Global Cement news Markets Finance Capacity & Population Central Asia Modernisation Fans www.globalcement .com gl bal TM Contents Subscribe Ad Index 110 YEARS cement JANUARY 2016 MAGAZINE INNOVATIVE ENGINEERING 110 YEARS INNOVATIVE ENGINEERING 1906 – 2016 110 110 110 110 INNOVATIVE ENGINEERING INNOVATIVE ENGINEERING document4985916077946370497.indd 1 15.12.2015 13:52:01 CastService January 2016.indd 1 17/12/2015 15:09 Contents Subscribe Ad Index GLOBAL CEMENTNOVEMBER MAGAZINE2013 Global Cement news Markets Finance Capacity & Population Central Asia Modernisation Fans www.globalcement .com gl bal TM 110 YEARS cement JANUARY 2016 MAGAZINE This issue’s front cover... gl bal TM Happy New Year INNOVATIVE ENGINEERING 110 YEARS INNOVATIVE ENGINEERING Loesche GmbH is a privately owned company with headquarters 1906 – 2016 in Düsseldorf, Germany. Since 1906, Loesche GmbH has been 110 cement constructing vertical roller grinding mills. Patented in 1928, the MAGAZINE roller grinding mill technology has been continually advanced and in the meantime is synonymous with Loesche GmbH. 110 www.globalcement .com The new year 2016 will be a very special one – celebrating 110 110 Exclusive Official Magazine for years of Loesche GmbH and Loesche mills aroundINNOVATIVE the world! ENGINEERING INNOVATIVE ENGINEERING Global Cement Conferences: Global CemFuels, Global Slag, Global CemCoal, Global CemPower, We wish all our clients a very happy and successful new year 2016. Global EnviroCem, Global Boards, Global Well Cem, Global CemProcess. For more information please refer to: www.loesche.com document4985916077946370497.indd 1 15.12.2015 13:52:01 Editorial Director Dr Robert McCaffrey [email protected] Welcome to the January 2016 issue of Global Cement Magazine - the world’s most (+44) (0) 1372 840951 widely read cement magazine. We hope that the break over Christmas and/or New Year holidays has provided the opportunity to relax, reflect on the busy year that was 2015 Editor and prepare for the new challenges that 2016 will inevitably bring. Dr Peter Edwards [email protected] To help to start the year off on the right foot, this issue features a number of articles (+44) (0) 1372 840967 that show the current state of the cement industry and where it might be headed in the future. Kicking off,Global Cement’s Robert McCaffrey addresses the realities of Deputy Editor operating in the current ‘new normal’ or ‘post growth’ environment. How can producers Dr Amy Saunders in stagnant markets step up their economic performance (and survive) once all costs [email protected] have apparently been cut and all margins squeezed? Some of the answers may come (+44) (0) 1372 840955 from the finance sector (and others), as explained from Page 8 onwards. Also with an eye on what our sector can learn from other industries, Siemens’ Stuart Moran looks Web Editor at what pioneering firms are doing in terms of optimising the operation of drives and David Perilli [email protected] motors (Page 12). (+44) (0) 1372 840952 This issue also brings a round-up of recent merger and acquisition events, with RBS’ take on the LafargeHolcim merger, HeidelbergCement’s acquisition of Italcementi and where Commercial Director the future may be headed (Page 16). Continuing the ‘trend for trends’ Global Cement also Paul Brown presents an abridged version of the second part of the forthcoming Global Cement Top [email protected] Mobile: (+44) (0) 7767 475998 100 Report 2016. The excerpt analyses the cement industries of the countries with the largest cement capacities divided by their respective populations (Page 20). This process gives rise to some interesting results: The Top 10 by this metric are predominantly oil Business Development Executive producers; Cement industry leader China does not feature in the top 10 but Cyprus and Sören Rothfahl [email protected] Bhutan do; Second-largest cement producer India isn’t even in the top 100 places by Mobile: (+44) (0) 7850 669169 capacity/population - what an opportunity! Elsewhere, we have features on plant modernisation at Thatta Cement (Page 28), fans Company manager (Page 19) and Amy Saunders’ detailed look at the often-neglected ‘-stan’ countries of Sally Hope Central Asia (Page 44). The countries covered - Azerbaijan, Kazakhstan, Kyrgyzstan, [email protected] Tajikistan, Turkmenistan and Uzbekistan - have been attracting a lot of cement industry Subscriptions investment recently, especially in the past 12 months, with numerous plant upgrades Amanda Crow [email protected] and new projects in the offing. These six countries have a shared cement capacity of 70.1Mt/yr at present, but another ~27Mt/yr of capacity is already announced, planning or under construction - surely a region to watch in 2016! For