February 2018 · 2018. 1. 31. · The conversion of an electrostatic precipitator into a baghouse...
20
ADVANCED FILTRATION TECHNOLOGY WITH UP TO 40 FT LONG FILTER BAGS EMC – ENERGY MINIMIZING CONCEPT February 2018
Transcript of February 2018 · 2018. 1. 31. · The conversion of an electrostatic precipitator into a baghouse...
ADVANCED FILTRATION TECHNOLOGY WITH
UP TO 40 FT LONG FILTER BAGS
EMC – ENERGY MINIMIZING CONCEPT
February 2018
Bosch Rexroth AGwww.boschrexroth.com/cement
Your move?
We’re in.If the toughest environments are part of your every day, turn to Rexroth.We provide high-quality drive and control solutions, perfect for both new and retrofit installation for applications within the cement industry. Hägglunds drive systems lets you focus on your core business, while our high-quality drive solutions and global network give you full peace of mind.
The unstoppable drive to keep things moving
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 49: Number 02
February 2018
ISSN 02636050
THIS MONTH’S COVER
ADVANCED FILTRATION TECHNOLOGY WITH
UP TO 40 FT LONG FILTER BAGS
EMC – ENERGY MINIMIZING CONCEPT
February 2018
CONTENTS03 Comment
05 News
REGIONAL REPORT: CHINA
12 The Expanding Chinese Construction EmpireScott Taylor, Timetric Construction Intelligence Centre, makes his predictions for the construction industry in China.
18 Cement in ChinaCui Yuansheng, Jiang Yongfu, and Xu Rong, Institute of Technical Information for Building Materials of China, provide a review of 2017 and expectations for 2018.
CLINKER COOLERS & CONVEYORS
23 Solving the Red River ChallengeMogens Fons, Fons Technology International, describes the application of walking-fl oor clinker cooler technology at the Narlı cement plant in Turkey.
MILLING
30 Utilising IIOT in Cement ProductionJeff DeNigris, Malvern Panalytical, addresses the increasingly prominent role of the Industrial Internet of Things (IIoT) .
FILTERS & BAGHOUSES
37 Exploring a Range of OptionsLoran T. Schmidt and Paulo Oliveira, Babcock & Wilcox MEGTEC, examine the best methods of meeting newer particulate control requirements in cement kilns.
41 Success on a Huge ScaleGeorg Lechner, SCHEUCH, describes the installation of the company’s EMC technology at a Thai cement plant.
45 Knowing your TCO Chris Polizzi, W.L. Gore & Associates Inc., advises on how to achieve the lowest total cost of ownership in process baghouses.
MOTORS
50 Powering on in ExtremesAnja Leipold, Menzel Elektromotoren, looks at what to do when standard motor solutions just won’t do for a cement plant.
CEMENT ANALYSIS
55 Furnace, Furnace, Burning BrightRobert Prior, Carbolite Gero, provides an overview of oven and furnace requirements in cement testing.
59 Sample Preparation and XRF AnalysesFrederic Davidts and Pascal Deprez, XRF Scientifi c, explain why sample preparation is a key step to ensuring that XRF analyses are effective.
63 The Times, They Are A’ChangingMichael Enders, thyssenkrupp Industrial Solutions, investigates the impact of minor volatile species during the clinkering process.
WORLD CEMENT INTERVIEW
68 Building a LeaderLee Young, cofounder and Executive Chairman of Vortex, talks with World Cement.
FEEDING, DOSING & LEVEL MEASUREMENT
73 Level Measurement in ChinaArmin Waibel, UWT GmbH, discusses the level measurement solutions at use on some Chinese cement plants.
77 Getting SmarterTodd Loudin, Flowrox, encourages the cement industry to take a smarter, more pro-active approach to integrating technology when investing in new equipment.
81 When Quality MattersMatt Morrissey, Siemens AG, makes the case for looking beyond the price tag when choosing weighing equipment.
BAGGING & PACKING
85 Water-Repellent Paper SacksMondi Industrial Bags discusses the next generation of water-repellent paper sacks.
The conversion of an electrostatic precipitator into a baghouse with EMC technology
at a cement plant in the Thai province of Saraburi marks a milestone in the history of
Scheuch. With that project Scheuch is once again proving itself to be a global pioneer in
the industry.
