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International Cement Review (ICR) is the trusted partner for thousands of companies operating in the cement industry each year.

Published monthly since 1988, ICR is respected for its timely, unrivalled editorial content that ensures it is read by CEOs, senior managers, engineers and all key decision makers. ICR enjoys the largest paid-for circulation compared to any other magazine in the sector.

Much more than a magazineICR is unique in being able to reach the industry through its exclusive network of leading brands:

CemNet.com – daily news and information portal

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The Global Cement Report – superior market intelligence

Cement Plant Operations Handbook – the industry reference

‘ICR has an unsurpassed brand reach. You can be confi dent your advertising spend will generate real value, maximising awareness of your products and infl uencing the people who matter the most – your current and future customers’

Meeting key marketing objectivesAchieve your key marketing objectives with ICR:

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Ensure your message is seen in every cement plant and by every key decision maker

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The global cement sector within reachAs an advertiser in ICR, you will benefi t from:

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join our network of leading brands senior, global readershipCloser to the readerAt International Cement Review we excel in bringing today’s cement professional timely information about the issues that matter: product development, technical expertise and market intelligence.

Our trusted editorial coverage ensures we are read by senior managers and engineers, providing you – the advertiser – with unmatched global access to key decision makers throughout the cement industry.

Unmatched reader profi leICR’s discerning readers are involved in all phases of planning, design, construction, operation and maintenance of cement production facilities. The individuals and companies listed below represent a typical sample of our regular readers.

Industry-leading online web portalwww.CemNet.com, the home of ICR on the web, offers a full range of content including daily news service, newsletters, B2B database, plant directory and online technical forum. Every issue of ICR is available in digital magazine format and subscribers have access to our 11-year ICR article archive. CemNet.com attracts 35-40,000 visitors each month* and offers a choice of banner advertising opportunities as well as targeted marketing solutions through its popular daily and weekly e-Newsletters. To view rates or for more information, contact us today! *Google Analytics

International cement conferences & exhibitionsCemtech Conferences & Exhibitions are the industry’s premier networking event for cement professionals. Organised by ICR, Cemtech events are held in Europe, the Middle East, Asia and the Americas, offering delegates the opportunity to learn more about the latest trends in cement markets and production technology. For exhibitors, our meetings offer a proven opportunity to establish new markets, promote new products and meet new contacts face-to-face. There is no more direct way to take your product to the market, initiate sales opportunities and communicate your brand. For more info, visit: www.Cemtech.com

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EACH MONTH

MANAGING DIRECTORConfi dence Cement Ltd (Bangladesh)

DIRECTOR

MANAGERCamargo Corrêa Cimentos S.A. (Brazil)

DIRECTOR Mizu SA (Brazil)

GENERAL MANAGER Votorantim Cimentos (Brazil)

DIRECTOR Cementos Bio Bio SA (Chile)

VP Anhui Conch Group (China)

PROCESS ENGINEER Cementos Argos (Colombia)

PLANT MANAGER

Vassiliko Cement Works (Cyprus)

PLANT MANAGER Domicem SA (Dominican Republic)

ENGINEER Sinai Cement (Egypt)

PLANT MANAGER Finnsementti OY (Finland)

PLANT MANAGER

PROCESS ENGINEER Vicat (France)

ANALYST McKinsey (Germany)

MANAGING DIRECTOR Schwenk Zement KG (Germany)

PROCUREMENT DIRECTOR Cemex (Germany)

PRODUCTION MANAGER

MANAGING DIRECTOR Titan Cement (Greece)

PLANT MANAGER

VP WORKSZuari Cement (India)

R&D DIRECTOR UltraTech Cement (India)

PRESIDENT Jaiprakash Industries (India)

OPERATIONS MANAGER Indocement Tunggal Prakarsa (Indonesia)

VP

PROJECTS MANAGERLafarge (Iraq)

MANAGER

Colacem SpA (Italy)

Sample of ICR readers

SENIOR MANAGERSumitomo Osaka Cement (Japan)

DIRECTORAthi River Mining (Kenya)

PRODUCTION DIRECTORTongyang Cement Co. (South Korea)

YTL Cement Berhad (Malaysia)

ENERGY ANALYSTCemex (Mexico)

EXECUTIVE DIRECTORDangote (Nigeria)

CEOAttock Cement (Pakistan)

DIRECTORLafarge (Pakistan)

OPERATIONS MANAGERCementos Lima (Peru)

PRESIDENTTaiheiyo Cement (Philippines)

PLANT MANAGERCarpatcement (Romania)

