Displaying items by tag: UAE
Fujairah Cement earnings down
13 February 2018UAE: Fujairah Cement Industries Co (FCIC) has reported a decline of 9% in its profits for the fourth quarter of 2017 compared to the same period a year ago. Earnings decreased to about US$2.7m in the fourth quarter of 2017 from US$3.0m in the fourth quarter of 2016.
During the 2017 fiscal year, the cement producer posted a drop of 35% in its profit to US$10.1m compared to US$15.4m in 2015. This was in part due to a 7% decrease in revenue and higher general and administrative expenses, which rose by 29% to US$6.4m.
National Cement reports decline in profits
12 February 2018UAE: National Cement Company (NCC) has reported a decline in its profit to US$14.59m in the full year 2017 from US$24.24m in 2016. Revenues also fell to US$55.77m from US$64.11m.
Shree Cement expands into UAE with purchase of Union Cement
12 January 2018UAE: India’s Shree Cement has purchased Union Cement Company (UCC) based in the UAE for US$305m. Its board approved the acquisition of at least a 92.8% share in the company, according to the Press Trust of India. The transaction is expected to be completed by September 2018. Following the deal Shree Cement’s cement production capacity will rise to 33Mt/yr from 29.3Mt/yr. The acquisition is the company’s first outside of India.
UCC was established in 1972. It operates a cement plant Ras Al- Khaimah with a clinker production capacity of 3.3Mt/yr and a cement production capacity of 4Mt/yr.
Deadline extended for sale of Binani Cement
05 January 2018India: The deadline for bidding for Binani Cement has been extended until 15 January 2018 as the cement company takes potential buyers on a tour of its grinding plant in Dubai. The Rajasthan-based cement producer is being sold following bankruptcy proceedings, according to the Daily News & Analysis newspaper. The family-owned company with cement plants in Indian, China and the UAE has attracted a high level of interest from both international and local cement companies.
Thermax Group wins contract to build power plant for cement plant in UAE
14 September 2017UAE: India’s Thermax Group has won a contract worth US$43m to build a captive power plant for a cement company in the UAE. The scope of supply for the unnamed customer includes design, engineering, manufacturing, construction and commissioning of the solid fuel based power plant with two circulating fluidised bed combustion (CFBC) boilers. It will also supply emission control equipment and a water treatment plant for the project, which will be commissioned by mid-2019. The order is Thermax’s first in the Gulf Cooperation Council region.
Qatar: Mohamed Ali al-Sulaity, the general manager of the Qatar National Cement Company, says that a blockade of the country by neighbouring states has not effected its cement production. Al-Sulaity said that the cement producer has secured supplies of raw materials and is importing gypsum and iron oxide from Oman, according to the Al Sharq newspaper. He added that bags are being imported from Kuwait.
The company says that it has a surplus of cement production and is able to meet the country’s demand. It plans to operate its 5000t/day kiln number 5 in September 2017 that will increase its clinker production capacity to 19,000t/day and its cement capacity to 21,000t/day.
Several Middle Eastern countries – including Saudi Arabia, the UAE, Bahrain and Egypt – cut diplomatic links and implemented trade and travel embargos with Qatar in June 2017 over alleged links to terrorist groups and links to Iran.
UAE: Salem Al Shehi, a member of the Federal National Council, has called for stricter measures to mitigate emissions from cement plants and other industrial production units. The representative from Ras Al Khaimah has suggested that these sites be fitted with filters and be constantly monitored, according to the Gulf News newspaper. He cited the concerns of residents living close to industrial sites in Ras Al Khaimah, Al Ghail, Naseem, Suhaila and Al Manama.
Local legislation requires that dust-control techniques must be introduced in all quarries and mines, and owners of these sites are obliged to install air-monitoring stations linked to a control centre based at the RAK Environment Protection Authority’s headquarters. Despite this the Ministry of Climate Change and Environment issued pollution warnings to five cement plants between 2014 and the end of May 2017. 55 quarries were also temporarily shut down for breaching health and safety regulations in the same period.
