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AUCBM AUCBM exceptional smoothness of operation that has come to be Trade Trade expected from MVR mills. The mill, driven by the innovative www.globalcement .com Transshipment MultiDrive® with fixed speed and a drive power of 7200kW, Motors Motors grinds 320t/hr of OPC to a fineness of 3600 Blaine. Six 2018 in cement 2018 in cement Exclusive Official Magazine for grinding rollers and four decentrally arranged drive units, Top 100 Report Top Global Cement Conferences: Global CemFuels, News each consisting of motor, gearbox and coupling, guarantee Global Slag, Global CemTrans, Global GypSupply the highest reliability and availability. But Pfeiffer technology FutureCem, Global Boards, Global Well Cem, is not only used for cement grinding; the cement producer in Global CemProcess MAGAZINE Touk Meas also relies on the Pfeiffer quality technology for global cement www.gebr-pfeiffer.com the grinding of coal and raw material. Gebr. Pfeiffer SE: Barbarossastr. 50-54 A concept that works. Editorial Director 67655 Kaiserslautern, Germany Dr Robert McCaffrey Have we aroused your interest? Tel.: +49 631 4161 0 [email protected] Contact our specialists. (+44) (0) 1372 840951 Email: [email protected]

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Web Editor David Perilli Welcome to the December 2018 issue of Global Cement Magazine - the world’s [email protected] most widely-read cement magazine! As has become traditional, this final issue (+44) (0) 1372 840952 of the year looks back at the events of 2018 and ahead towards the next 12 months. On Page 24 David Perilli reviews the big cement trends and news stories Commercial Director of 2018, including: The rising pace of mergers and acquisitions in Brazil; New Paul Brown cement associations; The increasing influence of Chinese plant manufacturers; [email protected] Mobile: (+44) (0) 7767 475998 LafargeHolcim’s Syrian hangover; Whether HeidelbergCement has indigestion after swallowing Italcementi and; the US-China trade situation. Also on this final topic, authors from SAP offer their take on technological solutions from the ‘tariff Business Development Executive tiff’ and how cement producers can best insulate themselves from the potential fall- Sören Rothfahl [email protected] out in 2019 - See Page 10. Also a seasonal favourite at this time of the year is our Mobile: (+44) (0) 7850 669169 analysis of the largest cement producing countries and companies. Now in its fifth year, the analysis draws on the beta-version of the Global Cement Directory 2019, which will be released in print and PDF forms in early 2019. Company manager Sally Hope Elsewhere in this issue, we have interviews with motor manufacturer Menzel [email protected] Elektromotoren (Page 30) and Siloadmaxx, which aims to ‘evolve’ standard 20ft containers into reusable vessels for bulk solids (Page 36). There are also Subscriptions contributions on centrifugal fan optimisation (Page 20), East Africa (Page 54) and Amanda Crow a plant visit report from COMACSA’s white cement plant in Lima, Peru (Page 46). [email protected] We also carry the first report from the 23rd Arab-International Cement Conference & Exhibition, which took place in Amman, Jordan on 20-22 November 2018. Office administration Finally, if you have not yet submitted your entry for the Global Cement Photography Jane Coley [email protected] Competition 2019, there is still time to do so. Entries close on Friday 7 December 2018 and the winners will be presented in the January The views expressed in feature articles are those of the named 2019 issue of Global Cement Magazine. Until then, we author or authors. For full details on article submission, please see: www.GlobalCement.com wish you all the best for the Christmas and New Year break. See you in 2019! ISSN: 1753-6812 Peter Edwards Published by Pro Global Media Ltd Editor Ground Floor, Sollis House, 20 Hook Road, Epsom, Surrey, UK KT19 8TR Tel: +44 (0)1372 743837 (switchboard) Fax: +44 (0)1372 743838 Cement Printed on Forest Stewardship Council Industry (FSC®) certified papers by Pensord, Suppliers’ a company with ISO 14001:2004 Forum environmental certification.

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FutureCem 2019 fullpage.indd 1 26/11/2018 16:14 GLOBAL CEMENT MAGAZINE: CONTENTS Subscribe Ad Index

Features 10 Technological answers to the tariff tiff How a new generation of digital solutions can help to insulate cement manufacturers from the impact of an escalating trade confrontation...

14 Top cement producers and countries Global Cement’s annual run-down of the biggest companies and countries in the global cement sector, plus, for the first time, production forecasts for 2019...

20 Understanding centrifugal fans for maximum dedusting performance IAC’s Luis Castano shows how correct ventilation system configuration can help centrifugal fan performance.

24 2018 in cement A look back at the major cement industry news stories of the year...

30 In discussion: Mathis Menzel, Menzel Elektromotoren GmbH

The CEO of Menzel Elektromotoren opens up about the company’s history, present day activities and trends in the supply of motors to the cement sector.

36 In discussion: Christian Hanses, Siloadmaxx

Global Cement finds out about Siloadmaxx’s progress with its vision to turn standard containers into reusable vessels for bulk solids.

38 Products and contracts Gebr. Pfeiffer to supply vertical roller mill to Nepal; Cemex Go reaches 20,000 users; Wind plant for Paulding.

Europe

39 News - Breedon rebrands Lagan; New plant suggested for Montenegro; Weather and fuel issues hit HeidelbergCement’s earnings.

42 Review: SOLIDS and Recycling-Technik 2018 An overview of SOLIDS and Recycling-Technik events, which took place in Dortmund, Germany in November 2018.

6 Global Cement Magazine December 2018 GLOBAL CEMENT MAGAZINE: CONTENTS

Americas

4 3 News - Growth in core markets for Cemex; Loma Negra’s revenue up; New line for Cruz Azul.

4 6 COMACSA: Success from diversity in Peru Global Cement visits the COMACSA white cement plant in Lima, Peru.

Asia

50 News - LafargeHolcim sells Holcim Indonesia; New Uzbek plant mooted; Eagle soars in Philippines.

Middle East & Africa

52 News - ARM advisors court Dangote; Ivory Coast capacity hits 10Mt/yr; CMAG welcomes Ghana’s first building code.

54 Cement in East Africa Our regional focus heads to Burundi, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, South Sudan, Sudan, Tanzania and Uganda.

60 Review: 23rd Arab-International Cement Conference & Exhibition

Robert McCaffrey reviews the event that took place in Amman, Jordan on 20-22 November 2018.

Regulars & Comment 63 Global Cement prices Cement prices from around the world. Subscribers get additional information.

64 Subscription form

65 The Last Word - Asbestos: What other building material nasties are lurking out there?

66 Advertiser Index & Forthcoming issue features

Global Cement Magazine December 2018 7 GLOBAL CEMENT 14-15 MARCH 2019 BRUSSELS

Contents Subscribe Ad Index 2nd 13th Global CemFuels Conference gl bal & Exhibition 20-21 February 2019, Amsterdam, Netherlands cemtrans www.CemFuels.com CONFERENCE & EXHIBITION 2nd Global CemTrans Conference & Exhibition 14-15 March 2019, Brussels, Belgium Cement & Clinker www.Cem-Trans.com

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BAUMA 2019 8-14 April 2019, Munich, Germany www.bauma.de

POWTECH 2019 9-11 April 2019, Nuremburg, Germany www.powtech.de

61st IEEE-IAS/PCA Cement Industry Technical Conference 28 April - 2 May 2019, St Louis, USA www.cementconference.org

2nd Global FutureCem Conference & Exhibition 22-23 May 2019, Brussels, Belgium www.FutureCem.com

GIFA 2019 25-29 June 2019, Düsseldorf, Germany www.gifa.com

RWM 2019 11-12 September 2019, Birmingham, UK www.rwmexhibition.com

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Folkert Haag & Ursula Grün, SAP

Technological answers to the tariff tiff

How a new generation of digital solutions can help to insulate cement manufacturers from the impact of an escalating trade confrontation...

s the international sparring around trade tariffs of tariffs on China, including a 10% tariff on cement Acontinues to escalate, so too does the sense of and other mineral products, the business risk they urgency within commodity-focused businesses like face heightens. What if tariffs and other factors lead cement. They need to find ways to insulate them- to a global slowdown in construction activity that selves from the risks to which the politically-charged curbs demand for cement? What if import materials trade confrontation between the US and China ex- from a certain country suddenly become prohibi- poses them. Ed Sullivan, senior vice president and tively expensive, altering supply-side dynamics on a chief economist for the US-based Portland Cement regional or global scale? Association (PCA), asserted in spring 2018 in a writ- Those risks are real and, as intently as the indus- ten analysis of the potential impact of a tariff war on try may lobby policymakers in Washington try to global cement consumption: “There is no longer the get their voice heard, cement manufacturers may be possibility of avoiding a trade war – we are in one.” best served focusing on the stuff they can control: However you choose to categorise the ongoing Optimising their own business practices, processes trade confrontation, it has captured the attention and systems. The latest generation of Industry 4.0 of the cement industry - and justifiably so. The digital tools gives them the means to do just that, PCA analysis looks at three tariff scenarios, each so they become nimbler and more responsive to of which, it projects, would curb US demand for changing market dynamics as may be presented by cement. In what it sees as the worst-case scenario, the ongoing ‘tariff tiff.’ an all-out global trade war, US cement consumption By using intelligent digital tools and approaches would decrease by nearly 11Mt/yr compared to its - machine learning, predictive analytics informed spring baseline forecast. That’s more than 10% of the by smart Internet of Things sensors, and others 102.1Mt that the PCA projects will be consumed in the US in 2019. Cement manufacturers, unlike their counterparts In the worst case scenario in the steel and aluminium industries, appeared, at trade barriers could reduce US least initially, to have dodged a direct hit during the tariff crossfire. But with each new volley, such as the cement consumption by 11Mt, current US Administration imposing a fresh round or more than 10%, in 2019...

Right: The consequences of a prolonged ‘stalemate’ in the US-China trade ‘chess game’ could seriously affect cement producers around the world.

10 Global Cement Magazine December 2018 GLOBAL CEMENT: TECHNOLOGY & TRADE

- companies can gain a consolidated view and understanding of their processes and of cost structures across their enterprise, including materials, production, supply chain and delivery. This means that they can quickly analyse various scenarios and move decisively to adjust procurement, production and asset-deployment strategies as market conditions dictate. This agility may also help them to win new business and develop new ways to drive revenue, even in an uncertain macroeconomic and political environment. Below we present a few areas of the cement manufacturing process that are ripe for optimisation, and some of the digital approaches that can better position producers and plants to withstand the fallout from a prolonged tariff confrontation.

Sourcing raw materials and other supply chain functions determine how to maximise their manufacturing Above: Digital platforms offer Tariffs add uncertainty and, in many cases, cost assets. Decisions about whether, where and when to a way to circumvent trade barriers and enhance confidence along the entire supply chain, from procuring raw shutter (or divest) certain plants or plant equipment regarding future supply and material to production and delivery. By becoming a can be made quickly based on real-time what-if demand scenarios. more intelligent enterprise, manufacturers can miti- scenarios as trade policies change. Companies can gate that uncertainty, and alleviate some of the costs analyse if it makes sense to shift production to other associated with it. countries to better serve local markets. For example, The new breed of digital tools give manufactur- they can determine the impact on revenue or costs if ers a detailed and integrated view into material they produce in one country and export with tariffs availability, which enables them to see how various versus shifting production to the target market and tariff-based cost and supply scenarios would play avoiding the tariffs. out virtually. They can then make their sourcing The same types of digital tools can help produc- decisions accordingly, on the fly, as trade policies ers to be smarter about sourcing spare parts. If tariff and market dynamics change. Armed with richer policies are enacted that impact key equipment and real-time supply chain information, companies can parts manufactured in certain countries, an intel- identify and pivot to alternative sources for raw ma- ligent system that is connected to various points of terials to avoid tariff-prone sources. Not only does the parts supply network can show manufacturers this help maintain margins, it helps manufacturers alternative sources for those parts. Or, instead of to keep to the contractual obligations they have to importing spare parts from a heavily tariffed OEM their customers. source, a manufacturer could analyse the econom- If the trade confrontation were to escalate into ics of a scenario in which they 3D-print equipment an all-out embargo, sourcing raw materials for the parts locally. Going along this route has the potential production of cement and concrete would likely to keep spare parts costs down, while also reducing become an even greater challenge. Having supply inventory costs and decreasing costs and tariffs re- chain insight at your fingertips, including the ability lated to bringing in spare parts from other countries. to identify potential sources of supply, plus informa- Predictive tools also can help to minimise equip- tion about quality, reliability and if or how a supplier ment maintenance costs and maximise equipment fits into your company’s procurement requirements, uptime, further optimising the manufacturing op- provides a huge advantage. Additionally, a digital eration. As automated as most cement production technology such as blockchain could be an invalu- operations are today, there is opportunity for manu- able tool for complying with a potential embargo, facturers to ‘cluster’ the operations of multiple plants enabling manufacturers to trace the origins of raw within a region, using a centralised digital platform materials via a distributed, verifiable and trusted to remotely monitor these sites as a unit, in real time, blockchain network. then, with analytics and machine learning tools, to act upon that real-time insight to maximise the ef- Asset management ficiency of specific tasks across the cluster. In a worst-case scenario, as the PCA suggests, an Here’s where a relatively new manufacturing ap- all-out trade war could have a stifling effect on con- proach known as ‘digital twin’ can provide cement struction activity. Using robust analytics tools fed by manufacturers with yet another means to optimise. data collected from sensors and other inputs across A digital twin is a dynamic, virtual representation of their production operations, manufacturers can a real-world product or asset, developed using data

Global Cement Magazine December 2018 11 GLOBAL CEMENT: TECHNOLOGY & TRADE

they can do much more than prepare a cement manufacturer for a potential escalation of the tariff confrontation. For one, they can put a company in prime position to explore emerging opportunities in the circular economy, where materials are continu- Above: A drone flies through generated by sensors on the actual, ‘physical’ twin. ously looped back into the value chain for re-use. The a quarry in Karelia, Russia. A digital twin can provide visibility into an entire more digitally intelligent a manufacturing enterprise Credit: Aleksandr Borovikov / Shutterstock.com. production operation in real time. By analysing the is, the better positioned it will be to move away from continuous flow of data supplied by sensor-equipped the traditional linear ‘take-make-dispose’ model, assets, not only can a manufacturer see how those to a circular model incorporating the closed-loop, assets are performing, they can pinpoint potential zero-waste processes that are the hallmark of the issues with product quality before they become prob- circular economy. With trade policies injecting so lematic. A digital twin can also serve as a platform much uncertainty into global commodity markets, for sharing information among the network of com- companies can leverage their digital connectedness panies involved in running and maintaining certain to open channels for obtaining alternative materials, assets, including cement manufacturers, OEMs and for selling secondary materials from the manufac- service providers, giving each party insight into the turing process back into the value chain as recycled status of the asset along with information on spare materials and for exploring new business models. parts delivery, service and other actions. Such an approach is already gaining traction in an industry with close ties to cement manufactur- Human resource management ing: concrete. Canada’s CarbonCure has pioneered Amid the fluid, uncertain tariff situation, digital a process by which carbon dioxide is injected into solutions can also better equip cement manufactur- ready mix concrete and concrete masonry products ers to manage their employees. In situations where a and chemically converted into a mineral. The gas manufacturer is curtailing production at some sites is sourced from industrial emitters, purified and and ramping it up at others, the ability to quickly delivered to the concrete plant, where it is stored respond to fluctuating workforce deployment needs in pressurised vessels until injection. Once injected can make a company significantly more agile. into the wet concrete mix, it reacts with calcium ions from cement to form a nano-sized calcium carbon- Yard management ate mineral that becomes permanently embedded in When tied to a digital enterprise resource plan- the concrete, with no effect on fresh properties or on ning (ERP) platform, camera- and sensor-equipped hardened properties. autonomous vehicles (drones) can be used in the The Global CO2 Initiative (GCI) estimates a yard to monitor truck location/status/movement in potential US$400bn market opportunity for CO2 real time. utilisation products in the concrete sector alone, according to CarbonCure. Even a small slice of that is Beyond trade issues more than enough to ease the financial pain from an As broadly applicable and versatile as digital solu- all-out tariff war. tions like these are for a manufacturing enterprise,

Folkert Haag is global lead Ursula Grün is for building materials indus- part of the solu- tries and part of the solution tion management management team within team within the the Mill Products and Min- Mill Products and ing industry business unit at Mining industry SAP. He works closely with business unit at companies across the globe SAP. Her focus on innovation and digital is understand- transformation strategies, ing current and with a focus on connected future customer supply chains, (industrial) requirements and Internet of Things, industry 4.0, digital construc- defining solutions for the cement industry, so cus- tion, building information management (BIM) tomers in the cement industry can successfully run and digital customer experience. their business and innovate.

