Displaying items by tag: US
Pruftechnik opens new office in California
07 June 2016US: Pruftechnik has opened a new office in San Diego, California. The new location will support the company’s product sales, tech support, training, consultation and machinery services. The opening of the new office follows the commencement of the firm’s North American operations from Philadelphia in March 2016. Pruftechnik specialises in laser alignment systems and it is a provider for the maintenance of rotating equipment.
US: Thermo Fisher Scientific have released a new online elemental analyser that can be used in real time quality control for process optimisation in cement production. The Thermo Scientific CB Omni Fusion analyser allows users to choose either an electrically-driven neutron generator or an isotope, Californium (252Cf), as the analyser’s excitation source. This enables them to continuously measure the elemental composition of the entire raw material stream carried on a conveyor belt.
“Cement manufacturers are under increased pressure to maximise resources and reduce costs,” said Kevin Gordon, global marketing manager for prompt gamma neutron activation analysis for Thermo Fisher Scientific. “We’ve developed the CB Omni Fusion with flexibility in mind. Quality control managers and operators can gather immediate results from raw material analysis to save time, money and energy, and they can customize the instrument to work best for them.”
The product also features a new software interface suite, Omni View, which allows users to configure the analyser to their process requirements. Additional features of the Thermo Scientific CB Omni Fusion analyser include: auto-diagnostic software to track system health and operational conditions; modular design to facilitate installation on existing conveyor trusses; and one to four large volume detectors and variable tunnel heights to accommodate process conditions.
The Thermo Scientific CB Omni Fusion analyser follows other analytics products from Thermo Fisher Scientific including the CB Omni and CB Omni Flex. It can also be used for elemental analysis in the sinter ore, scrap steel and mineral production processes.
US: Summit Materials has appointed Joseph S Cantie as a new director, also serving on the Audit Committee. With the appointment of Cantie, Summit’s board now comprises eight members.
Cantie is the former Executive Vice President and Chief Financial Officer of ZF TRW, a division of ZF Friedrichshafen, a global automotive supplier, a position he held from May 2015 until January 2016. He served in similar roles at TRW Automotive Holdings Corp., which was acquired by ZF Industries in May 2015, since 2003. Prior to that time, Cantie held other executive positions at TRW, which he joined in 1999. From 1996 to 1999, Cantie served in several executive positions with LucasVarity, including serving as Vice President and Controller. Prior to joining LucasVarity, Cantie spent 10 years with KPMG. He is currently a director for TopBuild Corp. where he serves on the Audit, Compensation and Governance Committees, and for Delphi Automotive PLC where he serves on the Audit and Finance Committees.
Cantie is a certified public accountant and holds a Bachelor of Science degree from the State University of New York at Buffalo.
FCT Combustion report burner orders in the US
20 May 2016US: FCT Combustion has announced new orders in the US. The Graymont lime plant in Pleasant Gap, Pennsylvania has ordered two low NOx Gyro-Therm MKII burning systems for coal, natural gas and solid alternative fuels firing. The Lehigh Cement plant in Redding, California has ordered a Turbujet burner for coal, petcoke, natural gas and solid wastes firing. No value for either order was released.
US: Eagle Materials has reported that its revenue rose by 7% year-on-year to US$1.14bn in the financial year that ended on 31 March 2016 from US$1.07bn in the previous period. Its earnings fell by 18% to US$153m from US$187m.
By business sector Eagle’s cement operating earnings rose by 7% to US$515m from US$479m for both its wholly owned and joint ventures. Overall cement sales volumes remained stable at 4.8Mt. It noted that in Texas increased demand for construction grade cement continued to offset much of the impact from lower oil well cement demand.
US first quarter update 2016
18 May 2016Delegates at the IEEE-IAS/PCA Cement Industry Technical Conference in Dallas, Texas this week may have smiles upon their faces if the following data is correct. The US cement industry has rocketed into 2016 with solid sales growth. Multinational cement producer balance sheets are being propped up by the good news and data from the United States Geological Survey (USGS) backs it up.
LafargeHolcim led the pack with an 18.9% bounce in its cement sales volumes to 3.4Mt in the first quarter of 2016. Most of this rise was driven by high demand for building materials in the US supported by a ‘vigorous’ housing market and positive infrastructure spending. HeidelbergCement followed this up with a 13.8% in its cement sales volumes to 2.5Mt in North America. Cemex reported a 8% rise, Buzzi Unicem reported a 16.3% rise, Martin Marietta reported a 13.8% rise and Cementos Argos reported a 47.3% rise.
Graph 1: Portland and blended cement shipments by US Census Bureau region for 2016 to February 2016. Source: USGS
USGS data shows this ‘bounce’ in cement sales shipments at the start of 2016 quite well. Although the publicly released preliminary data only goes as far as February 2016 you can clearly see an up-tick at the start of the year. By comparison shipments in each of the main US census regions fell from January to February 2015 before picking up as the spring started. The main reason for this was the harsh winter in 2015. Overall, cement volumes rose by 11.6% year-on-year for the mainland US in January and February 2016. These were led by Maine, New York and Illinois in the Northeast and Midwest, presumably recovering from the previous winter, before a load of southern states, including Northern Texas and South Carolina, kicked in with growth of above 20%. As an aside it is also worth pointing out the seasonal variation between the Midwest and the West. The Midwest has a more pronounced summer production peak most likely due to the colder winters the region endures.
