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ICRQuarterlyInternational Cement Review December 2003

The Global White Cement Repor

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The Global White Cement Report

2003

The Global

White Cement

Report 2003

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The publishers would like to acknowledge, with

grateful thanks, all those individuals, companies

and trade associations who helped in providing

information, data and commentary in the

compilation of this report. This publication has been

compiled by the staff of International Cement

Review.

Photo credits

While maps, graphs and part of the photos were

supplied by in-house graphic services, we would like

to thank the following companies for supplying

below photographs : Aalborg Portland

photographs on p. 5, 41, 42, 54, 62, 75, 77, 78, 81.

Cementa AB photograph on p. 52. Cementos del

Nare photographs on p. 5, 34, 49, 54, 55. Cemex

photograph on p. 7, 18, 22, 25, 27, 32, 36, 58,

86. Lehigh Cement Co photographs on p. 55, 60.

Although every effort has been made to ensure the

accuracy and completeness of this publication, the

publishers do not accept any responsibility for any

errors or omissions. Any views expressed are those of

the publishers and their correspondents.

The Global White Cement Report its text, maps and graphs

must not be reproduced, photocopied, stored or conveyed by

any means of mechanical or electronic device without prior

written consent from Tradeship Publications Ltd.

Acknowledgements


2003

The Global White Cement Report is published by

Tradeship Publications LtdOld Kings Head Court, 15 High Street, Dorking,

Surrey, RH4 1AR, UK

Tel. +44 (0) 1306 740363

Fax +44 (0) 1306 740660

E-mail: [email protected]

Website: www.CemNet.com

Managing Editor David Hargreaves

Editor Chris Blasdale

Technical Editor Dr Michael Clark

Production Editor Muriel Bal

Design Storm Creative Partnership

Advertising Gary Morton

Subscriptions Susan Hargreaves

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Contents

Introduction 7

Executive summary 9

World production base 13

The global white cement production base has a capacity of

17.5Mta and an annual output of 12Mt. This chapter identifies key

producing countries and provides their output and capacity figures.

World producers 39

A third of global production is manufactured by five producers. The

report focuses on the Big Five and also outlines other important

players.

World consumption 49

Although world demand is less than one per cent of per capita grey

cement consumption, white cement is a key niche market. Sales are

particularly strong in Europe and China.

Marketing & promotion 61

A key constituent in a wide range of applications, white cement is

marketed and promoted with increasing effectiveness.

Trading 65

A quarter of white cement is traded across the globe. This chapter

investigates the reasons for high trading volume and also looks at

competition and pricing trends.

Global industry outlook 69

The outlook for the international white cement industry is generally

positive as the world looks forward to increasing demand.

White cement technology 71

Dr Michael Clark outlines the specific technological requirements in

the various stages of white cement production.

Appendices 87

Appendix I Production base by region and country.

Appendix II Consumption by region and country.

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Introduction

This is the first report produced by International Cement

Review (ICR) on white cement, a sector which has

previously been relatively undocumented, apart from a

few articles and conference papers. Why, though, the interest

in the white cement sector which is generally regarded as a

niche market only, and where worldwide production at 12Mt

is less than total cement consumption in a country of the size

of the UK? The answer possibly lies in the fact that usage of

white cement is at the forefront of the visual representation of

concrete in the built world, and as such is important to the

cement and concrete sectors in terms of promoting all of its

products and applications. Additionally, there are interesting

comparisons to be drawn of the white cement sector compared

to grey cement, which is 150 times larger in volume terms, in

relation to consumption patterns and company participation.

This report looks at many of the key points of interest

within the white cement sector including:

a review of world production

analysis of global, regional and national consumption levels

the patterns of trade, including major markets and suppliers

corporate analysis of major companies within the sector

detailing of white cement applications, and marketing and

promotional challenges

technical considerations in terms of production

an outlook on future trends within the sector

The report does not include assessments of the availability

and relative scarcity of suitable limestone reserves for white

cement production globally. Additionally, it has not been

possible to compare all existing production units in terms of

quality and whiteness of product. It should also be stated that

while some companies and industry associations were willing to

divulge basic market information, many others were not

prepared to do so. Therefore some of the data contained within

the report is produced from as informed as possible estimates.

Chris Blasdale

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The global white cement industry is a small segment of the overall cementitious sector. With

estimated output in 2002 of around 12Mt it represents by volume less than one per cent of

the worldwide grey cement sector. Nevertheless, for the cement/concrete participants in the

construction materials sector, white cement represents one of the most effective visible means

of promoting their product in applications against competing materials. While considered

purely a niche market by many, for the companies involved in white cement manufacture, its

importance can range from being the sole or major business activity of that company (eg

Federal White Cement of Canada) through to being merely an interesting adjunct to

mainstream activities (Lafarge is a top-5 player in white cement, but this activity is estimated

to represent directly less than one per cent of its total turnover).

Executive summary

The white cement industry is experiencing

considerable change. The overall market has

grown by five to six per cent since 1994, a

growth rate ahead of grey cement. This has resulted

in major capacity additions in a relative sense. These

additions have generally been founded on highly

efficient plants targeting both domestic and

significant export sales. A profile of the industry

would be one of an increasingly global nature, with

over 3Mt being traded internationally. In terms of

the major players, both Aalborg White and imsa, to

whom white cement represents a major part of their

overall business, have been at the forefront of this

globalism, extending their influence in certain

regions. Overall the industry has become morecompetitive, and this has resulted in recent years

with lower prices in many markets. An apparent

anomaly remains, however, in that in some

countries, prices have remained high and supply has

continued to take place from relatively high cost

domestic producers. Across the world this can be put

down to a variety of factors, including potentially

high handling and distribution costs for importers,

the desire of many consumers of white cement forconsistency of product, and control of existing

producers over channels of distribution. This

situation becomes more understandable given that

this report has only identified 76 white cement

plants globally in 45 different countries (excluding

China).

If growth in demand for white cement continues

at its current rate for the next 10 years, then a

further 7.5 to 9.5Mt will be consumed in 2011

compared to 2002. For this to occur then, existing

high consuming regions will need to more than

sustain current levels of demand, and lower

consuming regions will need to grow significantly.

The drivers of demand for white cement are not

necessarily of similar weighting as for grey cement. It

is less of a commodity product, and therefore

demand could be advanced by positive perceptions

in terms of fashion/aesthetics and effective

promotion of its applications.

Headline comments from the report are as

follows:

Production base

Total global production of white cement in 2002 isestimated at just below 12Mt with indicated capacity

levels of 17.5Mt.

Europe is both the largest producer (28 per cent of

global output) and has the highest capacity

utilisation of all the regions.

China is already responsible for an estimated 23

per cent of global white cement output, although

definitions of what represents white cement differ.

The Mediterranean Basin (from North Africa

around to Greece) is responsible for an estimated 14

per cent of global output and the relative importance

of this region is set to grow.

The Middle East has more than doubled its white

cement capacity (currently around 2.1Mta) in the

last 10 years.

Asia, excluding China, is responsible for just over

10 per cent of global output, and has mixed

prospects.

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Latin America, with the exception of Mexico,

forms a relatively insignificant part of the globalwhite cement production base.

In North America, the US production base remains

old, and only represents 25 per cent of domestic

demand.

The top-5 producing nations are: China, Spain,

Turkey, Mexico and Denmark markedly different

from grey cement.

The top-10 producers are responsible for 49 per

cent of global white cement output from 45 per centof global capacity. Excluding China, these shares

would respectively be 64 per cent and 60 per cent.

The top-5 global grey cement players are all in the

top-10 of white producers.

Major capacity additions between 1995 and 2003

are estimated at 3.5Mt, excluding China.

Consumption

Consumption of white cement in 2002 is

estimated to be 12Mt and 9.4Mt excluding China.

This represents an average per capita usage of only

1.9kg, and is less than one per cent (0.7 per cent) of

grey cement production worldwide.

Europe is estimated to be the largest white cement

consuming region representing 27 per cent of the

global market considerable disparities on a per

capita basis exist across the region.

The Mediterranean Basin is characterised by high

consumption levels of white cement. The region is

responsible for nearly 12 per cent of global output

and per capita consumption is estimated at 6kg

annually in 2002, and 1.3 per cent of grey cement

consumption.

The Middle East is estimated to be responsible for

just over 10 per cent of global white cement

demand. Of all of the regions, it has the highest per

capita usage of 7.3kg annually, with the Gulf states

in particular showing a high intensity of usage.