12 Global Cement Magazine December 2018 ADV-Plastretard-2018-297-210.pdf 1 27/06/2018 13:10

CMY

K GLOBAL CEMENT: TRENDS Contents Subscribe Ad Index

Peter Edwards, Global Cement Magazine

Top cement countries and producers

Global Cement presents its annual numerical analysis of our sector ahead of the print release of the Global Cement Directory 2019. The top 10 countries and producers are once again listed along with, for the first time, cement production forecasts for major markets.

here were 166 countries and territories in which Tcement was produced in 2018, either in integrated cement plants, via grinding imported clinker, Bottom - Table 1: The Top 10 or both, according to the Beta version of the Global countries by installed cement Cement Directory 2019. There were 145 countries capacity at the close of 2018. Source: Beta version of Global with integrated capacity and 107 that had grinding Cement Directory 2019. plants. 165 countries (excluding China, for which * China was by far the largest data is unreliable) share a total integrated cement cement producer by installed capacity of 2.84Bnt/yr. There were 20 countries and capacity and production in territories that only produced cement by grinding 2018. However, the sheer imported clinker and 58 that only had integrated scale of the industry and the apparent unreliability of cement plants. Chinese statistics means that the true capacity is likely to be Cement capacity by country No Country Production (Mt) far higher. The United States The 10 countries with the most installed cement Geological Survey (USGS) 2017 2018 e 2019 f capacity are shown in Table 1. Figure 1 shows the ca- gives a capacity of 2.5Bnt/yr 1 China 2316 2423 2527 for China and some sources pacities of all countries. The totals are of integrated place Chinese cement produc- and grinding cement production capacity active at 2 India 280 296 313 tion capacity as high the end of November 2018. Plants under construc- 3 USA 85.9 86.2 86.5 as 3.5Bnt/yr. tion, currently being commissioned or planned are 4 Turkey 80.5 80.7 80.7 not included. 5 Vietnam 78.0 82.9 88.1 Right - Table 2: Top 10 Cement production by country 6 Indonesia 69.0 70.2 71.4 cement producing countries in 2017, with estimates for The Top 10 cement producing countries in 2017 are 7 Saudi Arabia 63.0 63.1 63.3 2018 and forecasts for 2019. shown in Table 5 (Page . The data is from a variety of 8 South Korea 62.6 61.5 60.5 Reference 1: https://www. sources, and is the total tonnage of cement produced imf.org/en/Publications/ 9 Russia 58.0 58.8 59.7 SPROLLs/world-economic- in each country between 1 January to 31 December 10 Japan 55.2 55.3 55.4 outlook-databases. 2017 (or closest equivalent). Using GDP data,1 the

No Country Total Integrated Total Grinding Total Capacity (Mt/yr) Number of plants Capacity (Mt/yr) Number of plants Capacity (Mt/yr) Number of plants 1 China* 1484 832 1455 805 29.0 57 2 India 437 261 323 161 114 100 3 Vietnam 148 74 135 60 12.5 14 4 USA 126 107 120 96 6.2 11 5 Russia 113 72 110 68 3.2 4 6 Brazil 101 91 88.4 71 12.3 20 7 Turkey 98.9 74 90.9 54 8.0 20 8 Indonesia 97.9 29 93.4 21 4.5 8 9 Iran 87.8 74 85.7 70 2.1 4 10 Saudi Arabia 75.0 21 75.0 21 - -

14 Global Cement Magazine December 2018 Figure 1: Cement producing countries, colour-coded by cement capacity (Mt).

>2500 >200 100-200 50-100 25-50 10-25 5-10 2.5-5 1-2.5 <1 None

MIDDLE EAST S Arabia 75.0 Jordan 10.2 UAE 40.6 Oman 8.8 Iraq 30.5 Israel 7.4 Qatar 14.5 Kuwait 7.0 Syria 13.2 Lebanon 6.0 GLOBAL CEMENT:

Global Global AFRICA Yemen 10.6 Bahrain 0.8 Egypt 73.5 Togo 4.2 EUROPE Nigeria 58.9 DRC 3.3 Cement Algeria 30.8 Rep. Congo 2.8 Russia 113.8 Switzerland 4.3 Morocco 27.8 Mauritania 2.4 THE AMERICAS Turkey 98.9 Ireland 3.8 South Africa 20.0 Benin 2.3 Spain 56.1 Sweden 3.4 Tunisia 14.8 Mali 1.5 Magazine December 2018 15 USA 125.8 Honduras 3.3 Italy 46.3 Denmark 3.0 Ethiopia 14.0 Guinea* 1.1 ASIA Brazil 100.7 Costa Rica 3.2 Germany 36.7 Slovakia 2.8 Tanzania 10.0 Namibia 1.0 Mexico 58.0 Panama 2.3 France 29.1 Croatia 2.7 Angola 9.6 Malawi 0.8 China >2500 Australia 14.8 Cambodia 4.3 Colombia 22.0 Puerto Rico 2.0 Poland 20.3 Cyprus (Both) 2.7 Ghana 8.6 Liberia 0.8 India 437 Kyrgyzstan 14.1 Tajikistan 3.3 Argentina 20.3 Uruguay 1.6 Ukraine 16.2 Serbia 2.7 Kenya 8.5 Chad 0.7 Vietnam 147.6 Kazakhstan 11.6 Armenia 2.1 Canada 18.3 Paraguay 1.4 UK 15.3 Finland 2.5 Cameroon 8.3 Gabon 0.7 Indonesia 97.9 Uzbekistan 11.1 Bhutan 2.0 Venezuela 15.4 Nicaragua 1.3 Greece 14.4 Luxemburg 2.4 Senegal 8.0 Rwanda 0.7 Iran 87.8 Laos 10.1 New Zealand 0.9 Chile 7.0 Trinidad & Tob 1.2 Romania 13.8 Latvia 2.0 Libya 7.7 Niger 0.5 South Korea 73.1 North Korea 8.0 Brunei 0.6 TRENDS Dom. Rep. 5.8 Haiti 0.6 Portugal 13.5 Moldova 2.0 Sudan 7.1 Botswana 0.4 Pakistan 66.8 Turkmenistan 8.0 Macau 0.6 Bolivia 5.1 Guyana 0.5 Belgium 10.5 Norway 1.8 Ivory Coast 6.9 Eritrea 0.4 Japan 58.5 Nepal 6.1 Réunion 0.6 Cuba 5.1 Guadelope 0.4 Hungary 5.4 Bos. & Herz. 1.6 Burkina Faso 6.8 Madagascar 0.3 Thailand 57.8 Myanmar 5.6 Singapore 0.3 Ecuador 4.8 Martinique 0.4 Austria 5.1 Lithuania 1.5 Mozambique 6.0 Lesotho 0.2 Philippines 41.8 Azerbaijan 5.0 N Caledonia 0.2 Guatemala 3.7 Barbados 0.3 Czechia 5.1 Slovenia 1.5 Zimbabwe 4.8 Djibouti 0.2 Malaysia 30 Sri Lanka 4.6 PN Guinea 0.2 Jamaica 3.5 French Guiana 0.1 Bulgaria 4.5 Macedonia 1.4 Uganda 4.8 Burundi 0.1 Taiwan 29.6 Georgia 4.5 Afghanistan 0.1 El Salvador 3.3 Suriname 0.1 Albania 4.3 Estonia 0.8 Zambia 4.2 Bangladesh 18.2 Mongolia 4.4 Fiji 0.1 GLOBAL CEMENT: TRENDS

increase in cement production in each year between (e), and forecasts (f) for 2019. As well as the full 2013 and 2017 is compared to the growth in GDP methodology of this calculation, the Global Cement for that year over the data interval. A correlation Directory 2019 will contain forecasts for cement coefficient has been calculated from the data. This production in 2020 and 2021, as well as the same has been used in conjunction with the IMF’s GDP for 47 other countries shown in Figure 2, a series of forecasts for that country of production for 2018 maps that show forecast production changes from

2013 USA - 77Mt to 87Mt, Gain 10Mt 87Mt, USA - 77Mt to Iran - 72Mt to54Mt, Loss 18Mt Loss Iran - 72Mt to54Mt, China - 2240Mt to 2747Mt, Gain 507Mt China 2747Mt, - 2240Mt to Vietnam - 58Mt to 99Mt, Gain 45Mt 99Mt, - 58Mt to Vietnam Right - Figure 2: Cement Gain 103Mt 351Mt, India - 248Mt to Egypt - 58Mt to 48Mt, Loss 10Mt Loss 48Mt, - 58Mt to Egypt

producing countries, Gain 11Mt 58Mt, - 47Mt to S Korea colour-coded by cement production (Mt) in 2013, 2017 Gain 18Mt 74Mt, Indonesia 56Mt to and 2021 (forecast) . >2000 >200 75-200 13Mt Loss 57Mt, Brazil - 70Mt to 50-75 25-50 10-25 5-10 2.5-5 1-2.5 <1 Insufficient data 2017 Countries with increases and decreases in production of 10Mt/yr or more between 2013 and 2021 are highlighted.

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Global Cement Magazine 12_18.indd 1 03.08.18 14:22 GLOBAL CEMENT: TRENDS

No Producer Capacity (Mt/yr) No Producer Capacity (Mt/yr) TOTAL Int. Gri. 21 Siam City Cement 19.8 1 LafargeHolcim 367.0 314.2 52.8 22 Cementos Argos 19.6 2 HeidelbergCement 187.3 164.6 22.7 23 Aşkale Çimento 18.9 3 Cemex 91.0 85.0 6.0 24 Lucky Cement 18.1 4 CRH 74.1 64.2 9.9 25 Limak Holding 17.2 Above - Table 3: Top 20 cement producers (excluding 5 UltraTech Cement 70.8 50.8 20.0 26 Ramco Cement 17.1 China) at the end of 2018. 6 Votorantim 63.6 55.3 8.3 27 Chettinad Cement 16.8 Source: Beta version of Global Cement Directory 2019. 7 InterCement 52.5 43.6 8.9 28 The India Cements 16.7 8 Dangote Cement 51.3 46.3 5.0 29 Southern Province Cement 15.7 9 Buzzi Unicem 50.5 47.5 3.0 30 BUA Group 15.0 10 VICEM 42.1 38.6 3.5 31 Ssangyong Cement 15.0 11 Eurocement 40.2 40.2 - 32 Cementir Holding 13.5 12 Vicat Group 36.9 35.4 1.5 33 TPI Polene 13.0 13 Semen Indonesia 29.7 28.4 1.3 34 JSW Group 12.8 14 Taiheiyo Cement 29.4 29.2 0.2 35 JK Cement Ltd 12.4 15 SCG 27.8 27.8 - 36 OYAK Group 11.8 16 Shree Cement 25.0 12.8 12.2 37 Cementos Portland Valderrivas 11.1 17 Titan Cement 23.9 23.3 0.6 38 Sampyo Cement Corp 11.0 18 Dalmia Bharat 23.9 17.4 6.5 39 Sumitomo Osaka Cement 10.9 19 Asia Cement 20.3 18.0 2.3 40 Arabian Cement 10.8 20 Fars and Khuzestan 20.3 20.3 - 41 Eagle Materials 10.7 42 Taiwan Cement 10.6 43 Vissai Group 10.5 Right - Table 4: Top 21-50 2013 (actual), 2017 (actual) and 2021 (forecast). Re- 44 Colacem 10.3 cement producers (excluding liable information for countries shown in grey was China) at the close of 2018. 45 Mitsubishi 10.3 not available at the time of publication. Source: Beta version of Global 46 Century Cement 10.0 Cement Directory 2019. Cement-producing plants 47 FNC Venezuela 9.8 There are 2032 active cement plants listed outside 48 Ghadir Investment 9.7 of China in the Beta version of the Global Cement 49 SungShin Cement 9.7 Directory 2019, with a further 832 in China. Of those outside of China, 1526 were integrated facilities and 50 PPC 9.3 506 were grinding plants.

Cement-producing companies Of these, 607 produced clinker, of which 195 also The Beta version of the Global Cement Direc- operated grinding plants. There were 87 further tory 2019 lists 691 companies that produced companies that only ground clinker made by cement at the end of 2018 (outside of China), other manufacturers. either from integrated plants or grinding plants. For comparison, the Beta version of the Global Cement Directory 2018 listed 671 companies that produced cement at the end of 2017 (outside of China), either from integrated plants or grinding plants. Of these, 574 produced clinker and 97 produced cement from clinker obtained from other cement producers. The Top 20 non-Chinese cement producers, ranked by capacity, are shown in Table 3. The producers ranked 21 to 50 are shown in order with their total capacities in Table 4. Producers 51-200 are shown in Table 5, without their capacities. More information will be available in the print version of the Global Cement Directory 2019 and other future publications from Global Cement.

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No Producer No Producer No Producer No Producer 51 SECIL 99 Semen Baturaja 146 Northern Cement State Co 193 Vassiliko Cement 52 ASEC 100 Schwenk Zement 147 Cement Manuf Co 194 Northern Cement 53 Cim Metal Group 101 Aditya Birla Group 148 ARM Cement 195 WACEM 54 Ciments d’Atlas 102 Chinfon Cement 149 CYCNA 196 Tokyo Cement (Sri Lanka) 55 Cementos Molins 103 Al Khalij Cement Company 150 Messebo Cement 197 Cementra 56 Qatar National Cement Co 104 Long Son Cement 151 Northern Region Cement 198 Cherat Cement 57 Bestway Cement 105 Cementos Pacasmayo 152 Rain Cement 199 JSC Sebryakovcement 58 Binani Cement 106 Raysut Cement 153 Saudi Cement 200 Phu Son Cement 59 CIDCO 107 Tokuyama 154 Sree Jayajothi Cements 201 Carthage Cement 60 National Cement 108 Martin Marietta 155 Tabuk Cement Company 202 Korea Cement 61 Hanil Cement 109 Cong Thanh Cement 156 Vinaconin 203 TCB 62 Orient Cement 110 Nirma 157 South Valley Cement 204 Thanh Thang Cement 63 Nesher Cement 111 Hoa Phat Cement 158 Cementos Progreso 205 Turkmencement 64 North Korean State Cos 112 Afrisam 159 Qizilqumcement 206 Tong Yang Cement 65 Novoroscement 113 AS Çimento 160 w+p Zement 207 Huaxin Cement 66 Reliance Cement 114 Hoang Mai Cement JSC 161 Jaiprakash Associates 208 Cementi Barbetti SpA 67 Hyundai Cement 115 SA Tudela Veguín 162 Bursa Çimento Fabrikası 209 Aso Cement 69 Tamin Cement 116 Oman Cement 163 CIMA 210 Breedon 70 Çimsa Cimento 117 Qassim Cement 164 Cim’ de la Med’ Gafsa 211 Cementi Giovanni Rossi 71 Kesoram Industries 118 Semen Bosowa 165 Ciments du Sahel 212 Ciment Sud 72 Tehran Cement 119 DG Khan Cement 166 Murli Industries 213 Gornozavodskcement 73 JK Lakshmi Cement 120 Sanghi 167 Shun Shing Cement 214 Kuwait Portland Cement 74 Cimento Nassau 121 Vinaconex 168 Ciment de Mauritanie 215 McInnis Cement 75 Penna Cement 122 KÇS Çimento 169 ERCE 216 Saman Gharb 76 Ube Industries 123 Luanda Cemento 170 Fujairah Cement 217 Bashundra Industrial 77 Cimento Nassau 124 SCAEK 171 Ecocem 218 Cemento Melón 78 Grupo Cimentos Chihuahua 125 Asamer 172 Boral Cement 219 Denki Kagaku Kogyo 79 Wonder Cement 126 Eren Holdings 173 Invecem 220 Gharibwal Cement 80 Arkan Group 127 Kuwait Cement Company 174 Luks Cement 221 Pakistan Cement 81 Thai Group 128 Saudi White Cement 175 Tan Quang Cement 222 Calme Cementi 82 Birla Corporation 129 City Cement (Medina) 176 Cementos Moctezuma 223 Cimento Apodi 83 Najran Cement 130 Maple Leaf Cement 177 Askari Cement 224 Al Rajhi Cement 84 Yamama Saudi Cement 131 Savannah Diamond Cement 178 Gulf Cement 225 Al Safwa Cement 85 Prism Cement 132 Steppe Cement 179 Kohat Cement 226 Batıçim Batı Anadolu 86 Mass Group 133 Basel Cement 180 Seament Albania 227 Cemena Holding Co 87 Southern Cement Company 134 Adelaide Brighton Cement 181 Güris Insaat ve Mühendislik 228 Cementos del Norte 88 Yanbu Cement 135 Cementos Bío Bío 182 Nova Cimangola 229 Cementownia Warta 89 Yemen Corp of Cement 136 Achinsky Glinoziemskij 183 Army Welfare Trust 230 Dong Lam Cement 90 PT Cemindo Gemilang 137 Al Jouf Cement 184 Iraqi Cement State Co 91 Cooperativa La Cruz Azul 138 Eastern Province Cement 185 KCP Above - Table 5: Top 50-230 cement 92 Nuh Çimento 139 Misr Beni Suef Cement 186 South Ural Mining producers (excluding China) at the end of 2018. Source: Beta version of Global 93 YTL Cement 140 Mordovcement 187 Cemento Tupi Cement Directory 2019. 94 Emami Cement 141 Cemento Polpaico 188 Anhui Conch 95 UCG 142 Fauji Cement 189 Ciplan 96 Elementia 143 Spasskcement 190 Derba Midroc Cement 97 Sibirsky Cement 144 Ahlia Cement 191 Lao Cement 98 Dewan Cement 145 Al-Rawi Group 192 Ricardo Brennand

Global Cement Magazine December 2018 19 GLOBAL CEMENT: FANS Contents Subscribe Ad Index

Luis J Castano, IAC

Understanding centrifugal fans for maximum dedusting performance

Fans are the unruly teenagers of the cement plant. They often do what they shouldn’t and don’t do what they should. If we can understand why they behave as they do, they can be helped to fit better into their surroundings and maximise their output.

here are two types of fans: Axial and centrifugal. think, as many mistakenly liken centrifugal fans to TThey behave differently due to their main dif- axial ones. If you run a centrifugal fan backwards, it ference: Axial fans are best used for high volumes will work, but it will do so at a really low efficiency. of gas at low pressures, for example in warehouse Such cases are embarassing for everyone involved. ventilation systems. Centrifugal fans are best suited Users should not need an engineer to visit to find out to lower volumes with higher pressures. They have a that the fan wheel is rotating backwards. much better ability to ‘suck,’ which is important in a wide range of industrial applications, such as com- Types of centrifugal fans monly found in dust filtration systems. We can split centrifugal fans down into three catego- ries (See Figure 2). Radial fans have straight blades that radiate from the centre of the fan wheel. They Above: Luis J Castano is the Housing are the most common type of centrifugal fan and are Applications Engineering the most reliable in dusty airflows. They are slightly Manager at IAC, a ventilation Gas less efficient thanforward curved fans, which can systems expert that covers a Fan Wheel Out wide range of industries. The be used for higher volumes, and backward curved company also manufactures fans, which can be used for higher pressures. Each and provides baghouses has advantages and disadvantages that make them and pneumatic conveying more or less suitable for a particular application. systems, as well as a wide Gas In range of site services, to a While the client is rarely in the best position to range of sectors. specify the type of fan, it is nevertheless very helpful for them to be aware that each type has its strengths and weaknesses. Above right - Figure 1: Centrifugal fan schematic. Centrifugal fan basics System curves Centrifugal fans are fairly simple (See Figure 1). System curves and fan curves help to define the nec- There is a wheel with fitted blades that spins inside essary operating conditions in which a fan will be a housing. Air is drawn tangentially through the efficient. Figure 3 shows a typical ventilation system, inlet and is expelled through the exhaust. However as used in a dedusting system. Air is drawn from simple this may be, it seems that even in the cement the vent point through some duct work, to the filter sector, this principle is poorly understood or even bags, into the clean side and out of the exhaust via ignored. the fan. Speaking from experience, there are many fans that are poorly configured. In Forward curved Backward curved Radial an extreme case, I actually took a three hour flight to a client to trou- Right - Figure 2: Different types of centrifugal fan. bleshoot a fan system, only to discover that the fan was working in reverse. This happens more than you would

20 Global Cement Magazine December 2018 GLOBAL CEMENT: FANS

2.5mbar Outlet duct Fan

Motor Static

Inlet duct Pressure

10mbar Baghouse 2.5mbar Outlet duct / Stack 15mbar Left - Figure 4: System curve Baghouse

15mbar for the ventilation system Hood 2.5mbar Hopper shown in Figure 3.

