Rumeli Cement Group Plants Preliminary Information September 2004
The present document has been prepared by Rumeli Group, Ernst & Young and Garanti Securities in good faith for information purposes only, but without assuming a duty of care and any other liability. Rumeli Group, Ernst & Young and Garanti Securities or their employees, officers, directors, advisors or counsels give no warranty or representation as to the accuracy and completeness of the information herein contained and shall not be liable for any errors or omissions. The recipients of this document shall make and rely on their own analysis and decisions in taking or no taking any action in connection with this document and a possible transaction. This document shall in no event, imply or otherwise, be deemed, or interpreted as an offer to sell. Rumeli Cement Group plants management and control was taken over by Savings Deposit Insurance Fund as of February 2004
Rumeli Group Plants Lalapasa Bartin Ladik Eskisehir Trabzon Lalahan Ergani Van Gaziantep Sanliurfa Cement Plant Grinding Station 3
Cement Plants in Turkey Lalapasa Akcansa Canakkale Pinarhisar Akcansa Bcekmece Marmara Ambarlõ Balikesir Bakircay Baticim Cimentas Batõsoke Denizli İkon Aslan Nuh Bursa Bolu Istaş Eskisehir Afyon Goltaş Konya Aytek Ladik Eregli Karcimsa Bastas Ankara YL Hasanoğlan Bartõn YL Çorum! Lalahan YL Nevsehir OYSA Nigde YL Yozgat Cim Kayseri YL Samsun YL Sivas Unye Adiyaman Elazig Trabzon Ergani Kars Askale Van Kurtalan Ozgur Ado Cimsa Adana Gaziantep OYSA İskenderun Sanlõurfa Mardin Cement Plant Grinding Station 4
Capacities* RUMELI 4,009/7,812 SABANCI 5,850/9,841 ITALCEMENTI 2,373/4,859 INDEPENDENT 8,306/15,762 Gaziantep 495/1,089 Cimsa 2,100/2,800 Afyon 470/640 Bursa 1,350/2,900 Ergani 578/1,162 Cim. Kayseri 0/600 Ankara 870/1,510 Nuh 2,100/3,750 Lalapasa 578/1,162 Akcansa B.C. 1,850/2,700 Balikesir+P.hisar+ Ambarli+Marmara 1,033/2,700 Denizli 1,815/2,318 Sanliurfa 578/581 Akcansa C. 1,900/3,500 OYAK 5,705/9,514 Goltas 1,320/2,924 Trabzon 356/523 Karcimsa 0/241 Adana 2,260/4,094 Askale 450/600 Van 214/559 LAFARGE 1,251/2,880 Unye 1,485/1,800 Adiyaman 627/990 Barin 221/376 Aslan 1,251/2,700 Bolu 1,320/2,600 Kurtalan 644/972 Ladik 578/1,162 Eregli 0/180 Mardin 640/1,020 Ikon 0/350 Eskisehir 495/1,016 YLOAC 1,705/3,597 OYAK SABANCI 415/1,860 Ado 0/240 Lalahan 0/182 Corum 535/735 OYSA Nigde 415/1,200 Ozgur 0/180 CIMENTAS 1,850/3,014 Yozgat 750/798 OYSA Iskenderun 0/660 Istas 0/250 Cimentas 1,520/2,500 Samsun 0/449 VICAT 2,250/3,744 Aytek 0/288 Kars 330/475 Sivas 420/615 Konya 1,500/2,064 Bakircay 0/39 Hasanoglan 0/500 Bastas 750/1,680 TOTAL 33,363/66,794 BATICIM 2,196/2,994 Nevsehir 0/500 *1,000 tonnes clinker/cement Baticim 1,400/1,800 OYAK/GAMA 301/953 Batõsoke 796/1,194 Elazig 301/953 5
Bartin " Bartin plant was founded in 1962 and privatised in 1993. " Clinker capacity is 220,968 tonnes/year. " Cement capacity is 377,520 tonnes/year. " The plant is located on an open area of 756,022 m2 and covered area of 145,107 m2. " Number of personnel (including operating companies) is 203, of which 49 are white collar and 154 are blue collar. " Distance to Bartin port is 10 km and distance to E5 highway is 180 km. " Distance to Kokaksu train station is 40 km. " The plant s proximity to an iron and steel producer is an advantage in the supply of slag. 6
