Displaying items by tag: OYAK

Türkiye: Cimpor Global Holdings has appointed Erol Tosun as Operational Technologies Unit Manager. He worked as Operational Technologies Chief for OYAK Çimento since 2019 and was the Information Technology Chief for OYAK Modern Beton from 2005 to 2019.

Other appointments at Cimpor Global Holdings include the move by Burak Demir to Industrial Digitalisation Unit Manager. He previously worked for OYAK Çimento since 2017 in a number of process roles. Prior to this he worked for Cementir in Türkiye.

Pınar Özmen Söylemez has been appointed as Data Analytics & Planning Unit Manager. She has worked for OYAK Çimento since 2017 first as a Performance Controller and then Industrial Program and Analysis Chief. Before this she worked for Votorantim Cimentos for two years.

Portugal: Cimpor Portugal has signed a contract with Germany-based KHD Humboldt Wedag (KHD) for an upgrade to production line 7 at its Alhandra cement plant. The project is intended to increase the production capacity at the plant to 3600t/day from 3000t/day and increase the line’s alternative fuels thermal substitution rate to over 80%. It will also be the first installation of KHD’s Pyrorotor alternative fuel combustion reactor in the country.

The scope of the engineering and supply contract comprises:

• New HKSK 224/335 preheater ID fan
• New downcomer duct
• New preheater with 8064/5-type HEM cyclones
• Pyroclon R calciner with Pyrotop mixing chamber. The Pyroclon R will utilize fine refuse-derived fuel (RDF) and natural gas
• 4m x 10m Pyrorotor alternative fuel combustion reactor
• Pyrobox coal firing system for process start-up and operation balancing
• Shortening of the existing kiln and installation of new kiln inlet chamber with bypass extraction
• New kiln drive station 2 (the existing girth gear and two pinions will be reused)
• New kiln hood and take-off of tertiary air from the cooler roof
• New main kiln burner designed to use more than 50% alternative fuels (but will also be capable of burning natural gas, as well as liquid fossil and alternative fuels)
• New Pyrofloor PFC²829AW cooler with a Pyrocrusher PRC 420-3ES clinker crusher.

KHD will also be supplying its KHD ProMax software product as part of the project.

Matthias Mersmann, chief technology officer at KHD, said “The decision by Cimpor Portugal to opt for KHD pyroprocessing equipment - and especially the Pyrorotor - underlines the leading market position of KHD, as well as the outstanding capability of KHD’s unique alternative fuel-processing solution.”

Project execution will be led by KHD Germany, with support from Humboldt Wedag India and the Turkish branch office of Humboldt Wedag. Commissioning of the upgraded production line is scheduled for 2025.

Taiwan Cement said this week that it is aiming for cement to account for less than half of its sales by 2025. At the annual shareholders’ meeting chair Nelson Chang defended the cement sector as a core business but said that the company was expanding more into the green energy sector through its energy storage and vehicle charging lines. Chang directly linked the strategy to growing carbon taxes around the world, such as the European Union Emissions Trading Scheme, where the carbon price has been occasionally close to pushing past Euro100/t since early 2022. Taiwan Cement formed a joint venture with Türkiye-based Oyak Group in 2018 that runs Cimpor in Portugal.

Table 1: Cement business share by revenue of selected cement producers. Source: Corporate annual reports.

Taiwan Cement’s plan to decrease its reliance on cement is becoming a familiar one. Holcim notably revealed in 2021 that it was growing its light building materials division. Its cement division represented 60% of sales in 2020 with concrete and aggregates making up most of the rest to 92% and the remaining 8% on other products including light building materials. This started to change with the acquisition of roofing and building envelope producer Firestone Building Products in 2021. Other similar acquisitions have followed. Holcim’s current target is to grow the Solutions & Products division to around 30% by 2025, with cement reduced to somewhere between a third and half of sales. Earlier this year Japan-based Taiheiyo Cement said it was doing a similar thing as part of its medium-term strategy to 2035. In its case cement represented 70% of its sales in 2022 but it is now aiming to reduce this to 65% by 2025 and 50% by 2035.

A common pattern for the business composition of European cement companies is a mixture of heavy building materials made up of cement, concrete and aggregate. However, not every cement company follows the same route. Some cement companies are simply parts of larger conglomerates. UltraTech Cement, for example, is mostly just a cement company. However, it is also part of Aditya Birla Group, which runs a wide range of industries including chemicals, textiles, financial services, telecoms, mining and more. Depending on how one looks at it, UltraTech Cement’s cement business ratio is large or Aditya Birla Group’s ratio is small. Siam Cement Group (SCG) in Thailand is another example of a cement producer operated by a conglomerate with other major businesses.

A different approach that some cement producers take is to mix cement production with complimentary businesses outside of heavy building materials. A good example of this is Votorantim Cement in Brazil, which manufactures cement and steel. Companhia Siderúrgica Nacional (CSN) is another Brazil-based cement producer that is also well known for steel production. Adani Group in India, meanwhile, was well known for logistics, power generation and airports before it purchased Ambuja Cements and ACC from Holcim in 2022.

