Displaying items by tag: grinding plant
India: Construction workers employed at the site of Ramco Cement’s Haridaspur, Odisha, grinding plant, which has been under construction since early 2018, have protested over an alleged lack of food being supplied to the plant, where they are currently residing. The Pioneer newspaper has reported that the nationwide coronavirus lockdown prevented the 400 workers, from Bihar, Jharkhand and West Bengal, from returning home, leading them to take up residence in the Haridaspur plant. Police are talking with the protestors and Ramco Cements management.
Indian producers pull plug on operations
24 March 2020India: Several cement producers have responded to the coronavirus pandemic with plant closures. Reuters has reported that India Cements has temporarily closed all of its plants. JK Lakshmi Cement has suspended cement production at its 4.2Mt/yr integrated plant in Jaykaypuram, Rajasthan and at three grinding plants. JK Lakshmi subsidiary Udaipur Cement Works has shut its 1.6Mt/yr integrated Udaipur plant, also in Rajasthan.
Dalmia Bharat refractory production subsidiary Dalmia-OCL’s CEO Sameer Dagpaal told the Business Standard newspaper that he expected the virus’ impact on the company to be ‘relatively limited,’ with a slowdown in demand from the cement sector lasting at most ‘a couple of months.’ He noted that there had been ‘some minor supply-side disruptions relating to a shortage of raw materials from China.’
On 24 March 2020 the all-India total number of coronavirus cases crossed 500, with nine dead, according to Al Jazeera. 200 cases are in the western states of Maharashtra and Kerala.
LafargeHolcim Maroc shares 2019 results
17 March 2020Morocco: Switzerland-based LafargeHolcim subsidiary LafargeHolcim Maroc has recorded a profit of Euro161m in 2019, up by 7.5% year-on-year from Euro149m in 2018. Its sales held steady at Euro744m. The company says that it ‘does not anticipate any significant change in market conditions’ in 2020. Its new Agadir-Souss grinding plant is scheduled to come online in 2020.
Raysut Cement announces Madagascar plant plan
03 March 2020Madagascar: Oman-based Raysut Cement has shared plans for a US$30m, 0.75Mt/yr clinker grinding plant in Toamasina, Madagascar. L’Express de Madagascar newspaper has reported that Raysut Cement will begin construction in June 2020 and enter production at the facility in mid-2022 at the latest. Raysut Cement Indian Ocean regional director Pascal Naud said, “Madagascar’s pre-capita cement consumption is around 22kg/yr, compared to 125kg/yr on average in sub-Saharan countries. It is therefore a market with high potential for this investment.”
On 2 February 2020 Raysut Cement entered into talks with Switzerland-based Cementia for acquisition of the latter’s 75% stake in the latter’s LH Maldives cement terminal. The group said it is currently ‘developing an external growth strategy by investing in several African countries such as Kenya and Uganda.’
Dangote Cement plans 1.1Mt/yr grinding plant in Gabon
02 March 2020Gabon: Dangote Cement has shared plans for the construction of a 1.1Mt/yr grinding plant on a greenfield site near the New Owendo Internation Port in Owendo, Komo-Mondah department. Dangote Cement has stated that the US$75m facility, scheduled for completion in early-2021, will ‘close the cement production gap in this emerging country.’ It will supply cement to Gabon and the central African region.
Nuvoco Vistas builds its cement base across central India
12 February 2020Nirma Group won the auction for Emami Cement this week with an US$770m offer. The deal is subject to approval by the Competition Commission of India but it signals further consolidation for the Indian cement industry. It sets Nirma Group and its subsidiary Nuvoco Vistas in a strong position in Central, North and East regions of the country, if authorities agree to it.
Sometimes the press releases connected to corporate acquisitions can be accused of hyperbole but Nuvoco’s chairman Hiren Patel may be proved closer to reality than some when he said, “This acquisition is a momentous and transformational step in Nuvoco’s journey to becoming a major building materials company in India.” This is because Emami Cement operates one integrated cement plant in Risdah, Chhattisgarh and grinding units in Bihar, West Bengal and Odisha with a total installed capacity of 8.3Mt/yr. It also holds mining leases in Chhattisgarh, Rajasthan and Andhra Pradesh. Nuvoco Vistas runs four integrated plants in Chhattisgarh and Rajasthan and three grinding plants in West Bengal, Jharkhand and Haryana with a total installed capacity of around 15.2Mt/yr.
