Global Cement News

Egypt: El Arish Cement is extending the clinker production capacity of its existing cement plant and will add two new lines with a clinker production capacity of 5500t/day.

El Arish Cement already operates two Loesche vertical roller mills, type LM 56.4, for cement raw material grinding within its existing two lines. The new type LM 56.4 mills will have 450t/hr of grinding capacity and a product fineness of 12% R90μm. As the new mills are of the same type as the existing ones, common spare parts can be used, keeping the spare parts demand to a minimum.

For cement grinding, El Arish Cement has also selected Loesche vertical roller mills of type LM 63.3+3. The table diameter of the mills is 6.3m and will be driven by a drive system with a rated capacity of 6800kW. The mills will grind various cement types, with capacities of up to 305t/hr.

India: According to J P Morgan, Indian cement demand is likely to remain sluggish until the end of the 2015 financial year as government spending remains weak. However demand should pick up from the 2016 financial year onwards. "We would wait for clarity on the recently completed Ministry of Highways' tender for cement procurement, as roads can be a big driver and it has relatively fewer issues," said J P Morgan.

Canada: Efforts by Lafarge and Holcim to sell assets as part of their planned merger may be complicated by the new McInnis cement plant in Canada, which some claim will inject more capacity into an already saturated market and further depress prices.

McInnis Cement's plant in the northeastern Quebec region of Gaspé will have 2.2Mt/yr of installed cement production capacity and may start shipping to clients in two years, according to Jim Braselton, a senior vice president at the company. That represents about 66% of the local cement capacity that Lafarge and Holcim plan to sell. The assets for sale, including construction and aggregates units, have an estimated value of US$884m, excluding the impact of increased supply by the McInnis plant.

South Africa: PPC has concluded an agreement to source waste tyres from the Recycling and Economic Development Initiative of South Africa (Redisa) for use at its De Hoek cement plant in Piketburg, Westerm Cape. PPC is also investigating the possibility of using waste tyres in some of its other plants, according to Azola Lowan, the executive for investor relations and strategy.

Redisa is the only waste tyre management plan approved by the Department of Water and Environmental Affairs and is involved in the collection and processing of waste tyres. Lowan said that the use of the waste tyres in the kilns at the De Hoek plant would be introduced from the middle of 2015 and indications were that the tyres could replace 10% of its coal usage. Lowan also confirmed there was a cost benefit from using the waste tyres instead of coal and a carbon advantage because of the reduced use of coal. Some investment was required in the feeder system to use waste tyres, which meant this initiative would only generate a return over a few years.

Lowan stressed this was one of several environmental and alternative energy initiatives being undertaken by PPC to ensure that PPC is compliant with environmental legislation and regulations by 2020. PPC has already commissioned the use of carbonaceous spent pot liner, a waste material from the aluminium industry, at its Dwaalboom cement plant in Limpopo. "We basically get paid to use that product and again it replaces about 5% of the coal," Lowan said. She added that PPC was also doing a feasibility study on a waste heat recovery (WHR) system at its Dwaalboom plant. PPC also has an agreement with Innowind, which is constructing a 60MW wind farm in the Eastern Cape to provide electricity to PPC's Grassridge quarry.

Australia: Fibre cement producer James Hardie has posted a sharp increase in its operating profit for the second quarter of its 2015 financial year, despite a slower-than-expected recovery in the US housing sector.

James Hardie, which generates 66% of its revenue in Europe and the US, had warned of short-term US uncertainty with the recent 'flattening in housing activity,' but has forecast a moderate improvement for the year ending in March 2015. Its Australian, New Zealand and Philippines businesses are also expected to improve.

"Management cautions that, although US housing activity has been improving for some time, market conditions remain somewhat uncertain and some input costs remain volatile," said James Hardie.

The company reported a net operating profit of US$127m for the quarter that ended 30 September 2014, up from US$51.9m in the same period of 2013. Chief executive Louis Gries said that the 66% jump reflected increased volumes and higher average net sales prices across its US, European and Asian fibre cement businesses, which drove net sales up by 12% for both the quarter and the half-year. "The recovery of the US housing market remains below our expectations at the beginning of the year," said Gries.

For the 2015 financial year, James Hardie expects US$205 – 235m of net operating profit, excluding asbestos compensation costs. In the 2014 financial year, the company reported US$197m of net operating profit.