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News 04 July 2019

04 July 2019

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InterCement stops production at Pedro Leopoldo plant

04 July 2019

Brazil: InterCement is to stop production at its integrated Pedro Leopoldo plant in Minas Gerais. It plans to temporarily run the unit as a cement terminal, according to Por Dentro De Tudo. The plant has 53 employees. 28 will be relocated to other plants in the company and the remaining 25 will be made redundant.

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Raysut Cement and MSG move forward on Somaliland grinding plant project

04 July 2019

Somaliland: Oman’s Raysut Cement has agreed to build a 1Mt/yr grinding plant with MSG Group. The project will have an investment of US$40m. Raysut Cement will own 55% of the joint venture with MSG Group holding the remainder. Raysut Cement previously had plans to build a cement terminal in the country with Barwaaqo Cement Company.

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Metso Minerals and Outotec to merge as Metso Outotec

04 July 2019

Finland: Metso and Outotec have agreed to merge Metso Minerals and Outotec to create a company specialising in process technology, equipment and services serving the minerals, metals and aggregates industries. The new company will be called Metso Outotec. Metso Flow Control will be excluded from the merger and renamed as Neles and run as a separate company. The companies comprising Metso Outotec had combined sales of around Euro3.9bn in 2018.

The merger will be implemented through a partial demerger of Metso, in which all assets and liabilities of Metso that relate to Metso Minerals will transfer to Outotec in exchange for newly-issued shares in Outotec to be delivered to Metso shareholders. Outotec shareholders will continue to own their shares in Outotec.
The transaction will be dependent on shareholder and regulatory approval. The process is expected complete in the second quarter of 2020.

The current chief executive officer (CEO) of Metso, Pekka Vauramo, will become Metso Outotec’s CEO, and the current CEO of Outotec, Markku Teräsvasara, will become the Deputy CEO of Metso Outotec. Eeva Sipilä will become the chief financial officer (CFO) and Deputy CEO of Metso Outotec. The board of Metso Outotec will include board members from both companies. It is proposed that Metso Outotec’s chairman will be Mikael Lilius and that the Vice Chairman will be Matti Alahuhta.

“Today is an exciting day as we announce the transformational combination of two great companies and simultaneously create an independent leader in flow control. The combination of Metso and Outotec is a unique opportunity to deliver significant value for our shareholders with a broad presence across minerals, metals and aggregates value chains and an even stronger platform for growth and innovation,” said Mikael Liliu.

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Indian cement sector operating at 67% capacity utilisation rate

04 July 2019

India: Piyush Goyal, the Minister of Commerce and Industry, says that the cement industry has a capacity utilisation rate of 67%. In a written reply to the Indian Parliament, he said that the country had an installed production capacity for cement of around 510Mt/yr and that 337Mt was produced in the 2018 – 2019 financial year.

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Power Cement completes installation of machinery on third production line at Nooriabad plant

04 July 2019

Pakistan: Power Cement says it has completed the procurement and installation of machinery on the new third production line at its Nooriabad plant. This includes a 2.46Mt/yr clinker line and a 2.72Mt/yr cement and dispatch line. The equipment was ordered from Denmark’s FLSmdith. The cement producer says the upgrade has made it the largest in southern Pakistan with a total clinker production capacity of 3.42Mt/yr and a cement capacity of 3.73Mt/yr.

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Wind and chemical industries looking to recycle wind turbine blades as a raw material for cement production

04 July 2019

Belgium: WindEurope, the European Chemical Industry Council (CEFIC) and the European Composites Industry Association (EUCIA) have created a cross-sector platform to look into using glass fibres and fillers from old wind turbine blades as a raw material for cement production. Other methods, such as a mechanical recycling, solvolysis and pyrolysis, are being developed and considered.

In 2018 wind energy supplied 14% of the electricity in the European Union (EU), from 130,000 wind turbines. Wind turbines blades are made up of a composite material, which boosts the performance of wind energy by allowing lighter and longer blades. At present 2.5Mt of composite material are in use in the wind energy sector. In the next five years 12,000 wind turbines are expected to be decommissioned.

“Wind energy is an increasingly important part of Europe’s energy mix. The first generation of wind turbines are now starting to come to the end of their operational life and be replaced by modern turbines. Recycling the old blades is a top priority for us, and teaming up with the chemical and compositors industries will enable us to do it the most effective way,” said Giles Dickson, the chief executive officer (CEO) of WindEurope.

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LafargeHolcim reportedly interested in BASF Construction Chemicals

04 July 2019

Germany/Switzerland: LafargeHolcim has reportedly placed a bid for BASF Construction Chemicals, according to sources quoted by Bloomberg. The cement producer has reached the second round of the bidding processing, along with companies including Bain Capital, Cinven and Standard Industries. The auction of the subsidiary of BASF that produces admixtures, mortars and grouts is expected to reach as much as Euro3bn. LafargeHolcim chief executive officer (CEO Jan Jenisch said in May 2019 that the company is considering at least 10 bolt-on assets purchases for 2019.

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KHD subsidiary signs letter of intent for Euro100m order in North America

04 July 2019

North America: Humboldt Wedag, a subsidiary of Germany’s KHD, has concluded a non-binding letter of intent with an unnamed customer in North America. The letter of intent for the engineering, supply of equipment and structural steel as well as advisory services related to erection and commissioning covers a potential order volume of more than Euro100m. The customer and Humboldt Wedag intend to enter into negotiations with the aim of concluding a corresponding engineering and procurement contract. Most of KHD’s orders come from the cement sector.

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