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Displaying items by tag: CNBM

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Supplying the cement industry

06 February 2019

Two supplier news stories this week presented a snapshot of the global cement industry. The first was FLSmidth’s annual results for 2018. The second was the announcement by France’s Fives that it had signed a collaboration agreement with China’s CNBM.

Overall FLSmidth reported its highest order intake in six years with revenue growth driven by its minerals division. On the cement side though the equipment manufacturer was blunt, describing the market for new cement capacity as, “subdued with low plant utilisation globally.” In its assessment a slow increase in global consumption outside of China was not enough to absorb overall production overcapacity. It said it saw a ‘healthy’ level of small to mid-sized orders for grinding plants, upgrades, retrofits and single equipment orders. The market for replacements and upgrades was identified as a strategic focus. It also noted environmental upgrades for plants in China and India as environmental regulations tighten.

Fives’ news touched on the rivalry that western-based manufacturers have faced from Chinese competitors. Fives and CNBM have agreed to explore projects together in new plants, expansions and upgrades. Although the press release was brief, this seems to involve CNBM using Fives technology such as grinding mills, pyro-lines and burners. Like the rest of the industry Fives has had a tough time of it in recent years in the cement sector although 2018 seemed to have improved considerably at the nine-month stage in September 2018. So signing an agreement with a competitor at this stage is interesting. FLSmidth did a similar deal with CNBM in mid-2018 when it signed a framework agreement for future collaboration.

The context here is that the new plants that are being built are often part of China’s One Belt, One Road Initiative, typically in Central Asia or Africa. Mostly these plants are being financed by Chinese joint ventures and built by Chinese suppliers. This week Reuters published a map of new cement plants being built in 2018 with Chinese involvement along the silk road using Global Cement data. Rightly, FLSmidth and Fives are taking steps to be a part of this growth.

Figure 1: New Chinese cement plant projects outside of China in 2018. Source: Reuters using Global Cement data. 

Figure 1: New Chinese cement plant projects outside of China in 2018. Source: Reuters using Global Cement data.

There is a tendency in the western press to play up Chinese imperial ambitions exemplified by US Vice President Mike Pence’s comments at the Asia-Pacific Economic Cooperation summit in Papua New Guinea in November 2018. Yet, Sinoma International Engineering, one of CNBM’s engineering subsidiaries, reported that its new order intake fell by 14% year-on-year to US$4.56bn in 2018. No reason for the decrease was given but most of this fall seemed to come from its construction division. In turn most of this came from a fall in foreign orders. The implication is that China’s attempts to move its cement industry out of the country may not be happening fast enough to preserve the size of these companies.

Returning to European equipment suppliers, FLSmidth summed up its response to this situation in its annual report. The cement market is split between premium and mid-market projects, with the latter dominated by Asian suppliers. FLSmidth says it is targeting the mid-market by becoming the preferred original equipment manufacturer (OEM) of choice. They are not alone in their ambition as the Fives deal shows.

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CNBM and Fives sign collaboration agreement

01 February 2019

China/France: China’s CNBM and France’s Fives have signed a cooperation frame agreement for future collaboration. The cement plant equipment manufacturers will explore projects together, in plant upgrade, plant expansion and new plants to implement Fives technologies, such as the FCB Horomill grinding system, the FCB Pyro-line and Pillard burners on an international basis. The signing ceremony of the agreement took place in late January 2019 bringing together Song Zhi Ping, the chairman of CNBM and Frédéric Sanchez, the president of Fives.

Published in Global Cement News
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Eurocement to commission new line at Akhangarancement by 2021

30 January 2019

Uzbekistan: Russia’s Eurocement plans to commission a new 3Mt/yr production line at the Akhangarancement in Tashkent region by 2021. Company president Mikhail Skorokhod discussed the project with representatives of the Chamber of Accounts of Uzbekistan, according to Uzbekistan Daily. US$160m is being spent on the new line and US$40m will be invested towards other improvements at the site. Work on the upgrade stated in October 2018. China’s CNBM is the main contractor on the project.

Published in Global Cement News
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Construction ready to start on Sinoma and Hengya Cement plant in Tanzania

25 January 2019

Tanzania: The Tanzania Investment Centre (TIC) says construction of a new 7Mt/yr cement plant by China’s Sinoma and Hengya Cement is due to start soon. TIC executive director Geoffrey Mwambe said that the government body had provided all the necessary incentives for the US$1bn project, according to the Citizen newspaper. The TIC licence gives investors a three-year window in which to start construction, otherwise the licence revoked.

The Chinese company plans to build a cement plant with a 1200MW captive power plant. At least 70% of the cement produced at the plant will be exported and the remainder will be sold domestically. The unit is expected to create 4000 - 8000 direct and indirect jobs.

Published in Global Cement News
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Devki Group orders waste heat recovery unit from Sinoma Energy

22 January 2019

Kenya: Devki Group has ordered a waste heat recovery (WHR) unit from China’s Sinoma Energy for its Athi River plant as part of a US$250m package. The deal also includes supplying a power plant for the company’s steel plant in Kilifi, according to the Daily Nation newspaper. Both projects will be completed by late 2020.

Published in Global Cement News
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Sinoma International Engineering new order intake drops by 14% to US$4.56bn

21 January 2019

China: Sinoma International Engineering’s new order intake fell by 14% year-on-year to US$4.56bn in 2018. No reason for the decrease was given but orders from its construction business segment fell by 10% to US$3.43bn. By region, local Chinese orders rose by 34% to US$1.3bn but foreign orders dropped by 24% to US$3.26bn.

