BridgeGap Engineering Blog » Cemex

Mixed Feeling in the UK Over Alternative Fuels

Lehigh Ben — Thu, 14 Apr 2011 00:05:47 +0000

South Ferriby, North Lincolnshire, United Kingdom, was put on the radar of the cement industry as Cemex’s plant achieved production over a three day period using nothing but alternative fuels to fire the kilns. The fuel, known as Climafuel, is gathered locally from residential and commercial waste that would otherwise be sent to a landfill. In addition to the Climafuel, Cemex burns secondary liquid fuels (SLFs) that are made from industrial waste liquids such as paints, inks, and varnishes. The South Ferriby plant is believed to have set a new record in the UK in a country where 35% of all burned fuels are non-fossil fuel based; a notable achievement. Plant manager Philip Baynes-Clarke said, “I am immensely proud that this record has been set using a kiln that was commissioned in 1973. It proves that with the right team, skills and capital investment, plants like ours in South Ferriby can have a long and healthy shelf life…The use of alternative fuels at South Ferriby is key to improving the environmental performance of cement making…Our 100% record was set over a three day period in March, with the kiln remaining stable and producing good-quality cement clinker. The challenge is now to exceed our 90% weekly average record and use 100% over a more sustained period.”

Over the past year, the South Ferriby plant has burned more than thirty-six thousand tonnes of waste that would have ended up in a landfill. The reduction in emissions from this recycled waste is the equivalent of the emissions of eleven thousand automobiles.

However, not all plants in the UK are experiencing such success and acceptance with their local communities. Lafarge’s Aberthaw Works plant located in Southern Wales is finding environmental activists and local residents fighting its proposed plan to burn old tires and plastic in its kilns. Lafarge’s plan to utilize solid recovered fuels (SRFs) would save the plant approximately fifteen thousand five hundred tonnes of coal per year resulting in a reduction of twenty thousand tonnes of carbon dioxide emissions. Plant manage James Kirkpatrick said, “SRF has been used for over 10 years. End-of-life tyres have been used for around 30 years and increasingly so over recent years since landfilling of them became illegal in the UK. We are basing our plans on a safe and proven technology and are aiming to provide cost-effective solutions for local waste.”

Despite these reassuring words, resident Ron Lloyd, who lives adjacent to the plant, has expressed concern over the smell and storage of the tires. Lloyd said “alarm bells [are] ringing” and wants more information for Lafarge before they begin using the SRFs. Environmental activist Keith Stockdale is concerned over possible “chemical and industrial pollution” released by burning this waste. He would want strict government regulation on the plant were the proposal to be adopted. Lafarge has plans to send out four thousand letters to local residents as well as to hold two public exhibitions to inform the public about the ins and outs of the proposed process.

Current Woes, Future Hopes

Lehigh Ben — Thu, 04 Mar 2010 22:37:27 +0000

Despite predictions that the global recession is beginning to slowly right itself, many cement companies are still experiencing tough financial situations. Many large producers have posted losses in the 2009 fourth quarter, but are holding high hopes for increased business throughout 2010.

French-based company Lafarge posted a loss of $51.76 million dollars (38 million Euros) after earning $54.5 million dollars (40 million Euros) last year. Their sales declined 22% in the fourth quarter alone. Following in the wake of this news, Lafarge announced that it would be selling three Beijing cement and concrete making facilities for $74.3 million dollars to Chinese BBMG Corporation. These new assets along with predicted increased demand in developing areas leave Lafarge expecting a stronger 2010.

Cemex, the world’s third largest producer and the US’s biggest producer, is still struggling with reducing the debt accumulated in its 2007 acquisition of Australia’s Rinker. The company is working to sell assets around the globe to reduce their $15 billion dollar tab. At the end of February, Cemex announced the sale of 12 ‘non-strategic’ quarries throughout the US through its joint venture Ready Mix USA LLC, of which is will see $100 million. A company statement said, “Cemex, which does not consolidate the results of Ready Mix USA LLC, expects to use its cash proceeds from this divestment to reduce outstanding debt and to enhance its liquidity position.” These sales and expected sales in Austria, Hungary and Britain started in 2008 will help solidify Cemex’s position in 2010.

Danish-based cement and mineral equipment supplier FLSmidth, Inc. also posted a profit drop in the fourth quarter; but was less harsh than predicted. Reuters predicted a profit of 539 million crowns ($98.7 million), but the company ended with an unexpected 764 million crowns ($138 million). Despite the extra profit, FLS stocks fell 1.2% over 2009. Chief Executive Jorgen Huno Rasmussen said, “We have bottomed out in both our markets, and that means that things will look slightly better in 2010.” Order intakes are expected to rise this year over 2009 values, though the total volume will be less than before the financial crisis.

Despite problems with debt and lack of business due to the recession, cement producers around the globe are taking positive steps to securing their future. They are taking advantage of the opportunities presented through this crisis to emerge stronger and more well-founded than ever before.

Cement Industry Update

experts@bridgegap — Thu, 02 Jul 2009 15:00:13 +0000

CEMEX announced on Tuesday that it had made significant progress in restructuring of its debt. It has managed to move the maturities of about 14.5 billion in dept out from the 2009-2011 time frame out to 2014. The move helps substantially secure the company’s short term financial stability.

Texas Industries is under pressure from an investment fund with a large stake in the company. The fund has stated their intention to nominate three members to the board due to what the fund managers call under performance relative to peers

Holcim moves. Lafarge, Cemex stay in the game.

admin — Tue, 16 Jun 2009 23:40:12 +0000

Yesterday, while Lafarge was announcing a 750 million Euro bond issue to solidify its short term dept, Holcim was suprrising many in the industry by announcing an acquisition of Cemex assets in Austrialia for a significant 1.6 billion dollars. Analysts characterized the deal as “too good to pass up” for Holcim. Still, in the current business environment, this is a bold move and one that demonstrates a financial position of strength for Holcim.

As Cemex and other players look to liquidate non core assets, will others be able to capitalize?