carib cement company...corporate profile . for the past fifty years, carib cement has been the...
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CARIB CEMENT COMPANY
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EXPANSION AND MODERNIZATION PROGRAMME
CARIB CEMENT GROUP OF COMPANIES
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Corporate Profile Expansion and Modernization
Programme Post-Implementation Performance Stakeholder Relationship Management
Agenda
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Caribbean Cement Company Limited includes itssubsidiaries,
Jamaica Gypsum & Quarries Limited;
Rockfort Mineral Bath Complex Limited
and Caribbean Gypsum Company Limited
The Group’s principal activities are the manufacture and saleof cement and the mining and sale of gypsum and pozzolan.
Corporate Profile
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For the past Fifty Years, Carib Cement has
been the Cement Industry of Jamaica
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Our Management Systems
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EXPANSION AND MODERNIZATION
PROGRAMME
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Local market is growing – CAGR of 5.1% The company needed to expand to drive
fixed costs down The company needed to modernize to drive
variable costs down Carib Cement is a Jamaican icon and a
significant contributor to GDP To ensure a sustainable enterprise
Why Expand & Modernize?
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Expanded Plant
Clinker Manufacturing capacity to 1.3 million tonnes per annum – present capacity is 620 thousand tonnes.
Cement Manufacturing capacity to 1.8 million tonnes per annum – present capacity of 1.05 million tonnes.
Upstream and downstream plant to match the production capability of the major components
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Improvements in Environmental Performance Emission levels (NOX, SOX and particulate) that
meet Jamaican and International standards. A reduction in the consumption of process water by
224 million litres
Improvements in Energy Efficiency Reductions in specific fuel and power consumptions
to bring them in line with world class levels.
Modernized Plant
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Project Approach Considerations
CCCL is a publicly traded company and part of the TCL Group – also publicly traded.
There are formal procedures and guidelines for the procurement of services, i.e. tendering rules.
A philosophy that ancillary equipment are what determine the ultimate reliability of a plant.
Control of project execution is to be retained in the company for the purpose of quality and stakeholder approaches.
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PROJECT DESIGNCCCL
Main Equip. Supplier
AUX. EQUIP. SUPPLIERS CONTRACTORS
Local Eng. Firm
PlantDesigner
EQU
IPM
ENT
SELE
CTIO
N
INSTALLATION DESIGNEQUIPMENT SELECTION
INST
ALLA
TIO
N D
ESIG
N
EQUIPMENT: SPECS, TENDERING, SELECTION, ORDERING, DELIVERY
INSTALLATION: DESIGN, TENDERING, SELECTION, CONTRACTS, CONSTRUCTION
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EQUIPMENT SELECTION
EVALUATION METHODOLOGY
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LIFE CYCLE COST
The performance rating along with the LCC will then be combined in a ratio.When cost is placed as the denominator then the factor represents the units ofvalue per dollar of cost. Hence, the proposal with the highest performance/costratio also has a superior expected performance.
• As such, the Performance/Cost Ratio takes into account:
• Operating Cost
• Maintenance Cost
• Utilities Cost
• Capital Allowance
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EQUIPMENT LIFE CYCLE
• Physical: The physical life of a facility is the period from construction to the time when it is physically derelict.
• Economic: The economic life of a facility is the point in time at which continued occupation of a facility is considered to be the least cost effective option.
• Functional: The functional life of a facility is the period from occupation to when it ceases to be functionally efficient or ‘fit for purpose’. Many users/occupiers functional reuse/flexibility is a real issue. Functional and economic obsolescence are often closely related.
• Technological: This occurs when a facility or its components are no longer technologically superior to alternatives and replacement is undertaken because of expected lower operating costs or greater efficiency
• Social: Community values and fashion can lead to the need for facility renovation or replacement, such as environmental and social concerns which give rise to the obsolescence of processes and products.
• Legal: Revised safety regulations, facility standards, compliance issues or emerging case law may lead to legal obsolescence.
