Displaying items by tag: Chile
Unacem buys Cemento San Antonio grinding plant from CBB
04 January 2022Chile: Peru-based Unacem has bought CBB’s Cemento San Antonio grinding plant in Valparaíso region for US$30.8m. The deal also covers the nearby Popeta pozzolano deposit.
Melón seeks pozzolana supply for cement plants
29 December 2021Chile: Melón has filed an Environmental Impact Statement with the authorities in Santiago for a project to extract pozzolana at a site at Culiprán in Melipilla. The deposit has total reserves of 20Mt and an extraction rate of 0.4Mt/yr is anticipated, according to Minería Chilena. Pozzolana from the site would be used to supply Melón’s cement plants at La Calera and Ventanas
Chile: Cemento Polpaico has obtained a licence for the use of Canada-based CarbonCure’s CO2 utilisation technology. The Diario Financiero newspaper has reported that the cement company plans to implement the technology in its concrete production.
Head of development and projects Matias Saenz said that Cemento Polpaico was among the first cement producers to commit to the UN’s Race to Zero decarbonisation initiative. It has also set out 20 sustainability goals to achieve before 2025. The company said that by implementing CarbonCure technology it is contributing to CarbonCure’s vision of eliminating 500Mt/yr of CO2 emissions.
Cementos Polpaico plans Cerro Blanco cement plant upgrade
08 November 2021Chile: Cementos Polpaico has submitted an environmental impact study for a US$60m upgrade of its Cerro Blanco cement plant in Tiltil, near Santiago. Business News America has reported that the proposed work consists of the installation of a new precalciner, an expansion to its four limestone quarries and the establishment of a new filtered tailings deposit and 3000t cement silo.
The producer hopes to launch the project in January 2023 in order to commission the upgraded plant before 2026.
Unacem acquires Cementos La Unión’s business in Chile
11 October 2021Chile: Unacem has completed its acquisition of Spain-based Cementos La Unión’s Chilean cement business. The value of the asset, including assumed debts, was US$23m. The business consists of the 0.3t/yr San Antonio grinding plant and two ready-mix concrete plants with a total capacity of 336,000m2 /yr.
Fábrica Nacional de Cemento to increase clinker exports to Chile
23 September 2021Bolivia: Fábrica Nacional de Cemento (FANCESA) has received an order for 8000t of clinker from Chile. The Correo del Sur newspaper has reported that the company previously delivered 1000t of clinker to Chile-based Cbb’s grinding operations in the country. The producer says that it is in the process of securing a supply contract for 80,000t/yr of clinker with its Chilean customer.
CBB slashes Matarani cement grinding plant budget
20 July 2021Peru: Chile-based CBB, formerly Cementos Bío Bío, has reduced the budget for its planned Matarani cement grinding plant near Arequipa by 79% to US$8.95m from US$42.5m. According to the Gestión newspaper, the producer had previously secured and environmental permit for the unit.
Inform starts joint venture in Chile
20 April 2021Chile: Inform has set up a joint venture with its Chilean partner, Workforce Solutions. Previously, Workforce Solutions previously acted as a local partner for the German-based software development and business process optimisation supplier. Inform says it will invest ‘significantly’ in the new joint venture and acquire shares, while the remaining stock will be held by former shareholders and executives of Workforce Solutions. The new company has officially been operating as Inform Software since mid-April 2021. It has its headquarters in Santiago de Chile.
“We see the Latin American countries as a strategically important growth market in which we are happy to invest,” said Andreas Meyer, chief executive officer of Inform. “As we move forward with this joint venture, we will expand personnel resources for sales, project delivery and customer support. It will enable us to enhance our service to our customers in Latin America and further expand our market position.”
The joint venture is intended to allow Inform to expand its presence in Latin America across all of its business areas including logistics, transportation, workforce management, airline and airport operations and fraud prevention. In addition, the company will continue to work with its two longstanding partners Portia LAC in Brazil and Quantomm Tech in Colombia, which will continue to assist in serving Inform’s customers. Inform’s artificial intelligence software products are already used in Latin America by companies including Volkswagen México, LATAM Airlines, Zurich Insurance Mexico, Zurich Insurance Argentina, Brazilian retail company Via Varejo and Chilean Mercedes-Benz importer Kaufmann.
Update on Peru: March 2021
24 March 2021Two fairly serious investments in Peru made the industry headlines this week. The first was Yura’s plans to upgrade its Arequipa cement plant at a cost of US$200m. The project will involve increasing the plant’s clinker production capacity as well as installing a new mill and a 4.3km conveyor. The second was the latest instalment in Cementos Interoceanicos’ long held ambition to build a plant. It has struck a deal with France-based Satarem to build a 1Mt/yr plant near Puno. The deal also includes Satarem buying a 30% stake in Cementos Interoceanicos and plans to construct two lime units as well.
Graph 1: Local cement sales in Peru, January 2020 to February 2021 compared to January 2019 to February 2020. Source: ASOCEM.
These projects follow a squeeze for the local industry due to coronavirus-related containment measures. Data from the Association of Cement Producers (ASOCEM) shows that cement sales collapsed during the lockdown to just 11,000t in April 2020 before recovering in the autumn. Total annual local sales fell by 17% year-on-year to 9.7Mt from 11.6Mt. Sales have also remained high in January and February 2021.
The experience from the larger cement producers mirror the data from ASOCEM. Cementos Pacasmayo’s sales revenue fell by 7% year-on-year to US$354m in 2020 and its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 21% to US$86.3m. Unión Andina de Cementos’ (UNACEM) income fell by 14% year-on-year to US$467m in 2020. Despite this, UNACEM managed to sign a deal to buy Cementos La Unión Chile for US$23m in December 2020. The purchase consists of a 0.3Mt/yr cement grinding plant and a 0.34Mm3/yr ready-mix concrete business with multiple concrete plants and trucks. UNACEM described Chile as its main clinker export destination and it holds concrete and precast subsidiaries in the country.
Yura’s general manager Ramón Pizá reportedly called his company’s plans a “vote of faith in Peru.” This is not an understatement considering the market shocks caused by coronavirus in 2020. The country implemented public health measures relatively early during the pandemic but still ended up with one of the worst death rates per capita in Latin America so far. As the British Medical Journal (BMJ) pointed out earlier this month, the timing was right but tragically the application of public health measures has been found wanting. Yet, the fundamentals for the Peruvian cement market are strong. Annual sales mounted from 2017 to 2019, and were showing signs of continuing this in early 2020 before the lockdown shut the market down. This growth pattern has continued so far in 2021.
Philippines Department of Trade and Industry adds further countries to safeguard measures list
16 March 2021Philippines: The Department of Trade and Industry (DTI) has issued an order amending its previous order on cement safeguards. The Manila Bulletin newspaper has reported that the amendment extends safeguard measures to 13 new countries which now exceed the necessary 3% import volume share. These are Chile, the Czech Republic, Estonia, Hungary, Israel, Indonesia, Latvia, Lithuania, Poland, Slovenia, Slovakia and South Korea. Imported cement from these countries will now face a safeguard duty of US$0.2/bag. An official source quoted by the newspaper called the surge in importation from these countries "trade diversion" tactics by importers since these countries were previously exempt from the safeguard duty.