Annual Report 2010 Holcim Ltd

Value-Driven
Corporate Management
Change in personnel by Group region
Strategic expansion program in growth markets
From a longer term point of view, the Group is primarily
aiming to establish and grow cement capacity in the
emerging markets, where some 74 percent of produc-
tion capacity is currently located. Moves to expand
existing and build new plants must anticipate trends
in cement consumption irrespective of short-term
fluctuations.
2010 2009 ±%
Europe 19,690 20,800 –5.3
North America 6,668 8,016 –16.8
Latin America 12,710 12,626 +0.7
Africa Middle East 2,213 2,256 –1.9
Asia Pacific 38,172 36,858 +3.6
Corporate 857 942 –9.0
Total Group 80,310 81,498 –1.5
In 2010, Holcim increased its cement capacity Group-
wide by 8.6 million tonnes to 211.5 million tonnes.
In the growth market of India, ACC and Ambuja
Cements increased capacity by 3.4 million tonnes of
cement. In Latin America, the focus was on Hermosillo
in Mexico, where Holcim Apasco opened a plant with
an annual capacity of 1.6 million tonnes of cement
shortly before the end of the year. This will enable
Holcim to strengthen its nationwide presence and
supply the northwestern market areas more cost-
effectively. In addition, Holcim Colombia increased
its cement grinding capacity at the Nobsa plant by
0.7 million tonnes to 2.1 million tonnes in line with
planning for medium-term requirements, and Holcim
Ecuador will increase its grinding capacity by 1.8 mil-
lion tonnes in the first quarter of 2012. A new kiln line
with a capacity of 2.1 million tonnes is to be commis-
sioned at the Russian plant Shurovo. This eco-efficient
plant supplies the key Moscow region market with
high-grade products. Finally, a new kiln line with an
annual capacity of 1.7 million tonnes due to come on
stream in 2011 is under construction at the Garadagh
plant in Azerbaijan.
The additional capacity meets the latest standards in
terms of costs and environmental efficiency. Sites for
new plants are normally selected in locations where
Group companies already have guaranteed reserves of
raw materials and well established market positions.
Of the total of 25.9 million tonnes of capacity expan-
sion initiated in 2007, 9.2 million tonnes were still
under construction at the end of 2010.
In 2010, the decision was taken to build new cement
plants in Indonesia and France with an annual capacity
of 1.6 and 0.6 million tonnes of cement, respectively.
Scheduled to begin operations in 2013, the plant in
Indonesia will help keep pace with continuing market
growth on the main island of Java. Overall, 11.4 million
tonnes of cement capacity expansion were under con-
struction at year-end 2010.
Further investments in aggregates and concrete
As an economy becomes more mature, vertical inte-
gration assumes greater importance for Holcim. Major
infrastructure projects and residential and commer-
cial construction activity in such markets cause a rise
in demand for high-grade aggregates and ready-mix
concrete. Because of the high degree of regulation,
securing guaranteed reserves of raw materials is of
major strategic importance.
2010 saw the decision to open a new quarry plus a
distribution center in Sydney, Australia, which over
the coming decades will enable Holcim to supply this
growth market with top-quality aggregates at low
cost. The fact that the new site will be connected
to the railway network also ensures green delivery.