Annual Report 2012

Transcription

1 Annual Report 2012

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3 Contents 02 Agenda or the Ordinary General Assembly 04 Our Vision, Mission, Values 06 Corporate Rofile 06 Milestones 08 Message From The Chairman 10 Board Of Directors 11 Senior Management 12 Biographies of Board of Directors 14 Biographies of Senior Management 18 An Assesment of The Cement Industry in Domestic Cement Facilities 24 Foreign Terminals 26 Cement Types 28 Ready Mixed Concrete Products 30 Ready Mixed And Concrete and Aggregate Operations Investments 34 Çimsa Sustainability Approach 36 Social Responsibility 38 Corporate Development and Human Resources 42 Annual Report Auditor s Report 60 Consolidated Financial Statements and Report of Independent Auditors 140 Profit Distribution Table as of December 31 st Addresses

4 Agenda of the Ordinary General Assembly The Agenda of the Ordinary General Assembly for ÇİMSA ÇİMENTO SANAYİ ve TİCARET A.Ş. to be held on March 27 th 2013 Agenda: 1. Call to order and composition of the Administrative Board. 2. Authorization of the Administrative Board to approve the meeting minutes of the General Assembly. 3. Reading and Discussion of the 2012 Board of Directors Annual Report and the summaries of Audit Committee s report and the Independent Auditor s report. 4. Informing the General Assembly on donations and charities made within year Determining the limits of donations the company will make regarding year Informing the General Assembly regarding transactions done with related parties within year Informing the General Assembly regarding indemnities, securities, liens given in favor of 3rd parties and obtained incomes or benefits within year Reading, discussion and confirmation of the balance sheet and the profit/loss accounts of year Acquaintance of the Members of the Board of Directors and the Audit Committee due to their year 2012 activities. 10. Determining the usage of 2012 profit, profit allocation and dividend share proportions. 11. Submission of the members elected to serve for the remainder of the activity year replacing the vacated positions of members of the General Assembly to the approval of the General Assembly. 2 Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report 2012

5 12. Election and tenure determination of the auditor. 13. Approval of internal directive by the General Assembly on the working Principles and Procedures prepared by the Board of Directors. 14. Approval of the Amendment of the Company s Articles of Association as in the attached Draft Amendment with regard to the Permit Obtained from the Capital Markets Board and from the Republic of Turkey s Ministry of Customs and Trade. 15. Informing the General Assembly on transactions indicated on the Numbered principle of the Capital Market Corporate Governance. 16. Authorization of the Chairman and the members of the Board of Directors to conduct procedures as set out in articles 395 and 396 of the Turkish Commercial Code. Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report

6 Our Vision To be the most valuable cement and concrete company in Turkey. Our Mission To be a business partner to cement and concrete users at a global level. Our Values Our values are those core qualities of our culture that carry us into the future: reliability, customer orientation and collaboration. We are a reliable and collaborative organization that has been working with its customers, employees, suppliers and business partners for a long time. We understand our customers needs and we are always increasing the value that we provide to our customers through the creation of new solutions to satisfy their needs. 4 Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report 2012

7 MERSİN ESKİŞEHİR Çimsa is exactly 40 years old with the excitement of the first day! KAYSERİ NİĞDE AFYONKARAHİSAR ANKARA Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report

8 Corporate Profile Çimsa, creating value for all its shareholders and focusing on growth with profit, aims to maintain this in the future as well. Milestones 1972 Established In Mersin Stepped into ready-mixed concrete sector Mill /packing facility in Kayseri were acquired thousand ton capacity new white clinker line is put into use. With the addition of this facility Mersin became the largest capacity under one roof white cement plant in the world Started manufacturing with 1 million ton / year capacity The World s first customizable Grey/white clinker production line is put into use Malatya packing terminal is purchased. Spain - Sevilla terminal is built First Calcium Aluminate Cement production in Turkey started. 6 Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report 2012

9 Çimsa has been established in Mersin in Clinker production capacity of Çimsa s facilities in Mersin, Kayseri, Eskisehir and Niğde, which started its activities in 1975 with its first production facility reached from 5 million tons to 5.5 million tons together with acquiring of 51% of the shares of Afyon Çimento Sanayi T.A.Ş on Afyon Cement Factory has started production in 1957 and its production capacity is 460 thousand tons. Çimsa also reaches its customers through its cement grinding and packing facility in Ankara, Marmara Route Port and Malatya cement packing facilities. Celebrating its 40th establishment anniversary in 2012, Çimsa is continuing its activities as a 40 years young company. Çimsa, by manufacturing special cements such as white cement and Calcium Aluminate Cement and innovative concretes besides grey cement, is leading the Turkish cement and ready-mixed concrete regarding innovation. Being a ready-mixed concrete manufacturer since 1988, Çimsa offers services in Adana, Kahramanmaraş, Osmaniye, Mersin, Kayseri, Nevşehir, Karaman, Aksaray, Eskişehir, Kütahya, Bursa, Adapazarı, Bilecik, Konya and Denizli cities, and its ready-mixed concrete sales have reach 2.7 million cubic meters in Aiming to grow in aggregate line of work also, Çimsa is also active in this sector with its 5 aggregate facilities. Çimsa, being one of the first three brands in the world in white cement field, is an international cement manufacturer with its facilities located in Hamburg (Germany), Trieste (Italy), Seville (Spain), Alicante (Spain), Gazimağusa (TRNC), Constanta (Romania) and Novorossiysk (Russia). Çimsa, having its consolidated net sales reach million TL in 2012, has acquired million TL net profits belonging to its main partnership interests Kayseri Plant clinker line is put into use. Standard Çimento is acquired (Eskişehir Cement Plant and Ankara Cement Grinding Facility) Took over Oysa Niğde Plant Çimsa s Russia terminal was put into use Spain Alicante terminal was put into use from June onward. Hot Disc (Waste Supply and Waste Energy Recovery) investment was competed in Eskisehir plant Terminal in Northern Cyprus was acquired. Romania sales office is established Eskişehir s second line was put into use. With the acquisition of Bilecik ready-mixed concrete facility, Çimsa became the largest producer in Turkey s ready-mixed concrete sector in terms of no. of facilities In February % of Medcon company, owner of Trieste terminal, shares were acquired. Çimsa Süper Bims Cement production started % of Afyon Cimento Sanayi ve T.A.S was acquired from Italicementi company on On December 2012 Denizli Üçler Ready-Mixed Concrete Facility and Aggregate operations were acquired. Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report

