tongyang cement energy tongyang cement & energy is renowned as a pioneer of the cement industry...

TONGYANGCEMENT&ENERGY

2

Contents CEO’S MESSAGE

HISTORY

THE STATUS QUO

VISION

BUSINESS

/Manufacturing

/Technology &Quality Management

/Environmental Management

/Marketing & Sales

PRODUCTS

AFFILIATES

04

06

08

10

12

20

21

TONGYANG Cement & Energy is renowned as a pioneer of the cement industry in Korea. De-voted to the field for over 50 years, we have been at the forefront of the industrialization and modernization of Korea, and are now paving the way to sustainable development that appreci-ates the importance of ecological conservation.

Since its establishment in 1957 with just 80,000 tons of cement production capacity each year, TONGYANG Cement & Energy has grown into a world-class organization, boasting 11 million tons of annual cement production capacity. In 2007, the company reached a major milestone, as accumulated production at the single unit cement plant at Samcheok passed 200 million tons. We at TONGYANG Cement & Energy, as the only independent Korean-based company of this type, are justifiably proud of this achievement in the face of fierce competition from multi-nationals.

Thanks to its geographical position, TONGYANG Cement & Energy has been able to take full advantage of the export market, and despite the current global recession, shipped over 2 mil-lion tons of cement in 2010. Our main markets include Japan and the USA, where shipments are continually increasing thanks to our cost efficiency & high levels of quality control.

To achieve our goal of sustainable development, TONGYANG Cement & Energy is now focusing on Econergy(Ecology & Energy) as a key area of our business as we build for the future. In 2010, the company also merged with Golden Oil Corp, a company that explores for and produces oil, gas, and minerals.

Throughout these new activities, TONGYANG Cement & Energy remains committed to meeting the challenges of building a brighter future, which we can enjoy together with our customers and society as a whole. Thank you.

CEO’S MESSAGE

TONGYANG Cement&Energy Corp.

Tong Yang Cement Industrial Co., Ltd. is founded

(Annual production: 80,000 tons)

1st expansion(Annual production: 180,000 tons)

2nd expansion(Annual production: 380,000 tons)

3rd expansion(Annual production: 1,000,000 tons)

4th expansion(Annual production: 3,000,000 tons)

IPO Busan Plant starts operation


Donghae Plant starts operation

Bunker C oil is replaced with bituminous coal to cope with energy crisis

Winners of 3.1 Cultural Award for the above replacement

Renamed Tong Yang Cement Corporation


1957

1959196119671975197619781979198019811985

COMPANY HISTORY

5



Beijing Business Office opens in China

The company’s total accumulated production amount reaches

100 million tons Gwangyang Slag Cement Plant starts operation.

Awarded ISO 9001 Certificate in cement industry

Awarded ISO 14001 Certificate in environment management

Winners of President’s Award for Facility Management

in the National Quality Management Competition

Winners of Enterprise Value Award from Korea Management

Association. Winners of Green Energy Award from Korean

Federation for Environmental Movement. Winners of Company

Innovation Award from Ministry of Commerce, Industry and Energy

Winners of Economic Justice Award from Citizens’ Coalition

for Economic Justice

Winners of Export Tower Prize for achieving $20 million of exports

Winners of Best Workplace Award among large enterprises section

from Korean Employers Federation

Merged with Tong Yang Major Corporation

Renamed Cement Division of Tong Yang Major Corporation

Separated from Tong Yang Major Corporation

Renamed Tong Yang Cement Corporation

Tong Yang Major Corporation acquires equity of Tong Yang Cement

Corporation from Lafarge Halla Holdings Ltd.

Tong Yang Cement Corporation is awarded the Gold Tower Order

of Industrial Service Merit

The company’s total accumulated production amount reaches

200 million tons

Investment agreement with Samcheok city to develop rail bike and

sightseeing gondola from new tourism resources

Merged with Golden Oil Corp

Renamed TONGYANG Cement & Energy Corporation

19901993

1995

19961997

1998

1999

2000

2002

2003

2006

2007

2008

2010


Creating value, leveraged by our passion for excellence

THE STATUS QUO

7

A World-Class Company Equipped to compete in the Global Marketplace

Since its establishment in 1957, TONGYANG Cement & Energy Corp. has consistently been at the forefront of the cement in-dustry.

