Displaying items by tag: Slag cement

UK/Ireland: Ecocem is to open a new terminal at Runcorn to increase its exports of slag cement to the UK. A second terminal in the south east of the UK will be opened later in 2016, according to the Irish Times. It has invested Euro5m towards building both terminals. The ground granulated blastfurnace slag (GGBS) producer is targeting the UK market due to demand for cement coupled with changes in the coal and steel industries.

The company says it has received orders for 200,000t of slag cement in its first year and that it is not taking any further orders. Opening its second terminal in the UK is anticipated to give it access to 80% of the UK market. Ecocem produces slag cement at three grinding plants in Dublin in Ireland, Moerdijk in the Netherlands and at Fos in France.

India: JSW Cement has ordered eight 90t/hr roller press slag grinding units from KHD Humboldt Wedag India Private Ltd (India) and KHD Humboldt Wedag GmbH (Germany) for its plants in India.

UK: Mineral resources company Francis Flower has announced the acquisition of the Scunthorpe ground granulated blast furnace slag (GGBS) plant from Hanson Cement.

The business is capable of producing more than 500,000t/yr of GGBS and supplies customers in the Midlands and north of England. GGBS complements Francis Flower's existing range of high quality powdered minerals, which originate as by-products from various industries. This reduces the need for mineral extraction and landfill, delivering sustainable environmental solutions for its customers. The acquisition reflects both Francis Flower's commitment to developing its range of products and services in this sector and the credibility it has for making the most of mineral resources.

"We are absolutely delighted and very excited to announce this new acquisition. GGBS is an excellent fit to our existing product range and will help further our longstanding relationships in this sector," said Adrian Willmott, Chairman and CEO of Francis Flower. "We have a proven track record of making the most of mineral resources, reducing the need for mineral extraction as well as landfill and delivering sustainable solutions for our customers. We are very much looking forward to working with the team in Scunthorpe and developing the opportunities in the GGBS market as the UK construction sector continues to grow."

India: According to The Economic Times, private equity company KKR will team up with diversified trading and commodities group SIMEC to invest US$142m to take over the cement business of debt-laden ABG Group through a complex, multi-tiered financial transaction. The funding will help ABG's founder promoter Rishi Agarwal to complete the 'last mile' of his much-delayed cement plant project in Gujarat.

The first leg of the 'special situations' transaction, which will be concluded in the coming weeks, will see KKR fund SIMEC to gain a 51% controlling stake in ABG Cements for US$82.6m. This will be followed by an additional US$60.6m of funding collateralised by Agarwal's unencumbered shares in the company. The money will be used to finish the project, fund working capital and pay back overdue creditors.

ABG Cement has been planning a 5.8Mt/yr cement plant in Gujarat since 2010. However, due to significant cost and time overrun, only a 3.3Mt/yr clinker plant at Kutch near the limestone reserves was completed. Agarwal ran out of money to complete the grinding unit at Surat. The plant is ultimately expected to produce slag cements with blast furnace slag coming from Essar Steel. It will be the only slag cement plant in western India.

SIMEC has already made a part payment to show its commitment to the deal. KKR, too, has signed a term sheet with ABG's management. A detailed due diligence process is currently ongoing. In 2014, SIMEC had agreed to buy into ABG's cement business, but the deal was not concluded. Now with KKR's funding, it is expected to close soon.

US: According to Imperial Valley News, following a public comment period, the Federal Trade Commission (FTC) has approved a final order settling charges that the merger of Lafarge and Holcim would likely harm competition in 12 markets for Portland cement and two markets for slag cement.

Under the order, first announced in May 2015, the two companies are required to divest cement plants, quarries, terminals and other assets in the 12 states of Illinois, Iowa, Louisiana, Massachusetts, Michigan, Minnesota, Montana, New Jersey, New York, Ohio, Tennessee, Wisconsin, as well as several locations in Canada. The commission vote that approved the final order was 4-1, with commissioner Joshua D Wright voting no.

India: JSW plans to expand its cement production capacity to 30Mt/yr from 5Mt/yr by setting up grinding units closer to its steel plants. As part of its diversification, it is also considering the production of aluminium, if the government allocates bauxite mines to it.

Seshagiri Rao, joint managing director of JSW Steel, said that the company's presence in the cement business is small compared with other companies with 60 – 70Mt/yr of production capacity. JSW's plan is to become a significant player in the sector, with 30Mt/yr of production capacity by 2025, he added.

For instance, a grinding unit installed closer to the Dolvi steel plant in Maharashtra State could source clinker from Gujarat State, mix it with slag available from the plant and tap the vibrant western market. "Alternatively, we could also set up grinding units closer to the cement market and take our slag there," said Rao. "We would source clinker from the closest available location so that we remain competitive."

The Tamil Nadu State Government recently notified a scheme whereby cement companies are asked to quote their factory gate price. Contractors were given the price list to source cement for their projects. JSW Cement has also placed its bids under the scheme. "I believe that other State Governments will also emulate the Tamil Nadu Government model to make cement available for their projects at a competitive price without any subsidy," said Rao.

India: JSW Cement Ltd plans to switch completely to the production of Portland slag cement (PSC), according to its CEO, Anil Kumar Pillai. According to Pillai, slag cement is ideally suited to both infrastructure projects and housing construction.

"We have 6Mt/yr of cement production capacity and will be producing only this variety of cement," said Pillai. The price of PSC is almost the same as the price of ordinary Portland cement. JSW Cement expects a massive increase in demand for slag cement in view of the formation of the new Central Indian government and new governments in some States, with increased focus on infrastructural projects.

"The Andhra Pradesh government has issued an order mandating the use of only Portland slag cement in all government constructions,'' said Pillai. He added that Portland slag cement is very popular outside India, accounting for more than 90% of total cement production in some countries. However, in India, out of total 360Mt/yr cement produced, it accounts for just 7%.