Air-lock or Inlet duct

tipping valve 10mbar 2.5mbar Hood Above - Figure 3: Ventilation system schematic.. 10,000m3/hr Flow

If we imagine the system with no airflow, there is no resistance to that airflow. This is the origin in the system curve shown in Figure 4. If we start to speed Unstable region up the airflow through the system, the pressure in- System curve creases. The faster the gas moves, the more resistance there is to the flow. The hood may contribute 2.5mbar Operating point 3 of resistance at 10,000m /hr, the ducting may have a 30mbar Left - Figure 5: System curve, Power curve resistance of 10mbar. The dust collector will have a overlayed with fan curve and resistance of around 15mbar, more if it is under a power curve for the ventilation system shown in Figure heavy dust load. On the clean side there will be more 3. If resistance is added to the resistance from the outlet and stack, perhaps 3mbar. system, the system curve will Fan curve In this example the total system resistance is 30mbar. become steeper, pushing the fan into the unstable region.

It could be more, if the system is clogged with a lot of Pressure Static dust, or less if it has just been serviced and has new bags. Changing the conditions changes the gradient of the system curve. More resistance, higher gradi- 10,000m3/hr Flow ent: Lower resistance, lower gradient.

Fan curves Fan curves are plots of flow volume against static pressure, for a certain (designed) fan speed in rpm. They are provided along with the fan and other Left - Figure 6: Duct configurations to avoid (6a) Radius at centre specifications from the supplier. They become very and implement (6b). useful when we overlap them on the system curve line is 1.5 times the diameter (See Figure 5). The operating point is where the two curves intersect. If the system is configured well, the fan will be at its most efficient at this point. If the curves intersect elsewhere, the fan will be inefficient. This is totally unlike a pump, where The target is to run the fan near this operating point. restricting flow will overload the motor. In the region circled in Figure 5, we see that, if we restrict flow even slightly, the fan will become Maximising fan performance unstable. The gradient of the curve is very small in There are a number of ways to ensure that systems this region, meaning that the fan is liable to change are optimised to best handle the required airflow and from higher flow to lower flow with very little input. the operating requirements of the fan. The first, and You can hear fans ‘revving’ in complaint when they one of the most intuitive, is the ductwork (See Figure operate in this range. Obviously variable flow like 6). We can compare this to a fast-moving highway this is not good for steady plant operation. and simply need to apply some common sense. A Interestingly, if we were to overlap the power highway will never have a bend as shown in Figure curve, we can see, contrary to expectation, the power 6a. It will have a bend as shown in Figure 6b. The does not skyrocket when flow is restricted in a cen- same principles can be extended to find optimum trifugal fan system. The motor actuallyrelaxes when solutions for merging gas flows and separating them. there is no flow in a centrifugal fan. If you restrict it Sometimes we see ridiculous layouts. In Figure 7 the air that is already inside simply spins inside it. the central duct leaving the top of the image is the

Global Cement Magazine December 2018 21 GLOBAL CEMENT: FANS

could be quite large. Figure 10 provides a further example of a fan that has little chance of performing to its specification. Figure 11 shows a great example of fan engineer- Right - Figure 7: Ducts even ing. Some might say ‘What about rain?’ The common worse than those shown in solution is to put a ‘Chinese hat’ outlet on top. How- Figure 6a. They simply look wrong and are complete ever, that represents a massive restriction in terms ‘fan killers.’ The system curve of the gas flow. Once again, the fan curve goes up will stand up, meaning that into the unstable range and the performance drops the fan cannot provide the off. So what solution has been used in Figure 11? It’s performance that the client requires. really simple. There is a 20-30mm gap between each of the sections of exhaust duct. As rain never comes down completely vertically, it hits the inside of the duct and then falls harmlessly onto the outside of the next section of duct. It’s a simple solution with zero restriction to the fan. However, like so many of the published guidelines surrounding fans, this is often overlooked.

Obstacle Obstacle Right - Figures 8 & 9: Outlet velocity profiles tell us a lot duct to the bag filter. How on earth is the fan sup- about how to direct exhaust flows. Figure 8 shows the posed to work with that? The answer is, it can’t. If the 3 relative speeds of exhaust fan was specified to move 10,000m /hr at 30mbar it gas without ducting. Figure might be capable of 5000m3/hr with the configura- 9a shows poorly considered tion shown in Figure 7. ducting to avoid an obstacle. Figure 9b shows the optimum Looking at the outlet velocity profile can be very solution to avoid the obstacle. instructive. It is (should be) obvious that the faster gas flow will be on the outside of the fan wheel and the slower gas will be on the inside (See Figure 8). Figure 8 Figure 9a Figure 9b Why does it matter? Well, let’s imagine that, instead of a nice straight lab set-up that the fan manufacturer used to take its measurements, there is an Summary obstruction in the way of the exhaust and we have to turn the exhaust flow through 90°. Looking at the This article has explained some of the characteris- outlet velocity profile, we can see easily that the di- tics of centrifugal fans and highlighted how best rection we choose makes a huge difference. Figure 9 to optimise them in light of well-grounded physi- shows the options. I would strongly recommend 9b, cal principles. None of the information presented rather than 9a because the faster moving gasflow en- here is a ‘trade secret’ but it is still applied very counters a curve. The difference in resistance terms inconsistently across the global cement sector. It is hoped that, even with this simple grounding, non-specialists should be able to easily spot poorly- Right - Figure 10: The configured systems output of this fan is forced not and identify easy wins only to turn the wrong way towards increased fan out of the exhaust, but to do so at right angles! performance and process efficiency.

Left - Figure 11: An elegant solution to avoid penetration by rain.

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David Perilli, Global Cement Magazine

2018 in cement

A major theme of 2018 has been continued readjustment by the major cement producing countries and companies as they cope with a global excess of clinker and grapple with the challenge of reducing CO2 emissions. In China this has meant reducing overall production. For the non-Chinese multinationals, this has meant leaving slow- growth territories to boost profits. Many other cement players and their suppliers have faced new opportunities and obstacles. Here we present Global Cement’s take on 2018’s major news stories...

Where does China go now?

The Chinese government is attempting to manage a wind-down from the biggest construction boom in human history. Sales of cement fell by 9% to 1.58Bnt in the first nine months of 2018 from 1.73Bnt in the same period of 2017, yet prices appear to be rising! Regional variation could explain some of this in a country as large as China and similar trends can be observed in India, which has its own diverse internal markets. In June 2018 the Chinese government’s State Mergers and indigestion Council issued regulations to reduce the production Both LafargeHolcim and HeidelbergCement are capacity of construction materials, set up emission currently suffering ‘ill effects’ following their recent limits for pollution, implement peak shifting of merger and acquisition activity. LafargeHolcim production and to establish a ‘strict’ accountability has been trying to slim itself down to unlock the mechanism for all of this new regime. synergies promised by the merger between Lafarge On the corporate side, the Chinese government’s and Holcim in 2015. Along the way it has lost a attempt to curb production has created the world’s chief executive officer (CEO), Eric Olsen, and it is largest cement producer, China National Building now preparing for its single biggest divestment yet, Material (CNBM), through its merger with Sinoma. the sale of Holcim Indonesia to Semen Indonesia It holds a production capacity of 521Mt/yr or 12% for US$1.75bn. Leaving Indonesia is a big step for of global capacity, according to Global Cement LafargeHolcim, a country that consumed a peak Directory 2018 data. What it doesn’t say publicly is 50Mt of cement as recently as 2011, but which has whether there is a negative financial effect of peak since languished somewhat. It will say goodbye to shifting and other environmental regulations and, if four cement plants with a cement production capac- there is, how bad this has been. ity of up to 15Mt/yr. The sale will meet its divestment target in 2019. However, the selling price seems low at under US$120/t of production capacity as it walks away from such a large market. Elsewhere, LafargeHolcim continues to suffer reputational damage as the Syr- ian judicial investigation

24 Global Cement Magazine December 2018 4.0 25 Figure 1: Order Figure 2: Value of 180 Figure 3: Cement sales intake of major cement cement sales of selected by selected multinational 3.5 sector suppliers in the multinational cement 160 cement producers in the first halves of... 20 producers in the first first nine months of... 3.0 nine months of... 140 2017 2017 2018 2.5 2017 120 2018 15 2018 100 2.0 Source: Source: Company Source: Company 80 reports. Company reports. 1.5 Order intake (US$bn) intake Order 10 Cement sales (US$bn) Cement reports.

Cement sales volume (Mt) sales volume Cement 60 1.0 40 5 0.5 20

0.0 0 0

thyssenkrupp Sinoma FLSmidth Fives KHD CNBM LH HC Anhui Cemex Ultra CRC LH HC Cemex Ultra CRC

LH = LafargeHolcim HC = HeidelbergCement Ultra = UltraTech Cement CRC = China Resources Cement GLOBAL CEMENT: Global Global

>10Mt/yr 5-10Mt/yr Cement 2-5Mt/yr 1-2Mt/yr

Magazine December 2018 25 <1Mt/yr OMt/yr TRENDS Above - Figure 4: New capacity commissioned from 1 January 2018 to 19 November 2018. Data drawn from news stories on Above - Figure 5: New capacity announced from 1 January 2018 to 19 November 2018. Data drawn from news stories on www.globalcement.com. Not all new plants / lines are announced and therefore map is non-exhaustive. www.globalcement.com. Not all projects are announced and therefore map is non-exhaustive. GLOBAL CEMENT: TRENDS

in France carries on. At the last count eight former executives, including ex-Lafarge CEO Bruno Lafont, have been charged in connection to the investigation, which will surely rumble on into 2019 and beyond. HeidelbergCement has had a bad year so far in 2018, mainly down to poor weather in the US and rising energy costs. Its result from current operations before depreciation and amortisation (RCOBD) fell by 7% year-on- year to Euro2.23bn in the first nine months of 2018, despite rising revenues and sales volumes of cement. Competition-related divestments International otherwise it would ‘lose confidence’ in occurred in relation to its purchase of Italcementi in the scheme. In this kind of environment it is per- 2016, to Cementos Argos in the US and Cementir- haps unsurprising that Denmark’s FLSmidth signed owned CCB in Belgium, but no major cement assets a framework agreement about future collaboration have been sold since, with the exception of its white with CNBM in July 2018. cement business. If its current financial action plan fails then the mounting pressure from its results may The battle for Binani Cement prompt further sell-offs. It’s been said before, but no one is going to declare UltraTech Cement the winner of its acquisition of If you can’t beat them… Binani Cement until it actually ‘picks up the keys’ The world’s largest producer, CNBM, also holds to the cement plants. The latest instalment is that one of the world’s largest cement equipment the National Company Law Appellate Tribunal manufacturers, Sinoma International. With the (NCLAT) approved a revised US$1.11bn bid by exception of thyssenkrupp’s Industrial Services divi- India’s largest producer in mid-November 2018. Ul- sion, it reported an order intake in the first half of traTech swiftly declared Binani as a subsidiary to its 2018 that was larger than its other main competitors investors despite not completing on the transaction. – FLSmidth, Fives and KHD – combined. Typically, Now that the deal is completing, it will give announcements about new plants or upgrades men- India’s market leader a boosted presence in Rajas- tion Sinoma or its sister company China Triumph than in northern India with 6.9Mt/yr of production International Engineering, even if the project capacity and, unusually for an Indian producer, is using major European-sourced equipment like assets in the UAE and China. All of this follows a mill. months of protracted legal action, since UltraTech Alongside this, China’s ‘One Belt, One Road’ Cement effectively gazumped Dalmia Bharat Ce- initiative has seen continual Chinese investment in ment’s winning bid in an auction in early 2018. plant projects outside of the homeland, although these don’t tend to be associated with the major Slower growth in the US domestic producers. The big company’s engineering In the US the Portland Cement Association (PCA) firms build them but the smaller companies stump forecast in November 2018 that cement consump- up the cash. tion growth to 2020 is going to slow down as the One incident in Sri Lanka illustrated how recovery period following the financial crash in this may work. A leaked letter from an in- 2008 ends. The background to this is an expected vestment body alleged that the local rise in interest rates dragging on the construction Chinese embassy had been market, a limited boost from the Trump administra- pushing for the involve- tion’s tax cuts and rising debt levels hitting federal ment of Sinoma infrastructure spending. This marks an abrupt turnaround from the PCA’s April 2018 forecast in which potential federal infrastructure spending was anticipated to kick in towards the end of 2019, creating 4% growth in 2020. To give the PCA credit, it did warn that it might not happen and, following the results of the US mid-term elections in early Novem- ber 2018, it has probably concluded that the infrastructure bill is not turning up anytime soon.

26 Global Cement Magazine December 2018 2021 FEBRUARY 2019 AMSTERDAM, NETHERLANDS 13th cemfuels.com gl bal #cemfuels cemfuels CONFERENCE • EXHIBITION • AWARDS Global CemFuels Enquiries

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One aspect of US-government trade policy that ing back up in June and then slowly declining until might also have an effect is its trade war with China, September. The incoming president in 2019, Jair since cement and related products are on the tariff Bolsonaro, may make a difference, but he faces an list. China was the third biggest cement exporter to uphill struggle. the US in 2017, with just over 2Mt. If that source is cut off it seems likely that other exporting nations European producers warn of effects of will fill the void, but local protectionist policies may climate change legislation come into play too. In September 2018 Christian Knell, the president of the German Cement Works Association (VDZ), Taiwan Cement leads the charge warned that the European cement industry faced out of China a challenge to meet climate protection measures Taiwan Cement may be the first Chinese producer to while maintaining competiveness. His plea was for bag significant production capacity outside of East policy support for the development of carbon abate- Asia. In late October 2018 it said it was negotiating ment technologies to meet the 2050 climate goals with OYAK Cement over a joint venture in Turkey, and, specifically, that suitable boundary conditions in which it would invest up to US$1.1bn. It follows would have to be created. moves toward a potential deal with Sanko Holding He was right about the risks. A month later three in June 2018. The suggested OYAK Cement deal European integrated plants were being publicly con- involves a 40% share in 13 integrated cement plants sidered for closure in Sweden and Spain, primarily in Turkey with a production capacity of around due to the costs of meeting climate change legislation. 12Mt/yr, or a 16% local market share. Picking Tur- Anticipated tightening of environmental regulations key is also an interesting choice for Taiwan Cement, was blamed for the former and a poor export market given the country’s strong export market. and high electricity costs were blamed for the latter. Around the same time the United Nations’ (UN) In- Brazil rebounds off the bottom of the curve tergovernmental Panel on Climate Change (IPCC) Back in May 2018 the accumulated annual cement report on Global Warming raised awareness of the sales for Brazil finally started to pick up again after way the cement sector is tackling climate change falling since 2014. Long-awaited mergers and ac- and the existing and impending legislation. In the quisition activity followed, with Cemex making background the European Union (EU) CO2 price hit arrangements to sell its stake in Cimento Vencemos a high of Euro22/t in September 2018, the highest do Amazonas to Votorantim Cimentos for US$30m. price in a decade. Then in September 2018 Italy’s Buzzi Unicem revealed that it had struck a deal to buy a 50% stake Cement association boom in the Brazilian company BCPAR, from Grupo Finally, the cement industry is facing an odd situa- Ricardo Brennand, for Euro150m. Then France’s tion as we head to 2019, with two sector advocacy Vicat bought a majority share in Cimento Planalto associations marking their territory. The Global Ce- (Ciplan) for Euro290m. Finally, in October 2018 ment and Concrete Association (GCCA) formed in Turkey’s OYAK Cement agreed to buy operations early 2018 and it is set to take over the work done from Brazil’s InterCement in Portugal and Cape by the Cement Sustainability Initiative (CSI). It is Verde. Unfortunately, accumulated annual cement mainly formed by the larger cement producers. sales promptly fell again in May 2018, before bounc- By contrast, the World Cement Association (WCA), which was established in 2016, tends to mostly comprise single-country cement manufacturers and CNBM. How the two associations will co-exist and what purposes they will serve amongst national and regional associations remains to be seen. The GCCA is taking over the work the CSI does while the WCA previously said it wanted to cooperate with the CSI. This appears to give the impression that the GCCA will become the world’s apex cement association.

28 Global Cement Magazine December 2018 AMH JulAug 2018.indd 1 05/07/2018 16:36 GLOBAL CEMENT: MOTORS Contents Subscribe Ad Index

Interview by Peter Edwards, Global Cement Magazine

In discussion: Mathis Menzel, Menzel Elektromotoren GmbH

Menzel Elektromotoren GmbH has manufactured and supplied electric motors for a range of industrial applications for over 90 years. Now a third-generation family-owned business of more than 150 people, the firm supplies cement sector clients with squirrel cage motors, slip ring motors and direct current motors all around the world...

Global Cement (GC): Please introduce your GC: Where does Menzel have its factories company to our readers. and offices today?

Mathis Menzel (MM): Menzel Elektromotoren was MM: The headquarters are still in Berlin and we founded by my grandfather Kurt Menzel in Berlin have fabrication sites in Berlin and in the Hanno- in 1927. At that time it was engaged in the produc- ver area. There are also engineering offices across tion of motors and also transformers, due to the Europe, which serve our customers in Europe and rapid electrification across much of Europe. For the elsewhere. Across Germany we have 150 employ- past 30 years we have just been focusing on motors: ees, with around 15 across Europe. The European squirrel cage motors, slip ring motors and direct employees will liaise with clients and then refer Above: Mathis Menzel, CEO current motors. We stopped making transformers the order / services back to the fabrication sites of Menzel Elektromotoren, after the reconstruction of Germany’s infrastructure in Germany. and the grandson of company in the 1950s. We focus strongly on offering the customer tech- founder Kurt Menzel. In the early days the motors Menzel made nical solutions and expertise, rather than the ‘hard were very small. In the 1930s and 1940s they were sell.’ Every customer-facing Menzel employee is a mostly in the range of 10-50kW. We supplied to a real engineer who knows what s/he is talking about. wide range of industrial uses for applications like For us this is an effective approach. pumps and ventilation, things any factory might need. Since then everything has grown much larger, GC: So the overseas staff are Menzel’s ‘eyes like the pieces of equipment our motors are used to on the ground’ in those countries... Below: Menzel’s headquar- drive, for example cement mills. We now make mo- ters in Berlin, Germany. tors with power ratings of 17,500kW or even more. MM: They are the eyes, but also the voice. It’s important for us to be able to speak the customers’ language all over the world. Outside of Europe we have a number of long-standing partners that we operate alongside.

