Annual Report 2010 Holcim Ltd

Cement
Profile
Cement is manufactured through a large-scale, complex
and capital-intensive process. At the core of the pro-
duction process is a rotary kiln, in which limestone and
clay are heated to approximately 1,450 degrees Celsius.
The semifinished product, called clinker, is created by
sintering. In the cement mill, gypsum is added to the
clinker and the mixture is ground to a fine powder –
traditional Portland cement. Other high-grade materials
such as granulated blast furnace slag, fly ash,
pozzolan and limestone are added in order to modify
the properties of the cement. Holcim offers customers
a very wide range of cements and also develops customized
solutions for special applications.
Aggregates
Profile
Aggregates include crushed stone, gravel and sand.
The production process centers around quarrying,
preparing and sorting the raw material as well as
quality testing. Aggregates are mainly used in the
manufacturing of ready-mix concrete, concrete
products and asphalt as well as for road building
and railway track beds. The recycling of aggregates
from concrete material is gaining importance at
Holcim.
Other construction materials and services
Profile
Globally, concrete is the second most consumed commodity
by volume after water. One cubic meter consists
of approximately 300 kilograms of cement, 150 liters of
water and 2 tonnes of aggregates. Concrete is a very environmentally
friendly, energy-efficient building material.
Asphalt is a bituminous construction material used primarily
for road paving. It consists mainly of aggregates
of differing grain size. Holcim’s service offering also
includes construction services and international trading.
Following the acquisition in Australia, this segment has
gained in significance.
Developments
In 2010, the volume of cement sold grew by 3.6 percent
to 136.7 million tonnes. In addition, 4.1 million tonnes
of other mineral components were sold, representing a
rise of 17.1 percent. The increase in volume stems from
additional sales in Group regions Asia Pacific, North
America and Africa Middle East. In terms of quantity,
Latin America just maintained last year’s level, and in
Europe, deliveries declined as a result of the economic
situation. The positive overall trend also reflects capacity
expansions in important markets and the full consolidation
of Cement Australia.
Developments
The aggregates segment experienced a sharp rise in sales,
with an increase of 10.1 percent to 157.9 million tonnes.
Holcim posted gains in Latin America, but primarily in
Asia Pacific, where it benefited from the full consolidation
of Holcim Australia.The Group companies in New
Zealand, Thailand and the Philippines also lifted sales
volumes. Europe and Africa Middle East witnessed an
overall decline in the aggregates business. However, some
Group companies delivered more crushed stone, gravel
and sand, including Aggregate Industries UK and the
companies in Belgium, Germany, Switzerland, Hungary
and the Czech Republic. In North America, the aggregates
business declined.
Developments
Sales of ready-mix concrete rose by 9.8 percent to
45.9 million cubic meters. The strongest growth was
seen in Asia Pacific driven by the full consolidation
of Holcim Australia. Delivery volumes also increased
in North and Latin America, with Canada, Mexico and
Chile leading the way. Group region Africa Middle East
just maintained sales volumes, while Europe saw a
5.9 percent decline. The volume of asphalt sold was
down by 3.6 percent to 10.6 million tonnes.