Eurocement group

EUROCEMENT group

Company type	Joint Stock Company
Industry	Building materials
Founded	2002
Key people	Galchev Filaret (Chairman), Skorokhod Mikhail Anatolievich (Member of board of directors, president)
Products	Cement, construction aggregate, concrete, construction materials
Revenue	55.7 billion RUB (2011)
Net income	10.2 billion RUB (2011)
Number of employees	12500
Website	http://www.eurocement.ru

Eurocement

The EUROCEMENT group is the biggest supplier of cement, ready-mix concrete and aggregates in Russia. It has 16 cement plants across Russia, Ukraine and Uzbekistan as well as several concrete mix plants, concrete goods factories and aggregate-mining quarries.
The Group’s annual production capacity is 40 MT of cement and 10 Mcm of concrete. Aggregate resources: carbonate rock explored reserves amount to 2.8 billion tonnes; granite-explored reserves amount to 1.8 billion tonnes.

Overview

As one of the largest companies in Russia, the EUROCEMENT group strives to achieve a consistent level of operational and financial performance, while maintaining a strong commitment to provide a significant and lasting contribution to the social and economic development of the Russian Federation. The EUROCEMENT group’s labour, environmental, safety, security and regional social and economic development policies are an integral part of its corporate strategy, which is aimed at establishing a sound basis for the company’s long-term sustainable development.

The EUROCEMENT group has implemented a unified sustainability and corporate social responsibility strategy that is in line with internationally accepted standards on human rights (non-discrimination, freedom of association and collective bargaining, non-employment of child and forced labour etc.), as well as with current Russian labour and human rights legislation.

The company wants to increase its annual production capacity by 45.4 million tones (MT) of cement by 2017.

History

EUROCEMENT group was formed in 2002 following the merger of Rosuglesbit and Shtern-cement. The company originally had four plants: Maltsovsky Portlandcement, Mikhailovcement, Lipetskcement, and Savinsky cement. But since 2005, following the purchase of seven additional cement plants, EUROCEMENT group has become a leading company in the Russian cement market.

On May 2014 the company signed a package of contracts with Chinese companies for equipment supplies, engineering, installation supervision and employee training totaling $530.7 million. Contracted supplies include mechanical equipment, furnaces, cyclone heat exchangers, crushers, and mills. The new equipment will be used for the construction of new cement plants with a total capacity of 17 million tons of cement per year in six regions of Russia: Leningrad, Ryazan, Bryansk, Arkhangelsk, Ulyanovsk and Samara regions, according to the corporate message.

Management

The board of directors elected at the annual general shareholders meeting consists of:

• Galchev Filaret Iljich (Chairman of board of directors)
• Lachuev Kamil Gadjievich (Member of board of directors, vice-president for corporate and legal matters)
• Grigoriadis Kusma Anastasovich (Member of board of directors, vice-president for security and legal matters)
• Skorokhod Mikhail Anatolievich (Member of board of directors, president)
• Kondratenko Tatiana Vasilievna (Member of board of directors, senior vice-president)

EUROCEMENT group Plants

RUSSIA

Cement

• Belgorodsky Cement (Belgorod Region)
• Zhigulevskie Building Materials (Samara Region)
• Kavkazcement (Karachaevo-Cherkessian Republic)
• Katavsky Cement (Chelyabinsk Region)
• Lipetskcement (Lipetsk Region)
• Maltsovsky Portlandcement (Bryansk Region)
• Mikhailovcement (Ryazan Region)
• Nevyansky Cementnic (Sverdlovsk Region)
• Oskolcement (Belgorod Region)
• Pikalevsky Cement (Leningrad Region)
• Podgorensky Cementnic (Voronezh Region)
• Savinsky Cement Plant (Arkhangelsk Region)
• Ulyanovskcement (Ulyanovsk Region)

EUROBETON is also a part of the EUROCEMENT Group.

Concrete

• Batching Plant in Oskol
• Batching Plant in Belgorod
• Batching Plant in Lipetsk
• Batching Plant in Yekaterinburg
• Batching Plant in Podgorensky
• Batching Plant in Krasnodar
• Batching Plant in Yaroslavl
• Batching Plant in Chelyabinsk
• LLC Eurobeton
• JSC Spetsstroybeton ZHBI 17

Cement Elevators

• LLC Cement Service (Moscow)
• JSC Asphalt Concrete – Medvedkovo (Moscow)
• MCE Marjina Roscha (Moscow)
• Construction Materials Production
• JSC Peskovsky Construction Materials Works