GC: How did Menzel get involved in the cement sector?

MM: Due to the location of the company in West Berlin from the end of the Second World War to 1989, we became very isolated from other competitors. That meant that Menzel had a comfortable market share in West Berlin and even did maintenance for the trains. That was an advantage of isolation. However, the main disadvantage of that somewhat unique situation was that Menzel was isolated from larger potential markets like mining, cement, power and many others. When the Berlin Wall came down, we were no longer protected on our little

30 Global Cement Magazine December 2018 GLOBAL CEMENT: MOTORS

island, but also no longer restricted. Cement was one of a large number of industrial sectors that the company pursued in its diversification drive into other parts of Germany in the 1990s and, subsequently, the world in Left: Commissioning the 2000s. a Menzel motor for a cement mill in Colombia. GC: How important is the cement sector for the company today?

MM: In turnover terms cement clients represent about 10% of what we do. However, as cement is one of the most challenging industries we work with, the projects we carry out in the sector are some of the most interesting. As well as being intellectually stimulating, this means we can GC: How does the company produce its motors? learn a lot from the sector and apply the findings to other parts of our business. Cement is quite unusual MM: The first thing to say is that, unlike some other in that it has not only dust, high temperatures and vi- areas of the cement sector, there are no ‘secrets’ when brations but also the requirement to operate 24/7, in it comes to making large electrical motors. This all weathers all around the world, with high reliability means that the quality of the motor is dictated not so and availability. much by its design, but predominantly by the quality of the handcraft work of the individuals in the fac- GC: What is the most common application that tory, mainly on finish and final assembly. This is the cement clients use Menzel’s motors for? way that all the major motor manufacturers operate and it is one factor that levels the field for smaller MM: There are two main applications. The first is producers such as ourselves. The time and cost of large mills, mainly for raw meal and cement, which employing a skilled worker should cost the same for mostly use slip ring motors. The second is large any company, certainly within developed markets. fans like ID fans, which generally use squirrel cage Another factor that levels the playing field is that motors. It’s hard to say which is the more common there are relatively few high quality suppliers of ma- request - they are almost level-pegging. terials to the large motor sector. Whether it’s copper, For both applications we typically supply motors bearings, iron core, insulation materials, the major in the range of 250-6500kW. This is right in the mid- motor manufacturers are buying very similar raw dle of our wider range. It’s another reason that we are materials. How they are then assembled is where the happy to serve the cement industry. manufacturers may differ. So, if someone offers you a big discount on a large electrical motor, they are either scrimping on materials or quality labour.

GC: How long does it take to supply a motor to a cement sector client?

MM: It depends on the approach taken. We actually have one of the largest warehouses with ready-to-go motors in the sector and they can be shipped at very short notice around the world. If we are making a specific motor for the client’s individual needs - the most common case - it Left: A Menzel IC 616 will take around four weeks to engineer, four to six low voltage motor at months to manufacture and order parts and then a cement plant. another four weeks to assemble, test and paint the finished motor. That means a total order time of six to nine months, plus delivery. Every direct order is slightly different from the previous one. Having the large warehouse is an effect of supplying the pump sector. When a pump manufacturer can make the pump in 6-8 weeks, there is a

Global Cement Magazine December 2018 31 GLOBAL CEMENT: MOTORS

Other motor manufacturers (and sectors) might put a higher emphasis on something else, for example standardised motors for lean production. We all know the way to increase Right: Large electrical motor efficiency: reduce the air gap manufacturing relies heavily on skilled manual labour. between the rotor and stator, for example. However, if you throw big vibrations at a motor with a reduced rotor-stator gap, you risk them making contact and you could destroy the motor. It’s not a risk worth taking in the cement sector.

GC: Once a motor is delivered competitive advantage if we have the motor ready to to the client, who is responsible supply to them off-the-shelf. Sometimes this is also for installation at the plant? a request from cement producers or their suppliers. There are three advantages for us of having the MM: The approach will depend on the client. If we large warehouse. Firstly, if we have stock we can re- are supplying to a cement sector OEM, that supplier duce the load on the factory in busy times. Secondly, will integrate the motor into its larger contract. If the vice-versa, we can ramp up the stock if the factory is motor is supplied to a cement plant, the company seeing lower demand. Thirdly, it opens doors to new staff is often skilled enough to install the motor business. If a cement producer is ‘desperate’ for a without assistance from Menzel. motor and we can supply it rapidly, that service may To help those clients that don’t have the necessary help to secure further orders from that client. It will, skills in house or do want us to do the installation, of course, have to pay a premium for an ‘instant fix’ in 2011 we bought a German company specialised but we are very clear about that in our discussions. in the maintenance and installation of large motors. It will cost less to wait the six to nine months, but It has grown from 25 staff to 65 over that period. We cement producers simply can’t afford to wait around have also used this company to help install the mo- that long! tors of our competitors. This is another advantage to our operations. The difference, as I touched upon GC: How does a motor supplied to the cement earlier, is in the service offering, fast and flexible sector differ from the other industries you serve? help, wherever needed. This is increasingly important across the cement sector. MM: It depends on the sector you are comparing it to. If comparing cement and mining, there will be GC: Where are the biggest global ‘hot-spots’ at the very few differences between the motors. Both have moment for Menzel’s cement sector clients? to deal with dust, high vibration and high temperatures. If you were to compare a motor for the cement MM: As far as new plant contracts go, we’re talking sector with one for a pump however, you would see that the pump motor can be lighter, with thinner, more flexible housing, less precaution for dust, etc... The cement and mining fans have to have far better seals against dust ingress too. Right: A partial view of I would say that the ce- Menzel’s extensive warehouse ment motors are our most of off-the-shelf motors. ‘conservative’ designs from a material point of view. The sector is very interested in high reliability and availability and what some might even call ‘over- specifying’ is how we address that requirement.

32 Global Cement Magazine December 2018 Relax... you’re in good company.

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about Africa and Latin America. In Europe we also ers. Smaller producers represent our largest class see good orders but these are for retrofits, typically of client. one or two mid-size motors at a time. I’m not in a Single plant owners and smaller groups tend to position to quantitatively answer how many motors be more cautious with their equipment and are also went to each country or continent. That’s because more open to smaller suppliers such as ourselves. In when we supply an OEM it could then send that some countries we are able to develop a reputation motor in a larger order to anywhere. The same is with one particular customer and they recommend true when we deal with the large multinational ce- us to another cement producer. There is quite a lot ment players. They might order from their European of staff flowing between cement plants in smaller headquarters and then ship it themselves to the final markets and word gets around quite fast. destination. GC: How are the types of contract changing at the moment?

MM: There is quite a focus on retrofits and upgrades in several markets, mainly from Africa and Latin America. This typically means one or two mid-size motors for a cement plant looking to upgrade its electrical drive systems. Right: Installing a Menzel motor for a cement mill in Peru. GC: Would you say that the cement sector is gaining or losing importance for Menzel?

MM: Neither is the case and that’s good for us. We are well diversified across a wide range of different industries. If one is up, another might be down and that keeps us quite stable. No one single industry dominates our fortunes.

GC: How are cement sector demands GC: Does that mean motors can go ‘off the radar?’ changing with respect to motors?

MM: It’s not that we usually don’t know the des- MM: Size continues to be a growth factor for cement tination of our motors. We do. However, we don’t producers. 20 years ago we made a lot of 2-3MW agglomerate that data into national or regional sta- motors for the sector. Now we have requests more tistics. Some sectors, not cement I hasten to add, do typically of 4MW, 5MW or even 6MW. Will this try to ‘pull the wool over our eyes’ regarding the final trend for bigger and bigger motors continue? It is destination of the motors. not impossible and, indeed, Menzel has supplied motors up to 17.5MW. However, some of the largest GC: Where is on the rise at the moment? motors are hard to transport. Cement plant capacities also seem to be reaching a plateau, or at least the MM: Outside of the cement sector, there has been a rate of growth is not as fast as in the past. I would say flurry of mining orders and water utilities in North it is quite unlikely that the sector will demand our Africa and the Middle East in the past few months. largest motors just yet! This is quite a change compared to the past few years. GC: Does Menzel have plans to grow its GC: What about weaker areas? capabilities in the coming years?

MM: The US is not great at the moment for us, in MM: I don’t want to go on the record and state our terms of mining and processing industries. We targets, but suffice to say that we are always looking haven’t supplied cement clients in that country yet. to improve from a technical standpoint, which is at the core of everything we do. We continue to invest GC: How have client types been changing? in a range of smaller, incremental changes to our manufacturing, testing and installation processes to MM: We have a variety of clients within the cement provide additional benefits to the client. sector but the relative proportions of those are not changing a lot with time. We try to work mostly GC: Mathis Menzel, thank you very much indeed! with smaller cement players rather than larger ones, which often like to work with larger motor suppli- MM: You are most welcome!

34 Global Cement Magazine December 2018 2627 MARCH 2019 AACHEN, GERMANY

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Interview by Paul Brown, Global Cement Magazine

In discussion: Christian Hanses, Siloadmaxx

Global Cement recently visited the Siloadmaxx headquarters in Hilgert, close to Koblenz, Germany. How has the company developed since Global Cement last reported on the company in 2014 and which industries developed into key clients? Paul Brown spoke to the company’s CEO Christian Hanses to find out...

Global Cement (GC): Siloadmaxx was founded process, including packaging, handling costs and with the goal of turning the ISO-Standard 20ft payload inside the container to compare it with our container into a reusable package for bulk solids. proposal of using the container itself. How has it developed this idea? GC: That sounds like quite a lengthy process... Christian Hanses (CH): At first we found quite a lot of resistance to the concept. However, we real- CH: It doesn’t have to be. We shorten the process ised that the answer to this, and hence successful with a benchmark spreadsheet and a conference call introduction into different sectors, was not in the of just 15 minutes or so. The spreadsheet is based on technology alone. There were concerns about the customer information that has been verified by third optimisation of the complete supply chain. Manag- party process optimisation companies. Above: Christian Hanses, CEO ers around the world are asked to generate savings The given processes for i.e. packing a Big Bag, of Siloadmaxx since 2008, that have to be amortised on the corresponding including material, wages and time are very compa- when the company was founded. supply contracts. The challenge for us was therefore rable for almost any company. Containers also have to analyse our own technology in combination with a standard volume and can load a specific number savings in packaging, handling and transport costs of Big Bags. We can then calculate the exact payload on a price per tonne basis. That gives us a value and number of containers that are required to trans- proposition to present to prospective clients. port the material. All values in the spreadsheet can be ad- GC: The costs of packaging, handling and justed to the corresponding supply chain. When transportation are often calculated in different a new customer starts an operation with our departments and are rarely summarised for the Siloadmaxx technology and does not reach the full complete supply chain. How do you go about this? capacity of a machine of 60,000t/yr, it is our obli- gation to offer a start-up package and adjust the CH: We identified this problem and now initiate re- machines to ensure economic efficiency. From expe- quests from new customers to compare the existing rience I can say that a customer starting at 10,000t/ and proposed processes. We analyse their current yr will reach full capacity within three to five years. It always starts with the benchmark spreadsheet and the numbers don’t lie. The savings have to exceed the costs of Above: Siloadmaxx units can the installation by a significant be used to load and unload standard containers with margin. Then, once the pro- bulk solids. Different units are cess is up and running, the used to load and unload and client will start to save money on both can be used in a wide every tonne. variety of configurations. The Siloadmaxx units are also fitted inside containers GC: How well known is and can be shipped with the Siloadmaxx within the cement bulk solid. Here a container industry? is being filled with a bulk solid via a Siloadmaxx unit. The company rents the CH: At present cement is technology. not a particularly major sector for us, but we are looking

36 Global Cement Magazine December 2018 GLOBAL CEMENT: LOADING & UNLOADING

to change that. At the moment, cement is a sec- seasonal and we have several tor that we cater for with our simplified loading framework contracts with machines like the Container Quick Load (CQL). global corporations regarding This is a smaller machine mounted on a standard the same challenge. The reac- car trailer. Our margins for clients with low value tion of Siloadmaxx to ensure materials like soda ash (0.8Mt/yr) confirm our economic efficiency for our strategy for the cement sector in the longer term. customers is a reduced down- We expect to take on a larger role in this market step time fee during times with by step. low demand, for example over the Christmas and New Year GC: Cement is a sensitive product with high abra- break. The customer pays the siveness and sensitivity to moisture. How will the calculated rent while taking larger pieces of equipment handle this? advantage of the savings that come from using our ma- CH: For us cement is a less ‘critical’ material than chines. many of the others we deal with. We are used to dealing with highly-sensitive materials like explosive GC: How does Siloadmaxx technical starch, hormone-altering bisphenol, pure provide its technology and services around the Above: The Container Quick polyvinyl butyral (PVB) for the automotive industry, globe? Load (CQL) unit can be towed by a car or van. highly hygroscopic nylon and so on. We have loaded cement into containers and CH: With pride I can say that we now operate all shipped it in a long-term test from Germany to Bra- around the world. Our shareholder Karl Schmidt zil. We stored the cement there for three months and Heilbronn deals with clients in Russia, Europe and the Below: Using only a handful then brought it back to Germany for analysis and Middle East. Rhenus Commodity Logistics realises of parameters, a benchmark further processing by our cement sector partner. projects across Asia down to Indonesia and also uses spreadsheet can calculate the savings provided by using our technology for the Rhenus corporation. MTS Siloadmaxx units rather GC: Construction, and hence cement, are seasonal Logistics is our partner for projects in Turkey and than traditional methods. businesses. How does the benchmark spreadsheet the US. Here, Big Bags are shown to allow for lulls and ensure economic efficiency all cost Euro10.1m more than a Siloadmaxx solution over a year round? GC: Thank you for the interview. three year period when trans- porting 60,000t/yr of material CH: Many other sectors that we deal with are also CH: You are very welcome indeed! from the EU to Colombia.

Global Cement Magazine December 2018 37 GLOBAL CEMENT NEWS: PRODUCTS & CONTRACTS

Contents Nepal: Gebr. Pfeiffer to supply vertical mill for Samrat Cement Subscribe ermany’s Gebr. Pfeiffer has received an order via BK integrated classifier will separate the ground coal Ad Index GKHD to supply an MPS 225 BK vertical mill to grind into fine product and coarse product, with the latter coal for Samrat Cement. The cement company is build- being returned to the grinding zone. The classifier will ing a new integrated production line at a plant in the also allow petroleum coke to be separated to fineness Dang region. degrees of <1% R 90µm. The mill, with a drive power of 370kW, will grind The order was received via Gebr. Pfeiffer’s subsidi- 35t/hr of coal to a product fineness of 15% R 90µm. ary in India. It will supply the main equipment for the At the same time, the coal, which may have a feed mill and associated equipment for the grinding plant. moisture of up to 10%, is dried in the mill. An SLS 1800

Ukraine: HeidelbergCement signs Mexico: Cemex Go reaches 20,000 users upgrade deal with CTP Team emex says that its digital platform, Cemex Go, has eidelbergCement has signed a contract with Creached over 20,000 customers in 18 countries in the HItaly’s CTP Team to upgrade its Kryvyi Rih first year of its operation. This figure represents about plant. The project includes replacing the exist- 60% of Cemex’s total recurring customers worldwide or ing filtering system and relevant dust handling about 20% of its global sales. for drying drum four. CTP Team will supply a new The system allows the company baghouse equipped with SWAP technology for and its customers to manage the cleaning of bags with low-pressure com- order placement, live track- pressed air. The new filter is intended to comply ing of shipments and invoices with new local environmental regulations. It will and payments for the com- be designed specifically to fit within the existing pany’s main products, including electrostatic precipitator housing. bagged and bulk cement.

US: Wind for Paulding

afargeHolcim plans to build Lthree wind turbines at its Paulding cement plant in Ohio. Jamie M Gentoo, chief executive officer (CEO) of US cement operations, said that using distributed wind energy at the plant would be a first for the company in North America. Algeria: Bedeschi crusher for Zahana Construction of the turbines will begin in December 2018 in ahana Cement has ordered an RL 850/1500 double roller crusher from partnership with One Energy. ZBedeschi. The contract includes the supply and installation of the new The three Paulding turbines machine, designed for 500t/hr of marl, the removal of the existing machine are expected to generate more and an electrical board upgrade. Commissioning is expected by mid-2019. than 12MkWh/yr and should eliminate the equivalent of

more than 9000t/yr of CO2. Germany: aixergee hosts optimisation workshop

ixergee GmbH has hosted its annual workshop- shortcomings and bottlenecks in modern cement aseminar on process optimisation in cement plants and how to best develop solutions. aixergee’s manufacturing. The hands-on, high-intensity event modern analysis techniques like computational fluid covered optimisation of all areas of the cement pro- dynamics (CFD), flowsheet simulation and big data duction process, including increasing production, analysis can provide valuable help. Read more about reducing emissions, alternative fuel use and related aixergee’s process optimisation methodology in the topics. The two day seminar looked at how to analyse January 2019 issue of Global Cement Magazine.

38 Global Cement Magazine December 2018 Contents Subscribe Ad Index NEWS

Ireland: Breedon rebrands Lagan agan Group’s bagged cement, brick and The hottest option Ltile products have been rebranded within the Breedon Group, following the acquisition of the Irish company by UK-based Breedon earlier in 2018. The company manufactures a in Bi-Metal and range of bagged cement, concrete roof tiles and clay facing bricks, which it supplies to builders’ merchants across the UK and Ireland. Wear Castings! The newly branded range has widened the product range available through Breedon’s distributor network.

