Displaying items by tag: Plant
India: Shree Digvijay Cement plans to more than double the capacity of its Digvijaygram cement plant in Gujarat’s Jamnagar District to 3Mt/yr from 1.2Mt/yr. Projects Today News has reported that the project will begin by mid-2023, and will also include the establishment of a waste heat recovery (WHR) plant.
The battle of the cement billionaires
08 June 2022We return to India to discuss a potential fight that may be brewing in the cement sector. Competition between UltraTech Cement and Adani Group started when the latter won the race to buy Holcim’s cement assets in the country in May 2022. However, the rivalry stepped up a notch this week when UltraTech Cement responded by approving a US$1.7bn investment for expansion.
The leading Indian producer announced that it was committing the funds towards increasing its cement production capacity by 22.6Mt/yr. This will include a mixture of expansions to existing sites and building new plants such as new integrated units, new grinding units and new terminals. UltraTech Cement currently has a previous round of expansion that is set to be completed by the end of the 2023 financial year. Commercial production at the newly announced projects is forecast to start by the end of the 2025 financial year. The company finished off by saying that the upgrade projects would maintain its position as the third largest cement producer outside of China, with its total production capacity rising to 159Mt/yr.
Unusually for these kinds of press releases though, UltraTech Cement made of point of doing the calculation for any readers who might want to know how much this new capacity might cost. It is US$76/t. Adani Group didn’t do this when it said it had agreed to buy Ambuja Cements and ACC from Holcim but, unsurprisingly, it cost more, at least US$94/t based on the cash figure Holcim released for the deal. Note that Adani Group has valued the acquisition at US$10.5bn, which would put the capacity cost up to US$150/t. Other zingers in the press release included Kumar Mangalam Birla’s quote that his company held, “... a deep and nuanced understanding of the market dynamics of the cement industry.” Both of these additions to the statement suggest that UltraTech Cement is making a point about its new competitor.
Bloomberg has framed the actions of UltraTech Cement and Adani Group in the cement sector as a brewing corporate battle between old and new money. Both Kumar Mangalam Birla, chair of Aditya Birla Group - the owner of UltraTech Cement, and Gautam Adani were in the top 10 of the Forbes list of the richest people in India in 2021. Birla comes from inherited wealth, although he has undeniably expanded UltraTech Cement greatly during his tenure as chair. Adani is self-made. Cement is just part of the empires of both men but one risk to UltraTech Cement is just how fast an expansion-driven competitor with concerns in power generation and logistics might decide to try to shake up the cement sector.
It is interesting at this early stage to glimpse part of the potential strategies both cement companies may be employing. Adani Group is in the process of buying its way into the cement sector at a relatively high price for capacity. UltraTech Cement is responding by building new capacity at a lower price. Research by Kotak Institutional Equities cited in the Bloomberg article suggests that Adani Group could increase its 70Mt/yr capacity up to 100Mt/yr at US$80 – 90/t. This would cost up to around US$2.5bn but it’s not impossible. Kotak also reckons UltraTech Cement can eke out around US$3 – 4/t more in earnings before interest, taxation, depreciation and amortisation (EBITDA) compared to the existing Ambuja Cements and ACC assets. Adani Group might be able to cut this gap down through creating synergies by further merging the two companies.
This adds to the feeling that UltraTech Cement is in a stronger position as the incumbent market leader. Yet risks abound in the current inflationary conditions and even less is certain if Adani Group is prepared to invest heavily enough. After all, UltraTech Cement had a production capacity of only 23Mt/yr in 2010. Less than a decade later it became India’s largest cement producer. It is now Adani Group’s next move in the battle of the cement billionaires.
Mali: A foundation stone has been laid for the new Atlas 0.8Mt/yr cement plant in Dio-Gare. The project had an investment of around US$80m, according to Mali Actu. It is expected to be completed in mid-2025. The project is being financed by Papa Oumar Samake, the head of Atlas. The President of the National Transitional Council, the Prime Minister, the Minister of Territorial Administration and Decentralisation, the Minister of Industry and Trade, the Governor of the Koulikoro region and the local mayor attended the ceremony.
Russia: A study commissioned by the National Association of Manufacturers of Building Materials and the Construction Industry (NOPSM), SM PRO and Soyuzcement, the national cement manufacturing union, has found that 80% of components required for repairs and upgrades to cement plants in Russia are manufactured abroad. The research was intended to assess the sector’s requirement for foreign equipment and to determine the prospects for import substitution. The results of the survey were presented in late May 2022.