Africa, excluding Mediterranean North African

countries, is a very low consumer of white cement,

representing only just over one per cent of the global

market.

China, the largest single market globally is

responsible for 68 per cent of Asian white cement

consumption, fairly in line with grey cement

proportions. The white cement market in China is

estimated to be around 2.6Mt, with a per capitaconsumption of 2kg annually.

The rest of Asia is estimated to have consumed

around 1.23Mt in 2002. The average per capita

consumption over the region is considerably lower

than China at 0.8kg annually.

Latin America consumes around seven per cent of

global cement output, with Mexico as the leading

nation.

Estimated consumption in North America in 2002was around 1.3Mt, 11 per cent of global demand.

Per capita consumption in the region is 4.1kg

annually, just over double the global average.

The five largest white cement consuming nations

are China, Spain, USA, France and India.

Leading producers The top-5 producers are estimated to be Cemex,

Aalborg White, Lafarge, Italcementi and imsa.

Cemex with an estimated 11 per cent global

market share in 2002 has benefited from strong

market positions and demand conditions in Spain,

Mexico and USA. Its market leadership is set to

come under challenge.

Aalborg White with a seven per cent market share

is currently No 2, but with recent additions has

higher capacity than Cemex. White cement

represents one of two core activities for its parent,

FLS Industries, and global market leadership is an

expressed objective.

Lafarge with a five per cent market share is

currently trying to embrace the increased globalism

of the white cement market; as the worlds largest

cement company they should not be under-

estimated in terms of future initiatives.

Italcementi is currently a European player only in

white cement it accounts for five per cent of the

global market. Like some other companies, they

appear to have heightened interest in white cement,

as evidenced by a recent small white cement

investment in Bulgaria.

imsa also has a similar market share (around five

per cent), but its profile is very different. With over

1Mta capacity at one location, it has been a major

influence on recent competitive changes in the

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sector. It too has declared aspirations to be No 1,

although whether this is possible from oneproduction location is questionable.

Other leading white cement companies include

Holcim, which has recently centralised its white

cement activities and has just announced sizeable

investments in Romania and is now even looking to

extend its influence beyond Europe. Finally,

HeidelbergCement, another significant force,

although its white cement strategy is more

ambivalent at present.

Trading In excess of 3Mt of white cement was traded

outside of the country where it was produced in

2002. This represents over 25 per cent (32 per cent

excluding China) of the global white cement. As a

comparison, grey cement traded globally is around

seven per cent of the overall market.

Leading trading companies, in order are Aalborg

White, Cemex, imsa, RAK White,

HeidelbergCement and Federal.

Main import markets are USA, Spain, Germany,

Algeria, Saudi Arabia, Israel and UK.

Increased trading levels and the number of

meaningful suppliers has led to increased

competition. This has impacted on prices since 2000

in particular. Achieved prices in export markets have

halved in some cases, although this has to be

examined on a specific market basis.

Marketing White cement is used in many external and visual

applications of concrete and mortars, etc the

challenge is for the industry to increase usage in a

range of current and new applications.

Improved promotion of white cement is underway,

with Aalborg White and Holcim White two of the

noticeable companies. More needs to be done

particularly in currently low/medium consuming

countries and other countries where there is not a

local producer. Global industry initiatives whilst

desirable are probably not practical.

Outlook If the recent growth of demand estimated at five

to six per cent annually continues for the next 10

years, then demand in 2012 will be between 19.5 to21.5Mta an increase of 7.5 to 9.5Mt above

existing levels.

Should that be the case, then capacity additions of

the order of 7-10Mta would be required, expected

mainly at existing production facilities, with any new

production facilities where they do occur, most likely

to be in Asia, North Africa, Middle East and Latin

America.

The proportion of white cement traded is likely torise further given the above scenario. A further boost

to this view would be given by increased

concentration of ownership by the existing larger

producers.

The previously low level of corporate activity in

terms of mergers and acquisitions (M&A) or

marketing agreements within white cement is

expected to increase.

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Total global production of white cement in 2002 is estimated to be just below 12Mt with

indicated capacity levels of 17.5Mt. For the purposes of these estimates, product is deemed

white cement if that is how it is described in the specific market where it is produced. For

instance, off-white cement is described as such in Australia and therefore is not included,

whereas considerable tonnages of perhaps questionable material from China are included. In

research carried out it became clear that it would be untenable to create a cut-off point (eg

whiteness) that could be applied across the global sector.

World production base

The research has identified 76 white cement

plants globally excluding China. These plants

are located in 45 different countries, and are

responsible for an estimated output of 9.3Mt in

2002 from a capacity exceeding 13Mt. In China,

output of 1.5Mt of white cement is estimated from

40 identified plants and a further 70 small

unspecified plants. An additional 1.2Mt output of

white cement from unlicensed plants is also

estimated in China.

Global production of just below 12Mt represents

an average per capita usage of only 1.9kg, and is

less than one per cent (0.7 per cent) of grey cement

production worldwide.

Regional analysis of the production base is

shown in Table 1 Estimated white cement

production by region, 2002.

Europe is both the largest producer (28 per cent

of global output) and has the highest capacity

utilisation of all the regions. It has a long established

production base, which generally would indicate

relatively high cost structures. In Western Europe,

most of the capital investment recently has been in

terms of efficiencies, environmental improvements

and small-scale capacity improvements. Aalborg

White is the exception where a 200,000tpa capacity

increase has been carried out in 2003. In Eastern

Europe, the challenge appears to be to improve

production facilities and build up regional output

that is low. Italcementi commenced production of

white cement at its Devnya plant in Bulgaria in late

2002.

China is discussed in detail in the specific country

section. While the quality of a good portion of its

white cement output appears questionable, Chinas

role in the global white cement sector is very likely

to increase in the future given better export

prospects and a generally low cost base. China is

already responsible for an estimated 23 per cent of

global white cement output.

The Mediterranean Basin (from North Africa

around to Greece) is responsible for an estimated 14

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Table 1 Estimated white cement production by region, 2002

Region Capacity Output Capacity Plants

(000tpa) (000tpa) utilisation (%)

Europe 4150 3400 82 21

Asia China only 4150 2700 65 >100*

Mediterranean Basin 2625 1680 64 11

Middle East 2190 1290 59 10

Asia excluding China 2180 1290 59 15

Latin America 1360 1050 77 15

North America 800 585 73 4

* Total number unknown


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per cent of global output. With nearly 1Mta capacity

added recently (imsas second line and Aalborgs

Sinai White) there is clear scope (and strategic

expectation by some companies) that the importance

of this region will grow in terms of the global white

cement industry.

The Middle-East has more than doubled its

white cement capacity (currently around 2.1Mta) in

the last 10 years. With high consuming local

markets, and a low cost production base in Iran and

UAE in particular, the relative performance of this

region in output terms also looks set to grow.

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Table 2 Estimated top-10 white cement producing countries

Region Capacity Output Capacity Plants

(000tpa) (000tpa) utilisation (%)

China 4150 2700 65 >100

Spain 1490 1250 84 6

Turkey 1250 690 55 3

Mexico 645 615 95 5

Denmark 820 575 70 1

Iran 930 560 60 5

France 530 500 94 2

India 700 470 67 2

Italy 530 450 85 4Egypt 720 430 60 3

* Total unknown but indicators suggest over 100 factories have the capability to produce some form of white

cement

Figure 1 The global white cement production base

4 2

2

2

2

22

243

7

10

100

4

2

2

3

3

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Asia, excluding China, is responsible for just over

10 per cent of global output. While output prospects

for India and to a lesser extent Southeast Asia

appear good, the more developed economies of

Japan, Korea and Taiwan are likely to decline further

in importance.

Latin America, with the exception of Mexico and

Colombia, forms a relatively insignificant part of the

global white cement production base.

In North America, while Federal in Canada has

invested in new capacity, the US production baseremains old, and only represents 25 per cent of

domestic demand. This is a much more extreme

version of what occurred in the US grey cement

sector. Investment in new capacity in

the future can certainly not be assumed

however.

In all regions, the growing presence

and interest of cement majors in white

cement, plus companies such as imsaand Aalborg, to whom white cement is

a major part of their business, could be

expected to lead to further inter-

regional trading, and global rather than

regional white cement production and

sourcing strategies.

The top-10 producing countries

(see Table 2 Estimated top-10 white

cement producing countries) are responsible for

nearly 70 per cent of global output. For specific

country comments, see below.

