july 2015 turning ideas into technology...mill types. for a constant output speed the cope drive...

TURNING IDEAS INTO T E C H N O L O G Y

www.loesche.com

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The increasing performance requirements of cement producers led to rethink the further developments in drive technology for vertical roller mills. Particularly for larger mill outputs, LOESCHE favours a drive system with multiple motors and gearboxes with milling force decoupling.

In order to meet these demands, LOESCHE will use for future projects with high and medium grinding capacity the COPE gearbox developed in cooperation with Renk, which offers a redundancy of up to 8 motors at the motor end. Only 4 models of the COPE gearbox, equipped with 6 to 8 motors, allow for a classification in a range of capacities from 3 up to 14 MW and thus an application within up to 17 different mill types.

For a constant output speed the COPE drive does not require any variable speed drive for the maintenance-free drive motors and moreover can be operated with a reduced number of motors. This new type of drive concept allows for an operation with for example 7, 6 or simply 4 of the 8 existing motors. Even in operation with only 7 motors, 100% mill output can be attained by activating the design reserves installed. The compact design of COPE gearbox is also of advantage as it does not require any additional modification of the mill foundation.

As this drive train can be put into operation with the common gearbox dimensions, this system can as well be considered for any retrofit at existing Loesche Mills.

For more info contact us:

LOESCHE GmbHHansaallee 243D-40549 DüsseldorfEmail: [email protected]


THE NEW COPE DRIVE IS ON THE MARKET


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The Cope gearbox is primarily available for mill outputs between 4000

and 12 000 kW. With this drive concept, the companies LOESCHE and

RENK will offer a highly redundant innovative drive system for large and

very large vertical mills with a short delivery time and low investment

costs on the market.

CONTENTS JULY

Palladian Publications Ltd15 South Street, Farnham, Surrey GU9 7QU, ENGLAND

Tel +44 (0)1252 718999Fax +44 (0)1252 718992

Email: [email protected]: www.worldcement.com

Volume 46: Number 7

July 2015

ISSN 02636050

THIS MONTH’S COVER

TURNING IDEAS INTO T E C H N O L O G Y

www.loesche.com


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139 117WORLD CEMENT REGULARS

05 Comment

09 News

16 Keynote: Global PanoramaPaul Maxwell-Cook introduces our World Review with a selection of topical news from around the world.

144 World Review Infographic

WORLD REVIEW

24 Africa & Middle East

46 Asia & Pacific Rim

70 North & Central America

80 South America

90 Europe & CIS

PLANT PROJECT

113 Fixing a Cooler BottleneckAndre Vos, Claudius Peters Projects GmbH, Germany, discusses the main factors that led Holcim La Union to decide on a completely new cooler when experiencing a major bottleneck in the plant.

CONVEYING

117 Europe’s Longest ConveyorOlivier LaPlace, Brunone, France, discusses the development of the longest conveyor in Europe, designed to transport limestone to Vicat’s Montalieu plant in France.

123 Conveyor Round-UpFeaturing product news from Flexco, 4B, ASGCO and Martin Engineering.

WEAR PROTECTION

127 Bearing ProtectionDr Chris Carmody, AESSEAL®, explains how modern labyrinth design bearing protection seals can reduce bearing failures in cement grinding and processing plants.

131 The Value of VibrationsChris Hansford, Hansford Sensors, UK, explains how the installation and proper use of vibration monitoring can ensure manufacturers keep up with demand and avoid downtime.

135 Wear Round-UpFeaturing product and project news from Wear Concepts, Valor and Kjellberg.

GENERAL INTEREST

137 Knowledge is PowerHenry Chajet, The Jackson Lewis Safety and Health Law Team, USA, provides Enforcement and Liability Risk Reduction Tips and Knowledge to keep your company at low risk of adverse DOL/MSHA/OSHA actions.

139 Ports & TerminalsThe latest news from international port and terminal projects.

HEKO Ketten GmbHEisenbahnstraße 2 | 58739 Wickede (Ruhr), Germany | Telephone +49(0)2377-9180-0 | Fax +49(0)2377-1028 | E-Mail: [email protected]

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Anzeige_BW_09_00:Anzeigenentwurf 06.03.2009 18:32 Uhr Seite 1

Annual subscription (published monthly): £160 UK including postage/£175 (e245) overseas (postage airmail)/US$280 USA/Canada (postage airmail). Two year subscription (published monthly): £256 UK including postage/£280 (e392) overseas (postage airmail)/US$448 USA/Canada (postage airmail). Claims for non receipt of issues must be made within 4 months of publication of the issue or they will not be honoured without charge.

Applicable only to USA and Canada

WORLD CEMENT (ISSN No: 0263-6050, USPS No: 020-996) is published monthly by Palladian Publications, GBR and is distributed in the USA by Asendia USA, 17B S Middlesex Ave, Monroe NJ 08831.

