w/c 29 September 2008 Strategy News PMI update from Gonzalo Galindo I would like to update you on our progress with the initiative to ensure savings and improvement opportunities that was announced last week. The good news is that, by the end of August, we had made £11 million worth of savings across the UK business on the back of initiatives, such as: Increased use of alternative fuels Less disposal to landfill Recovery of market share through better selling is helping to save claims Our readymix wash waste initiatives are reducing waste Increased fleet productivity Reducing overtime and head count While we are on track to make further savings by the end of the year, there is a need to increase and accelerate these projected savings significantly to compensate for the continued market downturn. I am confident that we will be able to find these savings and meet the challenges ahead, but we must leave no stone unturned to improve on our expected forecasts. I will continue to rely on your support, as your energy, enthusiasm and creative thinking is critical to succeed during this difficult time. Health & Safety LTI free record now better than 2007 - let's keep up the good work There were no lost time injuries to employees or contractors reported last week bringing the total number of lost time injury free weeks in 2008 up to 20. The number of weeks without lost time injuries to employees so far this year has increased to 26, 1 more than at this stage last year. Please keep supporting our target of zero injuries by looking after yourself and your colleagues. LTIs last week Employees Contractors Total Weeks without employee LTIs: LTIs year to date LTIs year to date 2008 2007 0 15 16 0 8 8 0 23 24 Year to Date 2008 = 26 Year to Date 2007 = 25 Caption competition As part of our campaign to promote greater awareness of the importance of wearing the correct PPE, we would like employees to come up with a suitable PPE related caption for this photo: The prize for the best caption is any item out of the Arco catalogue up to the value of £100. To enter the competition, email your suggestion to Julie Welch at Julie.welch@cemex.com by 13 October 2008. The winner will be announced in a future edition of UK News. To find out more about the importance of wearing the correct PPE, download the new PPE Safety Essentials toolbox at the H&S Community by following this link , or contact your local H&S rep. Remember to get your flu jab The Government's flu campaign is now underway. To help employees, CEMEX will be offering a "flu jab" in conjunction with our health services provider, Norwich Union. A nurse will visit 16 CEMEX UK sites this autumn. Before this happens, we will need a list of employees at each site who want to take up the vaccination. The treatment will require five minutes of your time and is free. Any employee who can travel to one of the locations can register. If you wish to participate, please contact your local coordinator by the date given below. Once arrangements are finalized, they will let you know when your appointment time will be. CEMEX Location Barrington Bristol Burton-on-Trent Rugby Office Dove Holes Oldbury Preston Brook Rugby Works South Ferriby Southampton Stockton Thorpe Tilbury Uddingston West Burton Wick Coordinator Contact No. Tom Gemmell Ann Ponting Angie O’Neill Anna Hughes Helen Sanchez Kathy Willcox Lynn Smith Maggie Sargeant Diane Wright Jennifer Rogers Charlie Buck Sabrina White Gavin Cowen Isabel Booth Gary Adlington Jayne Leaker 01223 870781 01454 451832 01283 517070 01788 517010 01298 77531 0121 5697451 01928 752752 01788 557753 01724 732434 02380 720207 01642 628200 01932 583143 07810 813119 01698 811118 01427 883240 01179 371170 Sign-up deadline 03 October 03 October 24 October 24 October 24 October 03 October 01 October 24 October 01 October 24 October 24 October 24 October 01 October 03 October 24 October 03 October Vaccination date 17 October 24 October 14 November 07 November 21 November 24 October 17 October 6 November 7 October 18 November 14 November 6&7 November 7 October 23 October 20 November 24 October Flu Facts • The vaccine is matched to the strain of flu which is expected this winter. • Immunisation gives good protection from flu and lasts one year because the virus that causes flu changes. • The virus circulates every winter, usually over a period of a few weeks and, as a result, a lot of people fall ill around the same time. • Your body starts making antibodies a week or 10 days after the injection. • Modern flu immunisation does not usually cause problems. You may experience a slight soreness in your arm after the jab. Sometimes it can cause a mild fever (rise in body temperature) or muscle aches for a day or so. Any other reactions are very rare. • There is no active virus in the jab so it can't cause flu, however people very occasionally catch flu before the vaccine takes effect. • People with a serious allergy to hen's eggs or who have had a previous allergic reaction to vaccine should consult their GP before considering vaccination. • Employees who are pregnant should also consult their GP