Displaying items by tag: UltraTech Cement
JK Lakshmi Cement awards solar power plant contract to Amplus Solar
08 February 2023India: Amplus Solar has secured a contract with JK Lakshmi Cement for construction of a 56MW solar power plant at the producer’s 1.7Mt/yr Durg cement plant in Chhattisgarh. The producer expects to eliminate 73,000t/yr of CO2 emissions as a result.
JK Lakshmi Cement’s president Arun Shukla said "We support the country's vision to achieve net zero emissions by 2070. We have taken multiple steps to reduce both direct and indirect carbon emissions. Last month, for the first time in India, we deployed liquefied natural gas (LNG) trucks to transport raw material. Now, with the switch to solar energy at our Durg plant, nearly 80% of the plant’s energy requirements will be met renewably.”
Amplus Energy previously partnered with UltraTech Cement for a 50MW solar installation at one of its cement plants in 2019.
India: UltraTech Cement has commissioned a new 1.5Mt/yr grinding unit at its Jharsuguda grinding plant in Odisha. The unit more than doubles the plant's capacity to 2.5Mt/yr. The Hindu BusinessLine News has reported that UltraTech Cement now has a production capacity of 4.1Mt/yr in Odisha. The Eastern Indian state thus hosts 3.3% of the producer's total capacity of 123Mt/yr.
UltraTech Cement to acquire 70% stake in Duqm Cement
01 February 2023Oman: Aditya Birla Group subsidiary UltraTech Cement signed an agreement with Seven Seas Company to acquire a 70% majority stake in Duqm Cement on 30 January 2023. ET Now News has reported that UltraTech Cement’s UAE-based subsidiary Cement Middle East Investments concluded the deal in the form of a share sale and purchase agreement. the parties expect to complete the transaction in late April 2023.
India: UltraTech Cement recorded sales of US$1.91bn during the third quarter of the 2023 Indian financial year, up by 20% year-on-year from third-quarter 2022 financial year levels. The Aditya Birla subsidiary's cement sales during the quarter grew by 13% year-on-year in volume. It recorded 24% growth in costs, to US$1.74bn, while its profit fell by 38% to US$131m.
UltraTech Cement noted growth in the cost of electricity, fuels and raw materials.
UltraTech Cement's Baga cement plant violates pollution rules
19 January 2023India: The Himachal Pradesh State Pollution Control Board (HPSPCB) issued a show cause notice to UltraTech Cement's Baga cement plant in Himachal Pradesh's Solan District on 18 January 2023. The Hindustan Times has reported that stack emissions monitoring at the plant recorded a breach during 2022.
UltraTech Cement now has 15 days in which to respond to the show cause notice.
Adani Cement takes on the unions in Himachal Pradesh
11 January 2023Adani Cement’s dispute with truck driver unions in Himachal Pradesh is about to enter its fifth week. The standoff began on 15 December 2022 when the company closed its integrated plants at Darlaghat and Barmana in response to union freight rates. A third unit, a grinding plant at Nalagarh, reportedly continued to operate for a few days longer with raw materials supplied from neighbouring Punjab and Rajasthan, until the transport companies shut down its supply.
Adani Group took over the plants from Ambuja Cement and ACC following its acquisition of Holcim’s India-based businesses in September 2022. The new business seemed to be running smoothly as new officials were appointed and an alternative fuels subsidiary, Geoclean, was created. Then Adani Cement closed its two plants in Himachal Pradesh. In a statement the group said, “Our plants at Gagal (Barmana) and Darlaghat have been incurring losses for quite some time now with no signs of improvement due to stiff resistance from transportation unions ignoring the larger cause of employment generation and contribution to the state’s revenue.” The group added that it had requested the truckers reduce the freight rate to around US$0.07/t/km from US$0.14/t/km, with the lower rate previously recommended by a committee from the state’s transport department.
Himachal Pradesh held state elections in mid-November 2022 with the Indian National Congress (INC) party taking control of the state government from the Bharatiya Janata Party (BJP). The results of the poll were revealed about a week before the cement plants closed and the new administration has suffered a bumpy start to its tenure. At first the state government issued a show cause notice to the cement producer requesting that it explain the closures or else risk ‘appropriate administrative action.' Several rounds of talks followed to no avail. Most recently, a government subcommittee has been set up that will bring together representatives of Adani Cement and the truck unions to try and agree on new freight rates.
