Global Cement Newsletter

Issue: GCW440 / 29 January 2020

Headlines


If you needed a sign that the cement industry has become serious about carbon capture it was the presence of two organisations offering CO2 transport and storage capacity in northern Europe at last week’s Innovation in Industrial Carbon Capture Conference 2020 (IICCC). Both Norway’s Northern Lights and the Rotterdam CCUS (Project Porthos) were busy at their stands during the event’s exhibition. Meanwhile, Cembureau, the European Cement Association, said that it will work on finding other potential storage sites for CO2 and on identifying existing gas pipelines that could be converted. The industry is planning what to do about CO2 transport and storage.

As with the previous IICCC event in 2018 the heart of the programme was the Low Emissions Intensity Lime And Cement (LEILAC) project. Since then Calix’s 60m tall pilot Direct Separation Calciner unit has been built at the HeidelbergCement cement plant in Lixhe and has been tested since mid-2019. Early results look promising, with CO2 separation occurring, calcined material produced and the tube structure and mechanical expansion holding up. Problems with thermocouples failing, blockages and recarbonation at the base of the tube have been encountered but these are being tackled in the de-bottlenecking phase. Testing will continue well into 2020 and plans for the next demonstration project at another cement plant in Europe are already moving ahead. LEILAC 2 will see industry partners Cimpor, Lhoist, Port of Rotterdam and IKN join Calix, HeidelbergCement and other research partners to work together on a larger 0.1Mt/yr CO2 separation pilot scheduled for completion in 2025.

Alongside this HeidelbergCement presented a convincing vision of a carbon neutral future for the cement industry at the IICCC 2020. It may not be what actually happens but the building materials producer has a clear plan across the lifecycle chain of cement. It is researching and testing a variety of methods to capture CO2 process emissions, is looking at supply chains and storage sites for the CO2 and is working on recycling concrete as aggregates and cementations material via recarbonation. In terms of carbon capture technology, an amine-based industrial scale CCS unit looks likely to be built at Norcem’s Brevik plant in the early 2020s. HeidelbergCement’s other joint-research projects – direct separation and oxyfuel – are further behind, at the pilot and pre-pilot stages respectively. Each technology looks set to offer progressively better and cheaper CO2 capture as they come on line.

Or put another way, cement companies in Europe could build industrial scale amine-based carbon (CC) capture plants now. Yet the game appears to be to wait until the cost of CCS falls through new technology versus the rising emissions trading scheme (ETS) price of CO2. CC is expected to become economically feasible in a decade’s time, sometime in the 2030s. At which point there might be an upgrade boom as plants are retrofitted with CC units or new production lines are commissioned. Other ways of reducing the cement industry’s CO2 emissions, of course, are being explored by other companies such as further reducing the clinker factor through the use of calcined clays (LC3 and others), solar reactor or electric-powered kilns and more.

The usual problem of how the construction industry can cope with a higher cost of cement was acknowledged at IICCC 2020 but it is largely being worked around. Higher priced cement poses competitive issues for specifiers and construction companies but it is widely expected to result in price rises below 5% for most residential end users. In the short-term government policy such as requiring low carbon cement in state building projects could stimulate the market. The start of this process can be seen already with the use of slag cements in various infrastructure projects.

Hans Bergman, Head Unit ETS Policy Development at the Directorate-General for Climate Action (DG Clima) partly addressed the cost issue by talking about the EU Green Deal. The EU wants to meet its new targets but it also wants to let gross domestic product (GDP) rise whilst greenhouse emissions fall. The EU ETS is its principle vehicle for this but the commission is wary of changes, such as making modifications linked to CCS, in case it undermines the system. Discussions are ongoing as the work on the Green Deal continues.

IICCC was a wider forum beyond just what LEILAC is up to. To this extent the CC projects involve multiple partners, including those from other cement companies like Cemex and Tarmac (CRH) in LEILAC and Dyckerhoff (Buzzi Unicem), Schwenk Zement and Vicat in the oxyfuel project. The decarbonisation fair included representatives from Vicat’s FastCarb project and Polimi’s Cleanker. Speakers from the European Climate Foundation, Acatech, INEA, TCM, SINTEF and Lhoist were also present.

