Displaying items by tag: Upgrade
Thai cement plant installs ThyssenKrupp Polysius' Prepol SC alternative fuels system
19 January 2023Thailand: ThyssenKrupp Polysius says that it has successfully supplied and installed a Prepol SC alternative fuels (AF) system at a 12Mt/yr cement plant in Thailand. The system will supply the plant's four lines with 4000t/day of AF.
ThyssenKrupp Polysius' Asia Pacific CEO Lukas Schoeneck said "Asia Pacific, with its tremendous municipal solid waste (MSW) problem, is ideal when it comes to replacing coal with AF. The Prepol SC technology significantly reduces the need to treat MSW before using the inherent calorific value. Additionally, it helps to further reduce the ambitious CO2 limit targets in the region."
Update on Türkiye, January 2023
18 January 2023The Ministry of Trade in Türkiye said this week that it was monitoring developments in the construction industry. Specifically, the ministry is reacting to complaints it has received about the high price of cement and supply issues. It has been looking at exports of clinker and cement. The statement noted that prices had risen particularly in the last one to two months and that the government was prepared to take unspecified action to alleviate the situation.
The comments hark back to the autumn of 2021 when members of the Construction Contractors Confederation (IMKON) stopped working for two weeks in response to high prices including cement. At the time the ministry tightened its rules on exporting cement and clinker. This followed the start of an investigation into alleged anti-competitive behaviour by the regulator Rekabat Kurumu into nine cement producers in the first half of that year. Around the same time Türk Çimento, the Turkish Cement Manufacturers' Association, had also been warning about growing raw material and energy costs. It noted that declining domestic sales between 2017 and 2019 had encouraged its members to focus on export markets more. All of this was overshadowed in February 2022 when Russia invaded Ukraine and global energy prices spiked. Türk Çimento then warned of the trouble that high coal prices were causing the sector.
Graph 1: Domestic and export cement sales in Türkiye, January – September, 2017 – 2022. Source: Türk Çimento.
Graph 1 above shows that the trend towards exports that Türk Çimento pointed out in mid-2021 has continued. Domestic sales fell to a low of 33.2Mt in 2019, recovered to 2021 and dropped somewhat so far in 2022. As an aside, that decline in domestic sales from 2017 to 2019 was the first the local cement industry had experienced a fall in sales since at least 2002. Exports fell year-on-year in 2018 but have increased steadily since then to 14.6Mt in the first nine months of 2022. Exports represented 10% of total sales in 2017. So far in 2022 they have accounted for 27% of total sales. Türk Çimento’s take on the picture so far in 2022 is that it expects the domestic market to decline by 10% in 2022 in all regions of the country principally due to high commodity prices. Cement exports are expected to increase but clinker exports to decrease.
Commercially, Türkiye-based cement producers have reacted to high energy prices by upping their own product prices in turn. OYAK Çimento, for example, reported significant rises year-on-year in sales revenue and earnings in the first nine months of 2022. Net sales grew by 160% year-on-year to Euro403m and earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 202% to Euro106m. Akçansa and Çimsa reported a similar situation.
Despite the high energy costs, both investment and merger and acquisition activity has continued in the cement sector in 2022. In August 2022 Fernas Group completed its purchase of two integrated cement plants, a grinding plant and associated ready-mix concrete assets from Çimsa Çimento for US$110m. Later in the year, in November 2022, Safi Çimento acquired Sancim Bilecik Çimento’s integrated plant from Aşkale Çimento. Various upgrade projects to cement plants were also reported including projects at KÇS Kipaş Çimento’s Kahramanmaraş plant, Nuh Çimento’s Hereke cement plant, MEDCEM’s Silifke plant and OYAK Çimento’s Ünye plant.
Recent reporting by the Economist newspaper suggests that the government is targeting the domestic housing sector in response to higher than inflation price rises even compared to Türkiye’s high consumer price inflation rate. The next general election in June 2023 may also be encouraging legislators to look at the accommodation needs of their constituents. Whether this is connected to the Ministry of Trade’s recent decision is unknown. Cement producers have followed the money to lucrative export markets in recent years. How far the government is willing to intervene in this strategy could mark a change in direction for the sector.
