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News Capacity

Displaying items by tag: Capacity

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Shree Cement to proceed with US$321m Guntur cement plant construction

20 June 2022

India: Shree Cement’s board of directors has approved the company’s plans to establish a new US$321m cement plant in Andhra Pradesh’s Guntur district.

Shree Cement currently commands an installed capacity of 46.4Mt/yr. In the 2022 financial year, it produced 30Mt of cement, corresponding to a capacity utilisation of 30%.

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UltraTech Cement to increase cement capacity to 160Mt/yr

06 June 2022

India: UltraTech Cement plans to invest US$1.67bn to expand its cement production capacity to 160Mt/yr. This corresponds to a capacity cost of US$76m/Mt/yr. The Business Standard newspaper has reported that the investment is part of parent company Aditya Birla’s planned US$9.91bn spending package to expand existing capacities and enter new sectors, including paints, via its subsidiary Grasim Industries. The investments will affect both its Indian operations and those overseas.

Published in Global Cement News
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Star Cement to establish new 3Mt/yr clinker line

06 June 2022

India: Star Cement plans to invest US$129m to establish a new 3Mt/yr clinker line. BusinessLine Online News has reported that producer currently operates 2.8Mt/yr-worth of clinker capacity across two units in Meghalaya. Star Cement says that it plans to increase its presence in the Northeast India, Bihar and West Bengal markets. It will additionally invest US$90 – 103m to establish two new grinding units with a combined capacity of 4Mt/yr at Guwahati and Silchar in Assam.

Star Cement said that projected infrastructure investment growth in Northeast India inspired its investment decision, while it opted for a 3Mt/yr kiln over a 2Mt/yr alternative due to the improved efficiencies it offers.

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Vietnamese cement accounts for 91% of Philippine cement imports in 2021

06 June 2022

Philippines: The Philippines imported 6.47Mt of cement from Vietnam in 2021, 91% of a total 7.11Mt of cement imported in the year. The Cement Manufacturers Association of the Philippines (CeMAP) recorded that total imports increased by 14% year-on-year from 6.25Mt of cement in 2020, while imports from Vietnam increased by 20% year-on-year from 5.4Mt.

The Manila Bulletin newspaper has reported that Philippine cement producers increased their production capacity by 23% year-on-year to 35.3Mt/yr at the beginning of 2022. CeMAP projected further capacity growth of 55% to 54.8Mt/yr by the end of 2025, against a domestic demand that year of 66Mt/yr.

Published in Global Cement News
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Tajikistan to export 2Mt/yr of cement by 2024

20 April 2022

Tajikistan: The government plans to increase exports of cement to 2Mt/yr by 2024. Exports are expected to grow at 0.2Mt/yr from 1.5Mt in 2021. Local production capacity was estimated at 5.6Mt/yr in 2021 from 16 plants. Over 4.2Mt of cement was produced in 2021.

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Update on Russia, February 2022

02 February 2022

Russia made imports easier last week. At the end of January 2022 an order from Rosstandart, the national standisation agency, relaxed inspection controls allowing for simpler imports from countries outside the Eurasian Economic Union (EAEU). Previously each such batch required a 28 day inspection period. This has now been dropped to encourage more imports of cement. Deputy Industry and Trade Minister Viktor Yevtukhov explained the reasoning behind the measure to InterFax, “In order to avoid problems in the domestic Russian cement market in the future, it is necessary to spur competition. It will balance the prices for this basic building material and will restrain their growth in case of such risks.”

Some idea of the situation facing the Russian cement market at the moment can be gleaned from market data supplied by CM Pro. Production rose by 7% year-on-year to 56.4Mt in the 11 months to November 2021. Imports rose by 26% to 1.6Mt at the same time. The Ministry of Industry and Trade has attributed this to a construction boom created by growth in both government-funded infrastructure projects and domestic housing. It also noted a local shortage and price increases in the Central Federal District in the autumn of 2021, although it said it redistributed cement from other regions to remedy the situation. This imbalance in the country’s main cement producing and consuming region, including Moscow, can also be seen in the figures. Production was about 2Mt below consumption in this area in 2019 and 2020. Yet so far, to November 2021, this gap grew to 2.7Mt. At the same time the price of cement reportedly jumped by 20% from November 2020 to December 2021.

Graph 1: Cement production in Russia, 2015 – 2021. Source: CM Pro and estimate from Global Cement.

Graph 1: Cement production in Russia, 2015 – 2021. Source: CM Pro and estimate from Global Cement.

