september 2017 - d1tp9je03a4iqr.cloudfront.net · world cement interview 66 sustaining the standard...
TRANSCRIPT
Pioneering technology.We offer the entire process chain from a single source: from the quarry to the cement loading facility, and from engineering, procurement, erection and commissioning to after-sales service. One example of our expertise is the new cement production plant in Guatemala. The plant is under construction now, and commissioning and start-up are scheduled for this year.www.thyssenkrupp-industrial-solutions.com
September 2017
hydropneumatic
spring system
modular mill design
redundancy concept
with 8-motor mill drives
Pioneers of the PAST – Masters of the FUTURE
FIRST
FIRST
FIRST
www.loesche.comEVOLVE THE FUTURE
thyssenkrupp Industrial Solutions offers the entire process chain from a single source:
from the quarry to the cement loading facility, and from engineering, procurement,
erection, and commissioning to aftersales service. One example of our expertise is
the new cement production plant in Guatemala. The plant is under construction now;
commissioning and start-up are scheduled for this year.
For more information, visit: www.thyssenkrupp-industrial-solutions.com
Palladian Publications Ltd
15 South Street, Farnham, Surrey
GU9 7QU, ENGLAND
Tel +44 (0)1252 718999
Fax +44 (0)1252 718992
Email: [email protected]
Website: www.worldcement.com
Volume 48: Number 09
September 2017
ISSN 02636050
THIS MONTH’S COVER
Pioneering technology.We offer the entire process chain from a single source: from the quarry to the cement loading facility, and from engineering, procurement, erection and commissioning to after-sales service. One example of our expertise is the new cement production plant in Guatemala. The plant is under construction now, and commissioning and start-up are scheduled for this year.www.thyssenkrupp-industrial-solutions.com
September 2017
CONTENTS03 Comment
05 News
88 Regional Report Infographic
REGIONAL REPORT: EUROPE
12 A Changing EnvironmentKoen Coppenholle, CEMBUREAU, Belgium.
18 Keeping Up TraditionsEdwin Trout, The Concrete Society, UK.
26 Teaching an Old Dog New TricksWorld Cement’s Editor, Jonathan Rowland, recently visited Hanson UK’s Ribblesdale cement plant to see its latest upgrades and plans for the future.
CEMENT ANALYSIS
31 Measuring UpNicholas Absalom, Dr Peter Storer, David Rapson, and Bogdan Iancu, FCT ACTech Pty Ltd, Australia.
35 Automating AnalysisAlon Vaisman and Harald van Weeren, Malvern Panalytical, UK.
41 Under the MicroscopeSang Y. Lee and Donald J. Broton, CTL Group, USA.
GEARS, DRIVES and BEARINGS
47 The Ability to AdaptHenrik Nilsson, Bosch Rexroth, Sweden.
50 Make Do and MendKuldeep Mistry, The Timken Co., USA.
ALTERNATIVE FUELS
57 The Temperature’s RisingTahir Abbas and Michalis Akritopoulos, Cinar Ltd, UK.
61 Starting with a Single StepLindner Recyclingtech GmbH, Germany.
63 Conforming to QualityAdrien Zambon, PhD, Aliapur, France.
WORLD CEMENT INTERVIEW
66 Sustaining the StandardWorld Cement talks to the team at Good Environmental Choice Australia (GECA) about its latest cement standard.
REFRACTORIES
69 Keeping the Old, Attracting the YoungPeter Bigwood, Brokk Inc., USA.
MILLING
73 Collaborating for Environmental Effi ciencyPablo Soria, W.L. Gore & Associates, Mexico.
77 Adding StabilityLaurent Guillot and Olivier Malbault, CHRYSO Group, France.
81 A First for the AmericasPaulo Marcondes, CIPLAN, Brazil, and Daniel Becker, KHD Humboldt Wedag Inc., USA.
HEKO Ketten GmbHEisenbahnstraße 2 | 58739 Wickede (Ruhr), Germany | Telephone +49(0)2377-9180-0 | Fax +49(0)2377-1028 | E-Mail: [email protected]
www.heko.com
HEKO componentsfor bucket elevators� Round link chains
� Central chains
� Plate link chains
� Rollers and Sprockets
� Bearings
� Buckets
HEKO offers the whole range of chains and other wear parts for bucket elevators
and chain conveyors. Proven in thousands of elevators and conveyors, worldwide.