It should be noted that white cement is traded

much more extensively in proportional terms than

grey cement, mainly because of its higher value per

tonne and the fact that it is only produced in 46

countries globally. This explains why Denmark, a

small producer of grey cement, should figure in the

top-5 producers. Aalborg White, from its Danish

facility, for example, exports around 90 per cent ofits production.

Drawing comparisons to top grey cement

producing nations, notable exclusions from the top-

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Table 3 Estimated top-10 white cement producers, 2002

Company Capacity Output Capacity Share in global Plants

(000tpa) (000tpa) utilisation (%) output (%)

Cemex* 1470 1330 90 11 8

Aalborg White* ** 1530 880 58 7 3

Lafarge 750 625 83 5 6

Italcementi 740 590 80 5 5

imsa/Sabanci 1100 580 53 5 1

HeidelbergCement* 500 465 93 4 4

RAK White 450 380 84 3 1

Federal 500 300 60 3 1

Holcim 495 290 59 2 5

Grasim 400 280 70 2 1

* Lehigh White allocated according to equity ** Includes 2003 capacity addition

Figure 2 Share of top-10 white cementproducers in global output, 2002


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10 are USA, Japan, Korea and Brazil. Spain, Iran

and Turkey (as well as Denmark) all haveadvanced white cement producing rankings

compared to grey cement.

Table 3 Estimated top-10 white cement

producers, 2002 shows an overview of key

companies in the global white cement industry.

Specific individual comment on the major players

is made below.

Collectively, the top-10 players are estimated

to be responsible for 48 per cent of global whitecement output from 45 per cent of global

capacity. Excluding China, these shares would

respectively be 62 per cent and 60 per cent.

The top-5 global grey cement players are all

in the top-10 of white producers with Cemex

holding a heightened position compared to grey

cement, and Holcim and arguably, Lafarge an

underweight position. It is worth emphasising

though that overall white cement production is

less than one per cent of grey production, and

therefore to the majors is unlikely ever to be more

than a niche market, albeit a potentially profitable

one and of disproportional importance in terms of

promoting overall cement and concrete usage.

To Aalborg White and imsa, both grey

producers as well, white cement is much more than

a niche part of their business. In cement terms, their

white activities are likely to represent more than 50

per cent of their overall business in turnover. Both

companies (like Cemex) have an objective to be

market leader in white cement globally.

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Table 4 The 10 largest white cement production locations by estimated output,

2002

Country Plant Company Ownership Process Capacity Output

(000tpa) (000tpa)

Turkey Mersin imsa Sabanci Dry 1100 580

Denmark Rrdal* Aalborg Aalborg Wet 820 575

Spain San Vicente Valenciana Cemex Dry 454 380UAE RAK RAK White Independent Dry 450 380

Canada Woodstock Federal White Independent Dry 500 300

Italy Rezzato Italcementi Italcementi Semi-dry 250 285

India Rajashree Nagar Grasim White Grasim Dry 400 280

Spain El Alto Cementos Independent Wet 280 276

Portland

France Le Teil Lafarge Lafarge Dry 280 270

Spain Buol Valenciana Cemex Dry 310 250

* Includes 2003 capacity addition

White cement production in Iran


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Historically during the development of the white

cement sector, some wet grey kilns were converted

to white production as the margins were generally

higher and allowed the usage of what was inefficient

capacity. From the late-1980s to the early-1990s this

ceased to be the case. Capacity added since then has

been predominantly efficient dry-process, using

alternative fuels wherever possible, and seeking to

minimise the high milling costs of white cement

production. The individual capacities of dry white

kilns introduced in the last 15 years have been

generally a quantum step higher than existing

capacity. Kiln capacities added have mainly been in

the range of 150,000-500,000tpa.

Capacity additions between 1995 and 2003 are

estimated at 3.5Mta, excluding China (see also Table

5 White cement capacity additions, 1995-2003).

Moreover, further small-scale upgrades, plant

optimisations and other capacity enhancing activities

will have taken place in the period. Nearly 1.8Mta

capacity is estimated to have been added since

2001, quite a dramatic increase compared to the

previous periods.

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Federal, and perhaps arguably, RAK White, are

not directly involved in grey cement, and are

committed to white cement as their main business

activity. This may mean that over the long-term they

may suffer a competitive disadvantage in terms of

lacking synergistic value addition related to logistics,

marketing and overheads, although benefits of focus

may compensate.

The other top-10 producer, Grasim, has recently

become the market leader in grey cement in India

and will benefit from the synergistic benefits noted

above albeit primarily in India only.

Another contrast is that the top-5 cement majors

all have a number of production locations ranging

between four and eight (including grinding stations),

whereas imsa, Federal, RAK White are all single

unit white cement companies.

The top-10 plants are responsible for some 39

per cent of global white cement output (excluding

China) from 36 per cent of capacity (see Table 4

The 10 largest white cement production locations by

estimated output, 2002). Individual plants are

discussed in the section below.

Table 5 White cement capacity additions, 1995-2003

Year Country Plant Company Ownership Add cap

(000tpa)

1995- Iran Saveh Saveh Independent 350

2002

1996 India Rajashree Nagar Grasim White Grasim 250

1997 UAE RAK RAK White Independent 280

1997 Iran Neyriz Neyriz Independent 150

1999 Turkey Mersin imsa Sabanci 5002000 Iran Uremieh Uremieh Independent 180

2001 Brazil Pedro Leopoldo Camargo Correa Independent 110

2001 Canada Woodstock Federal White Independent 300

2001 Egypt Sinai Sinai White Aalborg 410

2002 Saudi Arabia Al-Muzahimiyah Saudi White Independent 210

2002 Kuwait Shuaiba Kuwait Cement Independent 100

2002 Iran Benvid Benvid Independent 180

2002 Bulgaria Devnya Italcementi 50

2002 Malaysia Perak RCI Aalborg 2002003 Denmark Rrdal Aalborg Aalborg 230

TOTAL 3500


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Europe has a long established white cement

production base and has the highest capacity

utilisation of all the regions, ie 82 per cent. It

accounts for 28 per cent of global output, mostly

concentrated in Western Europe. It is in this part of

Europe that capital investment has been focused on

environmental improvements, efficiency and small-

scale capacity improvements. Key producing nations

are Spain, Denmark, Italy and France.

SpainSpain is the second largest white cement producing

nation after China. In 2002, it produced 1.25Mt

across six plants (see Table 6 White cement

factories in Spain).

Of these six plants, only Cemex, Vilanova and

Tudela Veguin are dedicated white cement facilities.Sustained growth has been experienced in the last

decade with production almost doubling from

640,000t in 1992-93. At current production levels,

capacity utilisation rates are now around 90 per cent.

This increase in production is due both to growth in

the internal market (see consumption section) as well

in exports.

Exports have grown from around 120,000t in

1993 (18 per cent of total white production) to390,000t in 2002 (31 per cent of total white

production). Clinker exports only represented about

two per cent of this total in 2002, although in the

mid-1990s they were a more significant part of the

total (1995 around 100,000t of white clinker was

exported). The major areas that white cement was

exported to were North Africa (165,000t mainly to

Algeria:109,000t and Morocco:40,000t), North

America (132,000t), Europe (65,000t mainly

UK:30,000t and Turkey:21,000t) and Israel

(25,000t). In 2002, imports rose to 215,000t, with

the main sources being Turkey (145,000t) and

Greece (39,000t).

Cemex is the leading producer of white cement

in Spain with estimated production in 2002 of

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Figure 3 White cement plants in Europe

I

NDIVIDUAL PLANT REVIEW BY COUNTRY

EUROPE

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around 750,000t from its three plants (all dry-

process) located near Barcelona, Alicante and

Valencia. Cemex through the Valenciana group from

1992 has strongly expanded both domestic and

export sales of white cement.

Cementos Portland at its El Alto plant nearMadrid is the second largest player, producing

around 275,000t of white cement in 2002, very

close to capacity. Virtually all the sales from this

inland plant are supplied to the domestic market.

The Tudela Veguin plant in northern Spain, in the

principality of Asturias, by contrast is able to ship

white cement from two loading facilities at the port

of Gijon. Annual sales are estimated at around

130,000t.

The final white cement plant in Spain is Lafarges

Sagunto plant near Valencia with sales in 2002

approaching 100,000t. Sagunto, located 5km from

Valencia port, has white clinker capacity of

135,000tpa and cement capacity of 150,000tpa. A

small plant, Cementos Rezola, a Ciment Franais

subsidiary was closed in the 1990s.