The driver for cement companies looking to reduce cement as a proportion of their businesses has varied between the three examples presented above. Holcim’s approach has been in response to growing European carbon costs but it also fits with a general desire to broaden its business as the company has sought to reshape itself following the merger between Lafarge and Holcim. Taiheiyo Cement’s plans also have a sustainability angle but the Japanese market has been in slow decline since the 1990s and this has been made worse by the spike in energy prices since 2022. Investing in new businesses makes sense for either of these reasons. Lastly, Taiwan Cement says it is taking action in response to carbon prices around the world. However, its proximity to many other large-scale producers in the Far East may also be a factor. Whether more companies follow suit and also start to reduce the ratio of their cement businesses remains to be seen. Yet, mounting carbon taxes and global production overcapacity look set to make more of the larger cement producers consider their options in certain places.

Cape Verde: Portugal-based Cimpor has signed a deal with the government of Cape Verde to develop and exploit a pozzolan deposit over the next 30 years. Exploration of the site is expected to begin by late 2024. The immediate location has reserves of around 0.5Mt in an area of 108 hectares. However, the scheme also has the option to expand the site to 790 hectares, increasing the estimated pozzolan reserves to 4Mt. The project has an investment of Euro3m and is expected to create around 80 jobs.

Cimpor’s parent company OYAK Cement previously said in 2019 that it was planning to invest in pozzolan extraction in Cape Verde.

Türkiye: OYAK Çimento and Taiwan Cement Company (TCC)s’ joint venture says that it has successfully restarted one of its Turkish cement plants following an earthquake on 6 February. The Netherlands-based joint venture said that two further plants remained at a standstill due to a regional power outage.

Two major tremors, of magnitudes 7.8 and 7.5 on the Richter scale, originated near Gaziantep in Türkiye’s Southeastern Anatolia Region. TCC immediately activated its Employee Care Plan to assist and arrange aid for employees and their families, dispatching 100 emergency kits by courier.

On 8 February 2023, rescuers had reported that 9460 people had died in the catastrophe, 6960 in Türkiye and 2500 in Syria.

The Ministry of Trade in Türkiye said this week that it was monitoring developments in the construction industry. Specifically, the ministry is reacting to complaints it has received about the high price of cement and supply issues. It has been looking at exports of clinker and cement. The statement noted that prices had risen particularly in the last one to two months and that the government was prepared to take unspecified action to alleviate the situation.

The comments hark back to the autumn of 2021 when members of the Construction Contractors Confederation (IMKON) stopped working for two weeks in response to high prices including cement. At the time the ministry tightened its rules on exporting cement and clinker. This followed the start of an investigation into alleged anti-competitive behaviour by the regulator Rekabat Kurumu into nine cement producers in the first half of that year. Around the same time Türk Çimento, the Turkish Cement Manufacturers' Association, had also been warning about growing raw material and energy costs. It noted that declining domestic sales between 2017 and 2019 had encouraged its members to focus on export markets more. All of this was overshadowed in February 2022 when Russia invaded Ukraine and global energy prices spiked. Türk Çimento then warned of the trouble that high coal prices were causing the sector.

Graph 1: Domestic and export cement sales in Türkiye, January – September, 2017 – 2022. Source: Türk Çimento.

Graph 1 above shows that the trend towards exports that Türk Çimento pointed out in mid-2021 has continued. Domestic sales fell to a low of 33.2Mt in 2019, recovered to 2021 and dropped somewhat so far in 2022. As an aside, that decline in domestic sales from 2017 to 2019 was the first the local cement industry had experienced a fall in sales since at least 2002. Exports fell year-on-year in 2018 but have increased steadily since then to 14.6Mt in the first nine months of 2022. Exports represented 10% of total sales in 2017. So far in 2022 they have accounted for 27% of total sales. Türk Çimento’s take on the picture so far in 2022 is that it expects the domestic market to decline by 10% in 2022 in all regions of the country principally due to high commodity prices. Cement exports are expected to increase but clinker exports to decrease.

Commercially, Türkiye-based cement producers have reacted to high energy prices by upping their own product prices in turn. OYAK Çimento, for example, reported significant rises year-on-year in sales revenue and earnings in the first nine months of 2022. Net sales grew by 160% year-on-year to Euro403m and earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 202% to Euro106m. Akçansa and Çimsa reported a similar situation.

Despite the high energy costs, both investment and merger and acquisition activity has continued in the cement sector in 2022. In August 2022 Fernas Group completed its purchase of two integrated cement plants, a grinding plant and associated ready-mix concrete assets from Çimsa Çimento for US$110m. Later in the year, in November 2022, Safi Çimento acquired Sancim Bilecik Çimento’s integrated plant from Aşkale Çimento. Various upgrade projects to cement plants were also reported including projects at KÇS Kipaş Çimento’s Kahramanmaraş plant, Nuh Çimento’s Hereke cement plant, MEDCEM’s Silifke plant and OYAK Çimento’s Ünye plant.