HARDTOP® Bi-Metal Castings provide high wear resistance increased durability reduced overall costs high efficiency Iceland: Cement carrier grounds reduced expense for maintenance minimised downtime ement carrier Fjordvik has run aground raised production Cnear the port of Helguvík harbour in Kefla- vík. It ran aground whilst being piloting into added profit the harbour, according to state broadcaster RÚV. The hull of the vessel has been breached. The crew were evacuated by helicopter. The ship was travelling from Aalborg in Denmark.

Montenegro: New plant mooted

he Chamber of Economy of Montenegro Thas discussed plans to build a new cement plant at Pljevlja. The project has been proposed to reduce imports of cement, grow the local economy and take advantage of local resources. The location is favoured due to local reserves of marl, coal, gypsum and fly ash from a local coal-fired power station. However, Dragica Sekulić, the minister of economy, said that the project would require a ‘serious’ investor. Montenegro imported Euro41m worth of cement in 2017. In the first nine months of 2018 it imported Euro39m worth.

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phone: +49 (0) 391 532969-0 fax: +49 (0) 391 532969-21 e-mail: [email protected] Global Cement Magazine 39 web: www.hardtop-gmbh.com GLOBAL CEMENT NEWS: EUROPE

Germany: Weather and fuel hit HeidelbergCement’s earnings so far in 2018

oor weather in the US and rising energy prices have 93.5Mt. By region, revenue rose in all regions except for Preduced HeidelbergCement’s earnings so far in North America, but RCOBD fell in Western and South- 2018. Its result from current operations before depreci- ern Europe, North America and Asia-Pacific. ation and amortisation (RCOBD) fell by 7% year-on-year “Improved financial costs and lower taxes over- to Euro2.23bn in the first nine months of 2018 from compensated weaker than expected results from Euro2.41bn in the same period in 2017. Despite this, its current operations due to significant rainfalls in our revenue rose by 3% to Euro13.4bn from Euro13bn and core markets in the USA as well as a higher than planned its sales volumes of cement grew by 4% to 97Mt from energy cost inflation,” said Bernd Scheifele, chairman of HeidelbergCement. He added that, “Due to the weaker operational development, we had to partially adapt our outlook for 2018. As a countermeasure we have initiated an action plan with focus on three levers: portfolio optimisation, operational excellence as well as cash flow and shareholder return.” France: Vicat sales rise marginally

icat’s cement sales rose by 1.8% year-on- Vyear to Euro948m in the first nine months of 2018 from Euro932m in the same period in Do you sometimes doubt the fire and 2017. At constant scope and exchange rates explosion safety of your coal handling it rose by 10.2%. Overall sales grew by 1.4% and coal grinding? to Euro1.95bn from Euro1.92bn. The group’s sales volumes of cement rose by 3.1% to Very likely you are right! 17.4Mt from 16.9Mt. Where to start? Have a comprehensive assessment report made up for you by a specialist. France: Cement to grow by 3% From there, meaningful decisions can be made. énédicte de Bonnechose, the president of Bthe French cement industry union (SFIC), says that the country’s cement market is expected to grow by 3% in 2018. She made the Coal Mill Safety Pte Ltd comments whilst unveiling local CO2 reduc- www.coalmillsafety.com tion targets by 2050, according to the Agence France Presse. The local industry recorded [email protected] growth of 4% in 2017. She described 2018 as a ‘positive recovery’ with sustained growth following a good first half. Russia: New plant for Krasnokamensk SFIC forecasts that new low-clinker cement products will enter the market by mid-2020. These products osstroytrans and China’s Inner Mongolia Mengxi include EMC II / CM, EMC VI and LC3 types of cement. MCement have signed an agreement to build a These should reduce the CO2 emissions related to cur- 0.5Mt/yr cement plant at Krasnokamensk in Trans- rent sold cement products by 35%. Other CO2 capture baikal. The deal was signed at the China International initiatives including Oxyfuel, Leiliac and calcium loop- Import Expo in Shanghai. The project dates back to ing cleanker technologies were also discussed. 2014, when China’s Beijing Triumph International En- gineering conducted a feasibility study at the site. In 2016 the regional government declared the project a regional priority. Mosstroytrans was established in 2010. At present, it is running a number of construction projects in the Nenets Autonomous District. Inner Mongolia Mengxi Cement is based in the Inner Mongolia Autonomous Region of China. It operates cement plants with a total production capacity of 16Mt/yr.

40 Global Cement Magazine December 2018

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Intercem Engineering GmbH  Intercem Installation GmbH Carl-Zeiss-Straße 10 | 59302 Oelde | Germany Tel.: +49 2522 92058-0 | E-Mail: [email protected] | www.intercem.de

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Italy: Cementir adjusts to life abroad Italy: Buzzi up despite weather woes ementir’s sales and earnings have benefited from uzzi Unicem’s net sales remained stable at Cnew assets in the US as well as good performance in BEuro2.14bn in the first nine months of 2018 com- Belgium and China. Its sales revenue rose by 4.8% year- pared to Euro2.13bn in the same period in 2017. Its on-year to Euro893m in the first nine months of 2018 cement sales volumes grew by 3.1% to 20.9Mt from from Euro852m in the same period in 2017. Its earnings 20.3Mt. Its market in the US was strongly affected before interest, taxation, depreciation and amortisation by unprecedented rainfall, notably in September (EBITDA) increased by 5.2% to Euro163m from Eu- 2018. Activity in Ukraine was also lower. Net sales in ro155m. Its cement sales volumes fell by 1.8% to 7.52Mt the US dropped by 61% year-on-year to Euro791m from 7.66Mt. However, these figures take into account in the third quarter of 2018 and sales in Ukraine the company’s sale of its Italian operations. decreased by 9.7% to Euro63.6m. Sales rose in most other areas, with an emphasis on growth in Italy and Europe. Greece: Titan turnover tumbles... again

itan Group’s turnover fell by 3.7% year-on-year to TEuro1.10bn in the first nine months of 2018 from Euro1.14bn in the same period in 2017. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 8.2% to Euro196m from Eu- ro215m. It attributed this to wet weather on the eastern seaboard of the US. It said that production ‘challenges’ at the group’s Florida operations forced it to increase imports to its terminal at Tampa to meet customer demand, although this lowered its margins.

Global Cement Magazine December 2018 41 GLOBAL CEMENT: EVENT REVIEW Contents Subscribe Ad Index

easyfairs

Review: SOLIDS & Recycling-Technik 2018

SOLIDS and Recycling-Technik 2018 in Dortmund once again ended on a high note. The 6254 trade visitors who attended over the course of the two-day event, as well as the 500 exhibitors, all came away satisfied. While Recycling-Technik recorded strong visitor growth of 10%, SOLIDS really shone, with 20% more international visitors, from a total of 60 countries.

ver the two days of the event, visitors were en- Othusiastic about the informative lectures on the innovation stages, in addition to visiting the more than 500 exhibition stands. Highlights included the Right: Outside the entrance recycling of packaging and of building materials, as to the events. well as in the life science technologies. The Guided Tours, as usual, were very well received. However, the absolute top attractions were the live explosions carried out within the context of the 4th German Fire and Explosion Protection Congress.

Right and far right: More than 6200 visitors attended over the course of the two days.

Speaking after the event, Daniel Eisele, Group Event Director and Exhibition Director at Easy- fairs Deutschland, said, “For all the participants of SOLIDS and Recycling-Technik – both national and international – seeing and experiencing new products and services in person is a key reason for Right: Explosion demonstra- tions were held as part of the making the trip to Dortmund. The growth we’ve seen 4th German Fire and Explosion in the number of international guests underscores Protection Congress. the shows’ increasing importance.” Speaking of the next SOLIDS and Recycling-Technik, which will take place on 1-2 April 2020, Eisele concluded, “The next show always starts on the heels of the last one!”

Global Cement will once again attend the events.

42 Global Cement Magazine December 2018 Contents Subscribe Ad Index

Colombia: Argos’ sales fall alling sales at home have reduced Ce- Fmentos Argos’ sales so far in 2018. Its „ revenue decreased by 1.8% year-on-year The Blaine - Master“ to US$1.99bn in the first nine months of The only producer of six 2018 from US$2.03bn in the same period in 2017. Its sales volumes of cement different Blaine apparatus declined slightly to 12.1Mt. However, its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by Including demo film: 6.1% to US$355m from US$330m. By region, revenue fell by a little in the How to use the Blaine apparatus US and cement sales volumes remained stable. This was blamed, in part, on the negative effects of Hurricane Florence on its market in the Carolinas in the third quarter and on falling prices. Revenue and Blaine, manual sales volumes were down in Colombia due and Blaine, to a poor market although this started to recover in the third quarter, notably with semiautomatic improving earnings. In the Caribbean and Central America region its revenue and sales volumes increased, lead by growth in the Dominican Republic, Puerto Rico and the Eastern Caribbean. Despite this, EBITDA margin fell due to decreased des- patches in Honduras and Panama.

Blaine, PC operated, fully automatic

Blaine Dyckerhoﬀ, semiautomatic,

Argentina: Unacem buys Cementos Portland

nacem has purchased Cementos Port- Uland (Cempor) for US$28m. It acquired a full stake in the company from Chile’s Cementos Bío Bío and Brazil’s Votorantim Blaine Dyckerhoﬀ, Cimentos. Cementos Bío Bío and Votoran- PC operated, tim originally planned to build a US$150m cement plant in Lima. However, this was fully automatic, delayed by a legal battle over environ- 1 or 2 cells mental issues initiated by Unacem. The Peruvian cement producer operates an integrated plant in Lima.

TESTING Bluhm & Feuerherdt GmbH Global Cement Magazine 43 Motzener Straße 26b • 12277 Berlin / Germany Phone: +49 30 710 96 45-0 www.testing.de • [email protected] GLOBAL CEMENT NEWS: THE AMERICAS

Mexico: Growth in core markets for Cemex

ales growth in the US and Mexico contributed Despite the strong Sto a strong third quarter for Cemex in 2018. markets in North America, Overall, its net sales rose by 7% year-on-year the building materials to US$10.9bn in the first nine months of 2018 company reported a 3% from US$10.2bn in the same period in 2017. Ce- drop in net sales in its ment sales volumes rose by 3% to 52.7Mt from South, Central America 51.1Mt. However, despite the sales growth, and Caribbean business operating earnings before interest, taxation, de- area. A particular poor preciation and amortisation (EBITDA) remained result was noted in Co- flat at US$1.96bn. lombia. However, cement “These results were underpinned by healthy sales volumes picked up volume and pricing dynamics in our three core year-on-year in the third products in most of our portfolio. We are pleased quarter of 2018 following with our operations in Mexico and the US. In our elections. Europe region, prices continued to improve with growth in ready-mix and aggregates volumes. In addition, in our Asia, Middle East and Africa region, Peru: New grinding plant for Pisco we saw volumes and prices in the Philippines rising in the mid-single digits as well as a double-digit increase emento Inka is planning to build a in cement prices in Egypt,” said Fernando A Gonzalez, C0.6Mt/yr cement grinding plant in Pisco. The chief executive officer (CEO) of Cemex. US$25m project is scheduled to be completed by late 2019 or early 2020, according to the Gestión newspaper. The board of the building materials producer plans to make a decision on building the Mexico: New line for Cruz Azul unit by the end of 2018. ruz Azul has launched the construction of a fifth Cproduction line at its Oaxaca cement plant in Honduras: President asks for discount Lagunas. State governor Alejandro Murat Hinojosa presided over the ceremony. The new line has an resident Juan Orlando Hernández has asked local ce- investment of over US$130m and is scheduled for Pment producers to offer cement at a discount for use completion by the end of 2020. It will also be able in government projects. The government and the two to co-process alternative fuels up to a rate of 40%. main producers have formed a commission to determine Previously, Germany’s Loesche and France’s Fives how to implement the request, according to La Tribuna sold grinding mills for the upgrade. newspaper. However, Juan Carlos Sikaffy, the head of the Honduran Council of Private Enterprise (COHEP), described the issue as ‘delicate,’ given the taxes the cement Argentina: Loma Negra revenue up companies pay and the jobs they create.

oma Negra’s net revenue grew by 42.3% year-on- Lyear to US$435m in the first nine months of 2018 Peru: Self-build drives Pacasmayo from US$305m in the same period in 2017. Its adjusted earnings before interest, taxation, depreciation and igher sales to the self-construction sector, amortisation (EBITDA) rose by 46.5% to US$113m from Hmedium-sized companies and the public sector US$77.3m. Overall, its cement masonry and lime sales have driven sales growth for Cementos Pacasmayo. volumes remained stable at 5.1Mt but sales in Paraguay Its sales grew by 3.1% year-on-year to US$274m fell by 4.2% to 0.42Mt. Sales volumes fell in both Argen- in the first nine months of 2018 from US$266m in tina and Paraguay in the third quarter of 2018. the same period in 2017. Its consolidated earnings The subsidiary of Brazil’s InterCement said that it is before interest, taxation, depreciation and amorti- moving ahead with building a new US$350m production sation (EBITDA) increased by 5.1% to US$83m from line at its L’Amalí plant. The new line will have a clinker US$79m. production capacity of 5800t/day. The project is being Cement and clinker production grew by 2.4% to built by China’s Sinoma International Engineering and it 1.69Mt and 14.7% to 1.30Mt respectively. The build- is expected to be completed by early 2020. Main equip- ing materials producer also reported that quicklime ment is expected to arrive at the site by the end of 2018 production fell by 23.6% to 97,400t at its Pacasmayo and the steel structure is already under construction. plant due to reduced demand.

44 Global Cement Magazine December 2018 NEWS: AMERICAS

Bolivia: Potosí plant 45% built

ubim Andrade, the head of Sociedad Ac- Zcidental Imasa Polysius, a joint-venture by Polysius and Imasa, says that the 1.3Mt/yr cement plant the company is building in Potosí is 45% complete. Over 900 people are working 30 YEARS IN BUSINESS 30 YEARS IN BUSINESS on the project and most of the equipment for the US$240m plant has arrived. REGION’S LEADING PROVIDERREGION’S OF MILLWRIGHTS LEADING PROVIDER OF MILLWRIGHTS

Turnkey Installs Turnkey Installs Canada: Colacem plan complaint Vertical and Ball Mill SpecialistsVertical and Ball Mill Specialists

nvironmental groups including Nature Gearbox Service and RebuildingGearbox Service and Rebuilding ECanada, Ontario Nature, Nature Quebec Bucket Elevator Install andBucket Replacement Elevator Install and Replacement and the VanKleek Hill and District Nature So- ciety have called on Environment and Climate All Welding Processes IncludingAll Welding R Stamp Processes Including R Stamp Change Minister Catherine McKenna to start a review of the proposed Colacem Canada Full Fabrication Shop Full Fabrication Shop L’Orignal cement plant in Ontario. The groups Outage Capacities of 75 IndustrialOutage SpecialistCapacities of 75 Industrial Specialist have received a response from the Canadian Environmental Assessment Agency (CEAA) saying that their concerns had been acknowl- NORTH AMERICAN MILLWRIGHTNORTH SERVICES, AMERICAN INC. MILLWRIGHT SERVICES, INC. edged and that it was providing advice to the minister, according to the National Observer. JIM RUSSELL e: [email protected] RUSSELL e: [email protected] Colacem hopes to build a 3000t/day plant next o: 877-388-9870 #313 | c: 410-591-2921o: 877-388-9870 #313 | c: 410-591-2921 to a limestone quarry it already operates. NAMILLWRIGHT.COM NAMILLWRIGHT.COM GLOBAL CEMENT: PLANT VISIT Contents Subscribe Ad Index

David Perilli, Global Cement Magazine

Compañía Minera Agregados Calcáreos SA: Success from diversity in Peru

Compañía Minera Agregados Calcáreos SA (COMACSA) celebrates its 70th anniversary in 2018 after being founded in 1948. It mines, prepares and sells a wide range of non-metallic minerals, including white cement. The company focuses extensively on the aggregates side of its business, as well as cement, even though it does not sell ready-mix concrete. Global Cement recently visited the company’s plant in Lima, Peru to find out more...

OMACSA sells a portfolio of over 40 products Cmade from non-metallic minerals, including Right: Juan José Ballén white cement, calcium carbonate, talc, bentonite, do- Rossello, executive president of COMACSA (right), and lomite, kaolin, feldspar, barite, quartz, gypsum and Jorge Fritschi Escobar, general others. Most of its products are prepared by grind- manager (left), overlook the ing processes but some undergo further processes company’s plant from the such as pyroprocessing, as is the case with white office complex. cement clinker, and a wet slurry process for kaolin clays. It supplies 80% of the local market with its main product lines and exports 35% of its production to Argentina, Chile, Colombia, Ecuador, Bolivia, Panamá, Costa Rica and Venezuela. The company is run by Juan José Ballén, a trained lawyer and former Microsoft employee. He is the grandson of the family The plant’s location demonstrates how long it has company’s founder. been there, the rapid pace of Lima’s urbanisation over the last half-century and the relatively small scale of Location production on the site. Its location also has direct The first thing one notices about a visit to implications on COMACSA’s logistics. Lima’s traffic COMACSA’s plant in Lima is its location. It is situ- is notoriously bad and has only grown worse over the ated to the side of a highway heading north out of years. The company supplies its plant with minerals downtown, about halfway through the city’s suburbs. sourced from its own mines along the Pacific coast Next door to the plant are a supermarket and a KFC, and in the mountains surrounding Lima. However, Below: View of one of the and across a busy road junction is a university cam- the local traffic is so congested that it schedules deliv- kilns and preheater towers. pus. A mixture of light industrial and residential eries to arrive between 00:00 and 05:00 to avoid the neighbourhoods surround the plant. rush hour.