10 Message from the Chairman Dear Business Partners Global crises have caused a deceleration and uncertainty for the future in the economies of developed countries, and growth rate of developing economies to stay in 2-3% rates has been a year Turkey s economy was affected from developments in the world and growth has decelerated. Economic growth is expected to realize in the rate of 3%. Parallel to economic growth, there is also deceleration in the construction sector. In the sector where double digit growth numbers occurred one after the other, with this soft decline trend growth by the end of 2012 is expected to stay in 1% rate. Cement Sector Continues to Grow Total cement consumption in 2012 is estimated to have grown by 3% to be 3.7 billion tons. For 2013 as well, global cement demand is expected to show parallelism to economic growth and show a growth between 4-5%. Turkey market cement consumption in 2012, by showing 2.8% growth, actualized as 58 million tons*. In 2013, depending on various infrastructures, residence and urban transformation projects, cement consumption is expected to increase in the same rate as economic growth. In 2012, capacity continued to remain above local demand and surplus capacity has been exported regardless of difficulties in foreign markets and uncertainties in Middle East and North Africa markets. Total cement and clinker export of Turkey in 2012 actualized as 13.6 million tons. This amount is 6% below the total 2011 export amount. In 2013, negative effects of political uncertainties in Middle Eastern and North African countries to export markets are expected to continue although they will decrease. 40 Years Young Çimsa aims Sustainable Growth Celebrating its 40th Establishment anniversary in 2012, being a 40 Years Young company, Çimsa, with its vision of being Turkey s most valuable cement and concrete company, continued to grow and create value by acquiring 51% of the shares of Afyon Çimento Sanayi T.A.Ş. In addition, Çimsa, by acquiring Denizli Üçler Ready-mixed Concrete Facility and Aggregate Operations actualized another step towards its aim of sustainable growth. Çimsa increased its consolidated turnover to million TL by increasing it by 7% and its consolidated operating profit to million TL by increasing it by 5% in 2012 and took its place among the most profitable companies of cement sector. Possessing special products like white cement and calcium aluminate cement besides grey cement, Çimsa leads the Turkish cement and ready-mixed concrete sector in innovation. It is known as indispensable working partner of our customers on special products and their solutions. Çimsa is one of the first three most important brands in the world in white cement field. Acting with its global player identity with its foreign terminals in the export field, Çimsa markets its products under its own brand in more than 50 countries. *It is a company assumption using Turkish Cement Manufacturers Association data and adding estimated sales of non-member manufacturers. 8 Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report 2012

11 Calcium Aluminate Cement ISIDAÇ 40, on the other hand, is the first and only calcium aluminate cement manufactured in Turkey. It is a special cement for tile, construction chemicals and precast sectors, and especially refractory industry. Çimsa, with its Innovative and Environmentally Friendly Projects Continues to Create Value Çimsa continued its works toward sustainability in First important results have also been obtained from renewable energy investments. With the electric production from waste gas investment completed in Mersin Plant, 50% of the electricity consumed in two lines of the plant is aimed to be produced. At the same time, carbon emission of the factory will decrease by tons per year. With the Hot Disc investment put in work in Eskişehir Plant in 2011, waste fuel usage rate of the plant in 2012 increased by 21% per each related unit. Sustainability Report in GRI B+ level has been published in December highest of the three degrees that can be obtained, In general in compliance with the standards report has been given as a result of the audit. We are proud to announce to its investors, shareholders and public opinion that Çimsa, leaving 40 years full of successes within Hacı Ömer Sabancı Holding body, is moving forward emphatically in the path of its vision of being the most valuable cement and ready-mixed concrete company with its transparent operation accepted by international authorities. Çimsa, being a 40 years young company, will also continue to produce value for our shareholders, working partners and our country in 2013 with the projects it will actualize in profitability and energy efficiency, by showing outstanding performance on its innovative works adding a different point of view to the sector. I express our gratitude to all our shareholders who contributed to Çimsa s leadership, strong market position and efficiency. Best regards, Mehmet Göçmen Chairman In addition, Çimsa s Misis, Kozan, İnegöl and Pamukova Ready-Mixed Concrete Facilities received Green Dot Environment Rewards in In My Clean Turkey competition organized by the Ministry of Environment and Urban Planning, Çimsa Kayseri Cement Plant was chosen as Turkey s Cleanest Industrial Facility. Çimsa, with CEM IV 32.5 R grey cement manufactured in its Kayseri Plant, received (IBU) Environment Friendly Product Certificate from German Building and Environment Institute. Çimsa is the first cement company in Turkey that possesses the Environmentally Friendly Product Certificate given by evaluating product specifications and production processes. The Internal Audit Activities being done in International Standards have been documented Çimsa, breaking a new ground again, has been one of the few in the world and the first and only Cement Company in Turkey that documented its conducting Internal Audit activities conformed with International Standards. With its internal audit process being audited by Ernst&Young, one of the independent establishments accredited by International Internal Audit Institute, the Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report

