Displaying items by tag: Plant

Vietnam: New cement lines will raise Vietnamese cement production capacity by 4% year-on-year in 2023 to over 120Mt/yr. Vietnam News Summary has reported that upcoming new capacity scheduled to commence operations during the year include a 4.5Mt/yr line at a Xuan Tanh Cement plant and a 2.5Mt/yr line at a Long Son Cement plant.

Vietnamese cement demand was 65Mt in 2022. Several producers suspended cement lines during the second half of that year due to high costs and unfavourable market conditions.

Canada: The Mohawk Council of Kanesatake has written to the Ministry of the Environment and Climate Change asking for more consultation over plans for Colacem to build a new cement plant at L'Orignal, Ontario. The council also urged the government to reconsider the plan altogether. The Review newspaper has reported that the government previously rejected a request from the Kanesatake community that it consult the Impact Assessment Authority of Canada over the planned project. The plant is to be situated on the Ottawa River, opposite the area of Quebec in which the Kanesatake community's lands lie.

Adani Cement’s dispute with truck driver unions in Himachal Pradesh is about to enter its fifth week. The standoff began on 15 December 2022 when the company closed its integrated plants at Darlaghat and Barmana in response to union freight rates. A third unit, a grinding plant at Nalagarh, reportedly continued to operate for a few days longer with raw materials supplied from neighbouring Punjab and Rajasthan, until the transport companies shut down its supply.

Adani Group took over the plants from Ambuja Cement and ACC following its acquisition of Holcim’s India-based businesses in September 2022. The new business seemed to be running smoothly as new officials were appointed and an alternative fuels subsidiary, Geoclean, was created. Then Adani Cement closed its two plants in Himachal Pradesh. In a statement the group said, “Our plants at Gagal (Barmana) and Darlaghat have been incurring losses for quite some time now with no signs of improvement due to stiff resistance from transportation unions ignoring the larger cause of employment generation and contribution to the state’s revenue.” The group added that it had requested the truckers reduce the freight rate to around US$0.07/t/km from US$0.14/t/km, with the lower rate previously recommended by a committee from the state’s transport department.

Himachal Pradesh held state elections in mid-November 2022 with the Indian National Congress (INC) party taking control of the state government from the Bharatiya Janata Party (BJP). The results of the poll were revealed about a week before the cement plants closed and the new administration has suffered a bumpy start to its tenure. At first the state government issued a show cause notice to the cement producer requesting that it explain the closures or else risk ‘appropriate administrative action.' Several rounds of talks followed to no avail. Most recently, a government subcommittee has been set up that will bring together representatives of Adani Cement and the truck unions to try and agree on new freight rates.

In production terms the closure of the Darlaghat and Barmana cement plants is a big deal in the state, given that they have a combined cement production capacity of 6Mt/yr from the region’s total integrated capacity of 10.5Mt/yr. Data is limited on the direct effects of the standoff on the cement and construction market so far. However, competitor UltraTech Cement may be benefiting as it was swiftly awarded the supply contract for government projects. Local press reports have also noted that some of the unions have been stopping cement trucks from entering the state.

What is clearer is the human side to the dispute. Around 1000 staff are employed both directly and indirectly at the Barmana plant and others have jobs at Darlaghat and Nalagarh. Adani Group has relocated at least 140 staff from both sites during the closures. In addition over 7000 drivers were supporting both plants. Even more people have jobs connected to the plants, their supply chains and markets.

The argument between Adani Cement and the truck driver unions in Himachal Pradesh needs to be resolved soon for the good of everybody. Rising fuel costs are the driver of this situation, although it would be interesting to know why the other cement producers in the state haven’t similarly reacted against high freight rates in the same way. India isn’t the only country where the cement sector has been affected by driver union activity. South Korea endured a series of driver strikes in the autumn of 2022 that disrupted the cement sector. Eventually the government enacted laws to restrict strikes that might cause disruption to key areas such as cement production. The International Monetary Fund (IMF) forecasts that global inflation rates will stabilise in 2023 after a sharp rise in 2022. Growth rates are also predicted to slow. As societies and companies adjust to this it seems likely that there will be more clashes between companies, unions and other organisations as everybody tries to absorb higher costs.

US: CRH-subsidiary Ash Grove Cement has appointed Fernando Valencia as Vice President of Manufacturing – Central Ashgrove. He previously worked as a plant manager at LafargeHolcim’s Ste Genevieve plant in Missouri and the Portland Plant at Florence in Colorado. Prior to this he was the plant manager of Holcim US’ Hagerstown Plant in Maryland and also worked as a commissioning manager. Valencia holds a degree in mechanical engineering from the Anahuac University Network and a master’s degree in business administration from the University of Missouri - St Louis.

Jordan: Lafarge Jordan has appointed Ayman Al-Leimoon as the manager of its Rashadiyah cement plant. He has worked for Lafarge Jordan for over 20 years. He started in mechanical engineering and maintenance roles before moving in to project management. Most recently he was the plant and manager at the Fuhais cement plant. He holds a bachelors degree in mechanical engineering.

Kuwait: ACICO Group has appointed Vassilis Mavridis as its Group Chief Operating Officer for Factories. He previously worked for Sibline as its Chief Operating Officer in Lebanon. Prior to this he worked for Titan Cement in Greece for around 18 years, eventually becoming the plant manager of the Thessaloniki Plant from 2003 to 20211 (2021 or 2011?). Mavridis holds a master’s degree in mechanical engineering from the Aristotle University of Thessaloniki and qualifications from Cranfield University in the UK and the Harvard Business School.

Spain: Votorantim España plans to invest Euro15m in an upgrade to improve the efficiency of its subsidiary Cementos Cosmos' Toral de los Vados cement plant in Léon. The project will reduce the plant's power consumption by 7%, while increasing its clinker production by 11% to 3100t/day. Cementos Cosmos expects to commission the newly upgraded plant before the end of 2023. ALIMKC News has reported that the local authority has altered the plant's environmental authorisation accordingly.

Saudi Arabia: Southern Province Cement expects to sign a contract for construction of a planned 10,000t/day new line at its Jazan cement plant in early 2023. Mist News has reported that the company commenced tendering for technical and financial offers for the project in May 2022.

When commissioned, Southern Province Cement plans for the new line to replace the plant’s older existing lines.

Cuba: Corporación Cementos Cubanos’ has resumed production once more at its Siguaney integrated cement plant in Sancti Spíritus Province. The plant was closed for the last seven months of 2022 due to technical issues. Escambray News has reported that plant manager Gonzalo Reina Aguilar said that imported refractory bricks proved crucial to the successful repair operation. Reina Aguilar also noted a ‘better energy situation’ in the country, ensuring the plant of its ‘necessary allocations’ in future.

Corporación Cementos Cubanos hopes that the return of the Siguaney plant to regular operations will help to ease a shortage of cement in Sancti Spíritus and neighbouring Ciego de Ávila.

Madagascar: Cementis Océan Indien has launched a US$120m upgrade project to its integrated Ibity cement plant. The project is intended to increase the unit’s production capacity to 1Mt/yr from just under 0.2Mt/yr at present. A memorandum of understanding was signed by Cementis and the Ministry of Industrialisation, Commerce and Consumer Affairs in early December 2022. Completion of the project is scheduled for 2025.

Cementis agreed to buy Holcim’s businesses in Madagascar, Reunion, Comoros, Mauritius and Mayotte in late 2021.