bn in 2006. The major regional consumer is the south east with a 40.2% share followed by the north east with a 25.5% share of national consumption.

SNIC estimates that Brazil produced 63.6Mt of cement in 2011, just shy of national demand of 64.6Mt. Imports made up the shortfall. The industry's installed capacity was estimated at 78Mt/yr at the end of 2011, with SNIC predicting an increase to 111Mt/yr by the end of 2015.

Egypt: Arabian Cement Company (ACC) is expanding its operations in Egypt, with the official opening of its second production line at its plant located in Suez governorate.

During a press conference attended by General Ismail Al Nagdy, President of the Egyptian Industrial Development Authority (IDA), and Fidel Sendagorta, the Spanish Ambassador in Egypt, ACC showcased the benefits of converting to an alternative fuel system, which it is planning to implement on both production lines. This will help it to reduce its gas consumption to make the plant more environmentally-friendly.

ACC said that the second production line has created 850 jobs, making ACC an employer of around 1700 workers both directly and indirectly. Operation of the second line has doubled ACC's production capacity to 5Mt/yr.

"We are extremely pleased to announce opening our second production line, which will increase our production capacity, bringing us one step closer to becoming among the largest cement producers in the market. We have already finished the commissioning of the second line and are now ready to produce high quality cement products," said Jose Maria Magrina, ACC's CEO.

"ACC has been successfully operating in the Egyptian market since 2007 and is currently the second largest Spanish investor in Egypt. As a leader in the cement sector, we are constantly keen to implement the latest techniques in our production process. By using alternative fuel in our plant, we contribute to limiting the harmful effects of the cement industry on the environment."

Using alternative fuel will reduce the consumption of natural gas, saving the company 436m3 of gas for every tonne of refuse derived fuel (RDF). ACC has obtained the required license from the Egyptian Environmental Affairs Agency (EEAA) to use alternative fuel made from waste materials in the kilns of the plant. It is expected that RDF will be introduced to the plant by the end of 2012. This will save the operation around 60,000t/yr of CO2.

Saudi Arabia: Saudi Cement Company (SCC) said that its net profit for the three months to 31 March 2012 surged by 54.4% year-on-year to US$86.8m from US$56.2m in the year to 31 March 2011.

The company attributed the increase to higher sales volumes as a result of rising local demand. Its operating profit increased to US$87.8m for the first quarter of 2012 from US$58.1m a year earlier.