Global Cement News

Denmark/US: FLSmidth has been awarded a contract worth approximately US$136m by an un-named customer in the US for the modernisation of its cement production facility.

The purpose of the engineering, procurement and construction project is to convert one of the plant's existing wet process kilns to a dry preheater/precalciner kiln. As a result, the customer will be able to better fulfil its key environmental objectives, namely reduction of emissions and achieving lower energy consumption.

The equipment includes an FLSmidth drier crusher, modification of the existing kiln, a new 1-stage preheater with calciner, a kiln bypass system, an FLSmidth Cross-Bar cooler, a coal dosing system by FLSmidth Pfister and an ATOX solid fuel mill with an FLSmidth MAAG Gear reducer.

With the installation of three new FLSmidth fabric filters, the project will significantly improve the plant's ability to reduce the particulate emissions. Similarly, an FLSmidth control system will optimise operational efficiency. The scope of supply also includes a new HOTDISC reactor that will allow the plant to increase its consumption of whole car tyres, thus increasing its use of alternative fuels.

FLSmidth said that the award of this contract demonstrates the company's ability to help US cement producers prepare for the anticipated National Emission Standards for Hazardous Air Pollutants (NESHAP) regulations. "The United States cement industry is facing a number of challenges, ranging from a slowly recovering economy to significant regulatory changes in plant emission standards. We are very pleased to work with one of our much valued customers as it takes a leading role in investing in the future of this industry," said Group CEO Jørgen Huno Rasmussen. The order will contribute beneficially to FLSmidth's earnings until mid 2014.

Germany/Austria: In a move that affects two major cement industry suppliers Loesche GmbH of Germany, the market leader in dry-grinding technology, and pyroprocessing specialist A TEC Holding GmbH of Austria have entered into a close cooperation agreement. The companies say that it is a mutually-beneficial move and both are convinced that they can jointly provide an even stronger and better support to clients in the cement industry. However, the core business of both companies will remain unchanged.

The companies said that the cooperation, combining technologies and sales organisation, opens new interesting opportunities for certain types of projects, for example combined upgrading projects including grinding circuits and pyroprocess optimisation. The cooperation also generates attractive synergies for both companies. They added that research and development and joint technology developments will provide new and innovative solutions to solve the issues of the cement production market in the future.

Given the legal scuffles over the Environmental Protection Agency's (EPA) emissions timetable it was nice to see this week how Ash Grove Cement is responding at its Midlothian plant in Texas. The plant is seeking tax breaks on potential upgrade work that it is planning to implement before the current 2013 deadline for the EPA legislation.

For those following the fight between the EPA and the US cement industry here is a recap on the story so far:

The EPA issued a national emission standard for hazardous air pollutants rule to reduce the sector's air toxics in September 2010, alongside a new source performance standard to cut criteria pollutant emissions. In May 2011 the EPA both partly granted and denied petitions from cement industry representatives and environmentalists. In December 2012 the US Court of Appeals for the District of Columbia remanded the cement air toxic rule back to the EPA, delaying the deadline for the cement industry to seek a rehearing or review. Then in April 2012 the cement industry agreed not to seek a rehearing if the EPA extended its deadline until September 2015. The EPA has now sent for the White House Office of Management & Budget (OMB) to review its proposed revisions to its emissions rules, ahead of a tentative 15 June 2012 deadline.

While the EPA and the cement sector continue to battle it out plants like Ash Grove can do little except keep an eye on the bottom line until the dust settles... in whatever legally mandated fashioned is eventually approved. The Global Cement Directory 2012 lists 22 wet and semi-wet kilns in the US. While some are mothballed, others are likely to be affected by the rules. While the arguments continue the upgrade timetables of these plants hangs in the balance.

France: Gérard Lamarche has been appointed as a director at Lafarge at its Ordinary General Meeting in Paris on 15 May 2012.

Lamarche graduated from the University of Louvain-la-Neuve with a Bachelor's degree in Economic Sciences and a specialisation in Business Administration and Management. He also completed the Advanced Management Program for Suez Group Executives at the INSEAD Business School.

He began his professional career in 1983 with Deloitte Haskins & Sells in Belgium, and became a mergers and acquisitions consultant in the Netherlands in 1987. In 1988, he joined the Venture Capital Department of Société Générale de Belgique as an investment manager. He became the special projects advisor to the president and secretary of the Suez board of directors in 1995 where he later became the group's senior vice president in charge of planning, control and accounts management. He was appointed senior executive vice president – finance of the Suez Group in March 2004, becoming executive vice president - finance of GDF SUEZ, and member of the management and executive committees of the GDF SUEZ Group in July 2008.

Lamarche is a director of Groupe Bruxelles Lambert (Belgium) and has been a managing director since January 2012. Lamarche is also a Director of Total and Legrand.

Denmark: FLSmidth, a supplier of engineering services and equipment to the cement and minerals industries, has kept its outlook for 2012 after first quarter profits rose less than forecast. The company said market trends remained favourable and that a rise in order intake confirmed its growth expectations.

FLSmidth said that it still expected full-year 2012 consolidated revenues of US$4bn, up from US$3.78bn in 2011, and an earnings before interest and tax (EBIT) margin of 9-10% against a 2011 margin of 9.9%. It is also aiming for a 2012 earnings before interest, tax and amortisation (EBITA) margin of at least 10%, against a 2011 margin of 10.9%. First-quarter earnings before interest and tax (EBIT) rose to US$57.7m in January to March 2012 from US$52.4m in the first quarter in 2011.