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PERFORMANCE ELEMENTS
Operability - an assessment of the operating features of the different systems as regards its ability to meet thespecified performance parameters and provide a product of lasting quality over the long term. The main issuesconcerned with for this performance element are:
v Production Capacityo Rated capacityo Maximum operational capacityo Robustness of design - ability to meet desired output with varying inputso Production rates with new and worn componentso Operation dutyo Level of automation
v Energy Efficiencyo Specific energy consumption: fuel and electricity where applicableo Installed powero Cooling water requirementso Compressed air requirements
v Environmental Performanceo Levels of expected emissions – NOX, SOX, Particulateo Emission attenuation systems proposed by vendors if expected emissions are exceededo Safety protection systems – design
v Product/Process Characteristicso Solid and liquid (fluid) output materials temperatureso Product sizeo Product residueo Maximum material moistureo Input feed size limitationso Material recirculation system design
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PERFORMANCE ELEMENTS
Durability/Reliability - the method and nature of construction, applicability to localconditions, degree of redundancy and other design philosophyconsiderations, technological and obsolescence levels. The main issues concerned withfor this performance element are:
v Life expectancy of componentso Life expectancy of bearingso Life expectancy of liners and wear coatingso Design and lining of feed and discharge chuteso Projected or guaranteed availabilityo Thickness of liners
v Suitability of design to conditionso Materials of constructiono Design of wearing componentso Design adherence to required standards
v Systems to provide operational efficiencieso Technological innovationo Use of automated systems e.g. Lubricationo Systems to deal with material blockageso Shutdown protection systems
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PERFORMANCE ELEMENTS
Maintainability - the ease with which the system will be maintained in the future. Themain issues concerned with for this performance element are:
v Ease of carrying out maintenanceo Accessibility to wear componentso Use of built-in special toolingo Use of modular componentso Bearing types usedo Grinding forces employedo Types of joints – welded, boltedo Number of redundant systems, serviceable while system in operation
v Use of design to reduce maintenance requirementso Speed of rotating componentso Bearing types usedo Types of power supply systems proposed – clean powero Compatibility of electrical/instrumentation systems proposed with existing systems
v Maintenance informationo Standardization of spareso Manuals and Documentation
v Provisions for maintenance safetyo Ability to site platforms and cranes in close proximity to maintenance pointso Space around equipment for maintenance personnel and tools
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PERFORMANCE ELEMENTS
Support - is concerned with transfer of technology and the future support and assistancethat is perceived from the supplier. The main issues concerned with for this performanceelement are:
v Equipment performance guarantees and warranteeso Vendo r warrantieso Vendo r guaranteeso Vendo r proposals for if warranties and guarantees are not meto Vendo r’s equipment testing proposals
v Technology transfero Vendo r’s training programso Vendo r’s proposed hand over programo Vendo r’s proposals for counterpart participationo Programs for technology transfer
v Vendo r Support Networko Service Centres – numbers regionally and globally, number of service personnelo Proximity of centers and personnel, with respect to travel or other communicationo Language of closest service centreso Delivery times for spares
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COST ELEMENTS
Capital Costs
Capital costs shall include the following:
Purchase cost Civil foundation costs Erection and commissioning costs Training costs Cost of specialized tools and equipment Any other related cost to get the equipment into normal operating mode
Operating Costs
Operating costs shall include the following:
Cost of fuel/electricity Cost of oils and lubes Cost of personnel to operate Cost of maintenance labour and parts Cost for utilities, such as air, water Need for special service skills Cost of upgrades to meet future production requirementsAny other cost associated with the operation of the equipment
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COST ELEMENTS (Life Cycle Costing, LCC)
Total life cycle cost (LCC) = Initial asset acquisition/capital costs (AC)
lessTax depreciation entitlements (TD)
plusOperating and maintenance costs (OC)
plusReplacement/disposal/upgrade costs (RC)
lessResidual/salvage value (RV)
= LCC
Typical LCC = (AC – TD) + (OC + RC) – RV
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PYRO-PROCESSING EVALUATION
ELEMENTSupplier 1 Supplier 2
Proposal Four (4) Stage Preheater, XX Low NOx Calciner, Kiln - 3,250 MTD, 745 Kcal/Kg, Main Drive - 480
kW, Single Pinion & Girth Gear Main Drive.
Four (4) Stage Preheater, Low NOx Calciner, Kiln - 3,250 MTD, 740 Kcal/Kg, Main Drive - 450 kW.