During one speaker discussion Calix was described as the 'Tesla' of industrial CC by one speaker, who said that, “…there is a genuine competitive opportunity for those bold enough to grasp it.” Calix’s managing director Phil Hodgson enjoyed the accolade but the point was that leading innovation or setting the agenda offers advantages. In the case of industrial CC for the cement industry, change feels a step closer.


Saudi Arabia: Tabuk Cement has appointed Saoud Bin Solaiman Al-Juhni as the chairman of its board of directors. Abdulaziz Bin Abdelrahman Alkhamis has been appointed as the deputy chairman and the cement producer has also announcement the composition of its executive and audit committees.


UK: Hanson has appointed Andrew Simpson as its packed products director, adding operational responsibility to his commercial remit. He is responsible for sales of all of its packed products, including cement, ready-to-use concrete and aggregates, and will now also look after manufacturing at the company’s ready-to-use production site in Nuneaton, as well as its construction aggregates packing plants across the country.

Simpson started his career with Hanson in 1997 when he was appointed area sales manager for Castle Cement, part of the HeidelbergCement Group, which bought Hanson in 2007. Since then he has held a number of different sales roles and attained a degree in Business Studies from De Montfort University in Leicester. In 2017 he was honoured with the freedom of the City of London and installed as a Liveryman of The Worshipful Company of Builders Merchants in recognition of his work within the builders’ merchants’ industry.


US: Schust, a member of the Scheuch Group, has appointed Daniel Locke as Director of Business Development – Industrial Minerals, where he will support Schust’s North American cement producer customers. Locke has nearly five years of sales and technical experience in the industrial minerals and energy industries. He holds a Bachelor of Science in Business Administration from the University of Southern Mississippi.

Schust provides turnkey industrial ventilation systems. It is part of Scheuch Group via Scheuch North America.


US: Jon K Tabor, the Chairman Emeritus of Allied Mineral Products, is to retire at the end of March 2020. He celebrates 50 years with Allied on 16 February 2020. He will remain on Allied’s board of directors following his retirement.

Tabor started a 65-year career in the refractories industry in 1955 when he started working for Norton Company (Saint-Gobain), in Worcester, Massachusetts. He joined Allied as Sales Manager in 1970, when Allied was a small company. Tabor helped transform Allied from a two-man partnership into a multi-national corporation with almost 1000 employees in 25 countries, and manufacturing facilities in eight countries and four US states. His Allied career has included the roles of Sales Manager, Vice President of Sales, President, chief executive officer (CEO), Chairman, and most recently, Chairman Emeritus. Notably, he led the transformation of Allied to an employee owned (ESOP) company in 1986.

Tabor attended the United States Merchant Marine Academy, served in the US Army and Army Reserves; graduated from Alfred University in 1955 and earned an MBA from Northeastern University in 1962.


Kenya: Devki Group subsidiary National Cement has launched its second Kenyan plant in Salgaa in Nakuru county at a cost of US$58.0m. Business Daily News has reported that the 0.75Mt integrated plant will supply cement to Kenya, South Sudan and southern Ethiopia.

Devki Group chairman Narendra Raval said that the completion of a 0.75Mt/yr second line at National Cement’s 1.2Mt/yr Kajiado County plant would bring the group’s total capacity to 3.5Mt/yr in July 2020, in a speech in which he lobbied the government to ban clinker imports. “We are gearing towards fixing the country’s clinker gap and making Kenya a regional market for raw material in cement production,” said Raval. The group also produces its Simba brand cement in Uganda.


Russia: Yakutcement has commissioned a crushed stone conveyor to circulate crushed stone of a 200 - 400mm fraction for secondary crushing at the 0.4Mt/yr Yakutcement plant in Mokhsogollokh. Yakutcement has said that the installation will save on the costs of a front-end loader and dump truck for conveying crushed stone to and from a temporary warehouse prior to secondary crushing.