Annual subscription (published monthly): £160 UK including postage/£175 (e245) overseas (postage airmail)/US$280 USA/Canada (postage airmail).Two year subscription (published monthly): £256 UK including postage/£280 (e392) overseas (postage airmail)/US$448 USA/Canada (postage airmail).Claims for non receipt of issues must be made within 4 months of publication of the issue or they will not be honoured without charge.
Applicable only to USA and Canada
WORLD CEMENT (ISSN No: 0263-6050, USPS No: 020-996) is published monthly by Palladian Publications, GBR and is distributed in the USA by Asendia USA, 17B S Middlesex Ave, Monroe NJ 08831.
Periodicals postage paid New Brunswick, NJ and additional mailing offices. POSTMASTER: send address changes to World Cement, 701C Ashland Ave, Folcroft PA 19032
Copyright© Palladian Publications Ltd 2017. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. All views expressed in this journal are those of the respective contributors and are not necessarily the opinions of the publisher, neither do the publishers endorse any of the claims made in the articles or the advertisements.
Uncaptioned images courtesy of www.shutterstock.com
Printed in the UK.
SUBSCRIPTIONS
CONTACT DETAILSManaging Editor: James Little [email protected]
Editor: Jonathan [email protected]
Contributing Editor: Paul Maxwell-Cook
Production: Charlotte [email protected]
Advertisement Director: Rod [email protected]
Advertisement Manager: Ian [email protected]
Advertisement Executive: Paul [email protected]
Website Manager: Tom [email protected]
Subscriptions: Laura [email protected]
Administration: Nicola [email protected]
Editorial Assistant: Rebecca [email protected]
JONATHAN ROWLAND, EDITOR
COMMENT
Digital Assistant Editor: Angharad [email protected]
HeidelbergCement’s acquisition of Italcementi was one of two recent megamergers that reshaped the global cement industries. Next month will mark a year since it was fi nalised: as we approach that milestone, how should we view the deal – and what can it teach us about how we measure a company’s success?
Taking a look through the company’s most recent quarterly results, the success of the deal would appear to be self-evident. “Italcementi acquisition strengthens sales volumes, revenue, and result,” ran the fi rst
subheading in the press release touting the results. The fi gures underneath paint a rosy picture. Sales were up across the company’s three product divisions: cement sales registered the largest jump, up an impressive 47% to 32.8 million t. Revenues rose by E1 billion to hit E4.6 billion – a 29% increase on the previous year.
But read beyond the headline fi gures and the story is different. If you add in Italcementi’s sales volumes to the 2016 comparison, this year’s sales
growth is much less impressive. Indeed, sales of clinker and cement actually fall by 1% on this basis. Ready-mixed concrete sales also fall, while aggregates sales show much more moderate growth (5%, compared to 18%). This is by no means a bad set of results: it is just not as stellar as the headlines.
Turn to synergies and the acquisition does seem to be working out well though: according to HeidelbergCement, the E175 million synergy target for 2017 was achieved in June. This puts the company well on track to achieve its total synergy target for the acquisition of E500 million.
The enlarged company should also be in a better position to weather some of challenges facing the global cement industry, a point hinted at by Dr Bernd Scheifele, Chairman of the Managing Board, in his comments on the results: “In the light of the diffi cult general conditions, we achieved a good result in the second quarter,” Dr Scheifele said. “We were able to almost offset the effect of higher energy costs, bad weather conditions, fewer working days, and increased competition in some emerging countries.”
Beyond fi nancial measures, however, the integration of Italcementi is proving more of a challenge. In its 2016 Sustainability Report, Dr Scheifele admitted to being dissatisfi ed with the enlarged company’s performance.
“We were able to reduce the number and severity of accidents, as well as the number of fatalities,” Dr Scheifele said. “However, we are still not satisfi ed with the result. We will have to further intensify our occupational safety efforts and introduce HeidelbergCement standards at the production sites of the former Italcementi Group.”
The German company also reported a hit to its emissions performance and alternative fuel usage. Take out legacy Italcementi plants and HeidelbergCement’s carbon emissions per tonne of cement were 581 kg in 2016 – roughly level with LafargeHolcim’s 583 kg/t of cement. Add in Italcementi plants, however, and HeidelbergCement’s emissions per tonne of cement jump to 598 kg. Alternative fuel usage was similarly challenged.
