Sectors
Cement

Cement

Limak Cement, which has operations and investments in countries such as Turkey, Mozambique, Ivory Coast and Dubai, continues to pursue opportunities for continuous and stable growth in all geographies. This growth strategy is also supported by product diversity.

Limak Cement, in its eighteenth year:

• First largest group in active size and second in capacity listing in the sector in Turkey,

• Second in the sector according to the Top 500 Industrial Organizations of Turkey researches prepared by Istanbul Chamber of Industry (İSO),

• 11 cement factories, 24 ready-mixed cement 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 by 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, sole local producer that has received a product quality certificate,

• 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 calcinator taken into operation for the first time in the Turkish cement sector,

• First rank among integrated factories in Turkey in the low energy consumption listing, according to the 2016 data of the Ministry of Energy and Natural Resources,

• First integrated cement factory holding a GOLD Certificate,

• Compliance with the Sustainable Growth Objectives published by United Nations,

• Compliance with the current versions of the integrated management systems in the fields of environment, energy, quality, occupational health and safety,

• Traceable organization that has become more institutionalized and transparent 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 established trade company; trade structure enriched by commodity swaps.

Operations in Turkey

Limak Cement currently has 8 million tons clinker and 14.9 million tons cement production capacity with 10 dement factories, 3 of which are integrated and 3 are grinding packing facilities, 24 ready-mixed concrete plants and 1 pumice block plant spread throughout Turkey. According to the data of the Turkish Cement Manufacturers’ Association, 66 million tons of cement has been sold as of the end of October 2017, and the 2017 end-of-the-year expectation is predicted as 77 million tons.

 Cement production has increased by 3.1% and clinker production by 2.8% during the first 10 months of 2017 as compared to the same period in the previous year. Approximately 10% of the cement produced during this period has been exported. Similarly, an increase by 4.4% has been achieved in domestic cement sales, 2% in cement exports and 33.8% in clinker exports during the first 10 months of 2017.

On the other hand, the increase in the costs of fossil fuels and thus energy has impacted the profitability rates of the sector negatively although the cement production and sales figures have increased in the sector in general in 2017. Limak Cement aims to minimize the negative reflections on the costs both by accelerating its investments in alternative fuel systems (reducing the use of fossil fuels) and changes in the fossil fuel supply chain.

Limak Cement Group has achieved the highest historical figures in turnover, sales and clinker production data in 2017. The infrastructure and urban transformation projects that have been restarted with the effective incentive measures in the southeast of the country have influenced the group’s sales positively. On the other hand, the cement and concrete requirements of Istanbul New Airport, which will be the world’s largest airport, various high-speed train and expressway projects and high-rise residential projects needing special products are being satisfied by the Limak Cement brand.

The Group has achieved a growth by 137% as compare to 2016 in clinker exports with the trade company taken into operation in 2017, as well as exhibiting a performance above the sector average by growth rates of 5.3% in clinker production and 10.7% in cement production.

Limak  Cement Group has continued its activities in the ready-mixed field, primarily by growing with the franchise model also in 2017. The ready-mixed concrete sales volume has materialized as 2.7 million cubic meters as of the end of 2017 and a sales volume of 3 million cubic meters is targeted in 2018.

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 10% in 2017 as compared to the previous year.

Mozambique Operations

The factory established by Limak Cement in the Matola port region of Maputo, the capitol of Mozambique, over an area of 80,000 square meters, has started its sales activities during the last quarter of 2016. The factory, with a cement grinding capacity of 0.7 million tons, has been able to reach a market share of 25% in the region at the end of its first operation year. The Group currently poses as one of the important cement manufacturers in the country.

The Group has medium- and long-term investment plans aimed to establish concrete plants, construction materials and integrated cement factories in this country, which is one of the important entrance gates of East Africa holding the limited natural gas and  coal reserves in the world.

Continued Investments

• New Anka Integrated Cement Factory - Ankara

The works are continued at full speed for commissioning the Anka Integrated Cement Factory investment, with 1.8 million tons production capacity continued in Polatlı district of Ankara; and it is planned to take the facility into operation during the first quarter of 2018.