Periodicals postage paid New Brunswick, NJ and additional mailing offices. POSTMASTER: send address changes to World Cement, 701C Ashland Ave, Folcroft PA 19032

Copyright© Palladian Publications Ltd 2015. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. All views expressed in this journal are those of the respective contributors and are not necessarily the opinions of the publisher, neither do the publishers endorse any of the claims made in the articles or the advertisements.

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Printed in the UK.

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Managing Editor: James Little [email protected]

CONTACT DETAILS

Editorial Assistant: Harleigh [email protected]

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COMMENT JULY

Editor: Katherine [email protected]

Editorial Assistant: Joseph Green [email protected]

Two months have passed since the devastating earthquake in Nepal on 25 April. Almost 9000 people were killed and 22 000 injured in the quake, which also left 3 million people homeless. Nepal is not a rich country. Its main sources of income – tourism, agriculture, commerce and real estate – have been badly affected by the earthquake and will take time to recover. At US$6.7 billion, the estimated cost of recovery

is equivalent to one third of Nepal’s economy and that is, as Finance Minister Dr. Ram Sharan Mahat put it, an assessment based on a return to normal life, not a ‘Post Disaster Assessment of Wants and Desires’.

As well as the lives and livelihoods lost, Nepal is also mourning the pre-quake progress it had made, which had won praise from the UN. Before the earthquake, Nepal was on track to achieve many of its Millennium Development Goals by the end of this year, including halving absolute poverty. A disaster like this could set the country back years, undermining its earlier efforts and tipping people who had crossed the line out of poverty right back to where they started, and perhaps further back than ever.

On 25 June an international conference was held in Kathmandu to discuss the reconstruction needed in the country with various heads of states of Nepal’s neighbouring countries and development partners. In his opening remarks, Mahendra Bahadur Pandey, Minister for Foreign Affairs, acknowledged that the government was ill-prepared for a disaster of this magnitude, but emphasised the country’s determination to

‘build back better’. “The necessity now is to ‘walk the talk’ of ‘post disaster period as an opportunity’ discourse to ensure that it does not become a mere statement of intent but an expression of reality,” he said.

The theme of the conference was ‘Towards a Resilient Nepal’, and the Minister asked the international community to offer not only financial support, but also technology transfer. Financial support has been relatively forthcoming: during the conference, India pledged US$1 billion for reconstruction, while the World Bank had already announced plans to provide up to US$500 million, including US$200 million for housing reconstruction. No doubt experts will also be willing to weigh in on how exactly a mountainous region in an earthquake zone ought to ‘build back better’.

Of course, money is only one aspect of reconstruction. Nepal’s cement industry alone will not be able to support such huge building efforts. Though there are more than 40 cement plants in the country, only about a quarter of these are fully integrated. Moreover, the capacities of the plants don’t stretch much beyond 200 000 tpy. This is set to change, though, with Dangote Cement planning a huge 2 million tpy plant, though it is unlikely to be operational before the end of 2017. Thankfully, neighbouring India has a huge surplus of cement and, as we reported on www.worldcement.com last month, northern India is expected to experience weak demand this fiscal. There will be plenty of cement to go around if the infrastructure is in place to move it. Watch this space for more news on that front.

Meanwhile, I hope you enjoy this World Review issue. I’d like to express my sincere thanks to all those people who sent in their news to be included. As this is the time of year that we start thinking about next year’s editorial schedule, we would appreciate your feedback on this and all our features to make sure World Cement remains relevant to you.

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Adi3tek is a chemical inhibitor that has been used since 2008 in cement plants around the world. It was specifically developed to prevent sulfur-generated build-up in pre-heaters/pre-calciners and to avoid kiln stops due to ring formation in cement kilns.

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WORLD NEWS JULY

July 2015 / 9 World Cement

NEWS HIGHLIGHTS

To read more about these articles go to:

• The US Senate introduces bill to fund highway expansion

• India’s cement industry may not see revival until FY17

• CBMI wins contract with PPC in South Africa

• Sokoto Cement plans power plant expansion

Italcementi Group S.p.A and Devnya Cement held an official ceremony and ribbon cutting for the new line at the Devnya Cement plant in Bulgaria. The project received an investment totalling over BGN325 million.

Bulgarian Prime Minister Borisov and Italcementi CEO Carlo Pesenti cut the ribbon in front of an audience of 1000 people, marking the official inauguration of the production line.

The project has been honoured by an array of awards since the commencement of its initial phase in 2012. For example, the company has placed in the top three for Health and Safety at the Workplace Awards for the last three years.

Since the beginning of the initial phase, thousands of people and more than 100 companies worked on the site during the different stages of the construction. The new line is widely celebrated for bringing the best available technology in cement production to Bulgaria with the most modern and up-to-date processes, safety and environmental control systems.

The construction works for the new line incorporated all stages of the cement production process, from transportation of the raw materials to the forwarding of the final products.

In addition to the new production facilities, modern office buildings were constructed. The new equipment, facilities and structures originate from leading European and Chinese manufacturers, as outlined in the May issue of World Cement.