Health, safety and the environment (HSE) are then the areas that ask the largest questions of HeidelbergCement’s ability to digest Italcementi. But these are not just issues for HeidelbergCement. At all companies operating in the cement industry, excellence in HSE should coexist with fi nancial excellence. Where they do not, management should be dissatisfi ed: anything less is simply not good enough.
www.cemengal.comwww.plugandgrind.com
FROM 12 TPH TO 75 TPH
FROM 12 TPH TO 75 TPH
FROM 12 TPH TO 75 TPH
FROM 12 TPH TO 75 TPH
Plug&Grind®
AD_WORDCEMENT_SEP17.ai 1 3/8/17 19:11
WORLD NEWS
September 2017 / 5World Cement
Three major players in the Italian cement industry have received fi nes from the Italian Antitrust Authority over allegations of price fi xing. Italcementi, a subsidiary of HeidelbergCement, Buzzi Unicem, and Cementir Italia, a subsidiary of Cementir Holding, were all targeted by the authority. All deny the charges.
The companies are accused of market coordination in the Italian grey cement markets, including the coordination of price rises, via the industry association AITEC. The authority imposed a fi ne of t84 million on Italcementi, g59.8 million on Buzzi Unicem, and u5.1 million on Cementir Italia.
The alleged infringements relate to the period between June 2011 and January 2016, before Italcementi’s acquisition by HeidelbergCement. According to the German company, it has informed the former controlling shareholder of Italcementi, as the share purchase agreement includes “customary protection against such risks.” Italcementi will also lodge an appeal against the authority’s decision.
Cementir Italia also rejected the authority’s fi ndings as “groundless”, reserving the right to mount a legal challenge.
“Buzzi Unicem believes that the authority’s alleged charges are unfounded both in fact and in law and is
fi rmly convinced that it has acted in full compliance with antitrust legislation,” the company said in a statement.
Buzzi Unicem added that it intended to launch a legal challenge to the decision “to prove the absence of any anti-competitive profi le alleged against us.”
The Italian cement industry has been under severe pressure since the 2008 Financial Crisis. Demand for cement in Italy has collapsed from a peak of 47 million t in 2016 to just 18 million t in 2006, according to CW Research. Between 2010 and 2015, consumption fell at an average rate of 10% per year.
“Over the past six years, the Italian cement market has undergone a painful transition and adapted to a new business environment and to lower levels of activity,” said Raluca Cercel, Lead Analyst at CW Report.
This has led to the consolidation of the industry, as well as the closure of multiple cement plants as producers have tried to balance supply with demand. In addition to HeidelbergCement’s takeover of Italcement, Sacci was absorbed by Cementir, while Buzzi Unicem reached a strategic agreement with Wietersdorfer to improve costs and logistics.
Italy Italian Competition Authority issues fi nes
A TEC and CRH Slovakia have installed an alternative fuel system for kiln riser duct fi ring in Turna Nad Bodvou. The Turna Nad Bodvou cement plant already operates a solid alternative fuel (SAF) system for the main burner, which consists of a double truck docking station and a dosing system.
The riser duct itself has a gas residence time of approximately 3 sec., so a thermal substitution rate of up to 25% at the riser duct is possible by limiting the material to a maximum of 50 mm. The SAF is now injected above the bypass take-off point. To limit CO emissions, a hot ignition zone has been created in the SAF injection. This was realised by moving the existing meal inlets to the riser duct.
As the kiln is equipped with an extended kiln riser duct (without tertiary air), it is possible to fi re a signifi cant amount of fuel in the kiln riser duct. About 20% of total fuel use can be fi red as SAF of main burner quality.
Slovakia A TEC installs alternative fuel system
FLSmidth has signed a contract with Nepal Shalimar Private Ltd for engineering, procurement, and supply of equipment for a 35 tph, 3200 Blaine, ordinary portland cement grinding unit at its existing plant. The plant is located in Simara in the Bara District, Nepal.
The contract comprises a range of equipment, including FLSmidth OK 19-3 mill, bag fi lters, weigh feeders, truck loading machine, OK mill gear reducer, and plant control systems.
"The project is an example that world class energy-effi cient technology can be applied even for smaller capacity grinding units," said Country Head of FLSmidth India, Carsten Riisberg Lund. “FLSmidth’s equipment will support Shalimar Cement to achieve improved productivity and operational excellence.”
