global growth - aalborg white

Aalborg Portland GroupGlobal Growth

3rd edition, December 2003Communication and Knowledge

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Contents

Facts about Aalborg Portland 2

The history of Aalborg Portland 3

The Aalborg Portland Group 4

Overall strategy 6

Raw materials for manufacturing cement 6

Extraction of raw materials 9

Processing of raw materials 10

Fuels 11

Heat recovery 11

Burning the clinker 12

Cement grinding 14

Process control 14

Packing 15

Distribution 15

Sales 16

Types of cement 18

Research and development 20

Environment 22

Quality 24

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Aalborg Portland facts

Founded: 1889

Annual capacity: 2.8m tonnes cement

Exports: 49% of total production

Domestic sales: 51% of total production

Distribution terminals in Denmark: Århus, Kolding, Aabenraa,

Odense,Sluseholmen, Redhavnen, Køge, Korsør, Vordingborg (closed at present) and Rønne

Distribution terminals abroad: Holland, Iceland, Poland

Cement trucks: 33 – capacity 34 tonnes cement

Works area and chalk quarry: 475 hectares

Bucket-wheel excavators: 2,200 tonnes chalk per hour

Bucket-chain excavator: 1,000 tonnes chalk per hour

Kilns: 6 wet-process kilns (of these 5 “white”) 1 semi-wet kiln

Raw materials including alternative raw materials: 4.2m tonnesEnergy consumption: 331,000 MWh, 419,000 tonnes coal, 29,000 tonnes oil, 64,000 tonnes alternative fuelsEmployees: 800 (Denmark & abroad)Turnover: DKK 1,500m (2002 figures)

ManagementSøren Vinther – President and CEO

Group ManagementFrom left:

Henning Bæk Executive Vice President, Finance and Treasury

Søren Vinther President and CEO

Jørgen Norup Executive Vice President, Customer Relations

Jesper Sand Damtoft Vice President, Research and Development Centre

Frands I. Grex Executive Vice President, Production and Supply Chain

Anders Thorup Vice President, Human ResourcesBoard of DirectorsBjarne Molkte Hansen – ChairmanPhilip Kjær – Vice ChairmanBent Nyboe AndersenHarry Andersen – Employee RepresentativeHenning Heilskov - Employee Representative

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The history of Aalborg PortlandAt the end of the 19th century, cement manufacturing was a rapidly expanding business. Denmark was undergoing a proc-ess of rapid development from agricultural production to industrial production. Cement was therefore in heavy demand and several cement plants were built in various parts of the country.In Aalborg, Hans Holm, a local draper entered into partnership with three engi-neers from Copenhagen, Frederik Læssøe Smidth, Alexander Foss and Poul Larsen, with the aim of setting up a cement plant. At Rørdal, east of Aalborg, they found a suitable location which had plenty of chalk and clay, and which was easily accessible by ship.

On 16 October 1889, the Aalborg-Portland-Cement-Fabrik was founded. Construction work on the plant began immediately and the first cement was manufactured in 1890.

From the very beginning, the Rørdal plant was the largest cement plant in Denmark. In spite of competition from other plants, the Rørdal plant flourished and expanded over the years in order to keep pace with the increasing demand for cement.

At the onset of the energy crisis in the 1970s, Aalborg Portland was manufactur-ing cement at the Rørdal and Danmark plants at Aalborg, at Dania in Mariager and Karlstrup near Køge. Furthermore, cement

was also being manufactured by a com-petitor, the Dansk Andels Cementfabrik at the Lindholm plant in Nørresundby.

During the 1970s, cement consump-tion in Denmark fell markedly as a result of increasing energy prices. This resulted in the concentration of cement manufac-turing at one site, the Rørdal plant. The company’s only competitor was bought up and the small, unprofitable plants were closed.

During recent years Aalborg Portland has undergone an intense process of change and development. Large investments have been made in modern technology including environmental and energy-saving meas-ures. Focus on customers and markets has been intensified, and organisational and competence development has contributed to the positive development of the Group since the mid-1990s.This development has brought the Aalborg Portland Group to a position as Denmark’s only cement manu-facturer and the world’s largest manufac-turer and exporter of white cement with plants in Denmark, Egypt, Malaysia and USA and a total annual capacity of 3.4m tonnes cement.

Today at the beginning of the 21st century, the Aalborg Portland Group is a ultra-modern cement group which is in a position to manufacture, market and sell white and grey cement on global markets characterised by keen competition.

The Rørdal plant in 1907

F.L.Smidth

Poul Larsen

Alexander Foss

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Aalborg White A/S

Founded: 1999 Ownership interest: 100%

Is a company through which Aalborg Portland controls and manages its white expansion strategy. Aalborg White A/S has the following subsidi-aries:

Sinai White Portland Cement Company


The company has an annual produc-tion capacity of 410,000 tonnes white cement at its plant in El Arish at the Sinai Peninsula. The company is one of the largest manufacturers in the area and is acting as Aalborg Portland’s regional centre of manu-facture and sales of white cement for the Egyptian market and other countries of the region.

Aalborg White Asia Sdn. Bhd.

Acquired: 2000 Ownership interest: 70%

Is the company through which the Group controls its production and sales companies in Asia and Australia. An ownership interest of 60% was acquired in 2000 and was increased to 70% at the beginning of 2003. The company has an annual production capacity of 200,000 tonnes white cement at the plant in Ipoh, Malay-sia. The company is one of the largest manufacturers of white cement in Asia and is acting as Aalborg Port-land’s regional centre of production and sales of white cement in the region. Aalborg White Asia consists of the following companies:

Aalborg White Philippines Inc.