Bulgaria New line officially inaugurated at Devnya Cement

July 2015 10 \ World Cement

EVENTS

15 – 18 September 2015

UNITECR 2015

Vienna, Austria

www.unitecr2015.org

7 – 10 October 2015

13th TÇMB International Technical Seminar and Exhibition

Antalya, Turkey

www.tcma.org.tr

7 – 9 October 2015

ILA General Assembly

Istanbul, Turkey

www.internationallime.org

13 – 16 October 2015

14th International Congress on the Chemistry of Cement

Beijing, China

www.iccc2015beijing.org

10 – 12 November 2015

20th Arab International Cement Conference & Exhibition

Cairo, Egypt

www.aucbm.org

5 – 6 October 2015

10th Middle East CemenTrade

Dubai, UAE

www.cmtevents.com

Cemengal has announced a number of new orders for its grinding stations and Plug&Grind® system.

l Morocco: A 90 000 tpy Plug&Grind® cement grinding plant will be supplied to a customer in Morocco. This will feature a ball mill (2.2 m x 9.5 m dia., 500 kW) and a bag filter with a capacity of 25 000 m3/hr. Cemengal’s scope of supply includes: an electrical substation to feed the unit and cement transfer infrastructure to existing silos; 4 x steel silos for bulk dispatch; packing facilities for increased capacity.

l West Africa: The company has received an order for a Plug&Grind® cement plant with a capacity of 100 000 tpy. This includes a ball mill with a 2.2 m x

9.5 m dia., at 500 kW, as well as a 50 000 m3/hr bag filter, and packing facilities.

l Middle East, Gulf region: A Plug&Grind® cement grinding plant will be supplied with a GGBS production capacity of 70 000 tpy. This will feature a 2.2 m x 9.5 m dia. ball mill (500 kW), and a 50 000 m3/hr bag filter.

l South America: In order to expand the grinding capacity of an existing plant, a customer has ordered a Plug&Grind® cement grinding plant with a production capacity of 90 000 tpy (ball mill: 2.2 m x 9.5 m dia., 500 kW; 25 000 m3/hr bag filter). Cemengal will supply an electrical substation for the new Plug&Grind® unit and the cement transfer infrastructure to existing silos.

Worldwide New orders for Cemengal’s Plug&Grind®

FLSmidth has won a e100 million contract for a 12 000 tpd cement plant in Vietnam. The contract was awarded by Vietnam’s Xuan Than Group and the plant will be located some 100 km south of Hanoi.

The new plant will be one of the largest in Southeast Asia and will comprise energy efficient equipment, state-of-the-art emissions control and leading process control systems.

“The Vietnamese cement market is expected to grow over the coming years and it is a well-known market to FLSmidth, as we have been present in the country for many years – also the construction of the largest cement plant in South East Asia proves our strong position in the area,” said Per Mejnert Kristensen, President of the Cement Division.

Vietnam FLSmidth wins order for Southeast Asia’s biggest cement plant

Worldwide HeidelbergCement announces strategic priorities

HeidelbergCement has set its financial targets for the five years to 2019, including an increase in group revenue from e12.6 billion in 2014 to more than e17 billion by 2019. Operating EBITDA is also set to grow from e2.3 billion to e4 billion. The international cement company is also planning to increase payouts to shareholders, increasing the ratio from 29% in FY14 to 40 – 45% in FY19.

“As we enter the next phase of our corporate development, HeidelbergCement is in an excellent position to capitalise on its considerable strengths and drive future growth and value creation,” said Dr Bernd Schiefele, Chairman of the Board. “We have a compelling strategy in place, which clearly differentiates us from our competitors, and we remain the industry leader in business excellence and cost efficiency.”

World CementJuly 2015 12 \ World Cement

More than 900 delegates from 29 countries attended the 57th IEEE-IAS/PCA Cement Industry Technical Conference, which took place in Toronto, Canada on 26 – 30 April. On offer was a host of technical papers and panel discussions, covering the areas of automation, drives, safety, maintenance, power, environment and sustainability. This conference never fails to impress with the quality of its technical content and this year delegates were also treated to several panel discussions on the topics of alternative fuels, PM compliance, blending silo technology and NESHAP CEMS. The discussions incorporated the perspectives of cement plants, equipment suppliers and other industry experts, making them even more useful than in previous years.

Ed Sullivan got proceedings off to a cheerful start with the promise of optimism for 2015. The PCA is forecasting cement consumption growth of 7.5% in 2015, 7.9% in 2016, and is encouraging the industry to ‘embrace the optimism’. Sullivan predicts capacity utilisation at 90% in 2018 and for imports to exceed 20% market share in 2019. A supply gap of more than 50 million t is expected by 2035 and the import capacity will fall short of demand. No doubt future conferences will look at how the cement industry addresses this challenge.

Michael McSweeney, President of the Cement Association of Canada, reminded delegates that the cement industry has a good story to tell. He said that the impact of the cement industry on the environment cannot be ignored and that the CAC is in support of a cap and trade system. He was followed on stage by Glenn Thibeault, the Parliamentary Assistant to the Minister of Climate Change. Thibeault praised the cement industry for its leadership in moving towards a low carbon economy and talked about reducing regulatory burdens and streamlining the approvals process.