12 Board of Directors Board of Directors 1- Mehmet Göçmen, Chairman 2- Mustafa Nedim Bozfakıoğlu, Vice President 3- Serra Sabancı, Member 4- Seyfettin Ata Köseoğlu, Member 5- Hasan Cihat Erbaşol, Independent Member (Since ) 6- Mehmet Kahya, Independent Member (Since ) 7- Mehmet Hacıkamiloğlu, General Manager 10 Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report 2012

13 Senior Management Senior Management 1- Mehmet Hacıkamiloğlu, General Manager 2- Nevra Özhatay, Assistant General Manager (Financial Affairs) 3- Hüseyin Özkan, Assistant General Manager (Local Sales) 4-Tamer Denizci, Assistant General Manager (Supply Chain) 5- Şahap Sarıer, Assistant General Manager (Cement Production) 6- Mutlu Doğruöz, Assistant General Manager (Investment) (Until ) 7- Ülkü Özcan, Strategy and Marketing Manager Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report

14 Board of Directors Mehmet GÖÇMEN Chairman Born in 1957, Mehmet Göçmen, after Galatasaray High School and Middle East Technical University Industrial Engineering education, has done a masters degree in Syracuse University in U.S.A. in Industrial Engineering and Operational Research. Starting his career in 1983 in Çelik Halat ve Tel San. A.Ş. Göçmen served as the General Manager of Lafarge Ekmel Beton A..S. and as the Vice President for Business Development and Foreign Affairs in Lafarge Turkey between He served as the General Manager at Akçansa from June 2003, he was appointed as the Head of Human Resources Group on and as Head of Sabancı Holding Cement Group on Since he has been chosen as Member of the Board of Directors of Çimsa Çimento Sanayi ve Ticaret A.Ş. Mustafa Nedim BOZFAKIOĞLU Vice Chairman Born in Tarsus in 1950, Nedim Bozfakıoğlu graduated from Istanbul University School of Economics in He served as Finance Manager and Financial Affairs Assistant Manager at Lassa and Kordsa. Served as Head of Budgeting, Accounting and Consolidation in Sabancı Holding, Bozfakıoğlu is still serving as General Secretary in Sabancı Holding. Since he has been chosen as Member of the Board of Directors of Çimsa Çimento Sanayi ve Ticaret A.Ş. Serra SABANCI Member Born in 1975 in Adana, she completed her education in Portsmouth University and Istanbul Bilgi University s Department of Economics where she graduated as first in her class. Worked in Temsa company, Serra Sabancı, received training in Institute of Directors in London on Company Acquisition and Board of Directors Memberships. Serra Sabancı continues as Member of the Board of Directors in Sabancı Holding and various group companies, and as Member of the Board of Trustees in Sabancı Foundation. Since she has been chosen as Member of the Board of Directors of Çimsa Çimento Sanayi ve Ticaret A.Ş. Levent DEMİRAĞ Member (Until 24 April 2012) Born in 1959 in Erzurum, Levent Demirağ, graduated from the Ankara University Faculty of Political Sciences in He served as Financial Analyst in Ministry of Finance between 1980 and Having served since 1994 in various positions in Hacı Ömer Sabancı A.Ş., Levent Demirağ continues as the Head of Sabancı Holding Financial Affairs and Legal Department. 12 Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report 2012

