Global Cement News

India: Shree Cement posted a 2.9% increase in its standalone net profit to US$43.4m in the quarter that ended on 31 December 2019, from US$42.2m a year earlier. Its revenue rose to US$399m from US$389m. The company reported that its cement sales rose by 6% to 6.0Mt for the quarter, from 5.6Mt in the corresponding quarter of the previous year.

France: Vicat’s sales were reduced in 2019 by poor markets in Turkey and, to a lesser extent, Switzerland and Egypt. Its sales fell by 1% year-on-year to Euro2.74bn in 2019 from Euro2.58bn at constant scope and exchange rates. Its cement sales volumes dropped by 2% to 22.4Mt from 22.8Mt but its concrete volumes grew by 1.1% to 9.1Mm³ from 9.0Mm³. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased slightly to Euro156m.

“Strong growth in France, the US, Africa and Kazakhstan helped offset difficult market conditions in Turkey and Egypt. Furthermore, in line with our strategy of targeted acquisitions, the purchase of Ciplan in Brazil, in January 2019, allowed the group to continue its international growth in a region offering strong potential by integrating teams and assets of the highest quality,” said chairman and chief executive officer (CEO) Guy Sidos.

The group performed well in France, the US and Italy, especially due to the acquisition of Ciplan in Brazil. Sales in Turkey suffered from a generally poor economic situation. Competition in Egypt and a downturn in the precast concrete market in Switzerland caused problems in these countries respectively.

Japan: Mitsubishi Materials and Ube Industries have signed a letter of intent to start discussing a potential merger of their cement businesses and related concerns. If the discussions and a subsequent study are successful, the companies plan to sign a definitive agreement in late September 2020 ahead of an anticipated integration around April 2022. Any formal decision to merge the companies would be subject to approval from the Japan Fair Trade Commission.

The companies have decided to explore merging their cement operations following slowing demand and increased costs due to higher energy prices. They have worked together since 1998 in a joint venture called Ube-Mitsubishi Cement, which integrated their cement sales and logistics operations.

Spain: LafargeHolcim España says that a planned Euro8m investment to its Sagunto integrated cement plant is dependent on talks with the Valencian local government on the medium and long-term use of its quarry. Plant director José Luis Coleto said that this expenditure is part of a Euro20m package that LafargeHolcim has scheduled for the country until 2022. He added that the plant has spent Euro3.5m on the plant in 2019 on control systems upgrades and installation of an automated laboratory.

South Korea: Asia Cement has awarded a contract to Germany’s Humboldt Wedag, a subsidiary of KHD Humboldt Wedag International, to supply and provide engineering for the modernisation of its third clinker production line at its Jecheon plant. The target of the upgrade project is to increase the alternative fuel substitution rate to above 85% of calciner fuel, as well as the reduction of NOx to satisfy local emission limits.

KHD’s scope includes the engineering and supply of mechanical equipment for the clinker production as well as electrical equipment for the overall modernisation of the production process. During the project, the existing preheater will be modernised with the installation of a new Pyroclon R calciner, as well as a Pyrorotor rotary combustion reactor for low-processed alternative fuel.

The overall project scope consists of: a Pyroclon R calciner with Pyrotop mixing chamber; a Pyrorotor alternative fuel combustion reactor; a Pyrobox coal firing system for process start-up and operation balancing; replacement of stage five cyclones with new high-efficiency cyclones for calciner connection and an overall pressure drop reduction; bypass mixing chamber installation; and a new kiln inlet chamber with orifice.

The commissioning of the modernised production line is planned for the first quarter of 2021.