Cheaper energy boosts Zlatna Panega Cement’s profit in 2023

"The profit in 2023 is significantly higher because 2022 was a very difficult year. We experienced a threefold increase in electricity and fuel prices, mainly due to the post-pandemic recovery and the war in Ukraine. In 2023, prices stabilized," said Boyan Antov, CFO and administrative director of Zlatna Panega Cement. "Additionally, in 2023 we significantly improved our use of alternative fuels, reducing our dependency on solid fuels by about 8%," Frantzis added.

One of the key investment projects in 2023 was the construction of a 5 MW solar park, which has been operational since mid-2024. In the next phase, an additional 15 MW of solar panels will be installed. Other investments included acquiring new equipment for ready-mix concrete operations and replacing key furnace components at the plant.

The company has been implementing modern digital technologies and artificial intelligence for predictive maintenance for the past five years. As a result, it has prevented over 5,000 hours of downtime and saved approximately 2 million euro, explained plant director Milen Stanoev.

Circular economy

Reducing the carbon footprint is a key priority for the company, as the cement industry traditionally has high emissions due to the chemical process involved in production. In 2023 Zlatna Panega Cement increased the share of alternative fuels to 48% of its fuel mix, replacing conventional solid fuels. "We achieved a monthly record of 70% substitution with alternative fuel, which is an outstanding result, thanks to the modernization efforts we have made," said Stanoev.

Another method of reducing carbon emissions is using waste materials from other industries as alternative raw materials to produce the so-called green cement, which has a 25% lower carbon footprint compared to traditional Portland cement. The company incorporates waste such as ashes from power plants, slag from metal production and waste gypsum - all sourced from Bulgaria. "We actively participate in the country's circular economy," stated Ekaterina Shilegarska, sustainability and environmental protection manager.

In 2023 the plant utilized a total of 110,000 tonnes of waste, including 35,000 tonnes of alternative fuels and 75,000 tonnes of alternative raw materials, with an overall increase in both categories. The company also managed to reduce its indirect emissions by lowering electricity consumption by 7%. This reduction resulted from the solar park's commissioning and various energy efficiency and process optimization measures, Shilegarska said.

For the first time in many years, the company also hired new employees. "For years, due to dynamic economic conditions, we were very cautious with hiring," explained HR manager Ventsislava Kuleva. However, she noted that the company now faces two challenges.

"The first is that we are growing and creating entirely new positions. The second is that some employees are reaching retirement age. Nearly one-third of our workforce has been with the company for 20 or more years. Now we need to make room for the new generation," Kuleva added.