Is a company with the purpose of selling white cement on the Philip-pine market.

Aalborg Resources Sdn. Bhd.


The company runs raw material quarries and is supplier for Aalborg White Asia.

Skim Coat Industries Sdn. Bhd.


The company manufactures, sells and markets dry mortars for the Malay-sian market and exports to selected Asian markets.

SCI Marketing & Services Sdn. Bhd.


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Aalborg Portland GroupThe Aalborg Portland Group is the world’s largest manufacturer and exporter of white cement. The Group develops, manufactures, distributes and markets a wide range of grey cement types for the Danish market and selected export mar-kets. Aalborg Portland A/S is the parent company of the Group. The company has an annual production capacity of 2.1m tonnes grey cement and 620,000 tonnes white cement at the plant in Aal-borg. In 2003, the white cement produc-

tion capacity will be increased to approx. 850,000 tonnes. From 1990 and to 2000, Great Britain’s largest cement manufac-turer, Blue Circle Industries, owned 50% of Aalborg Portland. In 2000, FLS Industries bought back Blue Circle’s ownership inter-est, and since then, Aalborg Portland has again been a 100% owned member of the FLS Group. Aalborg Portland is part of the business area FLS Building Materials that is one of the FLS Group’s two core areas.

Aalborg Portland A/S’s subsidiaries

White cement business segment

Grey cement business segment

Aalborg Siam White Cement Pte. Ltd.


Sales joint-venture with Siam Cement, Thailand. The purpose of the company is to sell white cement to selected Asian markets. Today, sales are carried out through own sales offices in Vietnam and Taiwan.

Taiwan Branch Office


Vietnam Branch Office


Aalborg White Australia (Branch Office)


The purpose of the company is to sell white cement on the Australian market.

Aalborg Portland Polska Sp. z o.o. Founded: 1996 Ownership interest: 94%

Takes care of sales of white cement in Poland and surrounding countries.

Aalborg Portland Íslandi hf.


The company imports grey cement to a terminal in Helguvík and sells and distributes cement to the Icelandic market.

CemMiljø A/S


The company buys and processes waste so that it can be used as alternative fuels in the cement manufacture.

Aalborg Portland US Inc.


A company through which Aalborg Portland manages its investments in Aalborg Cement Company Inc. and Lehigh White Cement Company in USA.

Lehigh White Cement Company

Acquired: 1982 Ownership interest: 24,5%

Lehigh White is one of the largest manufacturers of white cement in North America. As the American demand for white cement exceeds the production capacity of the company’s two plants, considerable quantities of white cement are imported from Aalborg to terminals in Florida among others.

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Overall strategyThe Aalborg Portland Group is a global group with a leading global position on the white cement market and a leading position on the domestic cement market. Fundamentally, it is our strategy to main-tain our position on the domestic grey and white cement market and expand our global position in white cement.

The Aalborg Portland Group is:• The world’s largest manufacturer of

white cement with plants in Denmark, USA, Malaysia and Egypt.

• The world’s largest exporter of white cement to approx. 70 countries.

The Aalborg Portland Group’s overall goals are:• To be a preferred, reliable and quality-

conscious supplier of cement.• To have well-educated and motivated

employees.• To be focused on low costs, high

return on invested capital, growth and top performance.

Within the white cement business segment the Aalborg Portland Group intends:• To remain global market leader.• To optimise and expand global produc-

tion facilities and sales and distribution channels.

• To apply leading research and develop-ment techniques in support of sales- and growth-promoting activities.

Within the grey cement business segment the Aalborg Portland Group intends:• To maintain and optimise the market

position in Denmark.• To ensure sales of surplus capacity to

export markets.

Energy and EnvironmentWe will actively ensure that the impact on the environment is as low as technically possible within the scope of economic feasibility. At the same time, we will try to avoid further distortion of competi-tion caused by environmental taxes and achieve reduction of existing environmen-tal taxes as these in reality are taxes and dues.

OrganisationThe Aalborg Portland Group builds on three fundamental values: Cooperation, Responsibility and Competence.

Aalborg Portland is aiming at having a lean organisation with short communica-tion channels. Our global organisation is constructed as a matrix organisation that ensures coordination and utilisation of core competencies in a number of vital areas.

In the coming years, cross-organisa-tional cooperation and increased use and understanding of our business processes are essential areas of organisational development in our efforts to increase the creation of value of the organisation.

EmployeesLike many other companies, the Aalborg Portland Group recognises that the com-pany’s total ability to create results to a high degree is dependable on one thing: the human factor. The effect of the total managerial competence and the individual employee’s level of competence are very essential factors in the success of all employees yielding top performance.

We have launched two important development projects with the aim of surveying, highlighting and develop-ing the Aalborg Portland Group’s total level of competence. These projects apply both to the managerial and the professional/personal competencies.

The goal is to highlight and specify the need of competence development in the Group. This requires a major coor-dinated preparatory piece of work that subsequently can form the framework of decentralised goal-directed development processes in the company.

Therefore all managers regularly undergo a 360-degree management appraisal, draw up a personal manager development scheme and carry out goal-directed competence development at work.

