05 November 2014
Colombia: Cementos Argos plans to use more than 26,000t/yr of used tyres generated in the Valle de Aburra region as fuel for its cement plant. Tyres could be incorporated in Cementos Argos processes by the end of 2014 or the beginning of 2015. Executives have commented that one of the main obstacles is the collection of used tyres.
National Cement plans US$19m coal fired power plant 05 November 2014
Kenya: National Cement is set to build a 15MW coal-fired power plant in Kajiado at a cost of US$19m as part of its expansion plan. The plant will feed its upcoming limestone mining and clinker manufacturing operation in the same location.
National Cement will transport the clinker to its plant in Lukenya, which is being expanded to 1.7Mt/yr capacity from the current 600,000t/yr. National Cement, which produces the Simba cement brand, said that it decided to generate its own electricity because of delays in connecting to the national grid, where power is also more expensive. "The cost of procuring electricity from Kenya Power is twice as much when compared with the cost of generating power using coal," said National Cement.
Electricity supplied from the national grid currently costs an average of US$0.18/kWh. Based on current international coal prices, power generated from coal costs US$0.15/kWh. Coal prices have dropped by 18% since the start of 2014 and a further fall could make energy derived from coal even cheaper. However, the Kenyan government has said that the cost of power form the national grid could halve in the medium term on expansion of the country's generation capacity to 5000MW from the current 1300MW.
Besides seeking lower costs, National Cement has said that it has been forced to construct the coal plant due to Kenya Power's delays in connecting its Kajiado operations. "Kenya Power is also unable to provide power to National Cement within the required time frame (within two years) and only install the electricity in three years' time, while electricity is needed for the clinker manufacture in 24 months' time."
National Cement states that it will import coal from countries like South Africa, but Kenya's move to start mining its own coal could see the firm source the commodity locally in the future. The coal consumption for the proposed power plant is estimated at 63,360t/yr. Saving on energy costs is expected to boost the firm's margins, underlining the importance of lower operational costs in an industry hit by vicious price wars.
Wikov Gear sends 120t gearbox to Spassk-Cement in Russia 05 November 2014
Russia: Engineering company Wikov Gear will transport a 120t gearbox to a cement plant near Vladivostok, Russia, via road and ship by February 2015. It is the heaviest gearbox Wikov Gear has produced in over 100 years of existence, according to CEO Tomas Zrostlik. Lorries with the gearbox will leave Plzen, western Bohemia, in the middle of November 2014.
The biggest gearbox made by Wikov Gear thus far weighed 102t. It was made for Siemens, which was building a cement roller mill in South Korea. "Before that, we were producing special gearboxes which weighed 60 – 70t, in particular for roller mills' heavy operations," Zrostlik said. Some 80% of the company's portfolio is equipment weighing 20 – 25t.
The gearbox that is destined for Russia is 8m long, 5m high and 2.5m wide. It has been designed for 15 years of operation. The recipient is Spassk-Cement, of the private group Vostok Cement, which has three cement plants and supplies 95% of its output to Russia.
"We will load the equipment within three weeks. It will travel to Hamburg and then by ship via Shanghai. We expect it to arrive in 45 - 50 days," Zrostlik said. The gearbox will be in 25 boxes, the heaviest one weighing 45t. The assembly will start in March 2015 and the launch of its operation is planned for around 15 April 2015. Wikov Gear is also responsible for the assembly and online implemtnation.
Supplies for cement plants have made up 15% of Wikov Gear's turnover thus far, but the share is to rise up to 25% in 2015. The company also won an order from Lafarge in Germany in November 2014.
Holcim reports weak growth in the first nine months of 2014 05 November 2014
Switzerland: Holcim has reported increased cement sales volumes, increased net sales and increased operating profits for the first nine months of 2014, although growth was weaker than expected due to the uneven global economic recovery.
