Displaying items by tag: Indonesia
China: Anhui Conch's revenue rose by 22% year-on-year to US$4.68bn in the first half of 2014 from US$3.84bn in the same period in 2013. The group's net profit rose by 90% to US$945m. It attributed the growth in revenue and profit to increased sales volumes and prices.
During the reporting period, the group acquired four cement projects including Shaoyang Yunfeng New Energy Technology, Hunan Yunfeng Cement, Shuicheng Conch Panjiang Cement and Kunming Hongxi Cement. It started work on building three clinker production lines including Baoshan Conch Cement and ten cement grinding units, including Liangping Conch Cement, increasing its clinker and cement production capacities by 10.9Mt/yr and 17.7Mt/yr respectively. Outside of China, the installation of equipment at PT Conch South Kalimantan Cement in Indonesia was noted and a project in Myanmar was acknowledged as having made progress.
Four residual heat electricity generation units located at Guangxi Lingyun Tonghong Cement, Baoshan Conch and other companies were put into operation with an additional installed capacity of 36MW. The group continued to implement low-NOx staged combustion technology modification for clinker production lines and SNCR flue gas denitration technology modification. As at the end of the reporting period, the Group had completed technical upgrade of NOx reduction to 101 production lines, which are all reported to be running smoothly.
As at the end of the reporting period, the production capacity of clinker and cement of the group reached 200Mt/yr and 245Mt/yr respectively.
Indonesia: Three state cement manufacturers, PT Semen Indonesia, PT Semen Padang and PT Semen Tonasa, have been using biomass as alternative energy source to replace coal and reduce electrical energy in stages.
Semen Indonesia has won an energy award from the Energy and Mineral Resources Ministry in recognition of its efforts to diversify energy needs by taking advantage of biomass renewable energy as an alternative fuel and to play an active role in developing new technology and innovations in the energy sector.
"The award has confirmed the commitment of Semen Indonesia to implementing a concept of sustainable business," said Semen Indonesia president director Dwi Soetjipto. He added that the cement industry is an energy-intensive industry, which also consumed coal as non-renewable energy. "By taking advantage of biomass, double goals could be achieved: first, conserving the environment and second, increasing the efficiency of operating costs, which will eventually increase in corporate profitability."
The use of biomass has stimulated local economy because it had been obtained from areas around the plants, including Tuban, Lamongan and Bojonegoro Districts in East Java, as well as Rembang District in Central Java.
"The use of biomass has also helped to reduce greenhouse gas emissions so that the impact of global warming can be minimised," said Soetjipto. Semen Indonesia has always increased its use of biomass as an alternative fuel to reduce coal consumption every year, Soetjipto added.
Indonesia: PT Indocement Tunggal Prakarsa Tbk is preparing to invest US$150m towards building two greenfield cement plants in North Sumatra and in Pati, Central Java respectively. Each plant will have a cement production capacity of 2.5Mt/yr. The company is currently conducting a feasibility study, said Indocement's president director Christian Kartawijaya. The investment is intended to boost the company's production by 2018 in reaction to decreasing market share.
Indocement aims to boost its production capacity by about 45% to 30Mt/yr in 2018 when the two greenfield plants are expected to have begun operations. Currently the company produces 20.6Mt/yr of cement. The new plants will maintain the company's market share in Indonesia at 31%. The company will source the funding internally.
Indocement has allocated US$385m for capital expenditure in 2014 to boost cement production. In October 2013 the company started work on its 4.4Mt/yr cement plant at Citeureup. This plant is planned to start operation in the fourth quarter of 2015.
Indonesia: Claudius Peters has received an order from Semen Indonesia to supply three new cement storage silos for their new integrated cement plant in Rembang, Central Java.
Claudius Peters will supply three Expansion Chamber (EC type) storage silos, with a diameter of 24m and a volume of 20,000t each. Cement will be discharged to two mobile VME-type bulk loading stations underneath each silo. Separate aeroslide transport to the packing plant is also included. These three new cement storage silos will be integrated with the four new packing plants which Semen Indonesia ordered at the start of 2014 from Claudius Peters.
Indonesia: Holcim Indonesia has posted a slight dip in its net profit in the first half of 2014, which it attributed to rising costs and a slowdown in the construction and property sectors.
Sales in the first half of 2014 grew by 10% year-on-year to US$426m, stronger than the 7% growth reported for the same period of 2013 when compared to 2012. Despite the sales increase, Holcim fell short of boosting its net profit, which dropped by 3.8% to US$38.1m from US$39.6m in the same period of 2013.
On 1 May 2014, the Indonesian government raised electricity rates by 38.9% or 64.7%, depending on businesses' power needs. The increases, however, will be gradual until the end of 2014. Holcim, which must deal with a 64.7% increase in electricity rates, recorded an increase in costs of sales to US$292m, while its operating costs went up by 15.9% to US$61.6m. In addition, its first half foreign exchange losses surged to US$2.34m, compared with US$871,000 in the same period of 2013.
Holcim has gradually increased its selling prices since late 2013 to mitigate its rising expenses. Along with other industry players, Holcim also had to bear weaker property and construction demand, which saw project delays as a result of legislative and presidential elections, as well as unfavourable regulations and macroeconomic conditions.
Holcim Indonesia's president director Eamon Ginley said that, despite a number of obstacles in 2014, the company was optimistic that it would at least secure a higher annual revenue compared to 2013's figure, assisted by a boost in capacity from its Tuban facilities in East Java. The company has invested US$800m to construct two 1.7Mt/yr capacity cement plants, Tuban 1 and Tuban 2. Tuban 1 began operating in October 2013. Tuban 2 is due to commence operations in the first quarter of 2015.
