In Every Aspect of Life...

Transcription

1 In Every Aspect of Life... ÇİMSA ANNUAL REPORT 2010

2 Contents 02 Agenda of the Ordinary General Assembly 03 Sustainable Life and Cement 05 Financial Highlights 07 Our Vision-Mission-Values 09 Corporate Profile and Milestones 11 The Chairman s Message 15 Board of Directors and Audit Committee 16 Senior Management 17 Members of the Board of Directors 19 Senior Management Team 23 Evaluation of 2010 Cement Sector 27 Domestic Cement Facilities 31 Cement Products 35 International Cement Facilities 37 Ready-Mixed Concrete and Aggregate Facilities and Products 41 International Terminals Investments Marketing and Sales Activities 53 Corporate Development and Human Resources 61 Çimsa s Sustainability Approach 65 Social Responsibility 69 Corporate Governance Principles Compliance Report 77 Consolidated Financial Statements Together with Report of Independent Auditors 147 Addresses 01 Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report

3 Agenda of the Ordinary General Assembly ÇİMSA ÇİMENTO SANAYİ VE TİCARET A.Ş. The Agenda of the Ordinary General Assembly To be held on the 6th of April 2011 AGENDA: 1- The Opening Session and Representation of Board, 2- Authorization of the board for the Approval of the Meeting Report, 3- Reading and Discussion of the Board of Director s Annual Report and the Auditors Reports, 4- Presenting Donations of the Year to the Shareholders, 5- Reading, Discussion and Approval of the Balance Sheet and Profit and Loss Account; Discussion of the Dividend Distribution Proposal and its Acceptance or Refusal 6- Release of the Members of the Board of Directors and Auditors from their Liabilities, 7- Approval of the New Members Elected by the Board of Directors, for the Discharged Memberships of the Board of Directors during the Term, 8- Re-election of the Audit Committee Member for the Membership Discharged During the Term, and Specification of the Compensation, 9- Approval of the Independent Audit Agency Determined by the Board of Directors, 10- Authorization of the Chairman and Members of the Board of Directors to Conduct Procedures Set Out in Articles 334 and 335 of the Turkish Commercial Code. Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report 02

4 Sustainable Life and Cement Cement is one of the key materials constituting the modern way of life. It is the most fundamental element in the construction of the houses that provide shelter to all modern societies; the schools, hotels, hospitals and social buildings that satisfy society s social needs; and in the industrial structures and commercial buildings that ensure economic sustainability. It is the one single irreplaceable material in the construction of infrastructure, the most prominent indicator of any country s level of development. have only been possible thanks to the incomparable features of cement. And, as the most basic of the construction materials, cement is a sustainable material that links the past to the future. Çimsa s principal aim, during the production and distribution of this material essential for civilization and modern societies, is to create long term additional value for all of its stakeholders. Çimsa analyses each one of its processes through the application of triple accounting, for the society, the environment and the economy. It is a truly inexpensive and durable material, a material suitable for aesthetic uses, especially in comparison to most other construction materials. Contemporary architecture s best practices and aesthetic masterpieces Çimsa has prepared and will soon publish its Sustainability Report for 2011 covering its activities from and is now, within this scope, sharing its short term (2012) and long term (2020) goals with all of its stakeholders. 03 Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report

5 As one of the most essential construction materials, cement is the one indispensable building material constituting the core of every building constructed to meet individuals - and society s - social, commercial and economic needs. Having these features, cement is one of the core elements of modern life: a sustainable material linking the past to the future. Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report 04

6 Financial Indicators (Currency-Turkish Liras) Primary Balance Sheet Indicators Liquid Assets 10,681,165 51,088,881 Trade Receivables (net) 124,195, ,392,181 Stocks (net) 92,824,407 63,393,847 Total of Current and Floating Assets 247,235, ,034,872 Financial Assets (net) 243,304, ,148,664 Tangible Assets (net) 482,255, ,402,767 Intangible Assets (net) 18,136, Total Non-Current and Non-Floating Assets 886,601, ,706,515 Total Assets (net) 1,133,836,800 1,199,741,387 Equity 879,807, ,100,768 Primary Income Statement Indicators Sales Revenue (net) 708,480, ,924,831 Income and Profit from Other Operations 7,432,900 13,359,157 Operating Profit 141,199, ,585,884 Net Profit for the Period 103,249, ,132, Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report

7 In 2010, Our Clinker production was 4,616,000 tons. Our Ready-Mixed Concrete production for the year 2010 was 3.3 million cubic meters. We have increased our sales to million TL. Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report 06

8 Our Vision is to become the most valuable cement and concrete company in Turkey. Our Mission is to become the partners of concrete and cement users world-wide. 07 Çimsa Çimento Sanayi ve Ticaret A.Ş. 2010Annual Report

9 Our Values Our values are the core qualities of our culture that will carry us into the future: reliability, customer orientation, and collaboration. We are a reliable and collaborative organization who has been working with its customers, employees, suppliers and business partners for a long time. We understand the needs of our customers and we are always increasing the value that we provide to our customers through the creation of new solutions to satisfy their needs. Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report 08

