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saudi arabian rcc cement production line

arabian cement company puts order in for large efficiency upgrade with flsmidth

arabian cement company puts order in for large efficiency upgrade with flsmidth

In a hot Saudi Arabian cement market, keeping production costs down is a critical competitive factor Saudi-based, Arabian Cement Company is doing exactly that with a new efficiency upgrade, which will improve the operation of the existing line with less fuel and power consumption.

The Saudi Arabian cement market is highly competitive with increasing demand, we are therefore constantly looking at ways to improve the efficiency at our Rabigh site, explains Dr. Badr Osama Johar, CEO at Arabian Cement Company. With FLSmidth having provided the original line, they were the obvious candidate for the upgrade we wanted a trusted partner, who knows the ins and outs of the plant and are able to secure the success of the upgrade, Johar adds.

FLSmidth is pleased to receive the order from Arabian Cement Company that will take our team back to familiar grounds in Rabigh and to an FLSmidth Kiln delivered back in 2008. The order reaffirms our strong and long-lasting relationship with ACC, says Omar Rabia, Sales Manager of Upgrade Sales at FLSmidth. The upgrade once again underlines our position as the preferred supplier of sustainable and productivity-enhancing solutions, Omar concludes.

FLSmidth provides sustainable productivity to the global mining and cement industries. We deliver market-leading engineering, equipment and service solutions that enable our customers to improve performance, drive down costs and reduce environmental impact. Our operations span the globe and we are close to 10,700 employees, present in more than 60 countries. In 2020, FLSmidth generated revenue of DKK 16.4 billion. MissionZero is our sustainability ambition towards zero emissions in mining and cement by 2030.

FLSmidth provides sustainable productivity to the global mining and cement industries. We deliver market-leading engineering, equipment and service solutions that enable our customers to improve performance, drive down costs and reduce environmental impact. Our operations span the globe and we are close to 10,200 employees, present in more than 60 countries. In 2020, FLSmidth generated revenue of DKK 16.4 billion. MissionZero is our sustainability ambition towards zero emissions in mining and cement by 2030.

grey/white production: an achievable ambition

grey/white production: an achievable ambition

After its commissioning in 2007, Riyadh Cement Company (RCC) quickly began to meet the growing demand for grey cement in the domestic Saudi Arabian and neighbouring markets. A second grey line was commissioned in 2010, increasing the combined production capacity to 11,000 tonnes per day.

In 2011, RCC became a subsidiary of Saudi White Cement Company. As market demand for white cement was increasing, RCC sought ways to increase its flexibility by switching from grey to white production. Saudi White Cement Company was already a renowned producer of white cement and sufficient raw materials were readily accessible to the plant.

The project team first considered constructing a new line specifically for white cement. However, following discussions with FLSmidth, it was quickly determined that converting one of the existing grey lines to produce white cement was a highly economical option.

FLSmidth has developed a concept for modifying the existing equipment typically used in grey cement production in a cost-efficient way so that it can be used for dual production of white and grey cement. In recent years, FLSmidth has conducted several such conversions, including for Adana Cement in Turkey.

Before determining on the proposed solution, RCC representatives visited the Turkish site to observe the plant in operation. This visit, along with FLSmidths track record with RCC, led to the decision to convert the existing grey cement line to dual production, instead of building a completely new production line. Early in the project, testing of the raw materials was conducted at FLSmidths Research and Development facility in Denmark to ensure guarantees in whiteness and quality would be met.

Mr Sultan Al Dhuwaihi says: We have a good relationship with FLSmidth as they have supplied us with various equipment and services, through the years, so we had a good impression of their ability to deliver. It is advantageous to have an equipment supplier with proven know-how about the technology for white cement production. In fact, nobody else has the same high level of knowhow. Omar Rabia, Sales Manager at FLSmidth, explains that the aim was to achieve a payback of one year or less.

The main part of the project involves installing an FLSmidth Duoflex burner inside the kiln with quenching to take place inside the kiln tube and implementing relatively minor changes to the existing preheater.

A considerable amount of existing equipment is being reused, including the oil handling equipment, clinker cooler, raw material storage system and raw mill grinding equipment. With the proposed modifications, the kiln is expected to produce a minimum of 2,000 tpd white clinker with a maximum heat consumption of 1,350 kcal/ kg clinker.

With a mid-2018 target for commissioning, the engineering phase of the project has been completed, as well as most of the purchasing, with final delivery expected in the beginning of 2018. The construction partner for the project is the Turkish company, Partner Teknik.

Mr Sultan Al Dhuwaihi comments: The process so far has been good. We have had good design meetings and have received almost all engineering documentation, so we are looking forward to the mobilisation phase. I am confident we can rely on FLSmidths capabilities and tools as well as their know-how and experience so that we can quickly achieve our ambition of having full capacity of white cement in 2018.

FLSmidth provides sustainable productivity to the global mining and cement industries. We deliver market-leading engineering, equipment and service solutions that enable our customers to improve performance, drive down costs and reduce environmental impact. Our operations span the globe and we are close to 10,200 employees, present in more than 60 countries. In 2020, FLSmidth generated revenue of DKK 16.4 billion. MissionZero is our sustainability ambition towards zero emissions in mining and cement by 2030.

saudi arabia - cement industry news from global cement

saudi arabia - cement industry news from global cement

Egypt: Saudi Arabian-based Mohammed Hassan Al Naqool Sons has started pilot production at its Cement Industries subsidiary based in El Alamein. The project has an investment of around US$5m. It will manufacture cement-based products, including blocks and concrete. Commercial production at the site is expected to start in the third quarter of 2021.

Saudi Arabia: Southern Province Cement Company plans to upgrade its Jizan cement plant in Abha with a new 10,000t/day clinker production line to replace the plants existing clinker lines. The producer plans to launch the project in mid-late 2021.

