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Court ruled in favour of Cementos de Chihuahua 15 October 2015
Bolivia/Mexico: A civil court in La Paz, Bolivia has ruled to suspend the damages sentence imposed by the Inter-American Commercial Arbitration Commission (CIAC) that obliged Mexican cement company Grupo Cementos de Chihuahua (GCC) to pay Bolivian investment company Compania de Inversiones Mercantiles (Cimsa) compensation. The decision, announced on 9 October 2015, sets the arbitration court to issue a new resolution and cancels the embargo sentence ruled by a court in Colorado, US. This resolution obliged GCC to provide information about its properties in Colorado and to cancel any assets sales in that area.
INC could be turned into cement importer immediately 15 October 2015
Paraguay: Paraguay's Industry and Trade Minister Gustavo Leite has revealed that the possibility of turning Industria Nacional del Cemento (INC) into a cement importer with immediate effect is being considered by the authorities, which are concerned about on-going cement supply issues and cement prices.
A public-private partnership to increase capacity to 1Mt/yr is being sought, but this will require a new cement plant, which takes between three and four years, so it will not solve the existing problems. A tender process to import cement could be organised before the end of October 2015 and the product could arrive in November 2015.
Secil to build new 2Mt/yr cement plant in Brazil via Supremo 15 October 2015
Brazil: Portugal's Secil plans to upgrade its production capacity in Brazil by 2Mt/yr by the end of 2015. The move results from the addition of a new US$149m plant by its local division, Supremo, in Adrianopolis, Parana. Supremo also runs another plant in Pomerode, Catarina. The new plant will increase Secil's total cement production capacity from 7.65Mt/yr to 9.65Mt/yr, a 26% rise.
Trickle down economics in Ecuador
Written by David Perilli, Global Cement
14 October 2015
Change draws nearer this week in the Ecuadorian cement industry with the announcement of further details on a new integrated cement plant. Union Cementera Nacional (UCEM) plans to build its third cement plant. The part-government owned group will build its new 2200t/day facility in the country's central Chimborazo province. The move will expand the group's domestic production from 1600t/day to 3800t/day, adding to its existing 650t/day of plant in Chimborazo and its 950t/day plant in Azogues. The expansion was supported by a US$230m investment agreement agreed in September 2015 between UCEM and Casaracra.
The timing is interesting here given that cement sales have reportedly fallen year-on-year by 7% for the first seven months of 2015, according to Ecuadorian Institute of Cement and Concrete (INECYC) data. Holcim, in its financial report for the first half of 2015, attributed its lower cement volumes to effects on the local economy by lower oil prices and poor weather. This also followed a declining year for volumes in 2014 after Holcim reported a record year in 2013.
Holcim also reported continuing to export clinker to its Ecuador unit in 2014 despite the drop in volumes. To that end it completed the second phase of its own expansion project at its Guayaquil cement plant back in March 2015. It increased its clinker production capacity to 4500t/day at the site at a cost US$400m.
Also of note, but on a smaller scale, was the announcement by the North American subsidiary of Gebr. Pfeiffer in September 2015 that it was supplying a new MPS swing mill for an existing grinding station at a clinker plant run by Hormicreto. Published details are sketchy on this plant but A TEC Greco refers to supplying a burner to the company for a cement kiln in 2013. The mountainous location and ownership by a concrete producer suggest that this may be a mini-cement plant.
Following the departure of Lafarge from the market at the end of 2014, Ecuador now has three main cement producers: LafargeHolcim (inheriting the Holcim assets), UCEM and Union Andina de Cementos (UNACEM). UCEM's expansion plans will increase its share of the industry by production capacity making it the second largest producer in the country. MCPEC - INECYC estimates projected that cement demand would reach 9Mt/yr in 2018. Meanwhile Manuel Román Moreno, general manager of the Empresa Pública Cementera del Ecuador (EPCE), estimated that the country imported around 1Mt/yr of clinker in 2014.
The question then for UCEM is whether the country will want 9Mt/yr of cement in 2018 with a depressed price of crude oil. As an Organisation of the Petroleum Exporting Countries (OPEC) Ecuador's economy is, no doubt, feeling the pinch from the low price of crude oil after a period of growth. In its expansion announcement UCEM reported the reliance of the new plant on bunker oil. This will be trucked in from the Amazonas (Shushufindi) refinery in Sucumbios province and purchased at a subsidised price. Cheap oil can be used to run the plants but it may be needed more to run the country's infrastructure demand for building materials such as a cement.
Canada: The Lafarge Brookfield cement plant in Nova Scotia, Canada, is celebrating its 50th anniversary of operations in 2015.
In 1957, the Canada Cement Company sent a team of engineers and land surveyors to Nova Scotia, Canada to search for a limestone deposit suitable for the construction of a cement plant. Out of 27 potential sites, Brookfield received the nod of approval. The company proceeded over the next few years to build a US$25m state-of-the-art cement plant. Production began on 29 September 1965.
While the raw materials mixture and fuels used for production have changed in the past five decades, the overall method of manufacturing remains the same, according to Plant Manager ScarthMacDonnell. "In some ways the plant has not changed a bit since it opened up. The fundamental process of cement manufacturing has not changed. The products we make, the fuels we use and the environmental footprint has completely transformed. So the cements we make today make 25% less carbon dioxide then they did when the plant started up," said MacDonnell. He added that more than 20% of the energy used for cement production comes from recycled materials.
More than 1000 individuals have earned a living working at Lafarge over the past 50 years while continuously producing cement that has been used in countless projects, big and small. By far the biggest showcase project the plant has been involved with was providing all the cement used in the construction of the Confederation Bridge, between New Brunswick and Prince Edward Island. "It was a very special recipe," said MacDonnell, of the 250,000t of cement used for the project. "It was a specialised, high-performance cement that was required for the job and it was a different product than was normally made."
Despite 50 years of mining, the reserves in the limestone deposit discovered back in 1957 are far from being depleted. "We've got well over 25 years of stone still on the property," said MacDonnell. "And there's more there if we want to go get it."