For more information: www.scheuch.com
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 2018. 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]
JONATHAN ROWLAND, EDITOR
COMMENT
Contributing Editor: Paul Maxwell-Cook
Production: Hayley [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]
Digital Editorial Assistant: Nicholas [email protected]
Editorial Assistant: Robyn [email protected]
Boutique research fi rm, CW Group, recently released its World Cement Equipment Market and Forecast Report 2018, highlighting a number of trends it sees shaping the industry over the years to 2022.Headlining the report, CW Group sees the market for cement manufacturing related equipment and services reaching US$9 billion by the end of the forecast period. That headline number however masks a continued softness in the market for new capacity: upgrades and spares, as well as what CW Group refers to as ‘functional’ equipment and
services, will be the growth drivers. That is not particularly surprising: the global cement industry remains under a
cloud of quite substantial overcapacity and – barring a few brighter spots (Pakistan and India, for example) – cement companies are simply not building new plants. An interesting effect of this, however, is the narrowing of the traditional pricing gap between Western and Chinese suppliers.
According to CW Group, “turnkey Western equipment producers, such as FLSmidth, thyssenkrupp, or KHD Humboldt Wedag, are becoming increasingly competitive with Chinese suppliers, including Sinoma and CNBM and their sub-units.” As a result, Western suppliers are reclaiming market share outside of China.
It is not simply a story of Western suppliers reducing prices, however, as Raluca Cercel, Associate with CW Group, explained. “Chinese equipment providers are aiming to raise the quality of their equipment. This market approach caters to an increasingly discerning end user, driven by concerns, such as quality and value of the equipment, but also its user-friendliness and fl exibility. The combination of this consumer trend with the rise of labour costs [in China] is expected to result in a gradual increase in prices.”
Consumer demand is also driving growth in the ‘functional’ equipment market, within which CW Group includes automation, control, environmental, and testing equipment and services.
Cement manufacturers are aiming at “achieving higher effi ciency and reducing operating costs,” said Robert Madeira, CW Group’s Managing Director and Head of Research. “As a result, more technology-intensive functions, such as automation, control, and testing, are becoming more prominent and representing an ever-growing share of the cement plant equipment spend mix.”
Growth is also anticipated in the upgrade and spares segments, “underpinned by cement manufacturer’s shifting capital expenditure and strategic priorities.” Globally, CW Group expects the upgrades and spares segments to expand the fastest, reaching close to US$5 billion.
What then to conclude from this? Although the cement equipment market looks likely to remain tough over the forecast period, it is not without opportunities. It will favour the innovative: those that take advantage of the changing competitive balance between Western and Chinese companies; those that can meet the more discerning quality standards of the customer; and those that can offer the advanced technologies needed to achieve customers’ effi ciency, environmental, and cost goals.
World Cement is also keeping up with these trends with around half of the technical features in each month dedicated to operational, maintenance, or environmental topics. As always, do contact me with projects in these areas that might be suitable to feature in the magazine. I can be reached by email ([email protected]) or connect with us via our social media channels. I hope you enjoy this month’s issue!
February 2018 / 5World Cement
WORLD NEWSTunisia Buyer sought for majority stake in Carthage Cement
The Tunisian government and Bina Corp., controlling shareholders of Carthage Cement, are looking to sell a majority stake in the cement producer. Carthage Cement operates a 2.2 million tpy cement plant, southeast of Tunis, as well as two adjacent quarries.
The quarries cover a total area of 358 ha. The fi rst quarry has an area of 218 ha. and is located on land owned by Carthage Cement. The second 140 ha. quarry is located on land that is leased from public property.
According to the Call for Expression of Interest, the sale of a 50.52% stake will take place via public tender to a strategic and/or fi nancial investor, who is able to ensure its management and development. The sales process is to take place in two phases: a prequalifi cation phase will be followed by a binding offer phase.
The deadline for expressing interest in acquiring the company is 16 February 2018. Prequalifi ed candidates will
then be informed of their qualifi cation on 2 March 2018, following which they will be asked to submit their binding offers. ECC MAZARS, IEG Tunisia, and Mrabet Avocets are acting as exclusive advisors for the sales process.