The papers were too many to discuss in detail, but some of the highlights included the alternative fuels panel discussion, which was moderated by

Carrie Yonley of Schreiber, Yonley & Associates, a Trinity Consulting company, and included an introduction from Carrie of current regulatory issues surrounding the use of alternative fuels. Greg Mayes of Sustainable Processes LLC then talked through the practicalities of introducing alternative fuels to your operations, Marc Vermiere of Votorantim Cement North America and Steve Martin of Pond Biofuels talked about their project at the St Marys Cement plant and Alex Guyse of Cemex looked at the use of CFD modelling in evaluating alternative fuels projects. Finally, David Rib of Mistubishi Cement gave an excellent presentation sharing his experiences at the company’s Cushenbury plant, which has been using alternative fuels since the early 1990s.

Another highlight was Carrie Yonley’s paper questioning whether the industry is ready to meet the 9 September 2015 compliance deadline and reminding the audience exactly what the requirements will be. This paper won third prize at the Awards Banquet at the end of the week. Other prize winners were John Kline, of John Kline Consulting, and Juhn Guynn from Roman Cement LLC, who won first place with their paper ‘Maximising SCM Content of Blended Cements’. In second place was Alan Finch of Ash Grove Cement Company, with his paper: ‘A Cement Plant’s Experience in Investigating Power Sags Leads to a Reduction in Kiln Outages by Utilising Power Hardening Methods’.

The panel discussion on PM compliance was a lively one, with input from Corinne Fields of Clarcor, Andy Winston of BWF and Arron Heinrickson of Trinity Consultants. The concern in the industry at the moment seems to be less geared towards initial compliance and more focused on maintaining compliance, which will be the real test.

In that vein, Anna de la Garza from Zephyr Environmental Corp. gave a great paper on ‘Crafting an O&M Plan Template for PC MACT’, which delegates paid close attention to. The NESHAP panel, with input from Lehigh Hanson, Ash Grove and CalPortland, was also very insightful and showed the real benefit of the conference – sharing experience and best practice across the cement industry.

Alongside the conference, 157 exhibitors showcased their latest technologies and solutions and hosted evening events and hospitality suites. On the final day of the conference, delegates visited the St Marys Cement Bowmanville plant, which is a pioneering facility that excels in the area of energy efficiency and is soon to begin burning low carbon fuels. We were also able to learn more about the Pond Biofuels algae project and even saw some samples of the algae being produced.

The 2016 conference will take place in Dallas, Texas on 15 – 19 May and will tour the Ash Grove Cement Midlothian plant. For more details, keep an eye on the website: www.cementconference.org.

Canada Successful IEEE-IAS/PCA Cement Industry Technical Conference

Ed Sullivan says we should ‘embrace the optimism’.

July 2015 14 \ World Cement

IN BRIEF

Former Ash Grove Cement Company Chairman & President, James P. Sunderland, has passed away.

Sunderland joined the Ash Grove Lime and Portland Cement Company in 1957. In his 43-year career with the company, Sunderland held several leadership positions. During Sunderland’s tenure, Ash Grove Cement became one of the largest Portland cement producers in the US.

CEMBUREAU has elected Daniel Gauthier as President for a two-year term. Gauthier is CEO, Western Europe-Africa at HeidelbergCement and has been Vice President of CEMBUREAU for the last two years. He succeeds Peter Hoddinott in the role.

Talking of his priorities as President, Daniel Gauthier said that the industry should build on the accomplishments of The Concrete Initiative, which was launched one year ago.

ICC has developed and entered into a technical collaboration with EPCON, based in Indonesia, to offer clients within the Heavy Industry sector a wider global coverage of technical, commercial and financial consultancy services. Together, ICC and EPCON assist each other with the services they can provide across a broad range of industries to their respective client bases.

Voith is acquiring parts of the materials handling specialist Hese based in Gelsenkirchen, Germany. The existing production site of Hese in Gelsenkirchen will not be taken over. On 12 November 2014, the company had filed an application to open insolvency proceedings. The acquired sections will be integrated into the Voith Turbo Division Mining & Metals.

Hese is known in the mining industry for its development of the carrying belt and pushing belt drive (TT-intermediate drive). With the

TT-intermediate drive, belt conveyor systems can be operated without interruption across longer distances while the quality of the belt does not need to be changed and the efficiency of the system is increased. Additional belt transfers are no longer required, dust generation is significantly reduced and the extracted grit is protected. In addition, Hese has also made a name for itself with plant components and complete systems in the field of bulk material conveyor technology.

Germany Voith acquires parts of materials handling specialist, Hese

Some US$1.5 billion is being invested in a new deepwater port and logistics hub in Tema, Ghana. The investment is being made by Meridian Port Services, a JV between APM Terminals, Bolloré Africa Logistics and the Ghana Ports and Harbour Authority.

