Cwm28 magcloud

News • Analysis • Market Coverage • Interviews • People Moves

FEATURE

MERGER CREATES NEW SECOND LARGEST CEMENT PLAYER IN INDIA

LAFARGEHOLCIM

FEATURE

FOCUS ON MATERIAL HANDLING TOP STORIESIN MIDDLE EAST

FEATURE

New eco-cement plant boosts imports-dependent

MONGOLIAN INDUSTRY

GLOBAL CEMENT INDUSTRY. KNOWLEDGE. AUGUST / SEPTEMBER 2015 28

+1-702-866-9474 research.cwgrp.com

[email protected] • CHEMICALS • ENERGY • STEEL • METALS & MINING PORTS • COMMUNICATIONS • FINANCIAL SERVICES • AGRICULTURE

CW Research

GLOBAL WHITE CEMENT MARKET & TRADE REPORTRESEARCH REPORT:

WHO IS THIS REPORT FOR?PRICING

(ONE LICENSE)US$3,650US$3,700 + S&H

INDIVIDUAL Electronic (PDF)Hardcopy

(MULTI USER LICENSE)US$7,300US$4,250 + S&H

GROUPElectronic (PDF)Hardcopy

WORLDWIDE WHITE CEMENT INDUSTRY, CURRENT AND FUTURE STATE OF THE MARKET SEGMENTS, INDUSTRY TRENDS, GLOBAL MOVEMENT OF PRODUCT AS WELL AS MAJOR SUPPLIERS AND CONSUMER NATIONS

White cement continues to enjoy its niche as a specialized, value add segment within the global cement sector. Though the sector has climbed up from its depths in the global recession, the indus-try may be pausing to find breadth. Even so, new production capacity is expected to come on-line in the next few years, follow-ing the recent commission of some of the world's largest white cement production units Is there room for more?

DESCRIPTION 5-year projection of global white cement consump-

tion, production and net trade through 2019

Worldwide white cement plant production facilities

Extensive quantitative information on consumption, production, local prices, regional benchmark trade prices, trading facilities and trade-flows

Business development professionals Industry and trading analysts Financial investment institutions Other executives and decision-makers involved

You can contact the CW team at [email protected] or +1-702-430-1748 with any questions you may have or to place your order.

FEATURES

DEPARTMENTS

MATERIAL HANDLING: TOP STORIES IN THE MIDDLE EASTBedeschi Group increases activities in the Middle East with new contracts

MONGOLIA IS MOVING CLOSER TO CEMENT SELF-SUFFICIENCYOpening of Moncement plant in the Gobi desert boosts imports-dependent Mongolian industry

LafargeHolcim merger creates the second largest cement player in India

5

9

15

2

3

21

29

30333537

39

41

43

44

LETTER FROM THE PUBLISHERGlobal cement trading remains dynamic despite expected price declines

NUMBERS IN BRIEFGlobal trade and domestic cement prices overview

RESEARCHCement VolumesCement Energy Markets

PEOPLEPeople on the move

REGIONAL REPORTSEurope, Middle East & AfricaSouth-East AsiaAsia PacificAmericas

CONSTRUCTION & BUILDING MATERIALS BY BMWEEK.COMConstruction and building materials update

EQUIPMENTEquipment and notable projects

1115

CONTENTS

5LAFARGEHOLCIM

CW GROUP MEETING AGENDAGroup’s upcoming events

BUZZTop 15 CemWeek and BM Week stories

C H A I N T R E N C H E R S • W H E E L T R E N C H E R S • S U R F A C E M I N E R S trencor.com • +1 (419) 869-7107 • 800-324-4930

SUITABLE FOR NEW GREENFIELD OR BROWNFIELD LIMESTONE QUARRIES AND EXPANSION OF EXISTING LIMESTONE QUARRIES. TRENCOR SURFACE MINERS PROVIDE A RAPID INCREASE IN PRODUCTION WITHOUT HAVING TO INVEST IN NEW OR ADDITIONAL CRUSHER CAPACITY.

REDUCES INVESTMENT IN STAFF AND EQUIPMENT COMPARED TO CONVENTIONAL MINING WHERE DRILL & BLAST TECHNIQUES ARE PART OF THE OVERALL EXTRACTION PROCESS.

COST COMPETITIVE ALTERNATIVE FOR MINING IN DENSELY POPULATED, SECURITY AND/OR ENVIRONMENTALLY SENSITIVE MINING AREAS.

T1460

NO MORE DRILLING AND

BLASTING

Surface Miner

Trencor T1460 ad CW.indd 1 1/27/15 10:12 PM

EDITORIAL LETTER

EDITOR’S NOTE

Robert MadeiraPUBLISHER AND HEAD OF RES EARCH

Letter from the publisher and editor

HIGH TECH OR BUST State of the art technology and innovation are the new hype as the global cement industry is becoming

more competitive. Additional pressure comes from environmental awareness shaping new legislation to an ever higher extent. New plants and capacity additions are centered around high-tech solution that

are becoming the norm. The new issue of CemWeek magazine covers the challenges posed by major compa-nies and producers in delivering new cement production units that meet the higher global standards as well as local requirements. This issue also looks into the impact of the LafargeHolcim merger both, on the Indian market and the merging companies themselves. Just like in the action and reaction theory, the process had a significant influence on both the business environment and on the company.

One of the main stories in the current issue of CemWeek magazine focuses on the new production capacity opened by Mongolian producer Monpolymet Group in the Gobi desert. A technological feat in itself, the new plant is built to withstand the harshness of the Mongolian desert, while playing a key role in the industry, as the country’s cement demand is increasing rapidly. As the feature story details, the new plant takes Mongolia closer to cement self-sufficiency, at a time when much of the southeastern part of the country depends on imports from China. Read the story to find out all the details about the remarkable technical specs, the financ-ing structure and the business impact of the new plant.

Going deeper into the topic of cement technology, CemWeek brings a detailed foray into the activities of equipment producer Bedeschi, which is currently increasing its activities in the Middle East and North Africa, where economies have witnessed impressive expansion and currently boast one of the fastest growing con-struction sectors in the world. Don’t miss out on the story that details some of Bedeschi’s most important projects, spanning from Turkey to Tunisia and Morocco.

We also take a closer look at the double impact generated in India by the global merger of Lafarge and Holcim. Both the structure of the local market and the merged companies suffered changes as a result: while the new group becomes a very strong number two in India’s cement business, Lafarge also had to give up some of the most profitable production units in the country, in order to comply with the demands of the competition regulators. Another effect of the merger is that is likely to strengthen LafargeHolcim’s financial standing in India and its position on certain segments against their competitor, UltraTech Cement. The feature gives a detailed analysis of the merger aftershocks on the Indian cement sector.

And as usual, CemWeek Magazine provides all the relevant news about the main indicators of the industry, including the latest facts and figures about cement volumes, energy prices, relevant people in the business, regional developments, equipment and construction projects. Don’t miss out the numbers and the trends laid out in the special sections.

The CemWeek Magazine is published by theCW Group LLCPO Box 5263Greenwich, CT 06831, USAT: +1-702-866-9474www.cwgrp.comwww.cemweek.com

STAFFBOXROBERT MADEIRACEMWEEK PUBLISHERHEAD OF CW GROUP RESEARCH

MARINA FERNANDESJR. EDITOR & COMMUNICATIONS ASSISTANT

RALUCA CERCELSTEFANA ABICULESEISILVIU STEFANESCUSUSHMITA RAICONTRIBUTING WRITERS & RESEARCHERS

CATALIN CIOBANUSANTOSH SHETTYEDESIGNERS

LIVIU DINUADVERTISING

To subscribe or advertise, please contact us atT: +1-702-866-9474E: [email protected]

©2015 CemWeek LLC. All rights reserved. The con-tents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher.

Any submissions or contributions from readers shall be subject to and governed by CemWeek’s Terms and Conditions, which are available upon request.

The publishers regret that they cannot accept lia-bility for error or omissions contained in this pub-lication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on informa-tion contained in this publication which is provid-ed for general use and may not be appropriate forthe reader’s particular circumstances.

The ownership of trademarks is acknowledged. No part of this publication or any part of its contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the per-mission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

CW Group

CW Group

CW Analytics

CW Advisory

CemWeek

TO SUBSCRIBE please visit www.cemweek.com/subscribe

NUMBERS

The cement trading world has developed in line with trends exhibited this time last year, while average sales prices have been heavily impacted by geopolitical developments

Gray cement export have seen some recovery following the winter months, given that demand in the markets highly impacted by seasonal changes has increased. Nevertheless, year-on-year, volumes have contracted. In what prices are concerned, the general trend for FOB pricing has been a month-on-month decline, yet prices exhibited strengthening on a year-on-year basis.

The main cement exporters in the first half of the year were Thailand, China, Vietnam and Turkey. An interesting development this years was that China lost its position as the primary cement exporter in the world.

GLOBAL TRADE AND DOMESTIC CEMENT PRICES OVERVIEW

GLOBAL GRAY CEMENT PRICE INDEX (USD/ton)

2Q2015: AVERAGE SALE PRICES FOR SELECT MARKETS (USD/ton)

Sour

ce: C

W R

esea

rch

Sour

ce: C

W R

esea

rch

Ukr

aine

Chi

na

Pol

and

Tha

iland

Indi

a: N

orth

Sau

di A

rabi

a

Om

an

Ital

y

Rus

sia

Ger

man

y

Por

tuga

l

Indi

a: P

an

Indi

a: S

outh

Indo

nesi

a

Cze

ch R

epub

lic

Egy

pt

Lux

embo

urg

Bra

zil

USA

Sou

th A

frica

Moz

ambi

que

Per

u

Arg

entin

a

Par

agua

y

Jam

aica

Nig

eria

Chi

le

Cap

e Ve

rde

2Q 2015 2Q 2014

0

250

At the domestic level, average sale prices of cement saw some expected developments. In the second quarter of the year, the depreciation of the Ruble against the US dollar impacted the prices of cement, leading to the steepest decline in the world. Ex-works prices fell by 33 percent year-on-year.

At the other end of the spectrum is Jamaica and the United Stated. In the United States, the market is expected to see a general strength-ening, in line with economic recovery and increased activity in construction activity, and a greater focus on real estate development.

Jun-

12

Aug-

12

Oct-

12

Dec-

12

Feb-

13

Apr-

13

Jun-

13

Aug-

13

Oct-

13

Dec-

13

Feb-

14

Apr-

14

Jun-

14

Aug-

14

Oct-

14

Dec-

14

Feb-

15

Apr-

15

0

240

www.cemweek.comAUGUST / SEPTEMBER 20153

FEATURE

NEW ECO-CEMENT PLANT BOOSTS IMPORTS-DEPENDENT

MONGOLIAN INDUSTRY


A new production capacity in Mongolia’s cement industry is set to meet the country’s rising demand, as Monpolymet Group opens Moncement plant in the Gobi desert.

NEW ECO-CEMENT PLANT BOOSTS IMPORTS-DEPENDENT

www.cemweek.com AUGUST / SEPTEMBER 2015 6

ongolia is moving closer to cement self-sufficiency, at a time when increasing demand threaten to

increase dependence upon imports from China. The new plant adds to a recently refurbished facility in the north and will be followed by another two projects that will consolidate local production.

The new 250 million USD cement plant was built with joint financing provided by the European Bank of Reconstruction and Development, the Development Bank of Mongolia and Monpolymet, a group of companies founded in 1992 and specialized

in mining and mineral explorations, rehabilitation, construction and production of building materials. The EBRD loan for the Mongocement project was part of an extended financial package agreed in May 2013, which included a 20 million USD equity investment in Senj Sant, whose parent company is the Monpolymet Group. The project is a complete development of an

integrated cement plant and consists of two production lines with a total production capacity of 3,000 tons of clinker per day and 1 million tons of OPC 42.5, РС 42.5 and PC 52.5 Portland cement per year.

A BREAK FROM IMPORTS Mongolian demand for cement, along with other building materials, is set to rise sharply in the coming years as both the public and private sectors roll out extensive construction projects in the country. With a boom in the mining sector in particular, the demand for cement to build infrastructure, both at mines

and for transport links will increase. At the same time state-backed projects in infrastructure, housing and utilities will also draw heavily on domestic production and imports.

In 2013, Mongolia’s cement production was around 240,000 tons per year, well short of the 2 million tons demanded by

FEATURE

the economy during the same year. The shortfall in production has traditionally been met by imports, mostly from China, though demands from that country’s domestic market have at times put constraints on sales to its neighbor, limiting construction sector growth in Mongolia.

In May 2014, Mongolia began production at the country’s largest cement plant, a one million ton capacity facility in the Khutul district of Selenge province. The plant was refurbished over a one-and-a-half year period, replacing outdated technology from an inactive Soviet-era cement factory with a modern dry process system. Located 250 km to the north of Ulaanbaatar, output from the plant is estimated to amount to around 50% of the country’s annual cement consumption. By using the dry process, which does not have water added to the ground up materials during production - unlike in most older plants – the plant requires less power to fire its kilns and cause less pollution.

This year’s opening of the Moncement plant brings the Mongolian cement business even closer to self-sufficiency, as the CEO of Monpolymet Group and Moncement project leader N. Munkhnasan outlined during the inauguration: “We have been importing almost 90 percent of our cement consumption in the past. Today, we have created our advantage while meeting Mongolian and European standards, utilizing modern technologies that reduce the consumption of energy and impact on its environment.” The added capacity of the new plant is likely to reduce the occasional bottlenecks in the supply pipeline, which have been pushing up prices whenever the flow of materials could not be maintained at a level equal to the construction sector’s requirements.

THE HIGH-TECH, MID-DESERT GREENFIELD PROJECTMoncement is the first cement plant of the 25 year-old Monpolymet Group, and much of the output of the new facility is

Output from the plant is estimated to amount to around 50% of the

country’s annual cement consumption.

