Displaying items by tag: Kyrgyzstan

Uzbekistan: Cement production grew by 23% year-on-year to 5.8Mt in the first half of 2021. Data from the State Statistics Committee of Uzbekistan shows that production increased fastest in the second quarter. It was previously reported that the country imported 1Mt of cement in the first four months of the year. 48% came from Kazakhstan, 27% from the Kyrgyzstan, 23% from Tajikistan and 1% from both Iran and Turkmenistan.

The latest piece of China-based Huaxin Cement’s global ambitions slotted into place this week with the news that it is preparing to buy plants in Zambia and Malawi. Its board of directors has approved plans to spend US$150m towards acquiring a 75% stake in Lafarge Zambia and US$10m on a 100% stake in Lafarge Cement Malawi. The move will gain it two integrated plants with a combined production capacity of 1.5Mt/yr in Zambia, and a 0.25Mt/yr grinding plant in Malawi.

This latest proposed acquisition represents the next step for Huaxin Cement in Africa following its purchase of African Tanzanian Maweni Limestone from ARM Cement in mid-2020. The company has also been busy along the more traditional Belt and Road Initiative land routes in Asia. It started up the kiln at its new 2Mt/yr Jizzakh cement plant in mid-2020. Elsewhere in Central Asia it runs two plants in Tajikistan and one plant in Kyrgyzstan via various indirectly-owned subsidiaries. While in South Asia it runs a plant in Nepal and in South-East Asia it runs one in Cambodia. If the plans in Zambia and Malawi pay off then it will give the Chinese producer a growing presence in East Africa, with plants in three countries.

The China Cement Association ranked Huaxin Cement as the country’s fifth largest clinker producer in 2021 with an integrated capacity base of just under 63Mt/yr. Domestically, the company operates 57 cement plants and most of these are based in the Yangtze River Economic Belt region. In 2020 it reported cement and clinker sales of 76Mt, a small decrease from 2019. Its operating income fell by 6.6% year-on-year to US$4.58bn and profit dropped by 12% to US$1.2bn. This performance was blamed on the emergence of Covid-19 at the start of 2020 and then floods later in the year.

Compared to the other larger Chinese cement producers, Huaxin Cement roughly appears to be holding rank with its overseas expansions. The leaders, CNBM and Anhui Conch, hold subsidiaries with plants in South-East and Central Asia and CNBM’s engineering wing, Sinoma, has a far bigger reach, building plants all over the place. Information has been scarce since mid-2020 on the long heralded 7Mt/yr plant in Tanzania due to be built by Sinoma and local subsidiary Hengya Cement. At that time local residents in Mtimbwani, Mkinga District were reportedly being compensated for their land. Other than this, one of the other big players internationally is Taiwan Cement. In 2018 it invested around US$1.1bn for a 40% stake in Turkey-based Oyak Cement. As well as a presence in Turkey this also gave it a share of plants in Portugal in 2019 when Oyak completed its acquisition of Cimpor.

Elsewhere this week, carrying some of the themes above with expansion in Central Asia, two new integrated cement plant projects were announced in Kyrgyzstan and Turkmenistan respectively. Meanwhile, Italcementi said it will invest Euro5.0m to restart clinker production at its Trentino cement plant in Sarche di Madruzzo, Italy. The unit has been operating as a grinding plant since 2015. This might be viewed as an unexpected decision considering the high local CO2 price but it shows some level of confidence in the local market by Italcementi and its parent company, HeidelbergCement. The next step will be when or if a European producer decides to build a brand new integrated plant in Italy or elsewhere.

Kyrgyzstan: Standard Cement has announced the forthcoming Nookat cement plant at Yntymak, Osh oblast. The Kyrgyz National News Agency has reported that the plant, when commissioned, will have a production capacity of 3500t/day and create between 300 and 350 new jobs. Construction is set to begin in mid-to-late 2021.

Tajikistan: Tajik cement plants produced 4.2Mt of cement in 2020. Tajikistan Newsline has reported that cement exports for the year were 1.3Mt. Uzbekistan imported 764,000t, Afghanistan imported 505,000t and Kyrgyzstan imported 42,000t. The Tajikistan Ministry of Industry and New Technologies has predicted a 46% increase in cement exports to 1.9Mt/yr by 2023.

Uzbekistan: Cement companies produced 7.8Mt of cement in the first nine months of 2020, a rise of 2.6% year-on-year from the same period in 2019. The Trend News Agency reports that the country exported US$24.2m-worth of cement in the period, to Afghanistan, Singapore, Russia, China and Turkey. The value of its cement imports – from Kazakhstan, Tajikistan, the Kyrgyz Republic, Iran and Russia – exceeded this by more than double at US$870m.

Tajikistan: Data from the Ministry of Industry and New Technologies (MOINT) shows that Tajikistan exported 0.99Mt of cement in the first nine months of 2020. 0.56Mt of cement was exported to Uzbekistan, 0.39Mt to Afghanistan and 43,000t to Kyrgyzstan, according to Asia Plus. Local cement companies produced over 3.2Mt in the same period. The country has 16 registered cement plants with a total production capacity of 5.6Mt.

Kyrgyzstan: Aravan Cement Plant, part of the Southern Combine of Building Materials, is considering building a third production line with a capacity of 1.5Mt/yr. Plant director Kubanychbek Turdubaev made the announcement to Kyrgyzstan Newsline in a discussion reflecting on the completion of the unit’s second line in 2018, which increased total capacity to 1Mt/yr. The Russian-Kyrgyz Development Fund (RKDF) provided a loan for that project and the company intends to continue the relationship for the next one. China-based Tianjin Cement Industry Design and Research Institute (Sinoma TCDRI) and the Nanjing Long-W Energy Conservation Engineering were also involved. At present the plant sells half of its cement domestically and exports the rest.

Tajikistan: Tajikistan produced 4.20Mt of cement in 2019; up by 11% from 3.80Mt in 2018. Cement exports in the period rose by 11% year-on-year to 1.55Mt from 1.40Mt. 2018’s exports amounted to 0.89Mt (64%) to Uzbekistan, 0.58Mt (41%) to Afghanistan and 0.08Mt (5.8%) to Krygyzstan. Asia-Plus News has reported that tightened pollution legislation in China has driven Chinese-based producers, which accounted for over 90% of Tajik production in 2018, to relocate operations to their country’s western neighbour.

Kyrgyzstan: Kant Cement has upgraded its packing equipment at its integrated plant. Russia’s Vselug supplied a Turbo K8 filling machine and Germany’s Berg provided compressors, according to Cement and its Applications magazine. The company plans to sell at 60% of its products in 25kg and 50kg following the upgrade.

The plant has also been installing general upgrades at the site, including a new combination burner from Austria’s Unitherm Cemcon in 2018. It is also planning to upgrade an electrical distribution substation by the end of 2019 to reduce interuptions to production.

Eurasian Economic Union: The Eurasian Economic Union (EEU) produced 12Mt of cement in the first quarter of 2019. Armenia produced 68,000t and imported 47,200t. Belarus produced 0.84Mt, imported 79,500t and exported 0.26Mt. Kyrgyzstan produced 0.35Mt, imported 38,600t and exported 0.15Mt. Kazakhstan produced 1.47Mt, imported 0.11Mt and exported 0.33Mt. Russia produced 9.3Mt, imported 0.18Mt and exported 0.17Mt. Usually production in the first quarter represents 16 – 19% of annual production. Consumption of cement in the EEU region is expected to grow by 2.5% year-on-year in 2019.