BRAZIL
Dr Peter Edwards, Global Cement Magazine
Brazilian cement focus
Brazil is a massive country, covering almost half of the area of South America.1 Its industries are well
developed and its large cement industry is still growing rapidly. Such growth looks set to continue and
may accelerate ahead of substantial government infrastructure projects and work for the 2014 FIFA
World Cup and 2016 Summer Olympic Games.
Above: The statue of Christ
the Redeemer, one of the
first major constructions
to be made from Brazilian
cement,6 looks out over the
city of Rio de Janeiro, host
for the 2014 FIFA World Cup
final and the 2016 Summer
Olympic Games.
34
Introduction
History
Brazil, by far the largest country in South America,
and the fifth largest in the world, is also the world’s fifth
most populous country.1 As of 26 December 2011 it
reportedly had the sixth largest economy in the world,
overtaking the UK at the end of the year.2
The country is not short of money, which has
helped give rise to vibrant industrial and technological sectors, a highly-developed infrastructure and a
large cement industry. However, its wealth, much of
which stems from its natural minerals and oil, is very
unevenly distributed among its 203.4 million inhabitants.2 The country suffers from very wide social and
economic inequality, ranking 10th from bottom on
an index of household income equality in 2011.3 As is
the case around the world, where rich and poor are in
close proximity, high levels of crime follow, especially
in the larger metropolises such as Rio de Janeiro and
São Paulo.
From the 1500s onwards Brazil was a key constituent of the Portuguese Empire. It even played host to
the Portuguese King João VI after France’s Napoleon
attacked Lisbon, invading Portugal in 1808. After 13
years in Brazil, João returned to Portugal, leaving his
son in place as a new King. The Brazilian monarchy
continued until a military coup forced the abdication
of King Pedro II in 1889.
By 1930, power had gradually passed to politicians
and Brazil became a republic for the first time. A second coup in 1964 returned power to the military until
it ceded power peacefully for a second time in 1985.
Throughout the 20th Century, Brazil adopted a
policy of non-confrontation on the world stage, to the
point where it could be described as insular. It had very
little involvement in the World Wars, although it sided
with the Allies each time. This policy of non-confrontation (unless directly threatened) continues to today.
globalcementMAGAZINE February 2012
BRAZIL
19. Cimpor Cimentos do Brasil, 1.2Mt/yr.
20. Cimpor Cimentos do Brasil, 1Mt/y.r
21. Cimpor Cimentos do Brasil, 0.9Mt/yr.
22. Ciplan SA, 1.5Mt/yr.
23. CSN Cimentos, 0.83Mt/yr.
24. Empresa de Cimentos, 1.3Mt/yr.
25. Holcim Brasil, 1.2Mt/yr.
26. Holcim Brasil, 1.2Mt/yr.
27. Holcim Brasil, 1.9Mt/yr.
28. Holcim Brasil, 0.2Mt/yr.
29. InterCement.
30. Itabira Agro-Industrial, 0.9Mt/yr.
31. Itaguassu Agro-Industrial, 0.7Mt/yr.
32. Itaguarana Agro-Industrial, 1 kiln.
33. Itaituba Industria de Cimentos do Para,
0.36Mt/yr.
34. Itapessoca Agro-Industrial, 0.76Mt/yr.
35. Itapetinga Agro-Industrial, 0.2Mt/yr.
36. Itapicuru Agro-Industrial, 0.19Mt/yr.
37. Itapissuma, 0.85Mt/yr.
38. Itapui Barbalhense Industria de Cimentos.
39. Itautinga Agro-Industrial, 0.75Mt/yr.
40. Lafarge Brasil, 0.1Mt/yr.
41. Lafarge Brasil.
42. Lafarge Brasil, 0.7Mt/yr.
43. Lafarge Brasil, 0.29Mt/yr.
44. Lafarge Brasil, 1Mt/yr.
45. Lafarge Brasil.
46. Mizu Cimentos Especiais, 1.1Mt/yr,
(Planned).
47. Mizu Cimentos Especiais, 0.45Mt/yr.
48. Mizu Cimentos Especiais, 0.36Mt/yr.
49. Mizu Cimentos Especiais, 0.9Mt/yr.
50. Mizu Cimentos Especiais, 0.9Mt/yr.
51. Ricardo Brennand,1Mt/yr,
(Under construction).
52. Ricardo Brennand, 1Mt/yr,
(Under construction).
53.Votorantim Çimentos, 0.4Mt/yr
54. Votorantim Çimentos, 0.35Mt/yr.
55. Votorantim Cimentos, 0.33Mt/yr.
56. Votorantim Cimentos.
57. Votorantim Cimentos.
58. Votorantim Cimentos, 2Mt/yr.
59. Votorantim Cimentos, 2.4Mt/yr.
60. Votorantim Cimentos, 0.8Mt/yr.
61. Votorantim Cimentos, 2.6Mt/yr.
62. Votorantim Cimentos,0.66Mt/yr.
63. Votorantim Cimentos, 0.3Mt/yr.
64. Votorantim Cimentos, 0.75Mt/yr.
65. Votorantim Cimentos, 2.15Mt/yr.
66. Votorantim Cimentos.
67. Votorantim Cimentos, 0.75Mt/yr,
(Under construction).