Four deep-water berths, a new breakwater and an access channel able to accommodate the largest

container ships will together provide a world-class port infrastructure that will add 3.5 million TEUs in annual throughput and create 5000 jobs.

“We are excited about how this port will contribute to Ghana’s future economy and emphasise APM Terminals’ strong commitment to Africa’s growth and development,” said APM Terminals CEO Kim Fejfer.

Ghana Huge investment in Tema port

Union representatives visited the Hope cement plant in the Peak District to meet senior managers at the plant and plant-based National Union Representatives to launch the Hope Partnership Agreement. The new agreement is a revised version of the agreement that was in place when Hope Construction Materials took over the plant in January 2013.

“As well as more common employee/employer arrangements, the new Hope Partnership Agreement includes how we manage change in the business, job profiles and Hope’s company values,” said Hope

Construction Materials Human Resources Director, Jim Verity. “And now the Sales Lorry Drivers’ Agreement has been amalgamated into the partnership agreement, bringing all our cement colleagues together for the first time.”

Dave Wain, the plant’s National Unite Representative, said that the new agreement ‘forms a basis for excellent industrial relations, allowing for change and improvements to be implemented through a partnership approach which is fully inclusive of all those it represents’.

UK New Hope Partnership Agreement launched

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Defawes of Belgium has a history of already more than 100 years of producing

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For a long time we have been delivering large pinions for kilns and other

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Impossible? Not anymore! With the new and unique segmented girth gear from Defawes. We have developed an unique segmented girth gear for rotary kilns and other rotating drums.

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A new kiln or mill girth gear within 18 weeks* and with a longer lifespan than what you are used to

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defawes_cement-industry-adv210x297_v4.indd 1 23-06-15 11:51

PAUL MAXWELL-COOK

INTRODUCES OUR

WORLD REVIEW WITH A

SELECTION OF TOPICAL

NEWS FROM AROUND

THE WORLD.

17

GLOBAL

PANORAMA

Introduction Since our last World Review exactly a year ago, the world’s media has been concentrated on the escalating conflicts in the Middle East and in Ukraine, the terrorist outrages in Europe, Pakistan and Nigeria, and the crisis in West Africa. Headlines in the cement industry have of course been dominated by the creation of the largest cement company through the Lafarge – Holcim merger, and the purchase of assets by CRH that would see the Irish major becoming the world’s third largest building materials supplier.

GLOBAL PANORAMA

WORLD CEMENT

W O R L D R E V I E W

201518

AfricaThe news from West Africa over the past year has centred on the horrifying effects of the Ebola epidemic in Liberia, Sierra Leone and Guinea, which claimed over 10 000 victims and affected over 20 000 others. Through the determined efforts of international governments, relief agencies and dedicated medical teams, the epidemic has gradually been brought under control. International aid will be required to help these countries rebuild their economies and install proper health systems. The International Monetary Fund (IMF) pledged a US$187 million aid package to support Sierra Leone’s struggling economy.

Oil prices have plunged by more than half since June 2014, curbing revenue and investment plans in Nigeria and Angola, both of which rely on crude proceeds for about 75% of government revenue. In 2014, Nigeria became the continent’s largest economy with a growth rate of 7.3%, but lower crude prices are undermining economic growth in the country, resulting in slumps in its currency. At the same time, the IMF is predicting a growth rate in South Africa of 2.1% from a previous figure of 2.3%, as falling commodity prices offset the benefit from lower oil imports.

Aliko Dangote’s new 4000 tpd plant in Senegal recently started production. In addition to his cement industry operations in over 13 countries, the Nigerian business giant has signed a joint venture with the US private equity firms Blackstone Group and Carlyle Group to explore opportunities in the oil and gas sector across Sub-Saharan Africa. In Nigeria, the Dangote Group plans to build a crude oil refinery that will process 650 000 barrels of crude oil and produce 2.5 million tpy of polypropylene and polyethylene. Towards the end of 2014, the Investment Corporation of Dubai invested US$300 million in Dangote’s cement business. Lafarge Africa’s Chief Financial Officer, Anders Kristiansson, has said he is very optimistic that cement prices in the country will probably increase again from about the middle of this year. Prices fell by 22% in November 2014. In a recent interview, Kristiansson confirmed that the group’s cement capacity at its plants in Nigeria and South Africa will rise from the present 12 million tpy to above 20 million tpy by 2020. Meanwhile, the BUA Group says it has completed plans to add about 5.3 million t to the Nigerian market. Yusuf Binji, the Group’s Executive Director, claims that with the Okpella plant becoming fully operational, the country’s installed capacity will rise from 30 million to 35 million tpy.

