Holcim banks on green cement

SWISS cement group Holcim Malaysia is optimistic that its new green
cement range will contribute to better sales and profit for 2012.

In 2010, the company recorded RM202 million sales of various types of cement products and ready-mix concrete.

Chief executive officer Mahanama Ralapanawa said Holcim Malaysia's
sales and profit growth will also be driven by greater operational
efficiencies through the implementation of new and better technologies,
upgrading and improvement of existing facilities and an increased focus
on providing solutions through a value-add approach.

"The
move towards green certification by developers should drive demand for
our green cement range. This range is designed to appeal to the less
price- conscious and more value-conscious customers," he told Business
Times in an email interview.





Holcim Malaysia, located at Pasir Gudang, Johor, had recently secured
the eco-label certification from Sirim which makes the company the
country's first green cement manufacturer.

Formerly known as
Tenggara Cement in 1985, the company was acquired by the Swiss-based
Holcim Ltd in 1999, becoming a wholly-owned subsidiary the following
year.

Mahanama said Holcim Malaysia is optimistic about Malaysia and will continue investing in the country.

"Our existing operations are being expanded to full capacity and we
are continuing to convert and upgrade several of our production
facilities this year that were previously acquired," he said.

Mahanama is also positive with the outlook for 2012.

"Malaysia remains fundamentally strong and as a multinational
corporation, we feel the current policies, especially the Economic
Transformation Programme (ETP), are responsive to the needs of the
country.

"The government's commitment to major construction
and development projects will drive demand for cement and other
construction material," he said.

Currently, all of Holcim
Malaysia's sales are from lite green cements. For a start, Mahanama said
15 per cent of the company's production will be focused on the new
green cement range.

"In the short term, obligations to maintain
availability coupled with a market that still lacks awareness,
education and environmental consciousness necessitates that we continue
to offer both (conventional and green cements). However, this may change
as we are reviewing and monitoring the response from the industry," he
said.

Mahanama said Holcim's green cement is the best product
for those seeking green certifications such as the GBI (Green Building
Index) and Green Mark, or even those vying for international property
awards like Fiabci.

"We have expertise in helping our customers
achieve this as our green cement has already been selling in the
region like in Singapore and Holcim has already been assisting
customers in project certification of its materials. Thus, some have
secured awards and green certifications as a result," he said.


He said numerous interested parties including developers seeking green
certifications like the GBI and Green Mark or even awards like the
Fiabci have approached Holcim Malaysia.

"We held a private
industry preview a few days ago for Holcim Top Standard, our signature
cement range used globally with confidence in residential and commercial
developments," he said, adding that the firm will launch Holcim
Duracem in January and will open preliminary bookings of stock from
January 9.

Besides Duracem and Top Standard, another key product in the company's premium green cement range is Holcim Mass Pour.

Mahanama also said that Holcim Malaysia will be embarking on a brand
awareness and education programmes in both technical and non-technical
aspect of sustainable construction and development.

It will
introduce a series of publications, guides and seminars with
international experts within Holcim, the Holcim Foundation and its
partners.