Bartin " Type of cement produced is KC 32.5. " The plant operates with wet process. " Grinding mills consist of 2 KRUPP (2x14 tonnes/hr) and 1 F LILLE (24 tonnes/hr). " Bartõn plant s share in Black Sea Region cement capacity is 5%. " In 2003 Bartõn plant produced 208,000 tonnes of cement (2002: 170,479) " 1H04 cement sales was 66,177 tonnes (1H03: 63,497). " The plant has ISO 9001:2000 certificate. Licenses Furnace Type Area (m2) Reserves (tonnes) Type of License Termination date Owner of property Marl 15,000 400,000 Stone quarry 31/12/2004 Forest/Rent Marl 100,188 3,000,000 Stone quarry 02/05/2006 Plant Limestone 68,500 3,425,000 Mine 15/03/2005 Forest/Rent Trass 20,000 900,000 Stone quarry 01/09/2004 Forest/Rent 7
Ladik " Ladik plant was founded in 1983 and privatised in 1993. " Clinker capacity is 577,500 tonnes/year. " Cement capacity is 1,161,600 tonnes/year. " The plant is located on an open area of 482,248 m2 and covered area of 25,941 m2. " Premises of Merkez Kagit Torba are located in the land. " Number of personnel (including operating companies) is 237, 51 of which are white collar, 186 of which are blue collar. " Distance to Samsun port is 100 km and distance to highway is 13 km. " Distance to Toptepe train station is 13 km. 8
Ladik " Type of cement produced is PCC/B-32.5 and PCC/A-42.5. " Clinker technology used is dry process. " Grinding mills consist of 2 FLS (80 tonnes/hr). " Ladik plant s share in Black Sea Region cement capacity is 14%. " In 2003 Ladik plant produced 372,710 tonnes of cement (2002: 435,580) " 1H04 cement sales was 208,053 tonnes (1H03: 166,362). " The plant has ISO 9001:2000 certificate. Licenses Furnace Type Area (m2) Reserves (tonnes) Type of License Termination date Owner of property Limestone-1 2,470,000 61,937,500 Mine 29/05/2011 Treasury Limestone-2 2,500,000 62,000,000 Mine 10/07/2012 Treasury Clay 365,565 6,000,000 Mine 04/09/2012 Plant 9
Trabzon " Trabzon plant was founded in 1967 and sold to Rumeli group in 1992 through privatisation. " Clinker capacity is 356,400 tonnes/year. " Cement capacity is 522,720 tonnes/year. " The plant is located on an open area of 79,212 m2 and covered area of 15,129 m2. " Number of personnel (including operating companies) is 184, 34 of which are white collar, 150 of which are blue collar. " Distance to Trabzon port is 1 km and distance to state highway is 100m. " Raw material furnace is at a distance of 30km. " The plant is located inside the city. " The plant s raw material quarries are operated by subcontractor. 10
Trabzon " Type of cement produced is CC-32.5. " Clinker technology used is dry process. " Grinding mills consist of 1 HUMBOLD (55 tonnes/hr), 1 KRUPP (17 tonnes/hr). " Trabzon plant s share in Black Sea Region cement capacity is 6%. " In 2003 Ladik plant produced 179,804 tonnes of cement (2002: 241,358) " 1H04 cement sales was 134,932 tonnes (1H03: 105,088). " The plant has ISO 9001:2000 certificate. Licenses Furnace Type Area (m2) Reserves (tonnes) Type of License Termination date Owner of property Limestone 338,400 8,870,708 Mine 15/01/2012 Plant Marl 27,600 1,922,500 Stone quarry 17/04/2005 Plant 11
Black Sea Cement Market Local Producers PLANT GROUP LOCATION TYPE CAPACITY ('000 Tonnes) Clinker Cement Lafarge Eregli Lafarge+Aslan+Aurelius Eregli Grinding - 180 Bartin Rumeli Bartin Integrated 221 378 Bolu Cimento Oyak Bolu Integrated 1,320 2,600 Corum Yibitas+Lafarge Corum Integrated 535 735 Ladik Rumeli Ladik Integrated 578 1,162 Samsun YLOAC Samsun Samsun Grinding - 450 Unye Cimento Oyak Unye Integrated 1,485 1,800 Trabzon Rumeli Trabzon Integrated 356 523 Aytek Independent Kocaeli Grinding - 288 Karcimsa Sabanci Karabuk Grinding - 241 12