Recent reporting by the Economist newspaper suggests that the government is targeting the domestic housing sector in response to higher than inflation price rises even compared to Türkiye’s high consumer price inflation rate. The next general election in June 2023 may also be encouraging legislators to look at the accommodation needs of their constituents. Whether this is connected to the Ministry of Trade’s recent decision is unknown. Cement producers have followed the money to lucrative export markets in recent years. How far the government is willing to intervene in this strategy could mark a change in direction for the sector.

Türkiye: OYAK Cement has ordered a 5000t/day Pendulum Cooler from Germany-based IKN for its integrated plant at Ünye. The contract was signed at the 16th TurkÇimento Technical Seminar that was held in Antalya in late October 2022. No price for the order has been disclosed.

Turkey: OYAK Cement has detailed its progress towards net zero CO₂ cement production in its Integrated Report 2021. The report's focus is sustainability and digitalisation. Under itsCement 4.0 CO₂ emissions reduction initiative, OYAK Cement has proceeded with efficiency improvements at its cement plants.

OYAK Cement is committed to net zero CO₂ cement production by 2050 and reductions in line with the Paris Agreement to limit global climate change to 1.5°C by 2030.The producer is collaborating withthe Science-Based Targets Initiative (SBTi) to realise its emission reduction goals.

African cement producers have confirmed their interest in calcined clay over the last month with two new projects. The big one was announced last week when FLSmidth revealed that it had received an order from CBI Ghana. This follows the launch of a Limestone Calcined Clay (LC3) project in Malawi in mid-March 2022 in conjunction with Lafarge Cement Malawi.

FLSmidth says that its order includes the world’s largest gas suspension calciner system and a complete grinding station. The kit will be installed at CBI Ghana’s plant near Accra in the south of the country. The new clay calciner system is expected to substitute 30 - 40% of the clinker in the final product, resulting in a reduction of up to 40% CO₂/t of blended cement compared to Ordinary Portland Cement (OPC). Overall the equipment manufacturers reckon that the grinding plant will reduce its CO₂ emissions by 20% compared to its current output. There has been no indication of how much the order costs but CBI Ghana expects energy and fuel savings, as well as lower overheads from clinker imports.

The public announcement of the Ghana project was also foreshadowed by the visit of Professor Karen Scrivener to the Ghana Standards Authority in February 2022. This was significant because Scrivener is the head of the Laboratory of Construction Materials at the Ecole Polytechnique Fédérale de Lausanne (EPFL) and has been one of the key instigators of the LC3 initiative since the early 2000s. Other calcined clay cements are available such as Futurecem or polysius activated clay (see below) but LC3 is arguably the most famous given its promotion in developing countries.

The Malawi project is at a much earlier stage. The government launched the public private partnership LC3 project in mid-March 2022 in conjunction with Lafarge Cement Malawi and Terrastone, a brick manufacturer. The Ministry of Mining is currently developing a memorandum of understanding with the Gesellschaft für Internationale Zusammenarbeit (GIZ), a Germany-based development agency. India-based Tara Engineering has also been linked to the scheme.

One thing to note about the Malawi project is that it is the first calcined clay project in the cement industry based in East Africa. All the other African ones are based in West Africa. The other two projects in this region are run by Turkey-based Oyak Çimento and its subsidiary Cimpor. The first of these is a 0.3Mt/yr calcined clay and a 2400t/day cement grinding production line that was commissioned in mid-2020. This plant is based at Abidjan in Ivory Coast. The second is a new plant that Germany-based ThyssenKrupp Industrial Solutions is building for Oyak Çimento at Kribi in Cameroon. This unit has a 720t/day calcined clay and a 2400t/day cement production capacity and it will use the supplier’s ‘polysius activated clay’ technology. ThyssenKrupp’s involvement came to light in early 2020 and commissioning was scheduled for late 2021. However, no update on the state of the project has been issued so far in 2022.

As the above examples show, Sub-Saharan Africa has at least one live calcined clay plant, two plants are being built and there’s one more at the development stage. This puts the region neck-and-neck with Europe, which has a similar mixture of current and developing projects. This column has been covering the wider trend of the growing usage of various types of blended cements recently, particularly in Europe and the US, with slag cements, Portland Limestone Cement (PLC) and more. With PLC, for example, note the transition of another two North American cement plants to PLC this week alone. As for calcined clay cement, it is fascinating to see the focus move to a different part of the world. Several commentators have predicted that the future looks set to be dominated by blended cements using whichever supplementary cementitious material (SCM) is most available for each plant. The growth in calcined clay confirms this view.

Global Cement is researching clay calcination use in the cement industry for the next edition of the Global Cement Directory. Email This email address is being protected from spambots. You need JavaScript enabled to view it. with any information on new industrial and research installations.

Turkey: OYAK Cement says that it eliminated 200,000t of CO₂ emissions during 2021 through its use of US-based DataRobot’s AI software. The producer said that the technology enabled it to multiply its alternative fuel (AF) substitution rate by seven an reduce its mechanical failure prediction time by 75%. It added that the software contributed to a US$39m/yr drop in costs.