15 Seyfettin Ata KÖSEOĞLU Member Born in 1960 in Akşehir, Ata Köseoğlu graduated from Boğaziçi University Department of Mechanical Engineering. Later on, he completed his Electrical Engineering masters degree in Lehigh University, and received his M.B.A. from Boston University. Starting his banking career in İktisat Bank, Köseoğlu, served respectively in Finansbank, Bear Stearns, Societe Generale Investment Bank, Credit Suisse First Boston Bank and BNP Baribas/TEB firms. On he began to serve as the Head of Sabancı Holding Strategy and Business Deveopment Group. Since he has been chosen as Member of the Board of Directors of Çimsa Çimento Sanayi ve Ticaret A.Ş. Hasan Cihat ERBAŞOL Independent Member He was born in 1944 in Istanbul. Graduating from Darüşşafaka Private High school in 1962, Erbaşol finished Washingtonpark High School - Racine / Wisconsin school in 1963, and Istanbul University Law School in Starting his career as an attorney in Marshall Boya Sanayii, Erbaşol, served as legal advisor in Man Kamyon Sanayii and as the Head of the Legal Department of Kordsa - Lassa (Brisa) - Beksa companies within the Sabancı Holding body and of Sabancı Holding. Working as freelance since 2000, he does legal counseling. Since he has been chosen as Member of the Board of Directors of Çimsa Çimento Sanayi ve Ticaret A.Ş. Mehmet KAHYA Independent Member He received Chemical Engineering and Economy degrees in Yale University; Finance, Marketing and Operational Research M.B.A. degrees in Kellogg Graduate School of Management. He served as Chief of Management Services at Sasa, as President at MKM International and Sibernetik. Respectively, he served as Vice President at Sabancı Group Automotive Group, as Temsa Vice President and President, as Toyotasa Vice President and has been Member of the Sabancı Holding Planning and Steering Commission and Member of the Board of Directors of Temsa, Toyotasa, Sasa and Sapeksa. He has served as Carnaud Metalbox Executive Director and Vice Chairman of Board of Directors, Uzel Makine Chairman and Uzel Holding Executive Committee Member and Paint Group Vice Chairman, Sarten Ambalaj Executive Committee Member, Gierlings Velpor Vice Chairman of Board of Directors and Assan Alüminyum Chairman. As the founder, he is conducting consultancy at Kronos Company on strategy, restructuring, profit turnover, growth, purchasing and integration processes. He is in Board of Directors of Yaşar Holding, Altınyunus, DYO, Viking Kâğıt as independent Member; and is also in Yaşar Holding Head of Risk and Audit Committee, Viko and Kalibre Boru companies Administrative and Executive Councils. Since he has been chosen as Member of the Board of Directors of Çimsa Çimento Sanayi ve Ticaret A.Ş. Mehmet HACIKAMİLOĞLU General Manager After earning 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. Mr. Hacıkamiloğlu then joined Sabancı as the Facility Manager of Betonsa, moving on to become a company s Investment and Planning Specialist. From 1997 to 1999, Mr. Hacıkamiloğlu was Akçansa s Strategy Development and Planning Manager and Agregasa s Company Manager from 1999 to After a further two years as Akçansa s Financial Coordinator, he joined Çimsa as the Assistant General Manager for Financial and Administrative Affairs. He was appointed as General Manager at Çimsa on June 1, Mehmet Hacıkamiloğlu still serves as Çimsa s General Manager. Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report

16 Senior Management Mehmet HACIKAMİLOĞLU General Manager Please refer to page 13 for a brief resume. Nevra ÖZHATAY Assistant General Manager, Financial Affairs After completing her MBA at Exeter University in the UK, following a bachelor s degree in Business Administration from Boğaziçi University, Nevra Özhatay began to work at Sabancı Holding Cement Group in 1994 as a Financial Specialist and a Talnet Pool candidate Ms. Özhatay, being Management Support Manager at Akçansa in 1996, has been appointed as Strategy and Business Development Expert in 1998, Planning and Control Manager in 2000, Strategy and Business Development Manager in 2004 and from year 2008 onwards Logistics, Strategy and Business Development Director. Since , Ms. Özhatay has been working as the Financial Affairs Assistant General Manager at Çimsa. Hüseyin ÖZKAN Assistant General Manager, Domestic Sales 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 the Internal and External Trade Supervisor, being promoted to the position of Sales and Marketing Manager. Since 1999 he has been the company s Assistant General Manager for Marketing and Sales. He was appointed as the Assistant General Manager Responsible for Domestic Sales on Tamer DENİZCİ Assistant General Manager, Supply Chain Graduated from Istanbul Technical University Department of Industrial Engineering, Tamer Denizci began his career at Dusa Endüstriyel Sanayi as Financial Affairs Supervisor. After 4 years of experience in Dusa, he worked at Yes International A.Ş. between 1992 and 1994 as Financial and Administrative Affairs Manager. After his Financial Affairs Manager position at Lafarge Beton A.S., where he started in 1994, he worked as Export and Sales Director at Lafarge Aslan Çimento. Starting to work at Çimsa in 2006 as Financial Affairs Assistant General Manager, Mr. Denizci is still holding the position of Assistant General Manager responsible for Supply Chain. Şahap SARIER Assistant General Manager, Cement Production Şahap Sarıer began his career in 1995 as a Field Engineer at Betonsa after completing his Civil Engineering education at Dokuz Eylül University. Continuing from 1995 to 1997 as Betonsa s Operating Supervisor, Mr. Sarıer worked as the Regional Manager of Akçansa Ready-Mixed Concrete from 1998 to In addition, he received Executive MBA education at Sabancı University between For the next two years he was Karçimsa A.Ş. s Operations Manager. In 2006 Mr. Sarıer became Assistant General Manager Responsible for Ready-Mixed Cement at Çimsa, and was appointed as the Assistant General Manager Responsible for Cement Production as of Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report 2012