Black Sea Cement Market " The Black Sea Region has a 12% share in clinker capacity, 12% in cement capacity and 14% in cement consumption. " The region accounts for 13% of the total population and contributes 9% to Turkey s GNP. " Three groups are active in the region, namely Oyak, Rumeli and YLOAC (Yibitas Lafarge). Oyak is the market leader with a 53% share. " Production at Rumeli plants fell sharply after 1997 at the gain of Oyak companies. " Rumeli is the second largest producer in the region with 25% share in cement capacity. Rumeli 25% Cement Capacity by Group Lafarge-Yibitas 16% Sabanci 3% Other 3% Oyak 53% 13
Lalapasa " Lalapasa plant was founded in 1991 and sold to Rumeli group in 1996 through privatisation. " Clinker capacity is 577,500 tonnes/year. " Cement capacity is 1,161,600 tonnes/year. " The plant is located on an open area of 571,313 m2 and covered area of 39,868 m2. " Number of personnel (including operating companies) is 173, 55 of which are white collar, 118 of which are blue collar. " Distance to Tekirdag port is 157 km, to TEM highway 20 km and Edirne train station 25 km. 14
Lalapasa " Type of cement produced is PCC/A-32.5R, PCC/B-32.5R and PC-42.5. " Clinker technology used is dry process. " Grinding stations consist of 2 FLS (80 tonnes/hr). " Lalapasa plant s share in Marmara Region cement capacity is 6%. " Possibility to export to neighboring countries Greece and Bugaria. " In 2003 Lalapasa plant produced 356,170 tonnes of cement (2002: 415,015) " 1H04 cement sales was 227,079 tonnes (1H03: 114,288). " The plant has ISO 9001:2000 certificate. Licenses Furnace Type Area (m2) Reserves (tonnes) Type of License Termination date Owner of property Limestone 1,402,300 20,700,000 Mine 06/04/2009 Treasury Clay 9,950 167,160 Stone quarry 18/05/2005 Plant 15
Marmara Region Cement Market Local Producers PLANT GROUP LOCATION TYPE CAPACITY ('000 Tonnes) Clinker Cement Lalapasa Rumeli Edirne Integrated 578 1162 Set (Trakya) Set+Italcementi Pinarhisar Integrated 700 1000 Akcansa Sabanci Holding+CBR Canakkale and Buyukcekmece Integrated 3750 6200 Set (Ambarli) Set+Italcementi Ambarli/Ist Grinding - 500 Aslan Cimento Lafarge Darica/Kocaeli Integrated 1250 2700 Ikon Independent Izmit Grinding - 350 Nuh Cimento Independent Hereke/Kocaeli Integrated 2100 3750 Set (Balikesir) Set+Italcementi Balikesir Integrated 350 500 Bursa Cimento Independent Bursa Integrated 1350 2924 Set (Marmara) Set+Italcementi Istanbul Grinding - 710 16
Marmara Region Cement Market " Marmara is the leading region in terms of cement production (28%), consumption (25%) and exports (41%). " The region accounts for 27% of Turkey s total population and makes the largest contribution to GNP with 37%. " There are 7 players in the Marmara Region with 8 integrated plants and 3 grinding facilities. " Regional leader Akcansa is also Turkey s biggest producer. Other 35% Cement Capacity by Group Sabanci 31% " Due to its rapid urbanisation and industrialisation, Marmara Region has also attracted foreign investors, namely CBR, Lafarge and Italcementi, which together control 60% of capacity and a similar percentage of cement sales in the region. " Rumeli s share in regional cement capacity is 6%. Lafarge- Yibitas 14% Italcementi (Set) 14% Rumeli 6% 17
