Displaying items by tag: Plant
San Miguel Equity Investments granted tax incentives for construction of Mindanao cement plant
17 January 2022Philippines: The Fiscal Incentives Review Board (FIRB) has approved the grant of tax incentives to San Miguel Equity Investments a for the construction of its 2Mt/yr Mindanao cement plant. The Manila Bulletin newspaper has reported that the producer will pay no tax on its income from the plant during its first two years of operations, and reduced taxes during the subsequent five years.
The FIRB said that it expects the US$195m plant to stimulate downstream businesses, promote the use of energy-efficient equipment and lead to a transfer of knowledge and increased productivity in the underdeveloped area where it will be located.
Huaxin Cement starts operation at plant in Nepal
12 January 2022Nepal: Huaxin Cement Narayani has ignited the kiln at its 1Mt/yr Dhading cement plant in Bagmati. Construction of the project started in 2019 but it was delayed by flooding, disputes over land ownership and the emergence of the coronavirus pandemic. China-based Huaxin Cement originally signed an agreement with the Investment Board Nepal in 2018 to build the plant for US$140m.
South Korea: A TEC says that it has installed and commissioned a ReduDust dust treatment plantin the chlorine bypass system of Ssangyong Cement’s Donghae cement plant in Gangwon. The ReduDust plant will recover salts from dust, enabling the producer to reuse the dust in its cement production. The supplier says that it will yield 35,000t/yr of useable dust. Ssangyong Cement already uses an A TEC Rocket Mill grinding unit in its alternative fuel (AF) production at the Donghae cement plant.
Montenegro: State-owned energy supplier Elektroprivreda Crne Gore (EPCG) has proposed the gradual shutdown of its Pljevlja coal-fired plant and its replacement with a new cement plant. The company said that such a plant would eliminate Montenegro’s 750,000 – 800,000t/yr of cement imports.
The first stage of the Pljevlja power plant’s shutdown will only commence once a replacement power facility is online. Currently, the plant supplies 40% of the country’s energy. Its closure is part of Montenegro’s plan to accede to the EU as soon as 2025.
Cementos Progreso grows in Central America
05 January 2022We start 2022 with the news that Cemex is selling up to Cementos Progreso in Costa Rica and El Salvador. On 20 December 2021 Cemex announced that it was selling one integrated cement plant, one grinding plant, seven ready-mix concrete plants, one aggregate quarry and one terminal in Costa Rica and one terminal in El Salvador. The sale is valued at around US$335m with an expected completion date in the first half of 2022 subject to regulatory approval.
This sale is noteworthy because it concerns Mexico-based Cemex selling off assets in its ‘back yard’ of Central America. Once the sale completes it will retain operations in Panama, Nicaragua, Guatemala and Colombia under its Cemex LatAm subsidiary. It will also continue to operate in the Caribbean in the Dominican Republic, Jamaica and Puerto Rico. Previous divestments by Cemex over the last five years or so have tended to focus on piecemeal (or bolt-off) divestments in the US and Europe. This latest sale could be viewed in a similar way if Central America and the Caribbean are seen as a region rather than individual countries. For its part Cemex describes the divestment as part of its ‘Operation Resilience’ plan to optimise its global portfolio.
Why it chose to sell up in Costa Rica is curious given that Cemex LatAm’s cement sales volumes for the region were reported as ‘flat’ in 2019 with the exception of Colombia and El Salvador. 2020 was then a shock, like almost everywhere else, as coronavirus caused disruption reducing sales volumes. 2021 saw recovery in all of Cemex LatAm’s national markets over the first nine months. Notably, both Cemex’s revenue and operational earnings in Costa Rica grew when comparing the first nine months of 2019, before the pandemic, to the same period in 2021, unlike Colombia and Panama. For the third quarter of 2021 Cemex said that growing cement sales volumes in Costa Rica had been driven by infrastructure and housing sectors. It also added that “Our cement footprint in the country is also a very relevant component of our regional trading network. We continued exporting during the quarter, mainly to our operations in Nicaragua.” In may be coincidence but it was interesting timing to add a comment like that.
