Displaying items by tag: Plant
India: According to the Hindu Business Line, Sanghi Industries has installed a 1.2Mt/yr capacity grinding mill at its plant in Sanghipuram, Kutch. This increases the plants total capacity to 4.1Mt/yr. Sanghi Industries also plans to install a 15MW waste heat recovery system at the plant.
Angola: According to Macau Hub, the Kwanza Sul Cement Factory (FCKS) plans to increase its production to 4500t/day from the current 4200t/day.
The director of the plant's accounting department, Alberto Kiala, said that the increased production would result from increased financial resources to buy raw materials and fuel. FCKS, which produces the Yetu brand of cement, started operating in Angola in February 2014. The plant has units for clinker production, a 41MW power plant and a factory to produce paper bags for packing cement.
Nigeria: According to Business Day, Cement Company of Northern Nigeria (CCCN), plans to inject US$241m into the ongoing modernisation of its facilities to double its production capacity.
Managing director Alf Karlsen said that the project would raise the company's cement production capacity by 200% to 1.5Mt/yr. "The expansion is part of the ongoing modernisation and cost optimisation programme. It aims to reduce costs and enhance production capacity with a view to ensuring that CCNN remains competitive in the cement industry. The increase in installed capacity would enable the company to maintain its current market share and expand into new markets," said Karlsen. Karlsen also disclosed that CCCN has completed the acquisition of new mining areas to expand its quarry activities.
CCCN's expansion project has led to the relocation of the Sabon-Gida, Danatu and Gidan Mubaga villages, 'to a fully developed new settlement provided by the firm.' "CNN provided the land for resettlement, constructed access roads, provided electricity, mechanised borehole with reticulation, as well as a community mosque, clinic, primary and Islamiyya schools, among others. All this was done to ensure that there is an improved life for the communities as part of our corporate social responsibilities," said Karlsen.
UAE: According to UAE Interact, the UAE's Ministry of Environment and Water has conducted field inspections at cement plants to determine their compliancy with national standards. A team of specialists from the external audit sector conducted both scheduled and surprise visits to nearly 20 cement plants as part of their annual evaluation process for ensuring complete implementation of the legislation. Saif Al Shara, assistant undersecretary of the UAE Ministry of Environment and Water's external audit sector, said that the latest assessment results show that the plants adhere to 60% of category A national standards, up from their 39% compliancy in 2013. For category B, cement plants complied with 35% of standards, compared to 33% in 2013. Finally, for category C, compliance fell from 17% in 2013 to 5%.
KKR backs SIMEC on ABG Cement buyout
02 July 2015India: According to The Economic Times, private equity company KKR will team up with diversified trading and commodities group SIMEC to invest US$142m to take over the cement business of debt-laden ABG Group through a complex, multi-tiered financial transaction. The funding will help ABG's founder promoter Rishi Agarwal to complete the 'last mile' of his much-delayed cement plant project in Gujarat.
The first leg of the 'special situations' transaction, which will be concluded in the coming weeks, will see KKR fund SIMEC to gain a 51% controlling stake in ABG Cements for US$82.6m. This will be followed by an additional US$60.6m of funding collateralised by Agarwal's unencumbered shares in the company. The money will be used to finish the project, fund working capital and pay back overdue creditors.
ABG Cement has been planning a 5.8Mt/yr cement plant in Gujarat since 2010. However, due to significant cost and time overrun, only a 3.3Mt/yr clinker plant at Kutch near the limestone reserves was completed. Agarwal ran out of money to complete the grinding unit at Surat. The plant is ultimately expected to produce slag cements with blast furnace slag coming from Essar Steel. It will be the only slag cement plant in western India.
SIMEC has already made a part payment to show its commitment to the deal. KKR, too, has signed a term sheet with ABG's management. A detailed due diligence process is currently ongoing. In 2014, SIMEC had agreed to buy into ABG's cement business, but the deal was not concluded. Now with KKR's funding, it is expected to close soon.
JSW Cement to start four greenfield grinding units
29 June 2015India: According to the Deccan Herald, JSW Cement plans to start four more greenfield grinding plants, two each in West Bengal and Tamil Nadu, as part of its plan to grow its cement and clinker capacities to 20Mt/yr by 2018.
JSW Cement director and CEO Anil Kumar Pillai said that the company expects cement demand growth in its current fiscal year, which ends on 30 September 2015 and will gain pace in the next fiscal year. "The government's new infrastructure-led industrialisation plan will really boost cement demand. Already analysts have predicted a double-digit GDP growth rate, which will give a 15% hike in cement demand," said Pillai.
The greenfield projects are part of JSW Cement's US$1.41bn investment plan. "Each of the projects will have an investment of US$54.8 – 62.6m. In Tamil Nadu, we have identified one location at Tuticorin and the other will be near Puducherry. It will take 36 months to commission the units. Funds for these projects will be raised via internal accrual and bank borrowings," said Pillai.
JSW Cement is looking for land in West Bengal and will announce the details soon. The company has production plants in Vijayanagar and Bellari in Karnataka, Dolvi in Maharashtra and Nandyal in Andhra Pradesh. JSW Cement has achieved 55% of its production capacity in the last fiscal year. "In the last fiscal year, we produced 3.2Mt of cement and we have set a target of 4.2Mt in the current fiscal year. We expect to achieve 65% capacity utilisation once growth momentum gains in the third and fourth quarter," said Pillai.