The proposed sale of Carthage Cement comes as the Tunisian cement market faces a number of challenges, however. “Limited options to divest of extra capacity, and announced capacity increases of about 2 million t, adding to the woes of existing manufacturers, will most probably disrupt the once stable Tunisian market and depress utilisation rates,” Tea Vukicevic, Associate Analyst at CW Group, told World Cement. “The current export circumstances do not provide any alleviation. Manufacturers that once hoped to become strong exporters in the region are now hampered by the self-suffi ciency and political uncertainty of their main partners, Algeria and Libya,”
UAE India’s Shree Cement to acquire Union Cement Co.
India-based cement producer, Shree Cement, is to buy a majority stake in UAE-based Union Cement Co. (UCC), following approval of the deal by Shree’s board of directors. UCC has an enterprise value of US$305.24 million.
Established in 1972 and listed on the Abu Dhabi Securities Exchange (ADX), UCC is a leading cement maker in the UAE. The company has clinker production capacity of 3.3 million tpy and cement production capacity of 4 million tpy. In addition to ordinary portland cement, UCC produces a number speciality cements, including sulfate-resistant cement and oilwell cement. The UCC plant is also located close to Ras Al-Khaimah’s Saqr Port, allowing
the company to serve the export markets of the Arabian Gulf, Middle East, and East Africa, in addition to the markets of the UAE.
The acquisition is subject to the conversion of UCC from a public joint stock company into a private joint stock company, delisting from the ADX – which is subject to UAE regulatory approval – and other conditions precedent. Completion of the deal is expected in about nine months.
Following the acquisition, Shree Cement will operate a cement production capacity of around 33.3 million tpy. It will also expand its business beyond India for the fi rst time.
India Sanghi plans to almost double cement capacity
Indian cement producer, Sanghi Cement, is to almost double its cement production capacity, according to a recent release to the Bombay Stock Exchange. The company will also signifi cantly expand its existing captive power capacity.
Under the plans, Sanghi Cement will increase its clinker production capacity at its cement plants in Kutch to 6.6 million tpy. The additional clinker production will feed 4 million tpy of new cement grinding capacity, taking the company’s cement production capacity to 8.1 million tpy.
The new grinding capacity will be split equally between the plant at Kutch and a new stand-alone grinding plant in Surat.
The estimated cost of the project is INR12.5 billion. Key equipment suppliers include Danish engineering company, FLSmidth, and German milling specialist, Loesche.
FLSmidth is to provide a 10 000 tpd pyroprocessing line for clinker production, while Loesche will provide the raw mills and coal mills for the clinker line. Supply of the grinding mills remains under negotiation.
Sanghi will also increase its captive power generation capacity from 76 MW to 144 MW through the addition of a 68 MW thermal plant. Chinese state-controlled turbine manufacturer, Hangzhou Steam Turbine Co. has been named as the supplier of the new power plant.
IN BRIEFEVENTS
February 20186 \ World Cement
WORLD NEWSPakistan Attock Cement starts-up new production line
A new production line has started operations at Attock Cement’s Hub cement plant in Pakistan’s Baluchistan province. The new line has a capacity of 4000 tpd or 1.2 million tpy of cement.
Based in Karachi, Attock Cement is a subsidiary of Pharaon Group. It previously had capacity of 1.79 million tpy, according to the All Pakistan Cement Manufacturers Association (APCMA). With the new line, its total capacity will increase to around 3 million tpy.
The new production line is one of several planned or opened recently in Pakistan. The country’s largest cement producer, Lucky Cement, brought 1.3 million tpy of capacity online in December.
According to the APCMA, the country’s total installed capacity as of December 2017 was 46.94 million tpy.
India JSW Cement to expand Salboni plant
JSW Cement is to increase production capacity at its Salboni cement plant in Bengal from 2.4 million tpy to 3.6 million tpy. According to local press reports, the company is to invest INR4 billion in the expansion project, which will also include construction of an 18 MW captive power plant.
According to JSW Managing Cement Managing Director, Parth Jindal, INR3 billion would be spent on increasing production capacity at Salboni, while INR1 billion would be spent on the power plant.
The Salboni plant began commercial production in August of last year, following an investment of INR8 billion. The expansion project will begin this year, added Jindal, and forms part of JSW Cement’s plan to increase its total production capacity to 20 million tpy by 2020.