In terms of production by cement type, cement

of types BL II (42.5R and 52.5N) represent over 70

per cent of the production in 2002. Cements of type

BL I are the second most important (24 per cent of

production) and the masonry cements BL 22,5X

represent about five per cent of production.

PortugalSecil is the only white cement producer in Portugal

from its Pataias Gare plant, located 15km from

Nazare, on the west coast. A semi-dry-process plant

with a Lepol kiln, it has a clinker capacity of

80,000tpa and cement capacity of 110,000tpa. In

2002, production was 98,000t with nearly all sales

made on the domestic market. With domestic

demand increasing, white clinker production maywell be increased after 2004. Two products are made

by Secil, a BR I 42.5 and a BR II 32.5.

Imports of white cement into Portugal were just

under 10,000t in 2002, sourced from Spain and

Turkey.

FranceThere are two white cement plants in France located

very close to each other in the south-east between

Lyon and Avignon, and in good proximity to the

Rhone river. The plants are Cruas, owned by Ciments

Calcia (part of Italcementi /Ciments Franais) and Le

Teil, owned by Lafarge.

Cruas, which became a dedicated dry-process

white cement plant in 1981, after grey production

was discontinued, had cement sales of just under

230,000t in 2002, and is operating close to capacity.

Cruas produces a high quality and pure white

cement, with reflectivity of 93 per cent (top end of

the scale). Quality and consistency are viewed as the

major determinant of continuing competitive

advantage at this location.

Le Teil, after further optimisation in 2003, is

expected to have a cement capacity of 420,000tpa,

plus the ability to supply clinker to the Tavernola

grinding station owned by Lafarge in Italy. Estimated

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Table 6 White cement factories in Spain, 2002

Company Factory Production capacity (tpa)

Clinker Cement

Cementos Portland, SA El Alto Morata de Tajua (Madrid) 280,000 280,000

Cemex Espaa, SA Buol (Valencia) 247,500 310,000

San Vicente del Raspeig (Alicante) 363,000 453,750

Vilanova i la Geltr (Barcelona) 75,000 100,000

Lafarge Asland, SA Sagunto (Valencia) 125,000 100,000

SA Tudela Veguin Tudela Veguin (Princip of Asturias) 125,000 200,000

TOTAL PRODUCTION CAPACITY 1,215,500 1,343,750

Source: Oficemen


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2002 sales directly from Le Teil are estimated at

around 270,000t.Both plants cement production is sold

predominantly in France itself, with total production

in 2002 of 500,000t. Imports to France of white

cement are estimated at around 50,000t in 2002,

and sourced from Denmark, Italy and Belgium.

ItalyThe major white cement producer in Italy is

Italcementi, with a semi-dry kiln and grinding atRezzato, near Brescia, and a grinding plant at

Citavecchia, a port some 70km northwest of Rome.

Rezzato has a white clinker capacity of 200,000tpa

and cement capacity of 250,000tpa, and

Citavecchia, a white cement capacity of 100,000tpa.

Estimated total white cement production in 2002

was 285,000t, of which nearly 90 per cent was sold

in the domestic market. Italcementi produces three

different white cement products a type I

(Italbianco), and two composite type II cements

Roccabianco, with a 80-94 per cent white clinker

constituent and Aquila Bianca, with a 65-79 per cent

white clinker constituent).

Colacem produces white cement at its Ghigiano

plant in Umbria. Estimated production in 2002 was

90,000t, across both type I and type II white cement

categories. Lafarges Tavernola grinding plant

produced around 75,000t in 2002. It is located in the

north Italian Alps and fed with clinker from Le Teil in

France.

Total white cement production in 2002 is

estimated at 450,000t in Italy. Imports are relatively

small about 25,000t in 2002, predominantly from

Turkey, Spain and Denmark.

BelgiumCBRs Harmignies plant, owned by Heidelberg, is the

only white cement plant in the Benelux countries.

Harmignies is a wet-process plant, operational since

1961. Its estimated white cement capacity is around

200,000tpa, although actual production in 2002 is

estimated slightly higher at 235,000t. Historically,

this plant has been a major exporter to mainly

Germany and USA (Lehigh White, in which

HeidelbergCement is the major shareholder), plus

smaller amounts to France and Africa. Exports

represent as much as 70 per cent of total sales.Located near the French border, Harmignies offers

four products CEM I 42.5 and 52.5, CEM II 42.5,

and a waterproof CEM I 42.5. Mean brightness of

these products is in a range of 82-86 per cent.

GermanyWhite cement has been made at Dyckerhoffs

Amoneburg plant near Wiesbaden since the early

1930s. White cement capacity and production isestimated at around 75,000t in 2002.

Germany is a net importer of white cement,

originating predominantly in neighbouring Belgium

and Denmark, with small amounts from Turkey.

Estimated levels of white cement imports are around

200,000t, significantly more than the official statistics

suggest.

DenmarkAalborg Whites facility at Aalborg has the second

largest white cement capacity of all global white

cement locations. The company is part of Aalborg

Portland, which in turn is 100 per cent owned by

FLS Industries. In 2002, the decision was taken to

increase white cement capacity at this site from

620,000tpa to 850,000tpa by converting another

semi-wet kiln from grey to white cement

manufacture. This kiln conversion at the cost of

DKK200m is expected to be operational before the

end of 2003 and will mean that five kilns dedicated

to white will produce at this site. Aalborg is located

on its own deepwater harbour on the River Limfjord.

Long established as the worlds largest exporter

of white cement, Aalborg claims to export to over 70

countries. Since Aalborg White developed new

production facilities in Egypt and Malaysia, there is

likely to have been a refocusing on export markets

supplied from Denmark. It is estimated that around

575,000t of white cement was produced at Aalborg

in 2002, with over 500,000t exported. Main export

markets are USA around 130,000t (Aalborg white is

a minority shareholder in Lehigh White 24.5 per

cent), UK (around 80,000t), Germany (around

50,000t) and most other European countries. Further

afield Aalborg has also been a significant exporter to

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Africa, parts of South America and the Caribbean,

and the Middle East. In total around 80 per cent ofAalborgs sales are in bulk. Aalborg product is CEM I

52.5N only, and meets local standards in all of the

markets that it supplies.

SlovakiaHolcims plant at Rohoznik, near Bratislava, is part of

its network of Central and Eastern European white

cement locations. It has a clinker capacity of

150,000tpa, and cement capacity of 160,000tpa. In2002, Rohoznik produced around 120,000t of white

cement, of which less than 10,000t was consumed in

the domestic market. Around 110,000t was exported

within the region.

RomaniaThe Turda cement plant in Romania is now the

countrys only white cement production facility.

Acquired by Holcim in 1997, this dry-process plant

has a white cement capacity of 100,000tpa. It is

estimated that 2002 production was around 60,000t.

Turda produces only a composite white cement

Type II A42.5b with a maximum limestone

constituent of 15 per cent. It is understood that the

Comarnic works no longer produces white cement.

Late-2003, Holcim announced a 30m investment

programme for its Romanian white operations.

PolandHolcim also owns Wejherowo cement in Poland. This

small wet-process white cement plant has a cement

capacity of around 40,000tpa. However in 2003 the

plant reportedly produced no white cement.

BulgariaThe Italcementi owned Devnya Cement, located

close to the Black Sea port of Varna, commenced

production of white cement in late 2002. The

company reports that there will be an annual

capacity of 50,000t of white cement.

RussiaHolcim lists Shcurovsky cement (part of Alfa group)

as an associate company. This plant is still believed to

be wet-process with a white cement capacity of

around 40,000tpa although a number of years ago

the feasibility of a major upgrade was looked at. Arecent reference was made to production levels

approaching 200,000tpa, but this has not been

substantiated.

OthersFor the purposes of this report both Turkey and

Greece will be looked at in the Mediterranean

section.

Of the countries in Europe that do not have anywhite cement production units, the UK is the most

notable. Production in this country ceased in the

1980s with the closure of Blue Circles Swanscombe

works. Another plant to cease white cement

production in 1997 was Istra Cement, owned by

Heidelberg, in Croatia.

The Mediterranean is the area from North Africa

around the Mediterranean Sea to Greece. In terms of

output it accounts for 14 per cent of the world total.