Shalimar Cement Private Ltd is part of the Shalimar Group, one of the largest conglomerates in Nepal. The company has the capacity to producer 0.2 million tpy.
Nepal FLSmidth signs contract with Nepal Shalimar Private Ltd
IN BRIEFEVENTS
WORLD NEWS
September 20176 \ World Cement
Roanoke Cement Co. (RCC) has achieved ENERGY STAR accreditation from the US Environmental Protection Agency (EPA) for the 11th consecutive year. Roanoke is the only active cement plant in the state of Virginia.
To qualify for ENERGY STAR rating, RCC was required to perform in the top 25% of cement plants nationwide for total energy efficiency, as well as meeting strict environmental performance levels set by the EPA.
Since 1992, RCC has invested over US$100 million in capital upgrades at the plant.
USA Roanoke Cement maintains ENERGY STAR rating
Pakistan Claudius Peters receives ordersChinese engineering company, Chengdu Design & Research Institute, has ordered an ETA cooler from Claudius Peters for a cement plant Pakistan. The new 1086/85 S cooler will form part of a new production line at Pioneer Cement’s plant in the province of Punjab. It has a capacity of 7700 tpd and will be designed as a stage cooler with RB 488-4 EM integrated roller crusher. It will be equipped with ten rows of HE modules for increased effi ciency.
Pioneer Cement was founded in 1986. It currently operates a two-line cement plant in Punjab. The company is expanding operations to meet rising demand for cement in the region from various local infrastructure projects.
Claudius Peters has also signed a contract to deliver two cooler conversions to Askari Cement in Pakistan. The contract was awarded by Chinese design institute, NCDRI, and will see Claudius Peters convert from grate coolers to modern ETA cooler technology.
According to the German engineering company, each cooler is equipped with eight rows of HE-modules and an RB305-3 EM roller crusher. The current capacity of 2700 tpd will initially remain unchanged following the upgrade. Commissioning is planned for 1Q18.
Askari Cement is one of the leading cement manufacturers in Pakistan with two plants. The cooler conversion will be carried out at the Nazimpur plant. The plant has two production lines in operations each with a total production capacity of 8925 tpd.
26 – 28 September 2017PowtechNürnberg, Germanywww.powtech.de
19 – 20 September 2017VDZ Annual Cement ConferenceDüsseldorf, Germanywww.vdz-online.de/en/news/
events
27 – 28 September 2017Alternative Fuels SymposiumDuisberg, Germanywww.lechtenberg-partner.de/
html/Programmesymposium2017.
18 – 20 October 2017BULKEX17Nottingham, UKbulkex.co.uk
10 – 13 October 2017TCMB International Technical SeminarAntalya, Turkeywww.tcma.org.tr
14 – 16 November 2017Arab International Cement Conference and ExhibitionSharm el Sheikh, Egyptwww.aucbm.org
Loesche is to supply four of its vertical roller mills to AUNDE’s new cement plant in the Turkish region of Soma: one mill for grinding up to 350 tph of raw materials; one mill for grinding up to 30 tph of coal or 27 tph of petcoke; and two additional mills, each with a throughput of 150 tph, for grinding clinker and granulated blast furnace slag.
The scope of delivery also includes additional components from Loesche, such as water injection, cyclones, slide gates, and rotary feeders, as well as an extensive spare parts package for the next 2 yr.
AUNDE is a newcomer to the industry and is currently in the process of expanding its portfolio with plants for cement and clinker production. The cement plant currently under construction is based in Soma, situated within Turkey’s second largest lignite mining region.
Turkey Loesche to supply mills to AUNDE cement plant
WWW.SCHEUCH.COM
Scheuch GmbH
Weierfing 68
4971 Aurolzmünster
Austria
Phone +43 / 7752 / 905 – 0
Fax +43 / 7752 / 905 – 65000
E-Mail [email protected]
As an international market leader in the ventilation and environmental technology sector,
Scheuch GmbH always keeps up to date with the latest industry technology.
The company provides trend-setting complete solutions for dust filtration and exhaust gas
cleaning for the entire cement production process. With the innovative emc, deconox and
xmercury systems, the Austria-based company is once again proving itself to be a global
pioneer in the industry.