The company currently has an installed capacity of 11.6 million tpy. Jindal also said that JSW Cement would bid for the assets of Binani Cement and Kalyanpur Cement. The two companies have combined production capacity of around 12 million tpy.
France AUMUND to supply Martres-Tolosane upgrade
AUMUND is to supply a range of material handling equipment to the Martres-Tolosane cement plant modernisation project in southwest France. The E100 million project is scheduled to begin in 4Q18 and run until 2020.
As part of the upgrade, AUMUND is supplying a package of equipment, including belt bucket elevators to feed the 96 m heat exchanger and the raw meal silo at the plant. Two BWZ chain bucket elevators will be used to convey raw meal and fi lter dust, as well as silo feed, while a KZB pan conveyor with a 9 m vertical lift will be installed under the clinker cooler.
The German-based company will also supply seven LOUISE-type drag conveyors with a centre distance of 13 m and conveying capacities between 7 and 50 tph. Two CENTREX machines (25 – 250 tph) will extract limestone and clay, as well as iron ore, from silos up to 7 m high.
The Martres-Tolosane project is part of a E300 million investment being made by LafargeHolcim in France. The upgrade will focus on environmental protection to make the plant fi t for the future.
Slag & AshTrade Americas
Conference & Exhibition 2018
22 – 24 February 2018
Cancun, Mexico
www.gmiforum.com
Alternative Raw Materials &
Fuels 2018
22 – 24 February 2018
Cancun, Mexico
www.gmiforum.com
bauma CONEXPO Africa 2018
13 – 16 March 2018
Johannesberg, South Africa
www.bcafrica.com
AFCM Symposium &
Exhibition 2018
04 – 06 April 2018
Bandung, Indonesia
www.afcm2018indonesia.com
Cementtech 2018
11 – 13 April 2018
Chengdu, China
www.cementtech.org/eng/news.
asp?id=1
Africa CemenTrade
Summit 2018
18 – 19 April 2018
Dakar, Senegal
www.cmtevents.com/
aboutevent.aspx?ev=180415&
Hillhead 2018
26 – 28 June 2018
Buxton, UK
www.hillhead.com
27 & 28 June, Paris WCA CEO Forum for Climate Change (WCA GCCF Paris)
19 & 20 September, Shanghai WCA World Cement Technology Conference (WCA WCTC Shanghai)
3, 4 & 5 December, London WCA General Assembly and WCA World Cement Conference in associa on with INTERCEM
The World Cement Associa on is the organisa on working on a global basis to represent and promote the world cement industry and its stakeholders.
Its membership spans 35 countries and represents 1 billion tonnes of global cement produc on capacity, making WCA the largest interna onal cement associa on in the world.
WCA DATES FOR YOUR DIARY
+44 7714 928 358 secretarygeneral@worldcementassocia on.org
For updates and event details follow us on LinkedIn and Twi er (@WorldCemAssoc) or visit www.worldcementassocia on.org
February 20188 \ World Cement
IN BRIEFIN BRIEF
WORLD NEWS
International 4B designs extended power shield for Auto-Set RF capacitance point level indicators
4B Components Ltd, a manufacturer of material handling and electronic components, has designed an extended power shield for the Auto-Set™ series of RF capacitance point level indicators to provide high-, medium-, or low-level indication in silos that contain bulk granular solids and powders, such as portland cement.
The power shield creates a barrier and enables the unit to ignore material built up on the probe, preventing false readings. The Auto-Set is now available in three standard power shield lengths of 4, 12, and 16 in. With the longer power shields, installation through thick-walled silos is easier, since only a 1 in. dia. hole is needed for probe insertion.
The Auto-Set also provides the user with a visual indication of the set values, which allows for simpler onsite adjustment and set up via a push button membrane and large LED display. The Auto-Set can be side or top mounted and uses stainless steel probes up to 33 ft. long. For high-temperature or vibration applications, a remote version is also available.
The Autoset series of level indicators are CSA approved for the US and Canada.
Chinese cement company, Conch Cement has joined the World Cement Association as a founding member. With a 335 million tpy capacity and 50 000 employees, Conch Cement is one of the world’s largest cement producers.
