Stjepan Kumric, CEO at Fabrika Cementa Lukavac – Our Focus is on Transfer and Application of Innovative Production Technologies

We see Lukavac Cement and Lukavac Beton as future successful and respectable companies that produce and sell green construction materials in Bosnia & Herzegovina and farther, says Stjepan Kumric, the CEO at Lukavac Cement.

Kumric states that the global energy crisis affected them as well but timely investments in the previous period helped secure the energy sources needed for production processes.

Current fossil fuels substitution is over 50%. This is significant for the future where renewable energy sources would be the dominant fuels. Considering this is an energy intensive industry. we are constantly developing and implementing ideas and projects of energy efficiency so we could be ready for any future fluctuations and changes on the energy market and make our production sustainable.

Who are your current partners on domestic and regional markets? Which of your products are the most popular?

– Our cement is used for different projects, from the construction of Corridor 5C sections and production facility complexes to construction of individual buildings. Our partners are numerous production companies and global brands whose products have cement as the basic ingredient. Diverse range and structure of our clients requires us to be always available and to meet the ever-increasing market demands. We offer flexibility and we take on an active role which has resulted into opening a concrete laboratory that offers better technical support and help to all our customers.

What we`ve noticed is that lately the demand for bagged cement has dropped, the main reason being the change in consumers` habits who are increasingly buying ready-mixed concrete from the local concrete plants.

What are the current production capacities for cement and concrete? Do you plan to increase the size of production and the product placement?

– Cement market has been stable in the previous few years since the level of construction activities hasn`t dropped unlike in other sectors. Having in mind the current situation with the energy prices skyrocketing and all-around increase in prices we expect the demand to drop by about 10% annually as a consequence.

It is well-known that you kept investing in sustainable production all the while taking care about the environment. What are you plans in that area in the next period?

– Our priorities for the next period are the use of renewable energy source with reducing carbon emissions and the realization of innovative solutions our experts are working on. Being recognized as a business leader of sustainable development in B&H for 2022 in the field of “Resources and Environment” has motivated us to work on environmental projects that will benefit the local community.We will focus on orientation and care for our employees through securing quality and safe working conditions, searching for best professional development and educational courses for our workers because we want them to be the best at what they do. Poeple are our most valuable resource. We are working non-stop on developing new and implementing the existing sustainable growth and development concepts where the transfer and application of innovative production technologies with care for the environment play a big role.

Do you have plans for modernization of production technologies and equipment? What current trends need to be observed?

– As previously stated, Lukavac Cement has strategically chosen the transfer and application of innovative production technologies that raise the level of environmental protection and realization of projects that will increase energy efficiency and the use of renewable energy sources which will lower production costs and create an optimal working environment and develop our workers skill levels who are the driving force of our company. We are following the current trend of decarbonization of cement industry, we are researching alternative materials, raw materials and fuels and we are working on new types of cement and concrete with the aim of reducing our products` carbon footprint. We are also digitizing our production processes, preparing the certification of the compliance management system and implementing open innovation system. We are following and implementing the current trends.

What is the company`s general medium term investment plan? How would you like Lukavac Cement and Lukavac Beton to develop?

– Our medium term plans predict further modernization, digitalization, introducing modern information systems and developing the potential and skills of our workforce at the same time, because we believe knowledge and diverse skill set are crucial for any company`s development. It is important that we are always perfecting our business and following contemporary trends, tha we accept anything new as normal. Our previous experience with crisis periods showed us that we have to be flexible and adapt quickly to new situations. And in the future, we see Lukavac Cement and Lukavac Beton as successful and respectable companies producing and selling green building materials in the B & H market and farther.

Teodora Brnjos