Octo

ber q

uarter

July quarter April

quar

ter

January quarter

Appraisal interview

Review of job and career opportunities

Review of wages and salaries

Competence development planning

Regulation of wages and salaries

Initiate strategy process

Presentation of strategy plan

Prepare appraisal interviews

Leadership appraisal Linking strategy,

competence & performance

Job and career development planning

Review of job goals and action plans

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Connection between competence, personal goals and resultsAn important objective in Aalborg Port-land’s employee development process is to form general view and give important information on competence develop-ment, and also fulfilment of goals and results of individuals and organisational units. This will subsequently enable a dialogue based on facts with the employ-ees about development activities.

This will be achieved through a struc-tured process of employee development, setting up and follow-up of goals and also the derived effect on reward sys-tems. To perform this work, intranet-

based IT tools are being used, thus ensuring that all elements of the proc-ess are covered and that collection of relevant information for the subsequent planning and follow-up is made.

Focus on valuesThe Aalborg Portland Group’s values form the basis of all employees’ personal com-petence profile and are the basis of goal-directed training of all employees.

It is a common principle that all train-ing is made at job and is integrated in the everyday life of the individual employee. The development project already shows substantial improvements of the everyday life of many employees

– in the form of increased motivation, more comprehensive view and efficiency at work.

CommunicationCommunication is an important man-agement tool in relation to employees, customers and the surrounding world. Openness is a key word to the Group’s communication that among others includes @Inet (Intranet), www.aalborg-portland.dk and www.AalborgWhite.com, the Environmental Report, the Annual Report, English and Danish language newsletters to customers and the com-pany paper Trekanten.

CRJørgen Norup

PROFlemming Oest

FINHenning Bæk

HRAnders Thorup

PLFrands I. Grex

RDCJesper Sand Damtoft

Sales White Cement

Sales Grey Cement

Technical dept.

Rørdal Plant

Production

Maintenance

Plant laboratory

Environment/Health & Safty

Raw materials

Energy

Technicalprocurement

Shipping

Logistics

Business Development Quality Control

MD Secretariat Environmental & Energy Management

President & CEOSøren Vinther

Finance/Administration

IT

Canteen

Development of competencies

Communication &Knowledge sharing

Wages/salaries &Administration

Welfare office

Research

Concrete &Cement laboratory

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Raw materials for manufacturing cementas well as combustible paper fibres. The raw material mixture contains approx. 2% paper sludge.

Oil sludgeIs a residual product from the processing of waste oil.

Aluminium silicateIs used as a catalyst in oil refineries.

Oxiton/SeroxIs a waste product from recycling of alu-minium.

FluorsparAnd other fluorine-containing materi-als making the clinker burnable at lower temperatures.

Gypsum and/or anhydriteGypsum and/or anhydrite are added to all types of cement. This is done in order to regulate the cement’s setting time, i.e. the time from when the cement, water and gravel are mixed until the concrete has hardened. If gypsum was not added, the concrete would set so rapidly that it would be impossible to cast and work with the concrete produced from the cement.

White cement clinkerThe manufacture of white cement clinker requires chalk, sand and kaolin, or another material with a high content of aluminium oxide (Al2O3), e.g. aluminium silicate, which is a residual catalytic agent used in oil refineries. The raw materials for white clinker have a low content of ferric oxide (Fe2O3).

Grey cement clinkerThe manufacture of grey cement clinker primarily requires chalk, sand, pyrite ash and fly ash.

ChalkIs the most important raw material. Chalk is found in great quantities in the subsoil in the Aalborg area. Chalk is mainly com-posed of calcium carbonate (CaCO3). Chalk constitutes approx. 82% of the raw mate-rial mixture.

SandAccounts for approx. 6% of the raw mate-rial mixture and is mainly composed of silicon dioxide (SiO2).

Fly ashIs a residual ash from the burning of coal.

Fly ash is collected in electrostatic pre-cipitators installed in power stations, and is a very fine grey powder. Fly ash consists mainly of aluminium oxide (Al2O3), and sil-icon dioxide (SiO2), and makes up approx. 10-12% of the raw material mixture.

Pyrite ashIs a by-product from the sulphuric acid industry. Pyrite ash consists chiefly of ferric oxide (Fe2O3). Approximately 2% is used in the raw material mixture.

In addition to the above materials, a number of alternative raw materials and/or fuels are used, produced as by-prod-ucts from other industrial production. At present, the company recycles more than 650,000 tonnes of these materials, including:

Desulphurisation gypsumIs obtained from the desulphurisation of flue gas at power stations and from our own heat recovery plant.

Paper sludgeIs obtained from the manufacture of recycled paper. Paper sludge contains calcium carbonate (CaCO3), aluminium oxide (Al2O3), and silicon dioxide (SiO2),

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The production flow1. Chalk excavator2. Dredger3. Wash mill4. Chalk slurry5. Sand mill6. Mixed slurry7. Cyclone tower8. Electrostatic precipitator9. Rotary kiln10. Clinker cooler11. Electrostatic precipitator12. Clinker storage13. Gypsum storage14. Cement mills15. Cement silos

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Extraction of raw materialsChalkAalborg Portland’s chalk quarry is located very close to the plant and covers an area of approx. 475 hectares.

Excavation takes place at three levels. The two upper excavation fronts are each approx. 13 metres high. Deep excavation at the lowest excavation front takes place in the lake, which is approx. 40 metres deep.

