Ecuador firm Ucem expanding clinker production

OREANDA-NEWS. October 08, 2015. Ecuador's Union Cementera Nacional (Ucem) plans to build a 2,200 t/d clinker plant that will expand its domestic production from 1,600 t/d to 3,800 t/d.

The new plant, to be built in the central province of Chimborazo, is scheduled to start operations in 36 months and will use electricity and bunker to produce clinker, according to Luis Quinteros, chief of research and development at Ecuador's state-owned Empresa Publica Cementera, which controls Ucem.

Casaracra, a subsidiary of Peru's Grupo Gloria, last month entered a partnership with Ucem in which the Peruvian firm committed to invest \\$230mn for the new clinker plant.

Ucem currently produces 650 t/d of clinker at its existing cement plant in Chimborazo and 950 t/d at its Guapan complex in the southern province of Azogues.

The new plant will increase electricity demand at the Chimborazo complex from a current 10MW to 18-20MW. A maximum of 27 USG of bunker will be required at the planned facility to produce each ton of clinker, Quinteros told Argus.

The fuel will be dispatched by truck from the 20,000 b/d Amazonas (Shushufindi) refinery, located in Sucumbios province in the Amazon oil district.

"Ecuador does not have coal mines or enough natural gas to use them to produce clinker. Importing these fuels would be very costly compared to bunker, which is purchased by Ucem at a \\$0.27/USG subsidized price," Quinteros says.

Ucem also plans to utilize alternative fuels such as used motor oil and marine fuel, starting in June 2016 at Guapan and in November 2017 at Chimborazo with a mix containing 95pc bunker and 5pc used oil.

In addition to the new clinker plant, Ecuador is interested in building a cement complex in Isimanchi, located in the southern province of Zamora Chinchipe, close to the Peruvian border. This plant would supply Ecuador's mining industry, for the construction of new access roads, and government housing programs.

Ecuador's Empresa Publica Cementera is completing feasibility and design studies for the 650 t/d Isimanchi project, which will require a \\$100mn investment. The facility could also enable Ecuador to export cement to the northern part of Peru.

The plant would be connected to Ecuador's national power grid through a 180km 69kV double circuit line, running from the city of Loja to a new substation in Isimanchi. Ecuador does not rule out importing gas from northern Peru to supply the plant, Quinteros says.