68. Votorantim Cimentos, 2.5Mt/yr, (Estimate).
69. Votorantim Cimentos, 1.2Mt/yr.
70. Votorantim Cimentos, 1.5Mt/yr.
71. Votorantim Cimentos.
72. Votorantim Cimentos,1Mt/yr.
1000km
Guya
Surin
na
Above: List of integrated
Brazilian cement plants and
selected projects.4
Atlantic Ocean
Col
o
mb
ia
a
Venezuel
ame
Frenc
hG
uiana
1. Brennand Cimentos, 1Mt/yr.
2. Intercement, 1.5Mt/yr.
3. Intercement, 0.8Mt/yr.
4. Intercement, 2.5Mt/yr.
5. Intercement, 0.3Mt/yr.
6. Intercement, 2.6Mt/yr.
7. Intercement, 0.5Mt/yr.
8. Intercement, 0.3Mt/yr.
9. Cimentos La Union, 0.5Mt/yr.
(Commissioning in 2013).
10. CIA de Cimento Itambe, 0.6Mt/yr.
11. Cimento Apodi.
12. Cimento Rio Branco, 0.23Mt/yr.
13. Cimento Tupi.
14. Cimento Tupi, 1.5Mt/yr.
15. Cimento Tupi SA.
16. Cimpor Cimentos do Brasil, 1.3Mt/yr.
17. Cimpor Cimentos do Brasil, 1.2Mt/yr.
18. Cimpor Cimentos do Brasil, 1.2Mt/yr.
(Production from 2014).
Manaus •
67
Belém •
• Santarém
39
53
• São Luis
69
33
Imperatriz •
46
72
Per
u
Porto Velho •
63
BRAZIL
Right: Map of Brazil showing major settlements,
neighbouring countries and areas of water and
integrated cement plants.4
ivia
53
64
•
22
68
Goiãnia •
• BRASILIA
54
34
19
US$2.08tn
GDP/capita (2011 est.)1
US$11,854
Population (July 2011)1
203.4m
14.2bn barrels
Area1
8,514,877km2
3, 29
gua
y
72
Arg
e
Official oil reserves1
Par
a
55.66Mt/yr
Uru
0.77Mt/yr
20, 51
8, 9
21
17
Recife
31, 59
Curitiba •
10
70
gu
62
ay
• Salvador da Bahia
32
52
24
40
45
58
4 14
25
65
28 5
66
56
16
57
7
1
55
18 43
2
a
GDP (2010)1
• Natal
41
60
nti
n
Below: Summary data for Brazil, its economy and
cement industry.
Average plant capacity4
37 38
• Palmas
23
Integrated capacity4
35
48
Bol
Integrated plants4
63
11
36
•
26, 42
• Rio de Janeiro
12, 49
15, 23, 71
13, 47
6, 27, 44, 61
• Vitória
50
30
São Paulo
Atlantic
Ocean
• Pelotas
globalcementMAGAZINE February 2012
35
BRAZIL
Economy
Right: Number of new
cement factories commissioned in Brazil per decade
since 1930.6
The GDP/capita graph below shows the end of a
period of stagnation for the Brazilian economy
that coincided with the end of military rule in
1985. While it was caught up in the recession of
the early 1990s, Brazil boomed in the mid-1990s
before falling victim to the spread of the Asian
banking crisis in 1999 and then an economic
hangover from neighbouring Argentina’s financial crisis in 2000.
Since 2002, however, the country has entered
a period of very rapid economic growth. This has
been in part due to Brazil opening up to outside
investors. Its GDP/capita has more than tripled
in less than a decade and GDP growth continues
to be strong.5
Decade
New
factories
Introduction
The Brazilian cement industry
began at the end of the 19th century,
1940s
5
but it was not until the 1930s that
it began to properly flourish with
1950s
16
increased emphasis on industrialisa1960s
9
tion.6 Five new cement plants were
1970s
24
established in the 1930s and before
1980s
6
long the country was nearly entirely
1990s
6
self-sufficient in terms of cement. In
1936, the fledgling industry set up its
2000s
16
own association, the Brazilian Association of Portland Cement (ABCP).
In the 1940s, another five factories began production as the
14000
14000
industry grew steadily but it was the
building of the new national capital
12000
12000
in Brasilia in the 1950s that encouraged the industry (and industries in
10000
10000
general) to move inland, with the
mid-west and northern parts of Bra8000
8000
zil open to development for the first
time.6 Cement plants were among
6000
the first developments at new sites.
6000
In 1952 the National Union of the
4000
Cement Industry (SNIC) was set up.
4000
By the end of 1959 another 16 new
factories had started production.6
2000
2000
After the inauguration of Brasilia,
Brazil
entered a prolonged economic
00
crisis in the 1960s, leading to sig19191919191919191919191919191919191919202020202020202020202020
81828384858687888990919293949596
979899000102030405060708091011 nificant overcapacity in the cement
Year
industry. This situation was then
more than reversed in the 1970s,
when a record 24 new plants came
on stream, all of them dry process.6
1930s
5
36
globalcementMAGAZINE February 2012
2011
2009
2007
2005
2003
2001
1999
1997
1995
1993
1991
1989
1987
1985
1983
Below: Currently closed for
refurbishment, the Estádio
do Maracanã in Rio de Janeiro was built in 1950 at a
time when cement demand
was increasing in Brazil. The
country is now experiencing
higher cement demand than
ever before.