The upper excavation fronts are exca-vated using 2 bucket-wheel excavators, each with a capacity of approx. 1,100 tonnes chalk per hour. Deep excava-tion is carried out using a bucket-chain excavator, which has a capacity of 1,000 tonnes chalk per hour. The chalk is trans-ported to the plant on a rubber conveyor belt.

At the current level of production there is sufficient chalk in the area to last well into this century. The chalk is of extremely high quality and has very few impurities. This is one of the reasons why Aalborg Portland can produce white cement of such high quality.

When the available quantity of chalk in the quarry has been exhausted, there are plans to turn the entire quarry into a recreational area with public access. Running re-establishment is carried out and has already begun in areas where excavation no longer takes place. In these areas, the slopes are levelled, top-soil is deposited and bushes and trees planted.

SandSand comes from several areas: Hals Barre, Løgstør Bredning and the Kaas Sand Moor.

The Hals Barre sand is obtained from the dredging of the navigation channel at the entrance to the Limfjord. The sand is sucked up from the seabed using sand dredgers and then transported to the plant’s harbour and pumped into the settling basins. From here, the sand is transported by dumper truck to the sand storage facilities at the sand mills.

The Kaas sand is excavated in the vicinity of Rødhus in Vendsyssel and is then taken by truck to the plant. This is shifting sand, which has a low iron con-tent, and is used in the manufacture of white cement.

Bucket-wheel excavator

Bucket-chain excavator

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Processing the raw materialsThe excavated chalk has a moisture con-tent of up to 29%.

The chalk is transported by conveyor belt to the wash mills at the slurry preparation plant. A wash mill is a huge, rotating steel tube with built-in lifters which ensure effective washing of the chalk. Grinding of the chalk for grey pro-duction is not necessary because of its consistency. Chalk for white production is ground in raw mills. After washing, the chalk slurry is pumped to screens which separate flint particles, etc. The chalk slurry is now ready to be used and can be pumped into a storage basin.

Grinding the sandSand is too coarse by nature to go untreated into the burning processes of the kilns. It must be ground to a finer

consistency, and this is carried out in the sand mills.

The sand mill is a long rotating steel tube with a protective rubber lining. Grinding itself is carried out using steel balls or stones. The sand slurry is mixed with the chalk slurry to become kiln slurry.

Slurry preparation plantAt the slurry preparation plant there are 3 wash mills, 7 sand mills and 2 raw mills. The latter type of mill is used to grind white slurry.

Various types of slurry are produced depending on the type of clinker to be manufactured. The different types of slurry are stored in basins. There are 7 slurry basins on Aalborg Portland’s site ranging from 4,500 m3 to 15,000 m3.

Sand mill

During the manufacturing process, samples of slurry are continuously taken and analysed at the quality control labo-ratory.

The results of the analyses are used to regulate the degree of grinding and the composition of the slurry types.It is crucially important that the slurry has precise and uniform chemical and physical properties.

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FuelsClinker burningBurning clinker requires a great deal of energy. Various types of fuels are used; coal, petcoke and oil. In addition to these fuels, Cem-fuel is used, such as dried sewage sludge, meat and bone meal and various types of waste such as plastic, paper, textiles and bulky waste.Coal is by far the most important energy source. It is imported in various qualities from a number of countries including South Africa, Russia and Poland.

Petcoke is a by-product from oil refin-ing. It is similar to coal in appearance, and is imported from the USA and the Netherlands.

Oil in different qualities is also used. The type of fuel used in the kilns depends mainly on its impact on the environment, the price and the type of clinker produced. In practice, a mixture of different fuels is often used.

Coal and petcoke are ground in the coal mills to a fine, dry powder before being used in the kilns.

Cem-fuel is processed by CemMiljø A/S. With residual products from indus-trial production and waste products from municipal collection systems as basis, a fuel mixture is processed, which is used

Heat recoveryThe flue gases from the white kilns con-tain enormous amounts of energy owing to the high moisture content and high temperature.A plant was commissioned in 1991 which was designed to recycle heat and clean the flue gases. The plant serves the 5 white kilns which produce white cement and is connected to Aalborg’s district heating network. Heat exchangers and so-called scrubbers cool the flue gases from approx. 250ºC to approx. 70ºC before they are emitted into the atmosphere. At the same time, the dis-trict heating water is heated to approx. 90ºC. A great deal of heat is recycled as the plant yields enough heat to supply

about 30,000 houses in the Aalborg area.The scrubbers are located at the bottom of the plant’s chimneys. Chalk slurry is injected into the scrubbers and reacts with the sulphur dioxide (SO2) present in the flue gas to form gypsum. In this way, about 90-92% of the sulphur diox-ide of the flue gases is removed from the flue gases. Water is also produced as the steam in the flue gases condenses.Both water and gypsum are recycled in the production processes. Finally, the scrubbers also act as effective filters as the small amount of dust remaining in the flue gas after passing through the electrostatic precipitator is removed completely.

as an alternative fuel at the manufacture of cement. Waste that may have a nega-tive impact on the cement quality or the environment is not used.

Unloading of coal

Heat recovery plant

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Burning the clinkerWet-process kilnsThe raw materials, slurry (chalk and sand), pyrite ash, oxiton and gypsum are burnt so that the various chemical compounds (oxides) can react with each other to form so-called cement minerals.

Burning takes place in the kilns. There are two types of kilns at the plant: 6 wet-process kilns and 1 semi-wet kiln.