GreeceThere are two white cement producing locations in

Greece Titans Elefsis plant and Lafarges Volos

plant. Neither of these are dedicated white cement

plants. Elefsis plant has a white cement capacity of

130,000tpa and in 2002, it is estimated that around

110,000t were produced. Volos plant which came

into Lafarge ownership when it acquired Blue Circle

in 2001, has white clinker capacity of 115,000tpa,

and white cement capacity of 90,000tpa. Estimations

show a 60,000t production in 2002.

Exports from Greece are in the order of

80,000tpa, with major markets being Algeria, Israel

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and Morocco. Imports are under 10,000t, and

mainly from Turkey.

TurkeyThe largest white cement production facility in terms

of potential capacity in the world is imsas Mersin

plant. imsa is 90 per cent owned by Sabanci Group.

White cement production was first established at

Mersin in 1990, utilising a new second production

line designed to be interchangeable between grey

and white. This Plant IIs capacity is 1500tpd white

clinker or 2200tpd grey clinker. After sales of white

cement grew strongly throughout the mid-1990s,

both in terms of domestic and export sales, a further

line was added at the end of 1999. This Plant III is

dedicated to white cement production, and fully

automated. White clinker capacity is 500,000tpa.

imsa uses Plant III for the majority of white cement

production, augmented by Plant II. The cost of the

new line was reported to be US$62m and was

supplied by FLSmidth. Total white clinker capacity at

Mersin would be 1Mta and white cement capacity

1.1Mta, assuming full utilisation of both lines. It is

estimated that 2002 white cement production was

around 580,000t, with domestic sales of 180,000t

and export sales of 400,000t. Additionally, some

white clinker is exported (approaching 50,000t).

imsas works is located only 7km from Mersin

port, which has deepwater facilities that can handle

up to 40,000t ships. The low cost structure of the

Mersin works (particularly when compared to much

of the older and high cost white cement capacity

elsewhere) has given imsa scope to market white

cement aggressively in export markets, with a

declared objective of becoming the worlds leading

white cement producer and exporter. Main export

markets in 2002 included Spain (around 140,000t),

Israel (over 50,000t), Syria (around 40,000t), USA

(around 25,000t) and Canada, and North Africa.

Further penetration of export markets is expected in

2003. Imports to Turkey are mainly from Spain (just

over 20,000t in 2002). This was regarded as a

retaliatory market response by Cemex, Spain to

imsa establishing white cement import operations

in Spain.

imsa has also established itself as the leading

producer within the Turkish market where it has a

competitive advantage compared to the other

producers in terms of both cost and quality. The

whiteness of imsa white cement is claimed to be a

minimum of 85 per cent, ahead of other Turkish

producers.

Figure 4 White cement plants in the Mediterranean

4

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2


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The largest of the other Turkish producers is Set

owned by Italcementi) at Trakya Cimento, close toIstanbul. This is a wet-process plant with 90,000tpa

capacity and estimated sales in 2002 of around 70,000t.

Adana Cimento, with claimed whiteness of product

between 80-84, is a dry-process plant with white

cement capacity of 60,000tpa, and estimated 2002

production of 40,000t. Baticim, at its Batisoke plant, has

produced white cement in the past, but in relatively

small quantities. Total Turkish white cement production

in 2002 is estimated as approaching 700,000t.

LebanonThe only remaining white cement producer in

Lebanon is Socit des Ciments Blancs (in which

Holcim has a controlling interest via its holding in

Socit des Ciments Libanais). It has an estimated

cement capacity of 150,000tpa, and in 2002 it

produced around 80,000t. The plant is located at

Chekka, north of Beirut.

The other white cement plant in Lebanon,

Cimentire du Moyen ceased production of white in

2000 when it was converted by Seament, the

majority owners, to grey cement production. This

70,000tpa capacity plant had been producing close

to 50,000tpa. The main export destination forLebanese white cement is Syria. Around 30,000t was

exported in 2002.

EgyptThere are three white cement production locations in

Egypt. The largest and most recent one is Sinai

White Cement, which only went into production at

the end of 2001. The 410,000tpa plant has been

built adjacent to the Sinai Cement grey plant. Theproject began in 1999, with the main shareholders

being Aalborg White (38 per cent), Danish

Industrialisation Fund (11 per cent), Sinai Cement

(20 per cent) and ASEC (10 per cent). For Aalborg

White the investment gave the opportunity to build

new capacity in the Middle-East to complement its

existing major production base in Denmark, and also

to improve its competitive position, in Middle-East

markets, that had deteriorated in recent years. In

March 2002, Aalborg White acquired a further seven

per cent of shares in Sinai White, giving them, in

conjunction with the Danish Industrialisation Fund,

majority ownership.

Total project cost was reported as being around

US$75m. ASEC was given full turnkey responsibility

for the project, with FLSmidth acting as engineers

and main equipment supplier. Exports began in mid-

2002 from El Arish port on the Mediterranean after a

considerable investment in logistics. In addition, it

has been reported that by the end of 2002, Sinai

White had also secured a 40-45 per cent market

share of the domestic Egyptian market. Total 2002

sales by Sinai White are estimated as approaching

200,000t, and likely to continue increasing steadily in

2003. Exports are also anticipated in the future into

the Red Sea and beyond possibly through Port Suez,

to Eastern Africa, and the Middle-East including the

Gulf, Saudi Arabia, Yemen, and possibly also the

west coast of India.

The other two production locations are owned

by ASEC Helwan. El Menya in Upper Egypt is a dry-

process white cement plant, commissioned in 1990,

with a capacity of 220,000tpa. Additionally, there are

two small wet lines at the Cairo works with a

combined white cement capacity of 90,000tpa. It

Sinai White Cement, Egypt


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had been anticipated that these two lines, dating

back to the early 1960s, would be likely to closewith the onset of Sinai White. Total ASEC Helwan

production in 2002 is estimated around 230,000t.

Including the Cairo works, total white cement

capacity in Egypt is 720,000tpa. A traditional export

market has been Saudi Arabia (around 16,000t in

2002) although exports will now grow substantially

due to Sinai. A small amount of imports in recent

years have come from Turkey (around 5000tpa).

TunisiaFeriana Tuniso-Algerian company (SOTACIB) is the

only white cement producer in Tunisia. In 2001, it

produced 248,000t of white cement and it is

estimated similar production levels were recorded in

2002. The company is a joint-venture between the

Tunisian and Algerian governments. While being

regarded as having poor access to port facilities it

is located 250km from the nearest ports exports to

Algeria and Libya in particular are around 80,000tpa.

MoroccoLafarge Maroc has an 80,000tpa grinding plant for

white cement at Bouskoura, south of Casablanca.

Coastal-based, there may well be potential to supply

clinker from Lafarges Volos plant in Greece.

Estimated 2002 white cement production is 60,000t.Additionally, imports are around 70,000tpa from

Spain, Turkey, and Greece predominantly.

OthersWith the economic situation in Libya improving, and

inward investment looking likely to grow, there is a

strong likelihood that white cement capacity will

come on-stream around the middle of the decade.

There is a white cement plant included within

planned projects this would be ca. 200,000tpa.

White cement capacity in the Middle East has more

than doubled to 2.1Mta over the past decade. The

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MIDDLE EAST

Figure 5 White cement plants in the Middle East


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relative output performance of the region is poisedfor growth. The key producing nation is Iran, which

accounts for around three-quarters of output capacity.

IranIran has built a substantial production base for white

cement since the mid-1990s. Overall white cement

production capacity is estimated at over 900,000tpa.

Four of the five plants have gone into production

since 1995, and the Iranian white cement industry is

regarded as highly efficient and with a low cost base,

giving it the opportunity to be highly competitive in

terms of exports within the region, and further

afield. Total production in 2002 is estimated as

approaching 600,000t.

Saveh Cement is the largest producer, with two

500tpd white lines built by FCB in 1995 and 2002.

Saveh is 50 per cent owned by the Iranian

government with the remainder owned by other

public bodies. It has a claimed brightness of over 92

per cent for its white cement a high level of purity

compared to most producers. The plant is located

160km south west of Tehran, and despite being

800km from ports, has established a strong export

base. Capacity is around 350,000tpa and estimated

sales in 2002 were 230,000t.

Neyriz Cement that started operation in 1997

has a white cement capacity of about 150,000tpa. In

2002, it is estimated to have produced just short of

100,000t of white cement, similar to 2000, and

above 78,000t produced in 2001, when sales were

affected by the Indian anti-dumping actions. Overall

exports in 2002 were nearly 30,000t, mostly within

the region. Main sponsors of Neyriz are Fars and

Khuzestan Cement as well as the Iranian Bank

Saderat. Whiteness levels are in excess of 91 per

cent. Neyriz is located in southeastern Iran, 240kmfrom Shiraz.