FOR THE INDUSTRIAL MINERALS INDUSTRIES
SCHEUCHCLEAN SOLUTIONS
deconox
xmercury
emc
WORLD NEWS
September 20178 \ World Cement
Uruguay FLSmidth receives order from Cielo Azul Cementos y Calizas SA
FLSmidth has received an US$30 million order from Cielo Azul Cementos y Calizas S.A. for engineering, procurement, and supply of equipment for a complete cement plant. The plant will be located near the city of Treinta y Tres, approximately 300 km from the capital of Uruguay, Montevideo.
Capacity at the new plant will be 1200 tpd. FLSmidth will supply the following equipment for the project: ATOX 25.0 vertical mill for raw materials grinding and ATOX 13.5 vertical mill for coal grinding; a pyroprocessing system with low NOX ILC calciner, three-base kiln, JETFLEX burner, and Cross-Bar CB 6x29 cooler; and an OK 25-3 vertical mill for cement grinding. The Danish company will also supply planetary gear units for the vertical mills, bag fi lters, a packing plant, control system and plant automation, and weighing and metering systems
Cielo Azul, is an established player in the ready-mixed concrete business, but the new cement plant marks the company’s entry into the cement production business. The order will be completed by the end of next year.
Canada Lafarge Canada partners with Metro Vancouver
Lafarge Canada Inc. and Metro Vancouver have reached a three-year agreement to use residuals from the Seymour-Capilano fi ltration plant as a material in cement manufacturing, thus becoming part of the circular economy.
The residuals are the solids removed during the drinking water fi ltration process and consist of materials from the source water (sediments and naturally occurring elements) and treatment chemicals (coagulants and polymers). They contain a chemical profi le that mimics that of red shale. The agreement follows environmental and industrial trials, and means that fewer raw materials will need to be mined, while residuals are kept out of landfi ll.
LafargeHolcim’s Global 2030 Sustainability Plan calls for increased waste-derived resources to be used in its manufacturing processes. The agreement with Metro Vancouver represents a minimum supply of 10 000 tpy.
“We are proud to have this partnership with local government and industry,” said Pascal Bouchard, Richmond Cement Plant Manager. “These residuals
will soon be part of our city landscape – reused as an ingredient in concrete that is used in construction from sidewalks to skyscrapers. I am hopeful that the research we have undertaken will allow other municipalities to consider industrial re-use options for their water treatment residuals.”
The Seymour-Capilano fi ltration plant treats water from Metro Vancouver’s Seymour and Capilano water reservoirs, with about 250 truckloads of residuals shipped to the Vancouver Landfi ll annually. A display will be set up at the plant to educate students and residents about the path it takes for residuals to become cement and eventually concrete.
“We are very excited to be working with Lafarge on this innovative project, which uses residuals as a product, while reducing our overall environmental impact,” said Darrell Mussatto, Chair of Metro Vancouver’s Utilities Committee. “Our goal is to recover valuable resources from our utilities, and this project aligns perfectly with what we are hoping to achieve.”
India Petron Engineering receives contracts for work at two grinding plants
Petron Engineering has received contracts for engineering work at two new cement grinding plants in India.
The Ramco Cements Co. has awarded Petron a contract for a second production line at its Kolaghat grinding plant in West Bengal. The contract covers civil and mechanical works and has a value of INR620 million.
The project to expand the Kolaghat plant will see capacity rise from 0.9 million tpy to 2 million tpy. It forms part of a programme of expansion at The Ramco Cements Co. that will see total grinding capacity at its stand-along grinding units grow from 4 million tpy to 7.1 million tpy.
Petron has also received a letter of intent from JSW Cement covering civil and structural engineering of a new grinding plant in Jajpur in Orissa. The contract has a value of INR600 million.
JSW Cement is part of the diversifi ed industrial conglomerate, JSE Group, and is targeting expansion of its cement production capacity. The new Jajpur grinding plant will have a capacity of 1.2 million tpy.
What keeps moving 365 days a year?
IN BRIEFIN BRIEF
WORLD NEWS
September 201710 \ World Cement
Oman Cement continues upgrade work
Oman Cement is continuing work to upgrade its cement plant and improve productivity in the face of rising input costs. The company’s production rose 40.68% in 2H17 to 1.255 million tpy of clinker, while cement production was up 4.44% to 1.263 million t.