before considering vaccination And finally: if you do get flu, how will you know? • Flu symptoms hit you suddenly and severely. They usually include fever, chills, headache and aching muscles, and you can often get a cough and sore throat at the same time. Success Stories DLR contract won CEMEX Rail has successfully secured a contract with Carillion for the supply of approx 3000 EG80A Concrete Sleepers to Docklands Light Railway (3rd Car Enhancement Project). The sleepers will be manufactured at our Washwood Heath factory in Q1 2009. It is anticipated there will be further enhancements ahead of the 2012 Olympics requiring these types of products and hopefully this will be a spring board to other sleeper contracts. This contract further enhances CEMEX Rail reputation as the UK's leading manufacturer of Rail products. CEMEX supplies £330m paper mill construction project CEMEX is supplying materials, logistical and technical expertise for the construction of a large £330 million recycled paper mill in Norfolk. The mill is being built for German company Palm Paper on a 52 hectare site at King's Lynn. During the 15 month contract, due for completion in July 2009, CEMEX is supplying more than 110,000m³ of Readymix, aggregates for ground stabilisation, and cement to German main contractor Glass GMBH, plus four piling sub-contractors. One of the early challenges facing the Norfolk-based CEMEX team was ensuring an adequate supply of Readymix to the site while an on-site batching plant was being assembled. The CEMEX static plant at King's Lynn has been supporting the contract from the outset, with as many as 20 delivering to the site at any one time. In the early stages concrete pours of up to 1,000m³ within a 12 hour period were required, often at short notice. Four CEMEX quarries - Watlington and Flixton in Norfolk, Baston (Lincs) and Bradwell (Essex) - are providing a consistent supply of aggregates to both plants to cope with the large volume pours. Xypex Waterproof Concrete Success in Wales Carmarthen Concrete plant recently completed a 600m3 pour of concrete using Xypex for the redevelopment of Carmarthen town centre. The pour, for the contractors Jones Brothers Henllan, required a technically demanding concrete to make a waterproof header tank for the shopping centre's 'sprinker' system. This pour is the first part of a total of 12,000m3 that CEMEX will be delivering over the life of the project. Xypex is a non toxic dry powder that is added to concrete to make it completely impervious to the penetration of water and other liquids. It works by reacting with water and Portland cement to fill the voids and micro cracks in concrete through the lifetime of the concrete. It is ideal for any application where waterproofing is needed and has been used all over the world, including for the construction of the Sydney Olympic stadium. It doesn't require any membranes or complicated application from the ground workers and so reduces time and labour. Damien Kelly of SMR the suppliers of Xypex in the UK had this to say of the contract; "We couldn't ask for anymore from a Readymix company, all issues were dealt with by CEMEX very professionally, and the job went really well." Jones Brothers have been very pleased in general with CEMEX's performance on site and it is hoped that this great relationship continues in the future. Other contractors are now showing interest in using Xypex and the Welsh sales team hopes that other applications can be found for this unique additive. People News Starters and Leavers - Supervisor/Manager Responsibilities The HR Department has recently published policies and processes about the administration for new employees and leavers. Whilst most aspects of each process are not new, it is very important that if you are a manager or supervisor, you fully understand and follow the correct procedure. The policies and processes have been sent to your VP/Director and are currently being cascaded through your business area. However, if you have not received any information about this yet, please ask your line manager about them. Copies of these documents, along with a summary of Line Manager Responsibilities have been placed on CEMEX Plaza, in the People area and your local HR Administrator will be happy to provide guidance and support on any aspect of the New Starter and Leaver Processes. Organisational changes Cement Operations & Technology Fernando Enríquez, current Vice President of Cement Operations for the United Kingdom and of Technology for the United Kingdom and Northern Europe, has been appointed Vice President of Cement Operations for Spain and of Technology for Spain, Southern Europe and Middle East, reporting to Joaquín Estrada, President for CEMEX in Spain, and on a coordinated basis to Martin Langvad, Technology Vice President for Europe, Middle East, Africa, Asia and Australia. Luis Galan, current Operations Manager Rugby has been appointed Rugby Plant Director reporting directly to Carlos Uruchurtu, Vice President of Cement Operations for the United Kingdom and of Technology for the United Kingdom and Northern Europe. We