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Installation work starts at L'Amalí plant upgrade project

08 January 2019

Argentina: China’s Sinoma International says that it has successfully lifted the first steel column of the pre-heater tower on a 5800t/day production line it is building at Loma Negra’s L'Amalí cement plant. The work in late December 2018 marked the start of the installation phase of the project. It is the subsidiary of China National Building Material’s (CNBM) first engineering, procurement and construction (EPC) project in South America. When the project was first announced in late 2017 it had a completion date of early 2020.

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Aumund to supply clinker-conveying equipment to projects in Algeria

08 January 2019

Algeria: Germany’s Aumund has received two clinker conveying equipment orders for cement plants at Zahana and Bechar. The two orders comprise 26 belt and chain bucket elevators, two bucket apron conveyors, ten pan conveyors and ten drag chain conveyors. No value for the deals has been disclosed.

The first order is for the 4500t/day Société des Ciments de Zahana (SCIZ) plant near Oran. Here three chain bucket elevators with centre distances ranging from 22.5 - 34.9m and capacities from 50 - 220t/hr will be used to convey cement and clinker. 11 belt bucket elevators (22.5 -116.1m) will convey raw meal, cement and clinker with capacities between 190 - 680t/hr. The Aumund bucket apron conveyor, with a centre distance of 61.1m and a capacity of 360t/hr, will join the five Aumund pan conveyors (18.3 - 106.8m, capacity 300 - 360t/hr) in conveying clinker. The ten Aumund drag chain conveyors with centre distances between 6.1 - 33.8m will be used in clinker dust extraction and are designed for conveying capacities from 15 - 80t/hr.

The second order is for the 3200t/day Bechar cement plant. This order was placed by China’s CBMI to Aumund Beijing with support from Aumund France. This plant will operate 15 Aumund belt and chain bucket elevators, five Aumund pan conveyors and an Aumund bucket apron conveyor for its bulk materials handling. The bucket elevators, with centre distances ranging from 11 - 102.9m, will convey raw meal, cement and clinker with capacities from 70 – 480t/hr. The five pan conveyors, with centre distances from 22.2 - 89.8m, will convey their loads at up to 480t/hr. The Aumund bucket apron conveyor in Bechar (centre distance 88.5m, capacity 200t/hr) will also convey clinker.

Published in Global Cement News
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BUA Group orders new production line from CBMI

07 January 2019

Nigeria: BUA Group has ordered a 3Mt/yr production line from China’s CBMI for its Kalambaina cement plant in Sokoto State. It follows the commissioning of a 1.5Mt/yr line at the site in mid-2018, according to the This Day newspaper. The company also completed a new line at its Obu plant at Okpella in Edo State in late 2018. BUA Group will have a production capacity of 11Mt/yr once the new project is completed. BUA Group is also in the process of merging with the Cement Company of Northern Nigeria (CCNN).

Published in Global Cement News
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Global Cement and Concrete Association takes form

28 November 2018

Chief executives from over 30 companies attended the Global Cement and Concrete Association (GCCA) inaugural event last week in London. Its first president Albert Manifold, the chief executive officer (CEO) of CRH, laid out the line by saying that, “For the first time we have a global advocacy body.” He followed this up by emphasising that ‘our product’ is the most used man-made product in the world. Just like the Cement Sustainability Initiative (CSI), the body the GCCA is partly-replacing, it is a CEO-led organisation. The target is very much about giving a global voice to the cement and concrete industries and the vertically integrated companies that produce these products.

Along with the head of CRH, the leaders of LafargeHolcim, HeidelbergCement, CNBM, Votorantim, Buzzi Unicem and Eurocement, amongst others, were all on the attendance list too. That kind of representation gave the event a charged air and a real sense of intent. At present the association says it represents 35% of global cement production and its aim is to reach 50%. That compares to the 30% base that the CSI had.

Representatives from some major cement associations were also present, including Europe’s Cembureau, the Federación Interamericana del Cemento (FICEM), the Canadian Cement Association and the VDZ. The only thing stopping the US Portland Cement Association being there was reportedly the Thanksgiving holiday. Although not comprehensive, that kind of representation suggests serious interest from the regional cement associations. The word from the GCCA CEO Benjamin Sporton was that the GCCA is here to provide a global level of coordination to the advocacy and sustainability side of the industry dealing with global organisations like the United Nations (UN), development banks, other associations and non-government organisations (NGOs).

How this will work in practice has yet to be seen, but at the very least, the GCCA can take over the work of the CSI and run with it. The word from the attendees we spoke to was uniformly positive for the association. It was seen as a long-overdue move to finally give the industry some sort of uniform voice at a global scale. In this sense it is catching up with similar bodies in industries like wood and steel. One benefit from moving from the CSI to a full advocacy organisation is that the industry can actually talk about the good things it does rather than being limited to sustainability and environmental data reporting. It seems like a small change in focus but it’s a big shift in mind-set.

A cynic might suggest that the exercise is one of a dirty industry trying to wrest the Overton window, or window of public discourse, back from legislators facing mounting environmental pressure. The latest UN Emissions Gap Report for 2018, for example, reported this week that CO2 emissions rose in 2017 after four consecutive years of decline. This is the latest environmental report in a long line pointing out bad news. Yet, the GCCA’s unwritten mantra, that concrete improves lives, is sound. Somebody or something needs to link it all up. That somebody might just be the GCCA.

A review of the inaugural annual general meeting and symposium of the GCCA will be published in a forthcoming issue of Global Cement Magazine.

Published in Analysis
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