One of the leading cement plants in Georgia suffered from outdated equipment and energy comprised a large share of production costs.
The plant decided to invest in the modernisation of its production process and reduction of energy consumption to maintain the best production practices and stay competitive on the market.
The company addressed the Facility for a loan and advisory package. The project’s engineering team analysed various aspects of investment, primarily the potential for energy savings, financial-technical parameters and risks. With the 30-40 year old grinding mills, engines in poor condition, outdated pressure and voltage indicators with lack of capacitors and a classifier at the production line, the potential for optimisation and savings was substantial.
The project, as suggested by the consultant team, focused on replacement of the ball mill, introduction of a classifier and replacement of the air compressor.
The $1.5 million investment allowed the company to improve the energy performance and increase reliability of the production cycle. The implemented measures generate $308,000 cost savings per year due to the reduction of electricity consumption by 41 per cent. The investment will repay itself out of energy savings in six years, turning the future cash-flows into company income for years to come. This is not including the operational and maintenance costs reduction, coming from fewer repairs and improved production.
In addition, such large energy savings lead to significant CO2 emission reductions, beneficial for the local community and environment and on the global level.
With such improvements and savings, the company’s future has a better prospective, contributing to local employment and the economy.