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Optimisation is about doing more with less

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Rizwan Sabjan, Head – Regional Sales Enablement, FLSmidth, sheds light on the use and implementation of connectivity-based technologies and AI for the smooth transitioning of the cement industry from manual to automated processes that make cement plants more sustainable and greener.

Tell us about the role of technology in increasing the productivity of cement. Which of your equipment can contribute to the same?

Recently, the cement industries have seen a change in what shapes growth. The spotlight has shifted from increasing capacity to enhancing productivity. Digitisation has considerable advantages to make this shift possible. To support our customers, we are building a growing portfolio of digital solutions that connect, monitor and optimise performance, in response to the demands of this changing business landscape. We call it FLSmidth ENABLR, because it enables customers to simplify their operations and improve productivity.

Which technology is underrated and less used by cement makers, but is likely to prove beneficial in the long run?

Advance Process Control systems are very often seen as one of the main drivers needed to reach the dream of autonomous operations. In this context, it’s commonly portrayed in the media that artificial intelligence (AI) is replacing APC systems. But this wrongly assumes that AI is already a synonym for fully autonomous operations. This kind of misrepresentation does not help, as such fully autonomous continuous-process plants are still not that close to reality. The ability of AI technologies to continuously adapt to changing conditions to find the optimal operating parameters and targets is one of the key areas in which AI can improve the ability of APC systems to optimise cement processes.

Cognitive augmentation: The ability to gather, analyse and combine various data streams in real time can bring relatively quick benefits from operational and safety perspectives. One example would be building new virtual sensors to replace unreliable or unavailable signals, particularly when the instrumentation is placed in risky areas or is often out of service.

Smart controllers: In certain contexts, controllers, such as linear and non-linear MPCs or fuzzy, can be enhanced and complemented by virtual models of machinery or processes, known as digital twins. If the digital twins are done well, they can be used to find the controller’s optimum parameters, which leads to more stable processes, achieves higher production and quality levels, or decreases the amount of energy or water used.

Dynamic adaptiveness: Many cement processes are by nature nonlinear and time-varying: this means that actions that were optimal to achieve specific goals yesterday (or even an hour ago) may be suboptimal or even inefficient now. A clear example of this is the cement kiln, where a strong push to substitute fossil fuels with alternative fuels, in as high a ratio as possible, makes stabilisation and optimisation a challenging task, both for human and expert systems.

Most equipment and machinery in plants are often regularly inspected visually. Can these inspections be made more precise and pre-empt damage to save downtime and costs?

With equipment in continuous use, damage can happen at any time. While visual inspections are important to provide broad, contextualised operational insights, relying only on intermittent site visits puts customers at the risk of missing the early warning signs that could enable them to drastically reduce both downtime and expenses. Online condition monitoring is a continuous service that enables customers to detect potential failures well in advance, giving them plenty of time to take preventative action and avoid actual failure.

All these symptoms warn the customers that damage is imminent. In many cases, when the visible symptoms appear, it is already much too late for an ‘easy’ fix. By contrast, sensors on customer equipment are able to capture data that may be otherwise ‘invisible. Our online condition monitoring services connect this data to the cloud where it is continuously monitored and trended. If something is wrong, an alarm notifies our team of experts who are able to analyse the data remotely and develop a recommended action plan to rectify the fault well ahead of it escalating. It’s a low-stress, low-cost, low-risk approach to maintenance that offers high returns.

Kanika Mathur

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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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