Put all of this together and Nuvoco Vistas has a capacity of 23.5Mt/yr. This may not make it a leader nationally, where it faces the likes of UltraTech Cement’s capacity of just under 110Mt/yr. Yet it does make the producer a serious player regionally in Chhattisgarh and Rajasthan. Backing this up are five grinding plants in East India. Hence, Hiren Patel might not be exaggerating all that much.
It’s difficult to ascertain the valuation of this deal given the mixture of integrated and grinding capacity that was on sale. Altogether, for its total of US$770m, Nirma Group has agreed to pay around US$93/t. Like any deal there must have been some haggling going on given that the projected price for Emami Cement drifted downwards as the auction went on. Emami Cement’s owners reportedly valued the company at around US$1.2bn before the auction and were subsequently said to be looking for US$1bn. Later, local media said that UltraTech Cement was likely to submit an offer around US$0.94bn.
In the wider context of the Indian cement industry, the picture looks similar to when this column looked at the country as a whole in December 2019. Since then the November 2019 production figures have been released showing that cement production grew in the first 11 months of 2019, to 308Mt, but at a far slower rate than in 2018. A growth in production in November 2019 also broke a downward trend since August 2019. Adding to this growing sense of optimism, analysts ICRA were forecasting increasing profitability for cement producers in the 2020 financial year due to ‘benign’ input costs. If correct then Nirma Group will have picked a good time to expand.
HeidelbergCement India grows sales and profits
12 February 2020India: HeidelbergCement India’s revenue grew by 4% year-on-year to US$221m in the nine months to 31 December 2019 from US$232m in the same period in 2018. Its sales volumes fell by 1.9% to 1.22Mt from 1.29Mt. Its net profit rose by 26% to US$22.4m from US$28.3m. The subsidiary of Germany’s HeidelbergCement said that, despite a fall in revenue in the quarter to 31 December 2019, a decrease in petcoke prices and an increase in power generation from waste heat recovery systems, had helped to keep costs under control.
The cement producer added that de-bottlenecking work at its grinding mills at Imlai in Madhya Pradesh and Jhansi in Uttar Pradesh is expected to be completed by the end of March 2020. Following completion of the project the company’s total cement grinding capacity will be 6.26Mt/yr.
Çimsa launches white cement product at World of Concrete trade fair
12 February 2020US: Turkey’s Çimsa has launched a new white cement product for the US market at the World of Concrete trade fair in Las Vegas. The subsidiary of Sabancı Holding has showcased its Çimsa Aluminates and Çimsa Super White product ranges.
“As one of the largest grey cement producers of Turkey, Çimsa is among the top three in the global league of white cement. We have increased our visibility in the global cement industry through our investments abroad,” said, Çimsa’s chief executive officer (CEO) Ülkü Özcan. He added that the cement producer founded its Cimsa Americas Cement Manufacturing and Sales Corp in the US in 2017. It then started operations at a grinding mill in Houston, Texas in 2019.
Buzzi Unicem boosts 2019 sales by 12% year-on-year
10 February 2020Italy: Buzzi Unicem’s consolidated sales rose by 12% year-on-year to Euro3.22bn in 2019 from Euro2.87bn in 2018. The company saw a rise in cement sales volumes of 4.3% year-on-year to 29Mt from 28Mt. The company attributed the boost to its 0.9Mt integrated Testi plant in the Veneto region of Italy, which it commissioned on 1 July 2019, and two new grinding plants in Italy and Germany.
Nirma wins Emami Cement auction
06 February 2020India: Nirma Ltd’s subsidiary cement producer Nuvoco Vistas has announced that it has entered into an agreement with Emami Group for the acquisition of the latter’s 8.3Mt/yr-capacity cement business, including a 2.5Mt/yr integrated plant in Chhattisgarh and three grinding facilities. The company says that with the completion of a capacity expansion to its 4.6Mt/yr Jojobera, Jharkhand, plant in early-2020 it will have a total installed cement capacity of 23.5Mt/yr. Nuvoco Vistas managing director Jay Krishnaswamy said, “This is a momentous development for us, and in line with our long-term ambition to become a leading building materials company delivering superior performance!”