Displaying items by tag: Upgrade
Holcim Philippines prepares for demand in Luzon
09 May 2012Philippines: Holcim Philippines is preparing a US$9.46m upgrade of its formerly closed Batangas mill to meet an anticipated rise in demand in Southern Luzon.
Upon its reopening in 2013, the grinding plant in Mabini, Batangas with an existing capacity of 7.7Mt/yr will have an additional 500,000t capacity. The mill had been decommissioned in 2003 amid weak cement demand.
"South Luzon is one of the fastest-growing areas in the country and we expect this growth to continue, fuelled by both public and private construction. We want to be sure we have the facilities ready to deliver volumes when and where these are needed," said Roland van Wijnen, Holcim chief operating officer said in the statement.
Holcim's Mabini plant will be its second facility in Batangas after the company's Calaca terminal, which the company reopened in 2011 in a bid to serve the southern Luzon market and facilitate cement transfers from Mindanao to Luzon, where demand is highest.
"Having facilities across the country from north Luzon to Mindanao gives Holcim the strong advantage of being near its markets. Our Mabini facility will help further strengthen the capability and accessibility in bringing our products to where our customers are," van Wijnen said.
ACC to upgrade and consolidate
04 April 2012India: Associated Cement Companies Ltd (ACC) is reportedly planning to boost its capacity by 16% to 35Mt/yr from existing 30Mt/yr at present. The expansion will entail an investment of around US$650m, which would be funded entirely from internal accruals.
To achieve this, ACC plans to set up a 4Mt/yr cement unit and a 2.79Mt/yr clinker unit at Jamul in Chattisgarh. The company will also stop its existing production line at Jamul. Grinding units are also planned at Sindri in Jharkhand and Kharagpur in West Bengal. The company also proposes to develop four coal blocks in Madhya Pradesh and one in West Bengal for its raw material requirements.
Dangote Cement targets London for listing
02 April 2012UK: Aliko Dangote plans to list his US$11bn cement business, Dangote Cement, on the London Stock Exchange in 2013. Dangote is cited by the Financial Times as saying he intends to free-float a 20% stake in Dangote Cement to finance its rapid expansion.
"We want to list in London next year. By then the upside to our business will be much bigger than today," Dangote is quoted as saying.
Morgan Stanley and JPMorgan have been appointed as co-leads for the London share issue. Dangote is cited as saying the company was on track to meet the corporate governance requirements for a premium listing, and that he would give up his current role as chairman.
Chris Searle, Partner at BDO LLP commented, "If this IPO goes ahead, it will give London a significant credential that will hopefully attract other African companies at a time when Africa is one of the fastest growing regions in the world and will further cement London's status as the most international stock market in the world."
Searle added that the decision reflects a realisation by Dangote that it must improve its corporate governance. He also expressed surprise that the free float was 20%. Under current rules, the UK Listing Authority has set a minimum free float requirement of 25% for companies seeking to obtain a listing on the London Stock Exchange.
Al Jouf signs up Chinese firm to double its capacity
25 January 2012Saudi Arabia: Al Jouf Cement has announced that it has awarded a U$236m contract to China's Chengdu Design & Research Institute of Building Materials Industry Ltd, for the construction of a second production line at its plant. It was reported that the new line will have a capacity of 5000t/day.
Al Jouf said that the project would be financed by a combination of its own funds and debt and would be completed by February 2014. When complete, the new line will double the company's cement capacity to 3.5Mt/yr.
Saudi cement industry projects
03 January 2012Saudi Arabia: On 2 January 2012 Saudi cement producer and trader Al Jouf Cement announced that it is set to invest US$236m on the construction and commissioning of a second production line in addition to a dedicated power plant. The new production line will have a capacity of 5000t/day. The project, to be financed with a combination of own funds and debt, will take 25 months to complete.
Meanwhile, Hail Cement Company has obtained a large single order for its cement, having signed a US$31.2m joint-venture housing contract with Teberak Trading and Contracting Company and Mo B. Co. for Civil Construction. The 80,000m2, four-phase project will be built around 220km north of the northern city of Hail and will be completed within 18 months.
Holcim announces timeline for second phase of Guayaquil expansion
13 December 2011Ecuador: The Ecuadorean unit of the Swiss cement multinational, Holcim, has announced that it will begin the second phase of its Guayaquil plant expansion in December 2012. The second phase will require an investment of nearly US$400m and it will see the construction of a third kiln at the plant. This will allow the South American country to sustain its growth in the coming decades, according to the company.
