Holcim Canada – an overview
Paul Ostrander – CEO Holcim Canada
Acton Quarry
February 22, 2011
© Holcim Ltd 2010
Holcim Canada will soon celebrate 60 years of operations in Canada
with a history dotted with strategic acquisitions and growth
Cement production
begins in Quebec
(1954) & Ontario
(1956)
Acquisition of
Dufferin assets
1951 1954-56
1961
Atlas Realities
(later St. Lawrence
Cement) is
incorporated by
Holderbank (later
Holcim)
St. Lawrence
Cement is listed
on Montreal &
Toronto Stock
Exchanges
© Holcim Canada (Ltd)
Acquisition of
Joliette Cement
Plant & Ontario
concrete
operators
(Boehmers &
Peninsula)
Creation of
strategy waste
recycling
committee
(AFR at
Joliette in
1994)
1965 1973-76 1984-85 1990
Acquisition of 50%
share in Quebec
Ready-Mix & DeMix
Acquisition of cement
plants in Catskill New
York and Hagerstown
Maryland
Acquisition of
TCG, Acton and Holcim Ltd.
buyout of St.
Mosport.
Lawrence
Launch of
Cement
Shared
minority
Services
shareholders
1997 2001
Acquisition of
NorthStar Cement
(Nfld) and Gormley
Aggregates
Matured vertical
integration strategy to
concentrate on areas
surrounding cement
plants
2007
2009
St. Lawrence
Cement becomes
Holcim Canada
Installation of Vertical
Roller Mill & Clinker
Cooler
Acquisition of Ontario
Red-Mix & Beton Grilli
& Lunick
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Acton Quarry February 22, 2011
Holcim Canada is a fully integrated player in the highly populated
Greater Toronto (GTA) and Greater Montreal (GMA) markets
GMA
Cement Plant
Aggregate (5)
Ready-Mix (9)
GTA
GMA
Fully Integrated
GTA
Cement & Construction
Construction Only
Cement Plant
Aggregate (8)
Ready-Mix (20)
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© 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
Housing Starts (% Change)
GDP (% Change)
25
4
2
0
2005
0
-2
2005
2006
2007
2008
2009
2010
2011
2006
2007
2008
2009
2010
2011
-25
-50
-4
CAD
CAD
US
US
Total Construction (% Change)
Cement Consumption (% Change)
20
20
10
10
0
-10
2005
2006
2007
2008
2009
2010
2011
0
2005
-20
-10
-30
-20
CAD
US (incl. imports)
Source: PCA 2010 Summer Forecasts for the US and Canada, August 2010
© Holcim Canada (Ltd)
2006
2007
CAD
2008
2009
2010
2011
US
4
Acton Quarry February 22, 2011
Holcim Canada has a commitment to Sustainable Development with
Corporate Objectives for OH&S, Environment and Social initiatives
900
5.6
3.9
4
2.7
< 2.0
2
4.2
3.2
2.2
2.3
1.1
0.6
0
2005
2006
2007
LTIFR: Lost Time Incident Frequency Rate
© Holcim Canada (Ltd)
2009
2010
25% Reduction Target from 1990 Levels
700
600
500
400
300
200
100
850
652
610
607
1990A
2007A
2008A
2009A
0
Annual CO2
Target
COMMUNITY
SPONSORSHIP
LTIFR
2008
800
CO2 net / t cem
6
CORPORATE SOCIAL
RESPONSIBILITY
OH&S - LTIFR
7.1
ENVIRONMENT – CO2
8
Holcim Canada maintains Community
Advisory Panels (CAPS) at all operating sites
(proportional to site size)
5
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
6
© 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
Supply
Basic Materials
Processing
Cementitious
Materials
(cement,
mineral
components)
Channels
Transactional Transformational
End-users
Direct Sales
Ready-mix
Concrete
Traders
General
Contractors
Concrete
Products
Self - builders
Masons
Wholesalers
Mortars
Aggregates
Retailers
(sand, gravel,
stone, recycled
aggregates)
Demand
Applications and
Construction Fields
Asphalt
Direct Sales
Civil
Engineering
A
p
p
l
i
c
a
t
i
o
n
s
Housing
Commercial /
Industrial
Building
Infrastructure
35% of cementitious volumes and 39% of aggregate volume
flowed through our vertically integrated channels in 2009.
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© Holcim Canada (Ltd)
Acton Quarry February 22, 2011
PERVIOUS
CONCRETE
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
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.
SPECIALTY
CONCRETE
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.
ENVIROGUARD
Anti-Corrosion concrete inhibits the corrosion of steel reinforcement.
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
© Holcim Canada (Ltd)
8
Acton Quarry February 22, 2011
RAPID BRIDGE
REPLACEMENT
Material recycling has been critical in allowing waste materials deposit sales
and also in construction cost reduction.
SNOW
REMOVAL