Aggregate

• LLC Lobskoe-5 (Karelia Region)
• LLC Prom-Activ (Orenburg Region)

Industrial Construction

• CJSC Eurocement Engineering (Moscow)

Transport Company

• LLC ServiceTransStroy (Moscow)
• LLC Centre Trans (Moscow)

Procurement

• CJSC Eurocement Resource (Moscow)

UKRAINE

Cement

JSC EUROCEMENT group – UKRAINE

• JSC EUROCEMENT – UKRAINE (Kharkov region)
• JSC Kramatorsky Cement Plant Pushka (Donetsk region)

UZBEKISTAN

Cement

• JSC EUROCEMENT group – Central Asia (Tashkent region)
• JSC Akhangarancement (Tashkent region)

Concrete

• Construction materials and structures works, integrated in JSC Akhangarancement (Tashkent)

Health, Safety, Security and Environment

The EUROCEMENT group complies with the requirements of Russian and international legislation on health, safety, security and the environment. The company applies cutting-edge technology and enhanced production methods to create safe and healthy working conditions, as well as to minimise the risk of industrial accidents and other emergency situations.

The EUROCEMENT group’s policies include the following key objectives:

• Reducing industrial injuries and adverse environmental impacts
• Improving industrial and environmental safety to meet the standards of international companies
• Establishing and maintaining an efficient management system for health, safety, security, and environmental protection
• Reducing industrial risks from production facilities

EUROCEMENT Holding's investments in air protection activities in 2005-2007 exceeded 784 million rubles, delivering the following most notable projects:

• replacement and upgrade of electrostatic precipitators on rotary kilns
• reconstruction of electrostatic precipitators of cement mills
• installation of cement silos suction systems
• providing the departments loading the finished products into railway cars and cement trucks with modern de-dusting equipment
• establishing sanitary industrial laboratories in the cement plants and providing the labs with modern analytical equipment for the effective monitoring of emission and discharge standards

Due to giving up a number of traditional mining processes, namely drilling, hole-loading, explosions, primary and secondary crushing, the negative impact of mining on the environment has decreased.

Environmentally friendly production and protection of nature are among priorities for EUROCEMENT group. To achieve these objectives EUROCEMENT group outlined specific tasks in its program of development for production facilities for 2007-2020.
The EUROCEMENT group has been a long-term partner of the Ministry of Regional Development (Minregion Rossii).

Social responsibility

Social responsibility is an integral part of the business of EUROCEMENT group.
As part of social partnership, all plants of the company have collective employment agreements ensuring improved social protection for the personnel, observance of their interests, social, and labor rights. Collective employment agreements stipulate guarantees and benefits which by far exceed those set forth by existing laws. Employees are provided with subsidized meals, financial support, medical treatment. Employees have celebrations organized for them to mark a number of national industry and corporate occasions. EUROCEMENT group opens the Corporate Sports Contest every year.

Charity

Charity is a vital part of business at EUROCEMENT group. The Holding provides annual support to various social and cultural events, helps community and religious groups, and assists socially vulnerable population groups.
Charitable activities of the Holding are based on two main objectives:

• Targeted support is the most effective way of providing charitable assistance
• There is a real need for charitable programs

The EUROCEMENT group has been a long-term partner of the Action “Pod flagom dobra”. The aim of this charity is to provide targeted financial assistance to children who need expensive medical treatment. Since the Action began its work, 572 children have received high-tech medical aid worth more than 119 million rubles. As part of charitable activities, EUROCEMENT group is also making an investment in the future. The company pays great attention to the development of technical, academic and educational facilities at pre-school organizations and schools in Russian regions. One of the major projects that received our support was the opening a new secondary school in the urban-style community of Podgorensky (Voronezh Region: the site of Holding’s new cement plant). The EUROCEMENT group allocated nine million rubles for this in 2009. The Holding also attaches great importance to the revival of Russia’s spiritual heritage and the consolidation of its moral foundations. With Holding’s active help, churches in the areas where Holding operates have been restored and re-built. EUROCEMENT group also has an active policy of recognizing human potential and consolidating relationship with education and science. In 2009 EUROCEMENT group and Belgorod State Technological University signed an agreement of mutual co-operation. The company, as part of its sponsorship activities, also participates in the creation of new cultural values and traditions. The Holding supports the Russian festival of performing arts, Golden Mask, as well as nurturing a long-term strategic partnership with the Moscow International Performing Arts Center. EUROCEMENT group is a member of the Friends of the Tretyakov Gallery Society. These are excellent examples of effective and organic co-operation between business and the arts.

References

• http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=9804728

External links

• Official website