Upgrade work on the pollution control equipment on line 2 has almost been completed. The kiln has been ignited and clinker production restarted. The upgraded system was supplied by Danish engineering company, FLSmidth.
The company has also awarded an EPC contract for the installation of a new Rotopacker and vacuum-type truck loader to increase the plant’s packing and loading capacity. Total cost of the project is US$4 million. Design work has been completed with site execution work to start soon.
In addition to the equipment upgrades, the company has hired consultants to study and eliminate bottlenecks at the plant in order to enhance performance. The preliminary technical evaluation has been received and is under review.
A consultant has also been appointed for a feasibility report for the joint venture company, Al Wusta Cement LLC, which is planning a new cement plant within the Duqm Special Economic Zone. Duqm is located on the Arabian Sea in central Oman. Al Wusta is a joint venture between Oman Cement and fellow Omani cement maker, Raysut Cement.
Loesche has provided a LM 56 3+3 CS vertical roller mill to Attock Cement Pakistan Ltd (ACPL), for the grinding of cement clinker. The new mill will be used in the new line 3 of the cement plant in Hub Chowki in Pakistan, in the Lasbela/Baluchistan district, 20 km north of Karachi.
The mill will grind ordinary portland cement (OPC) to a fi neness of 3300 Blaine with a capacity of 200 tph, or 2800 Blaine with a capacity of 240 tph.
The company markets cement under its own Falcon brand, which is “a popular and widely used product” in Pakistan, according to Loesche. As a result, the end product quality is of “particular importance to ACPL”. The OPC produced will comply with Pakistani standards, and also the European standard, EN 197-1.
Loesche’s mandate also includes the monitoring and assembly of the mills, as well as commissioning, which is due to take place in mid-2017. The Chinese company Hefei Cement Research and Design Institute, to whom Loesche has previously delivered mills, will act as Loesche’s contractor and will assume overall responsibility for the new cement line.
With the new line, ACPL intends to further increase the production capacity of its existing plant in Hub Chowki from the previous level of 1.71 million tpy.
Pakistan Loesche supplies VRM
JK Lakshmi Cement has announced that, to bring down power costs, the company is installing a 7.5 MW waste heat recovery power plant in Durg, which is likely to be commissioned in October 2017. The company is also constructing a 200 MW thermal power plant in Durg, which will come on stream in 3Q18/19.
On 17 August 2017, the Governor of Oshana Region in Nigeria, Clemens H. Kashuupulwa, opened the Ohorongo Cement Ondangwa Depot, which will distribute cement to the country’s four northern regions and, if feasible, export markets to south Angola. “It is very pleasing to see Ohorongo Cement being optimistic to continue commit to capital projects, as it will position them well for future endeavours. As for their presence in Ondangwa, I believe it will support entrepreneurial drives in the four northern regions,” the governor said.
Carbon emissions per tonne of cement rose at Hanson UK last year, according to the company’s latest sustainability report. The increase comes after storm damage at the company’s Ketton cement plant limited the amount of alternative fuels that could be used in the kiln. “Use of alternative fuels in our cement kilns dropped principally due to an incident early in the year, when the main stack at our Ketton works in Rutland was blown down in a storm, causing damage to the kiln bypass system” the company said in its Sustainability 2017 report. Alternative fuel use dropped to a substitution rate of 45% from 53% in 2015.
VERTICAL ROLLER MILLCASTINGS
MAXIMISE YOUR ROI
LONGER LIFE, BETTERCONSISTENCY,INCREASED CYCLESOur wide range of grinding elements
for vertical roller mills will help you to:
• Reduce your specifi c grinding cost by up to 50%
• Extend the running life of the grinding elements
• Increase your mill operating cycles
• Have a better consistency of the grinding profi le
• Improve effi ciency and availability, resulting in reduced costs
Magotteaux unique metallurgical technologies combine
toughness and durability with high wear resistance,
providing the best solution for your business.
PROCESS OPTIMIZATION PRODUCTS AND SERVICES FOR HIGH ABRASION EXTRACTING INDUSTRIES.
[email protected] · WWW.MAGOTTEAUX.COM
A CHANGING ENVIRONMENT
12 \
KOEN COPPENHOLLE, CEMBUREAU, BELGIUM, REVIEWS DEVELOPMENTS IN THE EUROPEAN CEMENT INDUSTRY.
