holcim canada – an overview
DESCRIPTION
Holcim Canada – an overview. Paul Ostrander – CEO Holcim Canada Acton Quarry February 22, 2011. Holcim Canada will soon celebrate 60 years of operations in Canada with a history dotted with strategic acquisitions and growth. - PowerPoint PPT PresentationTRANSCRIPT
© Holcim Ltd 2010
Holcim Canada – an overview
Paul Ostrander – CEO Holcim Canada
Acton Quarry
February 22, 2011
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© Holcim Canada (Ltd) Acton Quarry February 22, 2011
Holcim Canada will soon celebrate 60 years of operations in Canada with a history dotted with strategic acquisitions and growth
Atlas Realities (later St. Lawrence Cement) is
incorporated by Holderbank (later
Holcim)
Cement production begins in Quebec (1954) & Ontario
(1956)
St. Lawrence Cement is listed on Montreal & Toronto Stock
Exchanges
Acquisition of Dufferin assets
Acquisition of 50% share in Quebec Ready-Mix & De-
Mix
Acquisition of Joliette Cement Plant & Ontario
concrete operators
(Boehmers & Peninsula)
Acquisition of cement plants in Catskill New York and Hagerstown
Maryland
Creation of strategy waste
recycling committee
(AFR at Joliette in
1994)
Acquisition of NorthStar Cement (Nfld) and Gormley
Aggregates
Acquisition of TCG, Acton and
Mosport.
Launch of Shared
Services
Installation of Vertical Roller Mill & Clinker
Cooler
Acquisition of Ontario Red-Mix & Beton Grilli
& Lunick
St. Lawrence Cement becomes Holcim Canada
1951 1954-56 1961 1965 1973-76 1984-85 1990 1997 2001 2007 2009
Holcim Ltd. buyout of St.
Lawrence Cement minority
shareholders
Matured vertical integration strategy to concentrate on areas surrounding cement
plants
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© Holcim Canada (Ltd) Acton Quarry February 22, 2011
Fully Integrated Cement & Construction Construction Only
Holcim Canada is a fully integrated player in the highly populated Greater Toronto (GTA) and Greater Montreal (GMA) markets
GTA
GMA
GMA
GTA
Cement Plant
Aggregate (8)
Ready-Mix (20)
Cement Plant
Aggregate (5)
Ready-Mix (9)
4
© Holcim Canada (Ltd) Acton Quarry February 22, 2011
The Canadian economy is closely linked to that of the United States. As such there has been an economic impact but this impact has thus far been mitigated and there was a strong rebound in late 2009 and early 2010
GDP (% Change)
-4
-2
0
2
4
2005 2006 2007 2008 2009 2010 2011
CAD US
Total Construction (% Change)
-20
-10
0
10
20
2005 2006 2007 2008 2009 2010 2011
CAD US
Cement Consumption (% Change)
-30
-20
-10
0
10
20
2005 2006 2007 2008 2009 2010 2011
CAD US (incl. imports)
Housing Starts (% Change)
-50
-25
0
25
2005 2006 2007 2008 2009 2010 2011
CAD US
Source: PCA 2010 Summer Forecasts for the US and Canada, August 2010
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© Holcim Canada (Ltd) Acton Quarry February 22, 2011
Holcim Canada has a commitment to Sustainable Development with Corporate Objectives for OH&S, Environment and Social initiatives
3.22.2 2.3
0.6
4.2
1.1
7.1
5.6
3.9
2.7< 2.0
0
2
4
6
8
2005 2006 2007 2008 2009 2010
LTIFR Target
850 652 610 6070
100
200
300
400
500
600
700
800
900
1990A 2007A 2008A 2009A
CO
2 ne
t / t
cem
Annual CO2
25% Reduction Target from 1990 Levels
OH
&S
- LT
IFR
EN
VIR
ON
ME
NT
– C
O2
CO
RP
OR
ATE
SO
CIA
L R
ES
PO
NS
IBIL
ITY
Holcim Canada maintains Community Advisory Panels (CAPS) at all operating sites (proportional to site size)
CO
MM
UN
ITY
S
PO
NS
OR
SH
IP
LTIFR: Lost Time Incident Frequency Rate
6
© Holcim Canada (Ltd) Acton Quarry February 22, 2011
Holcim Canada is well integrated into the Value Chain with a broad customer base ranging from product supply of cement to solutions providing construction services
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© Holcim Canada (Ltd) Acton Quarry February 22, 2011
Holcim Canada optimizes Vertical Integration in the value chain while improving delivery mechanisms for new product introduction & optimization of existing products
35% of cementitious volumes and 39% of aggregate volume flowed through our vertically integrated channels in 2009.