10 Corporate Profile Creating value for all of its stakeholders while remaining focused on profitable growth, Çimsa now seeks to maintain this in the future with its sustainability approach. Founded in Mersin in 1972, Çimsa began operating its first production facility in 1975 in Mersin. Today, Çimsa s clinker production capacity across its facilities in Mersin, Kayseri, Eskişehir, Niğde and Ankara has reached 5 million tons. In addition to grey cement, Çimsa also produces special cements, such as white cement and calcium aluminated cement, and leads the Turkish cement and ready-mixed concrete industry in innovation. Having entered the readymixed concrete industry in 1988, today Çimsa serves in Adana, Mersin, Kayseri, Antalya, Osmaniye, Kahramanmaraş, Nevşehir, Eskişehir, Kütahya, Bursa, Konya, Karaman, Aksaray, Sakarya and Bilecik. Çimsa s ready-mixed concrete production capacity is now 3.5 million cubic. With its five facilities producing aggregate, the company is also an important player in the aggregate industry. In white cement, Çimsa is one of the three leading brands in the world. Çimsa is an international cement producer, with terminals in Seville (Spain), Emden (Germany), Constanta (Romania), Trieste (Italy), Novorossiysk (Russia) and Famagusta (the Turkish Republic of Northern Cyprus). With its consolidated net sales for 2010 having reached 708,5 MTL, Çimsa has generated a total net profit of 103,7 MTL. 09 Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report

11 Milestones Çimsa entered the ready-mixed concrete industry Çimsa was founded in Mersin Çimsa started production with a capacity of 1 million tonnes/year. The Malatya packaging terminal was acquired. The Seville, Spain, terminal was established A new white clinker line was commissioned, adding an additional capacity of 600,000 tons per year. The Mersin plant now became the world s largest capacity white cement plant Turkey s first and only Calcium Aluminated Cement production plant began production The terminal in Northern Cyprus was acquired. A sales office in Romania was opened Çimsa took over the Oysa Niğde Factory Eskişehir s second line was commissioned. With the acquisition of the Bilecik Ready-Mixed Concrete Facility, Çimsa became, in terms of the number of its facilities, the biggest player in Turkey s ready-mixed concrete industry. The world s first, and only, customizable gray/ white clinker production line was commissioned A mill and packaging facility in Kayseri was acquired. The Kayseri Plant s clinker line was commissioned. Standart Çimento was acquired. (Eskişehir Cement Plant and the Ankara Cement Grinding Facility) 2009 Çimsa s Russia terminal was commissioned In February, 60 percent of the shares of Medcon, the owner of the Trieste terminal, were acquired. Production of Çimsa Super Bims Cement began. Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report 10

12 The Chairman s Message Into the future, Çimsa is committed to maintaining the value that it is creating for the economy, for the environment and for society. Dear Business Partners, Following the crash of the developed nations financial markets in the last quarter of 2008, in 2009 the financial crisis began to affect the real sector in the developed countries. Accompanying rising unemployment in these countries, their loss of consumer confidence negatively affected their consumption levels, leading to an economic contraction. The income levels in developing countries, on the other hand, continued to grow throughout this period. These countries were affected by the financial and economic crisis to a more limited extent, thanks to their financial systems free of complex financial instruments, their increasing populations, increasing consumption, and their economies being comparatively more reliant on commodity prices. The new engines of the world s economy Again, 2010 has been a year featuring weak growth amongst the developed economies. However, the developing economies continued to grow. In 2010, China, with its gross national product now being greater than Japan s, became the world s second largest economy after United States of America. The maps of production and of the world economy s trade routes are changing significantly. Turkey is one of the countries at the very core of these changes. Turkey s Gross Domestic Product for the past nine months to the end of the third quarter of 2010 has increased by 8.9%, compared to the same period of Growth in the building trade was more than 20% over these three quarters. The building trade, which has a significant place in the economic growth of Turkey, further contributes to the sustainability of this growth through its creation of employment. In our country, where the per capita annual income now exceeds US$10,000, cement consumption per capita now approaches 700 kilograms per year. Turkey is now giving priority to investments in its energy and transportation infrastructure so that it can sustain its growth. As a result of these investments, cement consumption per person is expected to continue increasing. With a national income now close to US$1 trillion, beyond being one of 2010 s fastest growing countries, Turkey, thanks to its consistent political position, is a growing regional leader. An important reason why Turkey was one of the countries least affected by the global crisis is the structural reforms that it has undertaken over the last ten years. When speaking about our country s performance during 2010, we must also emphasize the role of its dynamic and ambitious private sector, a sector that adapts rapidly to new conditions and which knows how to protect its global competitiveness. I believe that Çimsa, with its obvious qualifications of innovativeness and efficiency, is one of the private sector s leading corporations which will make Turkey s growth sustainable. Çimsa creates added value for Turkey Çimsa, one of the most profitable companies in the Turkish cement sector, has increased its sales incomes by xx% over the previous year, while further creating added value for its stakeholders through increasing its net profit to xx million TL. Çimsa continues to expand its international distribution network, aiming to ensure the sustainability of its international cement sales and distribution, especially with respect to reaching its white cement customers directly. In February 2010, Çimsa obtained over 60% of the shares of the Medcon Company located in Trieste, renaming the company Çimsa Adriatico. Çimsa will move into new markets during the first half of 2011 through the terminal soon to be built in Alicante, which will become, after the Cimsa Cementos Seville terminal in Spain, the largest white cement market in Europe. Çimsa s management is committed to focusing its activities on increasing today s economic added value, while protecting the value to be created in the future. The company s performance is assessed only after taking into account its successes in meeting its social and environmental targets, in addition to reaching its economic targets. Our sustainability approach Looking at our company s value chain, we are now seeking to understand and to improve the social and environmental impacts that result directly, and indirectly, from our activities in the past, today and in the future. In the second half of 2011, we plan to present to the public our Sustainability Report covering our activities from 2007 to To adopt a sustainable work model, it is necessary to protect natural resources and to minimize the environmental impacts of industry, in addition to ensuring profitable growth. During the first quarter of 2010, Çimsa increased its productive capacity while decreasing its specific heat consumption, and thus its need for energy, as a result of the modernization project, now completed, in the first line of its Mersin Plant. With the completion of the Mersin Exhaust Gas Electricity Production Project, the investment in which began in 2010, electricity will now be produced from the exhaust gases collected from our clinker stoves. The 8 MW of electricity that will be obtained is equal to a full half of the requirements of two clinker stoves, the 11 Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report