17 Ayfer GÜREŞ Assistant General Manager, Corporate Development and Human Resources (Untill ) Ayfer Güreş holds a bachelor s degree in Psychological Counseling and Guidance from Boğaziçi University and a master s degree in Organizational Psychology from Columbia University. Starting her career at Mudo A.S. as a Human Resources Specialist, after completing her post graduate education, in 1994 started working as a specialist in Sabancı Holding. Continuing her career between 1997 and 2007, at Sabancı Holding as Human Resources Manager, she started to work in 2007 at Çimsa Çimento as a Corporate Development and Human Resources Manager. Served as the Assistant General Manager in charge of Corporate Development and Human Resources until the end of Ülkü ÖZCAN Strategy and Marketing Manager After graduating from Galatasaray High School and Marmara University s Department of Business Administration (English), Ülkü Özcan began her career at Lafarge Turkey in Respectively she served as a Strategic Planning Expert ( ), as Strategy and Business Development Manager ( ), and Marketing Project Manager ( ). Since January 2010 serving as Strategy and Business Development Manager at Çimsa, began to work as Strategy and Marketing Manager since Mutlu DOĞRUÖZ Assistant General Manager, Investment (Until ) 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 operations of their automation systems. In 1989 he was appointed Deputy Project Manager at Saudi Services Group. Following four years of experience there he joined Çimes Elektronik Sanayi. At Çimes, Mr. Doğruöz served as the Company Manager, the Assistant General Manager and the General Manager respectively. Joining Çimsa Çimento as the company s Investment Manager in 2006, Mutlu Dogruöz was appointed as Assistant General Manager responsible for investments on Since he has been appointed as the General Manager of Afyon Çimento Sanayi T.A.Ş. Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report

18 Çimsa, working to improve Turkey s standard of living for 40 years. 16 Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report 2012

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20 An Assessment of the Cement Industry in 2012 In 2012, cement production actualized in the level of 69 million tons, and cement consumption actualized in the level of 58 million tons. While demand for cement in the world in general has been in low levels in developed countries, it has increased considerably in developing countries. In 2012, while cement consumption in developed countries shrank by 6%, it increased by 3% in developing countries (except China and India). Global Cement players have been affected by the recession in the developed markets, political developments in the Middle East and North Africa and increase in energy prices and thus no improvement took place in their profit margins. In 2012, while the cement sector shrank in Northern Europe by 6%, Southern Europe by 21%, it recorded growth in Central Asia by 3%, Middle East by 3%, Eastern Europe by 2%, Africa by 6%, Latin America by 5%. North America, by showing 9% growth, became the most growing region. Rapid increase in the construction sector in Turkey in 2011 increased the sector s demand and the sector retained its current status in Construction sector, according to cumulative results of 2012 third quarter, has recorded 1% growth compared to previous year. Turkey, being the leader in Europe on cement production, is on 4th place in the world after China, India and U.S.A. In Turkish Cement sector 48 integrated plants, 19 grinding and packing plants totaling 67 plants are active. Cement production in 2012 in Turkey actualized in the level of 69 million* tons and cement consumption actualized in the level of 58 million* tons. Capacity exceeding the local demand has been exported. However, especially the civil war in Syria, social and political disturbances in the Middle East and North Africa region causes Turkey s cement and clinker export to go down in Total cement and clinker export in 2012 actualized as 14 million tons by decreasing by 6% compared to Cement sector, while continuing to grow, being aware of its environmental responsibilities, has aimed to obtain an effective role regarding expansion of sustainable growth. Sustainable development especially within the frame of European Union compliance regulations has been the prominent subject in 2012 just as it was in With the aim to decrease energy costs and percentage of carbon dioxide released into the atmosphere, use of waste fuels, alternative raw materials, waste water discharges and prevention of soil pollution indicate as the most important subjects. *It is a company assumption using Turkish Cement Manufacturers Association data and adding estimated sales of non-member manufacturers. 18 Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report 2012

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22 Domestic Cement Facilities Çimsa sustains its domestic activities with its 5 integrated plants in Mersin, Eskişehir, Kayseri, Niğde and Afyonkarahisar, 1 grinding plant in Ankara, Marmara Route Harbor, Cement Packing plant and Malatya Cement Packing Plant. Mersin Plant In Mersin Plant grey clinker/cement, white clinker/ cement, calcium aluminate clinker/cement production is done with 4 production lines. Grey clinker production capacity is thousand tons/year, white clinker production capacity is thousand tons/year and calcium aluminate clinker production capacity is 30 thousand tons/year. Plant s first production line which started production in 1975 has a rotary furnace without calcinations in 5.25 m diameter and 83 m long. In 1983, to save on fuel costs, it has been modernized by adding coal grinding and burning systems. There are two crushers, one pre-homogenization unit, two raw material ball mills, two raw meal bin and two closed clinker stock halls in the plant. With the modernization work completed in the first quarter of 2010, FLS SF-Cooler type cooling system with grid was built after changing the existing planet type clinker cooling system. With this investment, its capacity reached tons/day and the necessary heating consumption for clinker production decreased. Çimsa, in its Mersin Plant, aims to compensate 50% of the electricity used in these two lines transforming the waste gas from 1st and 2nd production lines with the Electricity Production from Waste Gas Project put into work in April of In addition, contribution is done to the environment with less carbon oscillation. Hacı Sabancı White Cement Production Plant (Third plant production line) taken into operation in December 1999 has a rotary furnace in 3.75 m diameter and 57 m length that has tons/day production capacity. Plant consists of one raw materials mill that has crusher and pre-homogenization facility, one coal mill, one raw meal bin, rotary furnace and clinker stock hall. Calcium Aluminate Cement Production Facility was built with a furnace having clinker production capacity of 2 tons/hour, one cement mill having a 5 tons/hour crushing capacity and a packaging unit. By adding a second furnace with 2 tons/hour clinker capacity in 2007, the facility s production capacity has been increased. With the packaging unit built in 2009, the products are offered to customers with 25 kg bags, with pallets and with 1.5 tons big bags. Rotary kiln with 3,6m diameter, 49m length in the second plant production line that can produce both grey and white clinker was put into work on December Plant consists of a raw material mill that has crushers and pre-homogenization system, one coal mill, two raw meal bins, rotary furnace and a clinker stock hall. Production capacity of this plant that has ability to produce both grey and white clinker according to sales demand is; 1,845 tons/day grey clinker, tons/day white clinker. Paper Bag Facility In 2012, 9.4 million pieces of paper bags were produced in Mersin Plant and used in Mersin, Kayseri, Niğde, Eskişehir and Ankara Plant. Kayseri Plant Çimsa Kayseri Plant was built by Akçimento, one of Sabancı Holding companies, in 1992 with 1.6 million tons cement grinding and packing capacity and was acquired by Çimsa in In 2005, to increase the cement grinding capacity and decrease energy 20 Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report 2012