The new 250 million USD Moncement cement plant


to be directed towards supplying cement and raw materials to major mining projects in the region. The plant was built the middle of the Gobi desert, 520 km from the Ulaanbaatar and 55 km from Saynshand, the capital of the southeastern Dornogovi province bordering China’s autonomous region of Inner Mongolia. Various technical challenges were faced to conserve water and to design the production units to the extreme weather conditions, as frequent sand and snow storms amplify the harsh Mongolian climate with temperatures ranging from -40°C to +40°C and ground temperatures as high as 60°C. Moncement is the first plant in Mongolia to include a Waste Heat Recovery (WHR) system, which incorporates a gas powered generator that allows the facility to produce energy using residual heat coming from the production line. The plant also has a complete water treatment and recycling plant. Logistics of incoming materials and cement is assured by the direct connection to the country’s main railway system. Moncement is developing the SenjitKhudag limestone deposit located in OrgunSoum, which is

estimated to have sufficient reserves for over 170 years of production.

The local impact of the new plant will be significant, as Moncement is creating more than 500 jobs and is contributing to the local budget. It will also have a major

impact in developing auxiliary facilities and small and medium enterprises in the area and increasing the income of the locals. According to Phil Bennett, first vice-president of the ERBD, the project represented another step towards the diversification of Mongolia’s economy: “The new plant directly supports and nurtures the development of the private sector in a relatively underdeveloped industry in Mongolia.” Local and regional

authorities estimate that up to 1,000 family apartments, with supermarkets and sports facilities will be built as a result, leading to a threefold expansion of the local community. Apart from the Senj Sant project, there are at least two other cement plants in

the works with the Mongolyn Alt (MAK) Group and Germes Gakhiur building new production facilities, both expected to be completed and begin production in 2015. With the additional production these plants offer, Mongolia is expected to come close to cement self-sufficiency. This could still be tested by rising demand from both the public and private sector, with some estimates putting requirements at up to 3 million tons a year this year.

The new plant directly supports and nurtures the development of the

private sector in a relatively underdeveloped industry in Mongolia.

Phil Bennett, first vice-president of the ERBD

Mongolian officials at the opening ceremony of the plant


FEATURE

merger creates new second largest cement player in India


New company compelled to sell profitable assets, but becomes a strong competitor in ready mix cement


FEATUREFEATURE

strategic vision and ambition of enhanc-ing competitiveness in our chosen mar-kets,” said Harsh Lodha, chairman of Birla Corp. Concreto is one of the strongest ce-ment brands in India, and in some mar-kets commands a premium of up to Rs.55 for a 50kg bag. PSC, too, is considered a premium brand. The Birla-Lafarge deal brings Birla Corp among the top 10 play-ers in the country with a capacity of 15 million tonnes. The Indian company will fund the deal with some cash and incre-mental debt. However, besides regulatory clearances, the deal is conditional upon Birla Corp. securing the limestone mining rights of the two units. The mining rights may not be automatically transferred to Birla Corp., but without access to the de-posits estimated at 145 mt, the plants will have to be mothballed.

While, LafargeHolcim is giving up profit-able assets in India in order to complete the merger, the group will benefit from combined capacities and will actually cre-ate a serious competitor for UltraTech Cement, especially in the ready mix con-crete sector (RMC). UltraTech, the largest cement maker in India sold 4.8 million cubic meters of RMC in 2013-14, while according to the 2014 annual reports of Lafarge and Holcim, Lafarge sold 2.6 mil-lion cubic meters of RMC in India and Holcim’s subsidiary ACC Ltd sold 2.12 million cubic meters. Once the new en-tity is formed, combined RMC sales of 4.7 million cubic meters will make a serious competitor to UltraTech. RMC is a kind of concrete made according to preset re-quirements and delivered at work sites on truck-mounted mixers. Its advantages include better quality mixture and less on-site work. With the expectation that construction and infrastructure will pick up, this is the sector, that will benefit the most and will see a major cash generation, once that demand comes in. The industry average contribution of the RMC busi-ness to a cement company’s total turno-ver is around 5-7%. According to Cement Vision 2025, a Confederation of Indian

afargeHolcim repositions itself as the second largest cement maker in In-dia after selling two highly profitable

plants to Birla Corporation in an increas-ingly consolidated market. The sale of the Jojobera plant in Jharkhand and the Sonadih plant in Chhattisgarh, that awaits approval by the Indian regulators, was a condition for the recent global merger between giants Lafarge and Holcim. The asset divestment will push LafargeHolcim a tad behind UltraTech, the country’s top cement producer promoted by AV Birla Group. On the other hand, the merger is likely to strengthen LafargeHolcim’s finan-cial standing in India and its position on certain segments against their competitor, UltraTech Cement.

COSTLY DIVESTMENT In order to receive the approval for the merger, LafargeHolcim was asked to give up on two important plants. The two units being sold by Lafarge to Birla Corporation for Rs. 5,000 crore are among the most profitable cement plants in India, generat-ing about Rs.700 crore in pre-tax profits a year, even in the current depressed mar-ket. The two plants are established under

the Concreto and PSC brands and have a total annual capacity of about 5.15 million tons, partly because of the availability of raw materials in close proximity. The Con-creto and PSC brands were crucial for the

closure of the transaction, which would take Birla Corp.’s total annual capacity to manufacture the building material from 10 mt to 15 mt. “The acquisition, together with the two brands, perfectly fit into our

The merger is likely to

strengthen LafargeHolcim’s

financial standing in India and its

position on certain segments against their competitor,

UltraTech Cement.

Rolf Soiron, Holcim chairman, left, and Bruno Lafont, Lafarge chief


Industry-AT Kearney report released in April 2014, RMC accounts for 8% of over-all cement demand in India. This share is expected to increase up to 25% by 2025, the report said.

STRONGER PLAYER ON A CONSOLIDATED MARKET Although driven by the antitrust regula-tor, the Competition Commission of India, the deal with Birla also reflects the peren-nially consolidating nature of the cement industry in India, which has witnessed 20 mt of production capacity, changing its hands in seven deals with a combined value of Rs.16,000 crore in the past two years. The wave of consolidation in recent years was triggered by the entry of global giants, difficulties in setting up new plants and industrywide overcapacity. With some more cement assets on the block, industry experts expect more consolidation. Prior

to the LarfargeHolcim merger, Aditya Birla Group company, UltraTech Cement, India’s largest cement maker with an annual ca-pacity of more than 60 million tons, said in December it would buy two plants in cen-tral India from Jaiprakash Associates as it aims to take its output to beyond 70 million tons annually. This consolidation is hap-pening at a time when new players like Anil Ambani-led Reliance Group and Sajjan

Jindal-led JSW Group have big plans in the cement sector. Reliance Cement is aiming for a three-fold increase in capacity upto 15 million tonnes in the next three years, with

new plants being planned in Maharashtra and Madhya Pradesh. JSW Group is setting up 10 grinding units in the country to triple its cement and clinker capacities to 20 mtpa in the next three years.

India, the world’s second-largest cement industry after China, remains a key mar-ket for the Lafarge-Holcim Group, with a balanced portfolio in cement, aggregates,

and ready-mix concrete. After the merger the group will have a combined cement capacity of around 68 million tons in the country. The combined group will account

In order to receive the approval for the merger, LafargeHolcim was

asked to give up on two important plants.


FEATUREFEATURE

for nearly 20% of the total industrywide ca-pacity that stands at 366 million tons. The proceeds from the sale of the two plants to Birla will be used to further reduce debt and thus strengthen the group’s financial situation in the country.

In India, Holcim operates through sub-sidiaries ACC and Ambuja Cements, while Lafarge’s units include Lafarge India and Lafarge Aggregates & Concrete. Lafarge had forayed into the Indian cement mar-ket in 1999 with the acquisition of Tata Steel’s cement activity. Later it acquired the Raymond Industries’ plant in Chhat-tisgarh and snapped L&T’s concrete busi-ness. The company has plants in Chhattis-garh, Jharkhand, Bihar, West Bengal and Rajasthan and also have recently commis-sioned an integrated cement plant in Ra-jasthan with a split blending unit in Hary-ana with a combined installed capacity of 2.6 metric tonnes per annum (MTPA). As

Lafarge Cement Plant , Bhawaliya ,Chittaurgarh, India


on September 2014, Lafarge India had a capacity of 11 MTPA. The Lafarge units in the states of Jharkhand and Chhattisgarh, have a total capacity of 5.15 million tons a year and will take the Kolkata-based com-pany’s total capacity to 15 million tons.

LafargeHolcim Ltd. was formed in July and is now the world’s biggest cement maker with a market value of $38.7 billion. With a well-balanced presence in 90 countries and a focus on Cement, Aggregates and Concrete, LafargeHolcim is the world leader in the building materials industry. The Group has 115,000 employees around the world and combined net sales of EUR 27 billion in 2014. The new company aims to save 1.4 billion euros ($1.55 billion) within three years as a result of the merger.

The outlook for India’s cement industry will improve once the nation’s economic

growth starts picking up, driven by a slew of reforms initiated by Prime Minister Narendra Modi. The government has an-nounced plans to boost infrastructure de-velopment, including the so-called Smart

City and Housing For All projects, and also to expand the nation’s highways. All-India cement production grew 5.6 per cent in 2014-15 against three per cent in 2013-14, according to rating agency ICRA.

According to Centre for Monitoring Indian Economy analysis, the real estate sector alone is likely to see project completions worth Rs. 20-lakh crore during 2015-17. It

also expects activity to pick-up in the roads and highways construction space during the same period. “About 8,314 km of roads are expected to be built during 2015-16. During the subsequent year, infrastructure

companies are expected to construct 8,624 kms of road. This is much more than 3,400-4,500 km of road network added in each of the preceding five years,” the report stated. India is expected to post the fastest growth in cement demand of any major national market, advancing eight per cent per year through 2019, according to World Cement report issued by the Freedonia Group, a US-based industry research firm.

After the merger the group will have a combined cement capacity of

around 68 million tons in the country.


FEATURE

FOCUS ON MATERIAL HANDLING TOP STORIES IN MIDDLE EASTMr. Pietro De Michieli, Chief Operating Officer, Bedeschi SPA


FOCUS ON MATERIAL HANDLING TOP STORIES IN MIDDLE EAST


3.3 million tpa of clinker). Bedeschi will supply all the machinery for raw materials handling, as outlined below.

FEATUREFEATURE

he Middle East and North Africa economies have witnessed impressive expansion over the past few years.

Those countries boast one of the fastest growing construction sectors in the world, which in turn has led to growth in their cement industry. New requirements are also coming due to coal handling in Middle East.

Bedeschi is currently increasing its activities in those marketplaces with a number of new contracts in the raw material handling area of expertise, as described in the following case study.

CASE STUDY: EREN HOLDING - MEDCEM CEMENT PLANT Bedeschi and CTP are taking part in the construction of a new greenfield cement plant in Turkey for a production capacity of 10 000 tpd clinker (approximately

PREMIX STORAGEThis comprises two circular limestone pre-homogenization plant with luffing slewing stacker and bridge reclaimer, each with a total storage capacity of 50,000b ton and 2,000 t/h stacking capacity and 700 t/h reclaiming capacity.

ADDITIVE STORAGE (RAW MILL)An additive storage facility comprising 4x10 000 areas will store materials for both the raw mill and cement mill (iron ore, clay or sand at one side and gypsum and additives at the other). Stacking will be carried out via a first belt stacking system with a capacity of 2000 tph.

Iron ore and clay (or sand) will be reclaimed by a 250 tph side semi-portal reclaimer. From the additives storage plant, 300 tph belt conveyors will transport the iron ore,

CASE STUDY MEDCEM

Material Limestone/Premix

Bulk Density (t/m3) 1.4

Grain size (mm) 95%<80 – 100%<100

Moisture (%) 5-10 max

Resting angle (°) 38

Diameters of rails (m) 90

Total storage volume (t) 50 000

Stacking max. capacity (tph) 2000 each

Reclaiming max. capacity (tph) 700 each

Circular Storage


clay or sand to the raw mill’s feed hoppers. Dust filters will be installed. ADDITIVE STORAGE (CEMENT MILL)Gypsum and additives are stored in tone multi-box longitudinal sheed. A 250 tph side semi-portal reclaimer will be used to transport gypsum and additives to the cement mills’ feed hoppers. Again, dust filters will be installed for dedusting.

COAL PREBLENDING STORAGEA longitudinal storage has a 25,000 t capacity coal preblending. A 500 tph tripper car is installed to stack the coal and two 100 tph side semi-portal reclaimers reclaim coal.

CASE STUDY MEDCEM

Material Clay Iron Ore

Bulk Density (t/m3) 1.4 1.8

Grain size (mm) 0-100 0-100

Moisture (%) 10 3

Resting angle (°) 38-40

Total stored volume (t) 10 000 10 000

Stacking max. capacity (tph) 2000 max

Reclaiming max. capacity (tph) 250

Side Semi-Portal Reclaimer


FEATUREFEATURE

CASE STUDY: EREN HOLDING – ESILOVACIK PORT Finally, there are two shiploaders installed at the Yesilovacik Port designed for loading at a rate up to 1,400 t/h vessels with a capacity up to 40,000 DWT. The shiploaders are slewing and travelling type (figure 5). CASE STUDY: LES CIMENTS DE BIZERTE - TUNISIA Les Ciments de Bizerte, Tunisia, has commissioned to Bedeschi the modernization of the existing shiploader for cement, clinker, coke and coal, installed near the productive plant.