IntroductionLast year was a challenging year not only for the EU, but also from a geopolitical perspective. Inside the EU, Brexit, the refugee crisis, and rising populism are areas of concern. The European Commission President, Jean-Claude Juncker, has set out a number of options for the future of the EU: the question of whether the union evolves as a multi-speed Europe with different degrees of integration will be put fi rmly on the table in 2017.
And yet, 2016 was also a year where key policy initiatives have unfolded in the areas of climate change, the circular economy, and energy transition.
Integrated supply chain and the cement industryAs the voice of the cement industry in Europe, CEMBUREAU is increasingly focusing on telling an integrated supply chain story. The cement manufacturing process is an essential component of a supply chain that brings many benefi ts. These range from the biodiversity that thrives in rehabilitated cement quarries through to the durable, resilient, and energy-effi cient solutions provided by its downstream product, concrete. Indeed, one of the benefi ts of the commitments made by countries around the world under the Paris Agreement is the recognition that CO2 reduction efforts can be achieved along the full construction supply chain.
In order to tell the industry’s story, CEMBUREAU engaged external consultants to help identify exactly what can be achieved by the cement sector.
The fi rst of the studies was undertaken by 3E consultants, which looked into how the energy storage capacity of concrete can be harnessed to increase the share of renewable energy in the grid. Indeed, one of the challenges faced today in terms of renewable energy is the mismatch between when the energy is generated and when it is needed. In order to make the most of the energy generated by renewables, such as wind and solar, fl exibility is needed in the electricity grid. Heavyweight buildings can provide this fl exibility, allowing consumer energy demand to be shifted in time by using structural thermal energy storage. According to the results of the study, it is possible to achieve a 25% CO2 reduction per dwelling, up to 50% reduction in the need for peak electricity supply capacity, and savings of up to E300 per household per year.
A second study, by Ecofys, looked into how the European cement industry can contribute to the EU
Energy Union Strategy and the Circular Economy Package. This study showed the potential waste uptake of existing cement plants across the EU with benefi ts in terms of fossil fuel savings, CO2 emissions mitigation, resource effi ciency, and recycling. According to the authors, increasing the rate of coprocessing waste in the EU28 cement industry to 60% will avoid 26 million t of CO2 emissions and reduce the costs for about E12 billion of investments in dedicated waste-to-energy incineration plants. In this study, Ecofys also identifi ed the main drivers that encourage coprocessing in the sector, as well as barriers that can hinder its development at national level.
Drivers to increased coprocessing included the following:
Waste management policy, whereby EU member states incentivise more advanced treatment methods.
Low levels of bureaucracy, facilitating the permitting for both using waste and importing preprocessed waste.
A modernised cement industry. Price and price volatility of conventional fossil fuels.
Barriers included the following:
An insufficient availability of high-quality waste. Excessive bureaucracy. Low public acceptance. An under-developed waste processing industry. High competition for available waste. Low landfill taxes.
CEMBUREAU has also recently published an updated Cement Standards of the World publication, which provides a complete overview of all standards for cement from across 84 countries.
Economy, construction output, and cement production: latest developments According to the IMF, 2016 global growth has been estimated at 3.1%, which is slightly below the 3.2% fi gure of 2015. Nevertheless, while advanced economies attained a growth rate of 1.9% in 2016, emerging markets/developing countries fared much better, growing by 4.1%. The world’s largest cement producing countries, China and India, recorded growth rates of 6.7% and 6.6%, respectively. Furthermore, the US
/ 13
September 201714 \ World Cement
economy showed signs of acceleration at the end of 2016 and is expected to grow further thanks to the fi scal stimulus package promised by the new US administration.
When it comes to the EU28, the latest fi gures from the European Commission indicate a GDP growth rate of 1.9%. Here again, the fi gures vary from one country to the next. For example, Spain’s GDP grew by 3.2%, Germany’s by 1.9%, and Italy’s by 0.9%. The data clearly shows that Spain is catching up; Germany remains steady; and the result of the Brexit vote has so far not had a major impact on the UK. Rising energy and commodity prices will drive up infl ation, particularly in countries that import many of their products. For the EU28, infl ation is expected to rise from 0.3% in 2016 to 1.8% in 2017, moving the EU28 away from the risk of defl ation.