1981
GDP/capita (Current US$)
Right: Graph of GDP/capita
for Brazil in current US$,
1981 - 2011.5
Cement industry
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BRAZIL
The 1980s were again a time of economic instability, which caused retraction and overcapacity in the
industry. Just six new plants were commissioned in the
decade. This situation was again reversed in the 1990s,
due to new economic policies. Cement consumption
rose to an all time high and the industry began to
conduct its first investigations into the use of alternative fuels. As sustainability moved up the aganda, the
remaining wet process plants were replaced with dry
plants or shut down. Heat recovery systems and preheaters also became more common.6
In the 2000s a further 16 new cement plants were
added, additive use intensified and co-processing of
wastes increased. A civil construction crisis in the first
half of the 2000s was reversed in the second half of
the decade, with a return to spending on housing and
infrastructure projects, such as the forthcoming World
Cup and summer Olympic Games.6
Today
38
Apparent cement consumption (kg/capita)
Right: Mean cement
consumption (kg/capita) for
different regions
of Brazil (and the country as
a whole) in 2010.6
At present the Brazilian cement industry is dominated
by Votorantim Cimentos, which has 20 plants out of 72
plants and projects under construction in the country.4
The major multinationals are represented to a moderate extent, with Lafarge (six plants) and Holcim (four
plants) present throughout the country.
The Portuguese group Cimpor has six plants in the
country, but HeidelbergCement and Cemex do not
have any integrated facilities.
The rest of the industry is represented
450
by local players in the form of the multi- 450
sector construction giant Camargo 400
400
Corrêa under the brand InterCement,
350
350
and smaller producers such as Cimento
Tupi, Mizu and the steel producer CSN, a 300
300
recent cement market entrant.
online to satisfy 60Mt/yr of consumption by the end
of 2010. The new plants in the 1990s and 2000s, most
of which are highly-efficient, now form the bulk of the
Brazilian cement industry.6
Recent growth
In 2011 the Brazilian cement industry grew by 7.3%
in terms of sales compared to 2010. The country
produced around 63.5Mt of cement according to preliminary results posted by the Sindicato Nacional de
Cimento (SNIC).
When imports are added to domestic production,
cement consumption increased slightly to just over
64Mt. Consumption was triggered by growth in lower
income classes, increasing availability of credit, infrastructure works and housing programmes.
So strong was domestic demand for cement in Brazil
in 2011 that a large increase in imports was registered.
Imports of cement and clinker reached 2.2Mt between
1 January 2011 and 30 September 2011, an increase of
74% over the same period in 2010. The total value of
imported cement was US$135m between January and
September 2011, compared with just US$80m from
the same period in 2010.
Meanwhile, exports from Brazil have fallen by
a factor of 17 in the past three years, dropping from
515,000t/yr in 2008 to just 36,000t/yr in 2010. At the
end of 2011 it was estimated that the country’s production capacity was around 80Mt/yr.
250
250
Green credentials
200
200
Brazil’s cement industry is currently one of 150
150
the most advanced in the world. It had av100
erage CO2 emissions per tonne of clinker 100
as low as 580kg/t in 2009, similar to the
5050
South American average and ahead of Eu00
rope, the USA, Japan, Australia and New
North
North
MidSouth
South
Brazil
North
North Mid-west South
South
BRAZIL
east
west
east
Zealand.6 In 2010 it was revealed that the
east
east
industry also had the lowest potential for
Cartel accusations
energy savings compared to best-available equip6
ment in 2006 of any domestic cement industry.
Over the years the Brazilian cement industry has
By looking at cement consumption data for
been accused of a number of uncompetitive practices
Brazil, it is possible to speculate why the industry is
including price-fixing cartels. The most recent cartel
so well placed in terms of energy-efficiency. Firstly, ceaccusations stem from February 2007, when anti-comment consumption has increased six-fold since 1970.
petition authorities made a series of raids against
It tripled from just 9Mt/yr in 1970 to 27Mt/yr in 1979
cement producers up and down the country. They
and then did not expand greatly in the 1980s.6
had apparently been tipped off by evidence from an
This enabled consolidation of older capacity beex-Votorantim employee.7
fore a set of newer and more efficient plants came
Eight producers, including Votorantim Cimenin in the 1990s, with consumption increasing by
tos, Camargo Corrêa Cimentos (now InterCement),
16Mt/yr from 1990 to 1998, when consumption hit a
Lafarge and Holcim, which held a total of 93% of the
high of 43Mt/yr. The early 2000s financial crises redomestic market, were accused of fixing prices and
duced cement demand in Brazil to 35Mt/yr by 2003,
were threatened with fines of up to 30% of their 2005
but since then another wave of new capacity has come
revenues, the year that the accusations concerned.7
globalcementMAGAZINE February 2012
FAI.indd 1
02/02/2012 15:51
BRAZIL
Below right: Painting of
the Rociñha (Small Ranch)
favela in Rio de Janeiro by
resident ‘Mery.’ Situated on a
hillside within one kilometre
of the beach, it has better
facilities than most favelas.
Below: Many Brazilians
live in Favelas, a world away
from Brazil’s record economic growth and cement
consumption gains. Despite
increasing GDP/capita over
the past decade, the proportion of favela residents
continues to rise. In Rio de
Janeiro, it rose from 18.7%
of the city’s population in
2000 to 22% in 2010.9 The
increase in terms of favela
residents is 27%, nearly
three times the population
growth rate of other areas
of the city.
Many in the cement
industry are committed to
helping favela residents,
with a range of schemes
to combat poverty, drug
problems and crime.
