Today, Buzzi Unicem has executed the agreement which was signed with Grupo Ricardo Brennand on 6 September 2018 and disclosed to the market on the same date. In particular, Buzzi Unicem has purchased 50% of BCPAR SA, acquiring the totality of the shares held by the current minority shareholders (BNDESPAR and FIP MPlus), a part of the shares held by Brennand Cimentos, and underwriting a dedicated capital increase of the same company BCPAR SA. Grupo Ricardo Brennand and Buzzi Unicem have also signed the shareholders' agreement which was already described in the press release dated 6 September 2018 and providing for the governance of the joint venture BCPAR SA as well as the Put option (exercisable from 1 January 2023) and Call option (exercisable from 1 January 2025) referring to the residual ownership interest by Brennand Cimentos.

The cash outlay of R$700 million (of which R$350 million for the share purchase and R$350 million for the capital increase), corresponding to approximately €160 million, has occurred at the same time as the purchase of the shares.

Company contacts:
Investor Relations Assistant
Ileana Colla
Tel. +39 0142 416 404
E-mail: icolla@buzziunicem.it

Buzzi Unicem and the University of Eastern Piedmont (UPO) at Vercelli have entered a 9-year agreement to broaden their knowledge and collaborate on the development of innovative materials and solutions for construction of the future. During the period of the partnership, our company will set up laboratories on the modern UPO campus in Vercelli to conduct R&D and chemical, physical and instrumental analyses in a dynamic and stimulating environment, and thus also contribute to the cultural and scientific growth of the students and teaching staff. Buzzi Unicem will provide funding for a fixed-term research position and a scholarship for a three-year doctoral research program.
The goal of the partnership is to leverage the synergies between the basic academic research and its industrial application. UPO will also be able to expand its materials science and technology educational programs by offering students and researchers work and study experiences within a business context through an agreement with Buzzi Unicem to engage undergraduates and young graduates in internships.

Last September Buzzi Unicem joined the Global Cement and Concrete Association (GCCA). 
Founded in early 2018, the association currently includes among its membership 16 leading companies in the cement and concrete production sector, representing over 30% of the global production capacity. 

GCCA’s mission is to interact with international institutions and the major stakeholders to ensure that cement and concrete are recognized as essential elements in achieving the objectives of sustainable development, and to coordinate the efforts of the building industry to improve and innovate its production processes. 
Needless to say, GCCA is working closely with the national and regional associations already in existence. The US-based Portland Cement Association (PCA) was the first to join the association.

The Buzzi Unicem manufacturing facilities in Chattanooga (Tennessee), Festus (Missouri), Maryneal (Texas) and San Antonio (Texas)  have earned 2018 ENERGY STAR® certifications from the US Environmental Protection Agency (EPA), recognizing their superior energy performance among similar facilities in the industry.
The ENERGY STAR® program focuses on strategic energy management and emphasizes the importance of demonstrating environmental leadership for future generations.  Receipt of the ENERGY STAR certification means these plants perform in the top 25 percent of similar facilities in the US.
This is the tenth consecutive year that some Buzzi Unicem facilities have earned the ENERGY STAR recognition and achieved this noteworthy certification.  In meeting these strict qualifications, these facilities are saving energy, conserving resources and helping protect the environment by using less energy than peer facilities.