CASE STUDY MEDCEM

Material Coal and Petcoke

Bulk Density (t/m3) 0.8

Grain size (mm) 0-50

Moisture (%) 15

Resting angle (°) 35-38

Total stored volume at 38°(t) 12 500 + 12 500

Stacking max. capacity (tph) 500

Reclaiming max. capacity each (tph) 100 CASE STUDY MEDCEM

Material Additives Gypsum

Bulk Density (t/m3) 1.4 1.4

Grain size (mm) 0-100 0-100

Moisture (%) 5 5

Resting angle (°) 38

Total stored volume (t) 10 000 10 000

Stacking max. capacity (tph) 2000

Reclaiming max. capacity (tph) 250

CASE STUDY EREN HOLDING

Material Cement Clinker

Bulk density 1,05 t/m3 1.35

Temperature Ambient 110 ° C max

Moisture (by weight) dry 5% max

Size 0 - 1 0 – 30

Capacity 40,000 DWT

Ait Baha Cement Plant


The supply consists of:- Shiploader SHL 21/1200 to load

cement and clinker for export- Belt conveyors- Tripper TRP 8/1000- Grab crane to unload coal and pet-

coke for import

The shiploader has a nominal loading capacity up to 500tph of cement and clinker and a total installed power of maximum 300 kW.

The shiploading operation will be possible with wind speed under 20 m/sec. The machines are in the process of delivering.

CASE STUDY: CEMENT PLANT AIT BAHA – MOROCCOBedeschi recently commissioned the equipment for the complete raw material handling system at Italcementi’s greenfield Ait Baha plant, close to the port city of Agadir in the southwestern Morocco. The facility includes four longitudinal storage halls for raw material feeding, including coal storage.

The company’s scope of supply included the complete set of equipment for the 1.5 km transport system from the limestone quarry up to the plant as well as all the material receiving departments with apron feeders, screens, bucket elevators, chain conveyors and belt conveyors, totaling more than 5000 m in length. CONCLUSIONBedeschi Group (including ONT & CTP) will be for our customers a guarantee of more efficient and reliable solutions in the handling sector. Thanks also to the know-how of CTP a leading provider of filtration, gas treatment, equipment and services in the cement, steel and metals, power plant and glass sectors, Bedeschi Group is able to meets the client’s needs offering projects environmental friendly and with a low energy impact.

CASE STUDY CEMENT PLANT AITH BAHA

Equipment Material Capacity

QUARRY LIMESTON HANDLING DPT

Belt Conveyor NG 1450/1400 Limestone 2000

LIMESTONE HANDLING DPT WITH LONGITUDINAL STORAGE

Stacker STK 25/1600 Limestone 2000

Blade Bridge Reclaimer PAL T 220/34 Limestone 800

CLAY-SILT HANDLING DPT WITH LONGITUDINAL STORAGE

Stacker STK 21/1000 Clay-Silt 500

Blade Bridge Reclaimer PAL T 130/25 Clay 300

Blade Bridge Reclaimer PAL T 130/25 Silt 300

Reversible Apron Feeder RNSR 8/2000 Clay-Silt 500

ADDITIVES HANDLING EQUIPMENT WITH LONGITUDINAL STORAGE

Stacker STK 20/1200 Additives 500

Blade Bridge Reclaimer PAL F 130/25 Additives 200

Feeder CNT 14/2500 Cement Additives 150

Feeder CNT 14/2500 Raw Meal Additives 150

COAL HANDLING DPT WITH LONGITUDINAL STORAGE

Stacker STK 28/1200 Coal 500

Blade Bridge Reclaimer PAL T 130/34 Coal 150

Reversible Apron Feeder RNSR 8/2000 Coal 500

PLANT TRANSPORT SYSTEM

Belt conveyors (total 3800 m) Various 200-2000

Dedusting filters (CTP) in all transfer points and receiving sections Various 5000-40000 m3/h

CASE STUDY LES CEMENT DE BIZERTE

Material Cement Clinker

Size 0 to 1 mm 0 to 50 mm

Design Capacity 500 500


Though Argentina has seen a steep year-on-year (YoY) increase in cement demand in July 2015, the cement market has been reported to have experienced severe cement shortages in various prov-inces. These shortages have contributed to a sharp boost in cement prices, but the situation is expected to stabilize in the following weeks. On a YoY basis, cement output in Argentina rose 11.5 percent in July 2015.

Though cement demand in Chile increased at a double-digit YoY rate in July 2015, demand growth this year is expected to remain moderate. However, several new infrastructure projects are expect-ed to kick off and therefore contribute to an increase in sales of the building material. Meanwhile, Colombia’s Argos has been reported to look at Chile as a potential new investment market, where it would enter both the cement and ready-mix market.

In Saudi Arabia, cement demand has been aided by strong construction activity in the country, see-ing steep YoY growth. Furthermore, moves to solve the housing crisis in the country are projected to boost further demand for cement in the medium term. However, volumes of cement sales, as well as cement production, have declined dramatically on a month-on-month basis. On the other hand, many cement producers in the country are seeing their clinker and cement stocks rise due to low export volumes. Companies are negotiating with the Ministry of Commerce to allow the re-export of their products to achieve better sales.

Though the Colombian government has cut its 2015 budget on the back of declining oil prices, thus negatively affecting infrastructure growth, construction activity is projected to strengthen this year, albeit at a slower rate. Multiple signed free trade agreements are creating significant demand for new capacity and better quality infrastructure. Improved access to ports and adequate highways will be essential if the country is to meet the expected increase in exports.

In India, the construction sector is expected to grow over the next decade after the election of the new Modi government. The removal of barriers to foreign investment is projected to spur demand for construction in the following year. FY16 is expected to bring about improved utilization rates, while the 6.5-8 percent increase in cement demand is expected to balance out supply additions in

In Saudi Arabia, cement demand

has been aided by strong construction

activity in the country, seeing

steep YoY growth. Furthermore...

CEMENT VOLUMESCEM

ENT

MAR

KET

S

CW Research

JULY 2015 YEAR-ON-YEAR CEMENT DEMAND GROWTH (%)So

urce

: CW

Res

earc

h

-15%

-10%

-5%

0%

5%

10%

15%

Arge

ntin

a

Chile

Saud

i Ara

bia

Colo

mbi

a

Cypr

us

Mor

occo

Pola

nd

Germ

any

Thai

land

Japa

n

Fran

ce

Ecua

dor

To learn more, please contact the CW Research team at [email protected] or +1-702-866-9474


CEMEN

T MAR

KETS

the country. Several international cement manufacturers, including CRH, LafargeHolcim and Hei-delberg, are looking for opportunities to expand their operations in India.

While Poland’s demand for cement remains strong, growth in cement production has eased in the more recent months. Some cement manufacturers in the country have been forced to reduce produc-tion volumes due to the new electricity usage polices imposed by the government, but the situation is expected to stabilize in the short term. Meanwhile, construction activity in the country is poised to see continued growth in 2015. Civil engineering will be the main driver for the construction sec-tor’s growth, driven by increased construction activity in EU-funded projects reaching completion, in particular in the railway and water and sewage construction segments.

Thailand’s cement production dropped 1.2 percent in July 2015 as compared to the same month in 2014, while production of the building material saw a 1.6 percent YoY fall. However, demand is ex-pected to recover in 2015 due to Thailand government’s economic stimulus measures. Furthermore, Thailand expects to boost its export volumes for cement due to incoming orders for shipments in the fourth quarter of the year.

Demand for cement in Japan has been falling. On top of declining domestic demand, Japan’s exports have also been on a downward curve. Japan’s construction and infrastructure growth has seen ongo-ing decline as the economic stimulus measures implemented by the government in 2013 started to wear off.

Demand for cement in Russia has been falling, the decline being reflected in the 6.6 percent YoY fall in cement production in July 2015. Though 2015 saw a decline in non-residential construction activity, as well as many postponed new developments that delayed the expansion of Russia’s still struggling construction industry, the construction industry in Russia is projected to resume growth in 2016. Political tensions between Russia and developed countries are expected to ease gradually from 2016 onwards, with Russia being more interested in improving deteriorating relationships, as oil prices will not rebound to triple-figure values in the near future.

Thailand’s cement production dropped 1.2 percent in July 2015 as compared to the same month in 2014, while production of the building material saw a 1.6 percent YoY fall.

CW Research


JULY 2015 YEAR-ON-YEAR CEMENT PRODUCTION GROWTH (%)

Sour

ce: C

W R

esea

rch

-10%

0%

10%

20%

30%

Cypr

us

Viet

nam

Arge

ntin

a

Saud

i Ara

bia

Indi

a

Colo

mbi

a

Ukra

ine

Pola

nd

Thai

land

Japa

n

Chin

a

Bela

rus

Russ

ia


MAR

KET

DAT

A SN

APSJ

OT

Volume variation analysis for selected countries that are major consumers, producer, importers and exporters of cement. This is a selection of notable markets. Additional detail is available from CW Research as well as on-line at http://www.cemweek.com to the market data section.

MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous year

CW Research

Cement Production (million tons)

Cement Production MoM (%)

Cement Exports (million tons)

Cement Exports MoM (%)

Cement Consumption MoM (%)

Cement Consumption (million tons)

Cement Imports (million tons)

Cement Imports MoM (%)

Country LM MoM (%) YoY (%) YTD YTD (%) Country LM MoM (%) YoY (%) YTD YTD (%)

Country LM MoM (%) YoY (%) YTD YTD (%) Country LM MoM (%) YoY (%) YTD YTD (%)

Argentina (Jul) 1.1 1% 12% 7.0 11% France (Jul) 1.7 -8% -9% 10.4 -8%China (Jul) 211.4 -3% -5% 1,283.3 -6% Germany (Jul) 2.6 1% -1% 13.9 -4%Colombia (Jul) 1.1 8% 3% 7.4 6% Indonesia (Jun) 4.8 0% -6% 27.8 -4%India (Jul) 23.3 1% 5% 160.9 7% Pakistan (Jul) 2.6 -4% 50% 17.7 12%Japan (Jul) 5.0 5% -3% 34.1 -3% Peru (Dec) 0.9 -4% 8% 10.5 3%Mexico (Jun) 3.3 -5% 13% 19.8 10% Saudi Arabia (Jul) 2.9 -38% 10% 35.3 10%Russia (Jul) 7.1 -13% -7% 37.4 -5% South Korea (May) 4.9 7% 16% 19.7 12%Saudi Arabia (Jul) 3.0 -38% 11% 36.0 10% Spain (May) 1.0 6% 5% 4.5 5%Thailand (Jul) 3.2 -7% -1% 24.2 -1% Turkey (May) 7.5 14% 22% 26.8 2%Vietnam (Jul) 5.7 -5% 16% 37.8 10% US (Jun) 8.4 2% 11% 40.2 7%

China (Apr) 1.0 174% -6% 2.6 -20% Brazil (Jul) 0.0 189% 22% 0.3 -26%Germany (May) 0.4 -6% 0% 1.5 -8% Canada (Jun) 0.1 85% 42% 0.4 -7%Japan (Jul) 0.5 24% 21% 3.2 11% France (Jun) 0.2 8% -13% 1.2 -14%South Korea (Jul) 0.3 23% -9% 1.9 -16% Malaysia (Jun) 0.1 0% 2% 0.4 -23%Thailand (Jul) 0.6 -11% 1% 5.4 11% US (Jun) 0.9 3% 28% 3.9 40%

-60%

-40%

-20%

0%

20%

40%

60%

Argentina China Colombia IndiaJapan Mexico Russia Saudi ArabiaThailand Vietnam

-60%

-40%

-20%

0%

20%

40%

60%

80%

France Germany Indonesia PakistanPeru Saudi Arabia South Korea SpainTurkey US

-100%

-50%

0%

50%

100%

150%

China Germany Japan South Korea Thailand

-100%-50%

0%50%

100%150%200%250%300%350%

Brazil Canada France Malaysia US

Jul‘14

Aug‘14

Sep‘14

Oct‘14

Nov‘14

Dec‘14

Jan‘15

Feb‘15

Mar‘15

Apr‘15

May‘15

Jun‘15

Jul‘15

Jul‘14

Aug‘14

Sep‘14

Oct‘14

Nov‘14

Dec‘14

Jan‘15

Feb‘15

Mar‘15

Apr‘15

May‘15

Jun‘15

Jul‘15

Jul‘14

Aug‘14

Sep‘14

Oct‘14

Nov‘14

Dec‘14

Jan‘15

Feb‘15

Mar‘15

Apr‘15

May‘15

Jun‘15

Jun‘14

Jul‘14

Aug‘14

Sep‘14

Oct‘14

Nov‘14

Dec‘14

Jan‘15

Feb‘15

Mar‘15

Apr‘15

May‘15

Jun‘15

Jun‘14

Source: CW Group analysis estimates



CEMEN

T ENER

GY MAR

KETS

China has started mov-ing coal from inland mines to coastal users. Therefore, it is expected that China will no longer have to import coal. Rather, it will have the capability to export the same to other countries.

CEMENT ENERGY MARKETSCoal Market UpdateGlobal trading volumes decreased to 82.76 million tons in July 2015, declining 1.8 per-cent in comparison with 84.26 million tons recorded in June 2015. A decline in coal trading volumes was observed in Australia, Russia, Indonesia and Colombia, whereas the US and South Africa showed some increase in coal trading volumes. China’s concern on increasing pollution has initiated a shift from thermal power production. Reduced growth prospects are contributing to less demand for thermal coal.

China has started moving coal from inland mines to coastal users. Therefore, it is ex-pected that China will no longer have to import coal. Rather, it will have the capability to export the same to other countries. With demand slowing and traded thermal coal markets well supplied, thermal coal imports are expected to remain subdued.

