Polysius in Moscow Dynamic order intake trend.
After the disintegration of the Soviet Union in 1991, the generally expected investment boom failed to materialise in the former member states despite their political reform efforts.
The minerals industry, however, is one of the few exceptions. Owing to an expansion of the raw material processing capacities, investments were already being made in this sector in the nineties. Polysius obtained significant orders for a diamond ore grinding plant in Yakutia, a phosphate ore concentration plant in Uzbekistan and a hot metal desulphurisation plant in the Urals.
In the cement industry, on the contrary, low prices and surplus capacities impeded the long-overdue modernisation.
Since the late nineties, the economic situation in Russia has stabilised increasingly. Thanks to the high prices paid for oil, natural gas and metals on the world market, Russia has been blessed with record revenues. Furthermore, its economy has been enjoying high and continuous growth since 1999.
Due to the economic upturn, demand for cement has increased as well. While an average growth rate of roughly 7 % is expected in the east European countries, Russia's growth rate amounts to approx. 10 %, which is considerably above average. Moreover, the government is planning to increase public investment in both housing and the expansion and improvement of the infrastructure. The high demand for cement can no longer be met by the existing production capacities.
However, the existing plants can only be optimised to increase production up to a certain point.
More than 85 % of the Russian cement production lines are operated on the basis of the obsolete and uneconomical wet process method. In consideration of the cost-benefit ratio, modernisation therefore usually consists in the construction of a new plant or, at least, in replacing acomplete kiln line - including the raw material preparation system - with a new one. The increase in the price of energy will speed up the closing down of old plants and the changeover to dry-process technologies.
Since 2005, Polysius has been awarded a number of contracts: modernisation of a clinker cooler and supply of laboratory automation equipment for Eurocement in Lipetsk, automation units for Vostokcement in Spassk and for Kysylkumcement in Uzbekistan, as well as new kiln plants for the Ukrainian lime industry.
At the end of 2007, the optimised kiln line 8 of the Michailovka plant run by Sebrijakovcement was put into operation. Thanks to several modifications of the kiln line and to the modernisation of the clinker cooler, clinker production was increased from 1,700 tpd to 2,400 tpd.
Iskitimcement, too, has decided to build a new kiln line with a throughput of 3,500 tpd clinker in partnership with Polysius.
The Irish CRH Group is going to build a new clinker production line, fitted out with ultramodern components supplied by Polysius, in its Podilsky Cement plant inKamenets-Podilsky. With a production capacity of 7,500 tpd, this plant is currently the largest one in the Ukraine. Production is to start in 2009.
Both the new line in the Ukraine and the plant in Iskitim, Siberia, are equipped with state-of-the-art technologies. They have been designed for utmost energy efficiency; their emission rates meet the highest standard.
While in the beginning, demand was mainly for individual machines and components, there is now an increasing demand for whole plants.
To be able to quickly and competently respond to the demands of this market, Polysius set up a subsidiary in Moscow in March 2007 which supports customers all over the Commonwealth of Independent States.