Today (CEST) Buzzi Unicem has signed an agreement with Grupo Ricardo Brennand aimed at acquiring 50% of BCPAR SA, a subsidiary of Brennand Cimentos and on its turn owner, among other things, of two full-cycle cement plants operating in Brazil, one in the North-East region of the country (state of Paraíba) and the other in the South-East (state of Minas Gerais).
The agreement provides Buzzi Unicem to reach a 50% stake in BCPAR SA after acquiring the totality of the shares held by the current minority shareholders, BNDESPAR and FIP MPlus, besides a part of the shares owned by Brennand Cimentos as well as the underwriting of a dedicated capital increase of the same company BCPAR SA.
This first step entails an outlay by Buzzi Unicem of R$700 million (of which R$350 million for the share purchase and R$350 million for the capital increase) corresponding to approximately €150 million. The initial phase will be funded through cash and existing credit facilities.
The acquisition is backed by the usual guarantees issued for similar transactions, which are granted by Brennand Cimentos and referred to 50% of BCPAR SA share capital, i.e. to the stake acquired by Buzzi Unicem.
A shareholders’ agreement will be signed between Grupo Ricardo Brennand and Buzzi Unicem providing for the co-control management rules of the joint venture BCPAR SA, on the basis of an equal participation in the board of directors and the shareholders' meeting. The shareholders' agreement also entails a Put option (exercisable from 1 January 2023) and a Call option (exercisable from 1 January 2025) referring to the residual ownership interest by Brennand Cimentos which, if exercised, will determine the acquisition by Buzzi Unicem of the remaining 50% of BCPAR SA. The exercise price of the options will be established on the basis of the consolidated average Ebitda achieved by BCPAR SA during the three years before the exercise of the option, taking into account the net financial position. The minimum exercise price of the options is equal to US$250 million, to which the corresponding portion (50%) of the net financial position at the time of purchase must be added or deducted. The strike is the same in case of either Put or Call. The completion of the 100% acquisition, if the options are exercised, will occur no later than 2026.

The closing of the transaction is subject, inter alia, to the approval of some current lenders of BCPAR SA, provided for by the related loan agreements in which BCPAR itself or its subsidiaries are the borrowers. It is deemed that the closing can take place by 31 December 2018. The acquisition of the remaining 50% of BCPAR SA under the Put or Call will be subject to approval of the Brazilian antitrust authority (CADE).

The cement plant located in Minas Gerais (municipality of Sete Lagoas) started operations in May 2011 and has an annual production capacity of 1.2 million tons of clinker and 2.4 million tons of cement, while the annual production capacity of the Paraíba plant (municipality of Pitimbu), commissioned in August 2015, is equal to 1.4 million tons of clinker and 1.7 million tons of cement.
Consolidated net sales of BCPAR SA in 2017 amounted to R$538 million for a consolidated Ebitda of R$88 million. Cement sales in 2017 totalled 2.7 million tons, of which 1.7 million in the South-East and 1.0 million in the North-East of Brazil. Net debt of BCPAR SA as at 31 December 2017 stood at R$821 million.

The agreement reached allows Buzzi Unicem to extend its industrial operations to the largest economy in South America and contributes to improve the geographical diversification of its regional presence. Buzzi Unicem believes that the current downturn in the Brazilian economy, and in particular of the local cement industry, can be positively resolved starting from 2019. Total cement consumption in Brazil reached its peak in 2014 with 71.7 million tons, while in 2017 domestic consumption amounted to 53.8 million tons. The prevailing expectation is that in 2018 the market performs at a level consistent with 2017. The per capita cement consumption decreased from 350 kg in 2015 to 260 kg in 2017.
Brazil's key macroeconomic data concerning cement production are encouraging: population is expected to grow at an average annual rate of 1.1% and per capita cement consumption is currently at its lowest levels in years.

Company contacts:
Investor Relations Assistant
Ileana Colla
Phone. +39 0142 416 404
Email: icolla@buzziunicem.it

On 1 July 2018, the merger of Cementizillo SpA and Cementeria di Monselice SpA into Buzzi Unicem has become effective.
About 1 year ago, Buzzi Unicem acquired full ownership of the Zillo group, a historic industrial group founded in 1882 by the Zillo family of Monte Xillo, taking over the cement division (2 integrated cement plants) and concrete division (about 40 batching plants), operating in North-East Italy.

Located in the province of Pordenone, the Fanna Plant is a state-of-the-art facility with efficient thermal and electrical systems, a high level of automation (Siemens PCS7), a permit to use alternative fuels, and a kiln capacity of about 2,200 tons/day. The Company benefits from a  large quantity of good quality raw material reserves located a few kilometers from the cement plant.
The Monselice Plant is located in the province of Padova and with about 1,900 tons/day it has a slightly lower capacity than Fanna, but it is just as efficient. The plant is well organized and clean, has a very stable kiln operation, and produces excellent clinker of consistent quality. For several years it had the distinction of being the first plant in Italy to use Selective Catalyst Reduction (SCR) technology to reduce NOx emissions. The raw materials for this plant come from a greater distance, but still at competitive cost and of excellent quality.
Almost 450,000 m3 of ready-mix concrete were sold in 2017, including approximately 60,000 m3 through associated companies. The batching plants mainly cover three different markets: the central and coastal regions of Friuli-Venezia Giulia, the "motorway" section between Brescia and Verona in Lombardy, besides a few plants between Mantova and Parma.
In 2017 the Zillo group sold almost 900,000 tons of cement and over 250,000 tons of clinker. Produced at the two plants at optimized costs, logistics and customer service, these quantities were reached using more than 70% of the total clinker production capacity, which is among the highest rate in the sector in Italy.