The oldest wet-process kiln is from 1934, and the newest from 1974. A wet-process kiln consists of a very long steel tube. The largest wet-process kiln has a diameter of 6 m and is 180 m long. The kiln has an inclination of a few degrees and rotates on supporting rollers. When the kiln rotates, the raw materials roll down through the hot kiln and are gradu-ally heated. The temperature of the mate-rials reaches approx. 1,450ºC, and the kiln is thus protected and insulated by an interior layer of refractory bricks.

In wet-process kilns the input of slurry and raw materials takes place at the high end of the kiln, and the input of fuel at the lower end.

During the passage through the kiln, a number of physical and chemical proc-esses take place. First of all, the slurry is dried. It is then heated and calcinated, a process in which the chalk gives off carbon dioxide (CaCO3 is converted to CaO and CO2). Finally the raw materials are burnt so that they become cement clinker. The clinker is then cooled in the clinker cooler. The cooling air is led back to the kiln and used as combustion air.

It takes 4-6 hours to burn and convert the raw materials to grey clinker. For white clinker, the process takes 8 hours. The clinker is then transported by drag-chain conveyors or conveyor belts to the storage facilities: clinker store or clinker silos.

Semi-wet kilnThe semi-wet kiln was commissioned in 1988. The same physical and chemical

processes which take place in a wet-proc-ess kiln also take place in a semi-wet kiln. It is constructed so that part of the proc-ess takes place outside the kiln tube in a stationary cyclone system.

Slurry (chalk and sand) is injected and dried to raw meal in 2 drier crushers using hot flue gas from the kiln’s preheater cyclones. At the same time, dry fly ash, pyrite ash, and electrostatic precipitator dust are added.

This raw meal is led by a powerful air current into separator cyclones at the top of the cyclone tower, where the raw mix and flue gas are separated. The flue gases are led back to the electrostatic pre-cipitators where all the dust is removed, whilst the raw meal is fed into the cyclone

preheaters and heated to approx. 750ºC.The heated raw meal is then calcinated

in two calciners in which the temperature is approx. 900ºC. Input of paper sludge takes place in the calciners.

Drying and calcination require a lot of energy. Approximately 2/3 of the fuel consumed is for these purposes. The hot combustion air is obtained from the clinker cooler. The material is led from the calciners to a cyclone, after which the material runs into the rotary kiln. It takes only 30 seconds to heat and calcinate the material.

The material then runs through the rotary kiln. The kiln is relatively short, only 70 metres in length and with a diam-eter of 4.75 metres. The material is gradu-

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ally heated as it moves down through the kiln until it reaches a temperature of 1,450ºC at which burning to the final cement clinker takes place.

After burning, the clinker is cooled to approx. 100-150ºC in a large grate cooler. The manufacture of clinker in a semi-wet kiln only takes about 30 minutes, and cooling time is of a similar duration.

The semi-wet production of clinker has a number of advantages. Less fuel is required than for the wet-process since more dry raw materials are used and the heat of the fuel is better utilised. The plant has a much greater capacity – approx. 5,000 tonnes per day and smaller kiln dimensions. This reduces the risk of damage to the refractory brick lining, and

the heat loss from the surface of the kiln is also significantly reduced. In addition to this, the heat loss to the surroundings is less.

Dust removalThe flue gases which leave the kilns contain dust. Electrostatic precipitators, which are designed to remove as much dust as possible from the flue gases, are therefore installed prior to the emission of the gases through the chimneys.

An electrostatic precipitator consists of a number of metal plates and elec-trodes. There is a DC voltage of 60,000 Volts between the plates and the elec-trodes. When the dust passes through the filter, the dust particles become electri-

cally charged and are therefore attracted to either the plates or the electrodes. The dust is then loosened using an automatic hammer system, after which it falls to the bottom of the filter. It is removed by a screw conveyor and led back to the kiln system.Aalborg Portland installed the first elec-trostatic filter in 1952. The efficiency of a modern electrostatic precipitator is 99.98%.

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Process controlThe entire manufacturing process from the chalk quarry to the storage silos at the harbour is fully automated. The proc-ess is controlled and regulated via com-puter screens and control panels from two central control rooms: CK1 and CK2.

CK1 controls• 5 white kilns• Cement mills• Transport of cement to the storage

silos at the harbour• Transport of raw coal to the coal mills• Coal mils and oil plant• Heat recovery plant• Clinker transport from the clinker store

CK2 controls• Chalk quarry and slurry

preparation plant• 2 grey kilns• Coal mills• Cem-fuel• Fly ash facilities• Clinker transport to clinker store

By means of technologically advanced control systems, operators can start and stop machines, control and regulate proc-

esses, and receive information about the course of the processes and about operat-ing status.

A great deal of information is required in order to control the machines and the course of the process. Each machine is equipped with sensors which constantly measure factors such as temperature, pressure and valve positions. This data is transferred via PLC’s to a process com-puter and from here to control panels or computer screens.

In addition, there is a continuous

flow of information available from the production laboratory about physical and chemical analyses of raw and intermedi-ate materials and the finished product.However, not all machines are controlled from the central control rooms. Excava-tors, compressors and packing machines, etc., are controlled from decentralised control rooms located either on or adja-cent to the machines themselves. In principle, these control panels/screens function in a similar way to the other control panels/screens, but far simpler.

Cement grindingThe millsThe final part of the production process is grinding the clinker to cement.

At Aalborg Portland there are 5 cement mills, each with two ball mills and special machinery. The mills can operate in pairs or individually, depending on the type of cement being produced.

