Displaying items by tag: Plant
Cementi Tojik disbands and shuts Dushanbe cement plant
02 January 2024Tajikistan: Cementi Tojik announced the closure of the 1.1Mt/yr Dushanbe cement plant and its disbandment as a company on 26 December 2023. Asia-PLUS News has reported the reason for the company’s departure from the industry as a government regulation issued in mid-2023, which ordered the closure of the plant due to ‘serious’ emissions violations.
New Gas pipeline built at Najaf cement plant in Iraq
01 January 2024Iraq: A 1200m dry gas pipeline feeding the Najaf cement plant has been commissioned. The project was the first external assignment carried out by the Oil Pipelines Company, according to the National Iraqi News Agency. The plant is operated by the Southern Cement Company.
Holcim Argentina achieves 75% renewable energy use
25 December 2023Argentina: Throughout the second half of 2023, Holcim Argentina estimates that it will use 75% renewable energy. The milestone is the outcome of an agreement signed with 360 Energy in April 2023, under which the renewable power provider contributes to the energy mix at all of Holcim Argentina’s cement production facilities. Holcim Argentina says that the deal will help to eliminate 68,600t/yr of CO2 from its operations. The producer said that it also invested in upgrades to help reduce its water consumption by 6% throughout 2023.
Holcim Argentina has invested US$1m in on-going and planned upgrades to its facilities, and plans to invest a further US$4.9m.
US: The Department of Energy (DOE) has awarded US$45.6m-worth of federal funding to carbon capture projects across US industries. Among the nine projects that received grants are Argos USA’s engineering-scale carbon capture project at its Harleyville, South Carolina, cement plant and Holcim US’ engineering-scale carbon capture project at its Holly Hill, South Carolina, cement plant. The National Energy Technology Laboratory has reported that projects will focus on technologies for CO2 capture and multi-modal transport via hubs.
DOE Fossil Energy and Carbon Management Assistant Secretary Brad Crabtree said “DOE is mobilising historic levels of private sector investment in the US to capture, transport and safely and permanently store hundreds of millions of tonnes of CO2 per year from our industrial and power sectors. These demonstration and pilot projects bring us one step closer to effective and responsible deployment of the carbon management infrastructure necessary to achieve our climate goals, while also providing good paying and jobs and health benefits to communities in every corner of the nation.”
CRH looks south
20 December 2023We end 2023 with the news that CRH and Barro Group are preparing to acquire AdBri in Australia. The two companies have teamed up to buy all the ordinary shares in the building materials company that they do not already own for about US$750m. Barro already owns a 43% stake in AdBri and CRH owns just under 5% via a cash settled derivative. The plan is for CRH to buy the remaining shares so it ends up with a 57% holding in total. It requires shareholder approval at AdBri, regulatory consent and other conditions to be met to move forward.
Barro Group has been increasing its stake gradually in AdBri over the last 25 years. It hit 43% in 2019 and subsequently the Australian Competition and Consumer Commission (ACCC) investigated it. Barro Group’s course was cleared in 2020, with the ACCC determining that the acquisition would not ‘substantially lessen’ competition in the market between the two companies that overlap for the supply of cement, ready-mixed concrete and aggregates. It also found Barro and AdBri would continue to face competition locally from Boral, Holcim and Hanson. However the ACCC added that it might reopen its investigation if it received further information that altered its conclusion at that time.
The dynamic between Barro Group and AdBri is complicated because they are, at present, both partners and rivals. Barro owns a significant minority stake in AdBri, and its managing director, Raymond Barro, became the chair of the latter company in 2019. The two companies operate a joint venture, Independent Cement and Lime, which distributes cement and lime in Victoria and New South Wales, and runs a slag cement grinding plant in Melbourne. They sell goods to each other too. Yet Barro Group and AdBri also compete against each other, principally in the sale of concrete. Comments made by Raymond Barro to the Australian Financial Review newspaper indicate that this competition looks set to continue even if CRH and Barro Group buy AdBri, given the family ownership structure of the former company. To this end AdBri set up a governance framework for its board in 2015 in part to handle the interaction between the business interests of itself and Barro Group, and this was further revised in 2019. Due to this convoluted relationship, it set up an independent board committee to assess the current proposal from CRH and Barro Group with Barro family nominee directors removed from the consideration process. It then approved the proposal to the next step of negotiations.