Australia coal deliveries deceased 5.7 percent MoM in July 2015 to reach approximately 16.9 million tons, down 6.9 percent when compared to July 2014 index. The Australian coal sector is already struggling under low commodity prices and weak demand. The recent reporting season confirmed that many Australian coal mines are loss-making, in-cluding the local coal divisions of Glencore, Yancoal, South32 and WLC. Additionally, the National Bank of Australia has ruled out funding Adani’s AUD 16.5 billion ($11.2 billion) Carmichael thermal coal export project in the Australian state of Queensland’s Galilee coal field.

Russia exported 12.3 million tons of coal in July 2015, declining 0.1 percent in com-parison to June 2015 and increasing 0.2 percent from June 2014’s coal export volumes. The coal market conditions remain difficult due to slower demand growth and abundant supply. Major coal producer Adaro Energy has lowered its production target from 56-58 million tons previously to 54-56 million tons to mitigate oversupply that led to plunging commodity prices. Although the short-term outlook for coal remains challenging due to slower demand growth and macroeconomic uncertainty, it is expected that the demand for coal will play a key role in the future.

CW Research

Nov ’

14De

c ’14

Jan ’

15Fe

b ’15

Mar

’15

Oct ’

14Se

p ’14

Aug ’

14Ju

l ’14

Jun ’

14M

ay ’1

4Ap

r ’14

Mar

’14

Feb ’

14Ja

n ’14

Dec ’

13No

v ’13

Oct ’

13Se

p ’13

Aug ’

13Ju

l ’13

Jun ’

13M

ay ’1

3Ap

r ’13

Mar

’13

Feb ’

13Ja

n ’13

Dec ’

12No

v ’12

Oct ’

12Se

p ’12

Aug ’

12Ju

l ’12

Jul ’

15Ju

n ’15

May

’15

Apr ’

15

Indonesia Australia Russia South Africa Colombia US Rest

0

20

40

60

80

100

120

COAL GLOBAL TRADING (million tons)

Sour

ce: c

usto

ms

data



Demand from China has also slowed as its economy grows

at its slowest pace in decades and the Chinese

government’s fight against pollution,

Energy Prices Update

COAL:The average coal price for August 2015 closed at $60.13 per ton, decreasing 2 percent as compared to July’s price of $61.43 per ton and down 19 percent as compared to August 2014’s price of $74.11 per ton. Coal futures have fallen to 12-year lows, hit by increasing production and a slowdown in global buying, including from India and China, which have been the pillars of strong demand.

The steady and sharp fall in coal prices has brought down shares of big mining companies like BHP Billiton, Glencore and Rio Tinto, and it has seen many financers exit the sector. The price fall follows a rise in output from exporters like Australia, and at the same time a sharp slowdown in overseas orders from major importers like the US, China and India.

Demand from China has also slowed as its economy grows at its slowest pace in dec-ades and the Chinese government’s fight against pollution, to which coal contributes significantly. In the US, increase in natural gas from shale formations has made gas much cheaper, eating into coal’s US power generation share. The government also plans to move away from coal for environmental reasons. Demand in Europe has been flat as en-ergy efficiency improves, renewables take increasing shares of the power mix and many of its economies struggle to grow.

However, it is expected that low coal prices could start to stimulate demand as it has made the fuel super-competitive against its main competitor, natural gas. Emerging markets, which have yet to provide electricity to all households and need cheap energy to develop their industries still mostly, rely on coal as their main fuel as they prioritize low costs over environmental concerns.

All physical coal markets have weakened in 2015, with Australian coal down 1.7 percent since January, South African cargoes 15.5 percent down and European coal down 16.5

CEM

ENT

ENER

GY M

ARK

ETS CW Research

Sour

ces:

EIA

, Col

ombi

a M

inis

try

of M

ines

and

Ene

rgy,

IM

F, In

done

sia

Min

istr

y of

Ene

rgy

and

Min

eral

Res

ouce

s

US exported Colombia exported Australia Newcastle Indonesian HBA South Africa Richards Bay

5060708090

100110120130140

Dec ’

13

Feb ’

14

Oct ’

13

Aug ’

13

Jun ’

13

Apr ’

13

Feb ’

13

Dec ’

12

Oct ’

12

Aug ’

12

Jun ’

12

Apr ’

12

Feb ’

12

Dec ’

11

Oct ’

11

Aug ’

11

Jun ’

14

Aug ’

14

Oct ’

14

Dec ’

14

Apr ’

14

Feb ’

15

Jun ’

15

Jun ’

15

Apr ’

15STEAM COAL FOB AVERAGE PRICES (US$/TON)



The Chicago Coalition to Ban Petcoke has created a tool to help Chicago residents make decisions about protecting themselves when the weather conditions present a hazard.

percent. Coal prices have also been moved by changes in regional supply and demand. Thermal coal markets have been very volatile recently, pulled up and down by global markets as well as regional demand and supply swings. However, the overall outlook for coal remains weak as high output clashes with falling consumption.

PETCOKE:US petcoke exports decreased 8.1 percent to 2.4 million tons in June 2015 as compared to the previous month, and down 9.6 percent as compared to June 2014. The US export price for petcoke for June 2015 closed at $64.3 per ton, decreasing 0.3 percent as com-pared to May’s price of $ 64.49 per ton and down 14 percent as compared to June 2014’s price of $75.16 per ton.

High sulfur Saudi petcoke is giving stiff competition to USGC petcoke due to its cheaper prices and improved availability in the Indian market. However, due to large inventories of petcoke with most buyers, the demand for the product is quite low at the moment, but is expected to pick up in September when monsoon season ends.

Fuel product consumption or sales in India increased 6 percent YoY to 58.73 million tons in April-July 2015. Consumption of petcoke advanced 7.1 percent YoY to 1.23 million tons in July 2015. Sales of petcoke increased 19.2 percent YoY in April-July 2015.

The Chicago Coalition to Ban Petcoke has created a tool to help Chicago residents make decisions about protecting themselves when the weather conditions present a hazard. Petcokealerts.org is a new website, which allows residents of Chicago’s Tenth Ward to receive text message updates when windy conditions increase their exposure to petcoke.

According to data from the Turkish Statistical Institute, the country’s imports of uncal-cined petcoke increased 3 percent YoY to 1.99 million tons in the first half of 2015. Total sales of uncalcined petcoke fell 15 percent YoY to $164.88 million, with the average im-ported price at $82.87/ton.

Exxon Mobil Corp is undergoing planned maintenance at its 560,500-barrel-per-day (bpd) Baytown, Texas, refinery. The company plans to shut a 135,000-bpd crude distilla-tion unit to begin a planned 40-day overhaul. It also plans to shut a 51,500-bpd delayed coking unit associated with the CDU at the refinery as a part of the overhaul. Addition-

CEMEN

T ENER

GY MAR

KETS

CW Research

US PETCOKE EXPORT PRICE (US$/ton) Monthly price

J ‘13

J ‘13

S ‘13

A ‘13

O ‘13

N ‘13

D ‘13

J ‘14

F ‘14

M ‘1

4

A ‘14

M ‘1

4

J ‘14

J ‘14

A ‘14 S ‘14

O ‘14

N ‘14

D ‘14 J ‘15

F ‘15

M ‘1

5

J ‘15

M ‘1

5

A ‘15

Rolling 12-month average

0102030405060708090

Sour

ce: c

usto

ms

data



In its August “Drilling Productivity Report,”

EIA forecasts that gas production will decline in all seven of the US’ major

shale regions in September, the first across-the-

board slump in shale gas production ever recorded by

the agency.

ally, Motiva Enterprises restarted its 28,500 barrels per day coker last week at its 238,000 barrels per day Norco, Louisiana, refinery.

NATURAL GAS:The US Henry Hub spot price traded at $2.82 per MMBTU in August 2015, decreasing 0.6 percent MoM. The US is producing more natural gas than ever in 2015, despite low prices that make it increasingly difficult for companies to spend money on drilling. In fact, the government’s Energy Information Administration forecasts a 5.4 percent in-crease in output this year compared to 2014.

In its August “Drilling Productivity Report,” EIA forecasts that gas production will de-cline in all seven of the US’ major shale regions in September, the first across-the-board slump in shale gas production ever recorded by the agency. In May, production reached an all-time high of 45.6 billion cubic feet a day in the shale regions, including the Marcel-lus in Pennsylvania, the biggest gas field in the US. According to EIA’s projections, the daily output is expected to fall to 44.9 billion cubic feet by September.

Temperatures are expected to be warmer in the South and East over the next several days, while temperatures in the West are likely to cool off, lowering demand for air condition-ing in California. Temperatures in the Midwest and west of the Mississippi River have been a few degrees warmer, which likely raised demand for natural gas. While demand is not expected to skyrocket, it should still be high.

Price in Europe increased 0.3 percent MoM, reaching $7.0 per MMBTU in August 2015. Dutch and German spot prices held their premium to the respective front-month con-tracts. Russia’s energy giant Gazprom is estimating an average price for gas deliveries to Europe in 2015 between $235 and $242 per 1,000 cubic meters.

The head of Gazprom warned European customers that if their countries angled for a sin-gle price for natural gas, it would most likely be at the higher end of the range they now pay. China and Russia have announced plans for vast new natural gas deliveries from Siberia to China. Currently, about a quarter of European Union gas comes from Russia, and at least half of that supply flows through Ukraine.

CEM

ENT

ENER

GY M

ARK

ETS CW Research

Sour

ce: E

IA, W

orld

Ban

k

NATURAL GAS PRICES (US$/MMBtu)

US Europe Japan LNG

02468

101214161820

Dec ’

00

Apr ’

00

Aug ’

99

Dec ’

02

Apr ’

02

Aug ’

01

Dec ’

04

Apr ’

04

Aug ’

03

Dec ’

06

Apr ’

06

Aug ’

05

Dec ’

08

Apr ’

08

Aug ’

07

Dec ’

10

Apr ’

10

Aug ’

09

Dec ’

12

Apr ’

12

Aug ’

11

Dec ’

14

Apr ’

14

Aug ’

13

Aug ’

15



Coal - Exports (million tons) - Jul 2015 Petcoke - Exports (million tons) - Jun 2015

US petcoke exports prices MoM (%)

Petcoke - Global export prices (USD/ton) - Jun 2015

Natural Gas Prices (US$/mmBtu) - Aug 2015

Natural Gas prices MoM (%)

Coal Exports MoM (%)

Coal - Imports (million tons) - Jul 2015

Coal - Global export prices (USD/ton) - Aug 2015

Coal export prices MoM (%)

Country LM MoM (%) YoY (%) YTD YTD % Country LM MoM (%) YoY (%) YTD YTD %

Country LM MoM (%) YoY (%) YTD YTD %




Indonesia 29.2 -2% 0% 203.3 -1% Total US 2.4 -8% -10% 15.5 -6%

Australia 16.9 -6% -7% 115.0 2% To Mexico 0.2 -8% 13% 1.4 47%

US 4.6 -12% -29% 42.5 -21% To India 0.4 -3% -20% 2.3 18%

Colombia 6.1 -3% -32% 43.6 -9% To Brazil 0.2 19% 47% 1.1 1%

South Africa 5.6 22% -10% 41.3 2% To Turkey 0.3 68% 20% 1.2 -25%

To Italy 0.0 -71% -46% 0.6 -26%

China 21.3 28% -8% 121.1 -32%

Japan 17.9 13% 5% 109.8 0%

Korea, South 11.9 1% 7% 80.2 4% Total US 64.3 -0.3% -14% 65.5 -14%

India 19.3 -4% 8% 148.1 18% To Mexico 58.3 -0.7% -7% 62.1 -3%

Turkey 2.3 -17% -15% 18.3 15% To India 64.4 0.6% -23% 66.3 -25%

To Brazil 55.6 1.2% -11% 66.2 6%

To Turkey 56.4 -0.8% -17% 56.6 -17%

To Italy 56.8 -1.1% -17% 54.7 -19%

Indonesia 59.1 0.0% -16% 62.2 -18%

Australia 62.2 -1.8% -16% 64.0 -19%

US 69.3 1.8% -16% 70.3 -17%

Colombia 55.9 -6.0% -23% 62.3 -16% Europe 7.0 0% -24% 7.7 -26%

South Africa 54.1 -5.3% -24% 59.9 -20% US 2.8 -1% -28% 2.8 -40%

-60%

-10%

40%

90%

140%

190%

Indonesia Australia US Colombia South Africa

-30%-20%-10%

0%10%20%30%

Indonesia Australia US Colombia South Africa

-60%

-20%

20%

60%

100%

Global Mexico India Brazil Turkey Italy

-20%

-10%

0%

10%

20%

30%US Europe

Jul‘14

Aug‘14

Sep‘14

Oct‘14

Nov‘14

Dec‘14

Jan‘15

Feb‘15

Mar‘15

Apr‘15

May‘15

Jun‘15

Jul‘15

Jul‘14

Aug‘14

Sep‘14

Oct‘14

Nov‘14

Dec‘14

Jan‘15

Feb‘15

Mar‘15

Apr‘15

May‘15

Jun‘15

Jun‘14

Aug‘14

Jul‘15

Aug‘15

Sep‘14

Oct‘14

Nov‘14

Dec‘14

Jan‘15

Feb‘15

Mar‘15

Apr‘15

May‘15

Jun‘15

Aug‘14

Jul‘15

Aug‘15

Sep‘14

Oct‘14

Nov‘14

Dec‘14

Jan‘15

Feb‘15

Mar‘15

Apr‘15

May‘15

Jun‘15

Volume variation analysis for selected countries that are major importers and exporters of coal and petcoke. This is a selection of notable markets. Additional detail is available from CW Research as well as on-line at http://www.coalweek.com/ to the market data section.