When it comes to the construction market, the data shows that 2016 investments in construction were “steady” for the EU28 with an expected increase of 1.7%. The outlook for 2017 is more positive, with a potential increase of up to 2.7%. In the US, a massive increase is foreseen from a lacklustre 1.1% to potentially 4.6% for 2017.
In terms of 2016 EU28 market shares, these can be summarised as follows:
Residential construction: 47%. Non-residential construction: 32%. Civil engineering: 21%.
In 2016, new builds in the residential segment were estimated at 42% and renovation at 58%, with the latter requiring less cement than the former. The non-residential market is at an early stage of recovery. Offi ce construction, in particular, was on the rise. 2016 new construction accounted for 52% of the market and renovation 48%.
Civil engineering suffered from years of fi scal tightening, falling by around 1% in 2016. Most EU member states are expected to increase expenditure on civil engineering, however, with Eastern European countries leading the way. The European Fund for Strategic Investments (EFSI) is expected to boost investments in Europe over the coming years. According to reports, signifi cant funds will be available for the period up to 2020. The infrastructure of several countries requires renovation, and this will be refl ected in fi scal budgets going forward, thereby increasing the importance of this segment.
On a more positive note, cement production appears to be picking up, after having been very fl at since hitting a bottom in 2013. This
World cement production (2015) by region and main countries (%).
GDP EU28 and fi ve countries index (real GDP 4Q18 = 100; 2008 – 4Q16). Source: Eurostat; CEMBUREAU.
EU28: Industrial production, construction production, cement manufacturing. Source: Eurostat; CEMBUREAU.
September 201716 \ World Cement
index is rising faster than the construction index. Based on EUROCONSTRUCT reports, 2016 was a disappointing year compared to expectations, due primarily to uncertainty surrounding Brexit and the aforementioned political uncertainties.
One important element when looking at construction fi gures and cement demand estimates is cement intensity – in other words how much cement is consumed per billion euro invested in construction. The intensity has been very stable in Germany, France, and the UK, but has fallen sharply in Spain and Italy. However, one explanation for the big fall is the sharp downward trend in new construction and the pickup in renovating or fi nalising projects, which had been stopped after the crisis. Renovation and maintenance require much less cement than new construction, which is also the case for civil engineering.
In terms of cement production, CEMBUREAU estimates that 4.6 billion t were produced globally in 2016. The CEMBUREAU region’s share of world production fell by 0.1% to 5.3%, with China and India topping the list with, respectively, 51.4% and 5.9% of global production.
The data for 2015 shows that production (covering cement production plus clinker exports) was slightly higher, with an additional 6 million t produced in the EU28 (making a total of 182 million t), and 1 million t in the CEMBUREAU region (totalling 259 million t).
When it comes to cement consumption, CEMBUREAU data suggests a slight increase from 2014 to 2015 within both the EU28 and the CEMBUREAU region.
Developments in terms of cement and clinker imports and exports in the EU28 have shown a sharp surge in exports over the last fi ve years, as producers searched for new markets after the crisis. This development stabilised just below the 50 million t mark, with 48 million t exported in 2014 and 47 million t in 2015. Imports remained at 20.5 million t, translating into a net export of 26.3 million t for the EU28, slightly down from 2014.
Looking ahead, growth in cement consumption in the EUROCONSTRUCT area (19 countries) is expected to increase by 1% in 2016. For the EU28, 2015 consumption grew by 4.9%, with France at -5.5% and Spain at +6.1% in 2015. To end the report on a positive note, EUROCONSTRUCT expects cement consumption to rise by 2.4% in 2017 and by 3.5% in 2018.
About the authorKoen Coppenholle is the Chief Executive of CEMBUREAU.
Cement consumption: EU28 and CEMBUREAU, 2000 – 2015 (million t).Source: CEMBUREAU
Cement production: EU28 and CEMBUREAU 2000 – 2015 (cement production + clinker exports, million t). Source: CEMBUREAU
EU28 cement and clinker export, import, and net export.
You will need to be a subscriber to read the full edition. Please log in to www.worldcement.com
or alternatively click here to subscribe.
For more information about the comprehensive World Cement subscription package, please contact us:
www.worldcement.comE: [email protected]
T: +44 (0)1252 718999
THAT WAS A SAMPLE OF
SEPTEMBER ISSUE
DON’T WANT TO MISS OUT?
NEW