Displaying items by tag: Algeria
Algeria: According to All Africa, the Algerian minister of Industry and Mines Abdeslam Bouchouareb has said that the country is moving towards, "Self-sufficiency in cement and steel products thanks to the new facilities that will be operational in the short term."
Bouchouareb said that Algeria, which imports about 3Mt/yr of cement, "Will manage to cover its needs and even over produce by 2016." It will be the first time since independence from France in 1962 that the country will cease cement imports.
Two new cement plants in Biskra with a total production capacity of 4Mt/yr will, besides the national network of operating cement plants, meet the demand of the domestic cement market. Privately-owned La Biskrie des Ciments will be operational in December 2015 with an 1Mt/yr of cement production capacity.
Algeria: Qalaa Holdings, an investment company in the Middle East and Africa, has reported that its revenue in the first quarter of 2015 grew by 42.5% year-on-year to US$256m. Growth was driven mainly by operational improvements at ASEC Cement's Sudan subsidiary Al-Takamol, which recorded 157% year-on-year revenue growth. The energy and cement segments contributed 71% to its consolidated revenues.
Qalaa Holdings reported that its earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at US$36.2m, an eight-fold increase on the same period of 2014. It had a net loss after tax and minority of US$14.7m in the first quarter of 2015, a 51.6% year-on-year improvement. Foreign exchange charges rose to US$6.95m, compared to a gain of US$1.71m in the first quarter of 2014. Qalaa Holdings' cement and construction unit ASEC Holding recorded US$10.2m in foreign exchange losses due to its stake in dollar-denominated ASEC Holding Convertible.
Qalaa Holdings' plans for the future include several cement divestments. Negotiations are progressing for the sale of ASEC Cement's operations in Algeria, with an Algerian Holding Company in the cement industry being the natural buyer for Zahana Cement as it already owns 65% of the company. The greenfield plant in Djelfa, Algeria is being bid for by two Algeria-based industrial groups.
Algeria: The construction works of an Algerian-South African cement plant with a capacity of 2.2Mt/yr will begin shortly, according to Abdelkrim Mansouri, Director General of the Algerian National Development Agency for Investment (NDAI). "All administrative procedures have now been finalised and the initiators of this project will start the work of constructing the plant shortly," he said.
This project is the result of a partnership between Hodna Algerian Cement Company and leading South African cement producer PPC, concluded in accordance with rules that stipulate a maximum 49% ownership by foreign firms in Algerian-based investments. At a total cost of US$287m, the plant will be 80% financed by Algerian banks and 20% financed by the two joint venture partners.
Algeria: Germany's Gebr. Pfeiffer SE has won a contract through the Chinese General Contractor CBMI to supply a MVR 6700 C-6 type cement mill and a MVR 6000 R-6 raw mill, both of which will be installed at the Lafarge cement works situated near the Algerian town of Biskra. The cement mill is the second-largest in the world after a mill supplied by Gebr. Pfeiifer to Holcim's Barosso plant in Brazil.
The cement mill, featuring Gebr. Pfeiffer's MultiDrive® concept with an installed total drive power of 9125kW, will produce 231-342t/hr of OPC ground to a product fineness of 3700-4800cm²/g according to Blaine.
The raw mill, which will come equipped with a conventional drive with an installed power of 6120kW, is designed to grind 680t/hr of cement raw material to a finished product fineness of ≤12% R 90 µm and 460t/hr of limestone to a product fineness of ≤1% R 150µm.
The delivery of the mills is expected in the summer of 2015.
Algeria has been steadily building up cement industry interest over the past few months. In late 2013 Lafarge opened its fourth world research laboratory in Algiers. Then this week South African producer PPC confirmed its intention to enter the local market with a new plant and German construction firm ThyssenKrupp announced an order to build a cement plant for Groupe Industriel des Ciments d'Algérie.
According to United States Geological Survey (USGS) data, Algeria saw its cement production more than double from 9Mt/yr in 2002 to 20Mt/yr in 2011. At present Global Cement Directory 2014 figures places the country's cement production capacity from 21Mt/yr with 30Mt/yr a reasonable estimate for 2017. Throw in similarly rising gross domestic product per capita, US$7500 in 2013, with infrastructure investments of US$286bn planned and Algeria appears to be a promising investment for the cement market.
Lafarge, which holds minority stakes in two cement plants in the country, reported that market demand was high in 2012. Its cement sales rose by 9% year-on-year in 2013. The other major foreign player, ASEC Cement, reported in its 2012 financial report that Algeria consumed 21Mt of cement in 2012 but that it had to import 3Mt that year. ASEC was planning to build a 3.16Mt/yr plant at Djelfa to plug that market gap. Yet news reports in early 2013 reveal that the project was paused due to financial issues at ASEC with the suggestion of a possible downgrade to a 1.5Mt/yr production capacity instead.
The decision by PPC to build in Algeria is the first big project by one of Africa's international sub-Saharan cement producers north of the Sahara. It steps away from PPC's expansion strategy so far of building projects out from South Africa. Hodna in Algeria is a long way from Johannesburg! It will also cause tension between PPC and whoever is supplying imported cement to Algeria, most likely indebted southern European producers. Both PPC and its Nigerian competitor Dangote are used to fighting foreign imports to their core markets. Data from the Algerian customs office show that the value of cement imports to Algeria in 2013 rose by 26% year-on-year to US$395m. That's a market worth fighting for.
