Displaying items by tag: Plant

India: The Hynniewtrep National Liberation Council (HNLC) has claimed responsibility for an improvised explosive device (IED) blast which injured one person and damaged a wall and water pipes at Star Cement’s cement plant in the East Jaintia Hills district of Meghalaya. The Press Trust of India has reported that the attack resulted from the producer’s failure to pay protection money as a non-locally-owned business.

Uzbekistan: Suppliers have completed the delivery of equipment from China for cement production at Fergana Yasin Qurilish Mollari’s Fergana cement plant. Trend News has reported that the Uzbek-Chinese joint venture will complete the second phase of the plant’s construction in July 2021, at a cost of US$120m. As a result its capacity will rise to 2.0Mt/yr.

Canada/US: Brazil-based Votorantim Cimentos says it has agreed to form a new 83%-owned subsidiary based in Toronto to combine the assets of McInnis Cement and St Mary’s Cement. Caisse de dépôt et placement du Québec (CDPQ), the current owner of McInnis Cement, will hold a 17% stake in the joint-venture. The group says that it will manufacture, distribute and sell building materials in the companies’ existing regions in Canada and the US.

Votorantim Cimentos said, “The company believes this transaction will result in the creation of a competitive, nimble and highly efficient business that will be better able to supply cement to customers in Canada and the US. In addition to strengthening the company’s presence in North America by expanding its current cement production capacity by 2.2Mt/yr and combining the company’s Great Lakes-focused distribution network with McInnis Holding’s complementary distribution network in Eastern Canada and the Northeastern USA, the Company anticipates the Transaction will result in substantial synergies.”

The transaction is subject to approval by regulatory authorities in Brazil, the US and Canada.

Turkey: Denmark-based FLSmidth has released details about a new clinker production line it is currently supplying to Bursa Çimento. Work at the site is underway at present covering the line from crushing to clinker cooling. The new line is scheduled to start at the end of 2022. FLSmidth says the equipment it is supplying includes a Hotdisc Combustion Device, which will help increase the substitution rate to 86%, the highest in Turkey. The order also includes an OK Raw Mill, a Rotax-2 kiln, Pfister feeders and new air pollution process filters.

"The modernisation of our Bursa site is a strategic investment, providing us with a more competitive cost base,” said Osman Nemli, General Manager at Bursa Çimento. “But just as important is the entire upgrade which focuses on reducing emissions and power consumption. In this way, we are proactively mitigating future possible environmental regulation."

Sri Lanka: Lanwa Sanstha Cement says that its upcoming 2.4Mt/yr Hambantota cement plant is on schedule for commissioning in June 2021. The total investment in this first phase of the project is US$70m. The Daily News newspaper has reported that the second phase of the project will consist of an expansion of the plant’s production capacity to 3.6Mt/yr at an additional cost of US$10m. Germany-based Gebr. Pfeiffer and Siemens have supplied the plant’s production equipment, while Denmark-based FLSmidth is supplying its packaging equipment.

Chair Nandana Lokuwithana said, “This facility will serve to benefit the construction industry tremendously by delivering products of premium quality to the market. The plant is the first of its kind in Sri Lanka to use cutting-edge European technology to yield optimum outcomes while being environmentally conscious through continuous monitoring.”

Russia: Sibirskiy Cement subsidiary Krasnoyarsk Cement says that it has installed a new electrostatic precipitator on Kiln 5 at its Krasnoyarsk cement plant as part of an environmental upgrade project. It spent US$3m on the equipment from Switzerland. It says that it has made ‘a significant contribution’ to the company’s goals under the Clean Air national project. The company has also installed an automatic emission control system at the plant.

The cement producer now plans to upgrade the plant’s primary limestone crushing equipment for US$203,000 and install a new automated measuring system for US$379,000. It has estimated that its full-year cement output in 2020 will increase by 2% year-on-year to 621,000t from 609,000t in 2019.

Australia: Germany-based Flender has announced the opening of a new production and testing centre in the Perth suburb of Bayswater, Western Australia. The supplier says that the 3500m² facility is equipped with a 1.5MW load test bench capable of testing complete drive systems up to a voltage of 6.6kV.

Chief executive officer (CEO) and general manager Kareem Emara said, “Our recent growth in Western Australia has been great and a testament to the quality of our products, service and technical know-how. As we continue to grow, we want to reinvest in this key market and be where our customers are to offer them the combined brains trust of over 50 facilities worldwide through this new state-of-the-art centre.”

Manoj 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.

The proceedings pack and video from the Virtual Middle Eastern Cement Conference 2020 is availabe to buy now

Pakistan: 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.

India: The Tamil Nadu Pollution Control Board (TNPCB) has fined ACC subsidiary Madukkarai Cement US$61,000 for fugitive emissions of clinker and cement dust in mid-2020. The Hindu newspaper has reported that inspections found dust in the village Kurumbapalayam, Coimbatore District, located on the eastern side of the cement plant. An ambient air quality survey in September 2020 revealed higher-than-prescribed particulate volumes.

In addition to paying the fine, the producer must comply with 19 instructions of the TNPCB for air pollution control and monitoring by 7 January 2021.