A cement mill is a large rotating steel tube with a protective interior lining of steel plates.

The cement is ground using steel balls, the biggest of which have a diameter of 90 mm and the smallest a diameter of 6 mm.

Some of the cement mills have been equipped with a roller press which is located in front of the cement mill itself. The roller press crushes the clinker and compresses it in “flakes”. This makes grinding in the cement mills much easier and reduces the electricity consumption significantly.

One of the cement mills is equipped with a Sepax separator which enables extremely fine cement to be produced in a very energy-efficient manner.

The finished cement is pumped to the harbour silos using compressed air in so-called fluxo pumps. Cement mill

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About 15% of the cement for the domestic market is sold under the name AALBORG CEMENT.

The packing materials are 5 kg, 25 kg and 40 kg paper bags and 1,500 kg BigBags.

The packing system for grey cement is fully automatic and packs 3,000 - 3,600 bags per hour. The packing machine for white cement is also fully automatic and packs 3,800 bags per hour.

AALBORG CEMENT packed in paper bags is automatically stacked on pallets and covered with a layer of plastic film. The film protects against the elements and secures the bags to the pallet.

DistributionThe various types of finished cement are stored in silos which range in capacity from 500 to 17,000 tonnes. The cement is distributed from the silos to customers both at home and abroad.

Approx. 85% of the cement is dis-tributed in bulk. This is the easiest and cheapest form of transport. The rest is distributed in bags: 5 kg - 1,500 kg.

In order to make the total transport from the cement plant to the Danish customers as cheap as possible, Aalborg Portland has set up terminals around the country. The bulk cement is transported

to these terminals by ship from the plant at Aalborg, and then distributed from the terminals to the customers’ own silos by cement trucks.

Cement for export is primarily trans-ported by chartered cement carriers.

Cement carriersAalborg Portland’s chartered cement carriers are purpose-built for the trans-portation of powered materials, and can be both loaded and unloaded without emission of dust.

PackingAALBORG CEMENT packed in BigBags

is transported without the use of pallets and is used primarily at building sites with automatic concrete mixers.

All AALBORG CEMENT is treated to provide protection against chrome allergy. The substantial packaging ensures that the cement is chromate-neutralised for at least 2 months from the packing date.

Danish building sites are supplied with AALBORG CEMENT via Aalborg Portland’s dealers, which are timber merchants and DIY stores.

The entire conveyor system between the on-shore silos and the ship’s holds is a completely closed system.

Cement trucksAalborg Portland has a fleet of its own and leased cement trucks.These cement trucks transport cement to the customers’ silos. Unloading takes place using compressed air. Our goal is to satisfy the customers’ demands for deliv-ery at the agreed place and time.

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SalesThe primary goals of Sales, Marketing and Technical Advisory Services’ are:

• To offer the customer a uniform product delivered exactly at the time and on the location wanted by the customer.

• To offer technical advisory services helping the customer optimise his production - services that all in all give the customer the best total solu-tion for cement application.

The company’s sales organisationIs divided up into two business seg-ments: Sales of grey cement and sales of white cement. These two business segments are divided up into sales to industry groups on the Danish market and to geographical groups on the export markets.

Grey cementIs primarily sold on the Danish market and a few selected export markets that buy the surplus production. By way of example, the Icelandic market can be mentioned where Aalborg Portland has its own sales and distribution company, whilst other export markets are served through local importers. Grey cement is a business segment characterised by consolidation.

White cementAlthough the white cement has gained a solid foothold on the domestic market, the major part of the white cement is sold on 70 export markets. During late years, Aalborg Portland has established production sites on four continents where the white cement is marketed under the AALBORG WHITE© trade mark. Aalborg Portland has always been

the largest exporter of white cement glo-bally and is today developing into leader worldwide within sales and production of white cement.

Roughly speaking, the iron content is the most essential difference between grey and white cement. The higher iron content, the darker cement. The lower iron content, the lighter cement. So with pure chalk deposits formed from up to 70 million year old fossils, the chalk quarry in Aalborg is ideal for production of white cement.

A uniform product covers most cus-tomers’ requirements, and combined with guarantee of delivery at the right time and place the customers’ basic requirements are met. Technical Advisory Services can answer all questions within the field of cement and concrete, and any conceivable production tests can be car-ried out at our laboratory, thus adding extra value to the product.

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Technical Advisory ServicesIn Denmark, the technical service function is named Technical Advisory Services, and on the export markets the AALBORG WHITE© Marketing Team is the service organ that handles all technical questions related to white cement.

Both technical service organs offer the customers the following services:

• Testing of aggregates• Optimisation of concrete recipes• Testing of new concrete mixtures• Participation in norm and standardisa-

tion work• Updating and publishing of new techni-

cal works within specific concrete fields• Advising about concrete properties,

casting, etc.• Advising about concrete production

methods and techniques• Advising about choice of cement• Advising about hardening and treatment

of concrete surfaces

• Production of inspiring literature describing use of new cement and con-crete applications

• Holding seminars about cement and concrete for customers, contractors, architects, engineers, etc.

The customer’s choice of cementDepends on the actual concrete construc-tion to be made. Generally, cement is clas-sified in low-strength and high-strength cement. All Aalborg Portland’s cement types are high-strength cements and can therefore resist the highest compressions.The other main parameters of choice of cement depend on whether the construc-tion is located on a secure, dry ground or in a moist environment. In the latter case cement with low content of alkali and a high degree of sulphate resistant properties is required. If the customer wants beautiful, aesthetic solutions white cement is the answer. All these types of cement are included in Aalborg Portland’s product programme.