MAR

KET D

ATA SNAPSH

OT

LM: latest month Jan 2015 except where specified; MoM: month vs previous month; YoY: month vs same month last year; YTD: year-to-date; YTD%: year-to-date vs previous yearSource: CW Group analysis estimates

CW Research



PEOPLE

EAST AFRICAN PORTLAND CEMENT WELCOMES ITS NEW CHIEF OPERATING OFFICER The board of directors of East African Portland Cement have appointed Albert Sigei as new Chief Operating Officer. He will be responsible for operation excellence and business growth of East African Port-land Cement. Sigei will also be responsible for production operations, production en-gineering and supply chain management, sales and marketing. He has an 18-year re-cord of management and leadership in the cement industry. Until his appointment, Sigei was Vice-President of Business Sup-port & Ready Mix operations with Lafarge, Nigeria. He has also worked with Pricewa-terhouseCoopers in the past.

LAFARGE FRANCE APPOINTS NEW PROJECT MANAGER Bénédicte de Bonnechose is the new project manager of Lafarge France. Bon-nechose has handled many managerial functions in her recent past. She is the first women to be appointed as Project Man-ager in the history of Lafarge. Bénédicte worked as CEO of the aggregates business in France. She started her career in finance and banking in 1993. She has a clear vision and the ability to lead others. Bénédicte new job requires her to manage 4,500 em-ployees at 400 sites.

NEW MANAGER FOR LAFARGE UNIT IN CANADA After 34 years under the same manage-ment, the LafargeHolcim cement plant in

Exshaw has a new manager. Jim Bachmann was appointed as plant manager. The new manager is keen on connecting with peo-ple from the plant and people from the community in Exshaw, Canada. “We want to be a partner in the Bow Valley. That’s our objective,” said the new plant manager. His new position is an extension from his previous role as the plant extension man-ager. Bachmann joined Lafarge in 2004 af-ter working in the gold mine industry. He worked in Alpena, Mich. and Tulsa, Okla.

INDIA: 33 PERCENT SALARY HIKE FOR CEMENT WORKERS The representative body for cement mak-ers in India has announced a salary hike for cement workers, which will be imple-mented over next two years in the country. As per the settlement, additional Rs 6,000 would be given to cement workers in two instalments of Rs 3,000 each in April 2014 and September 2016, which translates into a 33% hike in salary. It also provides for

enhanced Dearness Allowance. The arrears for 16 months will be paid in two instal-ments. CMA represents 20 cement compa-nies in India; it covers around 66 percent of total annual cement production capacity in the country. The Vice Chairman and MD of India Cements said “The current settle-ment is unique in today’s scenario since it is perhaps the only nation-wide settlement reached for workers of a major organised industry in the private sector.”

LAFARGEHOLCIM APPOINTS CEO FOR ITS UNIT IN RUSSIA LafargeHolcim has appointed Guillermo Brusco as the new CEO of its unit in Russia. The competence of Guillermo Brusco in-cludes leadership and strategic development of company in the Russian market. Guillm-ero Brusco has over 15 years of experience in the cement industry. Guillermo Brusco graduated from the National University of Cordoba in Argentina, with a master’s de-gree in civil engineering. He is a graduate of Harvard Business School. He has an MBA from the University of Bournemouth, UK. “LafargeHoclim brought together two com-panies with a rich history, culture and expe-rience and great leadership potential. To be the head of its Russian business –is a great honour for me. Our challenge is to integrate all areas of the new company, as well as its commercial transformation. I am confident that the professionalism of our team will help solve these problems successfully and effec-tively, “said Guillermo Brusco, commenting on the appointment. LafargeHolcim is pre-sent in 90 countries.

GUILLERMO BRUSCOCEO, LafargeHolcim (Russia)


REGIONAL REPORT:

ALGERIA RECORDS DECLINE IN BUILDING MATERIALS IMPORTS Algeria recorded increased imports, which totalled USD 1.49 billion from January to July 2015. Imports of building materials in Algeria declined by 30 percent to USD 1.49 billion from January to July, compared with USD 2.12 billion in the same period last year. Cement imports fell 13 percent over the first seven months of 2014 to USD 306.94 million. In 2014, the Algerian imports building mate-rial totalled USD 3.65 billion, an increase of 6.4 percent over 2013.

CAMEROON: CEMENT MARKET SEES INCREASE IN CAPACITY The new Dangote cement plant in Cam-eroon has not influenced cement pricing in the country. Authorities have witnessed a tacit agreement between companies in the cement sector. They were expecting declines in cement prices, as cement is an indispensible product in public works and construction. Dealers of cement in Cam-eroon continue selling imported brands of cement, despite increase in produc-tion capacity by local cement producers. This might be one of the reasons for the high prices of cement in Cameroon. Lo-cal cement companies have increased their production capacity: Cimencam boosted capacity to 1.6 million tons, Lafarge and Ciments de l’Afrique added 500,000 tons. Dangote Cement’s plant in Cameroon

has an estimated production capacity of 950,000 tons.

CEMENT INDUSTRY REVIVES TANZANIA’S ECONOMY Up to five years ago, Tanzania had three ce-ment plants with a combined installed ca-pacity of 4.65 million tonnes a year, but to date there are seven cement producers in Tanzania. Dangote Cement unit in Nigeria is scheduled to start production before the end of 2015. The two giant cement manu-facturers of the country- Tanzania Port-land Cement and Tanga Cement also plan to expand its operations. Tanzania Port-land Cement recorded reduced net profit for the first half of this year to 18 percent due to raising operations pushed by depre-cation of Tanzanian shilling against the US

dollars. Tanzania had seven cement com-panies namely, Tanzania Portland Cement, Tanga Cement, Simba Cement, ARM Ce-ment, Camel Cement, Nyati Cement, and Lee Building Materials. These seven com-panies have a combined installed capacity of 4.650 million tons per year. The Tanza-nian cement industry has to deal with cer-tain problems like high cost of production propelled by energy cost, cheap import of cement and overcapacity in the market. Tanzanian cement producers have urged the government to control the situation.

MOROCCO: CEMENT MARKET RECORDS INCREASE IN SALES Cement prices and sales in the Moroccan cement market recovered after a long de-cline. The municipal elections, which will be held in the first week of September, boosted sales of cement. The sale of ce-ment recorded a 1.3 percent decline in the first half of this year, after a decline of 3.4 percent in the same period of last year. The recovery in cement sales is due to planned projects put forward during the election. Cement consumption increased during the first quarter of 2015.

CEMENT CONSUMPTION IN ITALY DECLINES Italy’s consumption volumes of cement were reduced by nine percent year on year

EUROPE

COMPANY/LOCATION OVERVIEW

Governmental/tajik-istan

the Tajik government and the Chinese Huaksin will set up a cement plant in Tajikistan with a production caapcity of 1.5 million tons of cement per year. Pro-duction at the plant is estimated to begin by early 2016.

itlacementi/BulGaria Italcementi's plant in Bulgaria has begun production. The plant was set up in 2012 through an investment of Lev 325 million

orelstroyteh/russia The company has signed an agreement for the settign up of a cement plants in the Verkhozsky district. The plant will have an yearly cement capacity of 1.6 mil-lion tons per year and will come on line in 2016. Nineteen million rubles is the estimated cost for the investment.

eurocement/russia Eurocement plans to upgrade all of its Russian productio operations to the mod-ern dry process. Moreover, the company plans to increases its current cumulated production capacity of 10 million tons to 60 million tons by 2020

Dangote cement plant in Cameroon


in July 2015. The volume of cement sales in Central Italy were flat year on-year, while other areas have seen high single digit decline rates. Price increases made by leading industry players have probably had to some effect of pre-purchases, but July data is disappointing. Italian cement giants Buzzi Unicem, the number two cement maker in the Italian market, and Colacem, number three, are likely to renew their focus on the restructuring in the domestic market.

SAUDI ARABIAN CEMENT COMPANIES TO ESTABLISH ACADEMY Ahmed Bin Abdu Ezkil, general manager of Saudi Arabian cement manufacturer Yanbu Cement initiated a move, together with other cement companies, to establish an academy for the cement industry. Ac-cording to the executive, the academy will officially open in 2016. The academy will focus on training Saudi technicians since most of the technical labor in Saudi is pro-vided by foreign cement companies.

CEMENT AND CONCRETE TO BE USED FOR ROAD CONSTRUCTION IN NIGERIA Nigeria’s former Minister of Works, Mike Onolememen, said earlier this year that the federal government was set to begin trying the construction of roads using ce-ment and concrete. The use of cement is expected to make roads last longer in Ni-geria. The minister said two roads would be the first beneficiaries after the approval of this year’s budget. Unfortunately, the Peoples Democratic Party lost the presi-dential election and he lost his position as minister of works. One of those roads is the Kachia-Baro road to connect the Federal Capital Territory to Baro Port in Niger. The second one is the Ikorodu-Sagamu road in Lagos state. According to Onolememen, they will come on stream as soon as the budget is approved. The government is taking measures to regu-late the movement of heavy duty trucks to eliminate the high incidence of potholes, caused mostly by such vehicles. As a result, cement companies in Nigeria are expand-ing capacity. Dangote can produce 29.25 million tons of cement every year from three integrated plants in Obajana, Gboko and Ibese. Annual cement consumption in Nigeria is still below 20 million tons per year. With almost 80 percent of the roads in the country in need of paving, road construction definitely is that new use to which cement must be applied.

VALUE OF CEMENT PRODUCTION IN NIGERIA DECLINES The Nigerian cement industry pushed N351.87 billion worth of products into the Nigerian and West African markets within 2014. However, the figure was lower than the N359.66 billion posted in 2013. The ce-ment industry is driven by a housing defi-cit of about 18 million units, infrastructure gap and rising rural-urban migration. The decline in the production value in the in-dustry may be attributed to the cement grades war which affected most players, as well as insecurity in the north-east which intermittently shut down Ashaka Cement’s plant in Gombe State. According to Peter Hoddinott, Lafarge Africa’s area manager for Nigeria and West Africa, the Nigerian market shows tremendous opportunity for investment despite challenges.

AFRICA


PPc/ZimBaBwe PPC has earmarked USD 200 million in expanding its production facilities in Zimbabwe. The South African manufacturer will add new milling facilits at the Harare plant, as well as milling and clinker assets in Bulawayo and Gwanda. The upgrades will bring the company's total capacity in the country to 1.2 million tons f cement per year

DanGote/cameroon Dangote plans to build a new cement plant in Cameroon, with a capacity of 1.5 million tons of cement per year. The investment required for the integrated plant is of USD 150 million and construction works will be completed in 20 months

kwanZa sul cement/anGola

the company will increase production at its only plant in the short and medium term in order to reach a daily cement production capacity of 4,500 tons per day

Qalaa holDinGs/suDan The Egyptian company plans on boosting the production capacity of its Sudan-eze cement plant to 0.8 million ton per year by 2016. At the moment, the plant has a 0.4 million tons per year cement capacity

cimPor/moZamBiQue Cimpor is to invest USD 250 million in a new cement production unit in Mozam-bique. The company's existing plants in the country currently have a 3.1 million tons capacity

limak/moZamBiQue The Turkish cement manufacturer plans to invest USD 150 million in a cement plant with a 2 million tons per year capacity. The plant will be set up in the Mapu-to port

meDcem/cameroon Medcem has invested more tha EUR 24.39 million in the setting up of a plant with an annual production capacity of 0.6 million tons in Douala. The plant initianted production in June

Cement and concrete to be used for road construction in Nigeria

Sour

ce: a

daks

anig

eria

.com


ment at prices two times lower than the market prices. The plant has two produc-tion lines with a cement capacity of 1.2 million tons and clinker production of 1 million tons each. Razdan Cement has high debt and is unable to recover due to ongoing economic crises in the country. The company has incurred debt of around AMD 509.

RUSSIA’S SOYUZCEMENT AND GERMAN VDZ DISCUSS COOPERATION Russia’s Soyuzcement and Verein Deutscher Zementwerke, the Ger-man Cement Works Association, met to discuss areas of cooperation. Dur-ing the meeting, the German organi-zation shared its experience regarding the mandatory certification of cement, energy efficiency, the use of alternative fuels and raw materials. Furthermore,

the development of education programs for professionals in the cement industry was discussed. The parties will cooper-ate in the field of training, measuring the environmental performance of ce-ment plants, exchange of experience in the creation of certification centers and inter-laboratory testing of products.

RAFAH LAND PORT RECEIVES CEMENT FOR THE GAZA STRIP Rafah land port at Gaza received 575,000 tons of cement and 90 cubic meters of gravel from the Palestinian side of the Gaza Strip, reports Elfagr. This shipment of ce-ment and construction material will help fulfil the needs of reconstruction projects. Earlier, the port was used to receive ship-ments of cement and gravel from Egypt, so that the reconstruction projects of Gaza can be completed.

MIDDLE EAST


Darvar/iran Darvar is investing USD 350 million in a cement pant with a 3,300 tons per day cement capacity. the plant will be located in Damghan and will benefit from the proximity of a limestone and marl deposit

south valley cement/ eGyPt

The company is installing a new production line at its cement plant through an agreement with a Chinese company. The investment will double the cement plant's capacity to 3 million tons of cement per year.

LAFARGEHOLCIM ZAMBIA REPORTS INCREASE IN PROFITS IN Q1 2015 LafargeHolcim in Zambia recorded a 4 percent increase in profit in the first half of 2015. The company sold 263 million tons of cement and 288 million tons of ag-gregates in 2014 with an installed cement production capacity of 386.6 million tons per annum. The strategic rationale of the merger is believed to be positive as the merged group will have an even more geo-graphically balanced presence than former Holcim and Lafarge on a stand-alone basis. This business profile should provide a bet-ter resilience to cyclical swings in demand for cement, aggregates and ready-mix con-crete in individual countries.

