6 - Vicat

6BUSINESS OVERVIEW6.3. Description of the businesses and introduction to the markets6.3.1.3. Production equipmentThe Group’s cement factories, their industrial equipmentand the fixed quarries are owned on a freeholdbasis. The marl and limestone quarries used bythe Group for its cement manufacturing businessare generally located on land owned by the Group.Where this is not the case, the Group has enteredinto mining rights agreements, whereby the Groupis entitled to use the quarries on a long-term basis(generally over several decades).The table below shows the Group’s industrial andlogistics system for its cement-manufacturingbusiness :(In units)CementfactoriesGrindingplantsKilnsKilns underconstructionCementterminalsFrance 5 3 5 - 4United States 2 - 2 - 5Switzerland 1 - 1 - 1Turkey 2 - 4 - -Senegal 1 - 3 - 4Egypt 1 - 2 - -Italy - 1 - - 2Mali - - - - 1Kazakhstan 1 - 1 - 1 (1)India 2 (3) - 2 1 64 (2)Mauritania - 1 - - -Total 15 5 20 1 81(1)Rail terminal in Almaty.(2)Bharathii Cement distribution depots, mainly rented, for local distribution.(3)Including one cement factory under construction.A description of the industrial equipment and theGroup’s industrial policy are detailed below in section8 “Real estate, factories and equipment” of thisRegistration Document.6.3.1.4. ImplantationsThe Group manufactures cement in the eleven countrieswhere it is present. The Group is the third largestcement manufacturer in France (4) , with strong positionsin the eastern half of France and particularly inthe south-eastern quarter.Starting in 1974, the Group approached its internationaldevelopment selectively, by choosing its newgeographical establishments alternatively on matureand emerging markets. The Group has thus establishedoperations on four continents and developed its positionsto become a key regional player in each country.The Group has developed strong positions in theUnited States in the States of Alabama and California,in Switzerland in the western half of the country, inCentral Anatolia in Turkey and in Egypt in the Sinairegion and in Cairo. The Group also estimates that ithas a leading position in Senegal and the countriesbordering it. The Group also has a grinding plantand shipping terminals in Italy. Finally, establishingfacilities recently in Kazakhstan and in India in theStates of Karnataka and Andra Pradesh confirms theGroup’s geographic diversification, its internationaldimension as well as its integration strategy.6.3.1.5. Competitive positionThe cement being a heavy product, expensive totransport, the operating range of most cement factoriesdoes not generally exceed 300 kilometers byroad. Competition thus plays out mainly with cementmanufacturers having factories in the Group’smarketing zones. However, cement can be shippedat low cost over long distances by boat or in somecountries by rail, which increases considerably theoperating range of cement factories which enjoy asea or river access. In particular, this is the case withthe Group’s Egyptian factory, located close to theport of El Arish, which would allow it to export toother countries in the Middle East and to Europe.(4)Source : “Global Building Materials” study, Jefferies International Ltd, April 2010.2010 registration document VICAT 37