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Types of cement

BASIS® cementStrength class 52.5. A general-purpose cement which can be used within the concrete industry in passive, moderate and aggressive environmental classes. It is based on highly efficient clinker which is burnt in a mineralised process. This results in lower energy consump-tion than traditional burning methods. BASIS® cement contains approx. 14% specially manufactured microfiller, pri-marily consisting of chalk. The finished cement’s energy consumption and CO2 emission is hereby reduced by a further approx. 14%.

BASIS® cement has a high 1-day strength. This is particularly beneficial in the production of concrete elements and concrete articles. BASIS® cement is only sold to industrial customers.

RAPID® cementStrength class 52.5. For a number of spe-cial purposes, the content of microfiller can be a disadvantage. We therefore sell RAPID® cement to customers who, for this reason, do not wish to use BASIS®cement.

Although RAPID® cement does not have BASIS® cement’s particularly high 1-day strength, the strength is high enough for the production of concrete elements and concrete goods.

RAPID® cement is sold in bulk in cement trucks to industrial customers. It is also sold packed in 5 kg, 25 kg and 40 kg bags and in 1,500 kg BigBags under the name RAPID AALBORG CEMENT®.

ABC cementStrength class 52.5. The composition of this cement is exactly as in BASIS® cement. However, due to coarser grind-ing, the early strength is somewhat lower and corresponds to RAPID®cement’s early strength.

ABC cement is sold packed in 25 kg and 40 kg bags and in 1,500 kg BigBags under the name BASIS AALBORG CEMENT®.

MESTER® cementStrength class 42.5. Is particularly well-suited for the production of mortar. It is only sold in 25 kg bags under the name MESTER AALBORG CEMENT®.

LOW ALKALI SULPHATE RESISTANT cementStrength class 42.5. Is a Portland cement with extra low alkali content, high sul-phate resistance and moderate genera-tion of heat. It is used for the casting of constructions which demand a lower risk of deterioration of the concrete as a result of sulphate attack and alkali-silica reactions and a more moderate heat generation. It is also used for large civil engineering works such as road bridges, harbour construction and sewage treat-ment plants, where deterioration of the concrete would otherwise occur.

Low Alkali Sulphate Resistant Cement was purposely developed with a low 1-day strength and low 28-day strength, which means that the concrete exhibits moderate heat generation, this making it ideal for casting large, solid construc-tions.

AALBORG WHITE® cementStrength class 52.5. Is a Portland cement which combines whiteness with the strength of RAPID® cement. AALBORG WHITE® cement has particularly low alkali content. It is also sulphate resist-ant and is used when concrete construc-tions with white and light appearance are required, for instance facade ele-ments and paving stones.

It is also used for a number of special purposes where whiteness is of impor-tance. Its other quality characteristics are similar to those of BASIS® cement and RAPID® cement. The late strengths are, however, higher than for some of the other products.

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Research and developmentResearch and development at Aalborg Portland is carried out by the Research and Development Centre – RDC. This work includes:

Research and development of the properties and applications of Aalborg Portland’s types of cement, cement test-ing and other quality control in Aalborg Portland’s cement production, technical tests for customers, primarily through the Technical Advisory Services and the AALBORG WHITE® Marketing Team, administration of Aalborg Portland’s patents, and management of Aalborg Portland’s quality system.

To carry out these tasks, RDC has a staff of approx. 40 research workers, laboratory assistants, laboratory techni-cians, concrete supervisors and others. The research workers have various types of education, ranging from construc-tional engineers to chemical engineers, analytical chemists and geologists. Sev-eral of these have a PhD-degree.

RDCHas advanced equipment at its disposal for tests within any field of application for Aalborg Portland’s types of cement. The Centre includes the following labo-ratories:

Concrete laboratoryWith equipment for casting and testing of fresh and hardened concrete.

Mortar laboratoryWhere quality control of the cement in respect of strength, setting time, etc. is made.

Special mortar laboratoryWith methods for analysing dry mortars (plaster mortar, tile cement, cement paint, etc.).

Gravel laboratoryWhere the properties of aggregates are tested.

Mineralogical laboratoryWith equipment to test concrete composi-tion and micro structure (among others electron microscoping and X-ray analysis) and laboratory kilns for production of cement.

Chemical laboratoryWith equipment for carrying out chemical analyses of cement, concrete and related materials.

RDC is in contact with universities, technological service centres and com-panies both in Denmark and abroad and is involved in international research and development work within the field of cement and concrete. The centre is also actively engaged in the development of international norms and standards.

RDC’s goalsIt is RDC’s goal to be the world’s leading centre of research and development within the field of white cement and yield the best possible support for our “grey and white” cement customers both in Denmark and abroad. With more than 25 years’ experience in research and development within the field of cement and concrete, RDC has a broad technological knowledge of all aspects for application of cement and concrete. RDC constantly endeavours to be at the cutting edge of laboratory facilities, testing methods and theoretical know-ledge. Therefore, instruments and methods are continuously being purchased, devel-oped and improved, just as all employees are continuously receiving supplementary training.

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EnvironmentWhen manufacturing cement, we use energy, raw materials and water, and we emit flue gases, waste materials and waste water, which has an impact on the environment. Aalborg Portland makes serious efforts to minimise the impact on both the external environment and the working environment. The efforts were started at the end of the 1950s with establishment of the first electro-static precipitators for removing dust from the flue gases.

