Italcementi in Egypt The perspective of a leading international investor

Transcription

1 Italcementi in Egypt The perspective of a leading international investor Milan, Italgen 4 th February - Italcementi 2014 Group 1

2 Italcementi Group at a glance The world s fifth largest cement producer A worldwide presence in 22 countries An overall staff of 19,000 people A consolidated production capacity of approximately 65 million tons 2012 annual sales amounting to 4.5 billion Euro The first cement company to be listed on the Italian Stock Exchange Over 145 years-old successful business strategy implemented by a family-driven company

3 Italcementi Group main companies network NORTH AMERICA (U.S.A./CANADA) ESSROC ESSROC SAN JUAN CIMENT QUEBEC (JV 50%) ESSROC READY MIX SPAIN FYM MOROCCO CIMENTS DU MAROC BETOMAR ITALGEN MAROC MAURITANIA MAFCI GAMBIA GACEM FRANCE CIMENTS FRANÇAIS CIMENTS CALCIA UNIBETON GSM BELGIUM CCB EGYPT SUEZ CEMENT GROUP OF COMPANIES RMB ITALGEN MISR SYRIA * CHINA * BULGARIA DEVNYA CEMENT KAZAKHSTAN SHYMKENTCEMENT BETONATA KUWAIT HILAL CEMENT AL MAHALIYA INDIA ZUARI CEMENT THAILAND JALAPRATHAN CEMENT ASIA CEMENT JALAPRATHAN CONCRETE SRI LANKA SINGHA CEMENT ITALY ITALCEMENTI CALCESTRUZZI CTG ITALGEN GREECE HALYPS CEMENT ET BETON ALBANIA EUROTECH CEMENT SAUDI ARABIA ICC CYPRUS * VASSILIKO CEMENT * Group s presence in the Board of Directors of local companies

4 Sustainability is the foundation of our Group strategy Industrial Performance Growth Innovation Sustainability Italcementi Group 4

5 R&D- i.lab, the heart of Group innovation Universities Network Market Customers Suppliers Partners > 100 engineers, chemists, physicists, geologists 7500 m 2 of laboratories > 100 patents since 1992 > 210 M turnover from innovative products time-to-market halved since

6 Italcementi Group in Egypt (Suez Cement G.C.) Italcementi Group entered the Egyptian market in The investment in Egypt of Italcementi Group together with other co-investorshas been over 1 billion euro. Suez Cement integration in the Italcementi / Ciments Français industrial network has been an important opportunity of development for the Egyptian company In addition to economic, industrial and social commitment to Egypt, Italcementi Group has assumed and received also a key commitment at institutional level Italcementi has been one of the founding member of the Italian-Egyptian Business Council (last Board held yesterday in Rome at the presence of H.E. Minister Fahmy) playing a role in promoting additional FDI in the two Countries.

7 Suez Cement at a glance An overall staff of about 4,500 direct employees in cement and ready mix concrete The largest cement producer in Egypt A production capacity of approximately 12 million tons per year An industrial network composed of 5 cement plants, 2 terminals and 20 concrete batching units Listed on the Cairo Alexandria Stock Exchange

8 Suez Cement at a glance Strong commitment to Sustainable Development SCGC has received several awards from the Ministry of Environment for its environmental management and performance. The Kattameya plant was recently honored with the Greenest Company in Egypt first prize certificate for SCGC s green achievements and proactive environmental practices.

9 Suez Cement energy issues: fuels Increasingly, hydrocarbon resources are failing to meet the country s rising energy demands. The chronic shortage of natural gas and heavy fuel oil is one of the main challenges facing cement producers (and the whole economy) in Egypt. Indicators show the energy crisis is unlikely to be alleviated in the near future, despite investment in renewable energy projects (where Italcementi Group has a leading position) In 2013, as a result of fuel supply shortages, the cement industry s clinker cement production capacity has fallen by 35% to 40% nationwide, resulting into lack of production to meet demand (exports stopped and imports started to complement local production). SCGC s energy strategy focuses on incorporating more biomass fuels and municipal waste derived fuels in its fuel mix, which is in line with worldwide industry trends and standards. Three of its five plants (Kattameya, Suez and Helwan) have already started to implement waste projects since last year.

10 Suez Cement energy issues: power In addition, a major wind farm project - the first FDI in renewable energy in Egypt - is currently under development BUT an energy mix similar to most world countries, including Europe, is urgent and necessary

11 Italgen project first FDI in renewable energies in Egypt Being cement production an energy intensive process (both in terms of consumption and costs), Italcementi Group has an historical presence in the power generation sector (hydropower plants in Italy). Taking advantage of this know-how, Italgen was established in 2001 by Italcementi with the mission to develop renewable energy initiatives also at international level, in line with the key sustainable development and innovation policies of the Group (and therefore focusing on renewable energies). In Egypt, Italcementi Group has been the first private investor to trust the huge potential of the Country in terms of renewable energy and started developing through Italgen- the first Foreign Direct Investment in renewable energy at the end of

12 Italgen project first FDI in renewable energies in Egypt Location Installed Capacity Business model Gabal El Zeit (Red Sea) Egypt 120 MW (Phase I) / up to 400 MW (total project) Captive use to Companies of Suez Cement Group Identified Area Site Overview 12

13 Italgen project first FDI in renewable energies in Egypt represents a relevant contribution to meet the ambitious targets set by Egyptian Government in terms of Renewable Energies (Phase I + Phase II) is the first concrete project by the private sector in renewable energy sector in Egypt (Phase I already fully permitted) is contributing to providing Ministry of Energy and Ministry of Environment with know how / technologies / benchmarks in line with the most advanced international standards (major involvement of local experts during Environmental Impact Assessment) will represent an opportunity for further economic development in the Red Sea Governorate, in terms of technology, know-how & job positions. 13

14 Thank you! 14