MANAGEMENT PRACTICES ON LAFARGE SURMA
CEMENT LTD.
BASED ON THE YEAR ENDED 2009OF COMPANY ANNUAL REPORTAND PRACTICAL EXPERIENCES
MANAGEMENT PRACTICES ON LAFARGE SURMA CEMENT LTD.
Prepared for Dr. Maj (Retd.) Khondaker SafizzamanFaculty, FBS,BUP.
Prepared By1. Md. Mozzamel Haque Bhuiyan; Roll no.-E400412. Syed Adnan Parvez Iftekhar; Roll no.-E400423. Hossain Md ABAD; Roll No.-E400434. Shafi Samiur Rahman; Roll No.-E40044
Lafarge Group
Founded on 1833 in Ardeche,France by Joseph-Auguste Pavin de Lafarge as a limestone mining company
Now, The Lafarge group is the
World leader in Cement �
No. 2 worldwide in Aggregates & Concrete�
No. 3 worldwide in Gypsum�
Lafarge Group
Operating in 78 countries
Employing 78,000 people� 2,013 industrial sites worldwide� 15,9 billion Euros in Sales�
Lafarge Surma Cement
Lafarge group started it’s business in Bangladesh as Lafarge Surma cement on 1997
Lafarge Surma cement is registered in 2000 under the Company Act,1994 in Dhaka
The project started with an investment of € 280 Million, which is one of the largest foreign investments in Bangladesh
The factory is located on the Northwestern bank of Surma river near Chatak
The raw material which is Limestone is supplied from Megalaya province in India via a Long Belt conveyor
Lafarge Surma Cement
17 km Long Belt Conveyor
The only cross border Long Belt conveyor of the world
2nd largest long belt conveyor of the world
Composition of Share Holders
58.87
9.98
4.99
3.02
2.7520.39
Surma Holding B.V ADB
International Finance Corporation Sinha Fashion Ltd.
Islam Cement Ltd. Other Shareholders
PLANNING
9
Goals of Lafarge Surma Cement Ltd
► Consistent growth over the year,
► Growth must be sustainable,
► Committed to ensure quality materials,
► Make others feel the differences,
► To export our material in international market meeting the national demand,
► Innovation and contribution to the market with new idea, services.
Corporate planning
The Strategic goals of Lafarge group are
Be among the best industrial companies in safety
Provide our customers with innovative products and solutions to push forward the boundaries of construction
Committed to sustainable development
11
Health & Safety: Our No 1 priority
Mission�
Zero accidents and zero occupational illnesses
Be amongst the safest companies worldwide�
Goals
LTI frequency rate (including sub-contractors) divided by 2 every 3 years
75% of our Business Units meet the strict criteria for membership of Lafarge’s H&S Excellence Club by 2015
12
Health & Safety: our No 1 priority
Visible and strong commitment of our leaders�
Continuous development of employees’ competency and behavior�
Implementation of common rules and standards�
Full integration of health & safety within our processes�
Best practices and experience sharing with the world’s best performers�
Recognizing Business Units with strong health & safety performance�
PLANNING TO ACHIEVE THE GOALS
�
13
Research: A Competitive advantage
Mission�
Goals�
Inventing tomorrow’s construction solutions �
Reducing net CO2 emissions per ton of cement from 1990 to 2010 by 20%
achieving €3 billion annual sales in new products by 2012
14
Research: A Competitive advantage
The Group devotes 1% of its total annual sales to research and technology. More than 50% of its research is focused on sustainable construction
Started LAFARGE RESEARCH CENTER in 1990 to achieve the goals. Now, it has over 6 research facility all over world
Annual Budget for R&D is more than €150m
Plans to achieve the goals
15
Research: A Competitive advantage
Achievements
Lafarge used more than 2 million metric tons of waste as a replacement for non-renewable fossil fuels in 2009
Our alternative fuel usage rate reached 11% in 2009
By the end of 2009, the Group had succeeded in beating its target one year ahead of schedule, achieving a reduction of 20.7%
An average of 20 new technologies are patented each year from 2005 to 2010
16
Committed to Sustainable Development
Goals
Sustainable industrial development in long term
By end 2010 reach a rate of 85% of quarries with a rehabilitation plan complying with Lafarge standards.
By end 2010, all our quarries will have been screened according to criteria validated by WWF international.
Mission
17
Committed to Sustainable Development
Planning
Developing biodiversity index to monitor and track ecological changes at the Group's quarries and sites.
Develops dialog with local residents, associations and experts to identify the best location for quarrying
Performs an environmental impact study which pays close attention to biodiversity at each stage of the quarry's life (from extraction to rehabilitation).
If a project turns out to be dangerous for the environment, it is put on hold or special measures are taken. These could include: transferring fragile species to a safe place, closing part of the site, designating the site as a nature reserve.
Sustainability Ambitions 2012
In 2000 Lafarge group has established a set of goals it set for itself to be achieved by 2012
Each year all the BU’s get a set of goal to be achieved by the end of the year
After Each year a international firm makes a survey group wide to determine the progress made each year
According to that report the goals for next year is set and mistakes are corrected
Sustainability Ambitions 2012
20072008200920102011201220132014201520160
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6Production Capacity (in mil MT)
Production Capacity (in mil MT)
SuSTainabiliTy ambiTiOnS 2012
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