Displaying items by tag: Plant

Egypt: ASEC Cement expects full production from the Arab National Cement Company (ANCC) in Minya to begin by the first quarter of 2013, creating 400 direct jobs and 1500 indirect jobs.

ASEC Cement has confirmed that it is on track to start commissioning at the US$335m ANCC plant , its 1.9Mt/yr clinker greenfield plant in the Upper Egyptian governorate of Minya, in the final months of 2012. ASEC Cement is the largest shareholder in ANCC with a 45% stake in the project.

Civil engineering work on site was completed by the end of 2011 but construction delays occurred due to the national political situation. ANCC and ARESCO, the contractor responsible for the steel fabrication and mechanical erection of the plant, and an ASEC Holding portfolio company are now implementing a recovery plan to complete mechanical and steel installation by the third quarter of 2012.

ANCC is one of Egypt's biggest project finance deals. In September 2010 ANCC signed an US$182m loan to finance the construction of its plant in Minya. The syndicated loan agreement involves a consortium of seven leading Egyptian and regional banks, which will cover 52% of the US$335m investment with the balance financed by the equity of ANCC. Other shareholders in ANCC include Misr Qena Cement (13.9%), Safari Investments (30.7%), IFU/FLS (9.2%) and other shareholders (1.1%).

US: Kansas-based Ash Grove Cement has announced an investment of over US$125m at its Midlothian plant in Texas in an effort to make it one of the lowest-emitting cement producers in the state. The decision to install a new preheater/precalciner production system was taken at the company's May 2012 meeting on 24 May 2012 and has been prompted by the need for the plant to lower its emissions ahead of the US Environmental Protection Agency's (EPA) portland cement National Emissions Standards for Hazardous Air Pollutants (NESHAP) rule that is scheduled to take effect in September 2013.

The decision, which comes hot-on-the-heels of a request to close the plant's existing wet production lines, was one option being considered by Ash Grove."We concluded that we wanted to continue to provide Texans with locally-made cement from our Midlothian facility for the foreseeable future and therefore approved the modernisation project," said Ash Grove Chairman Charles Sunderland. The decision secures jobs for the 110 people that work at the plant.

Ash Grove has invested millions of dollars in the Midlothian facility over the past four decades to reduce production emissions. Since 1996, Ash Grove has reduced the plant's NOx emissions by more than 60%. "Our employees appreciate the confidence the board has shown in them by making this decision," said Midlothian plant manager Kevin Blankenship. "We have generations of employees working here, many with decades of service. This decision demonstrates that Ash Grove will maintain its strong north Texas presence for our families, our community and our customers."

Reaction among community leaders also has been favourable."We are very pleased that Ash Grove has committed to investing to upgrade its plant here," said Midlothian Mayor Bill Houston. "Ash Grove is an outstanding corporate citizen and has always worked hard to be a good and responsible neighbour. "By investing in this key technology upgrade (the) plant will remain viable, competitive and environmentally-friendly for many years to come."

Denmark/US: FLSmidth has been awarded a contract worth approximately US$136m by an un-named customer in the US for the modernisation of its cement production facility.

The purpose of the engineering, procurement and construction project is to convert one of the plant's existing wet process kilns to a dry preheater/precalciner kiln. As a result, the customer will be able to better fulfil its key environmental objectives, namely reduction of emissions and achieving lower energy consumption.

The equipment includes an FLSmidth drier crusher, modification of the existing kiln, a new 1-stage preheater with calciner, a kiln bypass system, an FLSmidth Cross-Bar cooler, a coal dosing system by FLSmidth Pfister and an ATOX solid fuel mill with an FLSmidth MAAG Gear reducer.

With the installation of three new FLSmidth fabric filters, the project will significantly improve the plant's ability to reduce the particulate emissions. Similarly, an FLSmidth control system will optimise operational efficiency. The scope of supply also includes a new HOTDISC reactor that will allow the plant to increase its consumption of whole car tyres, thus increasing its use of alternative fuels.

FLSmidth said that the award of this contract demonstrates the company's ability to help US cement producers prepare for the anticipated National Emission Standards for Hazardous Air Pollutants (NESHAP) regulations. "The United States cement industry is facing a number of challenges, ranging from a slowly recovering economy to significant regulatory changes in plant emission standards. We are very pleased to work with one of our much valued customers as it takes a leading role in investing in the future of this industry," said Group CEO Jørgen Huno Rasmussen. The order will contribute beneficially to FLSmidth's earnings until mid 2014.

Tunisia: A new cement plant has begun production in the region of Rouissat Chbika in the governorate of Kairouan, Tunisia. It is a unit of the Tunisian-Spanish Company SOTACIB, a subsidiary of Spanish group Cementos Molins and has cost the company US$2890m. It has created 350 jobs and will produce 4000t/day once it is fully commissioned.

Russia: The leading Russian cement producer Eurocement has placed an order worth more than Euro80m with KHD for a new cement plant to be built in Stavropol, Russia.

The contract between Stavropolsky Zavod Stroitelnih Materialov, a member of the Eurocement Group, and ZAB Zementanlagenbau GmbH Dessau, a subsidiary of KHD Humboldt Wedag International AG, is for a new cement plant with an annual output of 1.3Mt/yr.