40
Five years later, however, and little further action
has been taken against the companies concerned.
Much of the evidence was seized by a judge in 2007
after the producers claimed that the material held was
‘commercially sensitive.’7
In November 2011 the issue was raised again by the
Brasilia-based Secretaria de Direito Econômico (SDE),
which accused six major manufacturers of trying to
push others out of business by uncompetitive practices
ahead of World Cup and Olympic construction.8
History of cartels
An in-depth study looking at general cartel-like behaviour in Brazil conducted from the 1990s found
that normal barriers to trade such as distance had not
been in operation in the Brazilian cement industry. The
study also found that cement sales in some states were
overwhelmingly dominated by their state suppliers.7
For example, it was found that in the adjacent north
eastern states of Alagoas and Sergipe, which both had
a single producer at the time of the study, the two
producers dominated their respective states’ cement
market despite trade between the states being easy and
common. Indeed, it was observed that the producer
in Alagoas had an 83% share in that state but did not
sell in Sergipe, despite shipping to states further away.
This trend was repeated in the more southerly states
of São Paulo and Minas Gerais with a larger number
of producers.7
Due to the low barriers to transport in Brazil, a
low value product and little brand-loyalty, it was hypothesised by the authors of the study that a number
globalcementMAGAZINE February 2012
of small cartels were operating for many years prior to
the investigations in 2007. The same study interestingly
noted that the number of cement manufacturers in
Brazil declined by nearly a third from 19 to 12 between
1991 to 1999.7
Social responsibility
Many producers in the Brazilian cement industry have
social responsibility projects at national or local levels.
Votorantim Cimentos, for example, invests around
US$3m/yr in social programmes and activities, focusing on communities in the areas in which it operates
and paying special attention to youngsters aged 15-29
from low-income families.10
In 2010, the Camargo Corrêa Institute, set up by
the Camargo Corrêa Group, completed 10 years of
operation. During this time it has assisted in around
150 projects, benefitting some 83,000 people. In 2011
the group set up a US$28m fund to help young people
into the labour market.11
Others take a different approach. The relatively
small producer Cimento Tupi has run its SOS Queimados project for four years.10 The project has taught over
5000 primary school children environmental responsibility and covers awareness of preventing forest fires,
water conservation, ecosystems, the greenhouse effect
and how to treat wild/endangered animals.12
Cementing the future
As mentioned elsewhere in this review, the Brazilian
cement industry is currently on an upward trend,
with demand rising dramatically between 2003 and
BRAZIL
2011. In 2012 it is expected that demand will continue to improve as construction continues for Brazil’s
forthcoming World Cup and Olympic hosting duties
in 2014 and 2016.
The gains that can be made by the industry in
the coming years are obvious. With strong ongoing
demand and efficient production methods, Brazilian
producers are in a good position to maximise their
margins but they should also be careful not to artificially add to these by way of cartels or or illegal
market-sharing agreements.
6. Sindicato Nacional da Indústrial do Cimento,
‘Relatorio 2010,’ http://www.snic.org.br/pdf/snic-relatorio2010-11_web.pdf.
References:
8. Revill. J.; Wall Street Journal website, ‘Holcim denies
Brazil probe charges,’ 11 November 2011, http://online.
wsj.com/article/SB10001424052970204224604577031
622248424572.html.
Note: Websites accessed 24 - 26 January 2012.
1. CIA World Factbook, ‘Brazil.’ https://www.cia.gov/
library/publications/the-world-factbook/geos/br.html.
2. BBC website, ‘Brazilian economy overtakes UK’s.
says CEBR,’ 26 December 2011, http://www.bbc.co.uk/
news/business-16332115.
3. Vision of Humanity website, ‘GINI-Coefficient,’
http://www.visionofhumanity.org/gpi-data/#/2011/
gini.
4. ‘Global Cement Directory 2012,’ PRo Publications
International Ltd., Epsom, UK, October 2011.
5. World Bank Databank website, ‘GDP per capita
(current US$),’ http://data.worldbank.org/indicator/
NY.GDP.PCAP.CD.
7. Oleck, J. ‘Concrete Collusion - Economic data reveals
little competition in Brazil’s cement industry,’ October
2011, reporting on the work of; Salvo, A. ‘Trade flows
in a spatial oligopoly: Gravity fits well, but what does
it explain?’ Canadian Journal of Economics, 43(1), pp.
63-96, 2010. http://insight.kellogg.northwestern.edu/
index.php/Kellogg/article/concrete_collusion.
9. Hurrel, F. The Rio Times website. ‘Rio favela population largest in Brazil: Daily,’ 23 December 2011.
10. Votorantim Cimentos website, ‘Social,’ http://www.
vcimentos.com.br/htms-enu/Responsabilidade/Social.
htm
11. Camargo Corrêa website, ‘2010 Annual Report,’
http://rao2010.camargocorrea.com.br.
12. Cimento Tupi website, ‘Environmental and social
responsibility,’ http://www.cimentotupi.com.br/cimentotupi/Ingles/detInstitucional.php?codinstitucional=8.
Brazilian news
and case studies...
Below: Cement companies
can also benefit Brazilian
communities in ways that
they are more familiar with.
These apartment buildings
have replaced a
once-sprawling favela in
Bairro do Limão.
globalcementMAGAZINE February 2012
41
BRAZIL
KHD deal for Cimentos Liz
CSN launches into cement
August 2011: KHD Humboldt Wedag International announced in late summer 2011 that
its subsidiary Humboldt Wedag Inc received a
major order from Brazilian cement firm Cimentos Liz SA.
