Build the Future on Solid Foundations
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1 Build the Future on Solid Foundations Markus Wirth, Holcim Romania CEI Summit Economic Forum, Bucharest November 12, 2009
2 Agenda 1 The Romanian Cement Industry 2 Holcim (Romania) 3 The economic environment 4 The role of the authorities 5 Our role in the public policy-making process 2
3 Romanian Cement Industry The Romanian Cement Producers Alesd Turda Bicaz Lafarge Ciment (Romania) Holcim (Romania) Carpatcement Holding Cement consumption 2008 : 11.1 mil tones Hoghiz (domestic production and imports) Deva Tg. Jiu Campulung Fieni Medgidia 3
4 Romanian Cement Industry Cement industry is the basis of an entire economical sector: constructions important influence on the economy/society/country workforce the cement producers are job providers investments into people, training and development, state-of-the-art technology, environmental friendly solutions lobbying activities and initiatives through different associations (CIROM, FIC, APPR, APPA) important contributors to the state-budget (taxes, royalties) 4
5 Romanian Cement Industry 160,000 [t] Co-processing of waste in Romania a service for the society 150, , , , ,000 80,000 60,000 60,000 40,000 27,700 40,000 20, estimate Estimat 5
6 Romanian Cement Industry Our key objective is the creation of values We attach great importance to sustainable development. Our strategy is focused on three dimensions: Economic Growth Social Responsibility Environmental Protection 6
7 Holcim Romania Holcim Romania s presence on the market Cement plant Mobile concrete plant Environmental Friendly Concrete Plant Aggregates plant Special Binders plant Ploiesti Campulung Muscel Estagre Turda Câmpulung Aleşd Brasov Zarnesti Rancaciov Pitesti Pipera Progresul Satu Mare Cluj I Oradea Sibiu Craiova Arad Piscani Chitila Timisoara Tg.Mures Brasov C-lung Agrocomp Cluj II Alesd Stancesti Gligoresti Brasov Clinceni Pantelimon Pitesti Tunari
8 Holcim Romania Holcim Romania was the first company in its field to receive a triple certification for IMS (Integrated Management System) 9001 Quality Management Environmental Management Occupational Health and Safety ISO 9001 (Quality) OHSAS (OH&S) ISO (Environment ) 8
9 Holcim Romania Economic growth Our input so far Mil Mil Mil Mil Mil Net Sales Training Total investments, of which: Modernization Business expansion Waste co- processing Environment investments Other investments Total amount of goods and services purchased Direct contributions + paid taxes
10 Holcim Romania Social responsibility Various programs for the benefit of communities: health and safety (awareness campaigns, medical care) investments in school/education (trainings, apprenticeship school, scholarships) building and rehabilitation of kindergartens/schools, playgrounds and recreational facilities local sports competitions 10
11 Holcim Romania Environmental protection We promote, sustain and apply a robust environmental policy : reduction of atmospheric emissions by using the best available technology (dust filters, low NOx emission burners, etc) rational usage of non-renewable resources co-processing waste into alternative fuels and raw materials supply of environmental friendly products (composite cement) rehabilitation of former industrial sites/quarries water recycling and treatment units 11
12 12
13 Economic Environment Inaction is the riskiest response to the uncertainties of an economic crisis Source: BCG & Harvard Business Review February
14 Economic Environment Despite having great results in the previous years, most of the companies are facing the tough consequences of the crisis! Then what do we do? Be prepared to overcome the downturn Cost cutting and adjustment of fixed costs in all areas Promoting new products cement with mineral components No new capital investments will be made to increase capacity Spending on replacement and rationalization reduced to a minimum Look beyond the crisis Make people understand the situation Prepared to meet the market requirements with the modern production capacities Increased demand for construction materials and infrastructure projects main driver of growth Internal buy-in and engagement 14
15 The Role of the Authorities It s not about the talking, it s about the walking! The role of the authorities Requirements Increase visibility? Create transparency in the public administration sector Improve the administrative processes Transparent public procurement processes Set direction Drive for results Plan everything on long term, set targets, allocate proper resources Align the existing economic, fiscal and monetary laws internally, considering the EU norms Use best practices and initiatives of other countries Systematic monitoring of the on-going activities/projects Tracking the results 15
16 What should the Government do Ensuring with priority, through the state budget, the cofinancing necessary to the public projects financed from structural funds; define multi-annual projects Setting infrastructure as a priority Meeting the contractual obligations - payments Rebuilding confidence of foreign investors into Romania Stabilizing the political system 16
17 The Role of the Authorities Romania : opportunities Huge potential to further develop Living space Agriculture Production of goods Tourism Transport/ Infrastructure 17
18 Our Role Involvement of the private companies in the public policy-making process Partner to and communication with the Government and the public Authorities through : Foreign Investors Council (FIC) with task forces (e.g. Infrastructure) Chambers of Commerce Associations We are prepared to continue with the communication hear us and also LISTEN to US! 18
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