Displaying items by tag: Fives

France: Fives’ sales across all business lines rose by 2.5% year-on-year to Euro2bn in 2019, mainly due to positive currency effects. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 28% to Euro120m from Euro94m due to “a strong increase in orders for equipment and small systems in almost all segments except cement.” However, the group reported a loss of Euro22.6m in 2019, up from 19.9m in 2018.

The equipment manufacturer noted two cement industry trends impacting upon its process technologies division. Firstly, European and American players “continue to streamline their portfolios and cut costs.” Secondly, in the rest of the world, “the market still pays little heed to environmental and energy issues,” meaning that decisions are made at prohibitively low price levels.

Algeria: Fives has reported that it has installed and produced a batch of clinker with a new 6000t/day FCB kiln line at Entreprise des Ciments et Dérivés d'El Chellif (ECDE)’s integrated 1.0Mt/yr Chlef cement plant. When commissioned, the line will bring the plant’s capacity to 3.2Mt/yr.

Mexico: France’s Fives has issued an update on the two raw meal grinding plants it is supplying to Cruz Azul’s Hidalgo and Oaxaca Lagunas cement plants.

Construction work at the Oaxaca Lagunas plant started in August 2018. Mechanical erection of the raw materials feeding workshop and the FCB Horomill grinding circuit started in July 2019. Electrical installation is currently under progress. The raw meal grinding workshop is scheduled to be operational by the end of March 2020.

Construction work at the Hidalgo plant started in December 2018. Mechanical erection started at the end of August 2019, electrical erection works will start in December 2019. First raw meal date is scheduled by the end of May 2020.

Both orders were finalised in November 2017. The Hidalgo plant ordered a 280t/hr grinding unit and the Oaxaca Lagunas plant has ordered a 300t/hr grinding unit. Each raw grinding plant features an FCB Horomill 4000mm grinding mill, a FCB TSV Classifier 6500 mm and a FCB Aerodecantor.

China: CNBM and France’s Fives have signed a cooperation agreement related to the Paris Agreement regarding climate change and the modernisation of CNBM’s plants. CNBM was represented by both Ma Mingliang, vice-president of China Building Materials Engineering Group and Wang Kedong, chief executive officer’s (CEO) assistant of Zhonglian Cement, and Fives was represented by Didier Bourbon, Sales Vice-President (Asia) of Fives FCB. This agreement includes the supply of the FCB Horomill grinding technology developed by Fives FCB for both CNBM’s overseas projects and domestic projects such as Zhonglian Cement and Southwest Cement projects. The signing ceremony took place at the 7th Sino-French Industrial Cooperation Forum held in Chongqing. The agreement follows a similar deal struck in April 2019 in Paris.

France: Cem’In’Eu has ordered a 0.25Mt/yr grinding unit from Fives for its Portes les Valence plant in Drôme. The plant has an investment of Euro24m and it is scheduled to open in the second half of 2020. The scope of supply includes raw materials loading, clinker, limestone and gypsum hoppers, a 34t/hrt CEM II A/L FCB B-mill (ball mill) operating in a closed circuit with a FCB TSV dynamic classifier. The Portes les Valence project follows the opening of Cem’In’Eu’s grinding plant at Aliénor in Tonneins in 2018.

France: Fives Group has tested using its FCB Rhodax cone crusher to process concrete wastes resulting from the demolition and deconstruction industry. During an internal innovation competition, the crusher was used to sort hydrated cement paste from the aggregates and sand. The development will enable cement producers to reuse the paste as a cement additive. Ready mixed concrete producers will be able to make new concrete using the recycled aggregates and sand allowing for a reduction in CO₂ emissions. Fives hopes to turn demolition concrete waste into a valuable commodity.

China/France: Song Zhi Ping, president of China National Building Material Company (CNBM), and Frédéric Sanchez, chairman of Fives, have signed strategic agreement towards climate change and cooperation in third countries. This agreement develops the collaboration plans drawn up in January 2019 between cement plant manufacturer CNBM the engineering group Fives. It forecasts a volume of business of at least Euro600m over three years, and forms part of CNBM’s stated strategy of developing in partnership with western companies. The agreement was signed at the Elysée Palace in Paris during a state visit to France by China’s President Xi Jinping.

The agreement focuses on upgrading CNBM’s cement plants in China, building new plants outside of China and creating a Joint Engineering Centre to implement these projects and share information. The Joint Engineering Centre was inaugurated on 28 February 2019 in Shanghai. With regards to modernising its cement production lines in China, Fives said that its technologies, in grinding in particular, would ‘significantly’ improve performance and return on investment with regards to modernising CNBM’s domestic cement production lines. Fives said that the agreement is in full alignment with the Paris Agreement. It added that the agreement also shows the ‘mutual trust’ between the two companies with respect to intellectual property.

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.

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.

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.

US: France’s Fives Group has released detail about a project to upgrade the cement mill workshop at Giant Cement’s Harleyville plant in South Carolina. The contracts included the complete engineering, supply, fabrication, transport, installation and commissioning services for material handling, cement grinding and cement loading. New equipment included a clinker and additives transport circuit with a dedusting system, a classifying circuit with a FCB TSV Classifier, a new Fives TGT Filter, all gas and material connections as well as the ball mill internals revamping, a cement truck bulk loading area and a weighing station.

Engineering, offshore supplies and project management were handled by Fives FCB. Onshore supplies and all site works including civil and structural works, mechanical and electrical installations were covered by Fives Solios. Major milestones of the project included starting civil works in November 2017. Mechanical and electrical erection work ran from February to July 2018. First cement production was on 29 June 2018.