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.
AGGREGATES
RECYCLING
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
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.
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.
9
© 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
SUPPLIER
ALLIANCE
BUILD
PARTNER
DESIGN &
BUILD
Munro Concrete
Products
Ministry of
Transportation
A-25 & SAB
407 ETR
10
© Holcim Canada (Ltd)
Acton Quarry February 22, 2011
A key area of growth for Holcim Canada is participation in PublicPrivate 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
Service
agreements
Government
Shareholders
agreement
Proposed Montreal Hospital
Engineers/
consultants
Concession (30 years)
Equity provider
Special Purpose
Vehicle (SPV)
Loan
agreement
Debt provider
Service agreement
Construction contract
Technical
advisers/
consultants
Design Build
Joint Venture
Service
agreements
Engineers/
consultants
Service
agreement
Maintenance
Operator
Construction/
supply contracts
Sub-contractors/
suppliers
407 ETR
11
© Holcim Canada (Ltd)
Acton Quarry February 22, 2011
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
Est. Project Value
($M CAD)
M
S
Timeline
Highway 407 ETR
1,000
X
X
1995 - 1998
Toronto Airport (GTAA)
4,500
X
X
1998 – 2010
Hibernia Platform
6,000
X
James Bay (Eastmain 1)
2,000
X
Vancouver Airport
4,200
Project
Completed
1991 – 1997
2002 - 2007
X
2005 - 2025
X
2005 - 2013
Current
Sir Adam Beck Tunnel
1,600
X
James Bay
(Sarcelle & Rupert)
5,000
X
MTO Highways
300
X
X
Ongoing
MTQ Highways (A-25)
350
X
X
Ongoing
2,000
X
X
2011 - 2017
Calgary Airport
400
X
X
2010 - 2015
407 ETR East
1,000
X
X
2012 - 2015
Churchill Falls
8,000
X
2012 – 2021
Hebron Platform
6,000
X
2012 – 2015
(York BRT, Sheppard LRT, Scar
RT, Finch LRT, Eglington LRT)
9,500
X
X
2010 - 2020
PanAm Games
2,400
X
X
2009 - 2015
Turcott
2,500
X
X
2012 - 2017
Inco Smelter (Nfld)
2,200
X
2007 - 2012
Pending
GMA
Legend:
Fully Integrated
Cement & Construction
Construction Only
GTA
Windsor Essex Parkway
Future
MetroLinx
2011 - 2013
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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
Holcim Canada’s Commitment to it’s Community & Markets
SUSTAINABLE
DEVELOPMENT
STAKEHOLDER LOYALTY
HOLCIM SOLUTIONS
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.
Responding to stakeholder
(customer, community, regulator)
needs with products & services
(ready-mix designs, rapid bridge
replacement) and changing
procurement practices (PPP)
Moving forward on innovative
solutions (products / services)
that fulfill our commitment to
Sustainable Development and
enhance our Customer
Relationships
Holcim Canada’s Strategic Positioning In Holcim Ltd.
SUSTAINABLE
DEVELOPMENT
VERTICAL INTEGRATION
EMPLOYEE
DEVELOPMENT
Capturing opportunities for
developing a sustainable
competitive advantage, improving
relationships with stakeholders
and capturing cost savings
through efficiency gains
Utilizing a city-based strategy to
optimize material flow through
channels to market, primarily in
core Toronto and Montreal
markets
Continue to develop employees
for the needs of the future with
increasingly challenging
opportunities (PPPs) as well as
opportunities for development
abroad
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© Holcim Canada (Ltd)
Acton Quarry February 22, 2011
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
Haul routes


Truck queues on 22nd Sideroad
Speeding “eye” with HRPS
Entrance conditions


Sweeper to address mud on
the road
Sightlines at 22nd Sideroad
crossing
Noise


Monitoring at neighbours
Blast design changes
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© Holcim Canada (Ltd)
Acton Quarry February 22, 2011
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
Property & Resource
Subject:
Technical evaluations
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 4th 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.
Rehabilitation and Afteruse
Afteruse6
Dry bowl
Habitat creation
Community Engagement
• CLC
• Website
• Meetings
600 ha into
Public ownership
15
© Holcim Canada (Ltd)
Acton Quarry February 22, 2011
Strength. Performance. Passion.
16
© Holcim Canada (Ltd)
Milton Quarry CAP Presentation
September 27th, 2010