Transactional
Mortars
Ready-mixConcrete
Asphalt
Concrete Products
Direct Sales
Direct Sales
Traders
Wholesalers
Retailers
Traders
Wholesalers
Retailers
End-users
General Contractors
Civil Engineering
ChannelsTransformational
MasonsSelf - builders
CementitiousMaterials
(cement,mineral
components)
SupplyBasic Materials Processing
Aggregates
(sand, gravel, stone, recycled
aggregates) Infrastructure
Commercial / IndustrialBuilding
Housing
Demand
Appl icat ions
Applications andConstruction Fields
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© Holcim Canada (Ltd) Acton Quarry February 22, 2011
Pervious concrete is a special type of high porosity concrete used where applications require water from precipitation and other sources to pass directly through.
It helps reduce stormwater runoff, replenishes aquifers, protects streams and lakes and allows water and oxygen to reach tree roots.
Ready-Mix is the optimal Business Unit in the Holcim Value Chain for solutions delivery. Innovations in products and services have made the Ready-Mix Business Units into market leaders
PE
RV
IOU
S
CO
NC
RE
TES
PE
CIA
LTY
C
ON
CR
ETE
Specialty concretes were almost 10% of Demix Beton’s volumes in 2009.
Flex concrete is a bending application used with City of Montreal as well as Montreal airport and ports.
Self-Placing is fluid and homogeneous with minimal segregation and bleeding; used primarily for vertical applications.
Anti-Corrosion concrete inhibits the corrosion of steel reinforcement.
EN
VIR
OG
UA
RD
In 2009, Dufferin Concrete won multiple awards for a system that ensures no chute wash water is released into the environment by returning the water used to clean the chute back into the truck’s drum.
The benefits are in cost savings and also a stronger job site environment scorecard which aids in LEEDS points.
LEEDS: Leadership in Energy & Environmental Design
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© Holcim Canada (Ltd) Acton Quarry February 22, 2011
Dufferin Construction, one of the leading highway contractors for the province of Ontario, has been low bidder on 3 RBRs in Ottawa and Hamilton. RBRs are the replacement of a highway bridge overpass over the course of a weekend where the entire bridge is removed and replaced with sectionals built in a nearby staging area. RBR is not only more economical but also offers solutions to the Municipalities in terms of less traffic congestion, a shorter construction cycle and benefits to the public.
Since 1975, Dufferin Construction has been responsible for ‘air-side’ snow removal at Pearson airport – a 24hrs/day, 6months/year contract. 250 DCC personnel have Government of Canada security clearance and are available on 1 hour notice.
The activity not only provides cash flow and operations during traditionally slow construction months but also ensure equipment utilization over the period.
Material recycling has been critical in allowing waste materials deposit sales and also in construction cost reduction.
In 2009, Demix Aggregates sold 230kt of recycled aggregates primarily to Demix Construction’s A-25 PPP project. Additional opportunities for asphalt recycling are being investigated to lower operating costs for construction and provide a potential revenue stream for aggregates.
RA
PID
BR
IDG
E
RE
PLA
CE
ME
NT
AG
GR
EG
ATE
S
RE
CY
CLI
NG
SN
OW
R
EM
OV
AL
Construction, in addition to Ready-Mix, is highly competitive in Greater Toronto and Montreal markets. Providing solutions is how Dufferin and Demix Construction distinguish themselves from other market players
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© Holcim Canada (Ltd) Acton Quarry February 22, 2011
Vertical Integration has also given Holcim Canada the opportunity to move into Solutions Provider roles in large scale projects. This allows the company the ability to optimize its product/service offerings
COMMODITY SOLUTIONS
SUPPLIERSUPPLIER
ALLIANCEALLIANCE
BUILDBUILD
PARTNERPARTNERDESIGN & DESIGN &
BUILDBUILDMunro Concrete
Products
Ministry of Transportation
A-25 & SAB
407 ETR
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© Holcim Canada (Ltd) Acton Quarry February 22, 2011
A key area of growth for Holcim Canada is participation in Public-Private Partnerships in projects across Canada
• Public Private Partnerships (PPP) are an alternative method for governments to meet the public’s infrastructure needs• Through long-term PPP contracts that have design, build,
finance and operate components, governments can access private sector expertise, technology and capital
407 ETR
Proposed Montreal Hospital
Government
Equity provider
Special Purpose Vehicle (SPV)
Construction contract
Loan agreement
Shareholders agreement
Service agreement
Concession (30 years)
Service agreement
Technical advisers/
consultants
Maintenance Operator
Debt provider
Design Build Joint Venture
Sub-contractors/ suppliers
Serviceagreements
Engineers/consultants
Construction/supply contracts
Engineers/ consultants
Serviceagreements
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© Holcim Canada (Ltd) Acton Quarry February 22, 2011
Legend: Fully Integrated Cement & Construction Construction Only