TONGYANG Cement & Energy Corp. now has an annual pro-duction capacity of 11 million tons, and provides customers across Korea with high-quality cement, manufactured from only the finest materials. High capacity cement silos and bulk carriers also provide us with a competitive advantage when exporting to regions such as Japan, the USA and Africa.

TONGYANG Cement Corporation continues to lead the way well into the 21st Century, through a new management para-digm which considers quality more important than quantity.


Global growth in our Cement, Energy, and Mineral resource divisions, without harming the environment

VISION

9

Creating value, leveraged by our passion for excellence

Passion • Creativity • ChallengeAn enthusiastic approach to every aspect of one’s job.New ways of thinking can lead to key improvements and additions to our products and services.A determination to set high goals and successfully meet every challenge.

We are creating best value with state-of-the-art technology and competi-tive power under changing market circumstances.

For customersThe best products

and services

For employeesA pleasantworkplace

For the communityA responsible

corporatecitizen

Passion for Excellence

Creating Value, leveraged by our passion

for excellence

Creation of Value

Passion for Excellence

Sharing

Value

Core

Purpose

The Best Quality from The Best Materials and The Best Facilities

Manufacturing BUSINESS

11

ManufacturingFirst-Rate Productswith Fully Automated Systems

(Unit : kilo tons)

Samcheok Plant, TONGYANG Cement & Energy Corp.’s world-class single unit plant, is equipped with seven NSP(New Sus-pension Preheater)-type kilns that are fully automated, and mills with productivity of 560 tons per hour. It has manufac-tured high-grade cement that meets ASTM (American Society for Testing and Materials) Standards, and exported over 1.5 million tons of cement per annum to the United States, Japan, and other countries.

TONGYANG Cement & Energy Corp. has developed a new mine, which contains 300 million tons of limestone, to cre-ate a stable route for raw materials that will last for more than 30 years. In order to collect high quality limestone in an en-vironmentally-friendly manner, TONGYANG Cement & Energy Corporation has adopted the “glory hole” mining method. In particular, we also have tried to cut back on costs by making use of waste, left behind after making pig iron in steel mills or power stations, for materials or secondary materials.

Slag cement is a mixture of cement and slag, a byproduct of manufacturing pig iron. First manufactured in 1995, slag cement has been widely used in building dams, roads, rail-ways, bridges, and tunnels, thanks to its excellent long-term strength, thermal resistance, erosion resistance, and low per-meability. Our slag cement has gained recognition as an envi-ronmentally-friendly product, because it is successfully recy-cled from industrial wastes.

In addition, TONGYANG Cement & Energy Corp. has contrib-uted to the development of the nation’s architectural engi-neering through the production and sale of various special-purpose cements. These include low-heat cement, which prevents cracks caused by hydration heat, and Sigma 1000, which is an admixture designed to enhance the strength of concrete products.

ProductionFacilities

ClinkerAnnual Production Capacity

Cement Slag Cement

Samcheok Plant 10,045 10,090 -

Donghae Plant - 1,346 -

Gwangyang Slag Cement Plant - - 1,200

Busan Slag Cement Plant - - 800

Total 10,045 11,436 2,000


TONGYANG Cement’s competitive edge lies in its globally recognized quality and service.

