Process Roadmap 2016.pptx

Process and Production Introduction and key activities

© 2015 LafargeHolcim

Key topics of PRODUCTION & PROCESS group Synergies & Cost Leadership • Clinker and cement volume increase • Mining sustainability • Improve eqpt. availability • Energy cost management • Optimize cost • Organizational efficiency

• Improve product quality (via clinker reactivity)

Regional Project / Initiatives

• • • • • •

• Application-Based Cement Testing Proj.

SATF Support

• • • • • •

Support MTP Target

HEALTH & SAFETY

Commercial Excellence & Innovation

Area Ownership Talent Dev’t.

Petcoke Proj. Slag-Addition Proj. Clinker movement Vertical Mill Optmization Cooler Optimization World-Class Maint. Proj.

COi bmi MANi FANi IFC Others

15.7 mCHF 7.6 mCHF 7.3 mCHF 2.1 mCHF 6.9 mCHF 14.3 mCHF

Lean Capital Spending • Maximize asset utilization • Key CAPEX to Develop Projects (e.g. Kanthan debottlenecking)

871.7 mio CHF

regional CIP reduces risk of not achieving

• Product portfolio management (technical)

• CAPEX Management • Leverage on Best Cost Countries

TARGETED BENEFITS

• DSCQP

32 – 39 mCHF

• Establish business case for actions that require CAPEX

TARGETED BENEFITS

Architecture, Assessment & Development and Certification 2015-08-04

2016 CLC EBITDA 1

Training and Development, Succession Planning and Communities of Best Practice © 2015 LafargeHolcim

53.9 mCHF

1

excl. Myanmar, Australia and New Zealand 2

PRODUCTION AND PROCESS Vertical Mill Optimization Vertical Mill Optimization • Recurring savings of 5 mCHF per year (Philippines, Malaysia and Indonesia) • Increasing mill throughput to increase clinker volume • Reduction of electrical energy consumption by 0.5-0.8 kWh/t clinker • Regional CIP activities: • Conduct B level on-site together with the plant • Support designing the modification (without CAPEX) • On-site support on the modification and commissioning © 2015 LafargeHolcim

PRODUCTION AND PROCESS Sample Case: Hon Chong VRM Optimization • Root cause:

Existing raw mill BDP 334 tpd will be unsufficient to scope with kiln 5,000 tpd project when the raw mill capacity required 359 tph (dry) at least

• Objectives:

To debottleneck the raw mill to increase the capacity at least 359 tph (dry)

To address all the bottleneck on auxiliary equipment to maintain the raw mill capacity at highest level • Scope:

Modify the blind plates of nozzles ring Optimize gas flow control to keep raw mill fan sufficient at new capacity

• Total budget:

30,000 USD

• Achievement:

Raw mill production increase achieved – 367 tph

Power reduction in Raw mill – 0.8 Kwh/ton

© 2015 LafargeHolcim

4

PRODUCTION AND PROCESS Clinker Cooler Optimization Clinker Cooler Initiative • Recurring savings of 3 mCHF per year (Philippines, Malaysia and Indonesia) • Reducing the specific heat consumption by 15 kcal/kg clinker • Improvement in clinker quality • Regional CIP activities: • Conduct B level on-site together with the plant

• Support designing the modification (without CAPEX)

• On-site support on the modification and commissioning © 2015 LafargeHolcim

PRODUCTION AND PROCESS False Air Reduction Initiative False Air Reduction • Tracking, best practices sharing and pilot plant implementation • Focus areas: VRM, main dedusting and pre-heater

• Benefits: Reduction in electrical and thermal energy including volume increase through process efficiency. • Regional CIP activities: • On-site assessment and coaching together with the plant • Support designing the modification (without CAPEX) © 2015 LafargeHolcim

Key topics of PROCESS & PRODUCTION group Key project

Description

Potential savings MCHF

Plant covered

Cross Transversal regional CIP initiative

- To optimize energy VRM consumption Optimization - To increase throughput

Davao, Lugait, La Union, Surma, Kanthan, Cilacap

Materials, Maintenance, Training

- To optimize cooler efficiency Cooler - To optimize thermal energy Optimization consumption (via heat recuperation)

Surma, Hon Chong, langkawi

Materials, Maintenance, Training

False Air Reduction

- To reduce false air in the key areas: VRM, main dedusting and pre-heater

All plants

Slow Down Tracking

- To meet the target Production Rate Index

Bulacan, Lugait, Davao, La Union

Maintenance

TOTAL mio CHF

2015-08-04

© 2015 LafargeHolcim

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© 2015 LafargeHolcim