NEW LICENCES FOR CEMENT FACTORIES IN UPPER EGYPT New licenses for cement factories in Upper Egypt will be introduced in September of this year. The cement industry in Egypt has a strong influence on other industries, like oil and coal, which help in increasing the production of cement in the local market. The ministry of industry and trade pointed out that after special micro studies, the new licenses will be introduced in the ce-ment industry by the end of September. It will help to fulfil the needs of the local ce-ment market until 2020.

SWEDISH CEMENTA TO TAKE STEPS TO REDUCE NOISE AT THE PLANT IN SLITE Swedish cement company Cementa and Goatland County Administrative Board are divided on how much noise the new cement plant will make. The matter has reached Land and Environment Court. Cementa will be able to control the noise by May 2016. The provincial government has fined half a million crowns in fines. Cementa has appealed to the Land and En-vironment Court to allow them to take the noise measurements. However, the provin-cial government doubts the expertise to make noise measurements on their own.

RAZDAN CEMENT IN ARMENIA ON VERGE OF BANKRUPTCY Razdan Cement in Armenia is struggling to survive as the construction sector con-tinues to face crises. The cement sold ce-

Swedish Cementa to take steps to reduce noise at the plant in Slite

Sour

ce: c

arle

ekm

an.s

e


PAKISTAN: CEMENT EXPORTS TO INDIA DROP Pakistan’s cement exports to India in July 2015 fell by 32 percent to 43,000 tons, while exports to Afghanistan dropped to 178,000 tons compared to 184,000 tons of corresponding period of 2014. The ex-port sector continues to disappoint the industry. Exports from North zone were 274,000 tons, ile exports from South zone were 192,000 tons. Major decline was ob-served in exports to India mainly because of non-tariff barriers erected by the Indian authorities and influx of Iranian cement in Afghanistan. The government policy on exports needs revamping to boost exports. Smuggling of cement through porous Pakistan-Iran border poses a continuous threat for the cement industry.

ULTRATECH CEMENT PLANS TO INCREASE ITS PRODUCTION CAPACITY BY FY2016 UltraTech Cement will increase its produc-tion capacity to 70 million tons by the end of this fiscal year April-March 2016, reports Live Mint. UltraTech has acquired two ce-ment units of JP group with production ca-pacity of 65 million tons of cement on com-pletion of the project. It also plans to acquire a third unit of JP Cement in Bhillai with a capacity of 2.2 million tons. UltraTech and JP group have approached SAIL to approve its 26 percent stake in the plant.

PAKISTANI CEMENT FIRM SUES SOUTH AFRICAN CEMENT FIRMS Lucky Cement, a Pakistani cement compa-ny, has sued South Africa’s four of the larg-

est cement companies with anti-dumping charges. The International Trade Adminis-tration Commission, which sets tariffs on imported products, is facing legal action by Pakistani cement firm. Lucky Cement, in Pakistan has sued four South African ce-ment firms, AfriSam, Lafarge, Natal Port-land Cement-Cimpor and Portland Pozzo-leno Cement with anti-dumping charges. Lucky Cement had suspected a cement cartel between these four companies. The Competition Commission imposed a fine of ZAR 124 million on AfriSam and ZAR 149 million on Lafarge in 2011 and 2012 respectively after finding the existence of a cement cartel.

PAKISTAN: LUCKY CEMENT SIGN CONTRACT WITH SAP ENTERPRISE SYSTEM Pakistan’s cement maker Lucky Cement signed a contract with Siemens Pakistan to implement SAP Enterprise System. Lucky Cement will be the first cement company

REGIONAL REPORT:

Sour

ce: w

ww

.ibtim

es.c

o.in


in Pakistan to start implementation of SAP on HANA database. “We have always fo-cused on innovation and excellence as the building pillars of our continuous growth,” said Executive Director, Noman Hasan. “Through SAP, we aim to drive progress through greater integration of our various locations, agility and enhanced efficiency of our operations and further efficiencies in our processes,” he added. The move seeks to pave the way forto technological advancements in the organization’s busi-ness framework and operations.

INDIA: LEGAL MINEFIELD OVER LEASE TRANSFERS IN WAKE OF INCREASED M&A ACTIVITY The government has sought legal opinion on the interpretation of a clause in the new Mining Act that has put spoke in corporate M&A’s in the mining and resources sectors as it bars the transfer of mines that were not allotted via auctions. The legal mine-field is likely to have impact on big transac-tions like Lafarge-Birla Corp or Ultratech –Jaypee. The mines ministry has asked the law ministry, whether mines allotted prior to the new laws enactment could be trans-ferred to other players and their opinion is expected soon. The industry has taken a pause following this new law, which is in-deed very ambiguous in its current form,” says Qais Jamal, Practice Head of Min-ing and Infrastructure at law firm AZB & Partners. “Not only acquisitions but also mergers of subsidiaries within groups are affected due to this. Many banks have also disbursed loans by keeping mining leases as collateral. With this new Act they too are also seeking clarifications from the

government.” Some experts feel that com-panies that are keen to transfer the mining leases can request the state government to conduct the auction and the acquirer should have the right of refusal to match the highest bid.

DEMAND FOR CEMENT IN SOUTH INDIA FALLING Cement demand of Andhra Pradesh, In-dia has fallen to 15 million tons annually, while the manufacturing capacity has gone to 90 million tons per annum from 25 mil-lion tons. Construction activity slowed in Andhra Pradesh, as well as the rest of south India, leading to a huge mismatch between demand and supply. The region is going through its worst cyclical dip in 35 years. South India has 170 million tons of the country’s total installed capacity of 350 million tons, but less than 60 per

cent of the capacity is being utilized at the moment. The increase in input costs and railway freight, along with the drop in de-mand, has compounded the problem for cement companies in the region. Amid the slowdown, reducing the cost of production has been the only option for the compa-nies to keep pressure off margins. Ramco Cements, for instance, has drastically re-duced its power cost by setting up captive plants in all its five units, and selling the excess to the grid. India Cements is focus-ing on integrating its non-core businesses such as coal, power and shipping for better synergy. India Cements is also planning to partially or even fully exit some of its non-core businesses. Despite slowing demand, cement prices increased by Rs 600 to Rs 3,930 a ton in the quarter ended June 30 following announcement of some big pro-jects by Andhra Pradesh and Tamil Nadu.

SOUTH EAST ASIA


Zuri cement/inDia Zuari Cement is adding another million ton of cement to its current 6 million tons per year capacity in India. The additional capacity will be added by the end of 2015

Xuan thanh GrouP/vietnam

The company has signed with FLSmidth for the supply of a new production line for the Xuan Thanh Ha Nam cement plant able to produce 12,500 tons of clinker per day. The investment in th expansion is estimated at VND 10.8 billion

sanGhi inDustries/ inDia

The company has intalled a new cement grinding mill at Kutch, bringing the plant's capacity to 1.2 million tons per year. Sanghi Industries also plans to install a 15 MW Heat Recovert System at the plant

jsw cement/inDia JSW Cement is set to invest Rs 2,200 crore to bring its capacity in India to 20 mil-lion tons of cement per year over the next three years. The targeted Indian areas are East and West India, West Bengal, Odisha and Maharashtra.

Dalmia cement/inDia Dalmia Cement Bharat commenced operations at its greenfield plant in Belgaum district. The plant has a 2.5 million tons cement capacity and required an invest-ment of over Rs 1,300 crore.


INDONESIA: CEMENT MAKERS HIT BY MASSIVE OVERCAPACITY Cement companies in Indonesia includ-ing Indocement Tunggal Prakasa and Se-men Indonesia are affected by massive overcapacity. Furthermore, the situation is expected to remain the same in the fol-lowing period. Cement companies have invested in capacity expansions in anticipa-tion of higher demand from infrastructure projects and a property boom. Thailand’s Siam Cement has opened its own cement plant in Indonesia, as well as acquiring a local ready-mix concrete maker, to access the market. China’s Anhui Conch Cement has built a cement plant in Kalimantan and is setting up another in Papua. Meanwhile, domestic sales growth outlook this year could be the worst in a decade. Cement production capacity in Indonesia is expect-ed to rise to 75.5 million tons per year by 2016, up by about 67 percent as compared to 2011. Indonesia is expected to rise to 75.5 million tonnes a year by 2016, up about 67 percent from 2011. Yet demand is far from catching up, with infrastructure spending on roads, bridges and ports delayed by bu-reaucratic red tape and the economy grow-ing at its slowest pace in six years.

CHINESE CEMENT COMPANIES LOSING MONEY Several cement companies in China are los-ing money while producing cement. How-ever, stopping production is not an option. It will be difficult for Lucheng Zhuoyue Ce-ment Plant in Changzhi, China to recover from its ever-mounting debts because cus-tomers and investments are drying up and the company is borrowing even more mon-ey to stay afloat. China is dealing with over production and no demand for cement in

market. “Global investors have now come to realize that China’s travails are begin-ning to affect everyone,” said Frederic Neu-mann, co-head of Asian economic research at HSBC in Hong Kong. Gross domestic product expanded 7 percent in the second quarter of 2015, the slowest pace for china in a quarter century. Many cement plant owners in China refuseing to liquidate their plants, waiting for the economy to revive and they can produce cement once again.

INDONESIAN CEMENT MARKET OVERSUPPLY WILL HAVE DIRECT IMPACT OF EUROPEAN CEMENT MARKET The supply-demand imbalance in the In-donesian cement market will weigh on Eu-ropean cement companies, which are likely to face aggressive pricing and lower profit

margins via Indonesian subsidiaries. The Indonesian government imposed a price cut on cement sold by state-owned compa-nies in January, which resulted in a 6 per-cent fall in the average selling price. Further price cuts could happen if planned infra-structure projects continue to underper-form against government expectations. As a result, international cement companies’ profit margins are likely to be squeezed fur-ther in a weak pricing environment.

HOLCIM INDONESIA, DKJ JAKARTA SIGN A DEAL TO IMPROVE ROAD QUALITY Holcim Indonesia and DKJ Jakarta have signed a deal to repair roads in the capi-tal city of Indonesia using the SpeedCrete material. The contract is valued at USD 5.5 million. The Jakarta provincial government plans to repair 200 kilometers of the city’s Transjakarta bus lanes using on high-tech and fast-drying concrete around provin-cial greater areas. The road repair would be completed in next five years. In the first half

REGIONAL REPORT:

Sour

ce: w

ww

.cnn

indo

nesi

a.co

m/

Holcim Indonesia factory


of 2015, Holcim as a group reported that its sales fell 3.1 percent to CHF8.65 billion, as better performance in North America could not compensate for lower sales in other regions. Net income increased by 4.9 percent to CHF690 million, mainly as a re-sult of the divestment of Holcim’s minority shareholding in Siam City Cement.

TOKYO CEMENT ADDS FIFTH VESSEL TO TRANSPORTATION FLEET Tokyo Cement announced the addition of fifth vessel, ‘MV Mohar’ to its fleet of ce-ment transport ships. Arjuna Ranatunga, Minister of Ports, Shipping and Aviation and Upul Jayasuriya, Chairman, Board of Investments, Sri Lanka inaugurated the 22,000 metric tons, pneumatic bulk cement carrier. The new vessel will help the compa-ny in shipping its cement to the Colombo port, in order to distribute more efficient-ly to the masses. “The cement industry is often times described as a barometer of a country’s march to economic development and prosperity. What we are currently see-ing is a surge in demand for products and services which is a good indicator of mar-ket confidence. Over the last three decades, Tokyo Cement has built itself up to become one of Sri Lanka’s most valuable brands with an installed capacity of over two mil-lion tonnes of cement, over 600 employees and 20 billion rupees in assets. Our success

reflects the continuing growth of Sri Lanka and its economy,” said the managing direc-tor of Tokyo Cement, S. R Gnanam.

VIETNAM CEMENT PRICES REMAIN STABLE While Vietnam’s exports fell both in vol-ume and value in the months to July 2015, domestic consumption increased due to increased activity in the real estate mar-ket. Furthermore, infrastructure projects and rural development projects are be-ing implemented, helping boost demand for cement. In July 2015, Vietnam cement

sales were estimated at 6.5 million tons, up 25 percent from the same period last year. Local consumption stood at 5.15 million tons, 22 percent more than in the year ago period. Cement exports totaled 1.35 mil-lion tons. Despite the increase in raw mate-rial prices, as well as fuel inputs for cement production, prices of the building material have remained stable over time. Produc-tion of clinker and cement exports declined more than the previous year as some export markets are facing difficulties, especially Bangladesh.

Sour

ce: m

irror

citiz

en.d

aily

mirr

or.lk

ASIA PACIFIC


eaGle cement/ PhiliPPines

The Filipino Eagle Cement plans to invest USD 1.2 billion in new cement manu-facturing facilities in Cebu and Davao in 2015. The two new facilities would have a combined capacity of 4 million tons of cement per year. Apart from these new plants, Eagle Cement is adding a new production line at its existing cement plant in Bulacan

Pt sinar arthalestari/inDonesia

The company has decided to set up a second production line at its Ajibarang plant in Central Java. The expansion will bring the plant's capaity to 2 million tons of cement per year, and will require an investment of Rp 2.3 trillion

Pt semen/ inDonesia By the end of 2016, Pt Semen will open a cement factory in Rembang, Central Java. The investment required is of Rp 4.5 trillion, and the capacity of the plant will be of 3 million tons of cement per year

Pt eternit Gresik/inDonesia

The company has earmarked Rp 1.1 trillion for the setting up of a second cement plant in Karawang. The company is preparing for the growing domestic demand following the Indonesian government's plan to build one million affordable hous-ing units

ceemX/PhiliPPines Cemex is undertaking the construction of a 1.5 million tons per year integrated production line at its existing plant in Luzon. The additional capacity will double the company's existing one

ASIA PACIFIC

MV Mohar, Tokyo Cement’s fifth vessel


VOTORANTIM CIMENTOS PLANS EXPANSION IN TURKEY Brazilian cement manufacturer Votoran-tim Cimentos plans to expand in Turkey. Walter Dissinger, the CEO of Votorantim Cimentos in Turkey, said that the company eyes the Middle East in terms of infrastruc-ture and trade development. The company plans to invest EUR 140 million as a first phase of a long-term development plan in Turkey. The company plans to establish a new cement plant in the country. Accord-ing to the company’s CEO, Votorantim Cimentos sees investments in Turkey as a center opened to the Middle East. Tüzün is one of the areas where Votorantim Ci-mentos is considering to have potential for growth for the Mediterranean region.

