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Whither cement industry in Bangladesh

Ershad Khandaker | Tuesday, 15 July 2008


The cement industry in Bangladesh is pivotal because it is manufacturing in its core form as far as the supply chain management is concerned. Cement being the major component in building construction industry, the industry itself has a great strategic value. In Bangladesh, the cement industry and its current shape makes a great reading for a case study of the evolution of a market driven manufacturing industry. It's this developing country with a bourgeoning economy, leading multinational companies with financial power and technological acumen backed by global reputation and local companies catching up quickly by adopting slick marketing strategies and countrywide distribution channel.

The multinational players are Lafarge the world's largest cement company and Cemex the second largest, and Holcim and Heidelberg Bangladesh Ltd. with their Scancement and Ruby cement brands are the other major multinationals players. The foreign companies have a combined market share of 30%. Amongst the local players Shah Cement, Fresh , Crown, Seven Circle, Royal and Aramit are the major cement companies. The local players while overawed initially, quickly gained ground by enhancing their supply chain management, distribution and marketing. They now have the major share of the market with Shah cement taking the largest share amongst them.

The cement industry is unique because of its importance in the development of the human civilisation. Worldwide, cement is one of the few commodities that would be considered as epoch making, a major component in building the growth and evolution of the human race and the human habitat in its modern era. The 18th century is particularly important in the history of the cement industry. In Europe limestone was being researched to find out why some limestone have hydraulic properties . The Frenchman Luis Vicat began a study of Hydrolic lime 1812 . In 1818 an English patent was granted to Maurice Leger for "Improvement method of making lime" (Leger used Vicat's method). The invention of Portland Cement is generally credited to Joseph Aspedin, an English Bricklayer in 1824. It involves a double kilning such as was described by Vicat. In 1838 a young chemical engineer, Isaac Johnson, burned the cement raw material at high temperature until the mass was nearly vitrified producing the modern Portland Cement. The German Chemist Wilhelm Michaelis proposed the establishment of cement standards in 1875. The earliest kiln is one of William Aspedin's bottle kilns from Robins & Aspedin factory at Northfleet.

James Frost started production of "British Cement" in 1822 at Swanscombe based on a patent for "a new cement or artificial stone". After 1900 there was rapid growth in both rotary kiln and auxiliary equipment technology in the United States. Coal grinding mills were developed and coal burning in cement kilns became the predominant combustion process in the industry. All the equipments related to cement production crusher, raw mill, belt conveyors, bucked elevators were improved.

Cement raw material are limestone, shells or chalk, and shale, clay, sand or iron ore, usually mined from a quarry close to the plant where they undergo reduction using primary and secondary crushers. When the reduced materials reach the cement plant they are proportioned to create a cement of specific chemical composition. Much work is being done on the use of alternative raw materials - often the by-products of other industrial processes. These can minimise the effects of quarrying, reduce the impact of the cement plant on the local environment and enable the cement industry to become a major player in materials recycling.