Sectors
Cement

Cement

The world cement sector has followed a course parallel to the recovery and growth in the world economy in 2018, following the decline experienced in the previous year. It is foreseen that cement production, which has shrunk by 1.5 percent in 2017, will increase to 4.15 billion tons in 2018 and close the year by 0.9 growth.

The outstanding achievements of Limak Cement have been as follows in its nineteenth year:
First largest group in total asset size and second in capacity listing in the sector in Turkey,
In the top 91st rank among all companies and second in the cement sector according to the Top 500 Industrial Organizations of Turkey researches prepared by İstanbul Chamber of Industry (ISO),
12 cement factories, 23 ready-mixed concrete plants and 1 Pumice Block plant operational in Turkey and Africa,
Experienced investment and finance staffs who have been able to fit 7 rehabilitation/capacity increase and 6 new investment projects within the last ten years, implementing the latest innovations in the global cement sector with the most effective project financing solutions,
Operations and investments continued in 4 different countries, largest Turkish investments in two different Sub-Saharan African countries,
One of the three largest producers of Mozambique, and the sole local producer that has received a product quality certificate: “Best Industrial Investment Made in 2014-2017 Award”,
The largest foreign capital investment of the country with the current capacity of the Ivory Coast factory, the second investment taken into operation in Sub-Saharan Africa,
Competent, young and dynamic staffs employed in Turkey and Sub-Saharan Africa,
3 ready-mixed concrete R&D centers with international accreditation certificates, projects realized in product development in collaboration with universities,
Projects realized for the first time in the Turkish cement sector with the energy efficiency and clean technology funds of the World Bank and European Investment Bank,
Low NOx emission rotary kilns with calcinators taken into operation for the first time in the Turkish cement sector,
First rank among integrated cement factories in Turkey in the low energy consumption listing, according the Ministry of Energy and Natural Resources data,
First integrated cement factory holding a GOLD Certificate (2 GOLD and 1 SILVER certificates),
Full compliance with the Sustainable Growth Objectives published by United Nations,
“Most Environment Friendly Firm” in Turkey in 2018 award by the Ministry of Energy and Natural Resources, as Limak Cement Group,
Compliance with the current versions of the integrated management systems in the fields of environment, energy, quality, occupational health and safety,
Domestically and internationally traceable, institutionalized and transparent organization with the SAP Hana investment made for the first time in the Turkish cement sector,
 • Trade volume growing in the Asia, Africa and Turkey triangle with the trade company established abroad; trade structure enriched by commodity swaps.

Limak Cement, which has operations in Turkey, Mozambique, Ivory Coast and Dubai, continues the quest for continuous and balanced growth opportunities in all geographies. This growth strategy is also supported by product diversity.

Limak Cement currently has 9.4 million tons clinker and 17.6 million tons cement production capacity, with 12 cement factories, 23 ready-mixed concrete plants and 1 Pumice Block plant spread throughout Turkey.

According to the data of the Turkish Cement Manufacturers’ Association, 62.6 million tons of cement has been sold as of the end of October 2018, and the 2018 end-of-the-year expectation is predicted as 71 million tons.

The increase in the prices of petroleum coke and other fossil fuels, the exchange rates and energy costs in 2018 have adversely impacted the profitability ratios of the sector. Limak Cement aims to minimize the adverse reflections on the costs by both accelerating alternative fuel system investments (reducing the use of fossil fuels) and changes in the fossil fuel supply chain.

The infrastructure and urban transformation projects continued in our country with incentive applications have somewhat ensured dynamism in the group’s sales. On the other hand, the cement and concrete requirements of İstanbul Airport, which will be the world’s largest airport, and the ongoing high-speed train and motorway projects associated with it have been satisfied by the Limak Cement, with the special products it has provided.

While the cement production of the Group has decreased by 7 percent as compared to the previous year, clinker production has maintained the figure in 2017. During this period, approximately 2 percent of the produced cement has been exported. Again, a decrease by 6 percent in domestic cement sales and 37 percent in cement exports has been experienced in 2018, while 2017 figures have been maintained in clinker exports.

The Group has continued its activities in the ready-mixed field, primarily by growing with the franchise model also in 2018. The ready-mixed concrete sales volume has materialized as 3.2 million cubic meters as of the end of 2018 and a sales volume of 3.5 million cubic meters is targeted in 2019.

The sales volume of the Kilis Pumice Block plant, which has been established within the scope of the studies of the Group aimed to expand the product range with alternative construction materials and continues its operations since 2015, has increased by 8 percent in 2018 as compared to the previous year.