It has been reported that the Ministry of Industry and Trade has also been wondering publicly why a study conducted in 2021 found that the national cement sector had an apparent operating capacity of 65Mt/yr compared to a total production capacity of 105Mt/yr, including mothballed and inactive plants and production lines. In other words the sector has been operating at a 62% production utilisation rate and the government is trying to coax it higher by opening up imports. And just to make sure that there was no confusion on the matter, Yevtukhov added, “I am sure that if the domestic producers will cope with the task of increasing the real volume of cement production and will not allow prices for their products to increase above the rate of inflation, the market will self-regulate, and additional imports of cement to Russia (which are traditionally small) will not be needed."

Given the country’s large size, imports seem to be mainly a threat to producers in the big population centres around Moscow and the Volga with good international transport links. Producers appear to have received and understood the message from the government as they have pledged to increase real operating capacity by 3 – 5Mt. The bear in the room for both Russian and European cement producers though is what happens in Ukraine in 2022. With North Atlantic Treaty Organization (NATO) members threatening economic sanctions and Russia supplying a significant share of Europe’s gas supply, any progression from the current rhetoric could cause discomfort to markets in both Russia and Europe. Turkish cement exporters, manufacturing in a NATO member country and hoping to take advantage of increased exports to Russia, could be in a particular bind if events heat up. All of this indicates that Smikom picked an interesting time to buy Russia’s largest cement producer, Eurocement, back in mid-2021. There’s an ongoing construction boom but also risks aplenty.

With apposite timing, LafargeHolcim Russia announced this week that it was going to reopen its integrated Voskresensk cement plant near Moscow. The unit was originally stopped in 2016. Now it plans to spend Euro23m on restarting the plant and building a dry construction mix unit at the site. Who says big government doesn’t work?

Published in Analysis
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ThyssenKrupp to upgrade Ciments Calcia’s Airvault cement plant

07 December 2021

France: Germany-based ThyssenKrupp has won a contract for the installation of a new 4000t/day clinker line at Ciments Calcia’s Airvault cement plant in Poitou-Charentes. The supplier expects the new line to double the plant’s clinker capacity while also reducing its CO2 emissions. It is intended to replace the two existing lines at the site.

ThyssenKrupp will supply a 1200t/hr double-shaft hammer crusher, a longitudinal blending bed, a 370t/hr Quadropol QMR² 45/23 type vertical roller mill and a 10,000t tangential blending silo to process raw materials for the line. A single-string, five-stage Dopol type cyclone preheater with integral calciner will be supplied that is suitable to use with alternative fuels, with the possibility of conversion to oxyfuel in future. ThyssenKrupp plans to preassemble the preheater, reducing anticipated construction time ‘by several months.’ The plant also includes a Polytrack clinker cooler, a solid recovered fuel (SRF) preparation line and dedusting systems. Commissioning is scheduled for mid-2024.

No value for the project has been disclosed by Ciments Calcia or ThyssenKrupp. However, Ciments Calcia previously announced a proposed investment of Euro300m in January 2021.

Published in Global Cement News
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Anhui Conch starts building 2.5Mt/yr cement plant in Uzbekistan

03 December 2021

Uzbekistan: China-based Anhui Conch has started building a 2.5Mt/yr cement plant in Akhangaran district in Tashkent. It will invest US$200m in the upcoming plant, of which it has already spent US$16.7m on imported equipment, according to the Podrobno news agency. The plant will occupy a 183ha site.

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Hongshi Group to inject US$125m into Dang Cement

29 November 2021

Nepal: China-based Hongshi Group has received clearance from the Nepal Rastra Bank to invest US$125m into Dang Cement. Hongshi Group owns an 85% stake in the cement producer, according to the Republica newspaper. The remaining 15% stake is owned by Shivam Cement. The investment will be used to build a 6000t/day production line at Dang Cement’s plant in Dang region. The project was previously approved by the Investment Board Nepal in late 2020 for commissioning in late 2023.

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Jajpur Cements to commission 1.5Mt/yr Jajpur grinding plant in December 2021

16 November 2021

India: Sagar Cements says that its subsidiary Jajpur Cements is on track to commission its new 1.5Mt/yr Jajpur grinding plant in Odisha in December 2021. The Hindu BusinessLine newspaper has reported that the company invested US$41m in the plant’s construction. Sagar Cements acquired Jajpur Cements in May 2019 for US$16m. It had previously aimed to complete the new grinding plant’s construction by March 2021.

In October 2021, another Sagar Cements subsidiary, Satguru Cement, commissioned its new US$80.6m 1Mt/yr Indore integrated cement plant in Madhya Pradesh. The completion of both projects will bring Sagar Cements’ total installed capacity to 8.25Mt/yr. the company said that the new facilities will help in its rationalisation of freight expenses and help it to diversify its sales outside of existing markets.

Published in Global Cement News
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