Indonesia: Semen Indonesia has reported US$1.13bn of revenue in the first half of 2014, a 12.8% year-on-year increase. During the first six months of 2013, revenues grew by 31.9% compared to 2012. The decelerated growth is attributed to reduced domestic demand, which is affecting the Indonesian cement industry as a whole.
Sales volumes in the first half of 2014 grew by 4.6% year-on-year to 12.8Mt. Semen Indonesia's subsidiary, Semen Gresik, contributed almost 54% of the sales volumes. Semen Padang accounted for 26% and Semen Tonasa contributed the remaining 20% of sales volumes. Net profit for the first six months of 2014 stood at US$46.9m, a 9.3% year-on-year increase, while higher expenses and foreign exchange losses contributed to higher costs. Semen Indonesia has forecast an 8% increase in revenue for the whole of 2014.
The latest statistics from the Indonesian Cement Association show a 4% increase in domestic cement consumption in the first half of 2014, lower than the 7.5% growth reported for the first half of 2013.
Indonesia: A new cement plant being built in the Regency of Lebak, Banten Province, is expected to come on stream in 2015. Construction of the plant is already 60% completed. The cement plant, which is owned by PT Cemindo Gemilang, is being built over a 5km2 plot of land and will have a production capacity of 4Mt/yr of cement when it starts operation in 2015. The Regency of Lebak is included in the Master Plan for Acceleration and Expansion of Indonesian Economic Development, an initiative of the Indonesian government.
Indonesia: Siemens has received an order from ThyssenKrupp Industrial Solutions AG to supply an Integrated Drive System for the expansion of PT Holcim Indonesia's cement plant in Java, Indonesia. The new line will have a capacity of 4000/day. Operation is due to commence in mid-2015.
The supplied Integrated Drive System will comprise low- and medium-voltage motors as well as the associated Sinamics and Sinamics Perfect Harmony drives, including the required converter transformers, starters and compensation systems. The supply package contains 14 single-motor and multi-motor drives, 22 induction motors, one slip ring motor for the raw mill main drive and six gear units.
Siemens previously installed complete drive equipment for the first production line at the Tuban plant. Production commenced in October 2013. "By placing the follow-on contract with Siemens, we want to ensure professional project management and the smooth operation of our plant", said Sidik Darusulistyo, plant manager at PT Holcim Indonesia.
One of the ideas aired by several speakers at last week's 6th Brazilian Cement Congress was that using cement as a construction material is inherently a sustainable option.
The reasons for this included the durability of cement's construction products and the role cement plays in improving the living standards of a country. For example, under the onslaught of extreme weather like hurricanes, concrete structures are more likely to remain standing. Or, for a country like Brazil with sections of society living in long-term 'temporary' buildings in its favelas or shanty towns, providing affordable cement to help the country build better housing for its inhabitants is the only sustainable future that could be considered.
Perhaps in line with this concept of cement-as-sustainable-construction-material we see Semen Indonesia this week announcing expansion plans in three countries in South and Southeast Asia.
In West Sumatra a Semen Indonesia subsidiary has started building a 3Mt/yr cement plant in Padang. Then in Bangladesh Semen Indonesia revealed its intention to buy a 1Mt/yr plant. Finally, the state-owned Indonesian cement producer said that its Semen Gresik subsidiary was planning to build a new cement plant in Central Java at Rembang in June 2014. From previous press releases we can see that both new plants are FLSmidth builds. Both orders were announced in early 2014. Each has a capacity of 8000t/day.
The plans to expand outside of Indonesia echo reports that Semen Indonesia was set to buy a minority share in a Myanmar cement producer. Although the producer was unnamed as of early May 2014, Semen Indonesia CEO Dwi Soetjipto valued the stake at US$30m and the producer's production capacity at 1.5Mt/yr in comments to the Jakarta Globe.
Altogether the two new plants in Indonesia will place Semen Indonesia's total cement production capacity at 40Mt/yr by 2017 according to company figures. This would be enough to place the company within the top 20 of the world's largest cement producers by production capacity following the research from Global Cement's 'Top 75 global cement companies'.
In a nice coincidence, the company with a production capacity of 40Mt/yr on that list was Eurocement. Last week the Russian cement producer announced that it had signed contracts worth Euro387m with Chinese companies - including Sinoma, CNB, Sinomach and CAMC Engineering Co - to add 17Mt/yr cement production capacity across six plants in Russia. Another six or seven more construction agreements for cement plants are also expected to be signed in the coming months.
Certainly for the countries Semen Indonesia is focusing on – Indonesia, Bangladesh and Myanmar, with low gross domestic product per capita – providing the raw material for stronger and more durable buildings covers some of the sustainability bases. Yet if all these new plants only use fossil fuels and are subject to few environmental restrictions then that undermines some of this. However, whether all this expansion is sustainable or not, the cement industry never remains stationary.
Indonesia: Loesche has set up a full service hub in Jakarta, Indonesia. The office has been in full operation since January 2014 and focuses on plant modernisation and spare part supply, as well as on site support with all kinds of services for audits, maintenance, installation and commissioning activities in the entire Indonesian region.
Loesche has been present in the Indonesian market for more than 40 years and can now focus on closer client relationships and faster reaction times for the benefit of the local market. A one-day seminar took place in the Le Meridien Hotel in Jakarta on the 27 March 2014, introducing the Group's portfolio and activities. Apart from Indonesian cement producers, a wide audience from the coal mining sector attended. In addition to well-known technology for the cement sector, Loesche also introduced the newly patented coal enhancement process, which attracted much interest, especially as Indonesian miners are looking for a professional solution for coal upgrading.