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Cement imports up in Peru

09 January 2019

Peru’s been the place over the last week with news reports of new production capacity and its targeting as a key export market by Vietnam.

Local press reported this week that three new cement grinding plants are planned to start production in 2019. Cemento Inka plans to build a 0.6Mt/yr grinding plant at Ica near Pisco. It also plans to upgrade the kilns at its plant at Cajamarquilla near Lima. Then Mixercon, a ready-mix concrete firm, wants to spend US$20m towards building two new plants in northern Lima, also in 2019. It also has plans to open distribution centres around the capital too.

For a local industry generally dominated by local often family-controlled producers this is quite a change. The larger companies – Pacasmayo, UNACEM and Yura – normally dominate the headlines and the market here. Unsurprisingly then that Pacasmayo and Yura also have upgrades planned for their plants in 2019 too.

Changes to capacity started in late May 2018 when Salaverry-based importer Invecem was said to be buying equipment for a 0.25Mt/yr grinding plant. Then things really started moving when Unacem bought Cementos Portland (Cempor), a joint venture between Chile's Cementos Bío Bío and Brazil’s Votorantim Cimentos. The foreign companies were planning to build a plant near Lima but the project was delayed by a legal battle over environmental issues intitiated by Unacem. This was followed by Cal & Cemento Sur (Calcesur), a subsidiary of Grupo Gloria, announcing that it was going to add a new production line to its cement and lime plant in Puno.

With this level of interest in grinding plants going on it’s unsurprising that Vietnam, a major exporter of cement, has taken an interest. Imports of cement to Peru rose by 65% year-on-year to 0.94Mt in the 12 months from December 2017 to November 2018 from 0.57Mt in the same period previously. Imports of clinker rose by 37% to 0.78Mt from 0.57Mt. This compares to a rise of 21% to 0.61Mt in cement imports in 2017 and a fall of 1.2% to 0.51Mt in 2016. In the 12 months to the end of November 2018 most of that imported cement (81%) came from Vietnam followed by 14% from China and 3% from Mexico. Clinker imports have been more varied with 39% from South Korea, 31% from Vietnam, 19% from Ecuador and 11% from Japan. The general situation for the clinker producers has been a slight increase in cement production to 10Mt for the 12 months to the end of November 2018 and slightly higher increases in despatches.

So, it looks like an apparent cement demand is up in Peru and the importers are rushing to meeting demand. The question, then, is why haven’t the clinker producers announced projects to squeeze out the grinders? As mentioned above Pacasmayo and Yura have upgrades planned but nothing really large seems to be coming yet. Also, given the tough time Cempor was given by the local companies what kind of opposition are the new projects by Cemento Inka, Mixercon and Invecem likely to face? The country’s gross domestic product (GDP) growth rate is below the glory days of the 2000s when it topped 6% but it is still one of the strongest in South America with 3.8% forecast for 2019 by the World Bank. This is the country in the region to watch in 2019.

Published in Analysis
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Surendra Prasad Paudel resigns as head of Udayapur Cement

09 January 2019

Nepal: Surendra Prasad Paudel has resigned as the general manager of Udayapur Cement following his appointment as the head of the Nepal Oil Corporation. Paudel became the head of the cement producer in February 2018, according to the Kathmandu Post newspaper. The chartered accountant improved the financial situation at the company, reporting a profit in the last financial year and clearing debts.

Published in People
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Tabuk Cement appoints new general manager

09 January 2019

Saudi Arabia: Tabuk Cement has appointed Ali bin Mohammed Al-Saif Al-Qahtani as its new general manager. It follows the resignation of Ali Bin Mohameha Al-Asmari. Al-Qahtani holds a bachelor's degree in Chemical Engineering from King Saud University and worked for a variety of companies including Saudi Aramco.

Published in People
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Tunisia to start building new cement plant in March 2019

09 January 2019

Tunisia: United Cement Investor will start building a new 1.5Mt/yr cement plant at Bir Thlathin in southern Tataouine in March 2019. The project has a cost of around US$320m, according to the Agency Tunis Afrique Press. Local investment will total around US$95m. The project is expected to create 419 direct jobs and 600 indirect jobs.