Algeria: ThyssenKrupp Industrial Solutions has received an order to build a 6000t/day cement plant for Société des Ciments de Ain El Kebira (SCAEK), a subsidiary of Groupe Industriel des Ciments d'Algérie (GICA). The cement plant will be built in Ain El Kebira with start-up planned for 2016.
The order includes the supply of components for raw material processing, clinker manufacture and cement loading, the installation of a laboratory automation system for quality assurance and monitoring and the turnkey handover of the plant to the customer.
The key components are a 2000t/hr crusher for limestone and marl, a 500t/hr crusher for aggregates and a 50,000t capacity circular blending bed. Raw materials will be ground in two Polysius QUADROPOL QMR2 roller mills, with a throughput 350t/hr and a 30,000t homogenising silo will be used to store raw meal.
The kiln line comprises a five-stage, two-string PREPOL AS preheater, a 5.2 x 78m rotary kiln and a Polysius POLYTRACK cooler with intermediate crusher. Cement grinding will be carried out in three ball mills with high-efficiency SEPOL separators (5 x 14.5m, 6000kW central drive). Four storage silos each with a capacity of 20,000t of cement, four packaging lines, and six automatic and two manual loaders round out the plant. The Polysius POLAB laboratory automation system will be installed for quality monitoring and control.
Algeria: PPC announced its advanced plans for entry into the Algerian cement market on 24 February 2014, through a partnership with Algerian private investors that would see it own a 49% stake in the Hodna Cement Company.
The transaction will be funded on a project finance basis, with 80% debt funding from local banks, according to PPC. The stake, which was bought for an undisclosed amount, will see PPC assume management control of Hodna, allowing for the consolidation of the financial results of the project into the PPC group accounts.
According to PPC, Hodna will construct a 2Mt/yr cement plant for US$350m in the Hodna area, which is roughly 300km east of Algiers. PPC is already building cement plants in Ethiopia, Rwanda and the Democratic Republic of the Congo.
"This project sees us entering yet another African country and gives us confidence that by 2017, 40% of PPC revenues will be earned outside of South Africa," said CEO Ketso Gordhan.
"The Algerian cement market is very attractive, as consumption exceeds local production by approximately 3Mt/yr. Moreover, the Algerian government has committed itself to large-scale capital spending programmes, including the US$6bn New City Hassi Messaoud project, which will see the rollout of thousands of housing units," he said, adding that this would "certainly boost the demand of cement in this country."
The company said that once the feasibility study has been concluded, construction of the plant will take up to 30 months, with commissioning anticipated by the fourth quarter of 2016. As with its other expansion projects, PPC said it would engage China's Sinoma International Engineering as the contractor to supply and build the plant, supported by India's Holtec Consulting.
"With a population of close to 40 million people, of which 74% live in urban areas, combined with a relatively high GDP/capita of US$5582, Algeria still requires the construction of 225,000 housing units per year to meet demand. The national housing shortage in Algeria is estimated at 1.2m units," stated PPC.
Algeria: South African cement firm PPC has announced that it will buy a stake in an Algerian cement company as part of its drive to boost sales outside its home market.
PPC said that it will buy a 49% stake in Hodna Cement, which plans to construct a US$350m plant in the country. PPC did not disclose how much the deal will cost, but said that it will be funded on a project finance basis, with 80% of the debt to be sourced from local Algerian banks.
"This project sees us entering yet another African country and gives us confidence that by 2017, 40% of PPC revenues will be earned outside of South Africa," said PPC CEO, Ketso Gordhan. PPC is also constructing cement plants in Ethiopia, Rwanda and the Democratic Republic of Congo.
Algeria: Lafarge inaugurated its fourth laboratory dedicated to research in construction materials in Algiers on 18 November 2013. The Euro1.75m laboratory is the first such facility that the multinational cement producer has opened in Africa.
Luc Callebat, CEO of Lafarge-Algeria, described the laboratory as a "platform technology to coordinate and accelerate innovation to serve the needs of the Algerian construction market," during the inauguration ceremony. The project is intended to meet increasing demand for housing in terms of quality, cost and energy efficiency. The laboratory joins Lafarge's existing network in France, China and India.
Covering an area of 2290m2, the research laboratory includes control laboratories and research in cement, concrete, aggregates and building systems. The laboratory also organises specialised training in the construction industry.
Algeria: ASEC Cement has completed an upgrade at its Zahana plant, in western Algeria.
"Zahana Cement Company, our key Algerian subsidiary, has just concluded the largest overhaul in the plant's long history," said ASEC Cement CEO Giorgio Bodo. The upgrade is expected to bring a 20% year-on-year increase in production of both clinker and cement. In addition the deployment of new bag filters has decreased the plant's dust emissions. Following the upgrade Zahana's clinker capacity is 0.90Mt/yr.
ASEC Cement has now begun work on a US$30m project to construct a new raw mill at Zahana that will be fully operational by 2014, raising Zahana's clinker capacity to 1.2Mt/yr. In addition the plant has started work on a new kiln line, for completion by 2015, which will increase clinker capacity to 2.7Mt/yr and cement capacity to 3.0Mt/yr.
Zahana, located 40km from Wahran, had a cement capacity of just 0.65Mt/yr in 2008 when ASEC Cement took over management of the company. ASEC Cement has a 35% equity stake at Zahana in partnership with the Government of Algeria.