Displaying items by tag: Plant

US: Holcim US has appointed TotalEnergies to install, maintain and operate a 33MW solar power plant and 38.5MWh battery system at its Florence, Colorado cement plant. By storing energy with the battery system, the plant can relieve demand on the grid at peak times. Holcim will receive roughly 71,000MWh/yr of renewable energy under a minimum 15-year power purchase and storage services agreement (PPSSA). The partners expect the new systems to reduce the plant's CO₂ emissions by 40,000t/yr and its energy consumption by 40%.

Holcim North America’s vice president for procurement Atl Martinez said "As we work to accelerate green growth across the US, it's critical that we come to the table with partners who share similar goals around circularity and renewable energy. This initiative with TotalEnergies demonstrates an ongoing determination to transform our operations and lower our carbon footprint. It's a milestone investment that will decrease our reliance on other sources of energy and shrink our utility costs through a powerful combination of clean energy and efficient operations."

Bolivia: Empresa Publica Productiva Cementos de Bolivia (ECEBOL) now expects to commission its upcoming 1.3Mt/yr Potosí cement plant in June 2023. It would then begin selling bagged cement from November 2023 onwards. The La Razón newspaper has reported that ECEBOL has recorded 'physical progress' on the project of 92%, and executed US$264m-worth (85%) of a total planned investment of US$311m.

ECEBOL ran successful empty tests on installed equipment earlier in March 2023. Government representatives and local stakeholders will visit the plant on 30 March 2023.

Afghanistan: The government's Mines and Petroleum Ministry has awarded a contract for construction of a new 1Mt/yr cement plant in Kandahar Province. Bakhtar News Agency has reported that the project will have a budget of US$100m.

National Cement is preparing to open its new integrated West Pokot plant in September 2023. Readers may recall that the long-running project was taken over by Devki Group from Cemtech and Sanghi Industries after the Competition Authority of Kenya (CAK) gave it permission to do so in 2019. The original feasibility report by the Kerio Valley Development Authority dates back to 2010. The new plant will have a production capacity of 2.5Mt/yr.

However, this isn’t the only new clinker production capacity that Devki Group, which sells cement under the Simba Cement brand, is preparing to commission. Local media also reports that the company is also preparing to restart the former Athi River Mining Cement integrated plant at Bondora in Kaloleni, Kilifi County. After five months of trial runs the unit should be ready for full operation from April 2023. Devki Group also picked up this plant in 2019 following the long breakup of ARM Cement, after the latter producer entered financial administration back in mid-2018.

Devki Group started out in the steel sector but it has been steadily carving out a presence in the cement industry. The group opened its first cement grinding plant in 2013 and then built a 1.95Mt/yr integrated plant in Kajiado County, south of Nairobi, in 2018. Once the West Pokot plant is commissioned, the company will reportedly have a clinker production capacity of 7.5Mt/yr from three plants.

This kind of growth is making waves in the local cement sector. Since Global Cement Weekly covered the situation in September 2022 (GCW576), an argument has been brewing in Kenya over whether the country should import clinker or manufacture more of its own. This has moved to lobbying the government on whether the duty on imports of clinker should rise from 10% to 25%. Unsurprisingly, the country’s largest clinker producer, National Cement, even before the new plants are operational, has been a major advocate for putting up the import tariff. This carried over into 2023, when local press revealed the minutes of a meeting between the State Department of Industry and the Kenya Association of Manufacturers (KAM), with input from the cement producers. Rai Cement, Bamburi Cement, Savannah Cement, Ndovu Cement and Riftcot were all against raising the tariff, saying that it would enable the largest clinker producers, National Cement and Mombasa Cement, to dominate the market. However, unlike the last such meeting, Mombasa Cement was said to be non-committal on the proposal to increase the duty. Despite the disagreement over the tariff, all of the cement companies imported clinker in 2021.

Graph 1: Rolling annual cement production in Kenya, 2019 - October 2022. Source: Kenya National Bureau of Statistics (KNBS).

Rolling annual cement production in Kenya peaked at just over 10Mt in May and June 2022. Data from the Kenya National Bureau of Statistics (KNBS) shows that monthly production started to fall on a year-on-year basis from July 2022. This is likely to be connected to the elections that took place in August 2022, although wider economic trends such as inflation and high input material prices may not have helped either. Despite this, cement production rose by 5% year-on-year to 8.02Mt in the first 10 months of 2022 from 7.65Mt in the same period in 2021.