Ten CEMEX USA facilities have earned conservation certifi cation from the Wildlife Habitat Council in recognition of programmes and projects that demonstrate excellence in the areas of conservation education, and wildlife habitat restoration. Among those to receive the recognition were the COSMOS cement plant in Louisville, Kentucky, which received the gold tier award, the Brooksville South Operations in Florida, which received the silver tier award, and the Miami cement plant which received certifi cation.
Cooperativa La Cruz Azul SCL has awarded Fives FCB two contracts for the engineering, supply, construction, and commissioning of two raw meal grinding plants on a turnkey basis. Both plants are situated in Mexico; each grinding plant will be fi tted with one FCB Horomill 4000 mm grinding mill and one FCB TSV 6500 mm classifi er. The fi rst grinding unit, which will be installed in the Cruz Azul Hidalgo plant, will have a capacity of 280 tph of raw meal and will be dedicated to the new clinker line no. 10 project. The second, with a capacity of 300 tph raw meal, will be installed in the Oaxaca Lagunas plant as part of the new clinker line no. 5 project.
Canada Lafarge begins study into alternative fuels
Lafarge Canada Inc., along with academic and NGO partners University of Calgary, Queen’s University, and Pembina Institute, is conducting a million-dollar study into the environmental benefi ts of introducing lower-carbon fuels at its Exshaw cement plant, Alberta.
Eight different lower carbon fuels will be researched, including non-recyclable plastic, treated wood products, and carpets and textiles.
Building on previous research, and the successful implementation of these low-carbon fuels at different Lafarge cement plants around the world, this multi-partner lower-carbon fuels project is the most signifi cant of its kind in Canada, according to the company.
“Our estimates show each 20% incremental replacement of natural gas at the Exshaw cement plant with lower carbon fuels could result in the elimination of nearly 75 000 tpy of CO2. This is the equivalent of taking over 16 000 cars off the road annually. While these are preliminary estimates, this research project will assess these fi gures precisely and in the local context,” said Rob Cumming, Environmental Director, Lafarge.
“Laboratory simulations, environmental studies, economics and logistics reviews are already underway,” said Jim Bachmann, Exshaw Plant Manager.
Lafarge aims to replace 30 – 50% of fossil fuel use at its Canadian cement plants with lower carbon fuels by 2020.
February 201810 \ World Cement
WORLD NEWSInternational Eickhoff Antriebstechnik develops new-design gearbox for belt conveyors
Life cycle costs (LCC) and total cost of ownership (TCO) are increasingly the focus of operators of cost-intensive facilities. Reliability of all components is the key to a profi table operation. As a supplier of machines for underground coal excavation and gearboxes for wind turbines and industrial applications, Eickhoff is familiar with efforts to increase reliability. The company has now launched new gearboxes for belt conveyors and similar applications.
Standard gearboxes generally use a separate oil supply, when operating at nominal power, as the ratio from nominal power to thermal capacity is not bigger than 0.25 – 0.3. That means that a cooling system is required, if the load on the gearbox exceeds a value of 25 – 30%.
To minimise investment, gearboxes are nowadays designed to cut costs. Using three-stage, instead of two-stage, reducers decreases size, weight, and costs of a gearbox. The consequences are higher oil temperature, increasing oil loss (appoximately 0.8% per stage plus energy for oil supply pumps), and increasing oil consumption. In most applications, the use of a more expensive synthetic oil is unavoidable. The higher temperature causes shorter intervals for oil exchange.
Due to geometrical reasons, the size of bearings in three-stage gearboxes is also smaller. Key to the long life of high-loaded bearings is the quality of the oil. To maintain the lifetime of bearings, fi lters are used to receive the required oil quality.
All of the above facts motivated Eickhoff to create a new concept for helical and bevel-helical gearboxes. The company mainly focused on the thermal capacity, oil guidance, and sealing concept described below.
As thermal capacity is one of the keys to improving the thermal balance, without using additional devices, such as pumps and coolers, the heat emission of the housing is of great signifi cance. To improve heat emission the following measures have been taken.
Together with experts from Eickhoff’s foundry, the geometry of cooling fi ns was optimised. Using as much surface as possible, the gearbox was designed as a foot-mounted version with cooling fi ns underside, as well as on the upside (Figure 1). Surface area was increased by 75%, compared with a standard two-stage gearbox.
Optimised cooling fi ns were also equipped with discontinuous covers to avoid dust and to increase air volume passing the cooling fi ns.
