Displaying items by tag: Plant
Ghana: Savanna Diamond Cement Co has launched operations of a 0.44Mt/yr integrated cement plant in Buipe, in northern Ghana. President John Mahama officially inaugurated the US$90m project, according to local media. The new plant uses limestone from Buipe. The plant holds a partnership with state power company GRIDCo with a 25MW substation from which 7MW is used by the cement plant and the remaining 18MW is used by the local community. Diamond Cement also owns two other cement plants in the country.
Ethiopia: Dangote Cement's new cement plant in Ethiopia will open in May 2015. Minister of Mines, Tolosa Shagi visited the plant and commented that new plants and upgrades to existing plants will enable Ethiopia to meet local demand, according to local media. The new cement plant in Oromia cost US$400m and it will have a cement production capacity of 2.5Mt/yr making it one of the largest in East Africa.
Currently, cement demand in Ethiopia is estimated to be around 7 – 8Mt/yr with cement production at 5.4Mt/yr. Once fully operational the Dangote Cement plant is hoped to raise the country's cement production to 8Mt/yr.
US: Lafarge and Holcim have announced further details on the package of assets that they propose to divest in the US as part of their planned merger to create LafargeHolcim. The divestments include:
- Lafarge's 1.1Mt/yr Davenport cement plant in Iowa and seven terminals along the Mississippi River. The units will be sold to Summit Materials for US$450m in cash plus Summit's Bettendorf, Iowa cement terminal;
- Holcim terminals in Michigan and Illinois;
- Holcim Skyway 600,000t/yr slag grinding station in Illinois;
- Holcim Camden 700,000t/yr slag grinding station in New Jersey, along with a terminal in Massachusetts.
The proposed divestments have been negotiated with the staff of the Federal Trade Commission and remain subject to review and approval by the commission. The divestments will be completed subject to acceptance by the commission and to the closing of the merger between Holcim and Lafarge.
Indonesia: Former Corruption Eradication Commission (KPK) commissioner Bambang Widjojanto joined a protest on 16 April 2015 against the construction of Semen Indonesia's new cement plant in Rembang, Central Java. However, the Semarang State Administrative Court (PTUN) ruled on the same day that PT Semen Indonesia could operate in the area.
Bambang said that the construction and operation of the cement plant could pose a threat to the ecosystem in the region. The former KPK commissioner joined the rally in front of the PTUN, which is currently holding a trial on the legality of the local government's decision to allow PT Semen Indonesia to start mining activities in the area. "We hope that the judges listen to their consciences and side with the people," said Bambang.
Residents of Rembang, Central Java, have staged a series of rallies since 2014, protesting the plan to build a cement plant in Watu Putih. They claim that a plant would impact nearby water resources and directly degrade their livelihoods. The Indonesian Forum for the Environment (Walhi), an environmental non-government organisation (NGO) that has assisted the locals, has estimated that the potential loss of water could reach 51ML.
India: Shree Cement has completed the second phase of its Ras plant in Rajasthan, which will take its cement production capacity up by 2Mt/yr. "The company has completed the phase two of Ras New Cement Unit at Bangur City, Ras, Rajasthan and enhanced its cement production capacity by 2Mt/yr with effect from 9 April 2015," said Shree Cement in a statement.
Philippines: Lafarge Republic Inc expects to raise its cement output by 17% with the opening of new mills at its plants in Rizal and Bulacan. Lafarge Republic president Renato Sunico said that the company expects to produce >7Mt/yr of cement by the end of 2015, up from 6Mt/yr at present.
The US$20.1m grinding mill at the plant in Teresa, Rizal that was inaugurated in April 2015 is expected to produce 850,000t/yr of cement. This increases the plant's output to 2Mt/yr. The new mill will also contribute to Lafarge Republic's commitment to sustainability as it reduces the plant's energy consumption by 40%. A similar 850,000t/yr capacity mill will also be installed at the plant in Norzagaray in Bulacan by December 2015. "The reason why we put up a new mill in Teresa and why we want to put up a new mill in Norzagaray, is because we want to make sure that we can serve demand," said Sunico.
With regards to the LafargeHolcim merger, no consolidation of the two companies' operations in the Philippines is required as Holcim has expressed plans to purchase some of LafargeRepublic's assets such as Lafarge Iligan Inc, Lafarge Mindanao Inc, Lafarge Republic Aggregates Inc and the Star Terminal at the Harbour Centre in Manila. CRH has also been given rights to acquire the remaining assets of Lafarge Republic, including the plants in Rizal, Bulacan, Batangas and Cebu.
Uganda: National Cement is set to invest US$198m in a new plant in Uganda, its first plant outside of Kenya. Construction of the 1Mt/yr capacity plant, located in Mbale, will start in May 2015 and is expected to be completed by the end of 2016.
The project is the first in National Cement's regional expansion plan. The company also intends to venture into South Sudan in the next three years. "The first phase of the project is expected to commence in May 2015, after which we will continue expanding the plant over a three-year period," said Narendra Raval, the chairman of Devki Group, the parent company of National Cement. "Once the main plant is operational, we will expand it to include a clinker plant, which will ensure that we are self-sufficient." The Uganda project is being funded by loans from the International Finance Corporation (IFC) and two local banks.
The plant signals increased competition in the regional cement market, which is grappling with price wars brought about by the entry of new players and expansion of established firms. Indian conglomerate Cemtech and ARM Cement, for instance, plan to set up new plants in Pokot and Kitui respectively. Nigeria's Dangote Cement has also announced plans to build a 3Mt/yr plant in Kitui.
The increased investment is set to worsen the glut and force further price cuts, placing more emphasis on volume growth and efficiency as the major profit drivers for individual companies. The increase in output is set to offset the projected 12% increase in consumption in the region over the next three years.
US: A series of scattered fires that erupted on 11 April 2015 at Essroc Cement in Nazareth, Pennsylvania have been deemed accidental by the Vigilance Hose Co.
The initial fire began shortly after 16:00 on an underground conveyor belt that transports stone from Essroc's plant II to plant I in Nazareth, said fire chief Danny Keenhold. He said an unidentified malfunction on the belt caused the fire, which began underground. The fire then ignited a separate above-ground portion of the conveyor belt. It took firefighters from seven different agencies about two hours to extinguish the fire from both ends.
There were no reported injuries to Essroc crews or firefighters. The conveyor belt will now need to be repaired. Keenhold said that in the interim trucks will transport stone between the plants.
Nicaragua: Cement companies Holcim and Cemex are increasing their investments in Nicaragua in preparation to supply the volumes required by the country over the coming years.
Holcim Nicaragua has inaugurated a US$10m project that will increase production by 30% and exceed 400,000t/yr. The business now has a new dynamic separator at its plant in Nagarote that will increase production through a more efficient use of raw materials and energy resources. It has also announced a second expansion phase, involving a US$6m investment to increase production by another 30%. The company, which has a 47% stake in the national cement market has ensured that it has sufficient reserves to produce the same volume of cement for 50 years.
Similarly, Cemex Nicaragua is building a US$55m plant in Ciudad Sandino in order to increase its annual production from 440,000t/yr to 800,000t/yr from 2017.
India/China: China's Sinoma International Engineering Co Ltd is keen to invest in cement and wind energy projects in Andhra Pradesh. Song Shoushan, Sinoma's chairman, told the delegation that it sees India as a potential market for the cement industry and that Sinoma sees Andhra Pradesh as a potential state for their biggest manufacturing facility in India.