Uremieh Cement is only 50km from the Turkish

border in northeastern Iran. The plant, which cost

around US$70m, came on-stream in late 2000. With

estimated capacity of 180,000tpa, production levels

were reported to be 120,000t in 2001, and are

estimated to have been 135,000t in 2002. Despite

being 1200km from the nearest port, exports

represented around 30 per cent of 2001 output.

It was reported in early 2002, that another white

cement plant at Benvid White Cement was due for

completion in mid-2002. It is located near to Esfahan

and has a capacity of 500tpd. This would give an

annual capacity of around 180,000t.

Prior to the rapid increase of white cement

capacity in Iran, the only production facility was at

Shemal Cement, which came on-stream in 1980.

This wet-process facility has capacity of around

70,000tpa 2002 production was estimated to be

60,000t, of lower grade pozzolanic white cement,

only suitable for the domestic market.

IraqThe Falluja II plant of the Iraqi Cement State

Enterprise was established in 1978. It has a rated

white cement capacity of 290,000tpa, although

production is estimated to have been no more than

around 20,000t in the late 1990s. It is believed that

the plant was not producing in the lead up to the

most recent Gulf War.

Saudi ArabiaSaudi Arabia, although a large consumer of white

cement, only developed its first white cement

production facility recently, when the Saudi White

Neyriz White Cement, Iran


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Cement Company came on-stream in 2001. With a

700tpd white cement kiln located at Al-Muzahimiyah, its cement production capacity is

around 210,000tpa. In 2002, it produced around

155,000t, nearly all of which was consumed on the

domestic market.

Traditionally, imports to Saudi Arabia have come

from Turkey, Denmark, and UAE. Imports in the

period 1998-2002 averaged nearly 200,000tpa.

KuwaitThe Kuwait Cement Company started producing

white cement in 1979 and in 1999 converted

another mill from grey to white grinding. Estimated

white cement capacity is now 190,000tpa and 2002

production is estimated at around 80,000t. Clinker is

imported.

Jordan

Arab Company For White Cements Khaldiya plant is

located 50km east of Amman. It started production

in 1985, and is a dry process 380tpd kiln. Estimated

cement capacity is around 115,000tpa, and

estimated production in 2002 was around 110,000t,

with around 45,000t exported.

United Arab EmiratesThe Ras Al Khaimah (RAK) Company for White

Cement started production in 1986 and upgraded to

a cement capacity of 450,000tpa in the mid-1990s.

RAK is one of the largest stand-alone white cement

companies. It is located near the port of Mina Saqr,

ideally placed close to the Straits of Hormuz at the

entrance to the Arabian Gulf.

Estimated production in 2002 was close to 400,000t

with exports representing some 75 per cent of the

total.

RAK has over the years developed a strong

export base throughout the Middle-East, and further

afield including USA, Africa and the Indian Sub-

continent. In 2001, RAK had anti-dumping duty

imposed on it by the Indian Government, although it

was lifted after three months. RAK has aggressively

marketed white cement for export, and in some

cases has replaced Aalborg White cement in certain

markets.

Asian markets, excluding China, has a 10 per cent

share in global output figures. Key producers are

India and Thailand, but these are dwarfed when one

takes China into account with an estimated capacity

of 2.6Mta.

PakistanThere are two existing white cement plants in

Pakistan, with a third expected to come on-stream in

2004. Existing capacity is around 85,000tpa, and

2002 production was close to capacity at 81,000t.

Anwarzaib White Cement came into production in

1989 with an Onoda manufactured 50,000tpa kiln.

Cement capacity is also rated at 50,000tpa, and in

2002 production is estimated at 45,000t. The Bholari

plant is situated in Sind-Hyderabad region. The other

existing producer is Maple Leaf Cement Companys

wet process white cement plant at Iskanderabad

there are two small wet kilns dating back to 1967

and 1973 with a combined capacity of 30,000tpa.

2002 production was 36,000t. Production from both

plants is consumed within the domestic market.

Kohat Cement recently announced the intention

to set up a white cement plant with a production

capacity of 300tpd on the same site as its existing

grey cement plant at Kohat-Rawalpindi. Expectation

is that the plant will go into commercial production

in mid-2004.

IndiaThe Indian white cement sector has two modern and

efficient plants both located close to each other in

Rajasthan, in northwestern India. Grasim, the largest

overall India cement producer, established white

cement activities, under the Birla White name in

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1988, in technological association with Onoda. Its

initial capacity was 80,000tpa, and a second line was

added with technology from Nihon Cement in 1986.

The company has an existing clinker capacity of

380,000tpa and cement capacity of 400,000tpa. In

2002, it produced around 280,000t, with just over

10,000t exported, mainly to the Middle-East and

smaller amounts to Sri Lanka and other parts of Asia.

The other main producer is JK White, also a grey

cement producer. JK started in white cement in 1984

with a 130,000tpa plant supplied by FLS. Its clinker

production capacity is now reported to be

300,000tpa after a number of upgrades. In 2002, it

produced around 185,000t, with 8000t exported.

Travancore Cement in Kerala is not believed to

still produce white cement. It has a 1950s small wet-

process plant and used to produce around

30,000tpa. Another plant Nihon Nirmaan near

Jodhpur in Rajasthan commenced production in the

early 1990s but suffered major financial losses and

went into BIFR (similar to US Chapter 11) in 1997.

Despite revival packages being put forward, and

interest shown in taking the plant over by Aalborg

and other Indian producers nothing firm appears to

have materialised. This plant was not believed to be

producing in 2002.

With the location of the two Rajasthan plants,

the western coastline of India from Mumbai

downwards has often been seen as a potential point

for imports. Imports in recent times have come from

Iran and UAE, and in 2001 resulted in a temporary

imposition of anti-dumping import tariffs. In effect,

imports have to date not been hugely significant in

volume terms, although the changing competitive

forces in white cement are likely to lead to major

players such as Aalborg White looking to penetrate

parts of the large Indian market.

BangladeshThere are reported to be two small white cement

plants in Bangladesh both owned by Nitol Group

with a manufacturing capability of 60,000tpa the

second at Jessore was inaugurated in 2002. The

independence and manufacturing extent of these

units has not been established. A 2002 press report

mentioned that Nitol was seeking to obtain white

clinker from Grasim in India, while in January 2003,

this was confirmed when it was announced that

Nitol would manufacture Birla White cement using

clinker and technical support from Grasim.

Another reported initiative was Siam Cement

and Siambangla, a company within the Meghna

Figure 6 White cement plants in Asia


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2

3

4

3

8

2

2


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Group, signing a joint venture agreement to

produce white cement in Dhaka, according to theDaily Star of Bangladesh. This proposed 60,000tpa

would presumably be a grinding operation.

Production of white cement in 2002 is estimated

at 20,000t. Imports into Bangladesh were reported

to be around 25,000t in 2002, some via

HeidelbergCements Scancement import terminal.

Malaysia

The only white cement company in Malaysia, RockChemical Industries (RCI), was acquired by Aalborg

White in May 2000. The decision to acquire 60 per

cent of RCI was based on Aalborgs objective to

establish a regional manufacturing base in Asia. The

plant at Ipoh, 200km north of Kuala Lumpur, had a

capacity of around 50,000tpa this has now been

increased to over 200,000tpa, with a new 500tpd

line, provided by FLSmidth, which came on-stream in

late-2002.

Aalborg White Asia has supplemented this

production facility by other commercial activities

including a joint-venture with Siam Cement of

Thailand to supply white cement to Taiwan, the

purchase from Blue Circle and closure of the

Philippines only white cement plant, Premier, and a

variety of other country specific initiatives within the

region. Estimated production in 2002 was 60,000t,

with the expectation of considerable growth to

2005, now that the new capacity is in place. Much

of this growth will come through increased exports

from Malaysia within the region.

VietnamAccording to an Aalborg White report, current white

production in Vietnam is around 150,000tpa from

two plants. While one of the production plants is

Haiphong, no information has been established

about the other facility. The Vietnamese government

has indicated that white cement would be granted

special investment licenses in terms of foreign direct

investment.