In production terms the closure of the Darlaghat and Barmana cement plants is a big deal in the state, given that they have a combined cement production capacity of 6Mt/yr from the region’s total integrated capacity of 10.5Mt/yr. Data is limited on the direct effects of the standoff on the cement and construction market so far. However, competitor UltraTech Cement may be benefiting as it was swiftly awarded the supply contract for government projects. Local press reports have also noted that some of the unions have been stopping cement trucks from entering the state.
What is clearer is the human side to the dispute. Around 1000 staff are employed both directly and indirectly at the Barmana plant and others have jobs at Darlaghat and Nalagarh. Adani Group has relocated at least 140 staff from both sites during the closures. In addition over 7000 drivers were supporting both plants. Even more people have jobs connected to the plants, their supply chains and markets.
The argument between Adani Cement and the truck driver unions in Himachal Pradesh needs to be resolved soon for the good of everybody. Rising fuel costs are the driver of this situation, although it would be interesting to know why the other cement producers in the state haven’t similarly reacted against high freight rates in the same way. India isn’t the only country where the cement sector has been affected by driver union activity. South Korea endured a series of driver strikes in the autumn of 2022 that disrupted the cement sector. Eventually the government enacted laws to restrict strikes that might cause disruption to key areas such as cement production. The International Monetary Fund (IMF) forecasts that global inflation rates will stabilise in 2023 after a sharp rise in 2022. Growth rates are also predicted to slow. As societies and companies adjust to this it seems likely that there will be more clashes between companies, unions and other organisations as everybody tries to absorb higher costs.
UltraTech Cement to raise funds through commercial papers sale
07 December 2022India: UltraTech Cement plans to raise funds from the sale of commercial papers over a three-month period from 6 December 2022. Reuters News has reported that the producer has already received buyers' commitments worth US$60.6m. The group will offer a yield of 6.8% on the issue.
UltraTech Cement commissions two new Northern Indian grinding units
05 December 2022India: UltraTech Cement says that it recently commissioned two new grinding units in Northern India. The Aditya Birla subsidiary commissioned a new 1.8Mt/yr grinding unit at its expanded Dhar integrated cement plant in Madhya Pradesh on 27 November 2022. The company also inaugurated its new 1.8Mt/yr Dhule grinding plant in Maharashtra. The projects form the first phase of 12.9Mt/yr-worth of planned expansions, announced by the company in late 2020.
UltraTech Cement's managing director Kailash Jhanwar visited the Dhar cement plant to congratulate the team there on its contribution to the expansion drive.
India: Germany-based Gebr. Pfeiffer and its subsidiary Gebr. Pfeiffer (India) say they have received a follow-up order from Ultratech Cement for additional mills for new clinker production lines at its Kotputli plant in Madhya Pradesh and its Maihar plant in Rajasthan.
At the Kotputli plant it is planning to supply a MVR 5000 R-4 type mill to grind raw material. This mill can grind approximately 740t/hr to a product fineness of 1.0 % R 212µm with a 4800kW drive. At the Maihar plant a MVR 6000 R-6 type mill will also be supplied to grind raw material. In addition, several MPS 3550 BK type mills will be provided to grind fuel. These mills can grind approximately 45t/hr of pet coke, 90t/hr of coal, or any blend of the two materials. These are equipped with a 1300kW gearbox.
The plant design and the entire customer support will be handled by Gebr. Pfeiffer (India). The core components, such as gearboxes, grinding bowls, the grinding roller suspension system and the grinding rollers, will be supplied from Europe by Gebr. Pfeiffer. The remaining components, such as the foundation parts, the housings, the classifiers and most of the plant components will be provided by Gebr. Pfeiffer (India).
India: Aditya Birla subsidiary UltraTech Cement has commissioned a new 400,000t/yr putty plant in Rajasthan. The facility will produce the company's WallCare white cement-based putty. Reuters News has reported the cost of its construction as US$22.9m.