The reason for that bounce at the start of 2016 is important because it determines whether the US cement party will continue or not. A few of the cement producers in their financial reports mentioned that sales were up due to pent up demand following the harsh winter in 2015. HeidelbergCement gave a much more considered assessment than its rivals. They pointed out that, despite the growth in construction markets, economic growth slowed in the country in the quarter. This fits more in line with the Portland Cement Association’s (PCA) more cautious assessment that the construction industry in the US should be growing but that an uncertain economic outlook is messing with this. It seems that the US cement industry has growth for the moment but that certainty that this will continue is far more elusive. This week’s news that plans have been scrapped to build a third kiln at the Lafarge North America Joppa cement plant just adds to this feeling.
For further information on the US cement industry take a look at the May 2016 issue of Global Cement Magazine.
US: Lafarge North America has scrapped plan to expand its Joppa cement plant in Illinois. One of the two kilns at the plant was shut in 2012. However, the company announced it was restarting this kiln and planning on building a third kiln in 2015, according to the Paducah Sun newspaper. The subsidiary of LafargeHolcim blamed the cancellation on poor market recovery for its products. Production is expected to continue at the cement plant using its existing two kilns. No job losses are anticipated.
US: A worker has died from a fall at the Midlothian Ash Grove Cement plant in Texas on 10 May 2016. The worker, Roderick U Barnes, was a maintenance mechanic at the plant according to the Waxahachie Daily Light newspaper. Barnes had been working on the top of a concrete mixing tower. The Mine Safety and Health Administration and Ash Grove Cement are conducting investigations into the cause of the accident.
FLSmidth and GE to partner on data platform
12 May 2016Denmark/US: FLSmidth and GE (formerly General Electric) have announced a partnership to create digital solutions for increasing productivity in the cement and minerals industries. The new solutions developed on GE's cloud-based Predix platform will use FLSmidth's knowledge of cement and minerals processing along with GE's industrial application of networked physical objects (the internet of things) to increase the productivity of connected equipment units in the cement and mining industry.
FLSmidth will build their solutions on top of the Predix platform with applications for managing process flows. This should allow customers to leverage process data and analytics for monitoring, benchmarking their performance and predicting maintenance of their equipment.
"Cement and mining companies already collect significant volumes of data, but currently, only a fraction of it is used. This will be the first available solution for a full coherent process monitoring to leverage optimisation solutions offered by a full service provider like FLSmidth," said FLSmidth’s head of Global Research & Development Jens Almdal.
Cemex walks the line in the US
11 May 2016Cemex took a major step towards cutting its debts last week when it announced the sale of selected assets in the US for US$400m. Two cement plants in Odessa, Texas and Lyons, Colorado were included in the deal along with three cement terminals and businesses in El Paso, Texas and Las Cruces, New Mexico. Grupo Cementos de Chihuahua (GCC) was announced as the buyer.
Together the two plants being sold hold a cement production capacity of 1.5Mt/yr giving a rough cost of US$267/t for the assets. This compares to the cost of US$170/t that the European Cement Association (CEMBUREAU) estimates is required to build new capacity. Back in August 2015 when Taiheiyo Cement’s Californian subsidiary CalPortland purchased Martin Marietta Materials’ two cement plants in the state it paid US$181/t. Summit Materials paid far more at US$375/t in July 2015 when it purchased Lafarge’s cement plant in Davenport, Iowa, although that deal included seven cement terminals and a swap of a terminal. Other sales in 2014 to Martin Marietta Materials and Cementos Argos also hit values of around US$450/t involving lots of other assets including cement grinding plants and ready mix concrete plants.
Back on Cemex, the current sale to GCC maintains its position as the third largest cement producer in the US after the HeidelbergCement acquisition of Italcementi completes in July 2016 subject to Federal Trade Commission approval. However, it holds it with a reduced presence. Its cement production capacity will fall to 13Mt/yr from 14.5Mt/yr. It loses cement production presence in Colorado although it may retain distribution if it holds on to its terminal in Florence. In Texas it retains the Balcones cement plant near San Antonio and up to nine cement terminals depending on which ones it sells to GCC.
Selling assets in the US must be a tough decision for Cemex given that a quarter of its net sales came from the country in 2015. This was its single biggest territory for sales. This share has increased in the first quarter of 2016 as the US market for construction materials has continued to pick up.
Withdrawing from western Texas with its reliance on the oil industry makes sense. The plant it has retained in that state, the Balcones plant, is within the so-called Texas Triangle and so can hopefully continue to benefit from Texas’ demographic trends for continued housing starts and suchlike. Colorado is one of the middling US states in terms of population and likely to be a lower priority than other locations. The sales will see Cemex retrench its cement production base in southern and eastern parts of the country with the exception of the Victorville plant in California.
We’ve been watching Cemex keenly as other multinational cement producers have merged and laid out plans to merge in recent years. Saddled by debts, Cemex has appeared unable to either buy more assets itself and has remained distant from any talk of merger activity itself. The sales announcements in the US reinforce the image of a company taking action to relieve itself of its debts in 2016 following sales in Thailand, Bangladesh and the Philippines, and amended credit agreements and more borrowing. However, sales of cement plants in west Texas and Colorado outside of the strong markets in the US don’t quite suggest a company that has really committed yet to reducing its debt burden. Cemex continues to walk a tightrope between keeping the creditors at bay and riding the recovery in the US construction market.
This article was updated on 14 June 2016 with amended production capacity data for the Odessa cement plant