full details on article submission, please see: www.GlobalCement.com We hope you enjoy this issue of Global Cement Magazine - the Dr Peter Edwards world’s most widely-read cement magazine! Editor ISSN: 1753-6812 Published by Pro Global Media Ltd First Floor, Adelphi Court 1 East Street, Epsom, Surrey, UK KT17 1BB Cement Printed on Forest Stewardship Council Tel: +44 (0)1372 743837 (switchboard) Industry (FSC®) certified papers by Pensord, Suppliers’ a company with ISO 14001:2004 Fax: +44 (0)1372 743838 Forum environmental certification. www.GlobalCement.com Global Cement Magazine January 2016 3 GLOBAL CEMENT CONTENTS NOVEMBERSubscribe Ad Index2013 Global Cement articles 8 The global growth pivot: Implications for cement Economic growth has stalled in a number of developed nations, while developing nations in south Asia, southeast 8 Asia and Africa are powering forward. This article examines the wider implications of future growth scenarios on the global cement industry. 12 Lessons in efficiency for the cement industry What can cement producers learn about drive integration and efficiency from other sectors? Siemen’s Stuart Moran thinks 12 some of the answers lie in the automotive sector. 16 Looking towards 2016: Mergers and acquisitions in the global cement sector 2015 was a memorable year for the cement sector with not only the LafargeHolcim merger but also the acquisition of 16 Italcementi by HeidelbergCement. Rupert Taylor from RBS summarises the key events and looks ahead to 2016. 19 Visiting Venti Oelde We report on the latest projects from expert cement industry fan producer Ventilatorenfabrik Oelde GmbH. 19 20 Excerpt: Global per-capita capacity trends In the second of two excerpts from the Global Cement Top 100 Report 2016, Peter Edwards looks at the interesting picture that emerges when you divide a country’s cement capacity by its population. 20 28 Thatta Cement: A journey towards technological advancement S M Imran describes a host of recent adaptations to the Thatta Cement plant that will help prepare the plant for Pakistan’s present and possible future demand scenarios. European cement 30 The View from Brussels Our regular column from Koen Coppenholle, the Chief Executive of CEMBUREAU, the European Cement Association. 28 4 Global Cement Magazine January 2016 www.GlobalCement.com GLOBAL CEMENTNOVEMBER CONTENTS2013 31 European cement news LafargeHolcim reports lower sales and operating EBITDA in 2015; HeidelbergCement’s Burglengenfeld cement plant to be upgraded; Used tyres to reduce costs at Irish Cement. 31 Cement in the Americas 37 American cement news Cementos Pacasmayo seeks expansion; Camargo Corrêa offers InterCement assets in debt recovery plan; Ecocem plant faces possible planning setback. 37 Asian cement 40 Asian cement news LafargeHolcim’s Australasian business is not up for sale; Republic Cement plans expansion; Hardtop casts a new mould; New line for Cong Thanh Group. 44 The cement industries of Central Asia 40 Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan have a shared capacity of 70Mt/yr at present, but massive investment means that another 27Mt/yr of capacity is due to come online in the next two years. Middle East and African cement 44 60 Middle East and African cement news Dangote Cement ‘killing local producers’; Mombasa Cement land grab investigated; Al Khalij Cement adds new duplicate cement line. Regulars and comment 44 63 Global cement prices Cement prices from around the world: Subscribers to Global Cement Magazine receive additional information. 64 Subscription form for Global Cement Magazine Use this form to subscribe to Global Cement Magazine, or subscribe online at www.GlobalCement.com. 60 65 The Last Word This issue: Will COP 21 influence global greenhouse gas emissions? Not while the biggest polluters are ignored... 66 Advertiser Index & Forthcoming issue features The list of this issue’s advertisers and a preview of the editorial contents of the next two issues. 63 www.GlobalCement.com Global Cement Magazine January 2016 5 GLOBAL CEMENT: DIARY DATES Contents Subscribe Ad Index 2nd Global Boards Conference POWTECH 2016 & Exhibition on cement-based boards 19-21 April 2016, Nuremberg, Germany 25-26 January 2016, London, UK www.powtech.de www.GlobalBoards.com Hanover Fair 2016 2nd International Conference on 25-29 April 2016, Hannover, Germany Advances in Cement and Concrete www.hannovermesse.de Technology in Africa 27-29 January 2016, Dar es Salaam, Tanzania 3rd Global EnviroCem Conference www.accta2016.bam.de & Exhibition 10-11 May 2016, London, UK 10th Global CemFuels Conference www.Environmental-Technology.com & Exhibition 22-23 February 2016, Prague, Czech IEEE-IAS/PCA Cement Conference Republic 15-19 May 2016, Dallas, Texas