Limak Mozambique Cement, the first international cement investment of the Group, operates with a cement production
 
Limak Group of Companies Annual Report capacity of 700,000 tons/year, and has branded under the name of “Limak Cimentos SA”. The current production line installed at the factory has been designed as capable of increasing the capacity to 1,500,000 tons/year.

It has managed to have its name heard in the country with the quality, environment, occupational health and safety, full legislation compliance and compatible working standards that have been implemented since the date it has been taken into operation. The factory has substantiated that it has increased the success achieved with product quality by the sales it has increased as compared to the previous year.

The “Best Industry Investment Made During 2014-2017 Award”, which is given to the best companies in their fields as based on criteria such as production, investment, exports and is the most prestigious award in the country, has been given to Mozambique Cement by a ceremony held at FACIM that is the largest International Fair of Mozambique.

Limak Ivory Coast Cement project, the investments of which have been started in 2015, has been completed and has started to operate in December 2018. The Ivory Coast Grinding-Packing Plant has a production capacity of 1 million tons of cement and 1 million m³ ready-mixed concrete and has cost approximately 65 million Euros; it is the fourth factory investment that Limak Cement Group has realized with its own human resources.

An Integrated Management System, including the OHSAS 18001 Occupational Health and Safety Standard, is implemented at all cement factories. The Group aims to go beyond compliance with legal legislations, by the international management systems it implements, and continuously improve its OHS performance by OHS boards, risk assessments, drills and regular trainings.

The Group has continued to reinforce the significance it attaches to the health and safety of all permanent and subcontractor employees, who are directly or indirectly employed within its organization, with the “zero accident, zero fatality” objective also in 2018.

Limak Balıkesir Cement factory has ranked first in the Cement Sector OHS Knowledge Contest, organized by the Cement Industry Employers Union (ÇEIS) within the scope of the World OHS Day Events and held with the participation of approximately 4,000 employees from all cement factories in Turkey in general.

Limak Cement Group has adopted an Integrated Management System in the group in general, in order;
To make more effective planning with the assistance of a common documentation system,
To define common objectives that are measurable and have added value, make benchmarking for realization percentages and process management, identify strengths and weaknesses, share correct and incorrect practices over a single platform,
To ensure the use of common procedures, minimize unnecessary resource use, increase employee motivation by corporate synergy and common objectives,
To measure improvement in organizational effectiveness by comparing with global standards.
 
The Group has continued to implement international management standards in the fields of environment, energy, quality, occupational health and safety. Studies on compliance with the current versions of ISO 14001 Environment Management System and ISO 9001 Quality Management System, which have been issued in 2015, have also been carried out collectively in the Group in general.

Limak Cement Anka Branch, which has been taken into operation at the end of March 2018, has received the title of being the first cement factory in Turkey holding an ISO 45001 certificate.

Limak Cement Group has an action agenda primarily in 5 fields within the scope of its sustainability activities. These may be classified as:
CO2 & Environment Protection,
Responsible Fuel and Raw Material Use,
Employee Safety and Health,
Emission Monitoring and Reduction,
Local Impact on Soil and Community.

Limak Cement Group has participated in the Holding’s sustainability reporting process, in compliance with the “Core” option of the GRI Standards developed by Global Reporting Initiative (GRI), also this year and continued its activities within this context.

Objectives


To be the group with the largest capacity in the sector domestically,
To increase the trade volume of the international trade company to 1 million tons in 2019,
To ensure the continuity of the studies on compliance with the 2030 Sustainable Development Objectives published by United Nations and the World Bank, and take an active part in the GRI reporting process,
To reduce the environmental impacts of the products, and within this context, to reduce the cement clinker ratio, create awareness on studies for the optimization of mineral additive cement in special and high class ready-mixed concrete projects, to make environmental product declarations,
To continue to invest in information technologies, and establish a common and safe information management system in all geographies being operated at,
Within the scope of the social responsibility projects, to continue to assume missions in the social and cultural area by activities such as building student dormitories, supporting sports clubs, building coordination centers for the handicapped, sponsoring culture and art festivals, trip organizations with our veterans and their families, blood and stem cell donations to the benefit of the Red Crescent, in all geographies we are able to access,
To ensure the continuity of the “zero accident, zero fatality” objective that is adopted all the time with the importance we attach to the health and safety of our employees and subcontractor employees,
To rear qualified personnel who are developed technically and academically and will add value to the cement sector in the long- term.
 


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