Eskisehir " Eskisehir plant was founded in 1957 and acquired by Rumeli Group in 2002. " In 1976 a precalcination modernisation investment was made. " Clinker capacity is 495,000 tonnes/year. " Cement capacity is 1,016,400 tonnes/year. " The plant is located on an open area of 1,944,991 m2 and covered area of 84,403 m2. " Number of personnel (including operating companies) is 126, 53 of which are white collar, 73 of which are blue collar. " The plant is located at the conjunction of Istanbul-Eskisehir highway and at a close distance to coal mines. " Railway passes through the premises, where loading and unloading can be achieved. 18
Eskisehir " Type of cement produced is PC-42.5; PC/B 32.5R and MC-12.5X. " Clinker technology used is dry process. " Grinding mills consist of 2 MIAG s (45 tonnes/hr and 95 tonnes/hr). " Eskisehir plant s share in Central Anatolian Region cement capacity is 6%. " In 2003 production of cement reached 529,711 tonnes (2002: 26,000) " 1H04 cement sales was 223,558 tonnes (1H03: 212,202). " The plant s raw material quarries are operated by subcontractor. " The plant has ISO 9001:2000 certificate. Licenses Furnace Type Area (m2) Reserves (tonnes) Type of License Termination date Owner of property Limestone+Clay 1,230,400 7,290,426,150 Mine 13/11/2009 plant/individual/treasury Limestone+Clay 3,313,600 96,200,000 Mine individual 19
Lalahan " Lalahan grinding station was founded in 2002. " Cement capacity is 181,500 tonnes/year. " The plant is located on an open area of 85,806 m2 and covered area of 5,009 m2. " Number of personnel (including operating companies) is 47, 21 of which are white collar, 26 of which are blue collar. " Distance to Samsun highway is 600m and to Lalabel train station 6 km. " Type of cement produced is PZC/A-32.5. " Grinding mill is a KRUPP (25 tonnes/hr). " The plant has automated system. " There is a covered clinker silo. " Lalahan s share in regional cement capacity is 2%. " In 2003 142,562 tonnes of cement was produced. " 1H04 cement sales was 60,218 tonnes (1H03: 67,614). " The plant has ISO 9001:2000 certificate. 20
Central Anatolian Region Cement Market Local Producers PLANT GROUP LOCATION TYPE CAPACITY ('000 Tonnes) Clinker Cement Bastas Baskent Cim Vicat Ankara Integrated 750 1650 Hasanoglan Yibitas+Lafarge Ankara Grinding - 376 Set (Ankara Cim) Set+Italcementi Ankara Integrated 870 1,500 Eskisehir Cimento Rumeli Eskisehir Integrated 495 1,016 Lalahan Rumeli Ankara Grinding - 182 Yibitas Yozgat Yibitas+Lafarge Yozgat Integrated 725 832 Konya Cimento Vicat Konya Integrated 1,500 2,073 Nevsehir Cimento Yibitas+Lafarge Nevsehir Grinding - 372 Oysa Cimento Sanayi Oyak+Sabanci Nigde Integrated 420 1,200 Cimsa Kayseri Sabanci Kayseri Grinding - 600 Yibitas Lafarge Sivas Yibitas+Lafarge Sivas Integrated 410 810 Afyon Cimento Set+Italcementi Afyon Integrated 470 650 İstaş Independent Ankara Grinding - 250 21
Central Anatolian Region Cement Market " This is the third largest region in terms of clinker capacity, accounting for 16% of clinker, 17% of cement capacity and 21% of cement consumption. Cement Capacity by Group " The region accounts for 17% of Turkey s population and contributes 16% to Turkey s GNP. " There are three main groups in the region with a combined market share of 67%: Vicat-Bastas, Italcementi and Lafarge Yibitas. " Rumeli s share in the region s cement capacity is 10%, including Lalahan grinding station. Vicat 30% Other 7% Lafarge- Yibitas 20% Oyak 5% Sabanci 10% Rumeli 10% Italcementi (Set) 18% 22