The company will supply the Brazilian company with equipment as well as engineering and
consulting services on site. It will also provide
services for the commissioning of Liz’s new facility, which will have a capacity of 5000t/day. The
value of the order is in the region US$120m.
Ongoing: Since the Brazilian steel-maker
Companhia Siderúrgica Nacional (CSN)
identified cement as a core business in
August 2010, the company has been preparing for the construction of three new lines at
its cement plant near to Arcos in the state of
Minas Gerais (see right).
CSN aims to secure around a 10% share
of the Brazilian cement market by the 20152016 fiscal year. By that point the industry
could be as large as 70Mt/yr.
FLSmidth signs deal with Cimpor Cimentos do Brasil
December 2011: Denmark’s FLSmidth signed a
contract for two cement projects worth a total of
US$132m with Cimpor Cimentos do Brasil Ltda
on 29 December 2011. The contract comprises
equipment for the Caxitu project, a new greenfield cement plant in Paraiba State near the town
of Joâo Pessoa and for a new kiln line project at
the Cezarina cement plant located in Goias State,
130km from Goiania.
The scope of supply for the Caxitu project
includes a circular limestone storage dome, a
longitudinal storage and reclaimer system for
raw materials and a similar system for additives, a
longitudinal storage facility for petcoke, an Atox
raw mill, a Tirax coal mill, an in-line calciner
preheater system and a Rotax kiln and SF cooler.
The scope of supply for the Cezarina project
comprises a complete pyro-processing line including an Atox raw mill, a CF silo, an in-line
calciner preheater system, a Rotax kiln and an
FLSmidth Cross-Bar cooler. FLSmidth will also
supply air pollution control systems for the two
projects, featuring the latest pyro-processing
technology for using alternative fuels.
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globalcementMAGAZINE February 2012
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BRAZIL
Below: The preparation for
the construction of line 2 at
CSN’s Arcos plant.
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38123 ITALY
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MAGAZINE
February 2012
59
38123 TRENTO, ITALY - Viale Verona, 200
Tel. +39 0461
- Fax
+39 0461
www.gambarotta.it
- gambarotta@gambarotta.it
Tel.920403
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920403
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- gambarotta@gambarotta.it
Tel. +39 0461 920403 - Fax +39 0461 933391 www.gambarotta.it - gambarotta@gambarotta.it
globalcement
BRAZIL
Above: Aumund Group is
in the process of revamping
the Itambé Cimento plant
(right). Schade Lagertechnik
recently completed work to
revamp an existing scraper
reclaimer (left).
Aumund: Rebuild project and new scraper reclaimer for Cimento Itambé
Ongoing: Cimento Itambé has awarded Aumund do
Brasil and Schade Lagertechnik GmbH a contract
for the rebuilding of a limestone storage facility.
Apart from the refurbishment of an existing scraper
reclaimer, the supply of a new bridge reclaimer forms
part of the scope of supply which is scheduled to be
employed for homogenised reclaiming of the raw material. Whilst the refurbishment of the old unit was the
first to be implemented, the new bridge reclaimer has
been in service since the beginning of 2012. New plant for Cimpor
As a first step, the Schade LaJune 2011: Cimpor announced plans
gertechnik specialists from Herne
to build a US$273m integrated clinker
fitted the existing scraper with a
and cement plant in the town of Cersecond harrow sourced from a
rado Grande, in southern Brazil’s
no-longer existent local supplier.
Paraná State, in early June 2011.
Flexible utilisation of the recently
The plant, which will have a producseparated longitudinal stockpiles
tion capacity of nearly 1.2Mt/yr, will be
supplied by a Cimpor-owned limestone
Below: A Trans Los cement tanker outside
quarry. Construction is expected to
one of Cimpor’s cement plants. The haulage
start in early 2012 and production will
company recently celebrated its
start in early 2014.
50th anniversary.
44
globalcementMAGAZINE February 2012
is made possible in this way. Prior to the rebuild, the
old scraper which was equipped with just one harrow,
had been transported with the aid of a mobile platform to one of the two former (parallel) stockpiles.
Owing to the extension of the raw material storage
totalling four separate longitudinal stockpiles, an additional bridge scraper was necessary which runs on
a 33m long track. The scraper achieves a reclaiming
capacity of 500t/hr. It is employed in parallel with the
refurbished older unit. The Schade installation and
components were designed in such a way that a 10fold and two-fold warranty have been given for the
chain and gear systems respectively.
Cimento Itambé was founded in March 1968 as
Itambé Mining Company Limited. In 1971 the company, which had in the meantime been transformed
into a limited company, received permission for the
construction of a clinker production plant with a
capacity of 1050t/day. Through the construction of a
third kiln the plant’s cement production capacity was
increased to around 1.3Mt/yr.
BRAZIL
New Fives FCB clinker line coming for Holcim
October 2011: On 31 October 2011 Fives FCB
signed a contract with Holcim (Brasil) for the supply, erection and commissioning of a new 4500t/
day clinker production line. This production line,
one of the most modern in the world, will increase
the production capacity of Holcim (Brasil) by 50%
to reach 7.9Mt/yr of cement by 2014.
