Displaying items by tag: Türkiye

Algeria/Iraq: Dal Machinery & Design (DMD), part of Turkey’s Dal Engineering Group, has been awarded a contract to supply a kiln shell to LafargeHolcim Algeria’s Oggaz cement plant. The shell has an internal diameter of 5mm. The shell will be manufactured from a single part, with one single welding in the axial direction. It is expected to be delivered by September 2019. No value for the order has been disclosed.

Other recent orders for DMD include the supply of two kiln shells for LafargeHolcim’s Bazian cement plant at Sulaimani in the Kurdistan region of Iraq. The kiln shells were manufactured with a diameter of 5.2m. Delivery was made at the beginning of March 2019. DMD’s other kiln shell clients in Iraq included the Gasin cement plant in 2018. It also supplied a mill tunnion to LafargeHolcim’s Kerbala cement plant.

France/Serbia: Turkey’s Fons Technology International, part of Dal Engineering Group, has released information about recent projects for CRH. In France a replacement clinker cooler and roller crusher was commissioned at the Lumbres plant in February 2019. The project started in October 2018 and the upgrade has a capacity of 1500t/day. In Serbia a Fons Delta clinker cooler and three roller crushers were commissioned at Popvac plant in January 2019. This project started in September 2018 and it has a capacity of 2200t/day.

Turkey: Aslan Cement, part of Oyak Cement Group, has placed an order with Germany’s Aumund Fördertechnik for its Darıca plant in Kocaeli Province. The order is part of a project to increase the plant’s clinker production capacity to 6600t/day. The machines are due to be dispatched in September 2019 and commissioning is planned for the beginning of 2020. No value for the order has been disclosed.

The order includes a 225t/hr bucket elevator with a BWZ-L (low capacity) central chain type and a centre distance of 27m to feed the raw meal mill as well as three different models of BWG belt bucket elevators with capacities up to 500t/hr and centre distances up to 132m. The belt bucket elevators will also be used for raw meal silo feed as well as to transport raw meal to the dosing hopper and the heat exchanger. The order also includes three KZB type pan conveyors, each with capacities of 350t/hr and centre distances of up to 77.2m to convey clinker from the cooler to the silo, as well as two LOUISE BEW type rotary discharge machines, each with a diameter of 3m and a capacity of 400 t/hr.

Egypt/Qatar/Russia/Turkey: Dal Engineering Group has released information about recent project from its Dal Teknik Makina subsidiary in Russia, Egypt and Qatar. In Russia Dal Teknik Makina is currently converting a production line at Eurocement’s Zhigulovskiye Stroymaterialy plant in Samara to manufacture white cement. The project started in November 2018.

In Egypt Dal Teknik Makina conducted a technical audit for HeidelbergCement’s Helwan Cement plant in February 2019. It was carried out on clinker production line one. In Qatar Dal Teknik Makina was awarded a contract in February 2019 to install a pilot scale plant for a calcium sulfoaluminate clinker production line. Dal’s engineers will evaluate the concept and identify the possible problems with operation, and supply the complete engineering and instrumentation for the whole project.

Peru: UNACEM has ordered a clinker cooler for its Condorcorcha cement plant from Turkey’s Fons Technology International, part of Dal Engineering Group. The cement producer will replace its existing cooler with a new FTI clinker cooler. The FTI cooler is designed so that it can reuse the existing cooler casing and refractory. It has also ordered a three-roller crusher for its 1500t/day clinker production line. Installation is scheduled for September 2019. No value for the order has been disclosed.

France: Vicat’s sales have risen due to its acquisition of Ciplan in Brazil. Its sales rose by 4.7% year-on-year to Euro600m in the first quarter of 2019 from Euro573m in the same period in 2018. However, adjusted for the acquisition, its sales remain stable. The group’s cement sales revenue fell by 1.4% to Euro302m when similarly adjusted. Its concrete and aggregate sales rose by 6.6% to Euro225m.

“The rise in prices across all zones has resulted in stable consolidated sales at constant scope and perimeter, despite strong volume erosions in Turkey as a result of the 2018 lira devaluation and of the consequences of highly adverse weather conditions in California. The integration of Ciplan in Brazil is on track amid conditions that are stabilising after several years of major consumption falls,” said chairman and chief executive officer (CEO) Guy Sidos.

By region sales were strong in France, stable in the rest of Europe and Africa and poor in the Americas, Asia and Turkey. Poor weather in California dragged down sales in the US, competition was reported in India and an economic slowdown was reported in Turkey.