Gaziantep " Gaziantep plant was founded in 1961 and sold to Rumeli group through privatisation in 1992. " Clinker capacity is 495,000 tonnes/year. " Cement capacity is 1,089,000 tonnes/year. " The plant is located on an open area of 1,952,977 m2 and covered area of 35,915 m2. " Number of personnel (including operating companies) is 62 white collar and 149 blue collar. " Distance to Antep-Sanliurfa road is 500 m and to Antep-Adana highway 20 km. " Railway passes through the premisses. 23
Gaziantep " Type of cement produced is PCC-32.5, PC- 42.5 and CC-32.5. " Clinker is produced through one dry process kiln and one Lepol kiln. " Grinding mills consist of 1 HUMBOLD (70 tonnes/hr) and 1 FLS (80 tonnes/hr) " Gaziantep plant s share in South East Anatolian Region cement capacity is 19%. " In 2003 Gaziantep plant produced 339,674 tonnes of cement (2002: 330,872) " 1H04 cement sales was 147,372 tonnes (1H03: 141,718). " The plant has ISO 9001:2000 certificate. Licenses Furnace Type Area (m2) Reserves (tonnes) Type of License Termination date Owner of property Limestone 485,300 12,600,000 Mine 20/10/2009 Plant Clay 146,730 340,809 Stone quarry 19/09/2004 Plant Trass 168,000 1,900,000 Stone quarry 17/07/2004 Plant 24
Sanliurfa " Sanliurfa plant was founded in 1986 and sold to Rumeli group through privatisation in 1993. " Clinker capacity is 577,500 tonnes/year. " Cement capacity is 580,800 tonnes/year. " The plant is located on an open area of 1,386,844 m2 and covered area of 33,472 m2 " Number of personnel (including operating companies) is 49 white collar and 140 blue collar. " Distance to TEM highway is 1 km and to Akcakale train station 70 km. 25
Sanliurfa " Type of cement produced is PCC/B-32.5R and PC-42.5. " Clinker technology used is dry process. " Grinding mill is FLS (80 tonnes/hr). " There is one mill in the plant, but there is spare space for a second mill and bunker. " Sanliurfa plant s share in South East Anatolian cement capacity is 10%. " In 2003 Sanliurfa plant produced 292,375 tonnes of cement (2002: 217,633) " 1H04 cement sales was 170,321 tonnes (1H03: 122,853). " The plant has ISO 9001:2000 certificate. Licenses Furnace Type Area (m2) Reserves (tonnes) Type of License Termination date Owner of property Limestone 1,223,400 146,832,028 Mine 21/11/2004 Treasury Clay 198,750 2,385,000 Stone quarry 31/12/2004 Plant Clay 173,250 Stone quarry 31/12/2004 Plant Marl 350,575 3,856,325 Stone quarry 31/12/2004 Plant 26
Ergani " Ergani plant was founded in 1984 and sold to Rumeli group through privatisation in 1996. " Clinker capacity is 577,500 tonnes/year. " Cement capacity is 1,161,600 tonnes/year. " The plant is located on an open area of 392,101 m2 and covered area of 35,337 m2. " Number of personnel (including operating companies) is 225. " The plant is located on Elazig highway. " The distance to Ergani train station is 4 km. 27
