Displaying items by tag: Project

Philippines: DMCI Holdings has once again hinted that it is looking to enter the cement sector, with a potential US$340m investment to make use of low-grade coal and vast limestone reserves in Antique's Semirara Island. DMCI chair and president Isidro Consunji said that the island, where DMCI’s Semirara Mining and Power Corporation already mines coal, has around 1Bnt of limestone. He hinted at a capacity of around 5000t/day, saying, “You only need two 2Mt/yr, so the limestone can last for 500 years if we don't expand.” Consunji added that the cement plant would be capable of using lower grade coal that DMCI cannot use or sell for other purposes. 

The company previously made a similar announcement of intent in December 2016.

Philippines: Holcim Philippines has said its production capacity is expected to reach 10Mt/yr by the end of the first half of 2017, with company COO Sapna Sood stating that this would be achieved by ‘debottlenecking’ existing facilities following a US$40m project that started in 2015.

“We have a project where we are looking at safety and debottlenecking that is near completion,” said Sood. “When we look at the country, the infrastructure that is coming in and the commitment that we are making to infrastructure, it is pretty exciting for the country and the industry.”Sood added that, while the company had no immediate plans to build a new cement plant, Holcim Philippines planned to offer various solutions to help in the implementation of various infrastructure projects.

The total demand for cement in the Philippines reached 26.0Mt in 2016, up from 24.4Mt in 2015, although the final quarter of 2016 and first quarter of 2017 have been subdued.

Holcim Philippines operates four cement plants in La Union, Bulacan, Misamis Oriental and Davao.

US: China's Sinoma TCDRI and Amec Foster Wheeler are forming a joint venture to sell turnkey installations for the cement industry in the US. The two engineering companies revealed their relationship in the sector at the 2017 IEEE-PCA Cement Conference taking place in Calgary, Canada. The companies are negotiating their first US tenders and hope to make an announcement later in 2017. Sinoma is one of the largest suppliers of equipment for cement plants in the world but it has yet to build a plant in the United States.

South Africa: PPC’s sales volumes have risen by 4% in South Africa and by 9% in Zimbabwe, Rwanda and Botswana collectively in the first nine months of 2016. The cement producer reported in a trading statement that its sales volumes in South Africa had risen overall but that its prices had fallen. It is planning price increases in selected regions in February 2017 in selected regions.

In Zimbabwe, the company saw a boost in cement sales following the commissioning of a mill in Msasa, Harare although it has faced liquidity challenges that made importing raw materials difficult. In Rwanda it has continued to ramp-up production and in Botswana sales have risen in the last quarter of 2016 due to sales promotions.

The cement producer also reported that the cement plant it is building in the Democratic Republic of the Congo was 95% complete in January 2017. Hot commissioning is due to start at the site in February 2017 and operational cement production anticipated to start in the second quarter of 2017. Operational cement production is also expected to start in the second quarter of 2017 at its project in Ethiopia. Finally, the company’s Slurry SK9 new kiln line in South Africa was reported as being 54% complete. Commissioning and ramp-up for the site is scheduled for the first half of 2018.

South Africa: PPC has reported update on projects in the Democratic Republic of Congo (DRC) and Ethiopia. In the DRC it said that engineering, procurement, and construction (EPC) contract work from Sinoma is complete and overall the cement plant it is building is 90% complete. Power infrastructure is being built at present and hot commissioning at the site will start once this is in place. Sales of cement are scheduled to start in February 2017.

In Ethiopia the cement producer has planned to commission its 1.4Mt/yr Habesha plant in the second quarter of 2017. Plant construction is reported as ‘progressing well’ with overall project progress above 80%, civil construction 94% complete, mechanical erection at 66% and 95% of equipment manufactured and delivered to site. The project has a budget of US$180m.

Nepal: Arghakhanchi Cement has obtained a consortium loan pledge to finance the expansion of its cement plant from 1200t/day (0.4Mt/yr) to 3000t/day (1.0Mt/yr). The company expects to spend US$38.6m, including US$27m in consortium financing led by Nabil Bank. Other banks involved include Nepal Bank, NIC Asia Bank, Global IME Bank, Prime Bank and Century Bank.

The company's promoters, the Siddhartha Group, Murarka Organisation, Kedia Organisation and India's Uma Cement International, will invest US$11.6m in the expansion project.

When it is completed by the close of 2017 Arghakhanchi Cement will be the largest cement factory in Nepal. "If we don't increase our capacity and achieve economy of scale, we will vanish once big plants with foreign investment start producing cement," said Rajesh Agrawal, Managing Director.

Nigeria’s Dangote Cement, China’s Hongshi Cement and Huaxin Cement and India’s Reliance Cement have all received approval to start operations in Nepal. Their combined foreign direct investment amounts to US$1.45bn and their proposed output stands at 22,000t/day (7Mt/yr).

Kenya: The East African Portland Cement Company (EAPCC) is waiting for cabinet approval to sell US$98.8m worth of land as part of efforts to return to profitability.

The Nairobi bourse listed firm, through the Ministry of Trade, has prepared a brief for Cabinet approval to sell part of 13,000 acres of land it owns in Athi River.

Proceeds from the sale will be used to retire a US$37.5m debt and partly fund a revamp of its ageing plant, which requires nearly US$400m of investment to be brought to a level where the EAPCC can compete well with nimble rivals like Savanna Cement.

UAE: India's JK Cement has revealed that its plant in Fujairah, UAE is due to reach full production capacity by 2017. At full capacity the plant will be able to produce 0.6Mt/yr of cement.

The plant is unusual in that it can produce both grey and white cement from the same kiln. The expansion of the UAE plant's production capacity is in line with increased demand for white cement in the Middle East, according to JK Cement’s Ajay Mathur.

Nigeria: Dangote Cement has announced that it will build new cement plants in Nigeria, in Okpella in the northern part of Edo State and Itori in Ogun State. Dangote said that the new plants are expected to add 9Mt/yr to the company’s current output of 29.25Mt/yr, raising it to a total 38.25Mt/yr.

The Group’s Managing Director Edwin Devakumar, made the announcement in Lagos. He explained that the Okpella plant will have one 3Mt/yr cement line and that the Itori plant will deliver 6Mt/yr from two production lines. Both plants are expected to come on stream within the next three years.

Devakumar said the company’s expansion drive was targeted at expanding its nationwide presence and reducing the transportation cost component of its operations. He added that the new investments will also lower the cost of production, bring about a future reduction in the price of cement and generate employment opportunities in the host communities.

Group Managing Director for Cement Onne van der Weijde said the demand for cement was still high considering the population growth in Nigeria. He observed that Nigeria’s consumption of cement, at 100kg/capita was relatively low by international standards, indicating growth potential.

Van der Weijde added that Dangote Cement can supply the entire western and central Africa region. Dangote Cement currently exports cement to Niger, Ghana and Togo, with plans to also move into the Ivory Coast.

Tajikistan: The government of Tajikistan is looking for investors for construction of a 1Mt/yr cement plant near the Tuyun-Tao limestone deposit in the Shakhritus district in the south of the country, according to Avesta news agency.

The project has been included in the government's investment portfolio for implementation through direct investments, according to the Tajik State Committee of Investment and State Property Management. The project requires US$350m of investment. Some Russian, Iranian and Chinese companies earlier showed interest in the deposit. Indeed, in 2012, Chinese building materials corporation CNBM prepared a feasibility study for the project, but the project did not reach implementation phase due to its high cost and the absence of infrastructure.