13 exhaust heat of which will be used. The second of our projects destined to have a positive effect on our greenhouse gas emissions is to be implemented at our Eskişehir Plant. Upon the completion of our Hot Disc project, especially designed for combustible wastes that can be consumed in clinker stoves, replacing fossil fuels, our overall goal is to increase our waste fuel usage ratio throughout the plant. Çimsa leads workplace health and safety Workplace health and safety is our fundamental priority. In 2011, the Kayseri Plant was awarded the grand prize by the Cement Industry Employers Association in the category of Workplace Health and Safety, thanks to the plant s effective occupational safety policies and procedures throughout its cement operations. We continue this work in our ready mixed concrete plants, with our projects under the title Green and Safe Facilities. In the competition organized in 2010 by the Turkish Ready Mixed Concrete Association, our İnegöl Ready Mixed Concrete Facility received the Blue Helmet Work Safety Competition Award, while our Adana-Zeytinli Ready Mixed Concrete Facility not only went on to represent Turkey in international competitions, but also received the International Representation Award. As Çimsa, I believe that we are moving into a very successful period and our company will elevate its value and position with the performance we will show in our sustainability targets. I would like to thank everyone who has contributed to Çimsa s leadership, its reputation, its strong market position, effectiveness, its innovativeness and to its worldwide competitiveness. Sincerely, Mehmet Göçmen Chairman Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report 12

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15 Strong Roots As one of the longest-established and strongest companies in the industry, and building on our past experience, we are taking strong steps on into the future. Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report 14

16 The Board of Directors and the Audit Committee The Board of Directors 1- Mahmut Volkan Kara, Member (since 19 July 2010) 2- Levent Demirağ, Member (since 13 July, 2010) 3- Serra Sabancı, Member 4- Mustafa Nedim Bozfakıoğlu, Vice Chairman 5- Mehmet Göçmen, Chairman 6- Mehmet Hacıkamiloğlu, General Manager The Audit Committee: İlker Yıldırım Bahadır Boran 15 Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report

17 Senior Management Senior Management 1-Tamer Denizci, Assistant General Manager (Procurement and Logistics) 2-Mehmet Şahin, Plant Manager (Eskişehir) 3-Nevra Özhatay Assistant General Manager (Financial Affairs) 4-Mutlu Doğruöz, Assistant General Manager (Investment and Automation) 5-Şahap Sarıer, Assistant General Manager (Ready-Mixed Concrete) 6-Mehmet Hacıkamiloğlu, General Manager 7-Ayfer Güreş, Assistant General Manager (Corporate Development and Human Resources) 8-Hüseyin Özkan, Assistant General Manager (Marketing and Sales-Cement) 9-Levent Öncel, Plant Manager (Niğde) 10-Ülkü Özcan, Strategy and Business Development Manager 11-Mustafa Şanlı, Internal Audit Manager 12-Doğan Özkul, Plant Manager (Mersin) 13-Uğur Öz, Plant Manager - Deputy (Ankara) 14-Mustafa Turan, Plant Manager (Kayseri) Basri Dinçer, Technical Adviser Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report 16

18 Members of the Board of Directors Mehmet Göçmen Chairman Born in 1957, Mehmet Göçmen attended Galatasaray High School and the Middle East Technical University s Industrial Engineering department from which he received his Bachelor s degree. After completing his master s degree at Syracuse University in the U.S. in the field of Industrial Engineering and Operational Research, in 1983 he started his career at Çelik Halat ve Tel San. A.Ş. Between 1996 and 2002 Mr. Göçmen was first the General Manager of Lafarge Ekmel Beton A.Ş. before becoming the Lafarge Turkey Business Development and Foreign Relations Vice President. As of June 2003, he started to serve as the General Manager of Akçansa, leaving this position in August, From 15 September 2004 to 9 September 2005 he held the position of Vice Chairman of Çimsa. He was then re-elected to the Board of Directors on the 2nd of May 2006, holding his position as Vice Chairman until July 20th, Since then, while remaining chairman of Sabancı Holding Cement group, Mr. Göçmen has been Chairman of the Board of Directors. He served at Lassa and Kordsa as the Finance Manager and then as the Financial Affairs Vice Manager. He was subsequently appointed Head of the Budget, Accounting and Consolidation Departments at Hacı Ömer Sabancı Holding, where he still works as the Secretary General. Serra Sabancı Member Born in 1975 in Adana, Serra Sabancı completed her higher education at the University of Portsmouth and at Istanbul Bilgi University s Economics Department, where she graduated with the best degree of her year. After working at Temsa, Ms. Sabancı received training in the fields of Company Acquisition and Board Membership at London s Institute of Directors. Serra Sabancı is still the Head of the Board of Directors at Sabancı Holding, in addition to various other Group companies, while also serving as a Member of the Board of Trustees of Sabancı Vakfı. On December 18, 2009, she became a Member of Board of Directors of Çimsa Çimento Sanayi ve Ticaret A.Ş. Mustafa Nedim Bozfakıoğlu Vice Chairman Born in Tarsus in 1950, Nedim Bozfakıoğlu graduated in 1972 from The Istanbul University School of Economics. Levent Demirağ (Since July 13, 2010) Member Born in 1959 in Erzurum, Levent Demirağ graduated from the Ankara 17 Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report