One of the long running trends in the cement industry is that of production overcapacity. Sure enough more than a few news stories this week covered this, as various players reacted to international trade in clinker and cement. The Bangladesh Cement Manufacturers Association wants its government to cut import duties on clinker. Algeria’s shift from an importing cement nation to an exporting one continues.

Armenia and Afghanistan are coping with influxes of cement imports from neighbouring Iran. Pakistan’s cement exporters, who have been losing ground in Afghanistan, are once again lobbying to remove anti-dumping measures in South Africa. The argument between Hard Rock Cement and Arawak Cement in Barbados may have swung Hard Rock Cement’s way as the Caribbean Court of Justice (CCJ) has ruled in favour of lower tariffs for imports. Last week it was reported that the Rwanda Bureau of Standards had blocked cement imports from Uganda on quality requirement grounds.

The summarised version is that all this excess clinker and cement can cause arguments and market distortions as it finds new markets. Typically, the media reports upon the negative side of this, when the representatives of national industries defend their patch and speak out about ‘quality concerns,’ potential job losses and blows to the local economy. However, it isn’t always like this as the Afghan story shows this week. Here, although the Chamber of Commerce and Industries wants to promote locally produced cement, imports are welcome and the relative merits of different sources are discussed. Ditto the situation in Bangladesh where a predominantly grinding-based industry naturally wants to cut its raw material costs.

We’ve covered clinker and cement exports more than a few times, most recently in September 2018 when the jaw-dropping scale of Vietnam’s exports in 2018 started to become clear. Yet as the continued flow of news stores this week makes clear it’s a topic that never grows old.

Graph 1: Top cement exporting countries in 2018. Source: International Trade Centre.

Looking globally raises a number of issues. First, a warning. The data in Graph 1 comes from the International Trade Centre (ITC), a comprehensive source of trade statistics. Most of its figures are in line with data from government bodies and trade associations but its export figure is around a tenth of the estimated export figure for Iran of around 13Mt for its 2018 - 2019 year. Last time this column looked at exports similar issues were noted with a discrepancy between Vietnam’s exports from the ITC compared to government data.

Iran aside, all the usual suspects are present and correct. A point of interest here is that the list is a mixture of countries that make the headlines for their exports, like Vietnam, and those that are quietly just getting on with business. Japan for example exported 10.7Mt in 2018. More telling are the changes in exports from 2017 to 2018. Exports fell in Japan, China and Spain. They rose in Vietnam, Thailand, Indonesia, Pakistan and South Korea.

Looking globally, China is the elephant in the room in this topic given its apparent massive production overcapacity. The industry here is structurally unable to export cement on the scale of other countries but, as its major companies expand internationally, this may change. Despite this China still managed to be the third biggest exporter of cement to the US in 2018 at 2Mt and the fifth biggest in the world. Yet, as the ITC data shows, its exports fell by 30% year-on-year to 9Mt in 2018.

Vietnam, Pakistan and Turkey continue to be some of the key exporting nations with production capacities rising in defiance of domestic realities. Pakistan, for example, is coming off a building boom from the China–Pakistan Economic Corridor infrastructure project and all those plants are now looking for new markets. Vietnam says it is benefitting from industry consolidation in China. Its exports grew by 55% year-on-year rise to 31.6Mt. It shipped 9.8Mt to China in 2018. Its main export markets in 2019 are expected to be the Philippines, Bangladesh, China, Taiwan and Peru. Turkey, meanwhile, struggled with general economic issues in 2018. Its cement exports fell by 6% to 7.5Mt in 2018 according to Turkish Cement Manufacturers Association data. Once again this is at odds with ITC data, which reports nearly twice as many exports.

This touches the tip of the iceberg of a big issue but while production over-capacity continues these kinds of trade arguments will endure. Vietnam, for example, may be enjoying supplying cement in China as that country scales down production. Yet, what will happen to all of those Vietnamese plants once Chinese consumption stabilises?! Similar bear traps lie in wait for the other major exports. Alongside this many of the multinational cement companies are pivoting to concrete production. This may be in recognition of the fact that in a clinker-abundant world profits should be sought elsewhere in the supply chain. A topic for another week.

For an overview of some of these themes and more read Dr Robert McCaffrey’s article ‘The Global Cement Industry in 2050’ in the May 2019 issue of Global Cement Magazine and his forthcoming keynote presentation at the 61st IEEE-IAS/PCA Cement Conference 2019 at St Louis in Missouri, US.