ThailandThere are two white cement production facilities in

Thailand. Siam White Cement is the major producer

of white cement in Thailand. Based near Saraburi at

Khao Wong, the company was established in 1971,and has a clinker production capacity of 156,000tpa,

but only dedicated white cement capacity of

140,000tpa. The joint-venture with Aalborg White is

an opportunity for Siam White to leverage its

presence further in the region. Estimated production

in 2002 was 140,000t. The other producer noted is

Universal White, also in Saraburi, with a 70,000tpa

clinker capacity. Estimated output is 60,000t.

Exports from Thailand increased dramatically in2002, with over 100,000t to the USA.

IndonesiaHeidelbergCements Indocement complex at

Citeurup produces white cement. It has clinker

capacity of 200,000tpa, and in 2001 produced

118,000t. In 2002, it is estimated that production

levels were 130,000t. Domestic sales were just over

100,000t, with the remaining 20,000t plus exported

within the region, and to USA.

South KoreaThere is one white cement producer Union

Cement. A subsidiary of essentially a chemical

company it is not involved in grey cement

manufacture. It has a cement capacity of 170,000tpa

at its Chongju plant commissioned in 1981.

Estimated production in 2002 was 100,000t, with

exports made in the region and also to South

America.

TaiwanUntil recently there was one white cement producer

in Taiwan Taiwan Oil Corporation. Production from

this 20,000tpa plant has gradually dwindled from

13,800t in 2000, to only 1500t in 2001. In 2002,

less than 1000t was produced and it was reported as

likely that the plant would close down. Imports come

predominantly from Indonesia (7000t in 2001) and

small amounts from Japan and South Korea.

JapanThe Japanese white cement industry has been in

long-term decline since the 1980s. A number of

capacity rationalisations took place in the mid-1990s


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Reasons for this significant fall include

apparently a wide increase of cheaper counterfeit

materials masquerading as white cement these are

generally blended materials containing as little as 20-

30 per cent white cement (bought from the

producers) mixed with limestone and other additives

as well as other decorative cements. These

materials are not included in the output estimates of1.5Mt above but their effect on overall market

demand is discussed in the Consumption section of

this report. Output of these materials is estimated to

be around 1.2Mt, which would give an estimate of

output in a wider definition of white cement as

around 2.7Mt in 2002.

The effect of this reduction in white cement

output has been for some white cement producers

to exit the sector and to switch to production ofother products. Research indicates that there are still

around 110 white cement production locations

across China with a potential output capacity of over

2.5Mta. These are mainly small- and

medium-size units, although there are

some larger-scale factories such as

Guangxi Hengxian Special Cements

that has an output of around

250,000tpa. A feature of many of

these units is that they are not

dedicated to solely white cement

production.

In terms of the question of what

constitutes white cement the Chinese

market has the most question marks.

A number of definitions are reported

to apply.

between Onoda, Chichibu, and Nihon. Clinker

capacity of white cement is reported as 307,000tpa

by the Japan Cement Association, although white

cement production in 2002 was only less than

80,000t. The only remaining producer is regarded as

being the Kitakyushu plant. No imports to Japan

were recognised and exports are of the order of

6000tpa, mainly to Hong Kong.

ChinaChina is the largest white cement producing nation

in the world estimates of its total output in recent

years have fluctuated considerably between 1.5 and

3Mt. As part of this report, research in the Chinese

market was commissioned by International Cement

Review. Some of the key findings in terms of output

are as follows:Output of a close definition of white cement

has actually fallen from a high of 2.6Mt in 1995 to

estimated levels of around 1.5Mt in 2002.

Table 7a Whiteness of Chinesecement

Class Whiteness

value

Special class 86

First class 84

Second class 80

Third class 75

Table 7b Distribution of outputacross whiteness categories

Class Tonnage Share in

(000tpa) output (%)

Special class 70-80 6

First class 300 20

Second class 1050 70

Third class 60-70 3

Table 7c Product classification for Chinese

white cement

White cement quality Whiteness class Grade

Best quality special class 625525

First quality first class 525

425

second class 525

425

Accepted quality second class 325

third class 425

325


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Table 8 Chinese white cement production capacity

Plant location Province Capacity (000tpa)

Anqing Anhui 100

Chichou Julong Anhui 80

Chongqing Tenghui Chonqing 30

Chongqing Feixue Chonqing 20

Wuping White Fujian 50

Daxinshan Guangdong 50

Guangzhou Huihua Guangdong 30

Shenzhen Dapeng Guangdong 30

Guangxi Heng Guangxi Huang 250

Baoding Deyuan Hebei 80

Shijiazhuang City Hebei 50

Baoding Ziheng Hebei 50

Mudanjiang Duocai Heilongjiang 35

Hebei Xinghua Hubei 80

Hubei Hongqi Hubei 22

Hunan Loudi Hunan 30Nanjing Yinjia Jiangsu 150

Suzhou Guanghua Jiangsu 100

Nanjing Kunyuan Jiangsu 100

Jiangxi Fenyi Jiangxi 50

Yejin White Jiangxi 30

Jiangxi Shanggao Jiangxi 15

Jiangxi Xinfeng Jiangxi 15

Chifeng Danfeng Neimenggu 60

Ningxia Shizuishan Ninxsia 30

Zibuo Yunhe Shandong 90Zhaoyuan Jinhua Shandong 50

Wendeng Dafang Shandong 40

Luoping City Shandong 30

Shanghai White Shanghai City 80

Shanghai Baolong Shanghai City 50

Licheng Zhenhua Shangxi 80

Shanxi Yao Shanxi 30

Guanghan Sichuan 50

Xinjiang Tunhe Xinjiang 50

Kunming Yunnan 30

Yuyao Zhenxiang Zhejiang 50

Changxing Huxing Zhejiang 40

Changxing Xingming Zhejiang 30

Zhejiang Lanxi Zhejiang 15

unspecified-others 400

TOTAL 2652


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Whiteness of white cement is divided into special

class, first class, second class and third class, and thewhiteness of each class should not fall below the

numerical value listed in Table 7a.

Research indicates a distribution of output across

the whiteness categories as shown in Table 7b.

In terms of product classification, the products

are divided into the best quality, first quality and

accepted quality in the following way.

Production of Chinese white cement is reported

as being mainly concentrated in Henan, Guangxi,Jiangsu, Guangdong, Hunan, Shandong provinces -

white cement outputs from these six provinces

represent around 70 per cent of the total production,

with Henan being the most significant province.

Identified white cement producers are shown in

Table 8.

Exports of white cement have risen considerably

from mid-1990s levels of around 50-60,000tpa. In

2002, after Chinas entry into WTO during 2001,

exports were 137,000t at an average price of

US$52/t according to Chinese customs statistics.

Main destinations of exports were East Asia, EAC,

and Hong Kong, Macau and Taiwan. Imports are

negligible at around 1000tpa.

AustraliaThe Cement and Concrete Association of Australia

reports that there is no white cement production in

Australia and that imports are in the range of 12-

15,000tpa. However, it should be noted that an off-

white or cream cement is produced and used in

applications such as roof tiles, mortars, and masonry

products. This off-white cement was developed by

the Australian industry to reduce reliance on

imported white cement.

All of the Australian cement companies produce

off-white cements. Blue Circle Southern Cement,

owned by Boral, has a wet-process kiln at Maldon,

on the outskirts of Sydney. This plant producing off-

white cement only, has a clinker capacity of

180,000tpa and a cement capacity of 200,000tpa. In

2002, it produced around 150,000t of off-white

cement. Adelaide Brighton also produce an off-white

cement at its Angaston works in South Australia.

Sunstate Cement, a joint-venture between Adelaide

Brighton and Boral, grinds an off-white cement at

its works near Brisbane. Cement Australia, the newlyformed entity from the merger of Queensland

Cement (Holcim) and Australian Cement, produces

off-white clinker at its Rockhampton plant in

Queensland.

Latin America has relatively limited white cement

production capabilities when compared with most of

the world. Mexico forms the major exception to this

and is an important international player.

MexicoCemex is the largest producer in Mexico, with three

white cement facilities. The Tepeaca plant (Tolteca)

has an estimated white cement capacity of just

under 200,000tpa, and in 2002 produced close to

that figure. The Monterrey plant has an estimated

capacity of 100,000tpa, similar to its production in

2002, and Ciudad Valles has a capacity of

165,000tpa and an estimated 2002 production of

160,000t. The estimates would suggest that each of

the three Cemex plants has high capacity utilisation.

Total Cemex production is estimated to be 450,000t

from its Mexico facilities.