Shree Cement commissions new solar power plants
13 January 2023India: Shree Cement has commissioned captive solar power plants with a total capacity of 40MW in Bihar and Jharkhand. A Shree Cement facility in Banka, Bihar, hosts a 30MW solar power installation, while another in Seraikela Kharsawan, Jharkhand hosts a 10MW installation. Press Trust India News has reported that Oriana Clean Energy carried out design, engineering, procurement and construction on both projects.
Votorantim España to upgrade Toral de los Vados cement plant
11 January 2023Spain: Votorantim España plans to invest Euro15m in an upgrade to improve the efficiency of its subsidiary Cementos Cosmos' Toral de los Vados cement plant in Léon. The project will reduce the plant's power consumption by 7%, while increasing its clinker production by 11% to 3100t/day. Cementos Cosmos expects to commission the newly upgraded plant before the end of 2023. ALIMKC News has reported that the local authority has altered the plant's environmental authorisation accordingly.
CBR to install carbon capture system at Antoing cement plant
10 January 2023Belgium: Heidelberg Materials has announced an upcoming project called Anthemis at its subsidiary CBR's Antoing cement plant in Hainaut. The project will implement Heidelberg Material's OxyCal model, which combines Oxyfuel and amine-based carbon capture technology. When operational, the system will capture 800,000t/yr of CO2, reducing the Antoing cement plant's CO2 footprint by 97%.
Heidelberg Materials chair Dominik von Achten said “We are excited to add yet another pioneering technology to our CCUS project portfolio, and to build on what we have already achieved in terms of research and innovation. From the Antoing plant alone, we will be able to offer more than 15Mt of carbon-free cement to the construction market during the first 10 years of operation." Von Achten concluded "This is a key contribution to Belgium’s transition to net zero greenhouse gas emissions.”
SONACIM orders generator part from Chinese supplier
05 January 2023Chad: Société National de Cimenterie (SONACIM) has placed an order with a China-based machine parts supplier for a part for its Baoré grinding plant’s generator. Alwihda News has reported that previously ordered the part from a supplier based in Egypt, which since failed to make the delivery. Cement production has been suspended at the plant since early July 2022, pending delivery of the missing part.
SONACIM’s deputy director general Koye Ndaye Benoît said “As soon as the part arrives, production will be restarted.”
430 people are employed in SONACIM’s operations in Chad.
Saudi Arabia: Southern Province Cement expects to sign a contract for construction of a planned 10,000t/day new line at its Jazan cement plant in early 2023. Mist News has reported that the company commenced tendering for technical and financial offers for the project in May 2022.
When commissioned, Southern Province Cement plans for the new line to replace the plant’s older existing lines.
Pakistan: Lucky Cement commenced clinker production from a new 3.15Mt/yr kiln line at its Pezu integrated cement in Khyber Pakhtunkhwa in late December 2022. This latest expansion increases the producer’s domestic production capacity by 26% to 15.3Mt/yr, from below 12.2Mt/yr earlier in 2022. The company also operates cement plants in Democratic Republic of Congo and Iraq with an additional capacity of 4.4Mt/yr.
The International News newspaper has reported that Lucky Cement anticipates domestic cement demand to grow due to the rebuilding of homes destroyed by flooding in 2022.
Madagascar: Cementis Océan Indien has launched a US$120m upgrade project to its integrated Ibity cement plant. The project is intended to increase the unit’s production capacity to 1Mt/yr from just under 0.2Mt/yr at present. A memorandum of understanding was signed by Cementis and the Ministry of Industrialisation, Commerce and Consumer Affairs in early December 2022. Completion of the project is scheduled for 2025.
Cementis agreed to buy Holcim’s businesses in Madagascar, Reunion, Comoros, Mauritius and Mayotte in late 2021.
Hanson appoints MHI Engineering for Padeswood cement plant carbon capture installation
15 December 2022UK: Heidelberg Materials subsidiary Hanson has awarded a contract to Mitsubishi Heavy Industries subsidiary MHI Engineering for installation of a planned 800,000t/yr carbon capture system at its Padeswood cement plant in Flintshire. The producer plans to store its captured CO2 in exhausted Irish Sea natural gas fields. MHI Engineering will carry out a pre-front-end engineering design study using its Advanced KM CDR solvent-based process. The supplier developed the process jointly with fellow Japan-based company Kansai Electric Power.
The project will be MHI Engineering's third of its kind at a cement plant, following similar commissions with Lehigh Cement in Canada and Tokuyama Cement in Canada.