Regarding industry rumours that JSW Cement is in the race to acquire Lafarge's cement assets in Jharkhand and Chhattisgarh, Pillai said that the company was open to inorganic growth and will not go for exports.
Meanwhile, JSW Cement is installing a 10MW power plant that uses waste gas in Nandyal. "JSW Cement has committed US$15.7m of investment for this project and it will be commissioned within 12 to 14 months," said Pillai.
Oman: According to the Middle East North Africa Financial Network, Oman Cement has said that due to operational difficulties, it has had to prolong the shutdown of a 4000t/day kiln for planned maintenance. CEO Jamal al Hooti said that the closure has resulted in lower production and sales in recent months, which has had an impact on company performance during the current quarter.
Cement plant utilisation jumps to 85% in Philippines
26 June 2015Philippines: The Manila Bulletin has reported that the capacity utilisation of local cement plants has increased to 85% from 68% in 2014 due to strong domestic construction activities, according to the Department of Trade and Industry (DTI).
DTI undersecretary Victorio Mario Dimagiba said that there is enough cement supply to meet demand. He added that the Philippines had 31.3Mt/yr of cement production capacity in 2014, when consumption was 21.3Mt, or 68%. At present, however, plant capacity utilisation has reached 85%.
The increase in demand in the Visayas and Mindanao areas in the past two weeks was to pre-empt the onset of the rainy season. Dimagiba said that, even though there are cement plants in these regions, there is a huge logistical challenge in the transport of cement to the islands. He added that should local demand in these regions exceed production, imports could augment the shortfall.
Egypt/Sudan: According to Daily News Egypt, Qalaa Holding for Investment has signed an agreement with Financial Holding International (FHI) to sell FHI some of Qalaa's units. This is in line with Qalaa's aim to exit from some of its non-basic businesses and to reduce its consolidated debts of US$105m.
Qalaa will sell FHI its stakes in MENA Homes, Grandview and Dina Farms Land Companies, which will be separated from Dina for Agricultural Investments. In return, Qalaa will buy FHI's stakes in several affiliated companies, including cement producer ASEC Holding, as well as Taqa Arabia and Mashreq Petroleum in the energy sector. Qalaa will also buy FHI's stakes in Nile Logistics International in the Transport and logistics sector, Dina Farms Supermarkets in the retail sector and United Company for Foundries (UCF) in the metallurgical industry sector. The deal is expected to be finalised by December 2015, after the customary conditions and requirements are met.
Abdallah El-Ebiary, managing director of Qalaa's cement division, said that the cement sector is a main strategic area for Qalaa and that it has no intention of exiting it, nor the transport and energy sectors. He added that FHI plans to build a new pulveriser mill at the ASEC Cement plant in Minya, Egypt within the company's plan to convert to alternative energy due to the energy deficit and gas crisis. The cost will be US$30.2m and it will be built in the fourth quarter of 2015. "The company's strategy for the next period is to diversify to new and cheap energy sources instead of the traditional and unavailable sources. The investment cost is at US$30.2m, with US$1.31m for a pulveriser mill and US$11.8m for alternative fuel production," said El-Ebiary.
Qalaa also plans to increase the production capacity of its Takamol cement plant in Sudan from 430,000t/yr to 800,000t/yr in 2016. Qalaa aims to establish a new coal mine for the plant. The plant is 51% owned by ASEC Cement and 49% controlled by the Sudanese Social Security Investment Authority (SSIA), the entity that manages all pension funds in Sudan.
New RDF plant comes online in Pasig, Manila
25 June 2015Philippines: According to the Philippine Daily Inquirer, on 24 June 2015 the Pasig City government brought online what it described as, 'The country's largest facility for turning rubbish into fuel, capable of processing 600t/day of trash.'
The plant, which is Pasig City's joint project with the IPM Construction & Development Corp (IPM) and the Metro Manila Development Authority (MMDA), can process almost all of the city's daily waste production into refuse-derived fuel (RDF). Pasig City mayor Maribel Eusebio said that the plant would produce fuel pellets from the waste, which would then be supplied as an alternative fuel to cement plants. The RDF is majority-owned by Basic Environmental Systems & Technologies (BEST), a subsidiary of publicly-listed Minerales Industrias Corp, as well as France-based Lafarge Industrial Ecology International.
The plant mechanically segregates waste, selecting garbage with high thermal value that will be shredded, made into pellets and wrapped into bales. The plant is expected to convert 25 – 35% of the processed waste into alternative fuel for cement kilns. "The plant addresses serious concerns on increasing municipal solid waste and disposal," said Eusebio. "The RDF plant also complies with the waste diversion requirement of Republic Act No 9003 or Ecological Solid Waste Management Act of 2000. It also addresses climate change issues associated with how municipal wastes are managed."
The use of RDF in lieu of coal addresses the twin issues of solid waste management and climate change. "This is the largest RDF plant in the Philippines to date," said Isabelita P Mercado, president of IPM, which operates and manages the plant. "This is also a pioneering endeavour to save the environment by reducing our dependence on fossil fuel."