Performance Evaluation Operability (x/10) 25% 6.64 7.18Durability (x/10) 25% 6.20 7.20Maintainability (x/10) 25% 7.00 7.00Support (x/10) 25% 7.00 7.00Overall Rating (x/10) 6.71 7.10
Cost Evaluation Equipment Cost $7,025,362 $7,133,000Freight $317,234 $317,234Estimated Installation $9,511,153 $8,553,078Total Installed Cost $16,853,749 $16,003,313LCC, 10 year $50,111,760 $48,483,903
Performance/Cost Rating (x 10^9) 134 146
VENDOR
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CONSTRUCTION PLANNING
EVALUATION METHODOLOGY
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Constructability Challenges
Jamaica is not an industrialized environment
There is not a supply of large, industrial contractors, equipment or tools
The plant is situated next to “inner-city” communities with low levels of “certified” workers and high levels of unemployment
The performance on prior expansion projects was dismal – schedules extended by years, work stoppages, loss of control of the site, army and national police required to complete the construction effort
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Construction Concerns
Normal project concerns – time, cost and quality
Security concerns – personal and equipment/tools
Safety concerns – normal worksite ethics does not match the safety requirements for a construction site that would peak in excess of 800 people
Stakeholder concerns – expansion of a cement plant could be viewed negatively by some while criminal elements would view it as an opportunity to extort construction contractors or employees
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Construction Planning
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LOSS PREVENTION STRATEGIES
SAFETY AND SECURITY
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Foundation of HSE Systems
Start
as you
want to
Finish
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Demonstrated Leadership and Commitment Knowledge & Skills Training Promotion & Motivation Systems & Enforcement
PILLARS OF THE SAFETY PERFORMANCE
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Safety & SecurityWe maintained a safe, secure site:
Pre-employment medical, drug and security screeningStrict adherence to safety policies on site to achieve
“NO ACCIDENTS, NO INCIDENTS” Strict enforcement of security policies on siteZero tolerance to safety and security breachesDaily discretionary searches (Metal Detectors included)
Job Safety Analyses and Lifting Plans for all jobs
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Safety Strategies
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JCF Representation JDF Representation Site Fencing Separate facilities for contract staff Separate access through the East
gate There continues to be no budget for
community policing
Security Strategies
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Human Capital Development & Technology Transfer
Internal Skill Development Programme HEART Training programme for Artisans Professional programmes for Engineers Conferences/Seminars for Professionals Comprehensive Technology Transfer Programme
developed with FLS
Community Based Training Programme Programme developed with HEART Institute Provides skilled construction/erection workers for the
project Maximises local and community content
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250+ Graduates 80% employed on the projectContinuing employment programme in place
Community Skills Building Programme
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CONCRETE WORKS
FOUNDATIONS AND SUPERSTRUCTURE
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Strength Mix design Maximum Temperature at placement Maximum core temperature during curing Maximum difference between core & exterior
Concrete Design Requirements
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Planning for Concreting
Area
Proposed Date
Summary of Pour
Requirements
Details of Pour Plan
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Concrete Control
Date & Time
Design Mix Specifications Actual Mix Specifications
Truck Number
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Concrete Control28 Mpa
29
3728
7
Preheater Column B2
Carib Plus
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The islands of the Caribbean are small
The effects of the Marine environment are seen throughout the islands
Coastal structures are subject to “sea blast”. Up to 50 miles from the sea the effects of sea spray are evident.
Typical negative effects of these phenomena on concrete structures
Regional Conditions
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Addition of water to cement liberates lime
Carbon dioxide in air penetrates concrete and reacts with lime, forming Calcium carbonate
Calcium carbonate migrates to surface, as milky white material
Efflorescence
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Passive layer formed on steel under normal conditions
Penetration of salts, particularly Chloride (Cl-) through matrix
Passive layer destroyed by reaction with Cl-
Steel now subject to corrosion.
Corrosion of internal steel
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Usually as a result of expansion within the concrete
Results in cracks, stains, then spalling
Spalling of Concrete
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Pozzolans - materials which contain constituents which combine with lime to form stable insoluble compounds with cementing properties:
Natural Pozzolans: silico-aluminate molten magma, diatomaceous earth
Artificial pozzolans : fly ash, rice hulls
What are Pozzolans?
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Pozzolans Reaction and Concrete Performance
Pore SizeDistribution
28 90 360
Pore refinement fills the capillary space in concrete as the pozzolanic reaction proceeds.
After a year all the larger capillary voids in the pozzolan cement concrete are filled.
Concrete becomes increasingly impermeable and durability is increased.