congratulate Luis and wish him success with his new responsibilities. Readymix & Mortars and Aggregates & Asphalt Operations Andy McAuley, formerly customer service trainer for the customer services centre in Scotland, Readymix & Mortars has been appointed as Regional Trainer for Scotland, Readymix & Mortars and Aggregates & Asphalt operations. Paula Lucas formerly customer service trainer for the customer service centre in the North East, Readymix & Mortars has been appointed as Regional Trainer for the North East regional Readymix & Mortars and Aggregates & Asphalt operation. Pat Hoffman formerly customer service trainer for the customer service centre in Eastern, Readymix & Mortars has been appointed as Regional Trainer for the Eastern regional Readymix & Mortars and Aggregates & Asphalt operation. Lisa Fisher formerly customer service training manager for the customer service centre in Western, Readymix & Mortars has been appointed as Regional Trainer for the Western regional Readymix & Mortars and Aggregates & Asphalt operation. John McGinnes formerly customer service trainer for the customer service centre in the South East, Readymix & Mortars has been appointed as Regional Trainer for the South East regional Readymix & Mortars and Aggregates & Asphalt operation. These Regional Trainers will all now report to the National Process Manager, Christine Newman. New Car Rental partner selected for CEMEX in Europe SIXT has been selected as the preferred Car Rental partner for CEMEX in Europe. The effect takes place as of the 1 October. From then, any car or van rental requirements should be booked with SIXT who replace the service previously provided by National Car Rental. Employees can also benefit from business rates for their personal use using the credit card booking web page below. Please note that business bookings should be made using P Cards. Sixt is one of the top 4 international car rental companies in the world. They are present in 87 countries worldwide and you can find Sixt locations in each European country. Sixt is market leader in Germany, where its headquarters are located, and are the fastest growing car rental company in Europe. Besides a premium fleet, Sixt offers you a high service quality and many innovations that facilitate and speed up the rental process. How to book a Car / Van? There are 3 ways to book vehicles: 1) Book on-line using P cards at: http://www.sixt.de/cgiperl/rental/or?action=corp&kdnr=104142&passwd=CEMEX&language=en 2) Book on-line using credit cards at: https://b2b.e-sixt.de/php/partner/login?user=5215@9977412.de&password=CEMEX 3) Book by telephone on 08701 567567 quoting CEMEX account number 104142 CEMEX get excellent additional discounts by booking on-line (circa 10%) plus it is fast and easy. Please use this as your preferred booking method. Please order your Sixt Cards at http://www.sixt.de/partner/cemex/cemex.php?lang=en The Sixt Express Card captures your personal data, your CEMEX account number, and the correct CEMEX negotiated rates. Therefore you can save time at the counter and you don’t even need to present your credit card! The Sixt Express Card also enables you to: • use the Sixt express terminal and key safe to avoid waiting time at the counter • use the Sixt quick check-in by telephone • Benefit from bonus miles or points of Sixt’s partners, e.g. Lufthansa, Brussels Airlines. After five rentals, you automatically receive a Sixt Gold Card, and after 20 rentals it will be a Sixt Platinum Card, granting you various advantages such as a free upgrade. Sixt Emergency Assistance Number 08700 103044 Dell discounts - Get up to 10% off your next desktop or laptop Dell's Employee Purchase Program offers you the opportunity to purchase Dell™ consumer products at highly discounted prices. Visit http://www.dell.co.uk/epp for more information Cash for Kids fund raising Construction Services staff based at Sheffield have been holding dress down Fridays to support a local charity. Staff paying a pound to attend work on Friday's in their casual attire have decided to donate the money raised to the charity Cash for Kids formally called Help a Hallam Child. Cash for Kids is a charity that was started in the 1970's to support local disabled and disadvantaged children in the Hallam area. This charity supports sick and needy children by providing grants to individuals, other charities, groups and the health sector. Well done to Sheffield Construction Services Staff for raising £350 to date supporting local children. Site News CEMEX presents Thorpe land to local community CEMEX has recently transferred land at Ten Acre Lane in Thorpe, Surrey, to the local Scouts movement to help secure the future of a hut where local Brownies, Cubs and Scouts have been meeting for more than 40 years. As part of our efforts to be a good neighbour, we marked the transfer in an informal ceremony with more than 30 local children. This development marks a new beginning for the hut, which can now be re-built. Simon Barrett Director of Properties, above with Elaine Gill, who attended the ceremony said: "The Scouts and