Russia: Sibirsky Cement Holding (Sibtsem) subsidiary Topkinsky Cement has announced that it has entered commercial production of a new Mita slag Portland cement with granulated blast furnace slag (GBFS) at its 2.7Mt/yr integrated plant in Topki, for which it received a certification of conformity with ‘cement for general construction’ standards on 16 January 2020. Nina Poputnikova, Topkinsky Cement laboratory and quality department head, said that it is producing the cement in response to ‘construction companies’ increased interest in cement for use in reinforced, precast concrete in monolithic structures such as buried and hydraulic structures.’

“In the near future we plan to certify two new cements,” said Topkinsky Cement managing director Alexey Ospelnikov. One will be a low-heat general-purpose cement for large-sized concrete structures and the other a sulphate-resistant Portland cement. “Expanding the assortment will help strengthen the company’s position in the Russian cement market.”


Greece: Titan Cement has opened the Group Digital Centre of Competence, a facility which it says will consolidate its digital and advanced analytics capabilities. Titan says the Centre ‘accelerates its digital efforts’ set out under its Group Digital Initiative. “This is an essential part of efforts to increase operational efficiency and competitiveness,” said the company.


Russia: Eurocement has announced the continuation of its cooperation agreement with construction company PIK Group in 2020. The 30.7Mt/yr-capacity cement producer, Russia’s largest, sold 0.2Mt of cement to PIK Group in 2019, bringing the total volume exchanged in the course of their cooperation to 0.8Mt. Eurocement sales vice president Ilya Kosykh said, “We guarantee our customers stable cement performance and uninterrupted deliveries of building materials on time.”


Germany: Beumer Group has developed a screw weigh feeder with automatic calibration. The company says it is especially well suited to exact and controlled feeding of inhomogeneous bulk materials of densities between 0.08t/m3 and 0.80t/m3 and extremely high moisture content such as alternative fuels. Its capacity is 30t/hr and its weighing tolerance is between 1% and 2%. It is completely covered to prevent dust and other environmental stresses.


France: HeidelbergCement subsidiary Ciments Calcia has announced a planned investment of Euro30m of upgrades in early 2021 to its 1.0Mt/yr integrated Couvrot plant in Marne department. L’Union Ardennes newspaper has reported that the upgrades will be ‘process improvements’ to grinding and energy consumption rather than expansions to the plant’s capacity. HeidelbergCement director Didier Faure said the group wants to turn the Couvrot plant into its ‘leading site in Western Europe.’ Faure also called for improvements to safety procedures after three people were injured on site in 2019 – up by 50% from two in 2018.


Ghana: The Department of Trade and Industry has declared a moratorium on the construction of new cement plants in response to a cement surplus on the domestic market. Chamber of Cement Manufacturers executive secretary George Dawson-Ahmoah said that consumption stands at 6.5Mt/yr nationally. Ghana’s eight producers are utilising 50% of an total installed capacity of 12Mt/yr, according to All Africa News. “The government is investigating measures to prevent imports,” said Carlos Kingsley Ahenkorah, Deputy Minister of Trade and Industry. This may involve cement quality certification by the Ghana Standard authority.


Qatar: Qatar National Cement Company (QNCC) has recorded a profit of US$47.3m in 2019 – down by 51% from US$95.5m in 2018. This was caused by a 17% year-on-year fall in earnings to US$193m from US$233m in 2018 due to a 24% fall in production year-on-year – from 2.9Mt to 2.2Mt – and increased costs from the completion of the fifth line at the company’s integrated plant, as well as the diversification of its products to include white as well as grey cement.


US: Curt Snyder, owner of Lancaster Products, has acquired cement grinding technology supplier Bradley Pulverizer. Snyder said, “Bradley Pulverizer’s line of pulverisers and mill classifiers complement Lancaster Products’ mixing, granulating and crushing capabilities,” to provide complete solutions and services to the cement industry.


Germany: Research from the Potsdam Institute for Climate Impact Research (PIK) has suggested that wood, including fast-growing bamboo, could supplant 50% of cement and steel used in construction, cutting global CO2 emissions by up to 880Mt/yr and providing a carbon sink for close to 700Mt/yr of CO2 emissions. Assuming a no-change scenario in cement production practices, PIK fellow Galina Chakina says, ‘the shift to timber would make quite a difference for achieving the climate stabilisation targets of the Paris agreement.’