19 University Faculty of Political Sciences in From 1980 to 1992 he worked as a financial analyst for the Ministry of Finance. Having served since 1994 in various positions within Hacı Ömer Sabancı A.Ş., Levent Demirağ remains the manager of the Sabancı Holding Financial Affairs and Finance Department. Mahmut Volkan Kara (Since July 19, 2010) Member Born in Istanbul in 1973, Volkan Kara graduated from Robert College and from the Mechanical Engineering Department of Istanbul Technical University. He completed his graduate education at the University of North Carolina s Kenan-Flagler School of Management with an M.B.A. degree. In the USA he worked in Austin Texas at Dell Computers, in Chicago Illinois at A.T. Kearney and then in Milwaukee Wisconsin at SAB Miller. His current position is the Corporate Strategy and Planning Director of the Sabancı Holding Strategy and Business Development Group Presidency. Yılmaz Külcü (Until July 19, 2010) Member Born in 1944 in Afyon, Yılmaz Külcü graduated from the Istanbul Technical University s School of Electronics in Külcü began his career as an Electrical Engineer at TEK s Ninth Region Directorate. Subsequently he worked as Afyon Çimento s Operating Manager, the Assistant Manager of Söke Çimento Sanayi, the General Manager of Elazığ Çimento, Çorum Çimento s General Manager and the General Manager of Gaziantep Çimento. Following these positions, he became Çitosan s Head of Electrical Power Resources Department, the company s Technical Assistant General Manager, a Member of Board of Directors and then Niğde Çimento s General Manager. Külcü was appointed General Manager of Çimsa Çimento Sanayi ve Ticaret A.Ş. on the 1st of April He resigned from Board of Directors of Çimsa Çimento Sanayi ve Ticaret A.Ş. on July 19, 2010, a position that he had held since 01 August Mehmet Hayrettin Şener (Until June 1, 2010) Member Mehmet Hayrettin Şener started his career by working as an Assistant Engineer at Çanakkale Çimento Sanayi ve T.A.Ş. from 1979 to Since 1981, he has worked at Akçimento Ticaret A.Ş. as a Production Supervisor, Production Manager, the Enterprises Group Manager and then as the Assistant General Manager. He also worked as a Plant Manager at the Büyükçekmece Plant from , and at the Çimsa Çimento San. ve Tic. A.Ş. Kayseri Facility from 2004 to Until 31 October 2007 Mr. Şener served as the General Manager of OYSA Çimento San. ve Tic. A.Ş.; on the 8th of April 2008, he became a member of the Board of Directors of Çimsa Çimento Sanayi ve Ticaret A.Ş. He left the board on June 1, Mehmet Hacıkamiloğlu General Manager After earned a bachelor s degree in Civil Engineering from Boğaziçi University, Mehmet Hacıkamiloğlu completed the International Business Specialization Program at Istanbul University and the Executive-MBA program at Sabancı University. Hacıkamiloğlu then joined Sabancı as the Facility Manager of Betonsa, moving on to become the company s Investment and Planning Specialist. From 1997 to 1999 Hacıkamiloğlu served as the Strategy Development and Planning Manager for Akçansa, and then as Agregasa s Company Manager from 1999 to After a subsequent two years as Akçansa s Financial Coordinator, he joined Çimsa as Assistant General Manager for Financial and Administrative Affairs. Since the 1st of August 2006 Mehmet Hacıkamiloğlu has been Çimsa s General Manager. Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report 18

