Rugby Cement Community Forum22 June 2005: Rugby Cement Community Forum 22 June 2005


Contents: Contents Introduction to Cemex Integration Progress Plant Investment and Projects update


Slide3: CEMEX is a growing global building solutions company. It provides consistent quality products and reliable services for customers and communities in more than 50 countries across four continents. CEMEX improves their well-being because of its passion to do things better and care for the future. Introduction to Cemex


Slide4: In 1989 we started to expand beyond our borders… Strengthened domestic position Started international expansion Created regional systems Cement production capacity and major aquisitions until 2003 Millions of metric tonnes/year >> >> >> << << << Introduction to Cemex


Slide5: In 2005 CEMEX’s acquisition of RMC Group creates an even more competitive player in each segment of the value chain… Source: CEMEX estimates. RMC 1H2004 Results Presentation, RMC 2003 Results Presentation and JP Morgan research Report. Introduction to Cemex


Slide6: A different organisational approach…. Integrated Business Model CEMEX Independent Country Business Models RMC Institutional process, organisation and systems model Local innovation spread through best practices culture Independent innovation at country or regional level …gives different results Introduction to Cemex


Slide7: Our commitment is to conduct our business with honesty and integrity CEMEX’s Code of Ethics embodies our commitment to the standards and values that characterise our organisation. Everything we do rests on this foundation. Our Values: Collaboration. To work with others in a collective pursuit of excellence Integrity. To act with honesty, responsibility and respect at all times Leadership. To envision the future and focus our efforts on service, excellence and competitiveness Introduction to Cemex


Slide8: CEMEX’s social performance encompasses our efforts to: Ensure our employees’ safety and promote a culture of health Help employees achieve their career objectives Work for the health and development of our communities Make safe and effective products Maintain integrity in all of our stakeholder interactions Introduction to Cemex


Slide9: We care for the needs of our environment and communities Strong supporters of innovative community development programmes In 2002 we were awarded the World Environment Center’s Eighteenth Annual WEC Gold Medal Environmental Achievement Leading role in the Cement Sustainability Initiative Deep commitment to sustainable development Active participation in the conservation of one of the top five remaining wilderness areas in the world Yearly publication of conservation books since 1993 Leaders in developing and deploying flexible energy sourcing programmes Building environmental awareness Introduction to Cemex


Slide10: Post-merger integration is nearing successful completion Up to 30 technical specialists from around the world have analysed the plant and systems Effort in the first 3 months has concentrated on plant reliability, stability, environmental performance and housekeeping standards Performance for the first 3 months shows increasing availability and reducing kiln stops to world-class standards Integration Progress


Slide11: Integration Progress


Kiln Performance: Kiln Performance Tonnes No. of Environmental Schedule Produced Availability Stops Incidents 1’s Complaints March 88,550 76% 15 0 2 8 April 106,039 94% 7 0 3 3 May 111,087 95% 7 0 2 2 June MTD 72,856 93% 2 0 1 0 F/C 107,000 95% Integration Progress


Reshaping the UK Business in line with the Global Model: Reshaping the UK Business in line with the Global Model Consultation has started in all businesses across the UK Operations management for Rugby plant Integration Progress Supported by - Fernando Enriquez - VP Cement Operations + Technology - David Evans - Health, Safety + Environment Director - Neville Roberts - Technical Director - Bob Millard - External Relations - Integrated + Co-ordinated functions


Bag Filter Investment: Bag Filter Investment Cemex PMI process analysed the Rugby Cement options for investment in dust abatement equipment Cemex is announcing a £7 million investment in a full bag filter on kiln, including duct work and exhaust fan Plant Investment and Projects update


Slide15: Plant Investment and Projects update


Slide16: Bag Filter Dimensions 27m long x 18.5m wide x 27m tall Design capacity of 1,200,000Am3/h at 170°C Made up of compartments which can be individually isolated on-line for maintenance without impact on operation or filter efficiency The bag filter will contain circa 6,000 bags; each bag will be 6m or 7m long and 0.15m diameter Bags are made of woven fibreglass with a PTFE (Teflon) membrane Filter will be installed with a ‘burst bag’ detection system to identify and isolate relevant compartment for maintenance The bag filter does not trip out Plant Investment and Projects update


Future Improvements: Future Improvements Reduce variability from quarries by carrying out geo statistical planning for mineral extraction Raw material preparation, pre-homogenisation, blending and storing Other sources of clay and sand Reliability – replace chain on main clinker conveyor Diesel storage improvement Plant Investment and Projects update


Tyre Trial Update: Tyre Trial Update The Enforcement Notice and EA improvement plan have been met No environmental incidents in 2005 Plant reliability achieved Management systems are in place Writing to the EA with a request to restart the tyre trial Plant Investment and Projects update


Tyre Trial Restart Plan: Tyre Trial Restart Plan Baseline – a second set of baseline data will be collected The tyre plant will be recommissioned and the optimum rate for the process established 1000 hours of emissions and process data will be collected A report will be produced in line with permit requirement comparing trial data using H1 methodology and critical success factors Plant Investment and Projects update


Proposed Tyre Trial Plan: Proposed Tyre Trial Plan Plant Investment and Projects update


Pipeline Project Update: Pipeline Project Update Route Rationale Report (RRR) completed The route has been selected:- Open trench Horizontal Direction Drilling (HDD) - A426 section Planning requirement:- 3 lateral diversions from existing route 2 temporary drilling locations Submit planning application in July 2005 Geotechnical Surveys Pilot bore holes - HDD sections Window samples - trenching Plant Investment and Projects update


Slide22: Plant Investment and Projects update


Development of Community Liaison and Communications: Development of Community Liaison and Communications Rugby Cement processes reviewed by a cross-functional task group, including an independent stakeholder audit The review will drive a new strategy with plans to improve community engagement and gain understanding There will be a revised web site and newsletter commencing in July Open Day planned for 2006 Plant Investment and Projects update