Germany: The Loesche Training Center in Duesseldorf, Germany played host to 65 delegates from 22 countries on 13 - 14 November 2019 for the company’s 8th Technical Seminar. The event's motto was ‘resource-efficient strategies in cement production’ and was aimed primarily at process and maintenance personnel in the cement industry. The focus was on the exchange of expert knowledge and practical experience.

The first day of the event included presentations on the state of research of CO2 capture, utilisation and storage, alternative fuels in cement production, Loesche’s first experiences with waste conditioning plants in the US, chlorine bypass considerations, coal mill safety and grinding of novel cement products.

After a sumptuous dinner at the Rhine Tower in Duesseldorf, on the evening of 13 November 2019, delegates reconvened for presentations on wear parts and spare inventory management, mill installation, grinding plant process technology, mill modernisation case-studies and digital maintenance on 14 November 2019.

Delegates were pleased with the level of technical expertise offered, as well as the event’s organisation and hospitality. Loesche will additionally host a series of Technical Symposia throughout 2020.


India: Birla Corporation has published plans for the construction of a 3.9Mt/yr-capacity integrated cement plant with a 40MW fossil fuel power plant and an 11MW waste heat recovery (WHR) plant at Mukutban, Maharashtra, which it says it will commission by March 2021. The Business Standard newspaper has reported that Birla Corporation, which is upgrading the clinker production capacity at its 2.5Mt/yr integrated Chanderia plant in Rajasthan to 3.0Mt/yr, will also upgrade its 0.6Mt/yr Kundarganj grinding plant in Uttar Pradesh to a capacity of 1.2Mt/yr. The planned projects will bring Birla Corporation to 20Mt/yr in installed capacity, making it India’s fifth-largest cement producer.


Mexico: Cemex has announced that it will expand its 7.2Mt/yr integrated Tepeaca plant in the state of Pueblo in 2020 into ‘the largest Cemex plant in the world and one of the largest in the entire American continent.’ It did not enclose the capacity of the upgrade, which will cost a total of US$530m.

Visiting the plant on 24 January 2020, Mexican President Andrés Manuel López Obrador expressed hope in a boost in private investment in the Mexican economy, which fell by 12% year-on-year in 2019, in the wake of the new Free Trade Agreement between Canada, Mexico and the US. Cemex said that its planned investment ‘indicates its trust in the country.’


Russia: KuzbassTransCement’s total volume of cement transported by rail in 2019 was 2.98Mt – up by 8% from 2.76Mt in 2018. Throughout the year, it implemented upgrades worth US$29m to its transportation facilities, including the lease of an additional 145 covered wagons, 346 cement hoppers and 90 dump cars, representing roughly a 14% expansion to its fleet.


India: Ramco Group subsidiary Ramco Cements has invested US$0.7m in a 46% share in Lynks Logistics. The company will serve the 17Mt/yr-installed capacity producer’s logistics and distribution needs for all of India.


Finland: Machinery manufacturer Metso Corporation has announced plans to consolidate its European warehouse operations, currently spread over Norway, Sweden, the UK, France, Spain, the Czech Republic, Turkey and Russia, into a single location. Metso Corporation customer logistics senior vice president Jarkko Aro said the move ‘would also enable considerable savings in end-to-end freight costs and reduced CO2 emissions.’ 40 employees are potentially affected. Metso Corporation has not disclosed any locations under consideration for the facility.


India: Having announced that it will not participate in bidding for Emami Cement, Shree Cement has announced a planned increase to its production capacity of at least 13.1Mt/yr to 55.0Mt/yr or more by 28 February 2023 from 41.9Mt/yr. It would do this through as yet undisclosed upgrades worth a total of US$1.26bn. The Business Standard newspaper has suggested that the measure is aimed at taking on UltraTech, the expected winner in the auction for Emami Cement’s 5.6Mt/yr-capacity installed assets (under expansion to 8.7Mt/yr).

A source of additional capital for Shree Cement’s planned expansion will be a qualified institutional placement (QIP) through which it has raised US$337m. The company acknowledged that it might reach its target through acquisitions from other producers, for which it would not exceed US$80/t of capacity.