23 consumption, pre-crusher system was built for the cement mill. With the aim to transform the current facility into a integrated cement plant, in the plant where the foundations of clinker production line was made in October 9, 2004, as the construction, assembly and implementation works completed, firs clinker production actualized on December 26, In the facility where the latest technology is used, ILC type low NOx emission pre calcination system as the main unit, pre warmer with five level cyclone and rotary furnace with 55 m length and 3.6 m diameter are located. In the plant with clinker capacity of tons/ day, there are also one raw material crusher, clay and lime stone pre homogenization facility, one coal ball mill, one vertical raw meal mill, and tow cement ball mills. As a successful result of Çimsa s understanding of respect to the environment and sustainability, Çimsa Kayseri Plant was chosen as Turkey s cleanest industrial establishment in 2012 during the My Clean Turkey activities done within the scope of June 5 World Environment Day and was rewarded with Environment Award. Eskişehir Plant Eskişehir Cement Plant has been put into work in 1957 With 3.6 m diameter, 125 m long wet furnace with 150 thousand tons/year capacity and continued its production until The current first production line was put into work in 1976 with three level pre warmer and dry system furnace with 3,6 m diameter and 52 m length with a 275 thousand tons/year capacity and reached 425 thousand tons/year level. Eskişehir Plant was turned over from Saving Deposit Insurance Fund to Çimsa Çimento Sanayi ve Ticaret A.S. on 27 December Following the acquisition of the plant by Çimsa in May 2007, the first production line had a dynamic separator added to its raw material mill, the current clinker cooler was replaced, the rotary kilns burning systems, dosage systems and its new electro filter units were renewed. As a result of these investments, a clinker production capacity of 1,750 tonnes/day was achieved. A new closed circuit cement mill with a capacity of 85 tons/ hour was also put into work. On September 2007, a completely new coal vertical mill system was commissioned. This could serve both production lines and has a capacity of 40 tons/hour. The old coal systems were deactivated. On 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 2,300 tons/day, bringing the plant s total production capacity to 4,050 tons/day. The Eskişehir Cement Plant became a modern production facility following the installation of its raw material crusher and a raw material pre homogenization system which were both installed in January 2008, at the same time as the second production line. The plant s cement silos were installed in The plant also features three ball cement mills used for production of the final cement product. Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report

24 Domestic Cement Facilities It is Çimsa s goal to become one of Turkey s leading waste disposal companies. The Hotdisc Project (Waste Supply and Waste Energy Recovery) was carried out at the Eskişehir Plant as part of this plan. The Hotdisc Project will control, both, the kilns processes and its overall product quality, in addition to generating from waste 30% of its total calorific consumption. Niğde Plant Established in 1957, the Niğde Cement Plant started production in 1964 following the completion of its production line. At the time it was a wet system with a capacity of 85,000 tons/year. The plant s total production capacity was increased to 350,000 tonnes/year after the its second production line, a dry system, was put into work, on September 2, Over the following years, the wet system clinker line was shut down because it had reached the end of its economic and technological life, while production continued using the dry system s rotary furnace. After the privatization of the plant, the kilns capacity of 850 tons/day was increased to 1,240 tons/ day following investments made during 1993 including the replacement of the rotary furnace unit s cyclone, a modernization of its transport, cooling and burning systems, and the replacement of its exhaust gas fan and its electro-filter. Pursuant to the Competition Authority s ruling 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 as of November the 1st, 2007, continuing production under this name. After it was acquired by Çimsa, many production and energy efficiency improvements were made at the Niğde Cement Plant and it has currently reached a clinker production capacity of 1,380 tons/day. In addition to the rotary furnace with its four-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. Afyon Plant Afyon Cement Plant, began production in 1957 by engaging 2,8 m diameter and 69,5 m long wet system furnace with 85 thousand tons capacity. In 1965, by turning the furnace into a semi-wet system, clinker production increased to 160 thousand tons. The 2nd furnace, again built as semi-wet system, with 3.6 m diameter, 53.5 m long was engaged in 1966 and the production capacity of the plant increased to 400 thousand tons. In the facility with the capacity reaching 460 thousand tons today with improvement done in different dates, there are 2 hammer crushers, 2 ball raw meal mills, 2 ball coal mills and 3 ball cement mills. 51% of its shares bought by Çimsa on 31 May 2012, Afyon Çimento Sanayi Türk Anonim Şirketi, are continuing its activities as one of Çimsa participants. Ankara Cement Grinding and Packing Facility Ankara Lalahan Cement Grinding and Packing facility was construction began in January 2001 and was put to work on July In 2005 it was added to Çimsa group together with Eskişehir Cement Plant. 22 Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report 2012

