Displaying items by tag: Expansion
Alkhalij Cement Company to increase production by 50%
22 September 2015Qatar: In an effort to meet growing demand, Alkhalij Cement Company, part of Qatari Investors Group, intends to invest nearly US$220m on a new production line.
The country's construction market is putting strain on cement supply and Firas Tayssir Ibrahim, chief administration officer of Qatari Investors Group, said that the new line is expected to be operational by the first quarter of 2016. The new line is expected to increase cement production by 50%.
Ibrahim's statement was underscored by Alkhalij Cement Company COO Jose Escalera, who emphasised the extraordinary growth in the country's construction sector. "The unprecedented growth in Qatar's construction remains the primary motive of all companies to place more efforts in improving their products and services to meet the terms of this growth and support it with emphasis on quality and effectiveness factors. This has prompted Alkhalij Cement Company to increase its production capacity to cope with the increasing market demands. While the production of clinker will reach around 2Mt/yr and cement around 3Mt/yr by the end of 2015, our projections show that in 2016 and when our new line is operational, we will need to produce close to 4Mt/yr of clinker and 4.5Mt/yr of cement," said Escalera.
UltraTech Cement to expand Maharashtra cement plant
18 September 2015India: Aditya Birla's UltraTech Cement has got the Environment Ministry's clearance to increase the capacity of its Awarpur plant in Maharasthra, which would entail an investment of US$37.7m.
The company plans to increase its clinker capacity to 4.5Mt/yr from 3.3Mt/yr and to increase its cement capacity from 4.48Mt/yr to 6Mt/yr.
"Based on the Expert Appraisal Committee (EAC) of the Union Environment Ministry recommendation, the Environment Ministry granted the final clearance subject to certain conditions. The EC was issued to the company on 11 September 2015," said a senior Environment Ministry official.
The company has been asked to comply with specific conditions like developing green belt over 33% of the total project area, installing air monitoring devices to monitor air emission and continuous stack monitoring of facilities to monitor gaseous emissions, among others. The company has also been asked to earmark at least 5% of the total cost of the project towards enterprise social commitment and prepare a detailed corporate social responsibility (CSR) plan for every five years for the existing expansion project.
UltraTech Cement has informed the Ministry that the proposed expansion will be carried out within the existing plant area. The additional power required for the proposed expansion will be 5.1MW.
BUA Group to double capacity and expand across Africa
07 September 2015Nigeria: Nigerian conglomerate BUA Group has signed US$600m worth of contracts with China's Sinoma International Engineering Co. to double capacity at its flagship cement plant as it seeks to expand market share in Africa's biggest economy.
BUA plans to double the capacity of its Obu cement plant which currently has a capacity of 3.5Mt/yr, with completion expected in 2017. The contract was signed at Sinomas offices in China.
Executive chairman Abdulsamad Rabiu said, "BUA has less than 10% of the market share now but afterwards we should go to about 20%. Rabiu said that BUA, like Nigeria's largest cement producer Dangote Cement, was planning a continent-wide expansion.
Philippines: Holcim Philippines will invest up to US$40m to expand its production capacity from 8Mt/yr to 10Mt/yr target by the end of 2016.
Holcim Philippines president and CEO Eduardo A Sahagun said that the company was gearing up to improve its facilities in Calaca and Mabini in Batangas, as well as in Norzagaray in Bulacan. Sahagun said that the newly-acquired Star terminal of Lafarge Republic would also increase its production capacity.
"We are reviving a lot of projects. Our Calaca plant is easily adjustable to additional volume as well as the Mabini plant and the Star terminal. The Star terminal could double our capacity. Cement demand is growing and we have no option but to raise our supply," said Sahagun. He expects to see surging market demand due to new public-private partnership (PPP) projects and as more infrastructure major players in the country have announced expansion plans.
"The market prospects remain bright as construction activity is expected to continue," said Sahagun. He attributed the growth to higher private construction activities and accelerated government infrastructure spending.
"Our investment in plant upgrades allows our plants to run longer before scheduled maintenance activities. This will pay off in the current market environment as we are able to meet the demands of customers," Sahagun added.
Ethiopia: After some delay and with construction of its original project still ongoing, Habesha Cement is reported to be considering an additional expansion project. The firm hired Waas international Consulting Firm (WICF) in June 2015 to conduct a study to change its market strategy and establish the need for further expansion projects even though the construction of its 1.3Mt/yr cement plant is not yet complete.
WICF, which previously worked on the feasibility study for the overall company, will decide on the need for expansion by looking at the current demand for cement in the country and will restructure Habesha's market strategy accordingly. "We found it necessary to conduct the study because we expect to launch production and join the market in the coming year," said Mesfin Abadi, chief executive director of Habesha Cement, who added that the company's initial market strategy dated from 2013 and did not provide adequate information on market trends past 2015.
India: According to the Press Trust of India, Wonder Cement, part of RK Marble Group, plans to invest US$500m to increase its cement production capacity to 10Mt/yr in the next five years from the current 3.25Mt/yr.
"We have 3.25Mt/yr of cement manufacturing capacity at our Bhatkotri village plant in Rajasthan and have invested US$250m to double the current capacity to about 7Mt/yr by setting up a second production line. It is likely to be complete by the end of 2015," said Wonder Cement's executive director Jagdish Chandra Toshniwal.
Toshniwal added that Wonder Cement plans to further expand the current capacity to 10Mt/yr by setting up a third production line at a cost of US$250m in the next five years. The project will be funded through an internal accrual of US$47m, promoters' contribution of US$78m and debt of around US$376m.
Currently, the plant is running at full capacity and sells 1.8m bags/day to the northern states, with 50% of its volume sold in Rajasthan. Toshniwal said that Wonder Cement is also expanding its base in north Gujarat and western parts of Uttar Pradesh and Madhya Pradesh.