20 Senior Management Mehmet Hacıkamiloğlu General Manager Please see page 18 for resume information.. Resources Manager of Çimsa Çimento. Ayfer Güreş is currently working as Assistant General Manager for Corporate Development and Human Resources. Strategy and Business Development Director in Since the start of 2009, Özhatay has been Çimsa s Assistant General Manager for Financial Affairs. Tamer Denizci Assistant General Manager (Purchasing and Logistics) Tamer Deniz began his career as the Financial Affairs Supervisor at Dusa Endüstriyel Sanayi. Following his five years of professional experience at Dusa, he became Manager of Financial and Administrative Affairs at Yes International A.S. from 1992 to In 1994, he moved to Lafarge Beton A.S. as their Financial Affairs Manager, following which he served as Lafarge Aslan Çimento s Export and Sales Director. In 2006, Denizci joined Çimsa as the company s Financial Affairs Assistant General Manager, and he continues to work at Çimsa as Purchasing and Logistics Assistant General Manager. Denizci is a graduate of İstanbul Technical University s Department of Management Engineering. Ayfer Güreş Assistant General Manager (Corporate Development and Human Resources) Ayfer Güreş has bachelor s degree in Psychological Counseling and Guidance from Boğaziçi University and a master s degree in Organizational Psychology from Columbia University. Güreş began her career at Mudo A.S. as Human Resources Specialist. After completing her post graduate education, she joined Sabancı Holding as a specialist in From 1997 to 2007 she was Sabancı Holding s Human Resources Manager, and in 2007 she was appointed the Corporate Development and Human Mutlu Doğruöz Assistant General Manager (Investment and Automation) An electrical engineering graduate from Boğaziçi University, Mutlu Doğruöz began his career in 1983 as an Electronics Supervisor at Enka Teknik, where for five years he was in charge of the maintenance and operation of their automation systems. In 1989 he was appointed a Deputy Project Manager at Saudi Services Group. Following four years of experience there he joined Çimes Elektronik Sanayi. At Çimes, Doğruöz served as Company Manager, Assistant General Manager and General Manager respectively. In 2006, Mutlu Doğruöz joined Çimsa Çimento as the company s Investment Manager. He continues to work at Çimsa as the Assistant General Manager for Investments. Nevra Özhatay Assistant General Manager (Financial Affairs) After completing her MBA at Exeter University in UK, following a bachelor s degree in Business Administration from Boğaziçi University, Nevra Özhatay began working in 1994 as a Financial Expert, while being a Talent Pool candidate, in the Sabancı Holding Cement Group. In 1996 Özhatay joined Akçansa as their Management Support Manager, becoming their Strategy and Business Development Expert in 1998, their Planning and Control Manager in 2000, their Strategy and Business Development Manager in 2004, and their Logistics, Şahap Sarıer Assistant General Manager (Ready-Mixed Concrete) Şahap Sarıer started his career in 1995 as a Field Engineer at Betonsa after completing his Civil Engineering qualification at Dokuz Eylül University. Continuing as Betonsa s Operating Supervisor from 1995 to 1997, Sarıer worked as the Regional Manager of Akçansa Ready-Mixed Concrete from 1998 to For the next two years he was Karçimsa s Operations Manager. In 2006 Sarıer began to work at Çimsa Çimento as Assistant General Manager for Ready-Mixed Concrete, a position he still holds. Sarıer received an Executive MBA from Sabancı University. Hüseyin Özkan Assistant General Manager (Marketing and Sales-Cement) A graduate of METU s Economics Department, in 1983 Hüseyin Özkan started his career as a Marketing Supervisor at Exsa Export A.Ş. In 1986 he joined Çimsa Çimento as their Internal and External Trade Supervisor, being promoted to Sales and Marketing Manager. Since 1999 he has been the company s Assistant General Manager for Marketing and Sales. 19 Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report

21 Levent Öncel Plant Manager (Niğde) Levent Öncel received his bachelor s degree in Chemical Engineering from METU and a master s degree in Geology Engineering from Mersin University. He began to work as Production Engineer at Berdan Tekstil in He then joined Çimsa s Mersin Plant in 1990, where he worked as their Quality Control Engineer, Process Control Supervisor, Quality Control Manager and Production Manager respectively. In 2008 he was appointed Plant Manager of Niğde, a position he still holds. Doğan Özkul Plant Manager (Mersin) Completing his undergraduate and graduate education at Istanbul University s Department of Chemistry Engineering, Doğan Özkul worked as the Quality Control Supervisor at Çanakkale Çimento from 1978 to In 1983 he joined Enka Teknik, where he served as their Quality Control and Production Manager for four years, before being appointed Production Manager of Akçansa Çimento in Özkul was promoted to Company Manager of Karçimsa in 2006 before becoming Plant Manager of Niğde for Çimsa Çimento from 2007 to Since 2008 Doğan Özkul has been the Mersin Plant Manager. Mehmet Şahin Plant Manager (Eskişehir) After receiving a master s degree from Hacettepe University s Department of Physical Engineering, in 1979 Mehmet Şahin began his career as a Research Specialist at TÇMB, a position he held until In 1985 he joined Çimsa Çimento, working as their Assistant Engineer, Process Control Supervisor and R&D Manager respectively. In 2005 Mehmet Şahin was appointed Çimsa Kayseri s Plant Manager. Since xxxxxxx Şahin has been the Plant Manager at the Eskişehir plant. Mustafa Turan Plant Manager (Kayseri) A 1985 graduate from Istanbul Technical University s Department of Mechanical Engineering, Mustafa Turan received his master s degree from the same department in After his graduation, Turan worked as a semi-finished production assistant engineer at Çimsa s Mersin Plant, where he served as the production supervisor on the white production line until After working as the Production Manager at the Kayseri Plant from 2005 to 2010, Turan was appointed to the position of Plant Manager on December 1, Ülkü Özcan Strategy and Business Development Manager After graduating from Galatasaray High School and Marmara University s Department of Business Administration (English), in 1999 Ülkü Özcan began her career at Lafarge Turkey. From 1999 to 2003 she was their Strategic Planning Expert, becoming their Strategy and Business Development Manager in 2003, and their Marketing Project Manager in In January 2010, Özcan joined Çimsa Çimento as Strategy and Business Development Manager. Mustafa Şanlı Internal Audit Manager After graduating from Kayseri High School and Ankara University s Faculty of Political Sciences Department of Business Administration, in 1994 Mustafa Şanlı began working as the Assistant Inspector at Oyak General Management. In 2005 he was appointed Oysa Çimento s Manager of Financial and Administrative Affairs. Mustafa Şanlı joined Çimsa in 2007, working on their Corporate Risk Management Project during 2008 and Becoming Çimsa s Internal Audit Manager in 2009, Mustafa Şanlı was appointed Purchasing Manager on 31 December Basri Dinçer Technical Adviser After graduating from Istanbul Technical University s Department of Chemistry Engineering, in 1979 Basri Dinçer took a position as the Operating Engineer of Çanakkale Çimento. After one year of experience at Nuh Çimento as their Quality Control Supervisor during 1982, Dinçer became Enka Teknik s Operations Manager. Leaving this position after six years, Dinçer then worked at Çimsa Çimento, holding the position of Production Manager from 1989 to He was appointed Assistant General Manager Responsible for Cement Production in On May 1st, 2010 he was appointed Çimsa s Technical Adviser. Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report 20