The new line will be installed near an existing
line at the Barroso cement plant, in the state of
Minas Gerais, 200km from Belo Horizonte and
300km from Rio de Janeiro. The new equipment
installed upstream and downstream of the new kiln
line will be common to the two lines. Some existing
workshops will be retrofitted.
The project will cover the supply of a 4500t/day
clinker production line, from raw materials crushing to clinker silo and cement silos. Fives FCB will
supply the detailed engineering of the plant, as well
as the civil design and the technical supervision
during erection and commissioning. The company
will also supply mechanical and electrical equipment, plate works and steel structures. Production
of first clinker is expected in May 2014, 130 weeks
after the signing of the contract. The main parts of
the new plant to be supplied are:
• Primary crushing plant, 1400t/hr,
• Secondary crushing plant with two cone crushers
and a sieve for production of 900t/hr,
• Additive and petcoke crushers.
• Fives FCB will also supply a raw meal grinder
with a Horomill® 4400 and a TSV™ 7000 BF classifier to ensure a 420t/hr raw meal production. This
is the largest ever Horomill.
• 10,000t homogenising silo,
• Kiln line with i) a five-stage single string preheater
with low pressure drop cyclones, ii) a zero-NOx
precalciner, ii) a kiln (72m in length and 5m diameter), iii) a clinker grate cooler (4.4 x 27m),
iv) a petcoke grinding plant with ball mill (9.75m
long by 3.8m diameter) and, v) TSV™ 3000 MF for
44t/hr production.
• Clinker storage with a 35,000t silo,
• Cement dispatching plant including, i) a 21,000t
capacity multi-cell silo with five truck bulk loading
spouts, ii) a 10,000t capacity silo with bulk loading
system and distribution to existing packing system
and iii) a palletising machine.
To ensure its strategic development in Brazil, the
Holcim group renewed its confidence in Fives FCB.
Technical challenges and delivery times will be important aspects for Fives FCB to attest once more its
ability to design and supply complete cement plants
all over the world.
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Web site: www.scantech.com.au
Email: geoscan@scantech.com.au
• No Contact with the Belt
Multi-Detector Configuration
• Advanced Digital Electronics
• Easy Calibration
BRAZIL
Preventative maintenance pays off for InterCement at Ijaci plant
Below: The FLSmidth-built
InterCement Ijaci plant in
the north east of Brazil has
seen significant efficiency
gains since the implementation of a new preventative maintenance policy
introduced in 2008.
Source: FLSmidth.
46
Ongoing: Built and equipped by FLSmidth between
2001 and 2003, InterCement’s Ijaci plant was from
the start beset by a weak market and declining demand. In response, the plant’s management initiated
production campaigns of 20 days interspersed with
30 days of stoppage, a plan that matched market demand but made it impossible to operate equipment
optimally or fully test plant production limits.
In an effort to control operating costs, the company opted to cut production at two other facilities
and increase production at Ijaci. This gave the opportunity to test the new plant’s equipment under
more normal conditions and to optimise operation.
Continual pressure to lower costs between 2003
and 2007 led to successful adoption of alternative fuels. However, the same cost pressure also
resulted in a reduced maintenance schedule, which
meant that when demand increased in 2007 the
Ijaci plant was not in condition to reach increased
production targets.
Work to improve the plant began in 2008, when
demand began to pick up due to general economic
improvement and construction for the 2014 FIFA
World Cup and 2016 Summer Olympics. To meet
the anticipated future demand, one possibility was
to upgrade the line from 5000/day to 6000t/day. Ijaci
turned to FLSmidth for assistance in developing
a solution.
Through close collaboration, it was observed that
an immediate upgrade was not possible at the plant.
globalcementMAGAZINE February 2012
Instead, it was proposed that the plant’s first priority
should be to improve maintenance and operation to
obtain higher productivity. This allows the treatment
of root problems, rather than solutions.
Following careful implementation of the
‘Plan-Do-Check-Act’ (PDCA) business model, productivity of the plant has increased in recent years.
In 2008 it turned out 1.8Mt/yr of cement. In 2009
it was 1.95Mt and in 2010 2.04Mt was produced. In
late 2011 the company was forecasting that it would
produce 2.1Mt of cement in 2011. Thanks to disciplined predictive maintenance, InterCement’s Ijaci
plant has a run factor of 91% and produces at 104%
of projected capacity.
Close attention to predictive maintenance has
now become a part of the culture at the factory. For
every small or large deviation in the specified operation of the main equipment, an error report with an
explanation of the problem and suggestions for improvement is drawn up. This procedure is now fully
ingrained throughout the plant, from employees to
management, and has resulted in steady and significant production increases.
“The specific details are always different, but
we have one general rule that we encourage all our
customers to apply, which is to anticipate potential
problems to avoid breakdowns,” said Ulrik Kolding Hartvig, FLSmidth’s vice president of Global
Customer Services. “This is a predictive maintenance philosophy shared by both InterCement and
FLSmidth – one that we encourage many plants
worldwide to follow in order to get optimum output
from their FLSmidth equipment. The Ijaci plant is an
excellent example of this philosophy in action: Ijaci’s
management implemented a plan to help everyone
at the plant move from focusing on ‘putting out fires’
through short-term maintenance to ‘preventing
fires’ through predictive maintenance.”
BRAZIL
components for bucket elevators
Brennard exploits Nordeste
June 2011: Local business giant Ricardo
Brennand will commission a cement plant
in the Nordeste region of Brazil, an area that
is growing faster than any other part of Brazil. The Pernambuco-based group will open
the 1Mt/yr unit in Joao Pessoa in Paraiba.
