Displaying items by tag: Egypt
90% of Egyptian cement plants agree to use coal
12 May 2015Egypt: 90% of cement plants have agreed to use coal to increase their cement production, according to Egypt's Industrial Development Authority.
The authority is facilitating plant upgrades to enable coal use and ensuring that the necessary quantities of coal can be supplied, according to the head of the Industrial Development Authority, Ismail Gaber. He added that Egypt needs more than 32Mt/yr of cement to meet the needs of the domestic market.
In light of the population increase, the demand on energy has significantly increased in Egypt in recent years. The government agreed to include coal in the cement industry energy system in April 2014. Prior to that, coal was used only in the iron and steel, coke and aluminium industries. It is now also allowed to be used for electricity and cement production.
Mind the gap: cement news shortcuts
29 April 2015Striking news from Libya this week with the announcement that an investor with international backing wants to buy the majority stake in the Libyan Cement Company.
Libya holdings owner Ahmed Ben Halim is in the process of buying out the Austrian Group Asamer that originally bought a majority share for US$145m back in 2008. Most of the remaining share was owned by the Economic and Social Development Fund. Taking over the company now seems bold from a European perspective or Ahmed Ben Halim got a very good price. No financial information regarding the deal has been made public.
Libya has remained politically unstable since the civil war in 2011. According to the Libyan Herald, following the war a strike at the Libyan Cement Company's plants for lost wages stopped production. Since then two of the three cement plants the company runs in east Libya near Benghazi have remained shut due to their proximity to fighting with the Ansar Al-Sharia militia. Before the civil war in 2011 the Libyan Cement Company had a combined cement production capacity of 6Mt/yr almost half the USGS estimated production for the entire country in that year.
The Libyan Cement Company's plants are all located in the east of the country under the nominal control of the Council of Deputies based in Tobruk. Its two plants in Benghazi have remained shut due to their proximity to fighting with the Ansar Al-Sharia militia. A third plant near Derna has also had security issues. Halim told the Financial Times that he was not 'crazy' to be investing at this time. "We have a long-term strategic plan" he said, "that Libya's going to rebuild its infrastructure. And a key element of this is cement." If he can hold out until the rebuilding starts then he may just be right.
Meanwhile across the border in Egypt, Minister of Supply Khaled Hanafy announced this week that cement prices had remained 'stable' for the fifth month in row. Some commentators placed improved energy supply security at the heart of this situation allowing producers to build up inventory. However, given the situation in Libya, it is worth considering what will happen once Libyan demand for cement does pick up both in competition for energy supplies like coal and a keener export market.
Finally, our editorial director Dr Robert McCaffrey was at the IEEE-IAS/PCA Cement Conference in Toronto, Canada this week. Here's his snapshot of PCA economist Ed Sullivan's forecast for future US cement supply and demand.
Ed Sullivan's forecast for future US cement supply and demand, at IEEE in Toronto. pic.twitter.com/RUoT7uHGtg
— Robert McCaffrey (@DrRobMcCaffrey) April 28, 2015
The UK London Underground has 'mind the gap' as its well-known warning phrase to prevent passengers falling between the platform and the trains when boarding. The favourable supply gap Ed Sullivan is talking about in US will be one cement producers will definitely not want to miss.
Surplus cement supply stabilises prices in Egypt
27 April 2015Egypt: Cement producers have decided to keep the prices of cement 'stable' for the fifth consecutive month, Minister of Supply Khaled Hanafy has announced. Medhat Stephanos, head of cement companies at the Federation of Egyptian Industries (FDI), said the supply surplus is behind the price stability, according to local media.
Hanafy stated that 854,000t had been produced for the current month and that the total amount of supplied cement was 1.86Mt. Around 818,000t of cement were distributed in the local market and around 500,000t were exported between 9 and 15 April. Staphanos added to Daily News Egypt that the country's cement production capacity has increased following the introduction of coal as a source of energy, which reduced the energy problem that faced producers.
"We expected more activity in the processes of construction but those expectations were not met," said Stephanos. "Some projects were expected to start but have not started yet."
Tourah Cement to invest US$39.4m in alternative fuels
31 March 2015Egypt: Tourah Cement plans to invest US$39.4m to convert its plant to alternative fuels to recover production ability and profitability. Tourah did not make a profit in 2014.
Saudi Arabia: Saudi Arabia's cement producers have again asked the government to lift a three-year-old ban on their exports so they can supply Egypt with 6Mt of cement, according to the chairman of Saudi Arabia's Cement Association.
"We are ready to export 6Mt of our cement surplus to Egypt following the signing of large contracts between that country and global companies this week," said Jihad Al-Rasheed, chairman of the national cement committee in the council of Saudi chambers of commerce and industry. Al-Rasheed said that it was time for Saudi authorities to lift the export ban after the emergence of 'golden' opportunities for the country's cement manufacturers to export their products to nearby Qatar, which needs large quantities of building materials for the planned stadia and other facilities for the FIFA 2022 World Cup. He added that other key markets that need Saudi cement include Kuwait, Bahrain, Sudan, Yemen and Ethiopia.
"Some Saudi cement plants were constructed in border areas with the aim of exporting their products to neighbouring countries, but the export ban has inflicted heavy losses on them and could force them to lay off workers," said Al-Rasheed. He added that cement companies in Saudi Arabia are trying to reduce a surplus of >20Mt by supplying domestic projects. "Most of the local government and private sector projects now have sufficient cement supplies. We want the Saudi government to lift the ban on cement exports in line with international trade rules," said Al-Rasheed.