GENERAL MANAGERSouthern Province Cement (Saudi Arabia)

PROCUREMENT OFFICER

OPERATIONS MANAGERNPC-Cimpor (South Africa)

Uniland Cementera (Spain)

PROJECT MANAGERCemex (Spain)

CEO

Asia Cement (Thailand)

Trinidad Cement (Trinidad & Tobago)

GENERAL MANAGERAkcansa Cimento (Turkey)

TRADING DIRECTORCemex (UK)

GENERAL MANAGERSouthern Cement (UK)

LEAD ANALYSTBoston Consulting Group (USA)

QUALITY CONTROL MANAGERLehigh Cement Company (USA)

VP MANUFACTURINGAsh Grove Cement (USA)

Continental Cement Co. (USA)

PRODUCTION MANAGERNghi Son Cement Corp. (Vietnam)

GENERAL DIRECTOR

reader profi leTargeting decision makers meansincreased sales success.

submit an article to ICRIf you would like to discuss the editorial schedule in more detail, or submit an article to ICR, please contact:

Thomas Armstrong, Managing Editor t.armstrong@CemNet.com

INTERNATIONAL REPORT

84 ICR MAY 2012

With a surplus very much around the corner, the Nigeria cement sector is one of the

most exciting stories of recent years. For more than a decade, the country has relied upon significant quantities of imports – as much as 70 per cent of Nigerian cement consumption was met by imports in 2001. Seeing imports now barely at 20 per cent of local consumption is a big shift. An outlook of a surplus, possibly by the end of the year, is even more interesting. Beyond the change in the production/import dynamics of the cement sector, consumption patterns

have improved significantly. Though per capita consumption at 106kg still ranks comparatively low to other emerging markets, the 60 per cent growth in per capita consumption recorded over the last decade is an impressive feat.

Construction sectorNigeria’s construction activity cannot be said to have witnessed such a tremendous boom like some Asian and Middle Eastern countries, especially when the sector’s contribution to the country’s economic output is about two per cent. However, construction is one

of the most rapidly-expanding economic sectors in Nigeria. Provisional data from its National Bureau of Statistics indicated that it grew 12 per cent in 2011, the second-fastest developing sector after telecommunications. It is therefore not surprising to see such a rise in consumption per capita.

However, the historic growth cannot be compared with the intrinsic potential for cement consumption. Nigeria’s GDP growth at about seven per cent, puts the country amongst the fastest-moving in the world – but then the output gap may be as high as 16 per cent, considering the country’s infrastructure challenge and its mono-resource economy (see Figure 1). The inevitable task of improving the country’s physical infrastructure only suggests that Nigeria is posed to further witness rapid growth in its construction sector, with an implication for an unprecedented increase in cement consumption. Over the last decade, cement production capacity has risen to 27.5Mta from about 4.5Mta in 2001, with production plants now around nine.

In 2001, the average industry capacity utilisation rate hovered around 52 per cent, implying that effective local

Few countries in sub-Saharan Africa can hope to see their cement industry growth change so dramatically as in Nigeria, where cement capacity has been rising at a staggering rate. With a huge population estimated at 167m and a low cement per capita, the country has been somewhat groomed for such a rampant development phase and the signs are that by the end of this year or next, it will have a cement surplus to export.

by Oluwatosin Ojo, Vetiva Capital Management, Nigeria

INigeria comes of age

Ibese Cement plant, part of the Dangote Cement Group, was commissioined in February 2012

Figure 1: Nigerian building and construction GDP growth versus real GDP growth , 2005-11E

INTERNATIONAL REPORT

MAY 2012 ICR 85

production from plants was barely 2.4Mt (see Figure 2).

Government policy impactThe turning point in the Nigerian cement landscape occurred with the federal government’s backward integration policy in 2002. With this strategy, it became imperative for cement importers to invest in local production, in a bid to retain relevance in the industry. This eventually saw Dangote Industries build the 5Mta greenfield Obajana Cement plant, which was commissioned in 2007, alongside a brownfield expansion of Benue Cement Company (now part of Dangote Cement as Gboko plant division) to 3Mta capacity. Still a consequence of the policy, importers like the BUA Group pushed through with the aspiration of local production by acquiring the state-owned Edo Cement plant as well as buying off a majority stake in Cement Company of Northern Nigeria (CCNN).