KHD's scope will cover the supply of production equipment, starting from raw material crushing all the way up to cement loading and packing. KHD will also supply automation and control equipment for the new production line. In addition, the companies concluded a separate contract for erection and commissioning supervision services, which is part of the total order volume.

The project will be booked as order intake immediately upon receipt of a down payment.

Denmark: FLSmidth has signed a contract worth approximately Euro85m with a company in the Middle East to supply a complete 6000t/day cement production line. The country and precise location of the plant were not announced.

The contract comprises complete equipment supplies and includes a combined limestone and clay crusher, a gypsum crusher, a circular stacker and reclaimer store, a stacker and side scraper store for additives, an ATOX vertical raw mill, a CF silo, a double-string preheater tower, a ROTAX kiln, an FLSmidth Cross-Bar cooler, an OK mill and equipment for the packing and dispatch of cement. FLSmidth will also supply automation equipment.

"FLSmidth has a long history in the Middle East and is maintaining its leading role in serving the rapidly-expanding cement market," said Group CEO Jørgen Huno Rasmussen. "The growing economy and increasing infrastructure investment in the region continue to offer opportunities. This project confirms that the slowdown from the 'Arab Spring' is lifting."

The company added that the cement plant would feature state-of-the-art equipment including the latest technology to ensure an environmentally-friendly and energy-efficient production process.

Iraq: The board of directors of Pakistan's Lucky Cement Company has decided to set up a greenfield cement grinding plant with a production capacity of 0.87Mt/yr in Iraq under a joint venture. The board also decided to invest US$15m in the cement plant, which is estimated to cost US$30m as 50% share of its equity. The technical and financial evaluation of the proposed project has already been carried out.

Nigeria: This week has seen a major development in the Nigerian cement industry, with a call from domestic manufacturers to ban cement imports, three months ahead of the government's schedule for the ban. The call has been presented in some quarters as proof that the country, long blighted by high cement imports, has achieved President Goodluck Jonathan's bold target of making Nigeria a net exporter of cement before 2013. In the face of steadily diminishing oil revenues the government would like Nigeria to be known as the regional cement exporter, but what else might happen?

According to the Cement Manufacturers' Association of Nigeria (CMAN), the country's total cement capacity now stands at 22.5Mt/yr. Domestic consumption is estimated at 18.5Mt/yr, translating into a required capacity utilisation rate of 82%. It is bizarre, therefore, that cement producers feel the need to call for an import ban. Perhaps:

a) The producers know that they can't compete with the low cost of imports from outside Nigeria,

b) The producers want to recoup their plant investment costs as quickly as possible,

c) The producers know that they can't export if the country continues to import.

With notoriously poor transport links within Nigeria, option c may be a small factor. If road and rail links are poor, transport costs increase and exports become less desirable for both the supplier and the end-user. What is more likely however, is a combination of a and b. Producers need to recoup their investments but can't if China and India can undercut them from thousands of miles away. If the desire to recoup investments goes unchecked when the import ban comes in, there is a high potential for cartel-like behaviour to surface again in the country.

One does not have to look back far to the last major incident of apparent cement market cartelisation in Nigeria. In mid-2011 President Jonathan had to step in and personally call for a 25% price reduction. His target was hit within three months, but since then prices have slowly started to rise again, even with Dangote's Ibese 6Mt/yr plant coming online just three months ago! With four producers committed to setting up a 3Mt/yr plant each by 2015 in exchange for 2011 import licences, the supply of cement in Nigeria will continue to rise, making the temptation to collaborate even stronger.

Russia: Alexei Gordeev, governor of the Voronezh Region, has met with Mikhail Skorokhod, president of Eurocement, to discuss the ongoing construction of a new plant.

Skorokhod noted during the meeting that construction of the plant was in its final stage, with an expected completion date of construction in May 2012. The plant will have a clinker capacity of 6000t/day (2Mt/yr) and occupy an area of 33.4 hectares. By July 2012 the company expects production of the first tonne of cement. By August 2012 landscaping will be completed. In 2012 the new plant is expected to produce 0.5Mt, with full capacity met by 2014.

Gordeev and Skorokhod also discussed development of local transport infrastructure, including the reconstruction of the railway station. Eurocement offered to fund design works for the construction of an overpass and an adjacent road whilst the governor raised the possibility of including the cost of improving transport infrastructure in the region in the regional budget.

UK: Cemex is planning to start building two new waste recycling plants in the UK later in 2012. As part of the project up to 30 new jobs operating a site in Rugby, Warwickshire will be created.

Cemex is working with recycling management company Sita UK to produce the alternative fuel, Climafuel, which is made out of domestic, commercial and industrial waste. It plans to build two new waste recycling plants, one in Birmingham and the other in Malpass Farm, next to its existing Rugby cement plant. Work is due to start later in 2012 with an opening date set for 2014. The Birmingham plant is due to start operation later in 2012 and it will also provide fuel for the Rugby Cemex plant.

Together, the two plants will be able to produce and supply up to 250,000t of Climafuel to Rugby which is currently permitted to use up to 65% Climafuel in its fuel mix. A current application to the Environment Agency could see this increase to 80%.

Dan Panormo, Cemex's renewable energy manager, said "With the fuel coming from within a 30 mile radius of the cement plant from Birmingham and subsequently from Malpass Farm, it guarantees the environmental credentials of this alternative fuel."