Russia: Siberian Cement’s production increased by 3.0% year-on-year to 3.2Mt in 2019 from 3.1Mt in 2018. The company estimated that demand over the period in Siberia, Buryatia and the Trans-Baikal region grew by 4.4% year-on-year to 5.3Mt/yr from below 5.1Mt/yr in 2018. Siberian Cement owner Sibtsem Holding Company’s first vice president Gennady Rasskazov suggested mining and metallurgical projects, the bridging of the River Ob and infrastructure development for the World Youth Hockey Championship 2023 as factors contributing to the rise in demand.


Colombia: Switzerland-based construction materials producer Sika has invested an undisclosed sum in relocating production from a concrete admixture and mortar plant in Colombia to a larger facility in Barranquilla. Sika Americas regional manager Christopher Ganz said, “Our latest investment in Barranquilla will help us capture the potential of the dynamic construction market in the Caribbean region. Our aim is to grow more quickly than the construction market in this region.” The market grew by 15% in 2019.

Sika also manufactures building products for the Colombian market at facilities in Bogotá, Medellín and Duitama.


Germany: Holcim Deutschland has announced the successful development of Holcim EcoPact Zero, a net-zero carbon concrete. It says that it is in talks with customers in Germany and will make the first deliveries of EcoPact Zero in early 2020. Holcim Deutschland CEO Thorsten Hahn said, “The use of clinker-reduced cements and the optimisation of the binder content play a central role. The still unavoidable CO2-footprint is fully offset at with the support of various certified environmental projects.”


Turkey: Germany-based safety specialist Schmersal announced its entry into business at a new branch in Istanbul, Turkey on 21 January 2020. In partnership with Satech Safety Technology, it will supply its full range of products and comprehensive services to the Turkish and Azerbaijani cement sectors. Bariş Yücel, managing director of Schmersal Turkey, said, "Schmersal is already a well-known manufacturer on the Turkish market. Our goal is to become customers’ first choice supplier.”


Russia: ASK Cement is set to begin development of a new integrated cement plant on a greenfield site near Yekaterinburg in Sverdlovsk Oblast. Germany-based Aumund has announced that it will supply KZB and KZB-Q pan conveyors, BZB bucket apron conveyors, SDG clinker silo discharge gates, BWZ chain bucket elevators and BWG-L belt bucker elevators to the project in early 2020. Aumund designed the line in collaboration with ASK Cement and its engineering partner Sibniiproject Cement Design Institute.


US: Residents of Shenango, Pennsylvania attended a public hearing regarding Cemex USA’s plan to begin limestone mining at a 593 acre site in the township. New Castle News has reported that the proposal is part of a planned reopening of the company’s 0.9Mt/yr integrated Wampum plant, decommissioned in 2010 after 136 years’ operation, located nearby in Lawrence County. Cemex USA director of cement resources Mark Davies said that Cemex has plans that would generate ‘as much as US$109m’ for Lawrence County and Pennsylvania. Cemex’s legal staff advised residents that 100 new jobs and at least US$100m was at stake.


India: The Economic Times has reported a forecasted profit growth for UltraTech Cement of 122% to US$119m over the three months to 31 December 2019 from US$53.6m in the corresponding period of 2018. It explained the boom in terms of increased sales, which may have risen by 7% year-on-year to US$1.50bn from US$1.40bn, and earnings before interest, taxes, depreciation and amortisation (EBITDA) per tonne – up by 45% to US$15.8/t from US$10.9/t. It predicted volumes growth of 3% year-on-year, dragged down by UltraTech subsidiary Century Cement’s falling production.


UK: The Competition and Markets Authority (CMA) has issued Initial Enforcement Orders (IEOs) to Breedon Group and Cemex over the former’s acquisition of a minority of UK ready-mix and aggregates operations, as well as a cement terminal, belonging to the Mexican cement giant for Euro211m. Breedon Group said that the IEO was expected and would govern, among other things, the ‘form and scope of the information that can be shared between Breedon and Cemex’ in defence of customers’ interests, according to The Construction Index website.