Anton Solon, the executive chair of NOPSM, noted that Russian cement sector holds a ‘critical’ dependence on imported equipment. He said that domestic analogues were either ‘significantly’ inferior to imports or simply not available. The main equipment affected included separators, burners, drives, compressors and grinding mills. Parts for packaging lines, some types of quarry equipment, grinding media, refractories, additives and linings were also negatively affected. However, he did point out that low-efficiency and large-sized gas cleaning plants (including bag and electrostatic precipitators) were produced domestically. Vyacheslav Shmatov, the chairman of Soyuzcement, called for the development of local engineering products to remedy the situation.
Germany: ThyssenKrupp Industrial Solutions’ Polysius division says that it has been commissioned by Buzzi Unicem, HeidelbergCement, Schwenk Zement and Vicat to build a pure oxyfuel kiln system at the Mergelstetten cement plant as part of the Cement Innovation for Climate (CI4C) project. No dates of the start of construction or final project commissioning of the industrial trial have been disclosed. CI4C was originally formed in 2019.
The Polysius pure oxyfuel process is a new type of clinker production process in which the otherwise normal ambient air is replaced by pure oxygen in the kiln combustion process. One advantage of the technology is that atmospheric nitrogen is eliminated from the clinker burning process leading to much higher concentrations of CO2 in the exhaust gas compared to a conventional kiln. As such the process aims to concentrate, capture and reuse almost 100% of the CO2 produced in a cost-effective manner. The medium-term goal is to further process the captured CO2 with the help of renewable energy into products such as kerosene for air traffic.
Sweden: Cementa has completed its feasibility study for a carbon capture and storage (CCS) system at Slite cement plant in Gotland. The producer says that it will now proceed to the next stage of the project, with the aim of producing climate positive cement from 2030. Sister company Norcem is currently building a 400,000t/yr CCS system at its Brevik cement plant in Norway. Cementa says that its new system will have four times the capacity of that at the Brevik plant, and reduce Sweden's total CO2 emissions by 3%. One or more of 'several storage solutions' currently under development in the North Sea will serve to store the plant's captured CO2 emissions.
General manager Giv Brantenberg said "With the knowledge we have built up through our pioneering project at Norcem in Brevik, we now have a good picture of how to move forward in Sweden. The Nordic countries have what it takes to lead the climate transition in the construction sector."
UK: Hanson plans to install a C-Capture solvent-based carbon capture system at its Ketton cement plant in Rutland. The producer says that the technology reduces energy requirements per tonne of CO2 by 40% compared to other capture systems.
Chief executive officer Simon Wills said “Carbon capture is a critical part of our strategy to decarbonise cement production, and essential if we are to reach net zero carbon by 2050. If successful, the C-Capture process has the potential to be rolled-out across other sites across the HeidelbergCement Group.”
Whale Rock Cement cleared to resume operations
01 June 2022Namibia: The Namibian government has granted Whale Rock Cement permission to resume production of its Cheetah brand cement at its Otjiwarongo grinding plant. Authorities suspended operations at the plant on 10 May 2022.Labour Ministry acting executive director Lydia Indombo cited multiple contraventions of occupational safety regulations, including failure to issue personal protective equipment (PPE), failure to maintain good housekeeping, lack of sanitary conveniences and lack of first aid equipment, as the cause of the suspension.
Indombo said "The ministry conducted verification inspections on 16 and 20 May 2022 to evaluate the compliance on the identified shortfalls and is satisfied with the level of compliance." She added that the ministry had recommended the resumption of production activities.
Zimbabwe: Germany-based Gebr. Pfeiffer says that a new MVR 3070 C-4 mill for cement grinding is due to be commissioned at Holcim Zimbabwe’s integrated plant at Manresa near Harare. The order was handled by the Chinese contractor CBMI.
The roof at the plant collapsed over a cement mill in October 2021 leading to a reduction in production volumes at the plant. The mills were restarted in February 2022 but one of the one of the existing cement ball mills was decommissioned. This mill is being replaced by the new vertical roller mill supplied by Gebr. Pfeiffer. It is expected to double the plant’s cement production capacity after it is commissioned in the second quarter of 2022.
US: Buzzi Unicem USA plans to switch from producing Ordinary Portland Cement (OPC) to Portland Limestone Cement (PLC) at all of its plants by the end of 2022. It said that it intends to transition from traditional ASTM C150 type I and II (OPC) cements in favour of ASTM C595 type IL cement (PLC). So far its Cape Girardeau and Festus plants in Missouri, Greencastle plant in Indiana, Maryneal plant in Texas and Pryor plant in Oklahoma have already completed the move to the PLC. The San Antonio plant in Texas will complete its transition in June 2022, the Chattanooga plant in Tennessee will switch its product line by September 2022 and the Stockertown cement plant in Pennsylvania will complete its conversion later in 2022. The company added that its engineers will continue working to increase the limestone content in cement by up to the permitted 15% and develop High Early Limestone cement, along with other new cement products with reduced clinker content.