COMACSA - Overview

White cement kilns: Two Types: Dry (1 with Pre-calciner) Kiln supplier: Built in-house PERU Commissioned: 1972 & 1998 Lengths: 30m & 21.5m Capacities: 30t/day & 88t/day • Lima Fuel: Natural gas Cement mills: 2 x Ball mills Total mill capacity: 125t/day

46 Global Cement Magazine December 2018 GLOBAL CEMENT: PLANT VISIT

best purity. It selects the whitest calcium carbonate it can find, as well as pure clay and amorphous silica sand. The cement line manager is constantly Left: Raw materials are transported by truck from changing the balance of the raw mill using differ- COMACSA’s network of quar- ent sources of raw materials as input supplies vary ries and mines in Pacific coast throughout the year. and mountainous regions of Unlike, say, an exclusive white cement producer Peru to the plant in Lima. They are then stored in the open air in other parts of the world, because the company before processing. sells different products using calcium carbonate it is able to tailor different quality supplies to differ-

Cement production line walkthrough The COMACSA site in Lima breaks down by area into one third for raw material storage, one-third for production processes and one third for finished material storage, plus company offices and laboratories. The production plant includes 16 mills used for Left: The company’s finished material storage area. grinding the company’s other non-metallic mineral products. Of these, two mills are used in the site’s two integrated dry process cement production lines. One line was shut down to undergo routine maintenance

ent product lines. For example, the purest calcium carbonate is used to make white cement. Other sources of calcium carbonate with higher iron content are used in products like animal feed. Left: A dump truck pours Raw materials are then fed by wheel loaders and raw material into the dump trucks, via a weighbridge, into an underground underground jaw crusher at jaw crusher that starts the cement production line. the start of the white cement production line. Limestone, This then leads to raw material silos. Given the age clay and sand are moved by of the factory site the lines aren’t too convoluted and truck around the plant. are laid out in roughly linear fashion, spanning the preheater tower to the clinker cooler with two switch- backs at either end. The rotary kilns are fired entirely by natural gas supplied directly to the plant via the local urban network. Using fuels other than coal is a distinctive feature of white cement production, due to the high iron content of some coals, which discolours the at the time of Global Cement’s visit. Both lines are clinker. Using gas in this case also offers an advantage, small, with a combined production capacity of below as white cement production requires a higher kiln 120t/day. They are positioned next to each other on temperature than Ordinary Portland Cement (OPC) the eastern side of the site. production. Kiln maintenance is conducted ad-hoc Raw minerals are delivered by truck and stored in but, like any other kiln, the identification of hot-spots open-air stockpiles in the southern side of the site. can lead to shutdown periods. At the time of the visit, The cement lines receive around four to six deliveries maintenance had last taken place nine months previ- per day, up to a maximum of 185t/day of minerals for ously and another shutdown period was scheduled preparing the raw meal. Lima’s desert climate ensures for shortly afterwards. Refractory for the kilns is infrequent precipitation, which means materials can supplied by Refractarios Peruanos, a local company be stored in the open without degrading. At the time formerly owned by US-based HarbisonWalker Inter- of the visit COMACSA was using travertine, a type of national but now a technical licensee. calcium carbonate, along with clay and sand. It uses The next distinctive feature of the COMACSA raw materials from a variety of sources, chosen for cement line is its open-ended clinker coolers. The

Global Cement Magazine December 2018 47 GLOBAL CEMENT: PLANT VISIT

Above: The kiln uses natural gas as a fuel supplied from the local grid. This fuel style is common in white cement production due to the need for a low-ash fuel.

Above: Clinker being transported by conveyor to the clinker store. Note the light-green colouring of the clinker that is specific to white cement production.

coolers rotate using ambient air to cool the clinker. White cement products The line is able to do this given the small production The company’s main white cement products are scale. A worker then manually monitors the clinker Cemento Blanco Pastoruri and Cemento Blanco flow as it drops onto a conveyor that takes it to the Huascarán. The former is used for standard applica- clinker storage silo. The white cement clinker has a tions, while the latter is the premium version used for light turquoise-green hue, in contrast to grey OPC. artistic and luxury applications. The clinker silo can hold sufficient supplies to keep the grinding and bagging sections of the plant Focus on analysis running for about two to three months. From here, Unsurprisingly given the scope of the product range, the clinker is ground in a mill before being manually COMACSA maintains a well-equipped laboratory bagged and then palletised. The company sells white on site for quality control testing and new product cement in a variety of bag sizes: 20kg, 40kg, 50kg and development. The laboratory is gradually being 1t big bags. Big bags are also filled manually. Com- upgraded from functional wooden style cabinets pleted pallets are moved by forklift to the finished of the sort one might find at a university to more material storage area, ready for despatch. modern-plastic-faced ones. Testing machines of Uniquely, much of COMACSA’s equipment has note on site include a Thermo Scientific Optim’X been built in-house. The raw material jaw crusher, spectrometer, a Bruker Tracer XRF portable spec- for example, was built by COMACSA under the trometer, a Micromeritics SediGraph III Plus particle supervision of its engineering manager. The larger size analyser, a Shibo Box-1700 muffle furnace, as clinker line was built in the 1990s. It too was built well as the traditional and universally recognisable in-house using a design purchased from a third Blaine fineness apparatus. Samples for the lab from party. Typically, the problem the company has faced the company’s mines and quarries typically arrive in as a low-volume producer of lots of different types the early morning for testing during the day, while of mineral products, is finding vendors willing to samples from the production processes on site are manufacture and sell such small machinery. This has analysed continuously. led to a do-it-yourself mentality in the firm.

Below left: Distinctively, the plant uses open air rotary clinker coolers. A worker at the end of the cooler manually manages the clinker flow into the onward conveying system.

Far right: A range of mineral products ready for dispatch.

48 Global Cement Magazine December 2018 IEEE-PCAIEEE-PCA AdAd PRESSREADY.pdfPRESSREADY.pdf 11 9/30/139/30/13 12:3712:37 PMPM

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IEEE 2019 - December 2018.indd 1 26/11/2018 13:55 GLOBAL CEMENT NEWS: ASIA Contents Subscribe Ad Index

Indonesia: LafargeHolcim sells Holcim Indonesia to Semen Indonesia

afargeHolcim has signed an agreement with Semen “As part of our ‘Strategy 2022 – Building for LIndonesia to sell its 80.6% share of Holcim Indo- Growth’ we have committed to divestments of at least nesia for US$1.75bn. The assets to be sold to Semen Euro1.8bn. Today’s announcement is an important Indonesia include the entirety of LafargeHolcim’s op- milestone in reaching our target and to increase our erations in Indonesia, which consists of four cement financial strength,” said Jan Jenisch, chief executive of- plants, 33 ready-mix plants and two aggregate quar- ficer (CEO) of LafargeHolcim. ries. LafargeHolcim says it decided to divest Holcim Indonesia as part of the on-going portfolio review. Closing of the transaction is subject to customary India: True North to pick up Shree regulatory approvals. Digvijay stake from Votorantim rivate equity company True North has signed Pa deal to buy Votorantim Cimentos’ direct and Uzbekistan: New plant mooted indirect 75% stake in Shree Digvijay Cement for an undisclosed sum. The acquisition will require epresentatives of Uzpromstroybank and Industrial and completion of a mandatory open offer to the mi- RCommercial Bank of China (UCBC) have met to discuss nority shareholders of Shree Digvijay Cement. JM investment projects in the country to boost local industrial Financial Limited is acting as the manager to the capacity. Proposals included expanding the production open offer. capacity of Kuvasoycement’s Kuvasay plant and the con- “Votorantim Cimentos has contributed sig- struction of a new cement plant, Yaypancement, according nificantly to the strategic initiatives taken at Shree to the Trend News Agency. Digvijay Cement over the last few years. This has strengthened its competitive positioning and has greatly improved its operating and financial Vietnam: Ha Thanh Cement blocked from performance. True North firmly believes in Shree building a new grinding plant Digvijay Cement’s competitive positioning and is looking forward to partnering with the existing a Thanh Cement has been blocked from building a management and employees of the company. H0.5Mt/yr grinding plant in the Tran De Industrial Park We are very excited about this opportunity. With in Soc Trang province. The Ministry of Construction said it fresh investment and new thinking we can create did not conform to current regulations, according to the a lot of value for all,” said Said Srikrishna Dwaram, Việt Nam News newspaper. The ministry added that the a partner with True North. company could not set up the grinding plant as there was no clinker line with the same output capacity in the region. It cited Planning 1488 on Vietnam’s cement development Pakistan: EPA closes Kohat line for the 2011 - 2020 period, with vision until 2030. Existing regulations require all cement grinding plants to accom- he Environmental Protection Agency (EPA) pany clinker production lines and do not allow for any Thas shut one of Kohat Cement’s production standalone grinding plants. lines for emitting too much dust, following local complaints. The EPA visited the company’s plant Pakistan: DG Khan water investigation and found that Line A at the unit was emitting particulate matter ‘much’ above legal limits, ac- he Supreme Court has appointed a special committee cording to the Balochistan Times. The other two Tto visit DG Khan’s cement plant in Chakwal to investi- lines at the plant were unaffected. gate how it stores water. The committee will report back to the court about the capacity of the reservoirs built by the plant as well as whether they were filled by extracting water from the aquifer or from rainwater. The committee will also take samples of water from the reservoirs. The court has been looking into how DG Khan and Best- way Cement set up cement plants in the Potohar region related to water issues at the nearby Katas Raj Temples. Pre- viously, the court was told that the DG Khan Cement was only operating tube-wells for domestic use by its workers but a witness alleged that the plants were extracting water for industrial use from the water table.

50 Global Cement Magazine December 2018 GLOBAL CEMENT NEWS: ASIA

India: JK Lakshmi’s income falls India: UltraTech / Binani deal approved

K Lakshmi Cement’s income fell slightly to he National Company Law Appellate Tribunal (NCLAT) JUS$250m in the first half of its financial year to Thas approved a revised bid by UltraTech Cement for 30 September 2018, from US$251m in the same pe- Binani Cement. The tribunal approved UltraTech’s resolu- riod in 2017. Its earnings before interest, taxation, tion plan and said that the plan submitted by Rajputana depreciation and amortisation (EBITDA) decreased Properties, a subsidiary of rival bidder Dalmia Bharat by 13% to US$29.4m from US433.7m. It has blamed group, was ‘discriminatory’ against some financial credi- the fall in its profitability on rising petcoke and die- tors, according to the Press Trust of India. In July 2018 the sel prices. Supreme Court transferred all matters related to corpo- In its half-year report it added that work on a rate insolvency resolution process of Binani Cement to 20MW power plant at its Durg cement plant is ex- the NCLAT Kolkata. pected to be completed by the end of March 2019. A cement grinding plant in Orissa is also expected to be finished from the start of 2019.

India: Stable India Cements

ndia Cements’ revenue has remained stable at IUS$379m in the first half of its financial year to 30 September 2018. Its profit more than halved to US$3.01m from US$6.91m. The cement producer is India: White plant re-tendered currently appealing against allegations of cartel- like behaviour by the Competition Commission of he Industries Department of Himachal Pradesh is India (CCI). In late October 2018 it said it was buying Tplanning to re-advertise the tender for a white ce- Springway Mining with the aim of eventually build- ment plant project at Sikridhar in the Chamba district. ing a new cement plant in Madhya Pradesh. The state government received no bids for the project in the last round of bidding, according to the Tribune newspaper. Only ACC expressed any interest in the process by Malaysia: CMS launches PLC product buying the big papers. The local government wants the project to be awarded ahya Mata Sarawak (CMS) has launched a new by May 2019 and it is expected to cost around US$138m. CPortland Limestone Cement (PLC) product. The project is a long running scheme that was first sug- The 32.5N strength product is targeted for low-rise gested in 2002. concrete structures such as single storey residential, office and commercial buildings. It is also intended for plastering, bricklaying and for use in the construction of drains and rural or kampong roads. Philippines: Eagle soars CMS has also been conducting trials with Universiti Malaysia Sarawak (UNIMAS) on testing it as a binder agle Cement’s sales grew by 9% year-on-year to for soil stabilisation. The new cement type will EUS$229m for the first nine months of 2018. It attrib- complement CMS’ existing Portland Cement 42.5N uted the growth to rising cement demand in the country product. due to government infrastructure project, according to the Philippine Star. Its income grew by 6% to US$65.8m. The company is planning to upgrade the grinding capac- China: Smart deal for Anhui ity of its plant in Bulacan in 2019.

nhui Conch IT Engineering has struck Aa deal to supply equipment and soft- Cambodia: Sales from first nine months ware design services to Anhui Conch’s plants as part of a smart factory project. he four local cement plants produced 3.67Mt of cement in the The contract has a value of US$12.5m Tfirst nine months of 2018. The Ministry of Industry and Handi- with previously related work over the last craft also said that two more plants will open in December 2018. year having an additional value of around Kampot Cement produced 2.21Mt, Cambodia Cement Chakrey US$11m. The work is intended to support produced 1.22Mt, Chip Mong Insee Cement produced 0.12Mt and the company’s aggregate project con- Battambang Conch Cement produced 0.11Mt. The new plants to struction and enhance its production lines. be opened are Southern Cement and Thai Boon Rong (Cement).

Global Cement Magazine December 2018 51 GLOBAL CEMENT NEWS: MIDDLE EAST & AFRICA

Contents Kenya: ARM advisors court Dangote after PWC writes off bad loans

Subscribe dvisors to ARM Cement have approached Nigeria’s ARM Cement had treated its debt to Maweni Lime- ADangote Cement about a potential sale, according stone as a performing loan, despite the fact that the Ad Index to a source quoted by Reuters. The news follows report- subsidiary had repeatedly defaulted on it, effectively ing by Bloomberg that Dangote misleading investors as to the had expressed an interest in company’s value. The write-off buying ARM. Owner Aliko Dan- has left ARM Cement’s creditors, gote also said in an interview including the UK government- that his company was in talks backed CDC Group, in negative with an ‘unnamed company’ equity to the tune of US$24m. about potential acquisition Other irregularities that have in Kenya and Tanzania. ARM been discovered amount to Cement was placed in adminis- US$1.5m. These issues include tration in August 2018. alleged outstanding direc- The reported discussions tor pay, payments to mystery with Dangote Cement came customers and a payment after ARM’s administrators of US$0.4m for ‘fixtures wrote off loans worth around and fittings.’ US$210m to Maweni Lime- ARM Cement owns an in- stone, a subsidiary in Tanzania. The decision by the tegrated cement plant at Tanga and a grinding plant PricewaterhouseCoopers (PWC) administrators has in Dar es Salaam that is currently not in operation. significantly reduced the cement producer’s assets to It is also building a grinding plant in Tanga that US$140m from US$362m. In a report PWC alleges that remains unfinished.

Egypt: Kima to sell off National Cement land

he Egyptian Chemical Industries Company (Kima) plans to sell the Tland belonging to National Cement within the next year. Chief executive officer (CEO) Emad el-Din Mostafa said that the bankrupt cement producer owns over 300 hectares of land, according to Arab Finance. Selling the assets is part of the Ministry of Public Business Sector’s strategy to pay the former cement producer’s debts, including worker salaries. The sale is expected to generate up to US$39m.

Egypt: Helwan can sell white cement plant Nigeria: BUA upgrade

he shareholders of Helwan Cement have approved the UA Group has completed Tsale of its white cement plant in Minya Governorate to Ban upgrade at its Obu Emmar Industries. Helwan Cement, a 99.5% subsidiary owned plant at Okpella in Edo State. by HeidelbergCement and Suez Cement, previously said that The new 3Mt/yr production the sale was part of its plan to restructure the business and line has increased the plant’s improve its financial position. production capacity to 6Mt/yr.

Ivory Coast: Capacity hits 10Mt/yr South Africa: Sephaku sales rise

avier Saint-Martin-Tillet, the head of the ephaku Holding’s revenue rose by 5% to US$32.1m in the XIvory Coast Cement Association, says that Ssix months to 30 September 2018 from US$30.7m in the the country has a cement production capacity same period in 2017. Its profit nearly doubled to US$1.8m. of 10Mt/yr. However, the local market is esti- The subsidiary of Nigeria’s Dangote Cement said that cement mated to only consume 4Mt/yr, according to the prices had increased in most markets. It added that competi- Agence de Presse Africaine. Saint-Martin-Tillet tion from cement importers and grinding plants had placed made the comment at the Abidjan Infrastruc- pressure on its cement sales volumes in the Kwa-Zulu Natal ture Exhibition. province in the latest quarter.

52 Global Cement Magazine December 2018 GLOBAL CEMENT NEWS: MIDDLE EAST & AFRICA

Nigeria: Dangote Cement’s sales grow by 11.7% in first nine months

omestic sales volumes of cement by Dangote Ce- “Nigerian sales were affected by serious flooding in Dment grew by 11.7% year-on-year to 10.8Mt in the September 2018 and although Pan-African sales were first nine months of 2018, from 9.6Mt in the same pe- flat, we will see soon increased sales from Tanzania, riod in 2017. However, sales in Sub-Saharan Africa grew now that its gas turbines are installed, and from Ethio- slightly to 7Mt due to lower sales in Tanzania, disrup- pia as local community issues are resolved. We have tions due to civil unrest in Ethiopia and a reduction in launched new products in Nigeria that we believe will exports from Nigeria to Ghana. This was mitigated by help us improve our leadership position in Africa’s most growing sales volumes in Zambia, Sierra Leone and the exciting market for cement,” said Joe Makoju, Group start-up of operations in the Republic of Congo. The ce- Chief Executive Officer (CEO). ment company’s revenue rose by 13.5% to US$1.89bn from US$1.66bn and its earnings before interest, taxation, depreciation and amortisation (EBITDA) increased Senegal: Cement prices fixed by 14.6% to US$928m from US$810m. he Ministry of Commerce has fixed a maximum Tprice of cement to protect consumers. The ministry said it had made the decision following reports Palestine: Al Jouf to export clinker of a rise in the price of cement in early October 2018. The minister invited all cement plants in the country audi Arabia’s Al Jouf Cement has signed a deal with to comply with the new regulations. SSanad Trading and Marketing to export 50,000t/yr of cement and clinker. The financial impact from the agreement is expected to be noticed from the middle Republic of Congo: Diamond plant of the fourth quarter of 2018 onwards. The deal follows ready for inauguration a memorandum of understanding that was signed between the companies in August 2018. he Congolese Ministry of Industry says that it is Tready to inaugurate the Diamond cement plant. The new plant is located in the district of Mindouli, about 200km south of Brazzaville. The 0.1Mt/yr unit started production in early 2018 at a cost of around US$100m. The project had previously been delayed by four years due to local security issues. The plant will be the fifth cement plant in the country and will bring local cement production capacity to over 3.0Mt/yr.