Girlguiding movements make a positive contribution to our community, and we at CEMEX are pleased that the future of the local hut has now been secured. This means that local youngsters can continue to benefit from the activities that bring knowledge and enjoyment to so many people." Runnymede Independent Residents' Group Councillor for Thorpe Ward, Elaine Gill, has championed the local Scouts movement for a number of years. She said: "I am happy that CEMEX has agreed to transfer this land to the Cubs, Scouts and Brownies of Thorpe. Although it is only a small piece of land, the handover creates big opportunities for us. The fact that we now own it means that we can move ahead with our plans to renovate the Scout Hut and the land around it, and in doing so, help improve the community for our children." John's rail rescue keeps aggregate shipments on track When a section of rail split apart as a locomotive left the sidings at Dove Holes Quarry the consequences could have been disastrous. With as many as eight freight trains a days, each carrying up to 2,000 tonnes of quarried stone, there was an imminent risk of a derailment, causing major, costly delays to the aggregate shipping operation. But luckily chargehand John Carr had spotted the damage - and led a recovery operation that saved CEMEX thousands of pounds in missed aggregate consignments. The drama began in the late afternoon, giving Network Rail no time that day to deploy the necessary resources or materials to repair the 3ft of track that had collapsed. Undaunted, John assessed the damage and immediately set about improvising a solution. He found a piece of old rail in the Dove Holes sidings and helped a Network Rail engineer to cut and fit it, having attached the 113lb, 3ft section to a chain and dragged it into position using a loading shovel. The line was finally restored six-and-a-half hours later. Only one train, destined for Stourton, near Leeds, had to be cancelled. Three later trains were delayed, but completed their journeys. John said: "The damage to the track wasn't immediately obvious, although it would have been picked up in a routine inspection. It could have been very serious. If a derailment had resulted you would be looking at a recovery operation lasting days." Supervisor Liam Perkins said: "It would have been easy for John simply to have reported the fault and await the repair, but that's not our way. His actions saved around 4,200 tonnes in shipments and an enormous amount of time. This is a good example of the team here going the extra yard - something we do on a regular basis." Industry News Shaping UK Minerals Policy Conference On 3 November, CEMEX is supporting a conference that is being hosted by the CBI, the biggest lobbying organisation for UK businesses, at the Queen Elizabeth II Conference Centre in London. The conference, Living with Minerals 3, is aimed at presenting the issues that affect the minerals industry, and how these could affect the UK economy. Addressed by John Cridland, CBI deputy director-general, the conference is a one-day event, and will focus on the outcomes of the work of the UK Minerals Forum, launched last year by Baroness Andrews OBE, Parliamentary under Secretary of State at CLG. Key topics covered will include: Declining mineral reserves and the future security of supply Mineral extraction in National Parks and areas of Outstanding Natural Beauty Carbon and proximity of mineral supply Cumulative impact of policy, legislation and regulation. As a CBI member, CEMEX representatives have the opportunity to attend at a discounted rate, see http://www.cbi.org.uk/ndbs/content.nsf/802737AED3E3420580256706005390AE/75E676682 11202EE802572040053B218?OpenDocumen for more information and how to book. Free event - The 17th BCA Berthold Lubetkin Memorial Lecture - 14 October The 17th British Cement Association Berthold Lubetkin Lecture, held in partnership with The Concrete Centre, will be presented by FAT, one of the UK's most talked about young architectural practices. FAT, otherwise known as Fashion, Architecture and Taste, have raised a few eyebrows amongst the architectural establishment with their new take on English vernacular architecture that is infused with a determination to pursue a design philosophy that goes beyond current conventions and restrictions in favour of one that is inclusive and responsive to contemporary culture. Driving this philosophy is the wish to provide architecture that engages with its users and is legible to those who experience it. The result is architecture that communicates. For further information, visit http://www.concretecentre.com/main.asp?page=269&id=297 How can I contribute to UK News? If you have a story or piece of news you would like to communicate to colleagues please send it in. The deadline for contributions to UK News is close of play Friday. First check out our guide to writing stories for UK News. Then contact the Communications and Public Affairs team on 01932 583 217. Or email us at GB-Communications and Public Affairs (in Lotus Notes) or gb-communicationsandpublicaffairs@cemex.com (external).