Buzzi Unicem celebrated the 50th anniversary of the YUGcement plant on 25 May, with company employees, the management of Dyckerhoff Ukraine, partner companies, YUGcement customers and suppliers, as well as subcontractors and regional representatives from state authorities in attendance.
Andriy Navrotskiy, director of the YUGcement plant, and Sergiy Dudzianiy, country manager Ukraine, warmly welcomed all the guests. The employees and visitors were also welcomed by Paolo Zelano and Gigi Buzzi, representing the group’s management and shareholders.
Pavlo Katschur and Roman Skilski, president and director of the Ukrcement association, highlighted the huge contribution made by YUGcement to the growth of the Ukrainian cement industry.
YUGcement is not only an important business in the Mykolajiw area but also plays a prominent role within the social sphere, providing constant support to the local community, schools, kindergartens, charitable organizations, churches and many other institutions. The company funds numerous projects, including the construction of the Olshanske school, sponsors the kite festivals and supports various voluntary associations.
Appreciation for these programs also came from Alla Worobjowa, a representative from the provincial administration, and Andriy Krotow, deputy mayor of Mykolajiw.

These first 50 years represent an important stage in the history of the cement plant: a period full of events, achievements, experiences and collaborations with skilled people. YUGcement is the result of the union between Italian creativity, German quality and Ukrainian performance.

The Portland Cement Association (PCA), founded in 1916, is the premier organization serving America's cement manufacturers. The Association promotes safety, sustainability, and innovation in all aspects of construction, fosters continuous improvement in cement manufacturing and distribution, and generally promotes economic growth and sound infrastructure investment.

The annual PCA Chairman's Safety Performance Awards recognize outstanding safety performance in the manufacturing of Portland cement. A  total of 9 winners were selected from nearly 100 cement facilities across the US found to be the highest performers in safety in 2017.

For the second year in a row, the Chattanooga plant was honored with this award in the 227,001 to 289,000 man-hours category, having completed 2017 without any reportable accidents.The San Antonio plant received the award in the same category, also having completed 2017 without any reportable accidents.

The goal of the Cleanker (Clean clinker production by calcium looping process) project is to determine whether the carbon dioxide generated during the cement production cycle can be “captured” to prevent it from being released into the atmosphere, and so ultimately to help limit the greenhouse effect.
The research is being funded by Horizon 2020 (H2020), the 7-year Framework Program (2014-2020) through which the European Commission supports the most promising research, innovation and technology transfer activities in Europe.
The initiative, which involves 12 European and one Chinese partners, is coordinated by LEAP (Energy and Environment Laboratory Piacenza), a consortium operating in the energy and environment sector and supported by the Polytechnic Institute of Milan, the Catholic University of Milan and local authorities within the Piacenza region.   
The project was launched on 1 October 2017 and Buzzi Unicem’s Vernasca plant will host the world’s very first pilot system which is in an advanced state of design. The system will allow to test and validate the Calcium Looping (CaL) technology within the cement sector.
All the parties involved are optimistic. This project will very likely have a significant impact in the global cement sector with a reduction in CO2 emissions and the achievement of the ambitious European objectives established by the Paris agreement (COP21).
For further information, please see www.cleanker.eu

On 30 January 2018, Buzzi Unicem renewed the quality management system certification for the company headquarters in Casale Monferrato and its production sites (Augusta, Barletta, Guidonia, Robilante, Settimello, Siniscola, Trino and Vernasca).
The certificate was issued by ICMQ in accordance with the UNI EN ISO 9001:2015 standard more than six months earlier than the required deadline (September 2018).
The work done during 2017 to adapt to the new standard was extensive: the risk-based thinking approach led us to prepare a more flexible and streamlined quality manual and to revise several operational procedures in alignment with the requirements of ISO 9001:2015, such as: defining the context of the organization, identifying the parties involved and understanding their interests, analyzing and evaluating the risks, and managing change from the perspective of continuous improvement. 