With a sophisticated and improved system of scrapers, defl ectors, and trays, the oil is guided to its required place and buffered at the point where it is needed. The required oil level has also been dramatically lowered, and splashing losses are reduced. Even after extended standstill or at temperatures below 0°C, oil is available at necessary places.
In standard gearboxes, contact seals, such as lip seals, are used. Due to wear of this rubber-made seal, leakage is a matter of time. Using a system of small gaps and successive arranged and drained cambers, Eickhoff implemented touchless seals without wear. These seals have been successfully tested under typical inclinations up to 8° without leakage.
The measures presented result in a thermal capacity that is on the same level as nominal power. Any oil supply or cooling system is not required. In the end, Eickhoff provided a drive solution with high reliability and disposability at low life cycle costs.
The new gearbox is offered with ratios from i = 12.5 to i =20 and a power up to 7000 kW. Accessories like backstops, couplings, heaters, and swing arms are also available. Figure 1. Foot-mounted gearbox, with cooling fi ns on top and below.
Order our new catalogue onlineO
For over 90 years, KettenWulf, as an expanding global company, has stood for quality, reliability and flexibility. More than 1400 employees develop, manufacture and market customized solutions in the field of conveying and drive technology at ten locations across Europe, America, Australia and Asia. All around the globe, KettenWulf is your strategic partner when it comes to delivering cutting edge product quality.
NEW HIGH SPEED CONVEYING
Sprockets for bucket elevator
fCentral bucket elevator chain with forged link plates
ENERGY EFFICIENCY
MAXIMUM LOAD
LOW MAINTENANCE
FATIGUE STRENGTH
KettenWulf Betriebs GmbHZum Hohenstein 1559889 Eslohe-KückelheimGermany
T + 49.(0)2973.801-0F + 49.(0)2973.801-228
Chains & Sprockets made by KettenWulf
Experts for the bulk materialhandling industry
12 \
The Expanding Chinese
Construction Empire
Scott Taylor, Timetric Construction
Intelligence Centre, makes his predictions for the
construction industry in China.
/ 13
IntroductionThroughout the 21st Century, China has been a world leader in expanding its infrastructure base. It has created the world’s largest high speed rail (HSR) network, with over 20 000 km of track spread throughout the country, grown its national trunk highway system to over 100 000 km, and become the world’s largest energy producer. In recent years, the domestic construction sector has begun to cool off, and China has looked beyond its borders to export its excess contractor capacity and have a wider infl uence on infrastructure construction more globally.
Slowing domestic construction: the ‘new normal’Large-scale infrastructure investment continues to be a prominent part of the Chinese investment programme, with the US$928 billion of infrastructure output representing 8.3% of GDP in 2016. This fi gure represents more spending on infrastructure than North America and Western Europe combined. While China remains committed to expanding its infrastructure base over the medium term, with Timetric forecasting annual average growth of 9.8% for China out to 2021, this is a marked decrease from the 19.6% annual average growth seen over the past decade. This slowdown
is typical of China’s economy more generally: as the country matures and the productivity gap shrinks compared with advanced economies, a natural decrease in growth is occurring, as this gap becomes more diffi cult to close. President Xi JinPing has called lower growth levels the ‘new normal’, and has said that China should focus on structural reforms going forward, rather than trying to recapture past growth levels.
China’s infrastructure project pipeline, as tracked by Timetric’s Construction Intelligence Center (CIC), certainly supports this assertion. While China still has a signifi cant number of infrastructure projects (1505 with a combined value of US$2.7 trillion) underway across all major sectors throughout the country, the project pipeline is starting to mature, with over 57% of projects in the execution phase of construction. This suggests that, while construction output should be strong over the short term, as projects leave the pipeline, there could be a decrease in volume of new projects coming through to replace them.
Expansion into Asia and beyondAs the Chinese construction project pipeline has matured, the country has started to look beyond its borders for infrastructure investment opportunities. Currently, Chinese contractors are involved with
February 201814 \ World Cement
the fi nancing and/or construction of 1034 major infrastructure projects in other regions of the world. The majority of these projects are being found in Emerging Asia, the Middle East, and Africa. China appears to be particularly interested in large-scale mega projects. While projects with Chinese company involvement only make up 16% of the global total, the size of many of the initiatives means this corresponds to 31% of the total global infrastructure project pipeline value: US$17.1 trillion as of 2017.