Focusing on core strategies in Greater Toronto and Montreal markets as well as building HCA as a solutions provider will allow the company to gain full advantage from upcoming large scale projects
GTA
GMA
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
M
X
X
X
X
X
X
X
X
X
X
X
X
S
Completed
2012 - 20172,500Turcott
2011 - 20172,000Windsor Essex Parkway
Pending
Ongoing350MTQ Highways (A-25)
Ongoing300MTO Highways
2007 - 20125,000James Bay (Sarcelle & Rupert)
2005 - 20131,600Sir Adam Beck Tunnel
Current
2012 – 20218,000Churchill Falls
Future
2012 - 20151,000407 ETR East
2010 - 2015400Calgary Airport
2010 - 20209,500MetroLinx(York BRT, Sheppard LRT, Scar RT, Finch LRT, Eglington LRT)
2012 – 20156,000Hebron Platform
2009 - 20152,400PanAm Games
2005 - 20254,200Vancouver Airport
1991 – 19976,000Hibernia Platform
2002 - 20072,000James Bay (Eastmain 1)
2011 - 20132,200Inco Smelter (Nfld)
1998 – 20104,500Toronto Airport (GTAA)
1995 - 19981,000Highway 407 ETR
Est. Project Value ($M CAD) TimelineProject
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
M
X
X
X
X
X
X
X
X
X
X
X
X
S
Completed
2012 - 20172,500Turcott
2011 - 20172,000Windsor Essex Parkway
Pending
Ongoing350MTQ Highways (A-25)
Ongoing300MTO Highways
2007 - 20125,000James Bay (Sarcelle & Rupert)
2005 - 20131,600Sir Adam Beck Tunnel
Current
2012 – 20218,000Churchill Falls
Future
2012 - 20151,000407 ETR East
2010 - 2015400Calgary Airport
2010 - 20209,500MetroLinx(York BRT, Sheppard LRT, Scar RT, Finch LRT, Eglington LRT)
2012 – 20156,000Hebron Platform
2009 - 20152,400PanAm Games
2005 - 20254,200Vancouver Airport
1991 – 19976,000Hibernia Platform
2002 - 20072,000James Bay (Eastmain 1)
2011 - 20132,200Inco Smelter (Nfld)
1998 – 20104,500Toronto Airport (GTAA)
1995 - 19981,000Highway 407 ETR
Est. Project Value ($M CAD) TimelineProject
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© Holcim Canada (Ltd) Acton Quarry February 22, 2011
Holcim Canada is a strong vertically integrated player. Optimizing opportunities in customer loyalty, sustainable development and product and service solutions will ensure full advantage of upcoming opportunities
SUSTAINABLE DEVELOPMENT
Operating by the Triple Bottom Line. Providing the right products
& services for a balanced approach to growth economically,
in our communities and respecting the environment.
STAKEHOLDER LOYALTY
Responding to stakeholder (customer, community, regulator) needs with products & services (ready-mix designs, rapid bridge
replacement) and changing procurement practices (PPP)
HOLCIM SOLUTIONS
Moving forward on innovative solutions (products / services) that fulfill our commitment to
Sustainable Development and enhance our Customer
Relationships
SUSTAINABLE DEVELOPMENT
Capturing opportunities for developing a sustainable
competitive advantage, improving relationships with stakeholders
and capturing cost savings through efficiency gains
VERTICAL INTEGRATION
Utilizing a city-based strategy to optimize material flow through channels to market, primarily in
core Toronto and Montreal markets
EMPLOYEE DEVELOPMENT
Continue to develop employees for the needs of the future with
increasingly challenging opportunities (PPPs) as well as opportunities for development
abroad
Holcim Canada’s Commitment to it’s Community & Markets
Holcim Canada’s Strategic Positioning In Holcim Ltd.
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© Holcim Canada (Ltd)
In the Acton Quarry context, Dufferin acquired the operation in 2001 and has worked to address a number of operational issues.
Site appearance Overall housekeeping and
signage Tours Rehabilitation
Entrance conditions Sweeper to address mud on
the road Sightlines at 22nd Sideroad
crossing
Haul routes Truck queues on 22nd Sideroad Speeding “eye” with HRPS
Noise Monitoring at neighbours Blast design changes
Acton Quarry February 22, 2011
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© Holcim Canada (Ltd)
We continue to address key issues with transparency and with the goal of achieving a solution for all involved.
4th Line Water Concerns Wetlands and JESA
Technical evaluations
Habitat creation
Rehabilitation and Afteruse Afteruse6 Dry bowl
600 ha into
Public ownership
Community Engagement•CLC
•Website
•Meetings
Acton Quarry February 22, 2011
Subject: Conclusion of 4th Line Water Study & Termination of Temporary Water Supply to Your Property as of July 28, 2009
The purpose of this letter is to confirm that the independent 4 th Line Water Supply Study by Jagger Hims Limited concludes that the Acton Quarry is not impacting your well . As you know, our policy is to supply water to properties experiencing water issues until such time as a review of the situation can be completed. The Jagger Hims study is now the third study in two years on this issue. We have satisfied ourselves and various government agencies that Dufferin is not the cause of your problems. As such, there is no basis for our continued involvement in this matter.
Property & Resource
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© Holcim Canada (Ltd) Milton Quarry CAP Presentation September 27th, 2010
Strength. Performance. Passion.