Yesterday, the management of Dyckerhoff GmbH informed the workers’ council and the employees of Seibel & Söhne about the future plans regarding the Erwitte plant.
The acquisition of Seibel & Söhne will strengthen Dyckerhoff’s position in the German cement market. The current intention of Dyckerhoff is the discontinuation of the clinker and cement production in Erwitte during the course of 2019. The production will be taken over by the existing Dyckerhoff plants in order to achieve necessary efficiency improvements. Thus, the production will be absorbed by plants with modern process and environmental technology.
The precise timing of those planned changes will be communicated by Dyckerhoff in time and with sufficient notice. Cement supply to customers at the Seibel & Söhne plant in Erwitte will be continued in the meantime.
128 employees are currently employed at the plant site. Dirk Beese, Managing Director of Dyckerhoff GmbH: “We will substantiate our plans for the discontinuation of the plant production soon to enter into the respective discussions with the workers’ council. We are aiming for a fair and socially responsible solution for the employees concerned.”
Dyckerhoff GmbH is operating 7 cement plants in Germany, thereof 2 grinding plants and 110 ready-mixed concrete plants.

The Bundeskartellamt (German Federal Cartel Authority) cleared on 5 April 2018 the acquisition of all shares in Portland Zementwerke Seibel & Söhne GmbH & Co. KG by Dyckerhoff GmbH.
Seibel & Söhne is operating a cement plant in Erwitte, North Rhine-Westphalia. Dyckerhoff is represented in the region with two cement plants, in Geseke and in Lengerich. The completion of the transfer of shares will become effective within the next days.

On 2 March, Unical and the INGENIO firm organized a conference on the new Technical Standards for Construction (NTC) 2018 in Turin.
Sponsored by the National Association of Building Contractors of Turin (ANCE) and the Order of Engineers of Turin, the event opened with a message of greetings from Antonio Mattio, president of ANCE Turin, and Giulio Ramo Vaudano and Alessio Toneguzzo of the Order of Engineers of Turin.
During the first part of the conference, Eng. Giovanni Cardinale, one of the creators of the NTC 2018, commented on the new regulations, followed by Prof. Francesco Biasioli who focused briefly on the importance of specifications and control in the world of concrete. Lastly, Unical reported on the new “concrete structure charts”: detailed technical instructions on how to build the main structural components. The “concrete structure charts” are also aimed at professionals and companies to help guide them in choosing the most suitable materials and provide instructions on how to correctly manage deliveries on site.
During the second half of the conference, producers, builders and designers tackled the topic of collaboration, which is essential to ensure that an effective project can also result in a job well done. The meeting concluded in the evening to the full satisfaction of all the participants.

The Council for the Promotion of the Artistic and Cultural Heritage of Turin celebrated its 30th anniversary in December 2017, thanking its sponsoring firms, including Buzzi Unicem, with a commemorative plaque and a lithograph.
Thanks to the continuous support of its sponsoring companies, the Council has worked hard over the last 30 years to bring about an artistic and cultural renaissance of the city, its greater metropolitan area and, more recently, also several sites outside the province.
Countless activities have taken place in the city, which have led to the restoration and promotion of various historic buildings, churches and monuments. These efforts have also been extended to the greater metropolitan area with works continuing at the Savoy residences of Stupinigi and Venaria Reale.

A couple of years ago, the Council turned its attention to a monument of industrial archeology located in Casale Monferrato, namely a clinker storage shed from 1938 known as the Paraboloid. This reinforced concrete building is the only remaining structure of the old cement plant that was located near the Citadella. The Council has initiated field surveys, commissioning an analytical metric survey of the underground areas of the building from the Department of Architecture and Design of the Polytechnic of Turin. The data will allow a detailed analysis of the structure and an understanding of what will need to be done to restore and develop the old storage shed. Once it has been properly transformed and repurposed, the building could become a resource for the city.