Regional demand for cement has been
advancing fast and producers have been
taking up an ever bigger local stance of late.
Nordeste was self-sufficient in terms of cement supply until 2009 but, of the 12.3Mt
the region consumed in 2010, almost 9%
had to be brought in from outside. At present, the region boasts 17 cement plants.
Votorantim to build new plants
January 2012: Votorantim Industrial, Brazil’s
largest diversified industrial conglomerate, intends to use proceeds from the sale of its stake
in steelmaker Usiminas to expand its cement
output.
Chief executive Raul Calfat announced
that the US$1.34bn raised by Techint’s purchase of Votorantim’s 13.5% voting stake in
Usiminas had boosted the group’s cash holdings to US$6.5bn. This high level of cash will
allow the company to avoid borrowing at a
time when financial markets remain shut for
all but the most credit-worthy companies,
said Calfat. It also gives the company room
for funding heavy investment plans with its
own cash.
Calfat said that the group’s cement unit,
Brazil’s largest producer of the building material, would get one-third of the Usiminas stake
sale proceeds. He said that the money would
go towards the construction of four factories
by 2013.
Maerz contract in Minas Gerais
December 2011: Maerz Ofenbau AG has
been awarded a contract by Indústria de
Calcinação Ltda (ICAL) for the supply of a
600t/day Maerz PFR kiln at its Pains plant in
Minas Gerais.
The Maerz lime kiln to be built will be of
the type R4S, with a circular shaft cross-section and a capacity of 600t/day of quicklime.
Petcoke and charcoal dust will be used as the
fuels to process the limestone, which will be
fed at a diameter of 50-120mm.
Maerz’s scope of supply includes a firing
system for solid fuels, special refractory materials and spare parts. It will also delegate
experienced personnel to assist ICAL during
erection and commissioning of the plant.
globalcementMAGAZINE
47
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Free of charge engineering proposals for new
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BRAZIL
Background: Fish-eye
view of Haver & Boecker
Roto-Packer (left), Beumer
palletising installation
(centre) and dispatch area.
Haver & Boecker supply Votorantim Imbituba
Haver & Boecker Latinoamericana (HBL) recently supplied equipment to Votorantim’s Imbituba plant in the state of Santa Catarina.
This was the first project to be supplied by HBL featuring a compact concept and low installation cost. The installation included
cement storage and a packaging and dispatch system. The scope
of supply included:
• Conceptual and detailed design of the entire plant dispatch,
• A multi-chamber cement silo with four chambers,
• A truck loading system,
• A complete high capacity Roto-Packer line, model 12 RSE(U)
with a capacity of 3600bags/hr for 50kg bags,
• A high-capacity Beumer palletiser,
• A complete automation system with control panel and superv-
-isory software.
HBL is a Brazilian company founded in 1974 and is a subsidiary
of Haver & Boecker Drahtweberei und Maschinenfabrik, headquartered in Oelde, Westphalia, Germany. It boasts a team of
140 specialists offering comprehensive and customised solutions
designed to fulfil the specific needs of most markets. In 2004 the
company was awarded ISO 9001:2000 certification.
Below: Close-up of the
new Haver & Boecker
Roto-Packer.
48
globalcementMAGAZINE February 2012
Background: Votorantim
Cimentos’ Imbituba plant.
10-11 MAY 2012
gl bal
cemtrader
CONFERENCE • EXHIBITION • BUSINESS •NETWORKING
London, UK
www.CemTrader.com
SCM, Coal & Petcoke
Markets, Shipping, Prices
A meeting for suppliers, shippers and users of supplementary cementitious materials - SCM (fly-ash and
other coal combustion by-products, granulated blast furnace slag (GBFS), silica fume, natural pozzolans)
and of coal and petcoke for the cement and lime industry.
Focusing on supply and
demand trends in the markets,
shipping and freight cost
trends and contracting and
pricing trends. Including
networking and business
opportunities.
gl bal
Organised by:
cement
MAGAZINE
14-15 JUNE 2012
gl bal
cemfinance
CONFERENCE • EXHIBITION • BUSINESS •NETWORKING
London, UK
www.CemFinance.com
Finance & projects
Trends, risks, opportunities
The Global CemFinance Conference is a unique event for the financial and project needs of the global
cement industry. The Global CemFinance Conference will examine global cement industry trends, will
address the finance needs of cement companies and cement plant projects world-wide in these tough
economic times, as well as
focusing on the vital factors
that can make the difference
between project calamity and
triumph. If you are involved
in cement finance, you should
attend CemFinance!
£395 Early bird registration
Ends 29 February 2012
gl bal
Organised by:
cement
MAGAZINE
BRAZIL
An introduction to Magnesita SA - An international Brazilian company
Right: Magnesita has
grown from a small Brazilian
company to a global
refractory giant.
Below: Franz Struzl, the
executive director of RHI
AG. The refractory specialist
is settng up a new plant
in Brazil.
50
Magnesita SA was created in 1939, after the discovery of magnesite deposits in Brumado in the state
of Bahia. Its industrial activities started in 1944 in
Contagem, State of Minas Gerais (MG), with the
production of alumina and silica-alumina refractory
products. Since 1948 it has also produced magnesia
and magnesia-chrome products.
Starting from 1960, Magnesita acquired and
founded companies for production of inputs for
ingot teeming, refractory concrete production, and
electro-cast grain production among other items.