Lafarge, which originally entered the

Nigerian market with the acquisition of Blue Circle Industries in 2001, further consolidated its position with an upgrade and the expansion of the Ewekoro plant in 2003 and more recently commissioned a 2.5Mta plant last year. Holcim gained access through a joint venture involving Lafarge (through the acquisition of Orascom Cement of Egypt) and Flour Mills of Nigeria Plc, leading to the commissioning of the 2.5Mta Unicem plant in 2009, in Mfamosing in the southern region. The increase in local cement production has led to a concurrent rise in consumption and hence prompted more cement plant investments. In February 2012, Dangote Cement commissioned a 6Mta cement plant in Ibese, southwest Nigeria.

The government’s support for local production has continued to wax stronger,

beyond the initial step relating to the backward integration policy. In August 2010, the federal government announced an increase in the tariff on cement imports to 35 per cent from five per cent – all in an effort to support local investment in cement production. In addition to this, cement producers, especially those that have commissioned new plants in the last five years, have enjoyed the tax incentive under the Pioneer Tax Status provision of the Nigerian Investment Promotion Council. Dangote Cement, Unicem and Lafarge have all benefitted. In the event of local surplus and the need for exports to neighbouring West African countries, cement producers also stand to gain from the federal government’s Export Expansion Grant Scheme, through which (subject to some pre-conditions) exporters can have up to 30 per cent of export

value reclaimed from the federal government.

Market dynamicsThe Nigerian cement industry is dominated by Dangote Cement (subsidiary of the local conglomerate Dangote Industries Ltd), which boasts around 65 per cent of total domestic production. Based on 2011 market share, extrapolated from cement consumption estimates from industry sources, the

2001 2011Company Location Capacity Company Location Capacity (Mta) (Mta)

Lafarge Ewekoro 1.3 Lafarge Ewekoro1 3.5 Shagamu 0.7 Shagamu 0.7 Ashaka 0.85 Ashaka 0.75BCC Gboko 0.9 Dangote Ibese 6Edo Cement Okpella 0.35 Gboko (former BCC) 3Sokoto Cement Sokoto 0.5 Obajana2 10 Unicem Calabar 2.5 CCNN Sokoto 0.5 Edo Okpella 0.35 1Lafarge has two plants in Ewekoro – the older one and newer Lakatabu plant commissioned in December 2011. 2Obajana plant includes the recent expansion by 5Mt, which should commence production before end of year

Table 1: Nigerian cement capacity 2001 versus 2011

Unicem’s preheater tower at Mfamosing

Figure 2: Nigerian cement consumption, production and imports, 2001-11E

INTERNATIONAL REPORT

IBrazil pumps up the volumeby ICR Research

Workers take a break at Lafarge’s Arcos cement

factory with the Polysius kiln pictured behind

40 ICR AUGUST 2012

Brazil’s cement market has blossomed in recent years. Sales exceeded

64Mt in 2011, an increase of 7.6 per cent YoY. Cement manufacturers

continue to add new capacity, but the economy has begun to slow

and the government has been forced to further supplement its public

spending on construction.

With automation as a main theme for this month’s ICR and Dr Clark’s major recent involvements among other regions, in Africa, the question arises what automation is appropriate for cement factories in the developing world? Dr Clark concludes that automation definitely has a role to play, but probably not the role that has traditionally been played in cement plants in the developed world. It is not that surprising that the moderator has increasingly found his involvement in these regions in recent years, as those are the parts of the world where the cement industry is growing. So his thoughts have turned to what automation should be providing for cement factories in Africa and the developing world.

Recently, he was in Senegal running the rule over one of the country’s major cement players, on behalf of one of the lending institutions. This proved to be a very impressive and well-managed cement factory and company. One of the points made was that the firm resisted the introduction of automation as there was a recognition of its social obligation to provide

employment. A prime example was not employing automatic bag

placers and other automation in all of its cement packing operations. These are roles that can be fulfilled by local labour and the opportunity to do so is very welcome and indeed necessary. Such an approach is entirely in line with the Cement Sustainability Initiative (CSI), whether or

not the cement company in question was signed up to that.

Having said that, there is clearly a role for automation of a cement factory in Africa or elsewhere in the developing world. A process

control system is entirely necessary in a modern cement factory. The complex technology involved could not be

deployed without the control system with its resident PID control loops, set points, controlled variables and manipulated variables. It is absolutely essential that instrumentation is installed for a cement factory to be properly operated and controlled. All these are vital aspects of automation.

The same can be said for online analysers monitoring raw material composition and the conditions within the process. This topic was only discussed three or four Technical Forums ago. But it is surely a legitimate question to ask whether a robotic laboratory is really appropriate for a cement factory in Africa?