PARAGUAY: CEMENT IMPORTERS HIT BY CURRENCY DEPRECIATION Cement importers in Paraguay have taken hits from the rising dollar in recent days. Furthermore, the current situation has also affected concrete workers, who can no longer import high-strength cement. According to Castorino Rojas, director of FCK Concrete, the appreciation of the dol-lar is accompanied by an increase in freight rates. Importers in Paraguay currently get high-strength cement from Argentina, Uruguay and Brazil.

CHACO, ARGENTINA RECORDS INCREASE IN CEMENT CONSUMPTION Due to the large number of public and housing works, consumption of cement

in Chaco in Argentina has increased. The government will make an articulate plan to control the supply of cement. Cement con-sumption recorded a progressive growth during the first half of 2015: in January, ce-ment consumption was 19,362 tons, in Feb-ruary 20,291 tons, in March 22,870 tons, in April 23,286 tons, in May 22,838 tons, in June was 24,104 tons and in July reached 25,497 tons. Consumption of cement has increased by 12 percent in July 2015 as compared to July 2014. The government will make a plan to ensure additional regu-lar supply of cement in the month of Sep-tember through district distributors.

CEMENT INNOVATION CENTER TO BE ESTABLISHED IN MEDELLÍN, COLOMBIA An innovation center will be inaugurated at the University Eafit, Medellín in Colombia that is expected to become the main input of innovation processes that take place within the cement industry. The COP 30,000 million investment is developed through cooperation with a United States-based partner, according to José Alberto Vélez, the president of Colombian cement manufacturer Argos. The center will develop cement materials containing fly ash with an aim to develop a green concrete capable of revolutionizing the cement industry.

FOUR CEMENT MAKERS IN ARGENTINA UNABLE TO DELIVER CEMENT Construction companies in Argentina have been dealing with severe cement shortages as cement plants are not delivering cement in a timely manner over the past weeks. Due to the lack of availability of the build-ing material in the market, cement prices increased between 5 and 10 percent in Au-gust. Four brands of cement, namely Loma Negra, Avellaneda, Holcim and Minetti, are having troubles with cement deliveries. According to traders, the backlog of orders began about a month ago. Cement manu-

REGIONAL REPORT:

Votorantim Cimentos cement plant in Cuiabá, Brazil


Sour

ce: w

ordp

ress

.com

facturers are arguing that they are facing infrastructure problems that are obstruct-ing them from delivering the building ma-terial. Furthermore, some claim to have encountered issues with equipment, citing problems such as broken mills. As supply of cement is limited, demand for cement is on the rise. Currently, cement is being sold for about $90 per ton, while two years ago, prices were around $60 per ton.

CIMPOR SHUTS DOWN PLANT IN BRAZIL Cimpor will close its factories in Brazil due to heavy losses and failing Brazilian economy. The company recorded a decline in its sales volume of 13.5 percent, whereas the cash flow decreased by 43.3 percent, during the first half of this year. Camargo Correa, the group that has been controlling Cimpor since 2012, is closely studying the sales of assets, and closure of plants in the Brazilian market. Cimpor is forced to close its operations in Brazil as adjustment measures and optimizing the production costs. The company’s units in Portugal are performing quite well, as sales rose by 1.4 percent in volume and 6.9 percent in value during the first half of this year.

VOTORANTIM SHUTS CEMENT PLANT IN SÃO PAULO, BRAZIL Brazilian cement manufacturer Votorantim announced the suspension of production operations at its cement plant in the munic-ipality of Ribeirao Grande, São Paulo, Bra-zil. The three kilns at the plant have been shut. According to the company, the cur-rent macroeconomic context in Brazil is to blame for the shut of operations. The plant

will from now on operate as a distribu-tion center. The company expects to see no change in trade relations as demand in the region will be supplemented by other ce-ment plants. However, Votorantim claims the suspension of operations is temporary as soon as the market conditions allow it. Votorantim has 34 other plants, cement plants in Brazil, besides being present in 13 other countries.

CONSTRUCTION COMPANIES IN ARGENTINA ASK TRANSPARENCY IN CEMENT PRODUCTION The leader of the Center for Construction Companies in Chaco, Argentina, Mateo

Alemán, asked the national government to review the conduct of Holcim and Loma Negra. Due to the lack of cement in the market, there has been room for huge price speculations, as some traders have boosted prices of cement by as much as 100 percent. The government should, in the view of Mateo Alemán, see that there are no infringements in cement production that could interfere with the law of supply. According to Mateo Alemán, it is unclear whether cement the cement producers have indeed reached the limit of produc-tion capacity. The cement supply issues are generating higher costs for construction companies in the province.

AMERICAS


Pacasmayo / Peru Pacasmayo invested more than PEN 380 million in a news cement plant in Piura. Construction began in October 2013, and the plant will come on-line in 2015 with a 1.6 million tons cement production capacity per year

meGatech / veenZuela In partnership with the Venezuelan state, India's Megatech is setting up a mini-cement plant to start production in 2016 in Yaracuy. The plant will produce about 4.5 million bags of cement per year. Reportedly, the partnership will extend to setting up another five mini plants in Portuguesa, Cojedes, Aragua, Merida and Yaracuy

PolimiX / BraZil Polimix plans to invest R$220 million in a cement plant in the Pecem Industrial Complex (northeastern Brazil). The project is still pending approval, hence con-struction is expected to begin in the following 10 to 12 months. The projected capacity is of 0.9 million tons per year

meDcem / colomBia The Turkish Medcem plans to set up a 3 million tons per year cement plant in northern Colombia. The investment required amounts to USD 50 million. Med-cem is currenly awaiting environmental permits from the Colombian government

elementia / meXico Following the IPO Elementia is planning in Mexico, the company plans to invest USD 20 million to expand its capacity at the Tula Plant to 3.5 million tons per year. The plant currently has a capacity of 2 million tons of cement per year

cementos yura/ ecuaDor

Cementos Yura plans to invest USD 230 million in a new clinker production plant in Ecuador. Ecuador currently imports a lage part of the clinker needed for cement manaufacturing

Votorantim cement plant


SECT

OR

CO

VER

AGE

: CO

NST

RU

CTIO

N &

BU

ILD

ING

MAT

ERIA

LS B

Y B

MW

EEK

.CO

M

GENERAL SHALE BAGS AWARD In the US, General Shale has been named a Best in Class winner in the nationally ac-claimed Brick in Architecture Awards for 2015 by the Brick Industry Association (BIA). General Shale is the North Ameri-can subsidiary of Wienerberger AG and a leading manufacturer of brick, one of the world’s oldest green building materi-als. According to the report, BIA’s premier awards honors outstanding, innovative and sustainable architecture that incorpo-

rates clay brick products as the predomi-nant exterior building or paving material. Forty-six winning projects from 21 states, including nine Best in Class recipients, were selected from more than 115 entries. Independent industry professionals from around the country reviewed and scored each of the entries.

SERBIA TO USE FLY ASH FOR BRICKSIn Serbia, the regulation on the use of fly ash in road construction and infrastruc-

ture development will enter into force on July 3. The use will be first tested on a 200m section of Corridor 11 near the town of Obrenovac. The construction of a single kilometer of Corridor 11 highway costs EUR 7 million on average, and using fly will bring about savings of EUR 1.4 to 1.8 million per kilometer. According to the report, Serbia’s landfills currently contain about 200 million tons of fly ash, whose market value is around EUR 1 billion, and its use in road construction can bring

Serbian highway under construction


about savings of 30 to 80 percent compared to using standard construction materials.

CEMEX TO APPEAL OHIO DECISION ON MINING In the US, Cemex is to appeal a decision by the planning board of the City of Fair-born to reject rezoning land from agricul-tural use to mining, PR News reported.“If we cannot access the limestone that is on our property, this plant has a very limited future. But if we can harvest that rock, this plant will be a vibrant part of this commu-nity for the next 40 years …,” said local Ce-mex plant manager John Miller.

COAL ASH BEING LOOKED AT FOR NC WATER ISSUE In Charlotte, the source of the city’s drink-ing water is being tested for coal ash. A water-quality team took water samples to test for coal ash in Mountain Island Lake. The team spent nine hours taking doz-ens of samples, including several near the Riverbend Station, in Mount Holly, where tons of coal ash remain. “We’ve ramped up efforts with the excavation of the coal ash basin,” said Rusty Rozzelle, with Mecklen-burg County Water Quality.

AUSTRALIA: HANSON INSTALLS NEW SOFTWARE TECHNOLOGY In Australia, Hanson is utilizing Spectra QEST’s technologies in both its concrete and quarry testing facilities. The imple-mentation of Spectra QEST’s one inte-grated Laboratory Information Manage-ment System, QESTLab, has replaced the two separate systems that Hanson had previously been using in its daily opera-tions. According to the report, QESTLab has been specifically designed for use in the construction materials testing and geotechnical testing industries. The system takes care of all of Hanson’s concrete, ag-gregate, soil and asphalt testing software requirements. It is used to manage the laboratory operations as well as database and analyze test results and concrete pro-duction data.

ETEX BUYS LAFARGE’S SOUTH AFRICA GYPSUM BUSINESS Etex has bought Lafarge’s South African gypsum business. Etex aims to strengthen

its position in Africa, with the Southern African region and Nigeria as its main drivers of growth. The demand for housing has been on the rise in the country, driven by growing population and an emerging middle class. In addition, the market is becoming increasingly regulated. Con-sequently, alternative building methods, such as dry construction, are gradually replacing traditional construction. Grow-ing demand for alternative construction methods marks a major opportunity for both local Etex company Marley Building Systems and Lafarge Gypsum South Af-rica. “Combining these two product offer-ings enables us to provide the full scope of Etex’s portfolio”, explains Paul Van Oyen, CEO of Etex.

LIMESTONE SHIPMENTS IN GREAT LAKES POST INCREASE In the US Great Lakes area, shipments of limestone totaled 4,042,766 tons in June, an increase of 6 percent compared to May, and 9-plus percent compared to a year ago. This is according to figures reported by the Lake Carriers’ Association (LCA). The June stone float is also the high-est monthly total since July of 2014. U.S. quarries shipped 3.3 million tons in June, an increase of 6.8 percent compared to a

year ago. Shipments from Canadian quar-ries totaled 765,000 tons, an increase of 21 percent. According to the report, year-to-date the Lakes limestone trade stands at 9.9 million tons, an increase of 24.4 percent compared to a year ago. Market conditions alone do not explain the increase.

BITUMEN SHORTAGE HALTS SEVERAL ROAD PROJECTS IN SOUTH AFRICA The Johannesburg Roads Agency (JRA) has announced delays to several of its road-works programs across Johannesburg ow-ing to a shortage of bitumen countrywide. The agency said on Friday that the resurfac-ing of roads and the patching of potholes in the city would be temporarily halted as a result of a shortage of the oil-based, semi liquid substance, which was used in the production of the asphalt mix for road surface construction. This was the direct result of the shutdown of local refineries for maintenance, JRA acting MD Mpho Kau said in a statement. “Petrochemicals groups Total and Engen are the only refineries that have confirmed that operations will resume in early August. The JRA asphalt plant has, therefore, stopped production and opera-tions are expected to resume from August 10. We apologise for the inconvenience caused,” he noted.

SECTOR

COVER

AGE : CO

NSTR

UCTIO

N &

BU

ILDIN

G M

ATERIA

LS BY B

MW

EEK.CO

MLafarge South Africa quarry, Tongaat, Durban


PIKALEVSKY CEMENT LAUNCHED A NEW HYDRAULIC EXCAVATOR Pikalevsky Cement has installed new hy-draulic crawler excavator in its limestone quarry in Russia. The new excavator blends high performance and comfortable environment for the operators. The new machine is durable and comfortable cabin meets all safety standards and is equipped with new multi-functional control system. The new hydraulic excavator can keep op-erated using a joystick. The new model excavator has reduced 5 percent fuel con-sumption compared to previous models of excavator.

LAFARGEHOLCIM WILL USE MINE CONTROL SYSTEM IN CANTAGALOSodep has implemented the Minetrack solution in Cantagalo (RJ) for Lafarge-Holcim. The expected improvements by real-time management of the mine opera-tion and reliable production data will lead to higher productivity through resources optimization and reduction in operational costs, such as speed control, tracking ore, monitoring the queues at loading or crush-er, ore quality control, productive hours framework. Marcos Andrade, Sodep´s Manager, said: “It’s an innovation in lime-stone quarry, which can balance the game among the cement plant and mine opera-tion, using similar production information level, through assertive actions based on indicators of performance watched in real time online (TV’s) or production reports sent straight to their managers”. Yhiago Ferro, LafargeHolcim´s mining manager, believes that “the gains opportunities will happen naturally with improved opera-tional standard, security enhancement and optimized use of resources, after all, is cultural change for those who are in-

volved.” Minetrack is accessible to all min-ing companies in the “turnkey” concept and has a friendly interface technology which facilitates its use such as using a smartphone.