These companies use raw material obtained in
Brumado for production of basic refractory products.
The 1960s also marked the opening of the company
capital, with the trading of its shares in the São Paulo
Stock Exchange.
In the 1990s, a terminal port was inaugurated
in Aratu, Bahia, from which Magnesita now exports sintered magnesia. In the same period, the
marketing
department
was restructured with the
intention of opening up
the cement industry. A new
business model was started,
particularly focusing on
the iron and steel sector,
transforming
Magnesita
into a solution supplier that
operates very close to the
customer, with customised
products and services.
In September 2007,
Rpar Holding SA acquired
Magnesita and in February 2008, by means of the
signature of a shareholders’ agreement, a corporate
restructuring was approved involving Rpar Holding,
Partimag SA and Magnesita. The objective of the
restructuring was to group the three companies into
a single open company, with a simplified structure,
aligning and consolidating the interests of all group
shareholders. The new organization resulted in the
creation of Magnesita Refratários SA and its listing
in the New Market of the São Paulo Stock Exchange
in April 2008.
On 25 April 2008, Magnesita signed a contract
for acquisition of all representative shares of the corporate capital of Insider, Insumos Refratários para
Siderurgia Ltda, a company producing high technology monolithic and pre-shaped refractory products,
with its headquarters in Coronel Fabriciano, Minas
Gerais. In November 2008, Magnesita Refratários
acquired LWB Refractories, a German company that
was the leader in the market of basic refractory and
dolomitic products of high added value.
RHI begins construction of its first plant in Brazil
February 2012: RHI AG, the global refractory
products leader for the steel, cement and glass sectors, has begun to build its first factory in Brazil,
located in the Industrial District of Queimados,
globalcementMAGAZINE February 2012
part of the Rio de Janeiro metropolitan region.
Investment for its first phase will be US$111m
and the factory will create 200 direct and about 400
indirect jobs. The start of production is planned for
the third quarter of 2013 and the plant will occupy 120,000m2.
It is expected that the new plant’s production
capacity will be 60,000t/yr. Of this total, more
than half will be for the domestic market and the
rest shipped throughout Latin America.
In 2010, 7% of RHI Group’s sales were in
South America and the intention is to increase
this percentage significantly. The company also
plans to expand its capacities in a second phase,
also creating more jobs.
The image shows Franz Struzl, executive
president at RHI AG.
BRAZIL
Introducing FAI
Fundição de Aço Inox Ltda (FAI) is a metalcasting specialist located in the Arujá area of
São Paulo in São Paulo State. It has a capacity
for 2600t/yr and specialises in static and centrifugal castings for corrosion, abrasion and
heat-resistant applications. Its products are sold
as cast, rough machined or machined to print,
assembled and tested.
For the cement industry
FAI supplies cooler grids,
cooler side plates, nose
ring wear plates, cooler
hammers, cooler discharge
chutes, kiln tyres, rings and
rollers, cyclone parts, conveyor parts, wear rings and
nose rings. It has references
from all major Brazilian
cement producers, namely,
Votorantim Cimentos, Lafarge, Holcim (Brasil),
Camargo Corrêa,
Itaú, Tupi, Cimento
Itambé, Cimpor do
Brasil and Nassau.
It has also supplied
equipment to Juan
Minetti and Loma
Negra, both of which are located in Argentina.
An FAI nose ring (above left) and an FAI
torch burner/nozzle (above right) are shown.
Largest ever vertical roller mill for
cement goes to Holcim Brasil
November 2011: In November 2011 Holcim (Brasil)
SA awarded the Spanish engineering, procurement
and construction (EPC) leader Cemengal a contract
to supply a state-of-the-art cement grinding station
to increase the capacity of its Barroso works in the
Brazilian state of Minas Gerais. Acting as main contractor for this grinding project, Cemengal ordered
an MVR 6700 C-6 roller mill from Gebr. Pfeiffer SE,
which with a cement production capacity of up to
450t/hr, will be the world’s largest cement mill.
This mill, the largest ever vertical roller mill
(VRM) for cement will be used to grind various
blended cement qualities with clinker portions of up
to 90% and slag portions of up to 65%, to product
fineness degrees of 4000-4800cm²/g according to
Blaine. A MultiDrive® with six single drives, each
of 1920kW, will be used to drive it. This innovative
drive concept will have an available total drive power
of 11,500kW. The individual drives will be synchronised by frequency converters, which will also allow
the speed to be adapted according to the different
product qualities. This amount of power cannot be
implemented with conventional drive systems for
vertical roller mills.
Apart from the complete VRM, this contract will
see Gebr. Pfeiffer supply a hot gas generator, which
is intended to provide heat when materials of high
moisture content are ground and/or clinker cooler
exhaust gases are not available. As main contractor for the project, Cemengal will be in charge of
the design and supply of all mechanical, electrical and process control equipment, except for the
VRM. Moreover, Cemengal’s scope will include
steel structures and process design as well as
erection, supervision and commissioning.
Overall planning will be done by Cemengal in
close co-operation with Gebr. Pfeiffer and the
customer. The mill is scheduled to be commissioned at Holcim (Brasil) SA in 2013.
Below: In November 2011
Gebr. Pfeiffer SE announced
that it would supply the
largest ever vertical
roller mill for cement to
Holcim (Brasil) .
globalcementMAGAZINE February 2012
51