Bahrain stops cement imports from Saudi Arabia
10 April 2017Bahrain: Cement companies in Bahrain have stopped importing cement from Saudi Arabia following a change in export laws that has increased the price. United Cement Company chief executive Faisal Shehab said that the four cement companies in Bahrain used to import a total of 25,000t/week, according to the Gulf Daily News. In March 2017 the law changed in Saudi Arabia allowing producers to export cement. However, the law has specified that companies should repay government subsidies and this has increased the price of exports to Bahrain by nearly 50%. The imported cement represents about half of Bahrain requirements. Previously, Bahrain imported cement from Saudi Arabia under a special arrangement set up in 2009. Bahrain producers are now seeking alternative imports from the UAE.
Update on the UAE
22 March 2017Given the low oil price the economies of the Gulf Cooperation Countries (GCC) (including the UAE) have taken a knock in recent years. So, the news this week that Arkan has closed its Emirates Cement plant in Al Ain for good may not be too surprising. The building materials producer opened its whopping 5.7Mt/yr Al Ain Cement plant in late 2014 and, now that rising energy costs have become too much of a burden it appears to have shut down the older plant for good and moved the production across. Now it says the new unit is operating at nearly full capacity.
Arkan’s cement business saw its revenue fall by 9% year-on-year to US$220m in 2016 from US$239m in 2015. Net profit fell more sharply, by 25% to US$20.6m. The chairman cited a ‘harsh current market cycle’ as the cause of his company’s woes and also blamed a heavy rainstorm in March 2016. The storm caused an interruption in production due to a damaged conveyor belt at its Al Ain Cement plant that stalled the production on half of its raw material handling line. The producer turbocharged its sales and profits in 2014 with the opening of the new plant and managing to continue the growth in 2015 but it slowed down in 2016. Arkan has also been in the alternative fuels news this week with the announcement of plans to test burning spent pot lining. This certainly hints at a producer trying to minimise its fuel spend.
Other local producers have had similar experiences. Fujairah Cement reported that its revenue fell by 2.5% to US$162m from US$167m although it did manage to grow its profit by 12% to US$15.4m. Earlier in the year it attributed the rise in profits to higher prices and cost control on the production side. The producer, a subsidiary of India’s JK Cement, operates a dual Ordinary Portland Cement and White Cement plant. Union Cement’s revenue fell by 10% to US$153m from US$170m and its profit fell by 19% to US$22.9m from US$28.2m.
A report by Deloitte on the construction market in Dubai published in early 2016 showed that the UAE became a net exporter of cement in 2010. Local producers exported 3Mt of cement in 2012 and this was aided by high energy cost subsidies. Prior to this the nation had been importing large amounts of cement and building up its local production capacity to meet its voracious real estate market. However, this previously caused problems in 2007 when the real estate market crashed. More recently the Dubai Chamber reported that the potential value of construction projects awarded in 2016 was US$36.5bn. Overall in the GCC the value of contracts fell by 17% year-on-year. Locally, the Dubai construction sector’s real added value, or its contribution to the national gross domestic product, fell in 2012 before rising slowly subsequently but its growth rate picked up in 2013 and then started to slow down.
Looking at the broader economy the World Bank reckoned in the autumn of 2016 that growth in the UAE was predicted to continue slowing in 2016 before picking up in 2018 due to rising oil prices. In the midst of uncertain times a report by the Dubai Chamber called for cement producers to improve their competitiveness, save on production costs, use more alternative fuels and push exports. To this end Arkan’s trial with spent pot lining and today’s news of a technology start-up promoting a fly ash and slag cement for 3D printing suggest a cement and construction industry marking time before growth returns.
Renca develops fly ash and slag cement for 3D printing
22 March 2017UAE: Renca, a technology start-up working with Dubai’s Future Accelerators programme, has developed a geopolymer cement from fly ash and ground granulated blast slag that can be used in 3D printing, according the National newspaper. The product’s advantage over Ordinary Portland Cement when used in additive manufacturing is that it can be used without additives making it cheaper.
The start-up is a joint venture between Andrey Dudnikov, a Russian businessmen, and Alex Reggiani, an Italian geologist and mineralogist. The company is working with the Dubai Municipality to develop its material for use in 3D printing projects in Dubai. The company is also looking to set up a plant for its product in the city.