FLSMIDTH POSTS LOSS IN Q2 FLSmidth incurred losses during the sec-ond quarter of 2015 and will be lowering its investments budget. The company is likely to continue to record losses due to major problems with customers who post-pone payments for projects nearing or have no means to give the complete pay-ment. FLSmidth is forced to lower its in-vestment budget as it is short of cash. The company has changed its strategies to cope with heavy losses and keep a close eye on market developments.

FLSMIDTH SIGNS CONTRACT WITH RUSSIAN CEMENT PRODUCER In another move, FLSmidth signed a con-tract with the Russian cement and miner-als producer Pikalevo Soda for the supply of equipment for a dry sintering alumina line with a capacity of 3,700 tons per day. The contract was signed in the presence of Prime Minister of Russia Mr. Medve-dev and FLSmidth’s Group CEO Thomas Schulz. The two parties have reached an agreement on further cooperation in April 2011, the agreement resulting in the re-cently announced supply contract.

EUROCEMENT SIGNS DEAL WITH KAMAZ Eurocement, the largest cement maker in Russia, plans to purchase about 700 trac-tors and trucks from the leading domestic manufacturers of trucks Kamaz. The cost of the equipment is estimated at 2.8 billion rubles. Eurocement and the general direc-

tor of Kamaz signed a memorandum for the deal last week. The tractors and trucks use natural gas as fuel.

PFEIFFER TO SUPPLY COAL MILLS AT AMREYAH CEMENT, EGYPT Christian Pfeiffer Maschinenfabrik signed a contract for the delivery and construc-tion of two complete coal mills for Am-reyah Cement, part of InterCement, in Alexandria, Egypt. The contract will be implemented as a turnkey project, which means that Christian Pfeiffer Beckum is responsible for the engineering, deliver-ing all equipment and organizing the con-struction work in Egypt. Amreyah Cement currently powers its three clinker lines with oil, and wants to switch to coal and petcoke, which are easier and less costly to source. The scope of delivery includes 2 identical horizontal ball mills with a di-ameter of 3.4 m and an effective grinding length of 6.75 m, and an integrated drying chamber 3 m in length, each equipped with a high-efficiency DSL-K 65-type separator. Construction is scheduled to start in sum-mer 2015, and the plant is to be completed and accepted just one year later.

FLSMIDTH TO SUPPLY NEW CEMENT PLANT IN PAKISTAN FLSmidth will supply a new cement plant in Pakistan as it signed a EUR 57 million contract with D.G. Khan Cement Compa-ny. D.G. Khan Cement is part of the Nishat Group, one of the largest conglomerates in the country. FLSmidth will supply en-gineering and equipment for a 8,500 tons per day green field cement plant in Paki-stan. The plant will be located in Hub in the province of Baluchistan approximately 30 km northwest of Karachi, Pakistan. “Pa-kistan is a very important market for FLS-

EQUIPMENT


midth and we are extremely pleased that D.G. Khan Cement Company Ltd. again has chosen FLSmidth as their supplier. This underlines our valuable long-term ties with D.G. Khan Cement Company Ltd. as well as our strong foothold in Paki-stan where we expect to see more activity following new government development programs,” said President of the Cement Division Per Mejnert Kristensen.

MAGNEZIT SATKA COMMISSIONES MULTIPLE HEARTH POLYSIUS KLIN The new product has many advantages over traditional firing technology of raw materials in a rotary klin. It can save con-siderable money and manage the process to obtain the product with predetermined properties. The hearth is designed to bear up to 1050b degree Celsius of heat with-out consuming much electricity. This is expected to boost the cement production of Magnezit Satka.

LAFARGE PLACES ORDER WITH AVANTHA GROUP COMPANY CG Lafarge placed an order with Avantha Group company CG for the supply of elec-

trical motors. “CG has signed a global sup-ply agreement with cement major Lafarge for electrical motors,” the company said in a statement. “CG’s ability to provide flex-ible designs, high quality and cost effec-tive solutions were key factors that Lafarge considered while making this decision,” Lafarge Cement Senior Vice President-International Sourcing Michel Edmont said. Commenting on the deal, CG’s Chief Executive and Managing Director Laurent Demortier said, “Our strategic invest-ments, such as the global design centre in Bhopal, exhibits our commitment towards developing energy-efficient and techno-logically advanced products for the ever-evolving market needs of the industrial sector”.

KHD TO SUPPLY SLAG GRINDING MILLS TO JSW CEMENT Humboldt Wedag India and Humbold Wedag, two subsidiaries of KHD Hum-boldt Wedag, have won contracts valued between EUR 55-65 million for the sup-ply and maintenance of eight slag grind-ing mills. JSW Cement, an Indian cement manufacturer, placed the order for the

KHD equipment. Each of the eight mills has two significant components, namely two KHD roller presses with a total ca-pacity of 180 tons per hour. The projects will be booked as order intake as soon as the pre-conditions for project executions are fulfilled. KHD is represented in mul-tiple growing markets, like India, Russia and the Asia-Pacific region. The German equipment manufacturer has been provid-ing high quality equipment and services to cement producers for more than 150 year. KHD is a leader in environmentally friendly and energy-efficient product for grinding and pyro processing section of cement plants.

ROMERO GROUP ORDERS CEMENT CARRIER Italian shipowners Giovanni and Vicenzo Romeo have ordered a 6,700 dwt cement carrier to be delivered in 2017. The deal has been signed with Ningbo Xinle ship-yard, and the carrier has a value estimated at USD 15 million. Romeo’s Nova Marine fleet has 40 bulk carriers, including 5 ce-ment carriers and 3 unloaders.

Eurocement plant, Russia


FLASHBACK

CW Group Meeting Agenda

The CW Group will be hosting and participating in a number of webinars and conferences. We invite you to join us on-line or in person at the events to discuss our views of the industry. To learn more, please visit http://research.cwgrp.com/meetings

NEWS FLOW IN CEMWEEK.COM LAST TWO MONTHS(darker red shows higher news volume)

Slag & AshTrade Americas Sept 30 – Oct 1, 2015

Rio de Janerio, Brazil

CBI Brazil & LatAm 2016 February 24 – 25, 2016

Sao Paolo, Brazil

CW Summit Middle East 2016

April 4 – 5, 2016

Dubai, UAE

Solid Fuel Summit Middle East 2016

April 5 – 6, 2016

Dubai, UAE

CONFERENCES WHERE THE CW GROUP WILL BE PRESENTING

Price Assessment –

Cement and Clinker price

markers

Global Cement Volume Forecast Report: 2H2015 update and outlook

September 28, 2015 at 2:00 PM GMT

Global Slag Market – a glance at next year’s trends

October 15, 2015 at 2:00 PM GMT

CW RESEARCH WEBINARS:

CW Research WEBINAR

Wednesday, September 16, 2015 2:00 PM GMT

Price Assessment – Cement and Clinker Price Markers


http://research.cwgrp.com/meetings

BUZZ

TOP CEMWEEK STORIESNigeria:Lafarge-Holcim merger to produce 14mtpa of cementFLSmidth signs agreement with Mamba CementHeidelberg Cement buys stake in ItalcementiBUA Group to start production at new Nigerian plantCRH combines construction brands Tarmac and Blue CircleKurdistan Cement inaugurates new unitVietnam’s Lam Thach cement plant halts productionHeidelbergCement considers buying stake of KyzylkumcementAcquisition of Lafarge North America’s Davenport cement plant concludedDangote to set up plant in Lusaka, ZambiaCRH appoints non-executive DirectorZambia sees cement price reductionsDangote Cement declares its half-yearly profitVietnam: Cement prices stabilize after increased consumptionLafarge China launches tender offerAggregate Industries – UK’s newest cement producerLafarge-Holcim merger – all eyes on MalaysiaDangote Cement has been circling ItalcementiCement plant in Amur, Russia set to start production this monthPalestine to get its first cement plantIndocement to close three cement plantsEurocement begins operations at new Russian plantPakistan: Waste heat recovery plant openedChinese company to set up new cement plant in RussiaCement consumption drops in Saudi ArabiaUAE – Fuel price liberalization impacts cement industryIndia’s Ultratech Cements boosted cement salesIndia’s Dalmia Cement launches production at new unitSupply of cement stabilizes in in EgyptNuclear deal with Iran could see cement demand rise

123456789

101112131415161718192021222324252627282930

123456789

10111213141516171819202122232425

coal complex concrete

consumption contract dangote decline

declined deuna development director distribution domestic economic

economy energy environment environmental equipment estimated eurocement expand

expansion export exports facility finance financial

growth highest housing increased india industries infrastructure international investment italcementi lafarge material materials metallurgical mexico mining national needs nigeria operations pakistan performance plans plants portland positive pradesh produce producers

products profitability project ready recorded records region reliance

rise road russia signed sold steady subsidiary temple terminal

unicem union using uzbekistan valued zement

Acquisition Activity Addition Africa

Aggregates Agreement Australia Board Boral Brick Bricks Capital China Coal

Commercial Concrete Continue Contract Costs Countries County Data Deal Decline Department

Design Development Director Energy Engineering Environmental European Facility Firm Firms France

French General Gobain Government Green Growth Gypsum Housing Important Includes India Infrastructure International Investment Knauf Lime Management Manufacturing Markets Mining Minister National Numbers Operations Performance Plants Port Power Previous Price Process Product Products Project Public Qatar Quality Quarry Ready

Region Research Residential Rise Road Roads Saint Sales Sand Says Sector Sika

Starts Steel Technology Transport Units Value Waste Water Work World Zealand

2014 2015

CEMWEEK.COM

BMWEEK.COM

Saudi construction sector continues riseMartin Marietta unit gets green light in ColoradoLimestone shipments in Great Lakes post increaseSerbia to use fly ash for bricksSaint Gobain posts strong H1 numbersHeadwaters banks on fly ash growthAltech Chemicals working on alumina projectHigher construction materials sales noted in ThailandEcuador: Lack of aggregates hurting constructionGreen construction materials hope for the futureAlgeria building materials imports declined through MayPoland awards fresh road contractsBitumen shortage halts several road projects in South AfricaSpain: Municipalities rationalize aggregates extractionCemex inaugurates new unitEU construction numbers up in MaySika posts stronger H1 numbersPolaris Materials has new aggregates facilityMartin Marietta runs into opposition for proposed plantCemex to appeal Ohio decision on miningSaint Go completes purchase of US gypsum firmSurging building materials costs hurting Kenya buildersSan Diego plans new stadiumBotswana wants solar panels for minesKuwait building activity picks up

TOP BMWEEK STORIES


http://www.cemweek.com/news/mergers-a-acquisitions/30020?task=view

http://www.cemweek.com/news/expansions/30085?task=view








http://www.cemweek.com/news/people/29931?task=view

http://www.cemweek.com/news/volume-a-pricing/29856?task=view

http://www.cemweek.com/news/financial/30066?task=view

http://www.cemweek.com/news/markets-a-competition/30084?task=view








http://www.cemweek.com/news/sustainable-development/29918?task=view




http://www.cemweek.com/news/financial/29834?task=view




http://www.cemweek.com/component/search/?searchword=coal&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=complex&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=concrete&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=consumption&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=contract&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=dangote&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=decline&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=declined&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=deuna&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=development&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=director&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=distribution&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=domestic&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=economic&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=economy&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=energy&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=environment&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=environmental&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=equipment&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=estimated&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=eurocement&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=expand&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=expansion&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=export&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=exports&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=facility&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=finance&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=financial&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=growth&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=highest&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=housing&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=increased&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=india&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=industries&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=infrastructure&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=international&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=investment&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=italcementi&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=lafarge&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=material&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=materials&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=metallurgical&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=mexico&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=mining&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=national&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=needs&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=nigeria&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=operations&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=pakistan&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=performance&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=plans&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=plants&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=portland&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=positive&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=pradesh&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=produce&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=producers&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=products&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=profitability&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=project&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=ready&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=recorded&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=records&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=region&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=reliance&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=rise&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=road&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=russia&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=signed&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=steady&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=subsidiary&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=temple&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=terminal&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=unicem&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=union&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=using&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=uzbekistan&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=valued&searchphrase=exact

http://www.cemweek.com/component/search/?searchword=zement&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=acquisition&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=activity&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=addition&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=africa&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=aggregates&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=agreement&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=australia&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=board&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=boral&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=brick&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=bricks&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=capital&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=china&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=coal&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=concrete&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=continue&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=contract&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=costs&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=countries&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=county&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=data&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=deal&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=decline&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=department&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=design&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=development&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=director&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=energy&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=engineering&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=environmental&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=european&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=facility&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=firm&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=firms&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=france&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=french&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=general&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=gobain&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=government&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=green&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=growth&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=gypsum&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=housing&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=important&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=includes&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=india&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=infrastructure&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=international&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=investment&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=knauf&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=lime&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=management&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=manufacturing&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=markets&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=mining&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=minister&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=national&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=numbers&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=operations&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=performance&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=plants&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=port&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=power&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=previous&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=price&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=process&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=product&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=products&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=project&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=public&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=qatar&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=quality&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=quarry&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=ready&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=research&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=residential&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=rise&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=road&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=saint&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=sales&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=sand&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=says&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=sector&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=sika&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=starts&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=steel&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=technology&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=transport&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=units&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=value&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=waste&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=water&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=work&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=world&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=zealand&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=2014&searchphrase=exact

http://www.bmweek.com/component/search/?searchword=2015&searchphrase=exact

http://cemweek.com

http://bmweek.com

http://www.bmweek.com/construction/18466?task=view

http://www.bmweek.com/infrastructure-a-projects/18522?task=view

http://www.bmweek.com/lime/18469?task=view

http://www.bmweek.com/aggregates/18467?task=view











http://www.bmweek.com/concrete/18464?task=view




http://www.bmweek.com/concrete/18486?task=view







Documents

Cwm28 magcloud