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News from China

World Cement,

China Runji Cement Inc.
China Runji Cement Inc, with its headquarters in Anhui Province, produces 1.1 million tpa of cement. It has just announced that following the installation of its waste heat power generator in October 2009, its electricity cost has been reduced by RMB 4.5 million (US$ 650 000). The power generator is able to recycle the waste heat obtained from the cement manufacturing process and to date has produced 9 million kWh of electricity to support the company’s two production lines. With a designed capacity of 70 million kWh per year, it reached 84% of its designed production capacity within two months of starting up. Shouren Zhao, Chairman and CEO of China Runji, stated: 'Our low temperature waste heat power generator is capable of covering 40% of electricity demand of our two existing lines, and can avoid releasing excessive heat to the environment.'

Taiwan Cement Corp
Following the acquisition last year of Prosperity Minerals Holding Ltd, Taiwan’s leading cement manufacturer, Taiwan Cement Corporation will start plans to build new plants in China as the Guandong provincial government begins to shut down old plants with 5 million t capacity by the end of the year. Total decommissioned capacity will be 30 million t by 2012. The Fujian provincial government has also announced the closing down of vertical kilns with a combined capacity of 17 million t by the end of 2010. As of the end of last year only 48% of the cement plants in Fujian province were new in terms of production capacity.

Another announcement by a Chinese news agency reports that Kawasaki Heavy Industries (KHI) and Daiki Ataka Engineering Co are working through a joint venture with a local cement manufacturer to win part of an order for an Anhui Province wastewater treatment facility that will be able to process 140 000 tpd of sewage. If KHI wins the bid, it will be worth 1-2 billion yen (US$ 11.04 – 22.09 million). The company is also looking to take part in building sewage facilities in other parts of China, and is considering broadening the scope of business to include marketing the processed dried sludge as a fuel for cement plants.

Two important cement industry events in China are scheduled for March. On 22-29 March, International Cement Week 2010 will take place in Shanghai, followed by Cementtech 2010, the 11th China International Cement Industry Exhibition and Conference on 31 March – 2 April in Beijing. China’s cement industry, stimulated by a US$ 586 billion package, grew rapidly in 2009, but overcapacity is targeted as a main regulation subject by the government. At the same time the industry is tackling the arduous task of eliminating outdated production facilities. These will be the issues that will be discussed during both conferences.

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