The pipeline of projects outside of China but with Chinese involvement is also less mature than China’s domestic project pipeline. 45% of these external projects are in the execution phase, suggesting that investment will continue for some time. Railway projects make up over 40% of the pipeline in total value and only 17% of the volume. China is heavily involved in this sector, as the projects are often particularly large in size, which many emerging nations would not be able to fund and construct alone.
Emerging Asia is receiving the majority of Chinese involvement, with 42% of projects taking place in this region. The largest project under construction is a railway link extending from China, through Asia and Middle Eastern, countries such as Pakistan, Tajikistan, Iran, and Kazakhstan, with the target of reaching Turkey and achieving the goal of connecting China with Europe. The rail line involves the construction of a 6000 km HSR line and is being led by the government of China. Financing for the project is expected to come from Chinese state-owned banks, as well as international fi nancial institutions, such as the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank. Chinese companies are also heavily involved in sub-Saharan Africa, with 277 projects at a total value of US$363 billion, according to the CIC. This value represents 31% of the total infrastructure construction value in the region.
In contrast, Western European and North and Latin American infrastructure construction projects currently have fairly low involvement from Chinese
fi rms. Factors driving this lack of interest include North America and Western Europe’s high levels of development, with a high-quality existing infrastructure base and lack of need for Chinese investment. Further, the geographic position of North and Latin America relative to China is viewed as a hindrance to Chinese involvement.
The One Belt, One Road initiativeThe globalisation of Chinese construction has been led by the ambitious One Belt, One Road (OBOR) initiative, a US$3 trillion infrastructure building campaign in which China’s government is investing in power plants, railroads, and other infrastructure projects in many emerging markets. The OBOR initiative is expected to facilitate economic development through trade and infrastructure construction. There will be opportunities for businesses globally, and the initiative will impact construction markets by providing additional sources of financing, technical knowledge, and encouraging co-operation. Additionally, the initiative will foster greater interdependence for countries along the route, as their economies become more economically and politically integrated.
Countries along the route will benefit from improved trade links, reaping substantial and wide-ranging economic benefits. These countries lack the financial capacity to develop their infrastructure through public coffers, and the private sector is unable or unwilling to meet the shortfall. Trade barriers will be reduced through improved infrastructure, combined with greater technical knowledge and availability of finance. In total, the CIC is tracking 111 mega projects that are part of the OBOR Initiative around the world, and these have a combined value of US$688 million. The Emerging Asia region is benefitting the most from Chinese support. Pakistan has receieved particular investment, with 43 OBOR infrastructure construction projects.
The initiative is not without significant benefits for China, in addition to the positive impacts for countries along the trade routes. The standard financing model for the projects is through loans from Chinese banks that pay for Chinese contractors. Using such firms will fulfil a number of necessary criteria: using the excess capacity of Chinese companies; using the technical capacity of firms; greater Chinese control of projects; economic benefit for China; and developing the capacity of domestic private sector firms.
The initiative will also likely bolster China’s political reach. While the Chinese government has been keen to emphasise that agreements for OBOR projects come with no political strings attached, the investment is de-facto building stronger political and economic ties between China and the host governments. Project loans often come with their own set of conditions,
China’s concrete and cement market growth (note: four-year moving average). Source: Timetric Construction Intelligence Centre.
Over 90 Years of Experience in Industrial Air Filtration Systems
We span the entire value chain of turnkey projects and guarantee every step:
In-house Manufacturing
Assured quality with full control over production.
Time and cost savings thanks to lean manufac-
turing processes.
Field Service Management
Experienced technicians support our customers
during the full life cycle of our solutions.
Optimised Process and Nuisance Filters
High-performance systems ready to meet any
gas flow requirement.
KEY ADVANTAGES
Requirements assessment, design and
engineering of the highest energy and cost
savings solutions, integration and maintenance. Thousands of customers around the world trust our solutions:
| Kiln and Raw Mill Filters
| Clinker Cooler Filters
| Cement Mill Filters
| Coal & Pet Coke Mill Filters
| Alkali Bypass Filters
| Air to Air Heat Exchanger
+34 945 241 800 [email protected] www.aafintl.com
February 201816 \ World Cement
such as high interest payments, a need to use Chinese labour, goods, technology, and having to grant long-term access to natural resources.