Other recent news of note in Kenya includes the restart of clinker production at East African Portland Cement’s (EAPC) Athi River Plant in mid-2022. The upgrade was conducted as part of a general five-year upgrade and expansion campaign by the company. The next steps were announced in January 2023 with a stated intention to consider entering markets in the Democratic Republic of Congo and Rwanda. The other story of note was in December 2022, when China-based Sinoma International Engineering announced that it had signed a deal with Savannah Cement to build a new 8000t/day clinker production line with a 2400t/day cement grinding unit, a 35MW captive power unit and a 13MW waste heat recovery unit. As is standard for Sinoma’s new contract releases, it said that the contract would become active once an “advance payment guarantee” had been received. Later in December 2022 the Kenya High Court intervened to stop two creditors from seizing assets from Savannah Cement and putting it into administration, although the court did acknowledge the company’s debts and a loan repayment default. In January 2023 Mauritius-based Barak Asset Recovery, another related creditor, was approved by the competition regulator to buy a majority stake in Savannah Cement. The current state of that new production line is unknown.

As the two stories above show, it is not just National Cement that is trying to move towards increased clinker production in Kenya. The whole situation is reminiscent of the time before Nigeria declared itself self-sufficient in cement in the early 2010s. Local producers became prominent and the market battle between producers and importers became public. Kenya’s range of different cement companies seem to be more diverse than Nigeria’s were, but a similar type of national interest argument may be rolled out by one side. The other parallel to note with Nigeria is that Dangote Cement is said to have attempted to buy National Cement previously and has also been trying to build its own plant in the country since the mid-2010s. Kenya’s demographics and location make it a prime place for this kind of producer-importer tussle. Let’s wait and see how much the situation has changed when the new plants open over the next six months.

Spain: Holcim Spain has appointed Lucas García and Raúl Lannegrand respectively as the managers of the Sagunto and Carboneras cement plants. García succeeds José Luis Coleto, who is moving to a human resources position.

García has worked for Holcim Spain for over 25 years. He has been the manager of the Jerez de la Frontera plant since 2014. Prior to this he held maintenance and production roles. He holds electrical engineering qualifications from the Technical University of Cartagena and the Polytechnic University of Cartagena,

Lannegrand was previously operations manager of Geocycle, Holcim's industrial waste management subsidiary. He has a degree in chemistry from the Autonomous University of Madrid and a Master's degree in Research in Inorganic Chemistry, Lannegrand has knowledge in the field of construction materials research from three years spent at the Institute of Construction Sciences Eduardo Torroja (CSIC).

Mozambique: Dugongo Cimentos plans to build a US$192m, 6000t/day cement plant at Nacala-Porto in Nampula Province. The Macao News has reported that the producer expects the plant to create 600 new jobs locally.

Dugongo Cimentos previously inaugurated its 2500t/day Matutuine cement and clinker plant in Maputo Province following a total investment of US$330m in 2021. The company is jointly owned by state-owned SPI Gestão e Investimentos and China-based West International Holding.

Cyprus: Vassiliko Cement has secured environmental clearance to build a new alternative fuel (AF) store at its Vassiliko cement plant in Nicosia. Philenews has reported that the facility will replace the site’s former AF store, which burned down in a fire started by a mobile shredder in June 2022.

India: Adani Group is planning to build two new cement plants in Andhra Pradesh with a combined production capacity of 10Mt/yr. Karan Adani, the son of the group’s founder Gautam Adani, made the announcement, among a slate of new investments being developed for the state, according to Business Today. At present the group does not have any cement production plants in Andhra Pradesh, although it does operate two ports at Krishnapatnam and Gangavaram respectively. The other projects include renewable power units with a capacity of 15,000MW and data centres.

Senegal: The International Finance Corporation (ICF) has arranged a Euro242m finance package for SOCOCIM Industries to build a new production line at its Rufisque cement plant in Dakar Region. Euro214m of the loans will be used to decarbonise cement production at the site, including a contribution towards a larger Euro260m upgrade project. The new planned production line will have an alternative fuels substitution rate of 70%, increased energy efficiency and will reduce the plant’s CO₂ emissions.

The finance package organised by the IFC comprises a Euro120m loan from the IFC's own account and Euro122m equivalent in local currency parallel loans from Société Générale Sénégal, CBAO Groupe Attijariwafa Bank, Banque Internationale Pour Le Commerce et l'Industrie du Sénégal, and Ecobank Sénégal. Société Générale Sénégal has been appointed as the administrative agent to manage the local currency financing with the other lenders.

SOCOCIM is a subsidiary of France-based Vicat. Fives revealed in early 2022 that it would supply a 6500t/day kiln line for the Rufisque plant.

US: Alamo Cement has completed a new solar power unit that supports its integrated cement plant in San Antonio, Texas. The unit has a capacity of 17,800MWhr and is situated on an 18 hectare site. It is expected to generate up to 15% of the plant’s annual power consumption and reduce electricity costs.