Displaying items by tag: Upgrade

Pakistan: Thatta Cement has signed a memorandum of understanding with China-based Qing Gong Construction Group to build a 5000t/day production line. They concluded the deal during a state visit by President Asif Ali Zardari to China, according to the Radio Pakistan. Other agreements were also signed in sectors including renewable energy.

Zimbabwe: South Africa-based Robtek is working on a ‘refurbishment’ project at Khayah Cement’s integrated plant in Harare. The project work on the kiln includes replacing 10 planetary coolers, installing 23m of kiln shell sections and refurbishing eight support rollers. Work on the raw mill includes replacing trunnion bearings, overhauling raw mill bearings, upgrading the internal diaphragm and head wall liners and installing a new double-flap valve to replace the star feeder.

Pakistan: Thatta Cement’s has increased its cement dispatches in the first half of its financial year despite a general reduction in the local market. Its cement despatches grew by 12% year-on-year to 254,000t in the six months to 31 December 2024 from 226,000t in the same period in 2023. The company’s net sales rose by 23% year-on-year to US$13.9m in the six months to 31 December 2024 from US$11.3m in the same period in 2023. It attributed this to a “…substantial increase in the retention price.” Its profit after tax tripled to US$4m from US$1.3m.

The cement producer said that it installed a 5MW solar power plant during the reporting period. It also expects to complete a 4.8MW wind farm in early 2025. The company started operating a new pre-crushing system for its cement grinding mills, supplied by Sinoma-Liyang Heavy Machinery, in mid-January 2025.

Saudi Arabia: City Cement Company has signed an agreement with the National Electricity Transmission Company to build a 106MW transmission station at its Nisah plant. Mist News has reported that electricity transmitted via the station will supplant oil generators at the plant. Construction is scheduled for completion later in 2025.

China: The Conch Zongyang Line 4 preheater modernisation project, based on KHD technology, has been selected as a pilot project under the Sino-German Energy Efficiency Improvement Demonstration in Key Industries programme. The initiative will be executed by KHD, its parent company AVIC International Beijing, and Conch Group’s research and development department. Results are expected by the end of 2025.

The programme stems from a 2023 agreement between China and Germany on climate change and ‘green’ transition cooperation. The programme was announced in 2024. It evaluated 12 candidate projects before selecting the Conch Zongyang project for its integration of technologies to achieve energy efficiency and a reduction in CO₂.

This project is one of several provided by AVIC to Chinese cement producers using KHD’s pyroprocessing, grinding, alternative fuel and digitalisation solutions.

PPC revealed plans this week to build a new cement plant in the Western Cape region of South Africa. It has entered into a “strategic cooperation agreement” with Sinoma Overseas Development Company to put together a 1.5Mt/yr integrated plant for around US$160m. It is hoped that construction will start in the second quarter of 2025 with commissioning scheduled by the end of 2026.

CEO Matías Cardarelli described more details about the project during a tie-in webcast on 16 January 2025. Specifically, the new unit will be built at the company’s integrated Riebeeck Plant site due to the quality of the local limestone and the greater reserves. In addition, all the key environmental approvals and mining rights have already been obtained. Both this plant, and the nearby De Hoek Plant, will continue to run throughout the construction and commissioning period. A decision will then be made about required staffing. PPC did not explicitly say whether the two old plants would be closed but the new plant will “replace and increase the existing capacity” at the other sites.

Points to note from the announcement start with the low cost for the clinker production line. PPC’s 1Mt/yr line at its Slurry plant cost around US$75m when it was commissioned in 2018. Sinoma also built that one. However, negative currency exchange effects make comparisons tricky. In 2015 PPC said that the cost of the Slurry line was around US$115/t. It pointed out that the price was low as it was a brownfield investment. This compares to US$107/t for the Western Cape project, another brownfield project. Other recent integrated plant projects in Sub-Saharan Africa to consider include Cemtech’s clinker plant in Sebit, Kenya (US$170/t) or West International Holding’s forthcoming plant in Buikwe District, Uganda (US$150/t). Plans for a new PPC plant in the Western Cape go back to at least 2017 when the then CEO Johan Claassen said it was preparing for a ‘mega plant.’ At the time it was hoping to replace its Riebeeck plant with a ‘semi-brownfield’ facility that would use around 25% of the current plant’s equipment. The scheme had actually been around longer but Claassen remarked that insufficient domestic demand had held it back.

The next detail to consider is that PPC is planning to build this new plant within 100km of the coast. This was addressed directly with PPC saying that the new plant would be “extremely competitive” against imports. They say it will be able to produce cement, at least, to a similar cost to imports from Vietnam. It was also remarked that only 10 - 15% of the 1Mt/yr of imports, mainly from Vietnam, go to the Western Cape with the rest heading to KwaZulu-Natal via the Port of Durban.

PPC’s plans in Riebeeck are part of its ‘Awaken the Giant’ development strategy. For its six month financial results statement to September 2024 it said that it had “early positive and encouraging signs in all lines of our business.” In South Africa its earnings were up despite lower sales volumes. Dangote Cement’s local subsidiary, Sephaku Holdings, reported a similar picture with a small bump in revenue and earnings back up after coal and fly ash supply constraints a year earlier. PPC isn’t the only cement company developing capacity. Huaxin Cement-owned Natal Portland Cement was reportedly investing US$65m in the autumn of 2024 towards expanding its Simuma Plant in KwaZulu-Natal.

The cement sector in South Africa had a couple of ownership changes in 2024. As mentioned above, China-based Huaxin Cement bought Natal Portland Cement from InterCement at the start of the year. Then, Afrimat received approval to buy Lafarge South Africa in April 2024. Both of these incomers have clear ambitions to expand in the industry. In this context PPC’s decision to finally revive its Western Cape plans, before whatever its new competitors devise, makes sense. Expect more talk of capacity upgrades in the future.

Portugal: CBMI has signed an engineering, procurement and construction contract with SECIL Cement Group for the renovation of the 1800t/day clinker line at the Maceira plant.

The project includes the installation of a new firing system and a series of upgrades to improve energy and heat efficiency. The upgrade encompasses five decarbonisation measures, including a 100% alternative fuel design rate, with the aim to decrease CO₂ emissions by 30% compared to 2019 levels. This would reportedly reduce CO₂ emissions to 550kg/t of clinker.

Spain: Votorantim Cimentos Spain will invest €3.2m in a new clinker cooler at its Málaga plant, according to Alimarket. The upgrade will reportedly reduce thermal and electrical energy consumption and avoid approximately 11,000t/yr of CO₂ emissions. The project will receive a €725,960 subsidy from the regional government of Andalusia.

Iraq: Iraq’s largest cement plant in Kirkuk has resumed operations after a shutdown in November 2024 due to environmental non-compliance and an issued fine of US$343,000. Upgrades include a new dust control system and pollution monitoring equipment. Residents of nearby Lailan have previously protested against the plant, stating that the pollution caused adverse health effects and poisoned local crops, according to Intellinews. Following inspections, the factory now reportedly meets relevant pollutant standards.

Mexico: Cruz Azul has inaugurated a new limestone crusher at its Oaxaca integrated cement plant in Lagunas in Oaxaca state. Construction of a new mill at the site has also started, according to the Herald of Mexico newspaper. It was announced in August 2024 that the new grinding mill has an investment of US$40m and it is scheduled for completion by October 2025. The company is also expanding a local hospital. The projects were presented as part of a ceremony linked to the community’s 493rd anniversary of the apparition of the Virgin of Guadalupe.