Ergani " Type of cement produced is PZC/A-32.5 and PC-42.5. " Clinker technology used is dry process. " Grinding mills consist of 2 FLS (80 tonnes/hr). " Ergani plant s share in South East Anatolian cement capacity is 20%. " In 2003 Ergani plant produced 289,650 tonnes of cement (2002: 196,967) " 1H04 cement sales was 117,967 tonnes (1H03: 121,377). " The plant has ISO 9001:2000 certificate. Licenses Furnace Type Area (m2) Reserves (tonnes) Type of License Termination date Owner of property Limestone 1,392,600 87,647,937 Mine 23/03/2014 Treasury Marl with clay 765,000 25,111,200 Stone quarry 02/02/2009 Teasury Cender 943,700 5,775,000 Mine 02/09/2007 Treasury/plant 28
South East Anatolian Cement Market Local Producers PLANT GROUP LOCATION TYPE CAPACITY '000 Tonnes) Clinker Cement Adiyaman Sanko Adiyaman Integrated 630 990 Gaziantep Rumeli Gaziantep Integrated 495 1,089 Sanliurfa Rumeli Sanliurfa Integrated 578 581 Ergani Rumeli Ergani Integrated 578 1,162 Oyak Mardin Oyak Mardin Integrated 640 1,020 Kurtalan Limak Kurtalan Integrated 644 972 29
South East Anatolian Cement Market " South East Anatolia has a 10% share in total clinker capacity, 8% in cement capacity and 10% in cement consumption. " The region accounts for 13% of Turkey s total population and contributes 5% to total GNP. " The ongoing South East Anatolian (GAP) Project, a US$20bn worth project involving building of dams and irrigation systems, is the major driver of cement demand in the region. " The region s proximity to Iraq represents an important opportunity as cement exports to Iraq are expected to surge with further stabilisation in the region. " With a 49% share in the region s cement capacity, Rumeli group has an important advantage and should strongly benefit from increased exports to Iraq. Cement Capacity by Group Other 33% Oyak 18% Rumeli 49% 30
Van " Van plant was founded in 1969 and sold to Rumeli group through privatisation in 1996. " Clinker capacity is 213,840 tonnes/year. " Cement capacity is 559,020 tonnes/year. " The plant is located on an open area of 280,050 m2 and covered area of 16,027 m2. " Number of personnel (including operating companies) is 144, 38 of which are white collar and 106 are blue collar. " The distance to Van-Diyarbakir railway is 22 km. 31
Van " Type of cement produced is PZC/A-32.5. " Clinker technology used is dry process. " Grinding mills consist of 1 HUMBOLD (27 tonnes/hr) and 1 FLS (50 tonnes/hr). " Van plant s share in South East Anatolian Region cement capacity is 22%. " In 2003 Van plant produced 199,626 tonnes of cement (2002: 137,517) " 1H04 cement sales was 80,317 tonnes (1H03: 70,812). " The plant has ISO 9001:2000 certificate. Licenses Furnace Type Area (m2) Reserves (tonnes) Type of License Termination date Owner of property Limestone 549,800 48,000,000 Mine 01/12/2004 Treasury Clay 5,000 500,000 Stone quarry 17/07/2003 Treasury Pomza 16,873,400 3,547,500 Mine 09/04/2009 Individual/Treasury 32
East Anatolian Region Cement Market Local Producers PLANT GROUP LOCATION TYPE CAPACITY ('000 Tonnes) Clinker Cement Kars Cimento Cementir Kars Integrated 330 475 Askale Cimento Er-Cimsan Erzurum Integrated 450 600 Van Rumeli Van Integrated 214 559 Elazig Oyak+Gama Elazig Integrated 301 953 33
East Anatolian Region Cement Market " East Anatolia, the least developed region of Turkey contributes 3.3% to Turkey s GNP and has 9% of the total population. Cement Capacity by Group " The region has a 3% share in cement capacity and 6% in cement consumption. " There are four plants in the region owned by different groups. Other 23% Oyak 37% " Rumeli is the second largest group with a 22% share in local cement capacity. Cementir 18% Rumeli 22% 34