From Cementos Progreso’s perspective the new assets in Costa Rica and El Salvador are part of an ongoing expansion phase outside of its home base. At home in Guatemala the company operates three integrated plants. The third, the San Gabriel plant, started up in 2019. In the same year the company purchased Cemento Interoceanico and its grinding plant in Panama. Then in July 2021 the group commissioned its new Belmopan grinding plant in Belize as part of its Cementos Rocafuerte subsidiary. The new proposed acquisitions in Costa Rica and El Salvador start to fill in the gaps in Cementos Progreso’s network between Guatemala and Panama. The price seems on the high side for a 0.9Mt/yr integrated plant and a 0.9Mt/yr grinding unit. Yet the associated quarry, concrete plants, terminals and, crucially, the location may have made it one well worth paying. For comparison Peru-based Unacem agreed to purchase a grinding plant from CBB in Chile this week for around US$30m. Back in 2013 Lafarge sold assets in Honduras, including an integrated plant and a grinding unit, to Cementos Argos for Euro232m.
Both parties may do well out of this transaction. Cemex continues to show that it is fully prepared to sell assets anywhere as it sharpens up its operations. Cementos Progreso meanwhile is turning itself into a regional player to watch.
Uzbekistan: The state assets management agency UzAssets has agreed to sell the Uzbek government’s 87% stake in Qizilqumcement for US$174m, according to the UzDaily newspaper. Under the terms of the deal, United Cement Group will maintain the plant’s personnel and the level of their pay, implement the approved modernisation programme and continue to provide training, support social projects in Navoi region and organise events in the community.
Afghanistan: The acting deputy prime minister of the interim government in Afghanistan hosted talks between investors from Afghanistan and Russia on 4 January 2021. Anadolu News Agency has reported that the investors plan to collaborate on the establishment of a new cement company.
Acting deputy culture and information minister Zabiullah Mujahid tweeted that the meeting covered the establishment of cement plants‘in detail’. He added that the government will strive to establish investor-friendly laws.
Qassim Cement planning new mill and solar unit at Buraydah plant
05 January 2022Saudi Arabia: Qassim Cement has entered into a preliminary agreement with China-based Chengdu Design & Research Institute of Building Materials Industry (CDI) for the engineering, supply and construction of a cement mill at its integrated Buraydah plant. The new mill will have a production capacity of 300t/hr. The project is budgeted at around US$40m and it has an implementation period of 15 months. More binding detailed contracts are expected to be signed by mid-January 2022.
The cement company also plans to appoint a consultant to define the scope of work and identify contractors to build a 30MW solar unit near the Buraydah plant. It said that the company would not incur any capital or operational expenditure as the payment would be based on actual consumption. The solar unit project is part of the country’s Saudi Vision 2030 strategic framework to reduce dependence on oil.
Argentina: Welding Alloys Argentina has manufactured and delivered a key set of wear parts for the classifier section of an FLSmidth OK 36.4 type vertical roller mill installed at an unnamed cement plant. The parts were manufactured at a workshop in San Nicolás near Buenos Aires.
They included a new 5000mm diameter by 2760mm high fine separator section complete with full set of vanes. The section was manufactured in two halves for later assembly on the customer’s site with vanes made from 13 sheets of 6+4 Hardplate 100 and flanges from 16mm 450HB through hardened plate. Also included were the lower cone section manufactured from eight sheets of 8+6 Hardplate 100, the upper cone section from 11 sheets of 10+4 Hardplate 100 and the discharge tube manufactured from 8+5 Hardplate 100, all flanged with 450HB through hardened plate.
Melón seeks pozzolana supply for cement plants
29 December 2021Chile: Melón has filed an Environmental Impact Statement with the authorities in Santiago for a project to extract pozzolana at a site at Culiprán in Melipilla. The deposit has total reserves of 20Mt and an extraction rate of 0.4Mt/yr is anticipated, according to Minería Chilena. Pozzolana from the site would be used to supply Melón’s cement plants at La Calera and Ventanas