25 Not having a rotary kiln, the clinkers provided by Çimsa s other Plants are grinded in Ankara Plant and turned into cement and sold. In Ankara Cement Grinding and Packing facility, besides 85 hour capacity cement mill, there is one raw material crusher, two cement bins and a packing unit. Marmara Rota Port Cement Packing Facility Located at the Kocaeli Yarımca Gulf Rota Port, the Marmara Facility has been leased by Çimsa in June Production Numbers It has an installed silo capacity of 5,000 tons, and a bagged and bulk cement packing/loading capacity of 100 tons/hour. Çimsa Super White Cement is sent from Mersin in bulk and stored in facility s 5,000 tons capacity horizontal silo. White cement is sold both in bulk and in packages from the Marmara Facility. Malatya Cement Packing Facility Established in 1996 near the Malatya Battalgazi Train Station, the Malatya Cement Packing Facility has a processing and packing capacity of 60,000 tons/year. At the facility there are three cement silos with a total capacity of 900 tons. Cement is sold here both packaged and in bulk Production Numbers Clinker Production Cement Production Grey Clinker ton Grey Cement ton White Clinker ton White Cement ton ISIDAÇ - 40 Clinker ton ISIDAÇ ton Sulphate Resistant Clinker ton SDÇ Cement ton Total ton Total ton 2012 Rotary Kiln Capacity Usages Mersin Rotary Kiln I 82% Mersin Rotary Kiln II 90% Mersin Rotary Kiln III 92% Kayseri Rotary Kiln 93% Eskişehir Rotary Kiln I 85% Eskişehir Rotary Kiln II 95% Niğde Rotary Kiln 99% Afyon Rotary Kiln I 47% Afyon Rotary Kiln II 85% Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report

26 Foreign Terminals Çimsa, one of the first three brands in the world in white cement field, is an international cement manufacturer with its terminals in; Hamburg (Germany), Trieste (Italy), Seville (Spain), Alicante (Spain), Famagusta (TRNC), Constanta, (Romania) and Novorossiysk (Russia). Cimsa Cement Sales North GmbH (Germany) Built from 50% each partnership of German CTN GmbH and Çimsa, CSN is conducting white cement and ISIDAC 40 marketing activities in Germany with its 7,500 ton capacity bulk cement silo and is marketing white cement in bulk to Germany, France and Benelux countries. Terminal makes it possible to reach the Italian market which is Europe s third largest white cement consumer after Spain and France, with Çimsa brand. The terminal, with its advantageous location, is in a position to not only sell to Northern Italy, but alto to developing Bosnia- Herzegovina, Slovenia and Croatia, developed South Eastern Germany and Austria. Company, in addition, is given service to the market with a sales office in Hamburg and an administrative office in Emden. SIDAÇ 40 sale is also done from the terminal. ISIDAÇ 40 is transported from Turkey with bags. German white cement market, together with the Spanish market is one of Europe s most important markets. Conducting sales through the terminal since 2000 to the market, Çimsa reaches directly to customers in this market with its own brand. Cimsa Adriatico S.R.L (Italy) Çimsa, by acquiring majority shares of Medcon Company on February 9, 2010, became the majority owner of 4 units of tons silos at the Trieste Port. Company title was changed to Çimsa Adriatico SRL on April 26, Terminal is suitable to store and pack both white and grey cement. In addition, it also procures ISIDAÇ 40 cement. Cimsa Cementos Espana S.A.U. (Spain) Çimsa, with its terminal located in Seville since 1996, is reaching directly to Spanish white cement consumer and this way it is increasing marketing effectiveness of its cement. White cement, produced in Mersin Cement Plant comes to Seville Port by vessels in bulk. With the help of cement trailers, they are transported from here to two ton silos Çimsa Cementos owns. Besides the 125 tons/day capacity packing facility, there is also a facility producing cement mixed floor covering material in the terminal. Çimsa Cementos Seville is marketing Çimsa white cement to Madrid, Cordoba and Granada markets since Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report 2012

27 ISIDAÇ 40 (Calcium Aluminate Cement), on the other hand, is transported from Turkey in bags and is again being sold from the terminal. With the aim to increase the focus to Spanish consumer who is Europe s most important ten most sophisticated white cement market, Çimsa Alicante terminal with its construction completed, is put to use since June Alicante terminal, active since 2011, addresses to Europe s most important white cement consumer, the Spanish market. There is 1 silo with ton capacity and 1 packing facility in the terminal. For customers who want cement in bags, Çimsa imports cement in bags from Mersin and sells them. Cimsarom Marketing Distributie S.R.L. (Romania) In order to serve the Romanian market which is rapidly developing after joining the European Union, company established in Constanta is marketing Çimsa white cement and ISIDAC 40 to mainly Romania and surrounding markets. Cimsa - Rus Cement Trading Company Limited (Russia) Çimsa Cement Free Zone Ltd. (TRNC) Çimsa, Turkish Republic of Northern Cyprus (KKTC), is giving service to the market since 2005 with a terminal having 5,000 tons grey cement storage capacity. Grey cement produced by Çimsa in Mersin Cement Plant is transported to Cyprus Famagusta Port from Mersin Port and is pressed in Çimsa Cement Free Zone silos from the ships by re-claimers. Sales from silos are done in bulk according to demand in the market. Çimsa, in order to meet the demands in rapidly growing Russia decided to build a terminal in Novorossiysk in 2008 and establishment procedures of ÇİMSA RUS CTK titled company s completed by July tons silo capacity white cement packing facility, active since 2008, is meeting the demands of customers in the Russian market. In this market, suitable also for special product customers, ISIDAÇ 40 product is highly demanded as well. Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report