At the end of the 1970s, an environ-mental department and health service were established at Aalborg Portland - today combined in the department of Environment/Health Service. Through the years, many resources have been spent on examinations, surveys and action plans which has resulted in improvements of both the environment and the working environment.

Environmental visionIt is Aalborg Portland’s aim to be a responsible company with activities that promote sustainable development.

Environmental policy and goalsAn environmental policy has been formu-lated including goals of how the policy

is pursued at the daily work. By pursuing this policy, we ensure among others that emissions and consumption of energy are reduced, that cleaner technology is developed and used to the extent possi-ble and that the employees can perform their work in the best possible working environment.

Based on this policy, an environmen-tal, energy and working environmental management system has been built up meeting the requirements of the envi-ronmental standard ISO 14001, EMAS and the Danish Energy Agency’s requirements on energy management and OHSAS 18001 and the Danish Ministry of Employment’s Executive Order No. 923 concerning the working environment. The company’s environmental system was certified by Danish Standards Association in 1998 and recertified in 2001 for a new three-year period. In 2002, the working envi-ronment was certified too. The system is an integrated part of the quality man-agement system, cf. page 24.

Measurements and control of the environmental measuresRegular control is carried out to ensure that we respect the existing approv-als and rules. The department of

Environment/Health Service carries out manual noise measurements, dust meas-urements and other working environmen-tal measurements.

OPSIS-meters continuously moni-tor the flue gases of the seven kilns in respect of content of sulphur dioxide (SO2), nitric oxides (NOx), carbon mon-oxide (CO), mercury (Hg), hydrochloric acid (HCL) and hydrogen fluoride (HF). This monitoring measures the impact on the surroundings, thus securing that the stipulations of our environmental approvals are respected. We regularly report the measuring results to the county authorities of North Jutland.

In accordance with the certified management system, Danish Standards Association annually carries out an audit to ensure that continuous improvements, among others within the fields of envi-ronment, energy and working environ-ment, are being made.

Working environmentThrough the years, Aalborg Portland has carried out many improvements of the working environment, thus promoting health at work in the best possible way. Initiatives in respect of health promo-tion and the inclusive labour market

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have been incorporated in the human resource policy. The employees draw up workplace studies.

Safety instructions in respect of clean-ing, repair and maintenance tasks have been drawn up. Chemical data sheets covering all materials have been drawn up. These tools ensure that the daily tasks can be carried out in a responsi-ble way both in relation to safety and health.

Since 1988, internal environmental and safety inspections have been carried out in all departments both in produc-tion and administration. The object of these inspections is to evaluate risks and make proposals for improvements not taken into account by the workplace studies.

Challenge in the field of envi-ronment and energyThe challenge to Aalborg Portland is continuous reduction of the environ-mental impacts. Many years’ efforts have achieved good results, such as introduction of energy saving technol-ogy, increased use of recycled materials such as fly ash from the power stations, noise abatement and purifying measures – e.g. removal of SO2 and dust from the flue gases. Focus on these fields will continue.

Alternative fuels – an opportunity Industrial residuals and waste, such as e.g. bulky waste, meat and bone meal and dried sewage sludge, are increasingly being used as fuels. By doing so, Aalborg Portland meets a social need of dispos-

ing of waste in a responsible way. At the same time, we reduce our consumption of coal, petcoke and oil, thus reducing our CO2 emission. The alternative fuels are CO2-neutral. Aalborg Portland is working on substituting still larger quantities of fossil fuels by alternative fuels. Within few years, it is our goal to substitute 40% of the fuels in grey production by alternative fuels.

Environmental ReportAalborg Portland’s statement of con-sumption and emissions and also working environment is described in the annual Environmental Report. This report describes the action programme and comments on the performance. The Environmental Report can be read and ordered at our homepage www.aalborg-portland.dk.

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QualityAt Aalborg Portland the quality manage-ment process starts on the strategic level, thus ensuring connection between strategy and the company’s aims and goals. The system and the individual employees’ workday reflect this connec-tion.

The purpose of Aalborg Portland’s quality and environmental management system is to support the company’s processes, thereby increasing customer satisfaction and continuously improving the company’s efficiency.

As requirements and expectations are changing in course of time a culture has been created ensuring that Aal-borg Portland constantly produces the right quality. To be able to comply with requirements and expectations, the man-agement system sets a code of practice to customer-focused quality control in connection with product development, in-/outsourcing, purchasing, production,

logistics and sales and customer service.The integrated system includes all

processes at Aalborg Portland. The cen-tral quality function is the driving force behind the system with belonging tech-niques and methods. These techniques and methods are non-centrally developed and used with a wide ownership in the company and must at any time match the customers’ requirements and expecta-tions.

The system is certified according to DS/EN ISO 9002:1994 and DS/EN ISO 14001:1994. A process of conversion – so that the system lives up to the requirements of DS/EN ISO 9001:2000 – was launched in September 2002 and is expected to be finished in the form of a recertification at the end of 2003.

The company’s products are certified according to EN 197-1/-2:2000.

Aalborg Portland A/S

Rørdalsvej 44P.O. Box 165DK-9100 Aalborg

Telephone +45 98 16 77 77Telefax +45 98 10 11 86

E-mail: cement@aalborg-portland.dkwww.aalborg-portland.dkwww.AalborgWhite.com

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