Cement, Energy and Environment

Recent cement production trends 2008-201 Oe In 2009 cement production increased to 53.9 million tons indicating a growth rate of 4.94% with respect to previous year. The clinker production also continued to grow and the production reached to 46, 2 Mtons with an annual increase of 3, 20%. Clinker imports made in year 2006 aimed to meet the rapidly growing domestic consumption, have first slowed down in 2007 and 2008 and totally ceased in 2009. Table shows the comparison of 2008 & 2009 including the estimated figures of non– members of TCMA. The leading cement producers The leading Cement Groups in Turkey are OYAK, Sabanct– Heidelberg, Nuh, Cimentas, Cimko, As, Limak, Batt Anadolu, Vicat, SET ltalcementi, Askale, and Cimpor Projects for new capacities During the high growth period of Turkish cement industry, many producers as well as the new entrepreneurs invested for new capacities and the total clinker capacity 2008Mtons 2009Mtons % Cement Production (*) Cement Sales (*) Cement Exports (*) 54,0 42,5 11 ,6 59,2 42,8 16,5 9,6 0,7 42,2 (") Figures cover statistics of TCMA members and estimations for non-members Production & Consumption (1950-2009) (x1000 tons) ~.~ .----------------------------------------, ~.~r---------------------------------------~ ~.~r---------------------------------=---~~ ~.~+---------------------------~~~~~~~ 20.~ +-------------------------::aF-=-------------l 10.~ -1--------~rtflll'l.~~~---------l 0~~~~~~~~~~~~~~~~~ ~ ~ ~ ~ i ~ I ; ~ § ~ i I ' ~ ~ ' ~ ~ ~ Ploduc1ion ConsumpCion I There is an estimation of 8-10% increase in cement production in 2010 augmented from 40 million tons to 64 million tons. Consequently, when considering the industry's 100 years history, one-third of the overall capacity has been recently built. Obviously such a big capacity increase in such a short time created rather troubled business environment. It is estimated that, around 1 Mton of clinker capacity will be further launched in 201 0. Capacity utilization rates 2008-2010e As a result of the slow down in domestic market, production loss was fully compensated with increased exports. Capacity utilization rate of 2009 in clinker, kept at the same level - 85% - of the previous year. Installed Capacity of Turkish Cement Sector (2005-2009) For 2010, an overall 90% capacity utilization rate is (x1000 tons) •2005 .2006 02007 02008 .2009 envisaged. Cement exports 2008-201 Oe Besides the sluggish domestic demand in 2009, the excess capacity pressure in the domestic markets forced the producers to focus more intensively on the export markets. New market opportunities in North and West Africa have been widely exploited. 3