Saudi Arabia: Arabian Cement has placed an order with Denmark-based FLSmidth for the supply of equipment for an upgrade of its Rabigh cement plant. The order includes new DDX top cyclones, a quenching chamber and an ABC Cooler Inlet. Installation and commissioning is expected to be during the fourth quarter of 2021.

Arabian Cements chief executive officer Badr Osama Johar said, With FLSmidth having provided the original line, they were the obvious candidate for the upgrade - we wanted a trusted partner who knows the ins and outs of the plant and is able to secure the success of the upgrade. The producer previously engaged the company for the supply of its Rabigh plants kiln in 2008.

Saudi Arabia: Yamama Cement plans to transfer and install the seventh production line from its old plant in the south of Riyadh to the new plants location in Northern Halal in Al-Kharj governorate of the Riyadh region. The line has a clinker production capacity of 10,000t/day. Following the completion of the move by the end of 2024 the new plant will have a capacity of 30,000t/day. The cement producer said that cost of the move would be funded from the available company's resources.

Saudi Arabia: Yanbu Cement says that a two months modernisation project on Line 4 at its integrated Yanbu plant that was first reported in mid-February 2021 has been delayed. This has been caused by a hold up in receiving certain spare parts. The cement producer said that the financial impact would be limited to the increase in production costs only since the start of the shutdown date. It also stressed that sales would not be affected by the stoppage due to its existing clinker stocks.

US: Coherent Market Insights (CMI) has forecast in a recent market report that the global cement grinding aids market will grow by 55% to US$5.02bn in 2027 from US$3.23bn in 2019. Factors driving market growth include increased cement industry concerns about energy consumption reduction and product fineness. A major driver is the Asia Pacific market, which accounted for 34% of value in 2019. In North America, US residential construction is forecast to continue its five-year increase. CMI predicted that projects in Saudi Arabia will also drive Middle Eastern market growth. It added that the Covid-19 outbreak has caused a drastic short-term decrease in demand.

Many Saudi Arabian cement producers have reported increased annual sales and profits in recent weeks. Southern Province Cements sales revenue rose by 27% year-on-year to US$440m in 2020 from US$347m in 2019. Net Profit after zakat and tax increased to US$162m from US$123m. Other producers enjoyed similar boosts. The reason can be seen in the countrys domestic cement sales. They rose by 21% year-on-year to 51Mt in 2020 from 42Mt in 2019. After a promising start to the year the coronavirus pandemic hit local production hard in the second quarter of 2020. However, it nearly doubled year-on-year in June 2020 and kept up the pace thereafter.

Graph 1 above puts the cement sales in 2020 into context over the last decade. Sales hit a high in 2015 but then started to wane as infrastructure spending dried up due to lower oil prices and decreased government spending. A ban on exporting cement was subsequently relaxed but the general market appeared to adapt to the new situation. This changed significantly in 2020 with analysts attributing the turnaround to programs organised by the Ministry of Housing. This growth has carried into 2021 with NCB Capital forecasting an increase of 3.5% in local cement sales in 2021 due to the ongoing housing programs, the countrys so-called Giga projects and investment by its sovereign wealth fund, the Public Investment Fund (PIF), as part of its 2021 - 2025 strategy. They reported that demand created by the countrys large-scale projects began to be felt along the supply chain in the fourth quarter of 2020 and associated contracts have started to be issued.

To give an example of the scale of some of these schemes, one of the proposed giga projects is to build a new city called Neom from scratch near the Red Sea coast. The resulting conurbation is intended to showcase new technologies and diversify the Saudi Arabian economy away from hydrocarbons. It has a price tag of US$500bn. An airport was built in 2019 and a next step was announced in January 2021, introducing a 160km linear city without roads called The Line. Doubtless it will require lots of cement to realise the dream in whatever forms it happens to end up taking.

The wider picture here is that global oil prices hit a low in April 2020 as coronavirus lockdowns triggered a worldwide drop in demand although they then started to recover. The International Monetary Fund (IMF) estimates that Saudi Arabias gross domestic product fell by just under 4% in 2020. In response the PIF has upped its investment in the local economy including in the Giga projects like Neom. There has been scepticism internationally about whether these projects will progress any further beyond press releases and actually get built. However, the cement producers financial results, cement sales figures and reporting from analysts like NCB Capital show that some investment is happening and its having results. The sector still faces a battle against overcapacity. It had a production utilisation rate of just under 70% despite the increase in cement production in 2020. Yet cement producers in Saudi Arabia have done well. While the Saudi Arabian government continues to spend on infrastructure in order to rebalance its economy this looks set to continue.

Saudi Arabia: NCB Capital has predicted a growth in Saudi cement sales of 4% year-on-year to 52.8Mt in 2021. The investment and analyst division of National Commercial Bank described the sectors outlook as positive, due to on-going housing programmes and the Public Investment Funds 2021 2025 strategy, as well as a pick-up in infrastructure projects.

Saudi Arabia: Saudi Readymix has received its certification from the American Concrete Institute (ACI) to provide ACI certified courses. The courses form a minimum qualification for concrete industry workers.

Saudi Readymixs Commercial and Technical Director, Chris Leptokaridis said, We are extremely proud of our research and development facility, its important role as a company knowledge hub and testing ground of all our future materials. It is the most advanced and well-equipped research facility of any readymix producer in the Middle East.

Saudi Arabia: Yanbu Cement has started a two months modernisation project on Line 4 at its integrated Yanbu plant. The company said that dispatches would not be affected by the stoppage due to sufficient clinker stocks. Line 5, which represents 60% of the company's total capacity at the plant, will continue production at full capacity.

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