Spain: Turkey’s Çimsa Çimento has purchased Cemex’s white cement business in Spain, including its Buñol plant, for around US$180m. Cemex expects to sign the final agreement in April 2019 and close this divestment during the second half of 2019. The proposed divestment does not include Cemex’s white cement business in Mexico, nor its interest in Lehigh Cement in the US.

“With the purchase of the Buñol white cement plant in Spain, we are upgrading our game in the white cement sector, the highest value-added business in the global cement market. With the integration of the Buñol white cement plant to our production and distribution networks, we will increase our white cement production capacity by 40%, translating into Çimsa becoming the world's largest white cement company,” said Tamer Saka, the president of Sabancı Holding Cement Group and chairman of Çimsa. He added that Çimsa is among Turkey’s leading exporters. In 2018 it generated over 50% of its operational profit from overseas operations.

Once a final agreement is reached the transaction is subject to standard regulatory approval.

There was lots to mull over in the latest Committee for European Construction Equipment (CECE) Annual Economic Report. The headlines were that the construction industry market peaked in 2017 and that the mining industry was still recovering, but maybe slowing, in 2018.

For the construction industry the CECE reported that a growth period from 2008 to 2018 reached a high level of growth of 4.1% in 2017. This fell to 2.8% growth in 2018 and is forecast to drop to 2% growth in 2019. It put this in terms of the sector having a cyclical nature, normally of around eight years. This means it believes a downturn is overdue. Slowing gross domestic product (GDP) growth and tighter financial and monetary conditions are expected to drag on the residential sector. The non-residential side is growing by more than 1.5% in Europe but it has started to following the residential sector. It also noted the ‘very poor’ performance of the infrastructure sector due to government under-investment.

Graph 1: GDP vs Construction Output, year-on-year change (%). Source: Euroconstruct & CECE.

The construction equipment sector saw sales rise by 11% in 2018, bringing it to only 10% below the high recorded in 2007. The CECE reported that the rate of growth for concrete equipment was becoming ‘less dynamic’ after four years of growth. Sales in Europe grew by 17% in 2018 but there was a wide difference between northern and southern countries. France and Germany had 9% and 14% growth respectively but Italy and Spain had 23% and 60% growth respectively. Looking at product groups, truck mixer sales and batching plant sales were particularly strong, with growth rates over 10%. Overall, most countries experienced growth, with the exception of Turkey.

Graph 2: Growth rates in construction equipment sales by product groups in Europe, year-on-year change (%). Source: CECE.

Looking globally, the CECE said that Europe ‘slightly underperformed’ in 2018 as worldwide equipment sales grew by a fifth. It attributed this to the return of emerging markets, led by China and India. Sales in Latin America recovered with a rise of 15% but Brazil, notably, was not part of this trend. North America and Oceania had growth rates of around 20% but the Middle East and Africa saw declining sales. The CECE forecasts global equipment sales growth of 5 – 10% in 2019 subject to there being no trade wars.

Tying into this, the German Mechanical Engineering Industry Association (VDMA) said today that Sebastian Popp, its Deputy Managing Director, described cement plant equipment manufacturers as a ‘drag’ on the rest of the building materials plant sector. His words were from an event that took place earlier in March 2019. Overall incoming order and turnover fell in 2018. He blamed this on a cement market characterised by overcapacity. However, if cement plant engineering was removed from the calculations then the incoming orders of German building material plant manufacturers would have risen by 17% year-on-year and turnover by 16%.

None of this is encouraging for the European cement equipment manufacturers. However, as we said in February 2019 (GCW 390), the market is changing and so too are the suppliers. A period of transition is to be expected. Recent good news from Denmark’s FLSmidth include an order for a new plant in Paraguay and sales figures for its vertical roller mills in 2018. Russia’s Eurocement ordered three mills from Germany’s Gebr. Pfeiffer just last week.

Panama: The Ministry of Commerce and Industries (MICI) is planning to introduce regulations testing cement imports for Hexavalent chromium (chromium VI). Edgar Arias, Director of Standards and Industrial Technology of the MICI, said at a trade forum that the new rules had been agreed, according to La Estrella de Panamá newspaper. At present cement is tested at the discretion of the importer. Under the new regulations cement will be tested before it leaves its country of origin, when it arrives in Panama and for a third time at the point of sale at the discretion of the authorities.

Panama imports 10,000 – 20,000t/month of cement from countries including China, Turkey and Vietnam. Around 20 importers handle the market. Import tax on cement ranges from 10 – 20% depending on the point of origin.