Displaying items by tag: Plant

Philippines: Holcim Philippines has plans to invest US$350m to US$450m on building a new 2Mt/yr cement plant due to increased demand and sales in the third quarter. This quarter is normally a weak season for the construction industry because of monsoon rains.

Holcim Philippines' chief operating officer Roland van Wijnen said that cement demand remained robust on account of sustained government infrastructure spending and steady rollout of residential and commercial projects. The Cement Manufacturers Association of the Philippines (CEMAP) has reported a growth rate of 20% since October 2011.

Holcim Philippines reported a 22.5% growth in its net income to US$61.5m in the first nine months of 2012 from US$50.3m in the same period of 2011. Revenues for the past nine months reached US$491m, an increase of 22.5% year on year. However, third quarter earnings in 2012 declined to US$12.5m from US$15.2m in 2011. The company attributed this to having to import clinker to augment production given that several of its facilities were under preventive maintenance.

"The challenge for us is to meet increasing demand over the longer term. We have begun reactivating our idle facilities, beginning with our terminal in Calaca, Batangas in 2011. Our grinding plant in Mabini will be operational by the third quarter of 2011," said van Wijnen. Holcim Philippines is now preparing a proposal for a new cement plant to be submitted for board approval in the first half of 2013. If built this will boost the firm's cement capacity to about 9.5Mt/yr with a completion date of 2016.

Tajikistan: New cement producer Suhgd Cement has opened a 100,000t/yr cement plant in northern Tajikistan. Tajik Energy and Industry Minister Gul Sherali attended the official opening ceremony on 20 October 2012.

The company intends its capacity to grow to 1Mt/yr, making it the biggest cement producer in the country. Equipment for the plant was sourced from Chinese suppliers at a cost of US$1.8m. More than 140 people work at the plant, which will rise to 300 when the capacity increases.

Tajikcement is currently the biggest cement producer in Tajikistan with a capacity of 1.1Mt/yr. However the country continues to import building materials to satisfy demand. In September 2011 the joint company Juaxin Gayur Cement JV, between Tajik Gayur and Chinese Juaxin Central Asia Investment, started construction of a 1Mt/yr plant in the Javan region costing US$100m. This plant is expected to be launched in autumn 2013.

Italy: Italcementi has announced that it will invest Euro150m in order to revamp its cement plant in Rezzato, which was built in 1964. Italcementi has stated that it wants to turn the plant into the most modern and ecological cement plant in Europe, with work set to start in November 2012. It said that the opening of the adapted plant would be scheduled for some time towards the end of 2014.

Italcementi's CEO Carlo Pesenti said that the restructuring would lead to an improvement in the environmental and economic sustainability of the plant, as well as cutting production costs by 23% and reducing specific consumption of raw materials by 8%.

South Africa: Sephaku Cement, a subsidiary of Nigeria's Dangote Cement, has secured US$223m of domestic debt funding for a US$389m cement plant and grinding facility project in Mpumalanga and North West provinces.

Two of the country's big four banks, Standard Bank and Nedbank, advised by Sasfin Capital, have jointly funded the 10-year deal. Sephaku said this was a 'strong' vote of confidence in South Africa's market and that the agreement would enable it to become a significant competitor in the wholesale and retail cement trade in the region.

Sephaku Cement, established in 2006, is an associate of JSE-listed Sephaku Holdings, a 64%-owned subsidiary of Nigerian-based Dangote Cement. Dangote had invested more than US$126m in the venture, the largest ever foreign direct investment in South Africa by an African company. The new project includes a production facility, which would produce about 1.2Mt/yr, at Aganang near Lichtenburg in North West.

Mexico: Mexican billionaire Carlos Slim and businessman Antonio del Valle have joined forces in a new cement venture in Mexico that plans to start operations in early 2013 with a capacity of 1Mt/yr.

Cementos Fortaleza, part of business group Elementia, is nearing completion of a plant in central Mexico at an investment of US$300m. In its initial phase the plant is expected to supply cement to retail users in central Mexico. The plant's first deliveries are expected in February 2013. Cementos Fortaleza will have an estimated 3% market share to begin with. It will compete with companies such as market leader Cemex and Holcim Apasco, a unit of Switzerland's Holcim.

Elementia Chief Executive Eduardo Musalem said at a press conference that Slim, through his company Grupo Carso SAB owns 46% of the Elementia and Del Valle 54%. Del Valle is one of the principal shareholders and honourary chairman for life of chemicals company Mexichem SAB.

Uruguay: Three cement companies are planning to invest up to US$262m in the Treinta y Tres region of Uruguay to meet demand for building materials driven by the 2016 Rio de Janeiro Olympic Games.

