Displaying items by tag: Contract

Nigeria: UK-based Entec International has secured a contract to optimise maintenance, repair and operations (MRO) supply chains for Lafarge Africa. The project will involve the consolidation of 125 separate suppliers into a single supply chain, which will be managed by Entec, operating in a single currency with standardised terms. No value for the deal has been disclosed.

“This is a great step for Entec, this contract opens up a new market with huge potential for us. We are delighted to be working with LafargeHolcim, whose commitment to innovation and environmental sustainability reflects our ethos at Entec,” said Entec sales director Charlie Patterson.

Patterson expects Entec to achieve a 12% reduction in freight, clearance and handling costs for Lafarge Africa in year one of the three to five-year contract. Supply chain consolidation is predicted to cut the number of shipments by more than half and will deliver a reduction in the volume of purchase orders and invoices currencies into a single currency, replacing multiple payment terms from different suppliers into a single payment term and converting multiple air freight shipments from Europe and China into consolidated ocean freight.

Entec specialises in saving costs and reducing complexity for client companies by managing their MRO supply chains. It has managed complex supply chains for manufacturers in over 70 different shipping destinations. Entec’s client base includes customers in the food and beverage packaging industries, oil, gas production, textile processing and mining and minerals sectors.

China: China Tianrui Group Cement has secured a new agreement with Ruiping Shilong for the supply of its clinker. The company announced that under the new arrangement, valid until 31 December 2021, it will buy clinker at a rate possibly exceeding the US$74m/yr cap stipulated in the 1 April 2019 agreement which covered the same period.

North America: Cemex’s venture capital division has invested an undisclosed sum in the construction materials delivery and logistics brand GoFor. Gonzalo Galindo, the chief executive officer (CEO) of Cemex, has stated the importance of improving efficient on-site delivery as ‘a critical point in the construction value chain’ of its North American divisions.

Egypt: Arabian Cement has signed a 0.3Mt/yr petcoke supply deal with the Egyptian Refining Company. Sergio Alcantarilla, the chief executive officer (CEO) of Arabian Cement said that the agreement was part of the company’s plans to reduce its production costs and improve operational performance by diversifying its energy sources, according to the Daily News Egypt newspaper. The company operates a 5Mt/yr integrated cement plant at Ain Sokhna in the Suez Governorate.

India: GE Power India has been award a contract by Aravali Power worth US$107m for a flue gas desulphurisation (FGD) system. The contract is for design, engineering, civil work, supply, erection and commissioning of wet FGD systems along with auxiliaries like limestone and gypsum handling systems and wet stack on full turnkey basis.

Aravali Power is a joint venture company between NTPC, Haryana Power Generation Company and Indraprastha Power Generation Company. It operates a coal power station near Jharli, Jhajjar in Haryana with three 500MW units. An additional two 660MW units are planned for a future expansion project.

Bangladesh: Sayem Sobhan Anvir, the managing director of Bashundhara Group, has signed a cement supply agreement with Tao Jun, the project manager of the Padma Bridge Rail Link for China Railway Group. Bashundhara Group will supply over 0.7Mt of cement for the project, according to Daily Sun newspaper. The US$3bn train line will run for 225km between Dhaka and Jessore.

Egypt: ASEC Engineering has renewed its technical management contract with Misr Beni Suef Cement until the end of 2023. ASEC originally worked on the first production line at the plant in 2001. It maintenance contract was renewed in 2007 with the addition of a new production line. The cement plant has a production capacity of 3.1Mt/yr.

India: Penna Cement has signed a five years freight tariff deal with South Central Railway (SCR). As part of the agreement the rate will remain fixed for one year, according to the New Indian Express newspaper. The contract also offers incentives including discounts if the freight volume exceeds the previous year’s amount. Penna Cement is the eighth company to sign such an agreement with the SCR.

Australia: Wagners Cement has suspended its supply of cement products to Boral for six months. Wagners has a cement supply agreement with Boral where it supplies cement on an annual basis for a fixed price. However, Boral issued a notice to Wagners saying that it has found cheaper cement from a ‘long established’ supplier in South East Queensland.

As per the agreement Wagners can either match the lower price or suspend its supply. Wagners has decided to suspend its supply to Boral pending a resolution of the issue. It said that the potential financial impact of the pricing notice is US$14m.

UK: Wincanton has won a five-year deal with Aggregate Industries for the distribution of concrete products from a majority of its UK manufacturing sites. Under the new agreement, logistics firm Wincanton will operate a dedicated fleet of specialised vehicles, backed up by its national network, from 10 factories to customers across the country. This deal is in addition to two existing contracts, which cover distribution of bulk and packed cement from Aggregate Industries’ Cauldon works and the provision of Readymix assets.

"We have witnessed Wincanton’s ability to deliver on major national contracts at our Cauldon bulk operation. We have also seen how its commitment to continuous improvement can generate material benefits across the business. We are looking forward to the Wincanton team joining our concrete products operation," said Shaun Elliott, Head of Logistics, Concrete Products at Aggregate Industries.