The general consensus is that the CRH-Barro Group deal looks likely to succeed. CRH has a limited presence in Australia and Barro Group’s ownership of AdBri doesn’t seem to change much under the limited details released publicly about the proposal. Potential problems could arise from a rival bidder, if the ACCC decided to re-evaluate the situation or if the Foreign Investment Review Board became involved, but we’ll have to wait and see about these. AdBri owns two of the country’s five clinker plants, both in South Australia. Subsidiary Cockburn Cement also used to produce clinker at its Munster plant in Western Australia but this moved over to grinding-only in the mid-2010s. The company also runs three grinding plants. One of these, Cockburn Cement’s Kwinana plant, has been undergoing a costly upgrade project that overshot its original estimate. Purely in terms of active integrated cement production capacity, this places the deal at US$875/t, a high figure but not as much as CRH stumped up to buy Martin Marietta Materials’ South Texas business in November 2023.
This then leads to how CRH and Barro Group might interact running the business in the future. CRH is by far the bigger company, in charge of a multinational building materials concern, and among the world’s largest producers of cement and concrete outside of China. Its decision to make a large acquisition outside of Europe and North America marks a turning point in its growth strategy since the late 2010s. In a statement, CRH’s head Albert Manifold was quick to compare how Australia was “similar in nature to the Southern US and Central and Eastern Europe where we have a significant presence.” Barro Group, meanwhile, has doggedly been taking over AdBri bit by bit over a quarter of a century. What it gains from the current proposal is mostly unknown, but simplifying the ownership structure and delisting from the Australian Stock Exchange could offer a number of advantages to it. Their ambitions appear aligned for the moment but this may not stay the case forever.
That’s it from Global Cement Weekly for 2023. Enjoy the seasonal break if you have one. Global Cement Weekly will return on 3 January 2024.
BUA Cement starts operations on Kiln 5 at Sokoto cement plant
20 December 2023Nigeria: BUA Cement has reportedly stated operations on the new 3Mt/yr Line 5 at its Sokoto cement plant. Local media has reported that inauguration will follow in January 2024, as scheduled.
Fujairah Cement Industries to temporarily suspend cement despatches from Fujairah cement plant
20 December 2023UAE: Fujairah Cement Industries has announced an upcoming temporary suspension of despatches of cement from its Fujairah cement plant, commencing on 1 January 2024. Sales will remain suspended until at least mid-February 2024 to the start of March 2024. During the suspension, the producer will carry out a ‘major’ refurbishment of the plant.
Adbri orders new limestone carrier
20 December 2023Australia: Adbri has entered into an agreement to obtain a new limestone carrier for its South Australian cement operations, to replace its MV Accolade II vessel currently in operation there. Specifically, the new carrier will supply raw materials for the Birkenhead cement plant. It is 100% battery electric capable. Adbri has hired marine transport company CSL to supply and operate the vessel. The contract will last until 2043, with the option for two five-year extensions.
Adbri chief executive officer Mark Irwin said “The new vessel will support Adbri to increase cement volumes at Birkenhead, while also supporting the production of lower carbon products such as EvoCem cement, which uses limestone as a clinker substitute.” He continued “The new vessel is expected to start operations with a hybrid system, where electric power will replace about 25% of its diesel fuel. This is expected to reduce Scope 1 emissions by about 40% compared to the current emission intensity seen in the Accolade II operation. By 2031, we aim to achieve 100% electric power capability, further reducing Scope 1 emissions to less than 10% of the current emission intensity seen in the Accolade II operation. This milestone is a crucial step forward in our on-going net zero emission journey.”
Heidelberg Materials Canada incurs US$142,000 fine for injury to contractors at Picton cement plant
20 December 2023Canada: A provincial offences court has fined Heidelberg Materials Canada US$142,000 for ‘failing to take every precaution reasonable in circumstances under which three contractors were injured at its Picton cement plant. The workers were reportedly injured in a flash fire while replacing the plant’s jet air blower, after company engineers mistakenly overrode digital signals on both open valves between the gas supply and the area where the repair was taking place.
China: China Resources Building Materials Technology (CRBMT) subsidiary Tianyang Cement has concluded a ‘full-process intelligent cement plant’ pilot at its 2.81Mt/yr Baise cement plant in Guangxi Province. Tianyang Cement said that the pilot entailed an upgrade that has more than doubled Baise cement plant’s production volumes and reduced its CO2 emissions per tonne of cement by 24%. Tianyang Cement says that automation has reduced the plant’s unplanned shutdowns by 56% and improved product quality.