There are two other established white cement

producers in Mexico. Cementos Portland Blanco de

Mexico, acquired by Lafarge in 1999 the Vito plant

has a capacity of 80,000tpa of white cement and in

2002 it is estimated that the plant produced around

70,000t. The other company is Cruz Azul at Lagunas

near Hidalgo white cement production started in

2000 when a kiln line was converted from grey to

white clinker usage. Estimated production capacity is

120,000tpa and 2002 white cement sales of around

100,000t were achieved. In 2001, Apasco (Holcim)

INDIVIDUAL PLANT REVIEW BY COUNTRY

LATIN AMERICA


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PROFILE

White cement inColombia

Cementos del Nare SA is part of the Argos

Group, one of the most important

economic groups in Colombia. During the

last six decades it has been leading the production of white cement and lime in thecountry. Cementos del Nare offers several types of white cement such as Type I, Type

IM, Type III, Masonry, Antique, and Colour Cements, all of them with high resistance

and high colour levels of world standards.

In the case of its white cement, the installed

production capacity is 250,000tpa, a quantity

that satisfies the domestic demands as well as

foreign markets, exporting to more than 20

countries.

The company is certified in its production

process under Norm ISO 9001 version 2000 in

the elaboration of white cement and lime. Assessments have been made to guarantee

high standards of resistance and colour consistency of Nare white cement, which abide

to regulations NTC 1362 and ASTM C - 150, depending on the application and the

target market.

The main objective of Cementos del Nare is to promote new

uses of white cement in Colombia:

n white and clear tones of concrete

n precast columns, bracket balusters, sills, wells, large tables,

bar counters, coloured concrete tiles, items for urban

furnishings and practically any construction item

n precast elements in white cement for floors (tiled terraces,

coloured, cobblestones, floor slabs, precast siding panels,

concrete blocks, side plating with slabs)

n mortars and coverings

n white cement based paints

n thin set and grouts

Cementos del Nares white cement has been the protagonist in

great architectural and infrastructure works (see photographs).

Its history and social presence are the best proof that, with

work and hope, the company actively takes part of Colombia's

progress. Quality is a contribution to the construction of a

better future.


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announced that plans had been initiated to

construct a white cement plant at its Apaxcaplant. The level of progress on these plans is

not clear, although it would be unsurprising

for more capacity to come on-stream in

Mexico.

The main export market is USA with

nearly 200,000t being exported in both

2001 and 2002. A high proportion of these

sales are from Cemex to its US minority

interest, Lehigh White (24.5 per cent ofequity).

BrazilThere are two white cement producers in

Brazil. The established Votorantim wet-

process facility at Iraja in Sao Paulo state is

estimated to have a production capacity of

80,000tpa. Estimated 2002 sales were in the

order of 75,000t. A new white cement plant

came on-stream in 2001, at Camargo

Correas Pedro Leopoldo plant where a

production line was converted from grey to

white. Krupp Polysius modified equipment,

including the preheater and silo, as well as

supplying the engineering, the burner and the cooler,

in order to convert the 800tpd grey cement kiln line

to 400tpd of white. Estimated capacity therefore is

around 120,000tpa, although it is unknown how the

plant is performing in terms of output. Small

amounts of imports come from Mexico and the

export trade is yet to be developed significantly.

Cimento Cau at Pedro Leopoldo is a reasonably

significant producer of ground granulated slag

however, and its presence may have depressed

demand for white cement in Brazil.

ColombiaCementos del Nare, part of the Argos Group, is a

reasonably large white cement producer. Its white

cement clinker capacity is 200,000tpa and cement

capacity of 250,000tpa. In 2002, it produced over

180,000t of white cement, including 70,000t for

export. It has four wet-process kilns and four

dedicated mills. Export markets include the USA and

the Caribbean.

Another plant used to produce white cement

Cementos Hercules is situated close to Bogota. It is

not known whether this plant, with a white cement

capacity of around 30,000tpa, is still in operation.

VenezuelaThe Cemex owned Venezolana de Cementos has a

white cement production capacity of an estimated

75,000tpa. Estimated 2002 sales were 70,000t, with

a majority of these materials being exported through

Cemex trading activities.

Dominican RepublicHispano Dominica de Cemento Blanco (HDCB) has a

28,000tpa white cement grinding facility near the

capital Santo Domingo. Its 2002 estimated output

was 15,000t.

CubaThe government-owned Cementos Cubanos

produces white cement at its Siguaney plant that

came on-stream in the mid-1980s when Onoda

Figure 7 White cement plants in Latin America


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carried out kiln conversions. The unit has a installed

capacity of 100,000tpa, but output in recent years

has been in the 20,000-30,000tpa range. The Cuban

government remain keen to bring in an international

partner to this operation with a view to modernising

and refurbishing the plant, as well as developing

export sales.

UruguayCompania Nacional de Cementos produces small

amounts of white at its wet-process plant 100km

from Montevideo. 2002 production is estimated at

around 5000t.

PeruAgregados Calcareos, a quarrying and mining

company, has a 90tpd plant in which it produces

white cement both for the Peruvian market and

neighbouring countries. White cement capacity is

estimated at 25,000tpa, with output below the

10,000t mark in 2002.

BoliviaEmpresa Minera Industrial (EMISA) now part of

the Soboce Group (in which CDC has a 44 per cent

interest) has traditionally produced small amounts

of white cement for the domestic market (around

2000-3000tpa).

In the US, the white cement production base shows

similarities, albeit in a much more extreme manner,

to the grey production facilities in that works are

generally old. Investment in new capacity remains

limited.

INDIVIDUAL PLANT REVIEW BY COUNTRY

NORTH AMERICA

Canada

There is one white cement producer in Canada.

Federal White Cement Ltd began operations in 1979

in Woodstock, Ontario, with the startup of a new

dry preheater 185,000tpa kiln for the sole purpose

of producing white cement (Federal does not

produce grey cement). This was Canadas first white

cement plant, but more importantly, it was radically

larger and more cost efficient than any of the

existing US white cement facilities. American white

cement kilns typically were old, small long dry- or

wet-process kilns that had been converted from grey

cement production. The three white cement plants

that currently operate in the United States are all of

this type. Being more efficient than American

competitors, the structure of the North American

white cement industry changed significantly as a

result.

In 2001, Federal brought on-stream a new kiln

with capacity of 900tpd or about 300,000tpa. Of

further interest, the plants components were

specially designed to allow the kiln to be expanded

to 2000tpd or 660,000tpa at a later stage. Current

milling capacity is 500,000tpa, and prior to the new

kiln coming online, white clinker was bought in,

most notably from Turkey, particularly in 1999. In

2002, it is estimated that Federal produced around

300,000t of white cement.

Canada is the largest exporter of white cement

to the USA. US Customs data for 2001 reported that

213,000t of white cement were imported from

Canada, with similar levels in 2002. In 2001, Canada

imported 14,000t of white cement, making it a net

exporter of 200,000t.

USALehigh White Cement operates two white cement

plants in the United States at York, Pennsylvania,

and Waco in Texas. Each plant has one small, wet-

process kiln in service since the 1960s. Estimated

capacity for the two plants together is 170,000tpa

white clinker and 190,000tpa white cement. In

2002, it is estimated that the two plants together

produced around 185,000t. Waco came into

Heidelbergs ownership in 1980, and York in 1982 as

part of its acquisition of Medusa.


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Lehigh White Cement is a joint venture of

HeidelbergCement (51 per cent), Aalborg White

(24.5 per cent), and Cemex (24.5 per cent). Like

Federal White Cement, Lehigh White Cement

distributes its product throughout North America.

Local production from these two plants is

supplemented by imports into strategically located

import terminals down the East Coast, Texas and in

California. A high proportion of these imports come

from the joint venture partners white cement plants

elsewhere in the world Mexico and Spain in

Cemexs case, historically Denmark in terms of

Aalborg White, and from time to time, Belgium and

Indonesia with Heidelberg.

Texas Industries (TXI) operates the third white

cement facility in the United States. The plant is

located at Crestmore in southern California, and has

two, small 40-year-old dry-process kilns with overall

white cement capacity of around 110,000tpa. In

2002, estimated sales from this plant were around

100,000t. TXI acquired this plant when it purchased

Riverside Cement from Ssangyong, Korea. Previous

owners had included Beazer, Gifford Hill and

Amc

White Cement Repot

Documents

Transcript of White Cement Repot