Cement production is mainly depends on raw material acquisition
and other socio, economic and geographical factors. Therefore, cement plants
are not distributed worldwide in the same way.

According
to Statista Dossier about the U.S. cement industry, total of 4200 million
metric tons of cement were manufactured in worldwide in 2016, and more than
half of this cement was produced by china (57.38%). Currently china produces
more than half of the global cement. Global cement production is expected to
increase from 3.27 billion metric tons in 2010 to 4.83 billion metric tons in
2030.

Table
1.1 Global cement production (Source: https://www.statista.com/statistics/267364/world-cement-production-by-country/
)

Country

Cement production in million metric tones

2011

2012

2013

2014

2015

2016

China

2100

2219

2420

2480

2350

2410

India

240

270

280

260

270

290

United State

68.6

74.9

77.4

83.2

83.4

85.9

Turkey

63.4

63.9

71.3

75

77

77

Brazil

64.1

68.8

70

72

72

60

Russia

55.6

61.5

66.4

68.4

69

56

Iran

61

70

72

65

65

53

Indonesia

30

32

56

65

65

63

South Korea

48.3

48

47.3

63.2

63

55

Vietnam

59

60

58

60.5

61

70

Saudi Arabia

48.4

50

57

55

55

61

Japan

51.3

51.3

57.4

53.8

55

56

Egypt

44

44.6

50

50

55

55

Mexico

35.4

35.4

34.6

35

35

Thailand

36.7

37

42

35

35

Pakistan

32

32

31

32

32

Germany

33.5

32.4

31.3

32

32

Italy

33.1

33

22

22

23

 

Graph
1.3 world cement demand (Source: Schneider et al., 2011)

Additionally,
considering the evolution of the production of cement in the last decade, the amount
of production in European countries has decreased, mainly because of the
decline in the building sector as a result of the recent economic situation.
However, in the case of developing countries from Asia and South America, the
amount of production has slightly increased (Alfonso et al., 2013)

Italian cement industry

Italy,
a European country with the area of 301,338 km2 and 60 million
populations. Annual GDP is 1.859 US$ in 2016 (World Bank data, 2016). Per
capita cement consumption is 787kg (The global cement report, 2005)

The
Italian cement industry consists of multinational companies (Italcementi,
Colacem, Cementir, Buzzi, Holcim) and other smaller and medium enterprises that
are functions of both national and local levels. In 2016, there were 62 plants
in the Italian cement industry operating full cycle (33 plants) and grinding
(29 plants) (AITEC, 2017). Italian cement factories are widely dispersed around
the land, therefore, it allows for the consumers to easily access to the final
product.

Figure
1.4 cement plant distribution 2012 (Source: The global cement report

In
terms of production capacity, the top four companies account for over 60% of
national production and the top 11 for more than 80% (Supino et al. 2016). According
to the global cement report 2005, around 36% of national cement was consumed
for the house building industry also 33% for civil engineering purposes and
remaining 31% is used for commercial and industrial activities.

Table
1.2 Major Italian cement ?rms and production percentages (2013). (Source:
AITEC, 2014)

Firm

Number

Plants

%

Italcementi

1

18

21.7

Buzzi Unicem

1

13

17.5

Colacem

1

8

16.7

Cementir

1

4

7.0

Cementi Rossi

1

3

5.2

Holcim

1

2

5.2

Other ?rms

22

31

26.7

Total

28

79

100

 

(Supino
et al. 2016) emphasize the important outlook about the Italian cement industry
over the last decades. They highlight a severe crisis in the Italian cement
industry, because of adverse macroeconomic context and strong domestic dif?culties
recorded in the civil engineering sector, the main market for cement outputs.

Table
1.3 Cement production 2003-2013 (Source: Data are taken from various AITEC
reports 2001, 2002, 2006, 2007, 2009, and 2014)

 
Cement production (Mt)

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

(2003/2013) change

43.5

46.4

46.4

47.9

47.5

43

36.3

34.4

33.1

26.2

23.1

-46.90%

The
Italian cement exporting market is not in a lusty stage, but exporting capacity
frequently increasing. According to the AITEC annual report Italian cement
exporting market achieved 2.6 million tones it was the 5.5% of national
production and it was growing up 8.7% with compared to previous year. Spain is
the main and first export market of Italy. Albania and Malta which are, other dominant
terminus of the Italian export market. Spain imported 67.7% of Italy’s export
flow. However, Italy is the fifth exporter in Europe.

Sri Lankan cement industry

Sri
Lanka is a south Asian island, with the area of 65610 km2 and 21.2 million
people with per capita GDP in 2016 of $3,835 also 2.24 million tons of domestic
cement production (2015) and 204 kg of per capita cement consumption. Since the
civil war ended in 2009, the economy has grown on average at 6.2% a year,
thinking over a peace dividend and a commitment to reconstruction and
development, but there have been signs of a lag in the final three years. The
economy is seen to rise by 4.6% in 2017 and marginally exceed 5.0% in the
medium-term, driven by private consumption and investment. The regime is
dedicated to implementing an ambitious medium-term reform agenda aimed at
improving competitiveness, governance, and public financial management that
would achieve long-term benefits (World Bank data, 2016).

 

 

According to central
bank annual report 2013, Sri Lanka has estimated to be consuming about 5.8
million tons of cement per annum. In the first five months of 2016 Sri Lankan
cement production has been increased 19.7 MT to 1.041 million tons, imports
also rapidly increased 18.4% to 1.88 million metric tons. It indicates the
recovery of the civil engineering sector similar to the economic development. Till first five months of 2016
domestic cement production and imports accretion by 465000 tones, up 18.9% from
earlier to 2,928 million tones. Though, January to May of 2015, production
and imports rise only 4.4% from a year earlier or 103,000 tones to 2.463
million tones. Sri
Lanka’s cement market, is particularly small, ranked 128th out of 141 clinker produced
nations, according to the Global Cement Top 100 Report 2015.

Siam City Cement (Lanka) Limited (INSEE
cement). Produces 1.3 million MT of cement and approximately 640,000 MT of
clinker annually. It has Sri Lanka’s only fully integrated cement plans with
two rotary dry kilns, each with capacity 1100 MT/day in Puttalam and a grinding
station in Galle. Sri Lanka’s annual demand for cement sold is about 5.9
million MT and INSEE cement is a leading participant in the cement market in
Sri Lanka with approximately 38% market share.

Nevertheless, Sri Lanka’s situation is much
inequable from the worldwide cement industry as world trade in cement is hardly
4%, whereas Sri Lanka imports 66% of its requirement either in the form of
cement or cinder. (News, the Sunday Times).

Therefore,
according to a World cement magazine, Sri Lanka become the fourth-largest cement importer in the world. As
well as 75% of clinker is being imported from nearest countries like Pakistan,
Malaysia, India, Vietnam, Thailand, and Indonesia.

Figure
1.5 cement plant distribution in Sri Lanka (Source: The global cement report)

 

 

 

 

 

 

 

 

 

 

 

1.3.2
Description of the cement manufacturing process