Displaying items by tag: GCW485
India starts to build cement capacity again
09 December 2020Manoj Kumar Rustagi was on hand yesterday to discuss JSW Cement’s operations in the UAE at the Virtual Middle Eastern Cement Conference. At the event, jointly organised by Global Cement Magazine and the Arab Union for Cement and Building Materials (AUCBM), Rustagi mainly stuck to the development of the producer’s new integrated plant in the Fujairah Free Zone but he also gave an overview of JSW Cement’s presence in India. For example, as part of an industrial conglomerate, JSW Group, the cement producer benefits from links to steel production by JSW Steel that enables it to use blast furnace slag. Notably, JSW Cement’s Shiva Cement subsidiary announced plans at the end of November 2020 to spend around US$200m on a new 1.4Mt/yr integrated cement plant in Sundergarh district, Odisha with the clinker production line supplied by ThyssenKrupp Industries India.
JSW Cement is not alone in ordering new production capacity. This week, UltraTech Cement approved a planned increase of 12.87Mt/yr for around US$740m. This is in addition to new capacity projects of 6.7Mt/yr that are currently underway. All of these new projects are scheduled to be commissioned in a phased manner by the end of the 2023 Indian financial year (by March 2023). It is unclear at present how exactly these projects are distributed but they are centred in the Northern, Central and Western Zones of the country, and the new tranche includes the previously announced Pali plant in Rajasthan. At this price the inference is that the much of the new capacity will be in the form of grinding plants and/or upgrades to existing clinker lines. Around the same time as this, LafargeHolcim said it wants to spend US$112m on waste heat recovery (WHR) plants for six of its cement plants in India by the end of 2022.
Graph 1: Change in Indian cement production year-on-year (%). Source: Office of the Economic Adviser.
These three projects by major producers suggest that the Indian cement sector is recovering from the effects of the coronavirus lockdown in late March 2020. Graph 1 above shows the sector finally recovering in October 2020, with growth of 3% year-on-year to 26.9Mt. Kumar Mangalam Birla, the chairman of Aditya Birla Group, credited the economic situation with the Indian government’s Atmanirbhar Bharat stimulus program for his decision to commit to UltraTech Cement’s spending spree. This outlook gels with that of Fitch Ratings. The credit ratings agency has forecast in a recent report that ‘strong’ margins during the first half of the 2021 financial year (April – September 2020) are going to limit the financial risks to the larger Indian cement companies despite the lower cement sales volumes due to coronavirus. Pent-up demand helped the industry recover after the lockdown and this was further aided by lower energy/fuel costs and general cost cutting.
Needless to say all of the above is good news for the Indian cement industry after the year it has had. One thought to consider from all of this is who might UltraTech Cement order its mills and clinker lines from? Atmanirbhar, the name of the Indian stimulus plan, has been described as ‘self-reliance’ or ‘self-sufficiency’ in the local press. Unfortunately, relations have been poor between India and China in 2020 due to armed skirmishes along the Line of Actual Control on the border, amongst other issues. Ordering a new clinker production line from, say China-based Sinoma, may not look especially ‘self-sufficient’ in the current climate.
Management changes at Scheuch Group announced
09 December 2020Austria: Scheuch Group has announced a number of changes to its management, starting with the appointment of Thomas Eberl as the third managing director of Scheuch Management Holding in August 2020. He remains in his role as chief financial officer (CRO) for Scheuch Group and joins Stefan Scheuch and Jörg Jeliniewski as a managing director.
Eberl has experience from his group and investment controlling role at Vivatis and from the automotive industry, where he worked in international locations at the ZKW Group for 20 years, the final nine of which were spent as CFO.
The group has also appointed Thomas Rainer and Michael Brandl as the managing directors of Scheuch and Scheuch Components respectively. This follows the stepping down of Stefan Scheuch and Jörg Jeliniewski from their interim Business Unit management roles at the start of November 2020.
Finally, the group has made changes to its personnel in its North America subsidiaries, with the appointments of Jim Weber as Vice President of Sales at Schust and Dan Bruyn as chief operating officer (COO) at Camcorp.
Weber succeeded John Rothermel, who was recently promoted to president of Scheuch USA, Schust's parent company, in mid-November 2020. He holds nearly 25 years of sales and leadership experience. He previously served in the US Army and graduated from West Point with a Bachelor of Science in Mechanical Engineering.
Bruyn started the newly created role for Camcorp from mid-November 2020. He holds 25 years of operations management experience in manufacturing environments. He was most recently Director of Operations at Garsite, where he led the business through a divestiture and financial turnaround. Earlier in his career he helped implement ‘lean’ management initiatives at Gardner-Denver, Harley-Davidson and Pentair. He is a graduate of the University of Missouri in Columbia where he earned Master of Engineering and Industrial & Manufacturing Systems qualifications, and a Bachelor of Science in Industrial Engineering.