"The cement industry is evolving rapidly. We prepare for the next phase of the company's growth. We are focusing our efforts on increasing our market share by creating a clearly distinctive positioning in the market place," said Toshniwal. Some of the recent government initiatives such as development of 100 smart cities, housing for all by 2022 and post-monsoon commencement of several infrastructure projects are expected to provide a major boost to the sector, Toshniwal added.
Dangote to expand Ethiopian cement plant
09 June 2015Ethiopia: Accoring to Nigeria News, Dangote Group president Alhaji Aliko Dangote has said that 'plans are afoot' to double the capacity of the newly-opened US$500m, 2.5Mt/yr capacity cement plant in Mugher, Oromia, Ethiopia. Dangote said that the expansion work would begin before the end of 2015.
The decision to set up and then expand the plant was informed by the 'enabling' environment created by the Ethiopian government with massive investment in several large-scale infrastructure projects, including the construction of the continent's largest hydropower dam. The Ethiopian plant will create direct employment for 2000 people in the main plant operations and logistics, with a fleet of 600 trucks. 5000 indirect jobs will also be created.
Dangote said that achieving real economic integration in African would require political stability and a breakdown of the barriers and borders between countries, which hinders free flow of goods, services and people. "We need to make deliberate efforts to encourage Africans, not just foreigners, to invest in Africa. Dangote Cement is currently in 16 African countries with plans to invest in many more over the next years. There are a number of other successful pan-African brands today such as MTN, Shoprite and Ecobank," said Dangote. "We need to encourage this trend to see more investments in Africa by Africans. Above all, there is need to encourage the private sector to collaborate with governments across Africa to address the issue of infrastructure deficit, which has plagued the continent for decades."
Ethiopia's prime minister Hailemariam Desalegn said that as one of the fastest growing economies in the world, the country's investment potential had barely been scratched. He said that the government was spending millions of dollars on critical infrastructure to address investment and align with policies that were already in place to aid investors. "Ethiopia represents a lucrative market that has barely been tapped with its 95 million people and growing economy," said Desalegn.
Ethiopia's Minister of Industry, Ahmed Abitew, said that, with the new plant, the country's cement sector would make significant growth in meeting local demand, which has grown due to infrastructural development. According to him, production has risen from 11.2Mt/yr to 17.5Mt/yr. "The government is giving due attention to the industrial sector with its average growth of 20%/yr," said Abitew.
Turkey: Votorantim Cimentos has announced a Euro140m investment in the expansion of its cement plant in Sivas, Turkey. The investment is the largest carried out in Sivas' history and will increase the plant's current production capacity by three times, from 0.6Mt/yr to 1.8Mt/yr.
The investment will allow Votorantim Cimentos, which currently operates in the country at full capacity, to increase its market share in Turkey. The Sivas plant currently accounts for about 19% of Votorantim Cimentos' 3Mt/yr production capacity in Turkey. After the expansion, it will account for 42% of the company's total production capacity in the country.
"Votorantim Cimentos sees the potential of Turkey's construction sector and this investment shows our commitment to reinforcing our presence in Turkey. Sivas' expansion will bring a crucial dynamism and competitiveness to the company in the Turkish cement market," said Mustafa Şefik Tüzün, CEO of Votorantim Cimentos in Turkey.
Groundbreaking at the plant will take place in June 2015 and construction work will employ around 700 people. Cement production will begin in 2017. The plant will supply the market with CEM I and CEM II, the most in-demand products in the Turkish cement market.
Votorantim Cimentos recently announced a Euro1.61bn investment package for 2015 - 2018. The company will invest in five new plants in Brazil, one in Bolivia, as well as in the expansion and modernisation of existing units, such as the one in Sivas.
Mid UK Recycling plans SRF plant expansion
22 May 2015UK: Mid UK Recycling Limited plans to extend its Wilsford Heath waste management facility at Ancaster, South Kesteven in Lincolnshire. If its plans are approved, the plant would recycle up to 350,000t/yr of waste mattresses and plastics.
Chris Mountain, managing director, said that the investment could run into 'multiple millions' of Euros. "We are an existing business, we employ 350 people in Sleaford, Caythorpe and the Ancaster site," said Mountain. "We will put in the main planning proposal in the next three months and as soon as we get the green light we'll start straight away." He said that initially the company wants to start by the end of December 2015, although it may take three years to complete the expansion. "We have been four years developing the site next-door, which is full to capacity now," he said. "The range of products we produce is getting wider and wider. It makes no sense to export those jobs out of the county."
There would be a building for machinery that could break down mattresses into resalable parts. Leftovers would form solid recovered fuel (SRF) products, which could by cement plants and power stations. Another building would be created for packing and storing gypsum from recycled wallboard, which would be sold to supermarkets as cat litter. The business would also bring in a new way of recycling rigid plastics, breaking them down into granules to sell to Lincolnshire manufacturers of drainage pipes, water pipes and car parts.
Cemex opens US$67 cement mill in Cebu
05 May 2015Philippines: Cemex Philippines has recently completed a US$67.3m cement mill at its Apo cement plant in Naga, Cebu as part of its comprehensive expansion plan in the country. The mill increases the capacity of the Cemex Apo plant by 1.5Mt/yr and Cemex's production capacity in the Philippines by 40%.
"We in Cemex are proud improving the standards of life of the people, proud of producing and distributing valuable products and services and doing it in a way that has a positive impact to our communities," said Pedro Palomino, Cemex Philippines president. Aside from the cement mill in Cebu, Cemex Philippines has also finished the construction of new marine distribution terminals located in Manila, Iloilo and Davao amounting to a total of US$22.4m.