The Uruguan state oil and cement company Ancap, alongside Spanish firm Cementos Molins and Brazil's Votorantim, have filed an environmental impact study for a new cement plant with a capacity of 750,000t/yr. Total costs are estimated at US$160m, with Cementos Molins contributing 60% of the investment and Ancap and Votarantim contributing 20% each.

Ancap is also preparing environmental studies for two new lime production plants. A first unit will have a capacity of 150t/day with an investment of US$7m. Ancap has already secured a contract with Brazilian federal power holding group Eletrobras to place this production. A second unit will have a capacity of 500t/day with an investment of US$95m, including infrastructure costs related to the project.

In order to provide the region with better export options towards Brazil, Uruguayan port authority ANP is trying to develop a commercial route connecting the Merín and the Los Patos lakes. Merín lake is on the border between Uruguay and Brazil's southernmost state Rio Grande do Sul, and it is connected by the San Gonzalo canal to the Los Patos lake, which in turn empties into the Atlantic ocean.

South Africa: Pretoria Portland Cement (PPC) has been granted environmental authorisation by the Western Cape Department of Environmental Affairs and Development Planning for the second phase of its Western Cape modernisation project. This includes replacing two ageing cement kilns at its Riebeeck plant with a new five stage preheater kiln. However, interested and affected parties could still appeal the decision.

PPC has completed the first phase of its modernisation strategy, a US$33m upgrade of a cement kiln at the De Hoek plant near Piketberg, resulting in improved environmental performance and thermal efficiency. PPC embarked on its modernisation strategy to ensure that it will have competitive, energy-efficient plants that comply with future changes to South African environmental legislation. It estimates that the complete modernisation strategy will be sufficient to meet Western Cape cement demand until 2022.

Indonesia: Chinese producers are expected to increase their capacity in Indonesia to 65Mt/yr from 60.56Mt/yr, according to an Indonesian industry official.

"Production will increase by 7% because the capacity of the factories will be ramped up and there will be additional investment in the cement business as well," said Director General for Basic Manufacturing Industry, Panggah Susanto. The plans for investment have been approved by the Capital Investment Coordinating Board (BKPM).

Chinese producer Anhui Conch Cement Co Ltd has said that it will will build a 10Mt/yr plant in either South Kalimantan, East Kalimantan, West Kalimantan or West Papua.

China Trio Bit Engineering Co Ltd will build a 1.5Mt/yr plant in Subang, West Java. Another Chinese firm, State Development and Investment Corperation (SDIC), will build a 1.8Mt/yr plant in Papua. In addition, Siam Cement, the largest cement producer in Thailand, has also expressed interest in building a 1.8Mt.yr plant in West Java.

Kyrgyzstan: A rally against the Aravan Cement Plant had been held in the Aravan district of the Osh region in southern Kyrgyzstan.

Protestors demanded that cleaning filters be installed at the plant, funds be allocated to the local budget and local infrastructure be improved. In addition, they demanded that the plant owners sell cement to residents of the Aravan district at discounted prices.

The protesters have vowed to block the Aravan-Osh road if the plant's management ignores their demands. Additionally they have threatened to revoke the mandate of member of parliament Azamat Arapbaev, who is one of the plant's owners. The rally follows a residents meeting held on 12 September 2012 where similar demands were raised.

Critics of the protest have blamed professional agitators seeking money. In May 2012, a special commission conducted analysis of the air, water and soil at the plant and concluded that all the data met the required standards.

The Aravan Cement Plant started operation in September 2008 with a capacity of 200,000t/yr. About 380 people work at the site. The Aravan Cement Plant is a Kyrgyz-Chinese company.

Belarus: Belarusian President Alyaksandr Lukashenka has ordered the Homel Regional Executive Committee to cancel an investment agreement under which Iran's Azarab Industries Company was to build a cement plant in the Vetka district.

Under the agreement, signed in May 2010, the Iranian company was to invest at least US$200m dollars in the project and complete the plant within three years. The Belarusian authorities hoped that the plant would be put into operation within 24 months. The investor was also to be granted the right to develop two chalk deposits near Vetka for a period of 50 years and export up to 70% of the output of the 1Mt/yr plant.

Uladzimir Dvornik, head of the Homel Regional Executive Committee, said in March 2011 that although the first stage of the project was to be completed on 7 February 2011, Azarab Industries Company had not submitted an implementation report. Instead, in January 2011, the regional government received a draft lease agreement for land plots from the company, which contained provisions contravening Belarusian regulations. In March 2011 the Homel Regional Executive Committee sent a letter to the Iranian company to assure it of a favourable decision on its suggestions with regard to a fixed lease rate for 50 years.

"There has yet been neither reply nor action from the Iranian company, which does not contribute to the implementation of the investment project," said Dvornik. The regional government is now looking for new investors for the plant.