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Concrete

Ultratech sources VRM from Gebr. Pfeiffer

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Ultratech Cement will once again use the state-of-the-art vertical roller mill technology from Gebr. Pfeiffer, to build three new clinker production lines.

As Ultratech Cement gears up for its three new clinker production lines, a corresponding follow-up order was awarded to Gebr. Pfeiffer SE, Germany, and its Indian subsidiary Gebr. Pfeiffer (India).

As the largest cement plant operator in India and one of the top ten in the world, Ultratech Cement from Mumbai, India, is contributing to shaping the future of the cement industry. At their Happy 3 plant, the cement raw material will be ground in an MVR 5000 R-4 mill. With a 5,300-kW drive, this mill can grind approx. 705 tph to a product fineness of 1.5 per cent R 212 µm. The integrated SLS 5300 VR high-efficiency classifier, with optimised flow and electrical efficiency, separates the product to achieve the target fineness.

For the grinding of approx. 45 t/h of pet coke or approx. 90 t/h of coal, three vertical roller mills of the type MPS 3550 BK will be supplied. These are equipped with a 1,300-kW gearbox, as standard. By using Pfeiffer MPS mills, Ultratech is able to process both pet coke and coal, as well as any mixture of these two materials, at the same speed of the grinding bowl, thus avoiding three expensive frequency converters. The new coal mills will be equipped with an integrated high-efficiency classifier type SLS 3750 BK of the latest design. 

It is important for UltraTech’s stock of spare parts that the latest MVR mills are characterised by grinding rollers based on the R=C principle, as this brings significant advantages for the customer. It means that these mills are equipped with grinding rollers that, equipped with the corresponding grinding elements, can be used, along with the appropriate power modules, for raw meal grinding as well as for cement grinding.

As the components of rollers, grinding roller suspension system, roller arms in cement and raw mills are identical with the ones which the customer has already received from Gebr. Pfeiffer, he requires a smaller number of spare parts in stock. This is because the components mentioned can be used for all his cement and raw mills.

The MVR 5000 R-4 mill for the Happy 3 plant has four actively redundant grinding rollers and can also be operated with two grinding rollers in the event of planned or unplanned maintenance work. This mill can then still produce approximately 70 per cent of the nominal capacity, so that the cement rotary kiln can continue to be fed with raw material.

The MVR mills are equipped by Gebr. Pfeiffer with the modern systems for preventive, maintenance-oriented condition monitoring. This will enable the customer to implement modern, digital maintenance concepts. The MPS mills will be prepared to include such options at a later point in time.

Order execution will be jointly by the subsidiary Gebr. Pfeiffer (India) and Gebr. Pfeiffer SE (Germany). The entire customer support and plant engineering will be carried out by competent Pfeiffer engineers in Noida.

The core components, such as gearbox, grinding bowl, grinding roller suspension system and the grinding rollers, are supplied from Europe by Gebr. Pfeiffer SE. The remaining components, such as the foundation parts, the housings, the classifiers and most of the plant components will be provided by Gebr. Pfeiffer (India).

The Customer Support Centre in Noida, being close to the customer, will later also provide support for the plants. This can be done in real terms by sending personnel to the plants or via remote data access.

For this purpose, Gebr. Pfeiffer offers hardware and software solutions, which are supported by competent technical personnel during normal office hours, if possible, in the local language. The picture shows an MVR mill of similar size (Type MVR 5000 R-4).

Concrete

Construction Costs Rise 11% in 2024, Driven by Labour Expenses

Cement Prices Decline 15%, But Labour Costs Surge by 25%

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The cost of construction in India increased by 11% over the past year, primarily driven by a 25% rise in labour expenses, according to Colliers India. While prices of key materials like cement dropped by 15% and steel saw a marginal 1% decrease, the surge in labour costs stretched construction budgets across sectors.

“Labour, which constitutes over a quarter of construction costs, has seen significant inflation due to the demand for skilled workers and associated training and compliance costs,” said Badal Yagnik, CEO of Colliers India.

The residential segment experienced the sharpest cost escalation due to a growing focus on quality construction and demand for gated communities. Meanwhile, commercial and industrial real estate remained resilient, with 37 million square feet of office space and 22 million square feet of warehousing space completed in the first nine months of 2024.

“Despite rising costs, investments in automation and training are helping developers address manpower challenges and streamline project timelines,” said Vimal Nadar, senior director at Colliers India.

With labour costs continuing to influence overall construction expenses, developers are exploring strategies to optimize operations and mitigate rising costs.

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Concrete

Swiss Steel to Cut 800 Jobs

Job cuts due to weak demand

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Swiss Steel has announced plans to cut 800 jobs as part of a restructuring effort, triggered by weak demand in the global steel market. The company, a major player in the European steel industry, cited an ongoing slowdown in demand as the primary reason behind the workforce reduction. These job cuts are expected to impact various departments across its operations, including production and administrative functions.

The steel industry has been facing significant challenges due to reduced demand from key sectors such as construction and automotive manufacturing. Additionally, the broader economic slowdown in Europe, coupled with rising energy costs, has further strained the profitability of steel producers like Swiss Steel. In response to these conditions, the company has decided to streamline its operations to ensure long-term sustainability.

Swiss Steel’s decision to cut jobs is part of a broader trend in the steel industry, where companies are adjusting to volatile market conditions. The move is aimed at reducing operational costs and improving efficiency, but it highlights the continuing pressures faced by the manufacturing sector amid uncertain global economic conditions.

The layoffs are expected to occur across Swiss Steel’s production facilities and corporate offices, as the company focuses on consolidating its workforce. Despite these cuts, Swiss Steel plans to continue its efforts to innovate and adapt to market demands, with an emphasis on high-value, specialty steel products.

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Concrete

UltraTech Cement to raise Rs 3,000 crore via NCDs to boost financial flexibility

UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore

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UltraTech Cement, the Aditya Birla Group’s flagship company, has announced plans to raise up to Rs 3,000 crore through the private placement of non-convertible debentures (NCDs) in one or more tranches. The move aims to strengthen the company’s financial position amid increasing competition in the cement sector.

UltraTech’s finance committee has approved the issuance of rupee-denominated, unsecured, redeemable, and listed NCDs. The company has experienced strong stock performance, with its share price rising 22% over the past year, boosting its market capitalization to approximately Rs 3.1 lakh crore.

For Q2 FY2025, UltraTech reported a 36% year-on-year (YoY) decline in net profit, dropping to Rs 825 crore, below analyst expectations. Revenue for the quarter also fell 2% YoY to Rs 15,635 crore, and EBITDA margins contracted by 300 basis points. Despite this, the company saw a 3% increase in domestic sales volume, supported by lower energy costs.

In a strategic move, UltraTech invested Rs 3,954 crore for a 32.7% equity stake in India Cements, further solidifying its position in South India. UltraTech holds an 11% market share in the region, while competitor Adani holds 6%. UltraTech also secured $500 million through a sustainability-linked loan, underscoring its focus on sustainable growth driven by infrastructure and housing demand.

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