28 Cement Products Çimsa, with its innovative approach brought by its 40 years of experience and technologic infrastructure is offering special products and applications geared towards its customers needs. Standard Products Çimsa is producing mixed and pure Portland cements in compliance with TS EN standards, with resistance class 32.5 & 42.5, with early and normal resistance. All produced cements are CE certified and are offered for sale as bulk, big bag, and sling bag and with bags. Portland Cement CEM I 42.5 R Portland cement produced according to TS EN standards ensures high early and final endurance. Suitable for general use, it can be used in cases where early mold needs to be taken, especially in prefabricate applications. It is a product preferred in concrete casting in cold weather. Portland Composite Cement CEM II / B-M (V- L) 42.5 R Portland composite cement produced according to TS EN standards is suitable for general use since its firs resistance is high. It is preferred in concrete casting in hot weather. It can be applied on industrial grounds containing mid degree sulfate. It can also be used in buildings where Alkali aggregate reaction risk is high. Pozzolanic Cement CEM IV / B (P) 32.5 R pozzolanic cement produced according to TS EN standards is preferred in applications such as plastering, cement finish and grouts. Sulfate Resistant Portland Cement CEM I SR 5 42,5 R sulfate resistant Portland cement produced according to TS EN standards can be used in environments faced with high sulfate such as sea water, sewage. Çimsa Super Bims Cement CEM II / A-L 42.5 R Çimsa Super Bims cement produced according to TS EN standards are Portland cement with limestone type and is especially designed for bims manufacturers. It ensures high performance in taping and transportation with early wall socket extraction, early high endurance and low curing durations. Blast Furnace Slag Cement CEM III / A 32.5 R cement produced according to TS 26 Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report 2012

29 EN standards, with its low heat of hydration, is suitable for use especially in production of big building materials and concrete casting in high temperatures. It is preferred in plaster, cement finish and grout productions. Special Products White cement and calcium aluminate cement are found in the specific products portfolio produced for specific needs. Çimsa Super White Cement Çimsa Super White Cement which is CEM I 52,5 R white Portland cement produced according to EN standards is used in building chemicals, tile production, pre-casting (prestressed sleeper and concrete applications) sectors. Ecowhite Ecowhite, taking place in CEM II / B-L 42,5R Portland lime stone cement class, produced according to TS EN standards, finds vast usage possibilities in tiling, building chemicals and precast fields. It is Turkey s whitest cement (min. 86.5% whiteness). Calcium Aluminate Cement ISIDAÇ 40 TS EN standards, is used in ISIDAC 40, refractor, building chemicals and precast fields. In Turkey it is only being produced by Çimsa and is in special cement classification. With its 6 and 24 hour high endurance values, it possesses much higher resistance than Portland cement. Its thermal resistance and sulfate endurance is very high. Produced in Turkey for the first time by Çimsa, ensures aesthetics and high endurance with minimum 85% whiteness it possesses. Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report

30 Ready Mixed Products Çimsa, by carefully following technological and scientific developments in ready-mixed concrete sector, continues to develop innovative products and to offer specific solutions that answer different needs of its customers. Standard Product Çimsa, besides its specific products, by producing high endurance concrete (C50-C200) and, all concretes determined by TSE standards, continues its activities as a company that emphasizes customer satisfaction, sustainable improvement and quality. Special Products Visko Concrete (Self-Compacting Concerete Visko Concrete is a product having much superiority when compared to a regular concrete that Self- Compacting Concerete. Visko Concrete, despite its liquidity, will spread itself without decomposing and without a need to tighten it with a vibrator, by rapidly moving between dense fittings, it will ensure a smoothes and full surface. Drabeton (Concrete With Dramix ad Fiber) It is a product offering complete solution on floor concretes with fittings. Drabeton; is a composite material, is flexible, is ductile, has high load endurance features. Drabeton, with the help of dramix steel fibre reinforced in it, without a need for additional fittings, is offered to the market as a concrete that has high resistance against pulling and stretching resistances, has durability. Deko Concrete (Decorative Colored Imprinted Concrete) Deko Concrete, known as Textured Decorative Concrete, is a floor covering material that can easily be used on interior and exterior areas. Obtaining the surface image the customer wants directly from the concrete, at the same time aging of the concrete are specifics of this concrete type. İzoşap (Ready Lightweight Screed) İzoschappe is a product with high amount of drifted air and with low density due to special chemical additives in it. This way, it contributes to heat insulation. Besides these specifications, it is a new product that can be easily pumped and is user friendly. 28 Çimsa Çimento Sanayi ve Ticaret A.Ş. Annual Report 2012