While difficulties continue in PPC’s South African operations due to weak economic growth, power shortages and increased competition, there are positive reports about its activities in Rwanda, Zimbabwe, Ethiopia and the Democratic Republic of Congo. The company has increased its stake in Habesha Cement in Ethiopia and the consolidation of Safika Cement has seen growth in Zimbabwe and Botswana. In April 2015, the proposed merger with AfriSam was reported to have

failed. Dangote Cement’s 1.5 million tpy Doula plant in Cameroon, which was due to be commissioned in 2014, finally began production in February of this year. It will help the country’s domestic output rise to 3.6 million tpy, including 0.5 million tpy from Morocco Cimaf and 1.6 million tpy from the Lafarge subsidiary, Cimencam.

Kenya currently produces about 5 million tpy of cement. The country wants to double production in the coming years. Dangote is competing against local cement producers to acquire huge limestone deposits in Kitui with a view to building a 5500 tpd plant in the region. Last year Savannah Cement, which has plans to build a new clinker plant in Kenya, reportedly planned to begin operations in Rwanda in 2015 once it had received approvals from the Rwandan authorities. The company also operates in Uganda, South Sudan and Tanzania.

There was some bad news from Tanzania, where the National Environment Management Council (NEMC) indefinitely closed down the country’s largest cement producer, Twiga Cement, in February 2015, due to environmental pollution. The company’s three plants produce almost half of the country’s cement production. The remaining 1.6 million tpy are produced by Mbeya Cement and Tanga Cement. Meanwhile, the worsening power crisis in Ghana has forced cement producers together with other industries to reduce power consumption by 30%. The cost of cement production has increased, but of further concern for the producers will be the increase in imports of Chinese cement.

In Zambia, Scirocco Enterprises, producers of Amaka Cement, entered into an agreement with a Chinese company and an international funder regarding plans to build a 2500 tpd cement plant in Lusaka’s Makeni area. Construction of the plant is scheduled to begin in September.

Earlier this year, allAfrica reported that a Qatari business group led by Sheikh Fahad Al Thanihad visited various investment sites in Ethiopia and had plans to launch four investment projects worth US$500 million. They include a cement plant, which would be built in Dire Dawa. Ethiopia is becoming one of Africa’s fastest growing economies. There are plans for railway, road and dam projects to provide reliable transport and cheap power. The country is currently involved in a US$5 billion power project that, when completed, will generate 6000 MW of electricity for domestic use and for export.

Egypt has suffered chronic electricity shortages in recent years and has struggled to meet domestic demand. Several of the country’s cement companies are retrofitting their plants to run on energy from imported coal, beating high prices and energy shortages that have curbed industrial output. Welcome news for the country is that Russia has signed a deal to build a nuclear plant at El-Dabaa,168 km west of Alexandria. Another deal was signed between both countries to create a Russian industrial zone along the Suez Canal. The Abu Dhabi-based developer Eagle Hills is planning to invest US$80 million in the construction of a new city near

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Cairo that will become the country’s capital. It will include an airport, a mall, hotels, schools and hospitals, as well as private homes.

Despite regional unrest, Morocco has remained stable, with the World Bank predicting that the economy will grow 4.6% by 2020. The Moroccan government hopes to generate 42% of its total installed energy production from renewable sources. Large groups are working on development projects to achieve this. One of the major players is Italcementi. Its goal is to reach, in the medium term, 50 MW of installed capacity in the country. This year it will complete the third component of its thermal-solar energy pilot project at the Ait Baha cement plant where total production will be 1000 MW hours per year and annual CO

2 savings of 800 t. The Red Horse Cements Group has reported that cement imports into Algeria earlier this year jumped 21% when compared to the same period in 2014. Lafarge’s new Silas Biskia plant is scheduled to open soon, while GICA wants to increase production at Ain Keira and Chlef, and has plans to build two more plants.

Middle EastOnce again, there is much international focus on the general unrest in parts of the region, particularly in Syria, Iraq, Libya and Yemen. At the time of writing, the fourth anniversary of the Syrian war had been recorded, a war that has so far claimed over 220 000 lives and displaced several millions of men, women and children. Unfortunately, there is no end in sight, with the knock on effects continuing in the rest of the region. Plummeting oil prices will mean the major oil producers will have difficulty balancing their budgets. In Iraq, Lafarge has said sales are rebounding due to improved transport conditions, but generally it is difficult to obtain reliable information. What is known is that the country is still importing cement from Iran. In total, between March 2014 and January 2015, Iran exported just under 16 million t, well on the way to reaching a target of 18 million t of cement and clinker to some 24 countries. Current domestic production is running at about 69 million t.

Peter Feuilherade, writing for The Middle East online, points out that the GCC countries are spending dozens of billions of dollars to launch metro, tram and urban light rail systems in a bid to cut vehicle congestion and reduce the impact of air and noise pollution. Some of the major projects underway in the UAE include the Etihad railway network, the Dubai airport expansion, Dubai metro and other road and bridge contracts.To meet the growth in national construction projects, including a series of economic cities, Saudi Arabia has been importing cement to add to the country’s current output of about 55 million tpy. Expansions of some of the existing plants are projected to raise production to 66 million t this year. Major development plans are in place in Kuwait, Oman, Abu Dhabi, Bahrain and Qatar.