Days
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Concrete Strength Performance
Spec: 35Mpa7 Day: 34.94Mpa
28 Day: 42.97Mpa
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Concrete Temp. Performance
Highest temp. under 65oC
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ERECTION WORKS
STRUCTURAL STEEL, MEI AND REFRACTORY INSTALLATIONS
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EXPANSION AND MODERNIZATION PROGRAMME
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Clinker Expansion Project
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Kiln No.5 Project
Main Equipment – FLS Supply:
FRM 38-190 VRM: 235 mtph
Four stage suspension low drop preheater
with inline low NOX calciner
Ø4.55m ROTAX-2, rotary kiln, 2,800 mtpd
SF 3x4 crossbar cooler
Kiln/Mill and cooler vent fabric filters
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Kiln No.5 Project
Scope of Construction:
100,000m3 of excavation
19,000m3 of reinforce concrete
Over 5,000 tonnes of structural steel
and reinforcing bar
7,000 tonne raw meal silo
2 million man-hours worked
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Jamaica Institute of Engineer - Project of the Year Award 2009 – Kiln No.5 Project
• Safety• Technical Input• Project
Approach• Engineering
Difficulty• Local
Engineering Input
• Social Impact• Schedule
Management• Cost
Management
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Cement Expansion Project
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Cement Mill No.5 Project
Main Equipment – Loesche Supply:
LM-46 2x2 VRM: 110 mtph
Cement mill main baghouse
Mill feed bin and material conveying
system
Main process fan
Hot gas generator
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Photos
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Photos
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Photos
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Photos
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Photos
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ClinkerManufacture
CementGrinding
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PLANT PERFORMANCE
POST IMPLEMENTATION RESULTS
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Plant Startup
Kiln 5 started in August 2008
Mill 5 started in August 2009
Both units quickly demonstrated their ability to
meet the efficiency targets
Kiln 5 has a record monthly production of 87K of
clinker (equivalent to 100% OEE)
First
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1.497
1.309 1.313
1.241
1.334 1.334
1.235
1.036
893849 828 841 832 838
798
0,0
200,0
400,0
600,0
800,0
1.000,0
1.200,0
1.400,0
1.600,0
1.800,0
2.000,0
Jan-
08
Feb-
08
Mar
-08
Apr-
08
May
-08
Jun-
08
Jul-0
8
Aug-
08
Sep-
08
Oct
-08
Nov
-08
Dec
-08
Jan-
09
Feb-
09
Mar
-09
kCal/kg
Expanded & Modernized Plant
Specific Fuel Consumption down 30%
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137,4 130,1
139,0 137,0 143,2
132,8
161,2
146,7
121,7
108,5 101,2
96,5 101,4 100,3 99,9
0,0 20,0 40,0 60,0 80,0
100,0 120,0 140,0 160,0 180,0
Expanded & Modernized Plant
Specific Power Consumption down 35%
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0200400600800
1000
2006 2007 2008 2009
Resu
lts
mg/
l
Years
West Drain : Average Annual Total Suspended Solids Trend (TSS)2006 - 2010
Target Result
Actual Results
0,0
100,0
200,0
300,0
400,0
2006 2007 2008 2009
Resu
lts
mg/
l
Years
Central Drain : Average Annual Total Suspended Solids (TSS) Trend 2006 - 2009
Actual results
Target Result
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STAKEHOLDER RELATIONS MANAGEMENT
PROJECT IMPLEMENTATION
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Why Stakeholder Management?
Carib Cement’s Expansion Programme has attracted national attention
The experience of the last expansion demonstrated widely diverse interests – plant is located next to inner city communities
It represents best practice in project management
It can proactively assure project success and usefulness
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What is a Stakeholder?
Stakeholders are individuals, groups, or organizations :
that have an interest in the project who may be positively or negatively
affected by the project who can mobilize resources to affect
its outcome in a positive or negative way.
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What is Stakeholder Analysis?
Stakeholder Analysis is the formal, systematic, identification of a project’s stakeholders, an assessment of their interests in a project, and an assessment of their ability to impact the successful completion of the project.
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What is Stakeholder Relationship Management?
Stakeholder Relationship Management was formally employed by CaribCement, utilizing the basic tenets of Stakeholder Analysis to bring a professional management approach to fostering positive relationships with the stakeholders of its Expansion and Modernization Program in order to promote successful completion of its initiatives.
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Developing the Stakeholder’s Matrix
High Power
Low Power
Low Interest
HighInterest
In FavourOpposed
ISSUE
Low Interest
HighInterest
High Power
Low Power
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Allies Sympathizers
Supporters Friends
High Power
Low Power
Low InterestHigh Interest
Stakeholder’s Matrix
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Key Stakeholder Meetings
Listing of Key Stakeholders: Government and executive agencies Parliamentary Opposition Community Organization Leaders Statutory Agencies Employees Management and Shareholder Representatives Investors and Financiers
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Stakeholder Planning
Stakeholder Plans were developed concentrating on the following:
Who to communicate toWhat information to communicateHow to communicate the information
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Open House and Town Meeting
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Carib Cement’s E&M has significantly improved operatingefficienies
The plant’s capacity now exceeds projected local marketdemand
Continued improvements will focus on making a variety ofproducts available to the customer, with increasingaccessibility for the customers
The strategies employed in the E&M Programme resulted ina very successful implementation despite a very challengingenvironment
Summary
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Thank You