30 August 2016
Chile: AES Gener is exploring options to sell by-products from its Guacolda coal-fired power station to cement producers. The power-generation company has asked for permission to do so and has approached Polpaico, owned by Holcim, and BSA, owned by Hurtado Vicuna group, according to the Diario Financiero newspaper. Guacolda produces around 40,000t/yr of synthetic gypsum and 60,000t/yr of Ash. AES Gener is already selling 30,000t/yr or half of the ash generated at its Ventanas power plant, to Melón. The company also has agreements in place with a number of universities to explore the use of these materials in concrete, cement, agriculture and mining activities.
Fall in Sinoma's sales revenue lead by engineering division 30 August 2016
China: China National Materials Company's (Sinoma) sales revenue has fallen by 5.8% year-on-year to US$3.26bn in the first half of 2016 from US$3.46bn in the same period of 2015. All three of its business divisions reported falling revenue in the period, led by its cement equipment and engineering services business, which recorded the greatest decline at 8.51% to US$1.42bn from US$1.55bn. Sinoma blamed this on a fall in orders. Its cement business reported a 4.22% fall in sales revenue to US$1.2bn from US$1.25bn. This was attributed to 'intense' market competition and low cement prices. Cement sales volumes rose by 7.61% to 33.5Mt. The company's overall net profit rose by 2% to US$64m from US$62.8m. However, its net profit attributable to shareholders fell by 30.9% to US$46m from US$66.6m.
Indonesia: SDIC Papua Cement Indonesia's new cement plant in Manokwari, West Papua is set to start operation later in 2016. The director general of chemical, textile and numerous industries, Achmad Sigit Dwiwahyono, West Papua vice governor Irene Manibuy and president director of PT SDIC Group Lin Bing officiated at the operation of the new kiln on 27 August 2016, according to the Indonesian News Agency. The 3200t/day plant has been built at a cost of US$500m. It is hoped that the plant will stabilise the price of cement in the province and support local infrastructure development.
LafargeHolcim makes transport deal in Iraq 30 August 2016
Iraq: LafargeHolcim's subsidiary in Iraq has signed an agreement with the General Company for Land Transport to transport 0.5Mt/yr of cement in 2016. If successful the deal could be extended for five years, according to local press. The contract is the largest in the General Company for Land Transport's history.
Saudi Arabia: Southern Province Cement has commenced trial operation at the second production line of its Bishah cement plant. The trial operation will continue until the plant reaches a contractual design capacity of 5000t/day of clinker. Once the trial is complete the plant's production capacity from its three lines will reach 33,000t/day of clinker. The company noted in a statement that there are neither expected costs nor financial impact for this trial operation. The date of full operation will be announced later.
KCP Cement to expand Muktyala plant 30 August 2016
India: KCP Cement is set to build a new production line at its Muktyala cement plant in Andhra Pradesh. The company intends to invest US$60m towards increasing the unit's production capacity to 3.52Mt/yr from 1.86Mt/yr. The upgrade will be completed by the end of 2017, according to the Hindu newspaper. Other planned works include spending US$7.4m towards building railway sidings for the plant.
ACC to expand Jamul and Sindri plants 30 August 2016
India: ACC plans to expand its plants at Jamul in Chhattisgarh and Sindri in Jharkhand as part of a US$447m capital project intended to increase the company's production capacity by 5Mt/yr to 35Mt/yr. The project will also include building a ‘couple of new plants’ according to comments made by KN Rao, Director - Energy and Environment, to the Hindu newspaper. Following the upgrades the Jmaul cement plant will have a clinker capacity of 2.79Mt/yr and a cement grinding capacity of 1.1Mt/yr. The Sindri unit will have a grinding capacity of 1.35Mt/yr.
Schade Lagertechnik gains orders in Uzbekistan and Jamaica 30 August 2016
Uzbekistan/Jamaica: Schade Lagertechnik has announced details of orders its has received from the cement industry from Kyzylkumzement in Uzbekistan and from Caribbean Cement in Jamaica.
In July 2016 Scaahde won a contract to supply two bridge type reclaimers and a stacker to Kyzylkumzement in Uzbekistan. The two reclaimers, each with a capacity of 1000t/hr and a rail span of 30m, and the 1200t/hr stacker will be delivered in the autumn of 2017 so that the plant can be commissioned in early 2018. The project is being supported with the aid of World Bank financing.
The order is part of the modernisation and improvement of cement plants that was called for two years ago by the Uzbek construction materials collective, Uzstroymateriali. This investment programme comprises nine projects for modernisation and reconstruction of plant at three of the largest cement works in the country, Kyzylkumzement in Nawoi, Akhangaranzement in the Tashkent region and Bekabadzement also in the Tashkent region. The investment volume at Kyzylkumzement alone is in the order of US$40m. Currently there are six cement plants in Uzbekistan with a total installed capacity of around 8Mt/yr.
Schade will also supply a full-portal reclaimer for limestone, with a capacity of 700t/hour and a rail span of 42m, to Caribbean Cement in Jamaica in the autumn of 2017. The project phase leading up to this order had been going on for almost 20 years. Rather than investing in a new machine, the initial plan was to convert an existing one. In the end the management decided that the purchase of a new machine would be more economical than incorporating all the required modifications into the existing machine.
Schade Lagertechnik produces equipment for bulk material stockyards and blending bed technology. It is part of the Aumund Group.
China: SOCAM Development has agreed to sell a 35% stake in Nanjing Jiangnan Cement for US$22.1m to Country Garden. Nanjing Jiangnan Cement produces and trades cement in Nanjing. SOCAM Development plans to sell its remaining 25% stake in Nanjing Jiangnan Cement to Country Garden at a later date, according to ET Net News.
Grupo Cementos de Chihuahua to restructure company 30 August 2016
Mexico: The board of directors of Grupo Cementos de Chihuahua (GCC) has proposed a new corporate structure to simplify GCC’s controlling shareholder structure and make such structure clearer to investors. The restructuring, if approved by GCC’s shareholders, will consist of a merger between two entities controlling GCC into GCC, in which GCC would be the surviving entity.
Once the corporate restructuring is finalised, GCC’s principal direct shareholder will be Cancem, which will hold a majority and controlling interest in the shares of GCC. In addition, as a result of the proposed corporate restructuring, if approved by GCC’s shareholders as proposed, Cemex will own a direct stake equal to 23% of the outstanding share capital of GCC and a minority stake in Camcem. Cemex has expressed that it expects to hold its interest in Camcem as a long-term investment and will therefore remain an indirect minority shareholder of GCC.
The proposed corporate restructuring has been approved by the Mexican competition regulator, the Comisión Federal de Competencia Económica, and will require the approval of GCC’s shareholders to be completed.