AsiaData from The Indonesian Cement Association (ASI) confirmed that cement sales in Indonesia were 60 million t in 2014, up 3.3% on the previous year. Semen Indonesia has set aside US$480 million for capital expenditure this year to finance expansion of the Rembang and Padang plants. This should increase the company’s cement production capacity to 31 million tpy. Semen Baturaja also plans to raise production, partly by the addition of a new plant. By 2017, the company’s capacity should stand at 3.85 million tpy. The government would like to curtail investment opportunities in a move to safeguard a healthy business in the industry. Production capacity is currently 77 million t, which is said to be more than enough to meet domestic demand. The military government in Thailand has undertaken a number of measures to revive the economy in recent months, including relaxing martial law in some key areas for tourism and boosting public investment following prolonged political unrest in 2014. Siam Cement has been upbeat in predicting that domestic cement demand will rise by 6% this year from about 40 million t last year. The company is looking for chances to buy assets in Southeast Asia. Meanwhile, Thailand’s second largest cement producer, Siam City Cement PLC announced in February that Holcim had decided to sell its 27.5% stake in the company.

Press reports from Vietnam indicated that in 2014 the country shipped 19.5 million t of clinker and cement. It is forecast to export 25 – 26 million t this year. Countries importing cement and clinker include Indonesia, Malaysia, Bangladesh, Taiwan, the Philippines, Cambodia and Sri Lanka. Good news for Sri Lanka’s cement companies comes with the country’s newly elected government’s budget proposals to remove customs duty on imported cement from Malaysia, Vietnam and Indonesia. The proposals will allow competition with cement arriving from India and Pakistan. Vietnam, Cambodia or Bangladesh could be the recipient of an investment by Semen Indonesia for a new cement plant, if the Indonesian company fails to reach an amicable agreement with a local partner in Myanmar over plans to build a plant. The company has allocated US$50 million each year to support overseas plans. Myanmar’s economy is expected to grow by 7.7% this year and the cement industry welcomes the government’s plans to upgrade, broaden and build roads, bridges, ports, airports, hotels, malls, apartments and hydroelectric dams and plants. While there may be a slowdown in construction before the general election in November, it is likely that there will be a period of intense investments in projects afterwards.

A report on the cement industry in India by the India Brand Equity Foundation suggests that the market will grow at a compound annual growth rate of about 8.96% from now through to 2019. To meet rising demand, cement companies are expected to add 56 million t of capacity over the next three years. Some major investments include JSW’s plans to expand its capacity to 30 million tpy from 5 million tpy; UltraTech plans to

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set up two greenfield grinding units in Bihar and West Bengal and JSW Cement Ltd has planned a 3 million tpy clinker plant at Chittapur.

Cement production in Pakistan has been growing at over 6% in recent months and at the time of writing the industry was expected to reach 36.6 million t by the end of June 2015. Local press reports say that the private sector is showing strong growth, which is one of the main causes of higher cement consumption in the country. D G Khan Cement is planning to build a 2.0 – 2.5 million tpy plant near Hub, even though the country is struggling with an electricity crisis and outbursts of terrorism.

In January, a report on China from Bloomberg said that, with China’s growth slowing down, predicted to fall to 7% or even lower this year, Beijing will approve 300 infrastructure projects worth a total of US$1.1 trillion for 2015. Although not publicly announced by the government or Chinese media, the move is linked to a larger plan that will see US$1.6 trillion pumped into the Chinese economy by 2016. Infrastructure investments are especially crucial for China’s central and western regions where development lags behind the wealthier coastal areas.

Central AsiaAcross the region, the Asian Development Bank (ADB) has predicted that the depreciation of the national currencies will trigger inflation. Low oil prices will negatively affect the budget in several countries that rely on windfalls from hydrocarbon exports. Falling oil prices will be a curse for the region.

Kazakhstan intends to meet domestic demand for cement when its new plants at Rudny, Kokshe-Cement Enterprise, BI Cement and the modernisation of the facilities at Shymkent have been completed. Cement imports are currently 1.5 million tpy. In Turkmenistan, a new 1 million tpy cement plant is being planned this year for Lebap province, while in Uzbekistan, which has six cement plants with a total installed capacity of over 7 million t, Almalyk Mining-Metallurgical Complex JSC intends to increase capacity of the Jezzakh plant to 1 million tpy this year. All three countries will suffer as a result of the drop in oil revenues.

North AmericaThe IMF has said the US economy will grow 3.1% this year, faster than last year’s 2.4%, but lower than the January 2015 figure of 3.6%. It commented that US consumption ‘has benefited from steady job creation and income growth, lower oil prices and improved consumer confidence’. PCA’s Chief Economist, Ed Sullivan, in his spring forecast projected that total cement consumption would increase by 7.5% from last year and continue to grow in 2016 by 7.9%. He cited this as proof that the US economy is healing. He said: “Industry projections continue to be in line with generally improving economic construction fundamentals”. Sullivan also said that cement and

clinker imports would increase to 36.6% in 2017 and grow at an even higher rate in 2018.

