Italcementi in Egypt - ISPI · Italcementi Group main companies network KUWAIT HILAL CEMENT AL MAHALIYA NORTH AMERICA (U.S.A./CANADA) ESSROC ESSROC SAN JUAN CIMENT QUEBEC (JV 50%)

Italgen - Italcementi Group 1

Italcementi in Egypt

The perspective of a

leading international

investor

Milan, 4th February 2014

Italgen - Italcementi Group

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


SRI LANKA

SINGHA CEMENT

ICC

SAUDI ARABIA

THAILAND

JALAPRATHAN CEMENT

ASIA CEMENT

JALAPRATHAN CONCRETE

CYPRUS *

CHINA *

BULGARIA

DEVNYA CEMENT

INDIA

ZUARI CEMENT

KAZAKHSTAN

SHYMKENTCEMENT

BETONATA MOROCCO

CIMENTS DU MAROC

BETOMAR

ITALGEN MAROC

SPAIN

FYM

FRANCE

CIMENTS FRANÇAIS

CIMENTS CALCIA

UNIBETON

GSM

BELGIUM

CCB

ITALY

ITALCEMENTI

CALCESTRUZZI

CTG

ITALGEN

GREECE

HALYPS CEMENT

ET BETON VASSILIKO CEMENT

Italcementi Group main companies network

KUWAIT

HILAL CEMENT

AL MAHALIYA

NORTH AMERICA

(U.S.A./CANADA)

ESSROC

ESSROC SAN JUAN

CIMENT QUEBEC (JV 50%)

ESSROC READY MIX

EGYPT

SUEZ CEMENT GROUP OF COMPANIES

RMB

ITALGEN MISR

ALBANIA

EUROTECH CEMENT

GAMBIA

GACEM

MAURITANIA

MAFCI

SYRIA *

* Group’s presence in the Board of Directors of local companies


Sustainability is the foundation of our Group strategy

4

Industrial

Performance

Growth

Sustainability

Italcementi Group

Innovation


Universities

> 100 engineers, chemists, physicists, geologists

7500 m2 of laboratories

> 100 patents since 1992

> 210 M€ turnover from innovative products

time-to-market halved since 2001

Market

Customers

Network

Suppliers

Partners

R&D- i.lab, the heart of Group innovation


Italcementi Group in Egypt (Suez Cement G.C.)

Italcementi Group entered the Egyptian market in 2001.

The investment in Egypt of Italcementi Group –together with other co-investors-

has 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.


Suez Cement at a glance

The largest cement

producer in Egypt

An industrial network composed of 5

cement plants, 2 terminals and 20 concrete

batching units

Listed on the Cairo Alexandria Stock

Exchange

A production capacity of approximately 12 million tons per year

An overall staff of about

4,500 direct employees in

cement and ready mix

concrete


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.


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.


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


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 2007.

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).

Italgen project – first FDI in renewable energies in Egypt


Location Gabal El Zeit (Red Sea) Egypt

Installed Capacity 120 MW (Phase I) / up to 400 MW (total

project)

Business model Captive use to Companies of Suez

Cement Group

Identified Area

Site Overview



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.


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)


Thank you!

Documents

Italcementi in Egypt - ISPI · Italcementi Group main companies network KUWAIT HILAL CEMENT AL MAHALIYA NORTH AMERICA (U.S.A./CANADA) ESSROC ESSROC SAN JUAN CIMENT QUEBEC (JV 50%)