Technology and Quality Management BUSINESS

13

Operation of Cutting Edge Technology and Quality Management System

TONGYANG Cement & Energy Corp. uses cutting edge automat-ic monitoring and control facilities, together with a statistical quality management system to ensure consistent quality. The company produces cement products with high fluidity, ensur-ing that they meet the highest standards by minimizing qual-ity deviation through automatic sample selection analysis, and carrying out process control based on the results. TONGYANG Cement has contributed to consumer-centered management activities by producing and supplying products that meet the needs of customers, using technology accumulated over 50 years, and over 350 items of state-of-the-art research equip-ment. In particular, the company has developed a summer season cement quality support system, enabling it to swiftly re-spond to customers’ needs through quality monitoring. We gained a cement quality assessment license from the Min-istry of Construction of Japan in 1995, based on our advanced testing technology, and now export over 200,000 tons of ce-ment annually to the Japanese market. In addition, we acquired a patent related to “low alkali cement production technology,” and export more than 1 million tons of cement to the U.S. mar-ket. We also acquired the LIP (Laboratory Inspection Program) certificate from the CCRL (Cement & Concrete Reference Labo-ratory) of NIST (National Institute of Standards and Technology) under the U.S. Department of Commerce in 1999, a first for an Asian cement company. To achieve this, we had to pass the strict environmental and technological standards set by ASTM (Amer-ican Society for Testing and Materials). The TONGYANG Cement Technology Research Center was founded in 1991 on the principle that national and corporate competitiveness can only be achieved through technological development. The Center has engaged in comprehensive R&D activities, including improving cement processing by develop-ing production technologies and next generation construction materials such as special cement and special concrete. It has also helped raise the functionality and performance of various materials, including new materials, and is currently stepping up research into practical applications to help us maintain our posi-tion as a leading cement company.


Environmental Management BUSINESS

Environmentally-Friendly Industry through Development of Environ-mental Technology

15

Environmentally-Friendly Industry for Future Generations

To achieve sustainable development, we have focused on managing the environmental impacts of our plant operation.

Resource recycling Operation of waste heat recovery power plantThe waste heat recovery power plant uses wasted hot gas pro-duced in the cement production process for power genera-tion. The power plant contributes to environmental conserva-tion through reduction of carbon dioxide.

Air pollution management TMS (Tele-Monitoring System)We thoroughly control the levels of dust and nitric oxide emitted by our plants by using a TMS monitoring system and sharing data with the relevant government offices to ensure minimization of pollutants. We are also conscious of our re-sponsibilities to local communities, and have worked hard to develop environmentally-friendly relationships.

Water quality management Zero discharge waste water systemOur Samcheok plant operates a zero discharge waste water system that reuses all waste water through the recycling proc-ess of sedimentation, filtering, and dehydration, in an effort to prevent any impurities from entering the water table.

Waste management Working to reduce wasteWe recycle byproducts generated from semiconductors, the iron & steel industry, and power plants as raw materials for ce-ment production. We also utilize used tires and combustible wastes for fuel, reducing the need to import bituminous coals.


Efficient Supplies of Products through Highly Developed Logistics

Distribution BUSINESS

Advanced Distribution Network

TONGYANG Cement & Energy Corp. has an efficient nation-wide network of distribution terminals.

In terms of marine transportation, we use our own vessels to deliver 8 million tons of cement to the local building materi-als market each year. There are 10 coastal distribution bases at Incheon, Busan, Ulsan, Pohang, Changwon, Geoje, Mokpo, Gwangyang, Jeju, Gunsan, and 9 inland distribution bases for the inland and metropolitan areas. Most building materials for exports are shipped from Samche-ok Port and Donghae Port, the neighboring ports of produc-tion sites.

➊ Samcheok

➋ Donghae

➌ Incheon

➍ Seongbuk

➎ Bukok

➏ Busan

➐ Changwon

➑ Jinju

➒ Geoje

➓ Gimhae

� Ulsan

� Pohang

� Gwangju

� Jeju

� Mokpo

� Gwangyang

� Daejeon

� Gunsan

� Doan

➊

➋

➌

➍

➎

➏➐

➑➓

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Category Quality Criteria Demands

Korea

Ordinary Portland Cement KS L 5201 General use General civil engineering and concrete works

Moderate Heat of Hydration Portland Cement KS L 5201 For dam, tunnel and road paving

Construction of mass concrete structures

High Early Strength Portland Cement KS L 5201 Secondary products

(Concrete railroad ties, bridge PC beams)

Low Heat of Hydration Portland Cement KS L 5201 Mass concrete, dam work, and LNG work

High Sulfate Resistance Portland Cement KS L 5201 For soil zones with sulphate in sewage and

waste water treatment plants

Portland Blast-Furnace Slag Cement KS L 5210

Coastal, harbor, and seawater works Subway, tunnel, and waterworks and sewage facilitiesGeneral civil engineering works