After five years of contraction, the cement industry in Canada is said to be growing slightly this year. The Federation of Canadian Municipalities estimates that CAN$123 billion will be needed to bring the country’s crumbling infrastructure up to ‘scratch’ and an estimated CAN$115 billion to meet growing demands. If contracts for concrete roads win the day, then this would be good news for the cement industry. The controversial 6000 tpd McInnis Cement plant is currently under construction at Port-Daniel-Gascons. ThyssenKrupp Industrial Solutions, US, is supplying the full cement line.

The massive programme of structural reform in Mexico that the government embarked on in 2012 is beginning to bear fruit. The credit insurance company Euler Hermes says that the economy grew by 2.3% in 2014 and is expected to grow by 3.2% this year. The revival in the US economy is one of the factors that is increasing the speed of growth in Mexico. The situation is probably best summed up by BlackRock Inc’s Chief Executive, Larry Fink: “Mexico is finally beginning to unlock its true potential as an economic powerhouse. Over the next few decades, capital is going to flow more effectively. It will be easier and easier to do business.”

Latin AmericaThe IMF forecasts growth of just 1.3% for Latin America this year, down nine-tenths of a percentage point from the October 2014 figure. It predicts economic contraction in Venezuela and Argentina and growth of just 0.3% in Brazil. In Colombia, the low crude price took its toll on the oil-driven economy and contributed to slowing growth during 2014. The drop in oil revenues prompted the government to cut this year’s budget by 3%. This will mainly affect infrastructure and administrative spending, reports Focus Economics. That said, BMI’s view is that with strong backing from the Colombian government there could be a healthy annual real construction growth of 7.5% between 2015 and 2020. A telesurtv report, quoting Vice President Alvaro Garcia Linera of Bolivia, said that despite the fall in oil prices, infrastructure and construction projects will go ahead as planned due to the precautions that the government has taken against any catastrophic drop in prices. In November 2014, FLSmidth was awarded a contract by SOBOCE for the design and construction of a new plant to be built in Santa Cruz.

As mentioned elsewhere in World Cement, new cement plants under construction in the region include those by Cemex and Cementera del Magdalena in Colombia, the Cemex Latam Holdings (CLH) grinding plant in Nicaragua and CLH’s ongoing project in Costa Rica. IA Cement estimates that Latin American cement demand growth will be restricted to a 1 – 2.5% range. Smaller Latin American markets are likely to see patchy growth compared to rapid rises in previous years. In particular, Peru and Ecuador have seen a slowdown in volumes, while a flat market is predicted in Chile.

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Europe – West and EastIn March 2015, Ernst and Young (EY) commented that after a year of tentative recovery in 2014, the Eurozone, driven by sharply lower oil prices and quantitative easing, will help GDP growth accelerate from 0.9% in 2014 to 1.5% this year and then to 1.8% in 2016. Growth will still only be 1.6% in 2017 – 19 as it will be held down by a number of structural constraints. These figures are in line with other reports.

Forecasts for the cement markets this year in the major Western European markets are mixed, according to IA Cement. There will be declines in cement consumption in France (down 1.2%) and Italy (down about 2.5%), but positive increases in Spain, the UK, Ireland and Greece. The strong housing markets in Norway and Sweden indicate that there could be solid growth this year. The European Commission is said to foresee a substantial recovery in real construction investment in many of its Member States, mainly in Spain, Portugal and some Eastern European countries that were badly hit by the fall in the construction cycle after the 2008 crisis.

Analysts in Poland are predicting a record growth of 8% this year in the building market. The Polish construction sector will gain momentum from EU funds that will contribute to a growth of 6 – 8%. Visible growth is expected in 2016 – 2018. Cement growth could be about 2 – 3% this year. Reports on the economy of the Czech Republic suggest that its fate remains linked to German demands for exports. GDP growth is predicted to reach 2.6% this year and then grow to 3% in 2016. In Romania, there are reports that waste-processing plant construction is recording a healthy growth this year. A recent example is the e9.3 million investment by Lafarge for a waste co-processing unit at its Medgidia plant. In addition, as mentioned in World Cement in January, the government has plans to construct 656 km of new highways by 2030.

Hungary grew at the fastest pace in eight years in 2014, as the economy expanded by 3.6%. Experts of the Hungarian Government and independent observers agree that, economy-wise, 2015 will be weaker than where the growth of 2.00 to 2.6% is expected. Falling world market oil prices might accelerate growth – possibly by 0.6%.

Since the beginning of hostilities in the Crimea region, market confidence within Russia has deteriorated. It is unlikely that the US and EU sanctions applied to Russia will be lifted in the foreseeable future. Euler Hermes forecasts a contraction in the country’s economy of about 5.5% this year, as opposed to the country’s economic minister, who has predicted a smaller reduction of about 3%. Whatever the right figure, a significant decline in investments and FDI is expected this year.

SourcesCompany and country press reports, Reuters, Bloomberg, international and local online news agencies, BMI, IA Cement.

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