Group-wide cement volumes increased by 1.6% year-on-year to 106Mt over the first nine months of 2014, mainly driven by positive volume developments in the US, India and the Philippines, which offset lower volumes in Azerbaijan, Italy and Argentina.
Consolidated net sales were up by 3.4% year-on-year as a result of higher volumes and better pricing in many markets. Consolidated net sales decreased by 4.7% to Euro11.8bn. Negative currency effects, mainly in Asia Pacific and Latin America, were the main contributor, weighing on consolidated net sales by Euro871m. Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 0.7% year-on-year. Consolidated operating EBITDA was down by 7.1% to Euro2.27bn, mainly due to currency effects. Adjusted for restructuring and merger costs, operating EBITDA was Euro2.34bn. North America and Europe, the two group regions less affected by the significant currency effects, recorded growth in operating EBITDA.
Operating profit reached Euro1.43bn, an increase of 2.8%. Like-for-like and adjusted for merger and restructuring costs, operating profit increased by 7.8% or Euro117m. Net income was down by 9% to Euro96.2m, partly because Holcim has not yet received the final compensation installment of Euro77.9m for the nationalisation of Holcim Venezuela, which was due on 10 September 2014. In addition, the group benefited from the one-time gain from the sale of 25% in Cement Australia in 2013.
For 2014 Holcim expects the global economies to show another year of uneven performance. Construction markets in Europe are expected to have reached the bottom, with slow recovery in sight. At the same time, North American markets are expected to continue to benefit from a further recovery especially in the US. However, Latin America could continue to face uncertainties in Argentina, but should overall show slight growth in 2014. The Asia Pacific region is expected to grow, although at a comparatively slower pace than experienced in recent years. Africa Middle East is expected to gradually improve. Holcim expects cement volumes to increase in all regions in 2014 with the exception of Europe.
"Holcim posted a solid like-for-like performance in the first nine months of 2014, building on the good traction earlier in the year and despite the ongoing challenging market environment," said Bernard Fontana, CEO. "The group increased like-for-like operating profit on the back of the solid financial performance in North America, Europe and Africa Middle East. However, weak emerging market currencies continued to negatively impact consolidated financial performance, in particular in Asia Pacific and Latin America."
Ecuador: Peru's Gloria Yura Cement plans to invest US$230m in the construction of a new cement plant in Ecuador, according to the minister of Industry and Productivity in Ecuador, Ramiro Gonzalez.
Dangote Cement seeks licence for 75MW power plant in Tanzania 05 November 2014
Tanzania: Dangote Cement has applied for a licence to build a 75MW coal-fired plant in Tanzania that would power a US$500m cement plant now under construction, Tanzania's energy watchdog has reported.
"Dangote Industries applied for a 75MW electricity generation licence to build, own and operate a coal-based captive power plant adjacent to its cement plant," the state-run Energy and Water Utilities Regulatory Authority (EWURA) said. All the generated electricity will be used to run the plant and associated utilities.
"Any interruption in power supply or unstable voltage/frequency causes extensive damage to the refractory and also to the rotary kiln parts. Refractory failures cause production shutdowns varying from 15 to 30 days and unscheduled use of costly imported refractory bricks," the regulator added.
The Dangote cement plant in southern Tanzania is scheduled to be commissioned in the second half of 2015. With a capacity of 3Mt/yr it will supply Tanzania's domestic market and export to landlocked nations in the region.
Taiwan Cement buys Sichuan Railway Group Cement for US$111m 05 November 2014
Taiwan: Taiwan Cement, is purchasing Sichuan Railway Group Cement for US$111m to expand its presence in China. Taiwan Cement made the purchase through its subsidiary TCC International Holdings. The Sichuan company's production site has a cement production capacity of 2Mt/yr.
Prior to the purchase TCC International operated two cement plants in Sichuan: one in Guangan with a cement production capacity of 2Mt/yr and the other in Chongqing with a capacity of 4Mt/yr. Following the purchase TCC International will boost its capacity to 8Mt/yr. Taiwan Cement said that the acquisition is expected to create synergies for TCC International, helping the company cut operating costs to improve its bottom line.