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23 Strategy Oriented We prepare for the future with alternative scenarios Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report 22

24 An Assessment of the Cement Industry for 2010 Turkey s construction industry showed growth of over 15% during the first three quarters of This growth is expected to continue during The regional differences in the cement industry observed during 2009 in Turkey and throughout the world continued in Considering the world in general, demand for cement was comparatively low in developed countries, while it increased in developing countries. The recovery period stimulated by low interest rates and government incentives continued during the second half of 2009, as well as in While there was industry growth of 8% in Asia, 5% in North America and 3% in Latin America, demand in the Western and Eastern Europe markets shrank by 1-2%. Turkey, along with Egypt and Nigeria, is one of the key countries for the industry in the Mediterranean and the Middle East. Although Turkey s cement industry has grown significantly in terms of quantity, it grew much less in terms of turnover. Surplus capacity continued to create pressure on prices. Despite increasing volume due to intense competition in both domestic and foreign markets, increases in revenue were not achieved at the same rate. USA and India. In total, 65 plants operate in the Turkish cement industry, 48 of which are integrated while the other 17 are grinding and packing plants. While cement production in Turkey increased by 11% in 2010 as compared to 2009, cement and clinker exports shrank by 8%. In 2010, cement production for Turkey s domestic market reached 69 million tonnes, and the industry s total turnover reached US$4.5 billion. Domestic cement consumption is now 50 million tonnes, with 18.5 million tonnes of cement and clinker being exported. Of these exports, 16 million The construction industry in Turkey experienced a growth of over 15% during the first three quarters of This growth is expected to continue during Regarding cement production, Turkey is the largest producer in Europe and the fourth largest worldwide after China, 23 Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report

25 tonnes were cement, while clinker export was 2.5 million tonnes. Almost 70% of the 16 million tonnes of cement exported was sent to the Middle Eastern and North African markets: Iraq, Syria, Israel, Egypt, Libya and Algeria. Exports to Europe decreased to a total of 2 million tones, by a 25% decrease as compared to the previous year. Turkey is the third largest cement exporter worldwide. Turkey s cement consumption has grown by 16% in comparison to the previous year, totaling 50 million tonnes for the 2010 year. Considering cement consumption in terms of regions, the highest increase to the end of 2010 was seen in the Eastern Anatolian Region at 35%, where intensive infrastructural investments are being undertaken. Next was the Black Sea Region with 26%, the Marmara Region and the Central Anatolian Region with 20%, and a growth of 8% in the Aegean Region. The cement consumption in the Mediterranean Region remained at the same levels as in the previous year. In the cement industry, sustainable progress was a prominent topic during In our country, using waste fuels to both decrease energy costs and to reduce the amount of carbon dioxide released into the atmosphere is another important topic for 2010 and after. While cement production in Turkey increased by 11% in 2010 compared to 2009, cement and clinker exports shrank by 8%. Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report 24

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27 Leading Çimsa is the industry s leader, due to its innovative practices, its search for quality and its broad range of products. Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report 26

28 Domestic Cement Plants In its production plants, Çimsa ensures fuelefficiency via projects that it has developed for waste disposal, and contributes to the protection of the environment by reducing the use of fossil fuels. Mersin Plant The First Facility Production Line This facility started production in It features a rotary kiln 5.25 m in diameter and 83 m long with two pre-heater cyclone lines, each with four stages. In 1983 the facility was modernized by adding a coal grinding and burning system to reduce fuel costs. The facility has two crushers, one prehomogenization facility, two ball mills for raw materials, two raw meal silos and two closed clinker stock halls. The investments made in Mersin to gain sustainability and protection of the environment continued in In the first quarter of 2010, the facility was modernized. The current planettype clinker cooling system was replaced, and an FLS SF-Cooler type grate cooler system was installed. After this investment, the plant s production capacity reached approximately 4,000 tonnes/day, compared to 3,400 tonnes/ day before its upgrade. In addition, the total heat required for clinker production has been reduced. This system has contributed significantly to the First Facility s de-dusting practices. The new investments to be made during 2011 will satisfy up to 50% of the facility s electricity needs. Second Facility Production Line The Second Facility s rotary kiln, commissioned in December 1989, is capable of producing both grey and white clinker. It has a diameter of 3.6 m and a length of 49 m. The facility contains crushers, a raw material mill with prehomogenization systems, a coal mill, two raw meal silos, a rotary kiln and a clinker stock hall. This facility, capable of producing both grey and white clinker depending on requirements, has a grey clinker production capacity of 1,845 tonnes/day and a white clinker production capacity of 1,470 tonnes/day. Thanks to new investments and a continued operational focus on sustainability, the facility will soon satisfy 50% of its own electricity needs, in combination with the First Facility. Third Facility Production Line The Hacı Sabancı White Cement Production Facility began operating in December 1999, with a rotary kiln of a 3.75 m diameter and a length of 57 m. The Third Facility has a production capacity of 1,750 tonnes/day. The facility contains a crusher, a raw material mill with pre-homogenization facilities, a coal mill, a raw meal silo, a rotary kiln and a clinker stock hall. The Mersin Plant also has four cement mills, three of which are ball mills and one being a vertical mill. Calcium Aluminate Cement Production Facility This facility, commissioned in 2002, has two kilns and a clinker production capacity of two tonnes/hour, a cement mill with a grinding capacity of five tonnes/hour and a packaging unit. In 2007, upon the commissioning of a second kiln having a clinker production capacity of two tonnes/ hour, the production capacity of the facility was improved. In addition, after a packaging unit was installed in 2009, product is now offered to customers in packages of 25 kg, in pallets, and in large bags of 1.5 tonnes. Paper Bag Plant In 2010, 26 million paper bags were 27 Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report