Saudi Arabia partially lifted the cement export ban in 2009 before enforcing it again in 2012 to ensure enough supplies for domestic projects. According to Al-Rasheed, cement demand in Saudi Arabia stood at around 57.2Mt in 2014 and is projected to grow to nearly 59.5Mt in 2015.
Egypt: Lafarge Egypt and Egyptian holding company Orascom Telecom Media (OTMT) and Technology Holding SAE have signed a memorandum of understanding (MOU) to develop a waste management framework of municipal and agricultural waste.
The memorandum, signed by Lafarge Egypt CEO Hussein Mansi and OTMT deputy CEO and COO Tamer el Mahdy, was created in an effort to process large volumes of municipal and agricultural waste into alternative fuels to be used in the Lafarge plant in Egypt and other companies.
The MOU represents a step towards sustainable development in the country and will begin the creation of a circular economy through the reduction of waste burning and dumping. The agreement will also create new employment opportunities and reduce the dependency on fossil fuels in the country.
Lafarge Cement Egypt has been providing thermal treatment solutions in Egypt for around three years in collaboration with its subsidiary Ecocem Industrial Ecology Egypt, which develops, sources and pre-treats solutions to facilitate the recovery of wastes into alternative fuels. Lafarge Egypt and Ecocem aim to achieve an average fuel substitution rate of 25% by the end of 2015.
Egypt/Ethipopia: ASEC Engineering and Management, a subsidiary of Egypt's Qalaa Holdings, has signed a one-year plant management agreement with Ethiopia's National Cement Share Company.
As per the deal, Asec will provide full technical assistance to National Cement Share Company for the operation and maintenance of the 1Mt/yr capacity cement plant. ASEC will also utilise its know-how and expertise to help National Cement Share Company to boost production volumes, cut production costs and improve product quality. Under the contract, ASEC will also introduce and implement systems for all aspects of production, quality, maintenance, warehousing and human resources, among other areas.
"This is a result of the continued efforts of ASEC Engineering and its ambitious plans to expand its business into Sub-Saharan Africa after its successful contract with Cimento Nacional Company in Mozambique," said ASEC Engineering CEO Khaled El Sebaie.
Italcementi to upgrade two cement plants in 2015
09 March 2015Egypt: Italcementi plans to upgrade two of its cement plants in 2015 via its Suez Cement subsidiary, following the two plants that it upgraded in 2014, according to Italcementi managing director Bruno Carrè.
"We will invest US$52.4m/yr for four years," said Carrè. "We finished converting two plants two plants in the first year. Now we have another two plants to complete." Italcementi will not disclose any expectations about their investments in 2015, although it expects the market to grow. In January 2015, Carrè said that its 2014 revenues will exceed US$721m, some 20% higher than in 2013, with 2015 revenues projected to grow by 10 - 15%.
Carrè said that the expansion plans are targeting renewable energy in Egpt and the Gulf. He highlighted that 2015 will see the continuation of investments to convert the energy mix and to improve Italcementi's environmental impact to international standards.
Titan reports profit in 2014
06 March 2015Greece: Titan Group has reported a return to profit in 2014 after two loss-making years. The Greece-based cement producer has reported a profit before tax of Euro46.8m up from a loss of Euor9.4 in 2013. Turnover rose by 2.7% to Euro1.16bn from Euro1.13bn. However, earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 2.6% to Euro182m from Euro168m. Titan attributed the turnaround to continuing recovery in the US, improvement in the Greek market and better performance in Turkey and Southeastern Europe. Despite this, gas shortages in Egypt hit results negatively.
By region, Titan Group saw demand for building materials in Greece grow in 2014 due to low levels in 2013 and the re-launch of a road building campaign. The company reported that utilisation rates at its cement plants in Greece depend on exports to countries with low energy costs and no constraints on carbon dioxide emissions. Total turnover for the Group's Greece and Western Europe region in 2014 increased by 14% to Euro285m. In Southeastern Europe construction activity remained subdued. Turnover fell by 3.5% to Euro208m in 2014.
The US led turnover, supplying over one-third of the Group's total turnover. Sales were led by high growth rates in Florida. Turnover rose by 14% to Euro469m in 2014. In Egypt cement demand grew by 2.4% in 2014 but gas shortages and permit application delays for alternative fuels reduced production and shrunk plant utilisation rates below 50%. Turnover fell by 22% to Euro197m although imports helped cushion profit margins.
Development activities in 2014 saw an investment in solid and alternative fuels particularly in Egypt. The first solid fuels grinding mill was brought on stream at the Beni Suef cement plant at the end of 2014.
FLSmidth to supply equipment to Egyptian cement plant
06 March 2015Egypt: FLSmidth has received two contracts from the Egyptian cement producer Misr Cement Company in Qena for the supply of equipment for a cement plant which was originally supplied by FLSmidth. The equipment to be supplied includes among others an ATOX coal mill, an OK vertical cement mill, Pfister weighing and dosing systems, MAAG Gear reducers and Airtech filters.
"We are very happy to supply this additional equipment to an existing customer with whom we have co-operated since 1999. Our newly established Products & Upgrades group will be responsible for supplying the equipment - an offering which we are currently expanding," commented President of the FLSmidth Cement Division Per Mejnert Kristensen.