Binani Cement identified China as a pivotal market to expand their operations. In 2007, they entered into a 70:30 joint venture with M/s. Rizhao Rongan Construction Materials Co. Limited, a Clinker manufacturing unit in Shandong. The new company is called Shandong Binani Rongan Cement Co. Limited (SBRCCL). SBRCCL exports its products to the U.A.E., and domestic markets in China.
The SBRCCL plant is spread over an area of approximately 0.49 million sqm. It is strategically located within close proximity to two operating ports, Rizhao and Lanshan and the upcoming port of Dongjiakou. In 2008, the Binani Group upgraded the capacity of this plant from 1100 to 1600 TPD with addition of a 0.3 MTPA Cement Grinding Unit. With the help of technological enhancements, the clinkerisation is currently running at 140% capacity producing 0.5MTPA of cement.
In 2010, the Binani Group increased its shareholding in this company from 70% to 90% by investing US$100million. In 2011, SBRCCL completed its Brownfield expansion of 2.5 MTPA clinkerisation plant bringing the total capacity to 3.0 MTPA. The limestone required as a raw material for the new plant is sourced from a mine located 200 mtrs. The limestone reserves in this mine would last till 2014, after which limestone from new mines will be extracted. The plant has been designed for running on all kinds of coal including Indonesian High Moisture coal mix to help keep its energy cost under control.
SBRCCL also has a 12MW waste heat recovery system that produces 30% of SBRCCL’s power requirement. This helps the company maintain its power consumption well within the international norms of emission as well as make huge savings on its power bill.
SBRCCL has received awards for its good performance and excellent quality, such as Best Enterprise of Provincial Cement Quality, Excellent Enterprise of Cement Quality, and Excellent Credit Industrial Enterprise.
SBRCCL is setting up a 3.2 km limestone conveyor system, which is scheduled to be implemented by Jun 2013. This conveyor will bring limestone for the plant from the new mines. A greenfield split grinding unit has been planned 75kms from the clinkering plant in proximity to Dongjiakou Port. The location is just 70kms from Qingdao, a major consumption center for cement. The company has recently obtained environmental clearance and is now awaiting License for its planned state of the art 1.4MTPA Vertical Grinding Unit (VRM). The company will invest close to RMB180 million for this grinding facility.
The new plants will supply clinker to Binani’s grinding units in China, UAE, Africa and East Coast of India and increase the Binani’s brand presence in these areas. Estimated limestone reserves close to 150 million tons ensure supply for the next 25 years. Waste Heat Recovery will entail substantial cost savings to the company and will decrease the emission of greenhouse gases. The plant is one of the most efficient plants in the region.