Ground Granulated Blast-Furnace Slag KS F 2563 For manufacturing blast-furnace cement Used

when mixing cement by using a ready-mix truck

Low Heat Cement Blended special cement Construction of large-scale concrete structures Construction of bridges and marine structures

USA ASTM TYPE I/II ASTM criteria and customers’ requirements Exported to USA

Japan JIS R 5210 JIS criteria and customers’ requirements Exported to Japan

Other Countries Clinker Clinker size, etc. Exported to South America, Africa,

Southeast Asia, etc

KHNP Nuclear Energy Cement KHNP’s quality criteria Construction of KHNP’s nuclear power plants(Sinkori, Sinwolsung, Sinuljin)

PRODUCTS

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AFFILIATES

TONGYANG Asset & DevelopmentSignature Tower, Cheongyecheon-ro 100, Jung-gu, Seoul, Korea 100-230T. 82-2-3770-2969 ㅣ F. 82-2-3770-3130

TONGYANG TSJayoumooyeok2gil 45, Gunsan-si, Jeonrabuk-do, Korea 573-540T. 82-63-730-0001 ㅣ F. 82-63-471-8066

TONGYANG Life ScienceTONGYANG Bldg., Unjoo-ro 729, Gangnam-gu, Seoul, Korea 135-995T. 82-2-6923-0000 ㅣ F. 82-2-6923-0077

Geumjin BiotechGangneung Science Industry Park Room 215, Saimdang-ro 641-22, Gangneung-si, Gangwon-do, Korea 210-341T. 82-33-641-7393 ㅣ F. 82-33-647-7394

TONGYANG PowerSignature Tower, Cheongyecheon-ro 100, Jung-gu, Seoul, Korea 100-230T. 82-2-3770-5702 ㅣ F. 82-2-3770-5710

TONGYANG EnergySignature Tower, Cheongyecheon-ro 100, Jung-gu, Seoul, Korea 100-230T. 82-2-3770-3364 ㅣ F. 82-2-3770-3304

Financial Services

TONGYANG SecuritiesTONGYANG Securities Bldg., Euljiro 76, Jung-gu, Seoul, Korea 100-845T. 82-2-3770-2000 ㅣ F. 82-2-3770-2418

TONGYANG Life InsuranceTONGYANG Securities Bldg., Euljiro 76, Jung-gu, Seoul, Korea 100-845T. 82-1577-1004 ㅣ F. 82-2-728-9563

TONGYANG Investment19th floor, Hi-Living Bldg., Teheran-ro 420, Gangnam-gu, Seoul, Korea 135-280T. 82-2-561-0056 ㅣ F. 82-2-561-9191

TONGYANG Financial ServicesHoiseong Bldg, Yeoksam-ro 168, Gangnam-gu, Seoul, Korea 135-929T. 82-1577-9911 ㅣ F. 82-2-3452-3273

TONGYANG Asset Management4/6/14th floor, TONGYANG Securities Bldg., Kookjeguemyoongro-2gil, Yeongdeungpo-gu, Seoul, Korea 150-707T. 82-2-3770-1300 ㅣ F. 82-2-3770-1307

TY MoneyHoiseong Bldg, Yeoksam-ro 168, Gangnam-gu, Seoul, Korea 135-929T. 82-1577-0090 ㅣ F. 82-2-405-3271

Other Services

TONGYANG NetworksTONGYANG Bldg., Unjoo-ro 729, Gangnam-gu, Seoul, Korea 135-995T. 82-2-6923-0000 ㅣ F. 82-2-6923-0077

TONGYANG Online21st floor, Nurikum Square IT Business Tower, Worldcupbook-ro 396, Mapo-gu, Seoul, Korea 121-795T. 82-70-7090-0900 ㅣ F. 82-2-2132-4990

TONGYANG Leisure2417-13, Anseongmatchum-daero, Yangseon-myeon, Ansung-si, Kyonggi-do, Korea 456-932T. 82-31-672-0071 ㅣ F. 82-31-672-6011