Skilled work for sample preparation and analysis would be displaced by such a system. Such skills are entirely needed to provide calibration and back-up to such an automated laboratory system anyway. There is also the danger of introducing a layer of complication and obscurity between the people operating the cement

factory and the actions that are being taken to control quality. There have been instances of horrendous quality control issues when over-reliance is placed on such systems in the developed world. How much more likely would that be in

IAutomation for Africaby Dr Michael Clark, UKThe importance and desire for automated systems in a cement plant in

the developing world has to be balanced with the need of helping local

employment and training staff in the understanding of process control. It is

perhaps not the easiest of challenges to reconcile but the use of statistical

process control could teach and advise employees of the best way to

run the factory, supported by expert systems to assist correct adjustment

decision-making.

TECHNICAL FORUM

JULY 2012 ICR 71

Cement factories in Africa now have the potential to see automation as a valuable asset to improve plant performance

A prime example was not employing automatic bag placers and other automation in all of their cement packing operations. These are roles that can be fulfilled by local labour and the opportunity to do so is very welcome and indeed necessary.

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Cemtech Middle Eastand Africa

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A comprehensive guide to the seaborne distribution of cement and clinker

1st Edition

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This entirely new publication presents a comprehensive guide to the seaborne distribution of cement and clinker. Authored by the leading industry experts in this fi eld, this handbook presents regional cement trade analysis and statistics, complemented by chapters on cement shipping and distribution, terminal design and operation, as well as a worldwide terminal directory. Ideally suited for companies seeking exposure to the cement trade sector, this major new work will be published in early 2013.

ndia’s economy grew by 9.7 per cent in 2010, but is expected to moderate down to 8.4 per cent in 2011, accord-

ing to the IMF. The fund also expects the Indian economy “to continue to expand rapidly over the medium term, supported by high investment and productivity gains.” The country

-est economic growth in the world, thanks to a young, growing workforce. However, its exposure to commodity prices and its tendency to lose major foreign energy deals to China are a concern, particularly in the light of the growing instability in North Africa and the Middle East.

Unlocking India’s full potential hinges on greater investment in infra-structure and human capital, together with economic reforms designed to tackle the country’s considerable bureaucratic inertia.

In 2009, the housing sector was respon-sible for 60 per cent of all Indian cement demand, with infrastructure making up a further 20 per cent and all other sectors accounting for the remainder.

North (22 per cent of national capac-ity), Central (12 per cent), West (15 per cent), South (37 per cent) and East (14 per cent).

Cement sales have been grow-ing rapidly, assisted by urbanisation, together with a rise in rural and semi-urban incomes, which have boosted housing demand. Additional con-sumption growth has come from gov-ernment initiatives designed to provide housing to the poor. There is consider-able potential for further expansion, given the country’s extremely low cement consumption per capita com-pared to the global average of around

480kg and the fact that there remains a large unmet housing demand, caused in part by a growing working popu-lation. The present housing short-age is in excess of 47m units and this is expected to rise to up to 74m units by 2012. A marked pickup in cement demand in rural areas due to an upturn in infrastructure and real estate pro-jects, particularly in rural areas, took place in December 2010. Another hot topic as far as demand is concerned, is the potential for a shift away from bituminous to concrete roads. Cement-intensive 1000km expressways are cur-rently under award.

Currently, the market remains over-whelmingly weighted towards bagged cement, which accounts for 97 per cent of all deliveries.

About 62 per cent of cement is deliv-ered by road, 36 per cent by rail and just two per cent by sea.

India has held onto its place as the world’s second largest cement pro-duction base. As of year-end 2009, the country’s installed capacity amounted to around 242Mta. Roughly 89 per cent of total capacity is in the form of >1Mta plants and 99 per cent of facilities are owned by the private sector. The for-

3

2

3

3

3

2

2

-ciency improvements through a switch to more modern capacity may be less than that in China.

Currently, there is extensive use

account for around 70 per cent of total cement production. The product mix

In the past decade, there has been a fair degree of consolidation, with the capacity of the top 10 groups rising from 66 per cent of the national total

capacity held by the top two groups has risen from 23 per cent to 35 per cent. In 2010, capacity utilisation averaged 80 per cent, due in part to overcapacity. In FY2009-10, capacity stood at 236.9Mta, compared to a total demand of 181Mt

hit by weak utilisation, given the low strength of demand in the region, and expectations for 17Mta of new capac-ity to come online in FY2010-11. As a result, many of the companies operat-ing in the south have capacity utilisa-tion in the 50-60 per cent range.

