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Increasing Use of Supplementary Cementitious Materials to Achieve Carbon Reduction Targets

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Jens Mose and John Terembula, Product Line Management, FLSmidth A/S, discuss why Vertical Roller Mills (VRM) are the best grinding solution for SCMs, in this second part of a three-part series looking at how Supplementary Cementitious Materials (SCM) can help cement manufacturers reduce carbon emissions.

Current examples of SCM adoption
India is a successful adopter of SCMs, with an average clinker factor of 0.71 in 2017. This is largely thanks to the introduction of standards for composite cements in 2015, as well as the widespread availability of fly ash from thermal power plants. Portland Pozzolanic Cement (PPC) had approximately 65 per cent market share in 2017, and the clinker factor of PPC was also improved from 0.68 in 2010 to 0.65 in 2017. Portland Slag Cement (PSC) makes up about 10 per cent of the market and also reduced clinker content in that time from 0.55 to 0.40. Meanwhile, ACC has achieved a clinker factor as low as 44 per cent through the use of fly ash from power plants and slag from steel production.
In the sub-continental India region, FLSmidth has supplied grinding systems with all types of mills. The most common grinding systems installed over the last 10 years are VRM or HRP with ball mill in semi-finish arrangement. One example is the Guinness World Record holder, the largest VRM for cement grinding at Shah Cement in Bangladesh. That mill regularly produces both PPC and PSC Cements.
Throughout Asia, a wide range of blended cements are made encompassing many different additive materials including trass, which is very hard-to-grind overburden from the quarry. Stable/reliable operation has been proven in the OK Mill even with this difficult material.
In other parts of the world, the uptake of SCMs varies. For example, in Brazil the nationwide average clinker-to-cement ratio is below 70 per cent , with blast furnace slag from steel mills the most widely used SCM . The country is targeting reductions in clinker content to 59 per cent in 2030 and 52 per cent in 2050 and will need to increase the use of limestone filler and calcined clays to meet these targets.
In Brazil, the VRM has been the standard for new cement grinding for the last 10+ years, with OK Mills accounting for 28 per cent of the country’s total cement production in 2015.
Meanwhile, in the US, the use of SCMs by cement manufacturers is on the rise , as more cement plants adopt ASTM C595 Standard (American Society for Testing and Materials), which allows up to 15 per cent limestone within Type 1L or Portland Limestone Cement (PLC). PLC is currently seeing a dramatic upward trend, thanks to widespread acceptance by end users like the Department of Transportation and the Federal Aviation Administration.

Which mills are best for SCMs?
The grinding operation is critical to the success of SCMs, to achieve the necessary particle size distribution. Some materials can be ground together with the rest of your cement mix (so-called ‘intergrinding’), while others may benefit from a separate grinding operation. Likewise, water demand (to increase workability) can present another sustainability concern.
In terms of the best mill type, the answer is almost always VRM. Over the last few decades, the industry has been gradually moving towards the use of VRM for both raw and cement grinding, due largely to the reduced energy consumption compared to ball mills: a saving of between 30 and 50 per cent. This transition will prove crucial as the adoption of SCMs increases, from a practical as well as economic and environmental perspective. VRM provides much greater flexibility to grind several different materials, to switch between different cement mixes, and to adjust to changing material characteristics – all while protecting quality.
For example, FLSmidth has a customer using the OK Mill to grind 100 per cent slag with raw feed containing more than 20 per cent moisture to produce moisture levels less than 1 per cent. This is only possible thanks to the drying capacity of the VRM. This level of flexibility is imperative to SCM adoption.
Ultimately, product quality is defined by cement strength development and setting times. To achieve the best result, you need optimal particle size distribution and dehydration of the gypsum within the cement. And for that, the precise operational controls of the VRM are a clear advantage over other mill types, enabling you to optimise the system’s temperature profile, mill airflow, separator speed and grinding pressure for optimum efficiency and productivity.

1- https://docs.wbcsd.org/2018/11/WBCSD_CSI_India_Review.pdf
2- Weston, J. ‘Brazil gives OK to VRM’, International Cement Review, 20 June 2016
3-https://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/infrastructure/pdfs/pathways_low_carbon_economy_brazil.ashx
4- http://snic.org.br/assets/pdf/roadmap/roadmap-tecnologico-do-cimento-brasil.pdf
5- https://pubs.usgs.gov/of/2005/1152/2005-1152.pdf p.10

You can find part one in the August issue of Indian Cement Review and part 3 in the upcoming October issue.

(Communication by the management of the company)

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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