Certainly, China’s concrete and cement sector is taking advantage of OBOR deals put in place with other countries. Domestic production of concrete and cement has been steadily declining in China over the past fi ve years, in line with slowing construction growth. As expected, cement and concrete imports have also been less required, but cement and concrete exports are picking up speed, as China uses its own construction materials in foreign infrastructure projects.
Wariness of foreign competitorsThe rise of China in global construction has not gone unnoticed by foreign construction contractors, and its expansion has faced criticism in some regions. In a recent Timetric survey on globalisation and construction, construction companies operating in all major regions throughout the world were asked to provide an opinion on trends relating to globalisation in construction, including foreign threats to
their business. Unsurprisingly, China received the highest portion of the vote (31%) on the question of the source of threats to business from foreign competitors, with the US coming in at second, with 25%. Construction companies from all major regions view China as their largest threat to business, except for Africa, which welcomes Chinese investment but is wary of Western Europe competition. 88% of respondents from Africa viewed Western European competitors as their greatest threat to business. The Americas also views the US and Western Europe to be greater threats than China, each receiving 38% of the regional respondents’ vote.
More generally, construction companies are increasingly seeking to expand their business or increase the level of investment overseas over the next 12 months. 28% of respondents reported that they intended to increase their investments in the US, 27% in the Middle East, 23% in the UK, and 23% in Southeast Asia. This focus is slightly different to the focus areas for China as per the project pipeline data. China has low interest in the developed regions of North America and Western Europe, preferring to target developing countries in Emerging Asia, and the Middle East and Africa.
China has faced additional criticism for some of its projects choices, notably for its insistence on developing HSR lines in Africa. HSR requires large investment and a high occupancy rate, as well as a suffi cient power supply to run the trains, which may be a problem for some African nations. Africa further faces unique challenges, such as having large, roaming wild animals, which necessitates elevated tracks, issues that critics are worried China is not adequately considering.
Next steps for Chinese constructionChina’s expanding global reach in the construction sector is a relatively new phenomenon, and it remains to be seen whether the promised trade benefi ts and economic growth are realised once much of the China led infrastructure is operational. Initial results are generally positive, with China’s globalisation movement applauded at a time of rising nationalist and anti-trade sentiment in many countries. However, it has not been without its critics, whose voices may grow louder, particularly if there are any missteps along the way.
About the authorScott is an Economist for Timetric’s Construction Intelligence Center. He primarily covers the infrastructure sectors of key markets in Emerging Asia, understanding costs and drivers of infrastructure construction, and forecasting economic growth and market trends throughout the region. His work with Timetric has also included developing indices to track global investment climate risk over time, gauging changes in political, financial, economic, and market risk for major developed and emerging nations.
Expected threat to business from foreign competitors over the coming 12 months (percentages do not sum to 100% as a multiple answers allowed).Source: Timetric.
Table 1. Chinese involvement by region.
Region Number of Projects
Value (US$ billion)
Emerging Asia 430 1164
Sub-Saharan Africa 277 363
Middle East and North Africa
108 396
Latin America 73 139
Eastern Europe 61 297
Developed Asia-Pacific 53 120
Western Europe 23 75
North America 9 12
Total 1034 2566
Source: Timetric
www.gebr-pfeiffer.com
powered by
MVR 6700 C-6 in operation at Lafarge Holcim’s Biskra works in Algeria
WE SET THE BENCHMARKS IN GRINDING
Redefi ning fi neness – Pfeiffer’s MVR vertical mill withMultiDrive® grinds CEM I to a fi neness of 4,800 cm2/g
High-performance cements require high fi neness. In Biskra Algeria, the exceptionally
smooth running Pfeiffer MVR 6700 C-6 with MultiDrive® makes it possible to grind
CEM I to a fi neness of 4,800 cm2/g (acc. to Blaine) and offers unprecedented levels of
performance thanks to its powerful and innovative MultiDrive® technology. The system’s
six grinding rollers and fi ve 1,825 kW drive modules provide double-active redundancy to
ensure maximum performance and technical availability even during maintenance.
Pfeiffer. Passion for grinding.
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
FEBRUARY ISSUE
DON’T WANT TO MISS OUT?
NEW
