Displaying items by tag: Capacity

Pakistan: The Economic Survey 2023-24, unveiled by Finance Minister Muhammad Aurangzeb, reported that the capacity utilisation of Pakistan's cement industry fell to 54.6% in the first nine months of the 2024 financial year (July 2023 – April 2024), the lowest level recorded since data collection began in 2006. Despite an overall production capacity of 82.3Mt, the industry managed only 37.5Mt/yr in local dispatches and exports during the period.

Uzbekistan: By the end of 2024, Uzbekistan will commission new cement production capacity of 8Mt/yr, according to the Uzsanoatkurilishmateriallari Association. This expansion will raise the country’s total capacity to 40.8Mt/yr.

Currently, there are 38 cement companies in Uzbekistan, contributing to an existing capacity of 35.3Mt/yr. From January to April 2024, the country produced 4.8Mt of cement, marking a 19% increase from the previous year, Uzbekistan Daily reports. The projected cement production for 2024 is 16.7Mt, closely aligning with last year's demand of 16.8Mt.

Kenya: East African Portland Cement (EAPCC) has recommenced operations at its Athi River cement plant after a one-month shutdown for renovations and maintenance. The plant has undergone a US$3m upgrade to expand its capacity in order to meet the increasing regional demand for cement, anticipating an annual production of 1Mt/yr within the next two years. Before the upgrade, the plant’s capacity was 310,000t/yr.

Board chairperson Richard Mbithi said critical components used in cement production processes such as filter bags and refractory bricks were replaced during the upgrade. EAPCC also refurbished its grate cooler system, enabling the company to increase its production targets.

Mbithi said “With the finalisation of the plant refurbishment and the resultant improved production and efficiency, we are confident that the company will accomplish the production and revenue targets.”

The company undertook the first phase of maintenance two years ago and it involved the replacement of the kiln shell which was completed in September 2022. This led to improved clinker and cement production and resulted in a 38% increase in revenues, according to the Star Kenya.

Philippines: Phinma Corp is set to expand its cement business with new facilities in Mindanao, according to a spokesperson for the company. The producer will establish a cement plant in Davao, valued at US$34.7m, which will bring the company’s total capacity to 5Mt/yr once completed. The plant is currently awaiting its environmental clearance certificate.

Additionally, the Petra plant in Zamboanga del Norte has started operations, with a cement grinding capacity of 500,000t/yr.

India: Ramco Cements has doubled the production capacity at its Jajpur plant in Odisha to 1.8Mt/yr. The company commissioned its Line II on Monday 1 April 2024 and started commercial production, adding 900,000t/yr to the plant's capacity. Additionally, an 18MW thermal power plant in Kolimigundla will be commissioned soon.

India: UltraTech Cement has allocated US$3.8bn for capacity expansion over the next three years, including the acquisition of Kesoram Cement. The company aims to increase grey cement production to 198Mt/yr. Recently, it commissioned two new greenfield capacities totalling 5Mt/yr in Chhattisgarh and Tamil Nadu, raising its total capacity to 152Mt/yr. This exceeds more than 150% of the capacity of the US and 80% of Europe's capacity.

In the last year, UltraTech Cement increased its capacity by 19Mt/yr, with an additional 36Mt/yr being added at 16 locations.

Afghanistan: The government says that contracts worth US$450m have been concluded for the expansion of three Afghan cement plants to 1.5Mt/yr capacity each. Local companies will carry out the expansions, at the Injil cement plant in Herat and the Shur Andam cement plant in Kandahar, while a Qatar-based company will carry out the Jabal Saraj cement plant in Parwan. TRT World News has reported that the Afghan Ministry of Mines and Petroleum expects Afghanistan to become self-sufficient for cement after the new capacity joins existing capacity at the Jabal Saraj cement plant and the Ghori cement plant in Baghlan. These two plants reportedly produce 330,000t/yr of cement, less than 10% of domestic demand.

South Africa: The South African cement industry faces plant closures and job losses due to an influx of ‘cheap’ cement imports, according to a recent study. Chronux Research found that cement imports to South Africa rose by nearly 20% in 2023, despite logistical challenges at ports. The firm's cement import monitor shows imported cement volumes increased by 18% in 2023 to 979,000t, with a notable 43% year-on-year growth in the second half of the year.

"Cement imports continue to be able to navigate the port and supply chain issues in South Africa with minimal impact," reads the report, highlighting the government's lack of protective measures for local cement producers. Vietnam, Mozambique, Namibia, Saudi Arabia and the UAE were the primary sources of these imports.

Chronux Research director Rowan Goeller expressed confusion over how imports are bypassing the country’s congested ports. The local industry has been lobbying for tariff protection against imported cement. The capacity of South Africa's cement production stands at 20Mt/yr, but only 12Mt/yr is currently produced.

A report by PPC Cement and the Gordon Institute of Business Science revealed in September 2023 that South Africa’s cement industry is operating at two-thirds of its capacity, citing displacement by imports and low demand as major factors. This underutilisation could lead to job losses and government revenue collections, according to the report.

Economic adviser for the Optimum group, Roelof Botha, raised concerns about the quality standards of imported products and their impact on local employment. He said "The extent to which the imported product displaces the locally manufactured products will ultimately also replace domestic employment," highlighting the government's slow response and the potential risks associated with poor-quality imports in construction.

Cameroon: Cimpor has begun operation of a new cement plant in the industrial and port area of Kribi, Cameroon. The plant has a production capacity of 1Mt/yr. Cimpor's entry makes it the sixth active cement producer in Cameroon, nine years after the end of a 48-year monopoly held by Cimencam, a subsidiary of Lafarge Holcim Maroc Afrique (LHMA).

Cameroon's first competitor was Dangote Cement Cameroon (1.5Mt/yr), followed by Morocco's Cimaf (1.5Mt/yr with the completion of the Douala plant extension), Mira Company (1.5Mt/yr), and Medcem Cameroon, a subsidiary of Turkey's Eren Holding (0.6Mt/yr).

With Cimpor's arrival, Cameroon's annual cement production capacity reaches 8.4Mt/yr, enough to satisfy the national demand, estimated at approximately 8Mt/yr. However, Cameroonian citizens still consider the cost of a 50kg cement bag high compared to countries with similar production levels.

India: UltraTech Cement has commissioned a new brownfield 1Mt capacity at its Roorkee-based facility in Uttarakhand, contributing to its total cement manufacturing capacity in India, which now stands at 138Mt. This addition is part of the 23Mt capacity expansion plan announced in June 2022.

In the third quarter of the 2024 financial year, UltraTech Cement reported a 67% increase in consolidated net profit to US$21.3m, with revenue from operations rising by 8% year-on-year to US$201m.