2) Pesca recreativa
2.2.6. RESULTADOS OBTENIDOS DE LA APLICACIÓN DE ECOPATH
In Western Europe we are the market leader in Belgium and the Netherlands, where we also manufacture ready-mixed concrete and convey sand and gravel. In the United King- dom we are the second-largest cement manufacturer. We are represented on the French market by our participation Vicat. The total region’s turnover – excluding Vicat – fell by 3.1 % to EUR 900 million (previous year: 929).
Varied construction development
With stable economic development, the Belgian construction industry primarily experienced growth in the residential and public construction sectors. After several years of decline, the economy in the Netherlands recovered and construction demand rose by 2.8 %. In the United Kingdom, construction activity increased by just 1.3 % instead of the expected 4 %. In France, construction industry grew by around 3 %.
Cement business line
Rising domestic demand in Belgium and the Netherlands
After several years of stagnation, cement consumption in Belgium and the Netherlands increased by around 2 %. As the domestic sales volumes of our Belgian and Dutch plants significantly ex-
Turnover 2005: 900 EURm 01 02 03 04 05 1,052 1,023 959 929 900 Turnover in EURm 69.4% Cement 30.6% Concrete Western Europe
51
ceeded this increase in demand, we were able to expand our market position in both countries. However, at 5.5 million tonnes, the total sales volumes only reached the previous year’s level, due to falling cement exports and clinker sales. Both countries are under continuing import pressure from Germany.
A restructuring plan has been formulated together with the works councils and trade unions in order to increase productivity and improve the cost structure. The plan includes the decom- missioning of the clinker kiln in the Maastricht plant between the end of 2007 and the end of 2009. Efficiency is being increased in the area of administration as part of the Europe-wide “win” project.
In 2005, major investments were started to upgrade the white cement plant in Harmignies, Belgium, which will be finished by the end of this year. Further investments were made to re- place and modernise process control and IT systems.
Ultra-modern cement kiln in Wales
Due to the weak development of the construction industry in the United Kingdom and, in par- ticular, the market entry of a new competitor, the cement sales volumes of our subsidiary Castle Cement fell to 2.9 million tonnes (previous year: 3.1).
In July 2005, we commissioned one of the most modern cement kilns in Europe at the Pades- wood plant in Wales, enabling us to produce 900,000 tonnes of clinker per year. On the other hand, we decommissioned obsolete kilns in Padeswood and Ribblesdale. The new kiln conforms with the highest environmental and performance standards; in particular, it allows us to increase the use of alternative fuels.
Strong foreign operations at Vicat
The turnover of the French Vicat Group rose by 11 % to EUR 1,797 million in 2005. Vicat’s foreign subsidiaries in the US, Turkey and Egypt in particular contributed to this increase. In all three countries, the high domestic demand led to a considerable rise in sales volumes, turnover and prices. In the Turkish plants, the production capacity is being increased with the construction of a new kiln, a new cement mill, a cement silo and a cement packing machine.
While turnover also grew in Italy and Senegal, it decreased slightly in Switzerland. On Vicat’s domestic French market, cement sales volumes also rose; it was possible to increase prices in line with the inflation rate. The heavy rise in fuel and electricity prices and the necessary acquisi- tion of certificates for CO2emissions adversely affected costs in 2005. Vicat therefore intensified
the search for and use of alternative fuels. In France, work began to modernise and expand the capacities of the Montalieu plant.
Cement Concrete Building materials Intra-Group eliminations Total turnover 661 292 - -53 900 683 290 - -44 929
Turnover by business lines
EURm 2004 2005
OIBD
Operating income
Investment in tangible fixed assets Tangible and intangible fixed assets Employees 141 65 70 1,289 3,501 164 83 71 1,301 3,640 Key data EURm 2004 2005
52 Concrete business line
Participations in ready-mixed concrete expanded
With stable demand for ready-mixed concrete in Belgium and the Netherlands, we were able to increase our sales volumes in both countries by 10,2 % to 3.0 million cubic metres (previous year: 2.7). This growth in volume was mainly due to two new participations in Belgium and the increase of our share in a Dutch ready-mixed concrete company to 100 %. We thus succeeded in winning back market share in the Netherlands that we had lost in previous years. In addition, we made organisational changes in order to optimise work processes and adapt to market re- quirements. However, we had to put up with significant price reductions in the past year, particu- larly in the Netherlands, as a result of increasing competitive pressure.
In 2005, we primarily invested in the modernisation of production sites and in IT systems, new cranes and crane systems.
Securing raw materials for aggregates
Sales volumes of aggregates in Belgium and the Netherlands reached again previous year’s level of 15,3 million tonnes.
In the Belgian province of Limburg, the authorities have approved of the mining of gravel until the end of 2006. We have founded a joint venture with other gravel producers in order to more easily obtain new mining concessions from the Belgian government for a further 25 years. By increasing our participation in the Leffe quarry to 100 %, we have strengthened our core business. On the other hand, we sold non-core activities in the area of recycling, as well as assets not re- quired for operational purposes.
The Dutch company Paes was adversely affected by the weak demand in road construction in 2005. One of the company’s main tasks is to secure its raw material base. Paes is endeavouring to obtain an extension of the mining concessions, which expire at the end of 2006, and is also looking for new raw material deposits and high-quality alternative products such as limestone and sea gravel.
Turnover 2005: 799 EURm 01 02 03 04 05 825 872 758 716 799 Turnover in EURm 51.2% Cement 48.8% Concrete Northern Europe
53