Displaying items by tag: UAE
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.
Arkan closes Emirates Cement plant
21 March 2017UAE: Arkan has closed its Emirates Cement plant in Al Ain blaming increasing gas and electricity costs. The building materials company temporarily closed the plant in late 2016 but this has now become permanent, according to the National newspaper. Production will move to its newer Al Ain Cement plant that is now running at almost full production capacity. The decision to close the older plant is expected save the company US$12m/yr. The Emirates Cement plant was one of the oldest cement plants in the country with operation since the 1970s.
Gulf Cement receives oil well cement certification
17 February 2017UAE: Gulf Cement has received certification from the American Petroleum Institute to produce oil well cement. Its sales revenue fell by 8% year-on-year to US$153m in 2016 from US$167m in 2015 and its profit fell by 30% to US$13.6m from US$19.4m, according to Mubasher. The cement producer operates a plant in Ras Al Khaimah.
UAE: The Environment Protection and Development Authority (EPDA) of Ras Al Khaimah is investigating unexpected emissions from a cement plant in Khor Khuweir. Resident had reported high levels of dust from the site, according to the Khaleej Times. An initial inspection by the EPDA has blamed the emissions on a blocked filter. It has also ordered the company that runs the plant to conduct an internal investigation and submit a detailed report on the incidents.
Previously the Ministry of Climate Change and Environment had ordered the one-month closure of a cement plant in the same area for breaking emissions rules. The EPDA has since installed surveillance cameras at 20 quarries and six cement units in the emirate.
UAE: Union Cement’s waste heat recovery project has been recognised by the Dubai Carbon Centre of Excellence (DCCE) for reducing CO2 emissions in Dubai in 2016. Local projects under the emirate’s Carbon Abatement Strategy achieved an emissions reduction of 419,500t of CO2 in 2016 saving nearly US$1.4m, according to comments made by DCCE to the Gulf Today newspaper. Other projects that contributed to the saving included the Dubai 13MW Photovoltaic Plant and Dewa Energy Efficient Chillers. The DCCE promotes Dubai’s transition to a low-CO2 green economy and is responsible for monitoring the levels of CO2 emissions in the Emirate.
Gulf Cement Company profit falls 12.7%
15 August 2016UAE: Gulf Cement Company's profit fell by 12.7% year-on-year to US$3.65m in the second quarter of 2016, from US$4.27m in the first quarter of 2015. The decrease was attributed to the negative impact of investments in the first half of 2016.
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.