Italcementi Group completed con-struction work on its new 5500tpd kiln line at its Yerraguntla plant in 2009 and

2010. Its Indian operations take place via its subsidiary, Zuari Cement Ltd.

Lafarge brought online a new pro-duction line at Sonadih and a grind-ing station at Mejia in the second half of 2009. Back in 2008, it acquired the L&T concrete business of the Larson & Toubro Group in India (69 concrete plants), making Lafarge the leader in the Indian ready-mix concrete mar-ket. As of year-end 2009, Lafarge had a 6.55Mta installed cement capacity in four facilities.

HeidelbergCement is currently building a kiln line and additional cement capacity of 2.9Mta at the cen-tral Indian locations of Damoh and Jhansi, with completion scheduled for 2012. Once completed, the projects will take Heidelberg’s total Indian cement capacity to 6Mta. The company is cur-rently active in the Central, South and West regions with two cement plants and three grinding facilities.

Cimpor saw its cement and clinker sales in India drop by 15.8 per cent in 2010 to 0.95Mt from the 1.128Mt seen

in 2009, citing an aggressively competi-tive market and a tough monsoon. The

integration of Shree Digvijay in 2Q08. Total installed capacity in 2009 rose to 1.18Mta, with an utilisation rate of 94.3 per cent.

Holcim through its holdings in the Associated Cement Companies Ltd (ACC) and Ambuja Cements (ACL), which are roughly 46 per cent for both companies, had an approximate mar-ket share of 20.24 per cent in FY2010. The two companies are expected to expand their capacity by 5Mta this year to a combined 57Mta.

ACC commissioned the expanded kiln line 2 at its Wadi plant in 3Q10, taking its clinker capacity to 12,500tpd. Clinker from the plant is being used to supply two new grinding stations at Karnataka. In 4Q10, ACC commis-sioned a new kiln line at its Chanda plant. In 2010 as a whole, the com-pany commissioned over 3.3Mta of new clinker capacity. In 2009, it added additional production and grinding capacity in the states of Orissa and Karnataka.

ACL commissioned two lines in

and two grinding plants in Himachal

group’s clinker capacity rose by 36.1 per cent in 2010 to 16.4Mta.

The Aditya Birla group had an 18.39 per cent share of the Indian cement market in FY2010, through group com-panies Grasim, Ultratech and Shree Digvijay Cement. Grasim sold off Shree Digvijay Cement in 2008, later hiving off its cement business into a separate subsidiary called Samruddhi Cement, which in July 2010 was merged into UltraTech Cement. The group expected to add around 4.1Mta of new capac-ity in FY2009-10 and was projected to reach nearly 49Mta by calendar year end 2009. Grasim Industries commis-sioned a new a 3.3Mta clinker link at

According to its FY2009-10 annual report, UltraTech Cement (UTCL) is looking to add 25Mta of new capac-ity by 2015 at a capex of US$3bn. Due to the merger the company operates 11 integrated plants and 11 grinding units in India, with a combined capac-

THE

GLOBALCEMENTREPORTTENTH EDITION

UPDATED: 10th edition due 2013

The Global Cement Report Featuring primary statistical data and up-to-date analysis on cement markets in 166 countries, this highly-regarded reference provides a reliable and comprehensive view of the global cement sector and remains the information benchmark for the industry. The report links to an online database of global cement facilities, making GCR 10 an invaluable resource for cement strategists worldwide. The 10th edition, due for publication in early 2013, offers a rare opportunity to showcase your company, its products and services to a truly infl uential and global audience.

ICR’s monthly offering is complemented by a range of well-respected reference works, handbooks and research reports – all of which carry advertising space and present a highly-effective channel to reach your company’s target audience. All of these specialist publications are recognised industry leaders and

offer the advertiser unique access to the full spectrum of cement professionals active in the industry today, as well as the chance to establish high visibility for your products and services in the evolving global market place. For our full publishing programme, details of how to advertise plus our full range of publications and events, please visit www.CemNet.com

2nd Global White Cement

Report

UPDATED: 2nd edition available now

The Global White Cement Report The Global White Cement Report, 2nd Edition, tracks the latest global consumption statistics as well as providing information on world production and trade in the highly-specialised white cement sector.

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Advertisement ManagerStephen BellInternational Cement Reviewt: +44 (0) 1306 740 363 e: s.bell@CemNet.com

Regional sales offi cesRepresentative for Germany, Austria and Switzerland: Gabriele FahlbuschIMP InterMediaPartners GmbHe: fahlbusch@intermediapartners.de

Other contactsEditorial: Thomas Armstronge: t.armstrong@CemNet.com

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Maint: +44 (0) 1306 740 363 f: +44 (0) 1306 740 660e: info@CemNet.comw: CemNet.com

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