AD MTONGYANG Bldg., Unjoo-ro 729, Gangnam-gu, Seoul, Korea 135-995T. 82-2-6923-0000 ㅣ F. 82-2-6923-0077

TONGYANG InternationalTONGYANG Bldg., Unjoo-ro 729, Gangnam-gu, Seoul, Korea 135-995T. 82-2-6906-1015 ㅣ F. 82-2-6906-1066

MediOne TONGYANG Bldg., Unjoo-ro 729, Gangnam-gu, Seoul, Korea 135-995T. 82-2-6923-0000 ㅣ F. 82-2-6923-0077

Societal Contribution

Seonam FoundationAlpha Bldg., Jonno 34, Jonno-gu, Seoul, Korea 110-110T. 82-2-3770-3850 ㅣ F. 82-2-3770-3860

TONGYANG Creativity Center68-7, Seonghyunro 268beon-gil, Ilsandong-gu, Goyang-si, Gyeonggi-do, Korea 410-570T. 82-31-910-4546 ㅣ F. 82-31-977-6628

Manufacturing

TONGYANG Inc.Signature Tower, Cheongyecheon-ro 100, Jung-gu, Seoul, Korea 100-230T. 82-2-3770-3000 ㅣ F. 82-2-3770-3305

TONGYANG/Construction MaterialsSignature Tower, Cheongyecheon-ro 100, Jung-gu, Seoul, Korea 100-230T. 82-2-3770-3000 ㅣ F. 82-2-3770-3305

TONGYANG/ Engineering & Construction GroupSignature Tower, Cheongyecheon-ro 100, Jung-gu, Seoul, Korea 100-230T. 82-2-3770-3148 ㅣ F. 82-2-3770-3130

TONGYANG/Hanil Synthetic FiberSignature Tower, Cheongyecheon-ro 100, Jung-gu, Seoul, Korea 100-230T. 82-2-791-1114 ㅣ F. 82-2-791-1200

TONGYANG/FASHION DIVISIONSignature Tower, Cheongyecheon-ro 100,Jung-gu, Seoul, Korea 100-230T. 82-70-7090-3959 ㅣ F. 82-2-302-1028

TONGYANG/PlantSignature Tower, Cheongyecheon-ro 100, Jung-gu, Seoul, Korea 100-230T. 82-2-2240-3618 ㅣ F. 82-2-777-5916

TONGYANG/Magic Signature Tower, Cheongyecheon-ro 100, Jung-gu, Seoul, Korea 100-230T. 82-2-3472-7784 ㅣ F. 82-2-777-5241

TONGYANG Magic ServiceHyohaeng-ro 250, Bongdam-eup, Hwaseong-si, Gyeonggi-do, Korea 445-893T. 82-1577-7784 ㅣ F. 82-31-223-8335

TONGYANG Cement & EnergyTongyang-gil 20, Samcheoksi, Gangwon-do, Korea 245-150T. 82-33-571-7000 ㅣ F. 82-33-572-5541

TONGYANG Cement & Energy / Golden Oil5th floor, Namjeon Bldg., Bongeunsa-ro 326, Gangnam-gu, Seoul, Korea 135-916T. 82-2-554-8234 ㅣ F. 82-2-554-8236

TONGYANG Cement E&CTongyang-gil 20, Samcheoksi, Gangwon-do, Korea 245-150T. 82-33-571-7000 ㅣ F. 82-33-571-7554

Head OfficeTongyanggil 20, Samcheok-si, Gangwon-do, KoreaTelㅣ82-33-571-7000 Customer’s Call (Collect call)ㅣ080-023-7171Faxㅣ82-33-572-7245

Main PlantsSamcheok PlantTongyanggil 20, Samcheok-si, Gangwon-do (T. 82-33-571-7000)

Donghae Plant 559, Songjeong-dong, Donghae-si, Gangwon-do (T. 82-33-521-4865)

Gwangyang Slag Plant 1659-1, Taein-dong, Gwangyang-si, Jeonnam (T. 82-61-792-1541)

Busan Plant 650, Amnam-dong, Seo-gu, Busan (T. 051-250-5500)

http://www. tycement.com

tongyang cement energy tongyang cement & energy is renowned as a pioneer of the cement industry...

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