ThyssenKrupp Industrial Solutions (France) has been involved with the project. Investment is coming from local, UAE-based and German financiers.

Published in Global Cement News
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Chhatak Cement to spend US$106m on upgrade

09 January 2019

Bangladesh: Chhatak Cement plans to spend US$106m on building a new dry production line at its plant near Dhaka. The project is scheduled to be completed by 2021, according to the Financial Express newspaper. The subsidiary of the Bangladesh Chemical Industries Corporation (BCIC) plans to finance the upgrade with a US$63m loan from the government. The plant is currently using equipment that is up to 80 years old. At present it has a production capacity of 70,000t/yr despite upgrades in the 1980s and 2000.

Published in Global Cement News
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Coal imports to Pakistani cement producers forecast to reach 10Mt/yr by 2020

09 January 2019

Pakistan: Shariq Siddiqui, chief executive officer (CEO) of Pakistan International Bulk Terminal (PIBT), forecasts that coal imports for cement producers will rise to 10Mt/yr in 2020 from 8Mt/yr at present. This growth will be driven by new cement production capacity that is being commissioned, according to the News International newspaper. Overall, total coal imports are expected to grow to 30Mt/yr in 2020 driven by new coal-fired power stations.

Published in Global Cement News
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Iranian official says trade sanctions have not slowed cement exports

09 January 2019

Iran: Jafar Sarqeini, the Deputy Minister of Industry, Mine and Trade for Mining Affairs, says that US-backed trade sanctions have not slowed cement exports. He added that the embargo has only placed some obstacles in the way of financial transactions and return of money to the country, according to the Islamic Republic News Agency. The official said that the local industry can export up to 20Mt/yr of cement. Local production capacity is forecast to reach 120Mt/yr by 2025. However, a recession in the mining sector has kept production behind capacity.

Published in Global Cement News
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Insee Group signs quarry agreement with the International Union for Conservation of Nature

09 January 2019

Sri Lanka: Insee Group has signed a memorandum of understanding with the International Union for Conservation of Nature (IUCN) to protect limestone hills in the company’s quarrying sites in Sri Lanka, Cambodia, Thailand and Vietnam.
The ultimate goal of the partnership is to turn the limestone quarrying sites into forests through rehabilitation programmes.

In Sri Lanka, the agreement is intended to strengthen Insee Cement’s capacity to rescue and release threatened wildlife, prepare mine restoration guidelines and carry out annual ecological monitoring of restored mines in Insee Cement’s quarry sites in Aruwakkalu and Puttalam.

“In Sri Lanka we have worked with IUCN since 2007 to ensure conservation in quarry sites, as the partnership is focused on delivering practical solutions which protect Sri Lankan ecosystem. We take pride in meeting the expectations of our local stakeholders and join hands with our group and OpCo’s on the dedicated commitment to enhance forestry and quarry management in Asia,” said Nandana Ekanayak, the chief executive officer (CEO) of Insee Cement.

Published in Global Cement News
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UltraTech Cement and truck companies end dispute in Himachal Pradesh

09 January 2019

India: UltraTech Cement and local truck companies have ended a dispute over the size of payloads in Himachal Pradesh after mediation from the state government. The disagreement over increasing the size of truckloads to 12t started in late December 2018, according to the United News of India agency.

Published in Global Cement News
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Charah Solutions installs fly ash beneficiation process at Sulphur terminal

09 January 2019

US: Charah Solutions has installed its MP618 thermal beneficiation technology at its terminal in Sulphur, Louisiana. The upgrade is intended to improve the quality of fly ash and to increase its supply of marketable fly ash to concrete producers. The proprietary process reduces loss on ignition, ammonia, activated carbon and moisture in fly ash.

The company hopes to provides concrete product producers and builders with a source of Class F fly ash to support a growing number of construction projects in the greater Lake Charles and Sulphur region. The Sulphur terminal is Charah Solutions’ second barge-supplied location in southern Louisiana. Its LaPlace, Louisiana terminal currently serves customers in Louisiana, Mississippi and Alabama.

Published in Global Cement News
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