As well as aiming to supply the country's domestic cement needs, the investment will generate about 2500 direct and indirect jobs in the country during the construction phase, which will last approximately 24 months. The first phase of the expansion in early 2010, an investment of US$120m, will be inaugurated in the first quarter of 2012. Completion of the project will see Holcim Ecuador's cement capacity jump from 3.5Mt/yr to 5.4Mt/yr.
Lafarge explains activity at Ravena
24 November 2011US: Lafarge has reiterated that its expansion and modernisation plan at its Ravena plant in New York State is on track, hitting back at rumours from recently laid-off employees that the company had slowed down or even scrapped its plans to expand the site.
During a press tour of the site, Lafarge's environmental manager for North America, John Reagan, provided evidence that the project had moved to a pre-construction stage. The US$300m modernisation project underwent nearly three years of permitting with the Final Environmental Impact Statement granted in the summer of 2011. Contractors are dismantling structures at the adjacent Callanan Industry site, so that Lafarge has the room for expansion.
Reagan said that the final design and procurement of materials is ongoing with the construction phase planned from late 2011 to 2014, with start-up planned for mid-2014 and full operation planned for 2015. “2015 seems like a long time from now,” Reagan said, “But it’s not much time to complete all the work that has to be done.” Additionally, the senior project manager, John Light, spoke of the upcoming procurement of heavy equipment including new vertical roller mills.
Over the past few weeks several former Lafarge employees, some of whom were among the 39 laid off on 27 October 2011, have accused the company of everything from not intending to build the new plant to mismanagement. One has accused the company of doing just the bare minimum required to keep the permits valid before closing the plant when the permits expire.
Lafarge said that it plans to stay in Ravena and that the layoffs and the cut in production were related to the ailing US economy. The plant will soon go to a one-kiln operation, a 50% reduction in capacity. “Demand for cement will determine what capacity we run at,” said Reagan. “We anticipate, based on industry forecasts, that demand will not change much during the next two years."
Anhui Conch embraces 'go-global' policy
16 November 2011China: Anhui Conch Cement Co Ltd, China's biggest cement producer, plans to add 10Mt/yr of cement production capacity to its annual total by 2015 via overseas expansions. This will include both setting up its own new facilities and acquiring international rivals that are currently weakened by the European debt crisis, according to Wang Jianchao, manager of Anhui Conch's foreign economic cooperation department. Anhui Conch wants to expand its production to other countries because China has restrictions on new cement projects, which aim to combat the industry's overcapacity. The Shanghai-listed company produced 110Mt of cement in China in 2010 according to its annual report.
Jianchao said that the company, which currently has no overseas production, is engaged in a 'go-global' strategy. "Many cement plant owners in the Eurozone want a quick bailout because they need cash to save their businesses, which were hit hard by the European debt crisis," said Wang, adding that the company is moving at the best time to build its overseas operation. He declined to disclose the budget for strategy, but said the company is financially strong enough to expand.
Anhui Conch Cement began its overseas expansion in late June 2011 when it signed a memorandum of understanding to invest USD2.35bn in several Indonesian cement plants. Wang offered no details on the status of the proposed Indonesian projects, but he hinted that the Anhui Conch's first foreign factory may open elsewhere because opportunities in other countries are also being explored.
"Apart from Indonesia, we are in discussions with potential business partners in Mongolia, Central Asia and South America. It's hard to say whether our foreign production will operate in Indonesia first, because other foreign projects may proceed more smoothly," said Wang.
To help its overseas expansion plan go smoothly, Anhui Conch teamed up with the Swedish industrial leader Atlas Copco Group AB to gain access to its cutting-edge mining machinery and training systems. The two companies have a history of cooperation dating to 1993 and the drilling equipment used by Anhui Conch is supplied by Atlas Copco.The Swedish company has a strong customer base in Indonesia.
Oman Cement Co secures USD68m loan for upgrades
20 October 2011Oman: BankMuscat has signed an agreement with Oman Cement Company (OCC) for term loans totalling USD68m to refinance and modernise OCC plants.
The loan will be invested in funding the project for upgrading the OCC furnace efficiency and improving equipment of combating pollution, in addition to benefiting from the loan in the recovery of another funding loan.
Jamal bin Shamis al-Hooti, CEO of OCC said that the agreement would help the OCC factory to meet requirements of the Omani market.