• New Kilis Integrated Cement Factory - Kilis

The financing process of the Kilis Integrated Cement Factory investment, at a strategic location near the Syrian border, with a production capacity of 2.3 million tons, has been completed in 2017; construction and assembly activities will be accelerated in 2018. The factory is targeted to be taken into operation during the second quarter of 2019.

• Balıkesir New Kiln Line Project - Balıkesir

The necessary investment studies have been started in order to increase the clinker production capacity of the factory, which currently has a clinker production capacity of 925 thousand tons, to 1.8 million tons by building a second rotary kiln of the same capacity.  The new rotary kiln line is planned to be taken into operation in 2019.

• Trakya Alternative Fuel Supply System Investment - Pınarhisar

The equipment supply contract has been signed for the alternative fuel utilization system in Trakya  Cement in 2017, and it is planned to implement the project and start the use of alternative fuel in 2018.

• Abidjan Cement Factory - Abidjan - Ivory Coast

The grinding-packing and ready-mixed concrete factory being established in Abidjan city (Limak Africa SA) has a capacity of 1 million tons of cement and 1 million cubic meters of ready-mixed concrete and is planned to be taken into operation in the last quarter of 2018.

Our Objectives

• To be the group with the largest capacity in the sector, after the investments continued in Turkey are completed in 2019,

• To reach a capacity of 1.7 million tons in Sub-Saharan Africa after the investment in Ivory Coast is completed this year,

• To increase the trade volume of the international trade company to 1 million tons in 2019,

• To ensure the continuity of compliance with the 2030 Global Growth 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 secure 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 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.

Occupational Health and Safety

Limak Cement Group has supported its zero work accident objective that it also maintained in 2017 both by trainings and theatral events repeated at all out workplaces throughout the year, and the occupational safety audit activities that have been established. Integration studies have been completed in order to implement and monitor all requirements of OHSAS 18001 and the other related legislations in similar forms and formats throughout the Group. Within this context, activities such as health supervisions, periodical examinations and controls, use of personal protective equipment, emergency drills, risk analyses, etc. have been included in the Integrated Management System documentation and uniformity has been achieved in the practices.

Information Technologies

Following the successful completion of the studies to set up the SAP Hana system so as to cover the entire group in 2016, the Mozambique Factory, which has been taken into operation, has been ensured to be fully integrated with the SAP and the central system. Furthermore, a structure that can be managed online  has been achieved in the fields of financial and operational legal legislations, language support, online scale automation and central costing.

 Integrated Management Systems

ISO 9001 Quality Management System, ISO 18001 Occupational Health and Safety Management Systems, ISO 14001 Environment Management System and ISO 50001 Energy Management System are implemented effectively within the Limak Cement Group. Within the scope of the globalization objectives, the processes, operations, organization structure, business culture  and integrated management systems have been commonized under a single roof. In this way, it has been possible to increase the corporate synergy and measure the development of organizational effectiveness by making comparisons at global standards. The Group performs process management with effective policies within the scope of Quality, Environment, Occupational Health and Safety and Energy Management, in line with its sustainability vision and mission.

Sustainability Activities

Limak Cement Group continuously sets new objectives within the scope of the sustainability activities and exerts maximum efforts to achieve these objectives.  These objectives include;

• To implement projects such as energy efficiency to control emissions and reduce CO2,  increase the use of alternative raw materials,

• To rehabilitate areas that have completed their economic lives in the raw material sites and increase biodiversity,

• To ensure effective water management,

• To monitor the suppliers more effectively in the procurement processes (by our contracts and specifications) on whether they provide products and services in compliance with the environmental and labor criteria; to add regulatory articles into the procurement contracts concerning environmental, labor and human rights standards,

• To build effective communication with all stakeholders, to increase the number of stakeholder meetings,

• To continue sustainable procurement and logistics activities, to prefer equipment, systems and services that are in compliance with the system and have high efficiency in the procurements, new projects and designs related with energy.

Limak  Cement  will continue to ensure the sustainability of its high performance also in 2018, by establishing businesses and organizations that are environment friendly, do not compromise quality, are customer focused and act with environmental, occupational safety and responsibility awareness in all geographies it operates, and by inducing trust in its business partners, and internal and external stakeholders.

www.limakcement.com