MANAGEMENT PRACTICES

ON LAFARGE SURMA
CEMENT LTD.

BASED ON THE YEAR ENDED 2009

OF COMPANY ANNUAL REPORT
AND PRACTICAL EXPERIENCES
 MANAGEMENT PRACTICES ON
LAFARGE SURMA CEMENT LTD.

Prepared for
Dr. Maj (Retd.) Khondaker Safizzaman
Faculty, FBS,BUP.

Prepared By
1. Md. Mozzamel Haque Bhuiyan; Roll no.-E40041
2. Syed Adnan Parvez Iftekhar; Roll no.-E40042
3. Hossain Md ABAD; Roll No.-E40043
4. 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

ƒ World leader in Cement

ƒ No. 2 worldwide in Aggregates & Concrete

ƒ No. 3 worldwide in Gypsum

 Lafarge Group
Operating in 78 countries
ƒ Employing 78,000 people
ƒ 2,013 industrial sites worldwide
ƒ 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

20.39
2.75
3.02

4.99 58.87
9.98

Surma Holding B.V ADB

International Finance Corporation Sinha Fashion Ltd.
Islam Cement Ltd. Other Shareholders
PLANNING
 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.

9
 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

 Health & Safety: Our No 1 priority

Mission
ƒ
Zero accidents and zero occupational illnesses

ƒ 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

11
 Health & Safety: our No 1 priority

PLANNING TO ACHIEVE THE GOALS

ƒ Visible and strong commitment ofƒour leaders

ƒ Continuous development of employees’ competency and behavior

ƒ Implementation of common rules and standards

ƒ Full integration of health & safety within our processes

ƒ Best practices and experience sharing with the world’s best performers

ƒ Recognizing Business Units with strong health & safety performance

12
 Research: A Competitive advantage

Mission
ƒ
Inventing tomorrow’s construction solutions ƒ

Goals
ƒ
Reducing net CO2 emissions per ton of cement from
1990 to 2010 by 20%
achieving €3 billion annual sales in new products by
2012

13
 Research: A Competitive advantage

Plans to achieve the goals

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

14
 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

15
 Committed to Sustainable
Development
Mission

Sustainable industrial development in long term

Goals

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.

16
 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.
17
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
Production Capacity (in mil MT)
6

4 SuSTainabiliTy ambiTiOnS 2012

3

1
Production Capacity
(in mil MT)
0
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