Ghana: CMAG welcomes building code Saudi Arabia: Saudi Cement revenue he Cement Manufacturers Association of Ghana down in first nine months T(CMAG) has praised the introduction of the country’s first building code. The Building Code for Ghana audi Cement’s sales revenue fell by 5.8% to was launched by Vice President Mahamudu Bawumia SUS$217m in the first nine months of 2018 from in late October 2018, according to the Ghana Multime- US$231m in the same period in 2017. Its net profit dia Group. The 1700-page document, in 38 sections, after tax decreased by 20% to US$73.5m from covers all essential areas for the operation of the build- US$92.2m. The cement producer has blamed falling ing and construction industry. The production and sales, rising costs and an increase in Islamic finance launch of the code is intended to end irregularities in charges for its declining profits. the building and construction sector and set standards to ensure that local construction is safe and meets international standards. Jordan: Legal land dispute “Today is a very significant day in the annals of the history of this country. For the first time ever, through ordan Cement Company is in a legal dispute with the collaborative efforts of different agencies, Ghana Jlocal landowners over land ‘illegally’ acquired near has a comprehensive Building Code. The Ghana Build- its Fuheis plant. The plaintiffs argue that forgery was ing Code, GS1207 of 2018 is a document that is long used by the company in acquiring land, according to overdue but which has finally been delivered,” said Roya TV. The subsidiary of Switzerland’s LafargeHol- Bawumia. He added that the code would reassure peo- cim operates two integrated plants, at Fuheis and ple about the risk of collapsing buildings. Rashadiyah.

Global Cement Magazine December 2018 53 GLOBAL CEMENT: EAST AFRICA Contents Subscribe Ad Index

Peter Edwards, Global Cement Magazine

Cement in East Africa

This article looks at the cement sectors of 10 East African nations: Burundi, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, South Sudan, Sudan, Tanzania and Uganda.

he 10 countries covered in Tthis article share 45.8Mt/yr of cement capacity and are home to Right: Looking out over the more than 335 million people. The Haven of Peace, Dar Es Salaam, region is dominated by smaller, Tanzania. Dar Es Salaam is independent cement producers, the region’s largest city, with around 4.5 million inhabitants with some presence from regional in 2017. players and selected multinational players. Table 1 ranks the countries by installed cement capacity. The top 5 producers by installed capacity are shown in Table 2. Figure 1 shows how the market is split between different types of producer. Country Integrated Grinding Total (Mt/yr) (Mt/yr) (Mt/yr) Burundi Ethiopia 13.8 0.2 14.0 Tanzania 9.1 0.9 10.0 The Republic of Burundi Right - Table 1: East Kenya 6.4 2.1 8.5 African countries, ranked is a land-locked country according to installed in the African Great Sudan 7.1 - 7.1 cement capacity in 2018. Lakes region. It gained Uganda 2.6 2.2 4.8 Source: Research towards independence from Bel- Global Cement Directory 2019. Rwanda 0.6 0.1 0.7 gium in 1962 and remains predominantly rural and Eritrea 0.4 - 0.4 economically undeveloped. This is due in part to long periods of civil conflict, ethnic cleansing and the Djibouti - 0.2 0.2 suppression of political opponents throughout the Burundi - 0.1 0.1 second half of the 20th Century. In 2018 the World South Sudan - - - Happiness Report found Burundi to be the least TOTAL 40.0 5.8 45.8 happy nation on earth. Burundi has one cement producer, Bu- rundi Cement Company (BUCECO). It has a 0.1Mt/yr grinding plant in Cibitoke, near to the GLOBAL capital Bujumbura. The company was established PRODUCERS in 2004 by local businessman Tribert Rujugiro 5.9Mt/yr Ayabatwa, although production did not begin until 13% 2011, when the plant made just 34,500t. In June 2014 SINGLE Burundi AG News reported that the plant had se- REGIONAL PLANT (African cured permission to ‘start exploitation of limestone’ PRODUCERS MULTI-PLANT & Asian) PRODUCERS on the perimeter of its grinding plant. It is not 26.5Mt/yr PRODUCERS thought that this relates to plans to begin clinker (Within a country) 58% 12.0Mt/yr production at the site. 1.4Mt/yr 26% 3%

Right - Figure 1: East African cement capacity by type of producer. Source: Research towards Global Cement Directory 2019.

54 Global Cement Magazine December 2018 GLOBAL CEMENT: EAST AFRICA

ERITREA ERITREA ERITREA SUDAN 0.4Mt/yr SUDAN US$582 SUDAN 89kg 7.1Mt/yr US$2898 198kg DJIBOUTI DJIBOUTI DJIBOUTI 0.2Mt/yr US$1927 200kg ETHIOPIA ETHIOPIA ETHIOPIA SOUTH 14.0Mt/yr SOUTH SUDAN US$767 SOUTH SUDAN 133kg SUDAN US$237 Okg

UGANDA UGANDA UGANDA 4.8Mt/yr KENYA US$580 KENYA 112kg KENYA 8.5Mt/yr US$1507 171kg RWANDA RWANDA RWANDA 0.7Mt/yr US$748 57kg >10Mt/yr 151-200kg/capita BURUNDI TANZANIA 5-10Mt/yr BURUNDI TANZANIA >US$2000 BURUNDI TANZANIA 101-150kg/capita O.1Mt/yr 10.0Mt/yr 2-5Mt/yr US$320 US$936 US$1000-2000 9kg 175kg 51-100kg/capita <2Mt/yr US$500-1000 1-50kg/capita 0Mt/yr

Above - Figure 2: Cement capacity of East African countries. Above - Figure 3: GDP/capita (US$) of East African countries. Above - Figure 4: Capacity/Population of East African countries. Source: Research towards Global Cement Directory 2019. Source: World Bank Data Indicators. Calculated from Figure 2 and World Bank Data Indicators.

Rank Parent Company Capacity Headquarters armed struggle. Independence has, to date, not (Mt/yr) brought economic prosperity. The country has been under single-party rule since 1993 and 80% of in- Left - Table 2: Top 5 cement 1 Dangote Cement 5.5 Nigeria producers in East Africa, by habitants are subsistence farmers. The country has a 2 LafargeHolcim 4.6 Switzerland installed capacity. poor human rights record, highlighted by its reputa- Source: Research towards 3 Messebo Cement 3.2 Ethiopia tion for indefinite forced conscription. Global Cement Directory 2019. 4 ARM Cement 3.1 Kenya Eritrea’s small economy currently demands 5 Derba Midroc 2.5 Ethiopia limited amounts of cement, historically similar to the capacity of the country’s two integrated cement plants. The country has a 0.1Mt/yr plant in Massawa, Djibouti run by Massawa Cement, and the 0.3Mt/yr Gedem Cement plant, also in Massawa. Massawa Cement Located on the Horn has been established the longest, with Gedem Ce- of Africa, the Repub- ment starting production in 2011. lic of Djibouti is a In the past small amounts of cement have been former French colony exported from Eritrea to Qatar. However, cement that gained independ- is now being imported more easily from Ethiopia, ence in 1977. Strategically located near to major following normalisation of relations between the shipping lanes, the small country acts as a major two countries in September 2018. The flow of -ce refuelling and transshipment port. Internal conflict ment from Ethiopia to Eritrea suggests that Eritrea during the 1980s and 1990s led to a power-sharing may now be in need of additional domestic capacity, agreement between the government and opposition although no expansions or new plants have been an- in 2000. Protests against de-facto one-party rule in nounced. An estimated 50t/day of cement have been 2011, as part of the wider Arab Spring movement, transported from Adigrat in Ethiopia to three border led to elections in 2013, which were won by the in- towns in Eritrea, since the end of September 2018, cumbent Ismaïl Omar Guelleh. according to local press. Djibouti’s only cement plant is Cimenterie d’Ali Sabieh’s grinding plant at Gabode. The 0.2Mt/yr ca- Ethiopia pacity plant was established in 10 July 2012 and was inaugurated by President Guelleh in February 2013. Unlike the rest of Africa, Ethiopia was not Eritrea colonised by European powers, but its own Formerly part of monarchy was toppled Ethiopia, Eritrea gained by a military junta in 1974. The junta set up a so- independence in 1991 cialist state that ‘presided’ over civil war in the 1970s following a 30 year and the drought that led to Band Aid in the 1980s.

Global Cement Magazine December 2018 55 GLOBAL CEMENT: EAST AFRICA

one integrated plant (1.2Mt/yr) and one grinding plant (0.2Mt/yr). Ethio Cement operates a cement Right - Figure 2: plant at Chancho, north of the capital Addis Ababa. Habesha Cement at night, shortly after commissioning. Kenya Source: Habesha Cement website. The Republic of Kenya is a former British colony that was liberated by revolutionary Jomo Kenyatta in 1963. He led the country until his death in 1978 when the country In 1991 the Ethiopian People’s Revolutionary Demo- became a de-facto one-party state until 1991. So far, cratic Front overthrew the government and free the 21st Century has seen the country’s elections elections were held for the first time in 1995. Since marred by violence, although the most recent elec- then, the country has enjoyed better fortunes. GDP/ tions, in October 2017, were relatively calm. capita increased more than five-fold between 1995 Kenya has six operational integrated plants and and 2017, albeit to just US$767/capita. three grinding plants. They share 8.5Mt/yr of cement Ethiopia is home to the largest cement sector capacity. The largest producer is Bamburi Cement, among the 10 countries in this review, with a total 58.6% owned by LafargeHolcim. It operates a 1.5Mt/ capacity of 14.0Mt/yr. There are nine integrated yr grinding plant at Nairobi and a 1.1Mt/yr inte- plants and one grinding plant. The country’s cement grated plant in Mombasa. 0.9Mt/yr of the grinding industry is dominated by domestic producers. This plant’s capacity was completed via an expansion in is due in part to the country’s unusual land owner- July 2018. Full commissioning of the plant is ex- ship laws. All land is owned by the government and pected to take place before the start of 2019. individuals and businesses must lease it. Entry into Also with an integrated plant in Mombassa is the cement sector, which requires significant capital Kenya’s second-largest cement producer Mombassa investment on government land, has been tricky in Cement, which expanded its facility to 1.6Mt/yr the past, although Nigeria’s Dangote Cement did from 0.8Mt/yr in 2012. enter the market in 2015. In February 2018 National Cement opened a The largest cement producer in Ethiopia is 1.2Mt/yr integrated plant in Kajiado County. By Messebo Cement, which has operated an integrated doing so it became Kenya’s joint third-largest cement cement plant in Tirgay since 2001. The plant began producer by installed capacity. Kenyan President with a capacity of 2.2Mt/yr (one FLSmidth line) but Uhuru Kenyatta inaugurated the US$280m plant, it was expanded to 3.2Mt/yr via the addition of a which also includes a 15MW captive power plant. 1.0Mt/yr line by China’s Hefei Cement Research and The other producer with 1.2Mt/yr of capacity is Design Institute in 2011. Savannah Cement, which operates a plant in Athi There are currently two cement producers with River. It is reported to be extending the plant to the second-largest production capacity. These are 2.4Mt/yr. Derba Midroc, which has operated a 2.5Mt/yr in- ARM Cement operates a 0.7Mt/yr integrated tegrated plant at Derba since 2012, and Nigeria’s plant in Kaloleni. The company has been placed in Dangote Cement, which commissioned its 2.5Mt/yr administration and is also dealing with the fall-out plant in Mugher in 2015. As soon as the plant was of alleged financial irregularities. commissioned, Dangote announced that it would Also troubled at the moment is East African Port- double its capacity. This has not transpired, follow- land Cement (EAPC), which runs Kenya’s smallest ing weaker than expected performances across some integrated cement plant, a 0.6Mt/yr facility in Athi of its markets and a desire to focus on its core mar- River. It owes money to more than 400 of its work- kets in the west of Africa. ers. EAPC’s managing director Simon Ole Nkeri The third-largest producer is Mugher Cement, was recently questioned by the National Assembly which operates a 1.6Mt/yr plant. It began production Trade, Industry and Cooperative committee of the in 2007 with a capacity of around 0.7Mt/yr but was Parliament of Kenya. He told the committee that the expanded via a Chinese contract in 2011. company has considered the almost US$14m it owes Habesha Cement operates a 1.4Mt/yr integrated its workers but he was unable to provide a payment plant at Holeta in Oromia State. Originally set to be schedule. in production by the close of 2012, the project ex- The final player in the Kenyan cement market is perienced difficulities before 27% was purchased by Karsan Ramji & Sons, which operates Cemengal’s South Africa’s PPC. It began production of cement Plug&Grind units at two locations. It has a total ca- in January 2017. PPC’s stake is now 38%. Elsewhere, pacity of 0.6Mt/yr. National Cement operates 1.4Mt/yr of capacity, with

56 Global Cement Magazine December 2018 CEMENGAL December 2018.indd 1 26/11/2018 14:01 GLOBAL CEMENT: EAST AFRICA

A number of other cement plants have been South Sudanese cement plant, if there is to be one, proposed for the Kenyan market in recent years, will result from careful and steady negotiations be- with many falling by the wayside. Cemtech Sanghi tween the two Sudans to resolve border disputes and was reported to be building a 1.2Mt/yr integrated negotiate deals regarding the transportation and sale plant as far back as 2010. Construction on this of oil. However, such a plant would be at risk from Indian-backed project shows no signs of starting. imports from South Sudan’s southern neighbours, Elsewhere Dangote Cement was reported to be plan- particularly Ethiopia. ning a 3.0Mt/yr plant in Kitui for 2019. However, the company now states that it will delay entry to the Sudan Kenyan market until 2021. Sudan achieved inde- Rwanda pendence from the UK in 1956 but then entered A small nation in the prolonged civil wars for African Great Lakes, the much of the remainder of the 20th Century. The re- Republic of Rwanda is a sult is that Sudan remains an impoverished nation. It former Belgian colony lost part of its southern territory when South Sudan that predominantly was established in 2011. relies on agriculture and subsistence farming. The The country has six integrated cement plants, country is unfortunately most widely known for the each of which is run by a different local operator. 1994 genocide by the Hutu majority government They are mainly clustered around limestone deposits against the ethnic Tutsi population. An estimated in the north east. On the face of it, the cement indus- 0.5-1.0 million people were killed and a further 2.0 try of Sudan appears to be in rude health. However, million were displaced. The country has since stabi- like many other industries, fuel supply issues dog the lised, albeit under de-facto one-party rule. sector. Most of the supplies that producers relied on The country’s cement sector is small, with around are now located in what has become South Sudan. 0.7Mt/yr of capacity. Cimerwa, 51% owned by South Atbara Cement operates the largest cement plant, Africa’s PPC, operates a 0.6Mt/yr integrated plant a 1.8Mt/yr dry line facility at Atbara. It is also the in Cyangugu and Kenya’s ARM Cement controls oldest continually operating plant in the country. a 0.1Mt/yr grinding plant in Kigali. ARM is in the Al Takamol Cement is the second-largest cement process of trying to sell the plant in order to reduce producer in Sudan, with a capacity of 1.6Mt/yr. its debt and focus on its core plants. However, an The US$253m FLSmidth plant came online in earlier attempt to sell the plant led to just one bid, January 2011 as the result of investment from Egypt’s of US$113,000, less than 10% of the estimated ASEC Cement. US$1.4m market value. Two cement plants, Berber Cement and Al In August 2018 construction work began on Shamal Cement, each have a capacity of 1.4Mt/yr. Prime Cement’s new grinding plant in Musanze Berber, a development conducted with National District. The subsidiary of Milbridge Group plans Cement Company of Dubai, UAE, entered the Su- to complete the unit by mid-2019. The plant, to be danese market in 2010. Al Shamal Cement is a plant built by Denmark’s FLSmidth, is expected to have a cement production capacity of 0.7Mt/yr, which would double Rwanda’s national capacity. The firm eventually plans to expands this to 1.2Mt/yr.

South Sudan

The newest country in the world, South Sudan seceeded from Sudan on 9 July 2011 following Right: Aerial view of Juba, the capital of South Sudan, with the almost half a century of civil conflict. Infrastructure River Nile to the right. and links to global markets are major stumbling blocks for the oil-rich yet landlocked state. Oil exports are hampered by tense relations with Sudan, which is home to the ports that used to export oil from the territory when it was part of Sudan. The opposite is the case for cement, in that South Sudan relies on Sudan. Supplies are irregular and expensive, although demand is also low. A future

58 Global Cement Magazine December 2018 GLOBAL CEMENT: EAST AFRICA

operated by Mass Group Holdings of Iraq. It worked Cement) and a grinding cement plant in Dar Es in collaboration with Japan’s Taiheiyo Cement and Salaam (0.8Mt/yr). ARM Cement, based in Kenya, Germany’s KHD Humboldt Wedag, which supplied has been placed into administration following finan- major equipment, to bring Al Shamal online in 2005. cial difficulities and accusations of irregularities. The Al Salam Cement is another more recent player, grinding plant has been temporarily shuttered as the construction of which was contracted to Su- a result. danese consultant firm Karplen Consultants. The Tanga Cement (Afrisam) and Tanzania Portland US$150m, 0.6Mt/yr plant was built in 2005. Cement (HeidelbergCement) both operate inter- The final player in the Sudanese market is Nile grated plants with 1.3Mt/yr of capacity each, making Cement, first constructed in 1967 as a 350t/day line. them joint third-largest producers by this metric. It is now a 1000t/day (~0.3Mt/yr) facility. It is the LafargeHolcim also has a presence via M’beya Ce- only cement plant located in the south of Sudan. ment (1.1Mt/yr), making it the fourth-largest player. Two smaller players, Lee Building Materials Tanzania (0.3Mt/yr) and Nyati Cement (0.5Mt/yr) round out the market. Formed by the merger of Tanganyika and Uganda Zanzibar after the de- parture of the British in The Republic of Uganda the 1960s, Tanzania is a gained independence country rich in natural in 1962 from the UK. resources. One party rule was brought to a close in Formed from a number 1995 after nearly 20 years. Today the country is the of previously warring most politically stable among those in this review, factions, the new coun- although government intimidation of opposition try was poorly equipped to navigate the challenges figures in recent by-elections has led to the main op- of independence, leading to a series of dictators. position party boycotting the electoral process. The most notorious of these was Idi Amin, who had There are eight active cement plants in Tanzania, many thousands of opponents exiled or killed in the seven integrated plants and one grinding plant. They 1970s. Recent leaders have represented significant share 10.0Mt/yr of capacity. The largest producer is improvement. Multiple political parties were al- Dangote Cement, which opened a 3.0Mt/yr plant lowed for the first time in 19 years in 2005. Economic in Mtwara in December 2015. In October 2018 the reforms over the past 25 years have enabled Uganda plant inaugurated a new natural gas connection to make better use of its abundant resources, which to replace diesel generators. It is expected that the include oil. price of the cement made at the plant will now fall as Uganda’s two cement producers, Hima Ce- a result. ment and Tororo Cement, both trace their history The second-largest producer by installed ca- back to Uganda Cement Industries, a state-run pacity is ARM Cement, based in Kenya. It has company that was privatised in 1994. Hima is now a 1.6Mt/yr integrated plant in Tanga (Tanga 71.01% owned by LafargeHolcim. It operates a 0.9Mt/yr integrated cement plant that was significantly expanded by Lafarge prior to its merger with Holcim. Tororo Cement now has a capacity of 1.7Mt/yr following extensive investment in the formerly ‘dilapidated’ works. The third producer in Uganda is Kampala Cement, which operates a 1.2Mt/yr grinding plant in Namataba. In August 2018 Uganda gained another cement player, Simba Cement. President Yoweri Museveni opened a grinding plant in Tororo District with a capacity of 1.0Mt/yr. As elsewhere in the region, Uganda has seen a fair number of cement plant announced in recent years. These include a 3.0Mt/yr plant from EAM Cement (first proposed in December 2016), Lake Cement (reportedly due by mid-2018) and a reported US$1bn, export-focused 2.5Mt/yr project by Hengya Cement (announced December 2017).