29 produced in the Mersin paper bag plant. These were used in the Mersin, Kayseri, Niğde, Eskişehir and Ankara Plants. The Mersin plant has a total of four cement mills, three of which are ball mills and one a vertical mill. Kayseri Plant The Çimsa Kayseri Plant was established in 1992 by Akçimento, a Sabancı Holding company, with an annual capacity for 1.6 million tonnes of cement grinding and packaging. It was acquired by Çimsa in A pre-grinding system was added to the cement mill in 2005 in order to improve its cement grinding capacity and to reduce its energy consumption. The foundation of the clinker production line was laid on the 9th of October 2004, a step towards making the facility into an integrated cement plant. The first production of clinker took place on 26 December 2005, after the completion of all construction, installation and commissioning operations at the plant. Equipped with state of the art technologies, the facility s main unit consists of an ILC type low NOx emission pre-calcination system, a pre-heater with five stages of cyclones and a rotary kiln 55 m long and 3.60 m in diameter. With a clinker production capacity of 2,175 tonnes/day, this facility also features a raw material crusher, pre-homogenization facilities for both clay and limestone, one coal ball mill, one vertical raw meal mill and two cement ball mills. The Kayseri Plant produces puzzolanic cement meeting the TS EN 197 CEM IV /B (P) 32.5 R standard. In this production, trass is used as an additive. The Kayseri trass drying project enabled the drying of trass. This meant that damp trass, extracted from a quarry only 10.3 kilometers away, can now be used instead of trass provided from a quarry 180 kilometers away. This unique project, supported by TUBITAK as part of its TEYDEP 1501 Industry R&D program, had further advantages such as eliminating the necessity for the installation of a new drying unit, and the absence of any additional fuel consumption to dry the trass. Eskişehir Plant The Eskişehir Cement Plant was commissioned in 1957, with a wet kiln 3.6 m in diameter, 125 m long and possessing a capacity of 150,000 tonnes/year. This plant operated until The first line that operates today was commissioned in This line has a capacity of 275,000 tonnes/year, a three stage pre-heater, and a dry system kiln 3.6 m in diameter and 52 m long, which increased the line s total capacity to 425,000 tonnes/year. On 27 December 2005, TMSF transferred the Eskişehir Plant to Çimsa Çimento Sanayi ve Ticaret A.Ş. Following the acquisition of the plant by Çimsa in May of 2007, the First Production Line had a dynamic separator added to its raw Çimsa aims to achieve worldwide business excellence through its quality, environment and workplace health and safety management systems. material mill, the current clinker cooler was replaced, the rotary kiln s burning systems, dosage systems and its new electro-filter units were renewed. As a Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report 28

30 Domestic Cement Plants First and Second Facilities in 2007 and 2008 respectively, the Eskişehir plant s dust emissions have been significantly reduced. In addition, the dust cyclone on the line that fed hot gas from the second facility to the new coal mill has been replaced with a more efficient cyclone. Dust leakages in the plant have been reduced by renewing and modernizing the plant s raw material and clinker hall. It is Çimsa s goal to become one of Turkey s leading waste disposal companies. Çimsa s Hotdisc Project, to be installed at its Eskişehir plant, is one indicator of the strength of the company s resolution in this regard. result of these investments, a clinker production capacity of 600,000 tonnes per year was achieved. A new closed circuit cement mill with a capacity of 85 tonnes/hour was also commissioned. In September 2007, a completely new coal vertical mill system was commissioned. This could serve both production lines and has a capacity of 40 tonnes/hour. The old coal systems were decommissioned. In January 2008, a completely new second production line was commissioned. This line had a similar structure to that of the current Kayseri plant, a capacity of 790,000 tonnes/year, bringing the plant s total production capacity to 1,390,000 tonnes/year The Eskişehir Cement Plant became a modern production facility following the installation of a raw material crusher and a raw material pre-homogenization system, which were installed together with the second production line in January Cement silos were installed in The plant also features three ball cement mills used for production of the final cement product. With the installation of new, modern electro-filters on the rotary kiln lines of the It is planned that the Hotdisc project, an automatic waste feeding and burning system, will begin operating some time before October The project was designed by the Danish company FLSmidth. The Hotdisc project will control both the kiln s processes and its overall product quality, in addition to generating 30% of its total calorific consumption from waste. The hazardous and non-hazardous solid wastes and used vehicle tires to be disposed of in the system will be fed into specialized bunkers, individually weighed, and then used as fuel by the kiln. Another feature of the Eskişehir Cement Plant is that it includes an environmental habitat zone, created by the cement plant: a first for Turkey. This habitat zone, the first and only example in Turkey, was created by converting a large pit, previously used as a clay pit, into a pond. The area surrounding the pond has been planted with more than 10,000 trees and more than 150 kinds of other plants. Walking tracks and recreational areas have been made around the pond, helping the habitat to serve not only nature, but also the facility s workers. Niğde Plant Established in 1957, the Niğde Cement Plant started production in 1964 following 29 Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report