Terex Materials Processing makes appointments at Terex Finlay, EvoQuip and Terex Materials Processing
09 December 2020UK: Northern Ireland-based Terex Materials Processing has appointed Matt Dickson as Business Line Director for Terex Finlay and General Manager of its Omagh site, and Barry O’Hare as Business Line Director for EvoQuip. Paul O’Donnell, the previous Business Line Director for Terex Finlay, will become the Director of Strategic Sourcing at Terex Materials Processing.
Dickson has led the EvoQuip business for the last four years and holds a commercial and engineering background. He previously worked for Terex Finlay in Omagh for over 10 years, eventually becoming its Engineering Director.
O’Hare holds experience in the crushing and screening industry, having worked in several positions for Powerscreen and Terex MPS over the past 12 years. Most recently, he worked on strategic and operational sales for EvoQuip and led the development and management of territory sales.
Jacob Omondi Guma reinstated as production manager at East African Portland Cement Company
09 December 2020Kenya: A court in Nairobi has reinstated Jacob Omondi Guma as a production manager for the East African Portland Cement Company (EAPCC). It follows the company’s decision to appoint Japheth Ombogo to the position, according to the Business Daily newspaper. The judge annulled the company’s decision on the grounds that it was marked by irregularities and may have been ‘malicious.’ The court ruled that Guma may stay in post until his three-year contract ends in September 2022 unless otherwise lawfully terminated. He was removed from the role in November 2019 after serving for just two months. The cement producer denies the allegations and says it removed him from the post due a lack of qualifications.
Punjab government approves five cement plant plans
09 December 2020Pakistan: The government of Punjab Province has approved five cement plant plans worth a total of US$1.25bn. The Frontier Post newspaper has reported that Chief Minister Usman Buzdar chaired a cabinet meeting in which No Objection Certificates (NOCs) were issued to five planned cement plant projects.
Philippines cement import duty rises
09 December 2020Philippines: The Department of Trade and Industry (DTI) has raised the import duty per 40kg bag of cement to US$0.20 from US$0.19. The Manila Bulletin newspaper has reported that the department issued the administrative order following a petition from the Cement Manufacturers Association of the Philippines (CeMAP). The petition suggested a US$0.25/bag levy as an effective means to maintain domestic cement production. The association has blamed growing imports on a surplus in countries such as Vietnam.
The DTI previously imposed tariffs on imported cement for three year from October 2019 with a staggered reduction in the duty. However, the DTI said it would review the safeguard measure in order to modify the rate as it deemed necessary.
Taiheiyo Cement and Semen Indonesia finalise collaboration agreement
09 December 2020Indonesia/Japan: Taiheiyo Cement and Semen Indonesia have finalised a collaboration agreement with the aim of building a comprehensive partnership, including consultations on promotion and sale of cement and clinker. Taiheiyo Cement said, “The business alliance is for business collaboration and research and development of cement, resources, environment, building materials and more.”
In accordance with the agreement Taiheiyo Cement will buy shares in Semen Indonesia’s subsidiary Solusi Bangun Indonesia, formerly Holcim Indonesia. The deal is expected to be completed in early 2021. In April 2020 Taiheiyo Cement agreed to buy a 15% stake in Solusi Bangun Indonesia for between US$186m and US$232m.
Cemex Ventures acquires Soil Connect stake
09 December 2020Mexico: Cemex subsidiary Cemex Ventures has invested in excavation materials marketplace Soil Connect. The online platform says that it connects the supply and demand algorithmically based on the users' proximity and needs. It is mainly used for aggregates. In digitising the marketplace it reduces landfill while lowering transportation distances, according to the investor. It says that this results in tremendous cost savings for construction professionals. This also promotes circular economy within the sector.
Cemex Ventures’ investment head Cristina Aparicio said, "For any relevant actor with a view to the future of our ecosystem, it is a priority to offer a solution to the millions of tonnes of materials that are generated annually in demolition projects, since much of the construction materials of tomorrow come from the projects to be demolished. We are very excited about this agreement with the Soil Connect team, which has created a business that adds value, both to those who generate the waste and to those who need construction material, prioritising this tool that provides agility."
Brazilian full-year cement sales to grow by 10%
09 December 2020Brazil: The National Cement Industry Association (SNIC) has predicted cement sales in 2020 to rise by 10% year-on-year to 60Mt. Valor International News has reported that president Paulo Camillo Penna said, “If in 2021 we maintain the 60Mt we expect to reach this year, or have some progress beyond this volume, it will be a very satisfactory result considering the high uncertainties ahead."
France: LafargeHolcim subsidiary Lafarge France has installed a new rotary kiln at its Martres-Tolosane cement plant. The installation is part of a Euro120m project to build a new production line at the site. The work will also increase the plant’s alternative fuels (AF) substitution rate to 80% from 30%.
The company said, “Once completed the work will increase the productivity of the cement plant, while reducing its environmental impact. The plant will be equipped with the latest environmental technologies, thus increasing the share of energy recovery from waste and its use in the production of clinker. The work will reduce energy consumption, reduce the carbon dioxide (CO2) footprint by 25% - 30% per tonne of cement and create local circular economy loops with partners in the greater South-West.” The on-going upgrade to the plant is on schedule for completion in November 2021.