Global Cement Magazine 59 GLOBAL CEMENT: EVENT REVIEW Contents Subscribe Ad Index

Robert McCaffrey, Global Cement Magazine

Review: 23rd AUCBM Arab-International Cement Conference & Exhibition, Amman

The well-organised 23rd AUCBM Arab-International Cement Conference and Exhibition has successfully taken place in Amman, Jordan, with around 600 registered delegates, a busy conference room, a well-attended gala dinner and a large and bustling exhibition area. The 24th AUCBM event will take place in November 2019 in Cairo, Egypt.

he 23rd AUCBM Arab-International Cement Yassine Touahri of On Field Investment Research, Below left: Following the Conference and Exhibition was inaugurated by from the UK, gave the first paper at the conference, opening of the exhibition, dig- T nitaries made a tour of stands, Eng. Ahmad Al-Rousan, secretary-general of the on the three main ‘disruptions’ that including that of Refratechnik, AUCBM, who welcomed delegates from 35 coun- the cement industry will encounter reknowned German supplier tries to the event. in the coming years. The first, he said, of refractory materials for the Many papers were given over the course of was that of CO2. Demography is the cement industry. two-and-a-half days of the conference. Highlights starting point for the coming disrup- Below middle: Assembled include the unveiling of details of FLSmidth’s new tion from CO2, with a 27% increase in dignitaries and delegates counter-current cyclone technology; a paper given global population between 2018 and at the opening ceremony of by Andy Hill on SubCoal AF pellets and wider 2015 driving the need for housing and the 23rd Arab-International trends in alternative fuels markets; a well-presented infrastrucutre and therefore for cement Cement Conference. paper by Mogens Fons of Fons Technology Inter- and concrete. Compared to 1950 when national on the working concept of the Fons Delta only 55% of humans lived in cities, by 2050 two out Below right: An Assyrian Lamassu greeted visitors to Cooler; details on the eye-popping six side-by-side of three, 66%, will do so. CO2 is becoming a par- the conference hotel. 6000t/day clinker lines built in record time at Beni ticular challenge for the construction and building Suef in Egypt by Sinoma-CDI; and Ingo Urbach’s materials industries, since 40% of all CO2 emissions paper on behalf of IBAU Hamburg on the design of are linked to the construction industry, through the Bottom: Amman skyline, tailor-made cement terminals using state-of-the-art construction or operation of buildings. There is no from the conference hotel. cement handling and storage equipment. economically-viable substitute for clinker-based concrete, while cementitious by-products such as

60 Global Cement Magazine December 2018 GLOBAL CEMENT: EVENT REVIEW

slag and fly-ash will become scarcer as society decar- MENA countries, since these currently are not bonises the iron/steel and coal-fired power sectors covered by any CO2-reduction schemes. Turkey as well. The International Energy Agency cement alone could theoretically export 5-10Mt more emissions reduction ’road map’ relies heavily on due to its current economic downturn, while future carbon capture and storage, even though the overcapacity is building up in Egypt and Algeria. technology and economics are currently largely un- There is likely to be a major rationalisation in proven in practice. Changes in construction modes international clinker supply. Vietnam has taken (towards lower carbon emission intensity) are the place of China as the world’s largest clinker ex- inevitable to tackle climate change and more energy- porter (and in fact China imports around 33% of efficient buildings are ‘a must.’ Vietnam’s exportable surplus, due to the Chinese Emissions trading schemes are becoming more government’s own production rationalisation widespread worldwide, including the ever-ex- plans and seasonal closure of the worst-polluting panding EU ETS, regional permit trading in North Chinese factories). Due to the reduced availability America and China, and increasing use of carbon of Chinese clinker for export, Chinese clinker FOB Above: Ali Saeed Al Qahtani, taxes. The enforcement of stricter regulations on prices are increasing after touching a low of US$35/t MD of CemServ, Saudi Arabia. CO2 emissions is a certainty, and was discussed by in 2016 (and below US$30/t in 2006). Freight rates Below: Eng. Achmad governments during the Paris COP21 conference. have quadrupled since early 2016 and new rules to Al-Rousan, Secretary General Yassine pointed out that EU CO2 emissions permits promote the use of lower-sulphur fuel for shipping of the AUCBM (far left), wel- have more than tripled in price, from their low of will add around US$6/t to voyages of 30 days. Trans- comes delegates.

below Euro5/t in 2013, to beyond Euro20/t in 2018. oceanic trade will be less competitive, In the medium term, the CO2 price is projected to so that Asia to Africa trade will be replaced by Middle East to Africa trade. There may be strong demand for imports for post-war reconstruction in Iraq, Syria and Yemen. Above: A busy stand at the exhibition for Haver & Boecker.

Left: Roland Martini (L) and colleagues from Gebr. Pfeiffer, enjoying the exhibition.

Far left: Andy Hill presents an outlook on alternative fuels on behalf of N+P.

Below: Davide Gambarrotta (L) and Luca Mastrorocco of MDG.

Yassine Touahri suggested that the second major disruption will be the digi- talisation of the construction industry. Building Information Modelling (BIM) rise to Euro30-60/t. It is now more profitable is a digital process that allows for better to sell a company’s (still free) CO2 permits design, optimised construction, greater than to manufacture cement in Europe and energy-efficiency during operation and to export it to most parts of coastal Africa. thorough deconstruction and recycling at Because of this, clinker and cement exports the end of the building’s life. Use of BIM from the EU to America and Africa are likely is becoming mandatory for public-sector to be progressively replaced by exports from projects and its uptake is now widespread

Global Cement Magazine December 2018 61 GLOBAL CEMENT: EVENT REVIEW

Above: A sea of cameras US$30/t less than in Europe and the US: they can greets the folkloric dancers at clearly make more money still. Given that produc- the event’s gala dinner. tion has peaked in China and is now in decline, Chinese cement companies are scrambling for inter- Right: Mondi had a stylish nationalisation, with a slew of acquisitions now on and well-located stand in the the cards. However, Western Europe, North America exhibition area. and Oceania are unlikely to be targets, due to the maturity of their markets: China is likely to aim for businesses in South America and Africa.

worldwide. BIM is likely to impact the cement and Right: Loesche’s stand some- concrete industry by allowing easier comparison times hosted mutliple discussions about the company’s of alternative building materials on the basis of popular VRM offering. performance and price, by reducing on-site wast- age and by making the tendering, pricing and distribution of materials more transparent. BIM

Right: Cooler-manufacturer- turned all-rounder IKN was busy throughout the meeting.

Far right: The event venue - Le Royal Hotel - was In conclusion, the 23rd AUCBM Arab-Inter- a world-class 5-star hotel - a good choice! national Conference was an enjoyable, interesting and worthwhiel event. We look forward to meeting again, in November 2019, in Cairo. Below: FLSmidth had a stylish and well-located stand, with plenty of staff ready to deal with enquiries.

will promote greater vertical in- tegration (with RMC companies) and will lead to significant market disruption through cutting-out ‘middlemen.’ Finally, Yassine concluded that the 21st century will be Chinese. Nine of the world’s top 15 largest cement producers are already Chi- nese. Chinese companies are now hugely cash-generative, but they are still selling cement at around

62 Global Cement Magazine December 2018 Contents Subscribe Ad Index GLOBAL CEMENT MAGAZINE: PRICES

Here Global Cement Magazine presents its the last six to seven years’ and that input monthly review of global cement prices, in costs and inflation had eaten into pro- US$ for easy comparison. Additional price ducers’ margins. Chouksey claimed information is only available to subscribers that in New Delhi, a 50kg bag of ce- to Global Cement Magazine. Subscribe on ment sells for just US$4.20. Page 64. In this issue subscribers receive “Just to recover the fuel cost and more price information from Senegal, transportation charges, will call for Pakistan, South Africa, Libya, Zimbabwe a minimum (increase) of US$0.35- and Honduras. 0.42/bag, which is about an 8-10% increase. (This) will Prices are for metric tonnes (t), unless bring us to the level where we stated otherwise. US$ conversions from were last year in terms of operating local currencies are correct at the time of margins.” original publication. Egypt: Ordinary Portland Cement prices as of 20 November 2018: Arabian Cement (Al Mosalah) = US$51.26/t; Arabian Cement (Al Nasr) Nigeria: Local press reported on 8 November 2018 = US$49.14/t; Elnahda Cement = US$48.02/t; that BUA Cement was working towards reducing Medcom Aswan Cement = US$48.02/t; Arish the price of its cement across Nigeria. Speaking Cement (Alaskary) = US$49.14/t; Arish Cement at a training event, BUA’s General Manager for the (Askary Beni Suef) = US$47.47/t; Sinai Cement South-South Region, Nasir Laden, stated that this (Sinai) = US$48.01/t; National Cement (Alfakher) = was despite rising energy and transportation costs. US$48.57/t; Suez Cement (Al Suez) = US$48.74/t; He hinted that a capacity increase, set to come on- Tourah Portland Cement (Tourah) = US$49.13/t; line in January 2019, would enable economies of Helwan Cement (Helwan) = US$49.13/t; Shora scale that could help to reduce prices. Cement (Al Shora) = US$48.01/t; Misr Beni Suef Cement = US$49.12/t; El Sewedy Cement = Philippines: APO Cement increased its cement US$51.24/t; South Valley Cement = US$48.18/t; product prices by US$0.19/bag (50kg) in Cebu Misr Cement Qena (Al Masalah) = US$48.01/t. and other areas in the Visayas region on 19 White cement prices as of 20 November 2018: November 2018. It stated that its production costs Sinai White Cement (Alabid Elada) = US$100.50/t; had ‘suddenly gone up,’ significantly impacting its Sinai White Cement (Super Sinai) = US$97.71/t; operations. El Menya Cement - Super Royal = US$97.71/t; El Menya Cement - Royal Elnada = US$98.79/t; Menya India: Cement prices could go up by up to 10% Helwan Cement = US$100.50/t. over the next six months in order to compensate Blended cement prices as of 20 November 2018: for increased fuel and transportation costs, ac- National Cement (Altawfir) = US$44.82/t; Helwan cording to the Cement Manufacturers Association Cement (Alwaha) = US$44.82/t. (CMA). The Indian cement sector has already grown Sulphate-resistant cement prices as of 20 by 14% so far in the 2018-2019 fiscal year, which November 2018: Lafarge (Kaher Albehar) = began on 1 April 2018. US$53.20/t; Suez Cement (Al Suez Sea Water) = Speaking to local press, CMA US$51.36/t; El Sewedy Cement (El Sewedy Al- President Shailendra Chouk- mukawem) = US$53.04/t. sey said, “There is a very dire need to correct cement pricing. In the past year we have seen 60-70% in- Do you have your finger on the cement crease in the cost price pulse where you are? of fuel. At least If so, Global Cement Magazine needs you! to recover some portion of this in- Contact: Peter Edwards crease, we need [email protected] to increase the prices of cement.” Regular contributors receive a free Chouksey added subscription to Global Cement Magazine! that cement prices have been ‘stagnant for

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Asbestos: What other building material nasties are lurking out there?

Peter Edwards Editor, Global Cement Magazine ([email protected])

am currently in the process of moving house. While The fact that these conditions can take decades to Ithis is a stressful life event, there’s not normally much present means that the grim legacy of asbestos, cer- to report: Pick up the keys, move your stuff over, notify tainly among those who produced asbestos-containing everyone of your new address and put the kettle on. The products and installers of the same, continues to this stress mainly happens before the actual move. day. The World Health Organisation (WHO) and However, that’s not been the case for me this time International Labour Organization (ILO) estimate that round. The property we have bought was previously around 255,000 lives are lost to asbestos every year,1 owned by someone who hadn’t changed anything 30-40 years after peak global production. Despite for 50 years. So, while we actually got the keys back the link between asbestos fibres and these conditions in October, the work to turn it into a ‘habitable fam- having been suspected since the early 1900s, peak pro- ily environment for the 21st Century,’ remains a work duction of asbestos did not peak until around 1980s. in progress. In the meantime, we’re staying (with two The WHO estimates that 125 million people remain young children) at my in-laws elsewhere in town. This exposed on an occupational basis every day. When situation could itself become the subject of an entire cheap, readily-available and safe alternatives exist, this future ‘Last Word.’ is completely unacceptable. During November, the renovation plans went well This morning, as we received confirmation that enough and it looked as if we would be in for Christmas there were indeed two types of asbestos in the house, - a challenging yet entirely attainable target. Wallpaper I was standing next to the plasterer, who was busying and carpet was removed. Electrics were upgraded and himself with the kitchen walls. “What are we doing a new hot water tank was installed. The bathroom is now...” he said, “...that’s like asbestos but we don’t know going in shortly and the kitchen is on order. Even the about it yet?” This is an interesting question that only paint colours have been chosen! leads to more questions: What exactly are the carci- Something had to go awry and now, staring down nogenic properties of the dust from the 50 year-old the barrel of Christmas, we’ve found asbestos, that infa- compacted carpet underlay that I’m breathing in? What mous material that haunts a large number of properties are the multi-decade effects of the resins from all of from the first half of the 20th Century. Now we must our cheap-yet-stylish flat-packed furniture? Why does notify the Health & Safety Executive and instruct a li- this plaster ooze more oil than it used to and could that censed (and no doubt expensive) removal firm to take be harmful? Will cement made with certain additives it all out. The time lost will not be regained. degrade over time, with health implications? Could ‘Asbestos’ is a term covering six naturally-occurring there be something else as bad as asbestos lurking in silicates, mined industrially since the late 1800s. The the house right now? We started to get quite worried. minerals’ common physical characteristic is their as- As the conversation shifted to the precautionary bestiform crystal structures. This means they are long principle, which states we shouldn’t actually use any and thin, with an aspect ratio of around 20:1. In bulk material until there is proof it is not harmful, the plas- this property leads to excellent themal resistance and terer concluded, “With that attitude, you’d never even fire-abatement properties, hence their use in older in- walk past a diesel engine. They are really bad!” He has sulating boards, cement boards (both of which afflict a point, but given that he’d just lit up a cigarette, the ‘Maison Edwards’), as well as gypsum wallboards and a conversation had become a bit hypothetical. Smoking host of other building products. surely has health outcomes far worse than any of the However, when disturbed, the fibres separate easily things on our hazards list. His response when I pointed as a very fine dust. They are easy to inhale and ingest, this out? “Yeah, but at least I know what smoking does!” becoming lodged deep in the lungs. Inhalation can Like the many manufacturers of asbestos, the plasterer lead to a variety of serious and fatal illnesses, including is happy with what he’s doing. Perhaps our attitude to lung cancer, mesothelioma and asbestosis. You know a risk is more risky than any material! building material is bad if it has a fatal disease named after it. 1. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5982039/

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Regional report: South America Features: Plant visit: Fushe Kruje, Albania, Photography Competition Winners Preview: 13th Global CemFuels Conference, Amsterdam Tips for 2019, Motors, Chains, Vibration Monitoring, Optimisation

66 Global Cement Magazine December 2018 LOESCHE’S LARGE CEMENT MILL TYPE LM 72.4+4 CS COMPLETES ITS PERFORMANCE TEST WITH BRILLIANT RESULTS.

One of the largest cement mills was purchased by DG Khan Cement Pakistan with the vision to curtail power consumption and keep minimum inventory due to commonality and interchangeability of spare parts between raw mill and cement mill. In September 2018, LOESCHE has successfully completed its performance test at the HUB cement plant in Pakistan. The LOESCHE mill type LM 72.4+4 CS has easily produced 460 tph of OPC Cement with 5 % Gypsum and 95 % Clinker at a product neness of 3,300 Blaine. Outstanding results have been achieved with regards to low speci c power consumption. The total consumption of the mill, classi er and fan was 24.4 kwh/t. This marks a historic milestone in the operation of very large cement mills. Auxiliaries within the total grinding plant have additional 1.6 kwh/t. A guarantee of 27.3 kwh/t was given at 3,200 Blaine. Our distinguished customer can expect even better operational results after one year of plant operation. Those values represent LOESCHE’s highly ef cient mill operation and LOESCHE’s philosophy of giving very conservative guarantee values. The mill operation is extremely smooth. Vibration levels are hardly measurable. As the cement mill was much earlier commissioned than the clinker production line, already in May 2018 the LM 72.4+4 CS produced cement with clinker from different sources at a neness of 3,900 Blaine.

In the very rst industrial operation this mill had excellent results, LM 72.4+4 AT HUB CEMENT PLANT, PAKISTAN too. Speci c power consumption of mill, fan and classi er then was 26.0 kwh/t. Average of the rst 40 hours of industrial production was 395 t/h at 3,900 Blaine. The excellent performance is a result of extensive research and development work of the LOESCHE process engineering divi- sion in Duesseldorf in cooperation with the LOESCHE group member aixergee, specialised in computer simulation, Aachen, Germany. Loesche is highly obliged to the owner, CEO and Manage- ment of DG Khan Cement Pakistan for reposing high level of con dence and trust on Loesche innovative technologies.

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