31 the completion of its production line. It was a wet system with a capacity of 85,000 tonnes/year. The total production capacity of the plant increased to 350,000 tonnes/ year after the commissioning of its second dry system production line on 2 September Over the following years, the wet system clinker line was shut down as it had reached the end of its economic and technological life, while production continued using the dry system s rotary kiln. After the plant was privatized, the kiln s capacity of 850 tonnes/day was increased to 1,150 tonnes/day following the investments in 1993 such as a cyclone replacement for the Rotary Kiln unit, a modernization of its transport, cooling and burning systems, and replacement of its exhaust gas fan and electro-filter. Pursuant to the Competition Authority s ruling of November 1, 2007 regarding the termination of the Sabancı and Oyak partnership, the Oysa Niğde Cement Plant was renamed to the Çimsa Çimento San. ve Tic. A.Ş. Niğde Cement Plant, continuing production under this name. After it was acquired by Çimsa, many improvements concerning production and energy efficiency were made, and its clinker production line had its capacity increased to today s level of 1190 tonnes/ day. In addition to the rotary kiln, with a 4-stage pre-heater and grate cooler, a diameter of 3.8 m and a length of 52 m, the plant has one production line and one hammer crusher, one ball raw meal mill, a vertical coal mill and a cement mill with a single roller press grinding system. Developing innovative products to satisfy every one of its customers needs, in 2010 Çimsa created and then started to produce its Super Bims Cement at its Niğde Plant. A team working on bag filters to dedust the factory s site has been formed. This team measured the performance of bag filters at important points around the site in order to make the necessary improvements. The reduction of dust inconveniences in the packing unit is one indicator of the positive results of the work done so far, particularly in this section of the plant. In May 2010, a system to assist in the continuous tracking of the plant s exhaust gas emissions was established by making an online connection from the plant to the Provincial Department of Environment and Forestry. The facility sees the environment and sustainable growth as its two priorities during any operation that it performs, and the facility s staff demonstrated this sensitivity by planting 15,000 thousand trees during Ankara Cement Grinding and Packing Facility The Ankara Lalahan Cement Grinding and Packing Facility, the foundation of which was laid in January 2001, was commissioned in July It was acquired by Çimsa, along with the Eskişehir Cement Plant, in As the Ankara Plant does not have a rotary kiln, the clinker supplied from other Çimsa plants is ground here, converted into cement, and then sold. The Ankara Cement Grinding and Packing Facility has a single cement mill with a capacity of 85 tonnes/hour, one raw material crusher, two cement silos and a packing unit. Marmara Rota Port Cement Packing Facility Located on the Kocaeli Yarımca Gulf Rota Port, the Marmara Facility was leased by Çimsa in June It has an installed silo capacity of 5,000 tonnes, and a bagged and bulk cement packing/loading capacity of 100 tonnes/hour. Çimsa super white cement is sent from Mersin in bulk and stored in the 5,000 tonne horizontal silo. From the Marmara Facility, leased especially to be closer to customers in the Marmara Region, white cement is sold both packaged and in bulk. Malatya Cement Packing Facility Located near the Malatya Battalgazi Train Station established in 1996, the Malatya Cement Packing Facility has a processing and packing capacity of 60,000 tonnes/year. In the facility there are three cement silos with a total capacity of 900 tonnes. Cement is sold here both packaged and in bulk. Çimsa aims to achieve worldwide business excellence through its quality, environment and workplace health and safety management systems. Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report 30

32 Domestic Cement Facilities Çimsa Facility Information Manufacturing Lines Clinker Manufacturing Capacity (tonnes/day) Raw Mill Kiln Diameter (m) Cooler Type Mill Type Mersin Çimsa First Facility Second Facility Second Facility Third Facility 3,700 gray clinkersr 1,845 gray clinkers or 1,470 white clinkers 1,750 white clinkers 5,25 3,60 3,60 3,75 Cross bar cooler Grid cooler Grid cooler Grid cooler Ball mill Roller mill Roller mill Roller mill First Isıdaç-40 Second Isıdaç Isıdaç-40 clinkers 55 Isıdaç-40 clinkers Kayseri Çimsa Manufacturing Line 2,300 grey clinkers 3,60 Grid cooler Roller mill Eskişehir Çimsa Manufacturing Line I 1,750 grey clinkers 3,60 Grid cooler Ball mill Manufacturing Line II 2,300 grey clinkers 3,60 Cross bar cooler Vertical mill Niğde Çimsa Manufacturing Line 1,240 grey clinkers 3,80 Grid cooler Ball mill Grinding Facility Mill Manufacturing Capacity (tonnes/day) Mill Diameter (m) Mill Length (m) Cement mill Type Ankara Çimsa 2,040 4,20 13 Ball mill Manufacturing Klinker Figures Üretimi for the 2010 year Clinker Manufacturing Grey Clinker 3,576,716 tons White Clinker Isıdaç-40 Clinker Sulphate Resistant Clinker Total 997,589 tons 24,000 tons 19,032 tons 4,616,236 tons Cement Manufacturing Grey Clinker 4,337,364 tons White Clinker 997,030 tons Isıdaç-40 23,907 tons EkoHarç 39,078 tons Total 5,414,365 tons The Capacity Utilization of the Rotary Kilns for the 2010 year Mersin Rotary Kiln I 91% Mersin Rotary Kiln II 92% Mersin Rotary Kiln III 98% Kayseri Rotary Kiln 94% Mersin Rotary Kiln I 92% Mersin Rotary Kiln II 94% Niğde Rotary Kiln 95% 31 Çimsa Çimento Sanayi ve Ticaret A.Ş Annual Report