TCC International reported a 79.6% rise in net profit to US$134m for the first half of 2014. In addition to the purchase in Sichuan, Taiwan Cement said that TCC International will also add a new production line in its Guizhou plant later in November 2014 to boost its production capacity by an additional 1.5Mt/yr.
PPC increases stake in Habesha Cement to 51% 05 November 2014
Ethiopia: South African cement producer PPC has acquired Industrial Development Corporation's 20% stake in Ethiopian-based Habesha Cement for a purchase consideration of US$13m. PPC's initial 27% stake in Habesha, acquired in July 2012, now rises to 51%, while the balance of the shareholding in Habesha is held by around 16,000 local shareholders.
"We are very excited about our increased investment in Ethiopia; a country with a population of 91 million people that is set to reach 100 million by 2018 and having a growth rate that is expected to remain above 8% in the medium term," said Bheki Sibiya, Executive Chairman of PPC.
Habesha has begun the construction of a 1.4Mt/yr cement plant 35 km north-west of Addis Ababa. The project has cost approximately US$135m and commissioning is planned for 2016. In addition to the Habesha project, PPC has started building projects in Rwanda, the Democratic Republic of Congo and Zimbabwe.
Financial closure of this acquisition is expected in December 2014 once all conditions have been satisfied.
Italian prime minister Matteo Renzi officially opens new Italcementi Rezzato production line 05 November 2014
Italy: Italian Prime Minister Matteo Renzi officially switched on the new kiln at the Italcementi cement plant in Rezzato on 5 November 2013. The 1Mt/yr plant has undergone an extensive production and environmental upgrade that cost Euro150m.
"The new Rezzato plant is the best expression of the Group's strategy: industrial development combined with a firm commitment to innovation and environmental performance," said Italcementi CEO Carlo Pesenti.
He added that the Rezzato upgrade was part of the Pact for the Environment signed by Italcementi and the Ministry in July 2009, which set out an investment programme for the renewal of our industrial network and attainment of ambitious environmental targets. Other targets include Italgen, the Italcementi Group company that produces energy entirely from renewable sources. The Italcementi investment plan has also seen a technical upgrade at the Matera cement plant.
Products manufactured in Rezzato include white cement and the basic material for a new biodynamic cement to be used to construct the external structure of Palazzo Italia at Expo 2015. The Rezzato production facility currently employs 118 people and provides work for an additional 160 people in ancillary industries.
Lafarge profit falls by 28% to Euro218m in third quarter of 2014 05 November 2014
France: Lafarge has reported that its net profit fell by 28% year-on-year to Euro218m in the third quarter of 2014 from Euro304m in the same period in 2013. The France-based building materials company blamed the drop on the war in Iraq and a sluggish construction market in France.
Overall sales revenue fell slightly to Euro3.64bn. Earnings before interest, taxation, depreciation and amortisation fell by 4% to Euro887m from Euro920m. Cement sales volumes fell slightly to 31Mt.
"In a quarter marked by more moderate growth, we continued to progress on implementing our actions to reduce debt, cut costs and promote innovation... We shall meet our 2014 Euro600m cost-cutting and innovation target and confirm our 2015 Euro550m objective," said Lafarge's CEO, Bruno Lafont.
The company noted that volume trends eased in the third quarter with a more challenging comparable in Europe, mostly in France, where the construction sector remains subdued and in Iraq, the ability to transport cement across the country was limited. Meanwhile, in most emerging markets and in the United States, growth continued and the company benefited from the start-up of its new plants in India and Russia.
Looking ahead, Lafarge confirmed its estimate of market growth of between 2% to 5% in 2014 versus 2013. The company added that it has decided to pause its stand-alone divestments pending completion of the planned merger with Holcim.