HeidelbergCement: Technology Choice under Carbon Regulation

Published 25 Mar 2010
Reference 5681
Topic Operations
Industry Construction
Region Europe
Summary

This case describes carbon cap-and-trade regulation and the principle carbon emissions drivers within HeidelbergCement and the cement industry. This leads to the focal decisions in the case regarding technology choice, product specification and plant locations. Further complexities arise due to international competition and uncertainties associated with the evolving carbon market.

Teaching objectives

This case links emerging issues on carbon regulation and climate change to operations management and supply chain design. Students will develop the ability to weigh carbon-leveraged investments of a strategic nature such as technology choice, product design and the off-shoring of production capacity in an important global industry, cement.

Keywords
  • Carbon Regulation
  • Cap-and-trade
  • Carbon Footprint
  • Cement Industry
  • Sustainable Operations
  • Technology Choice
  • Carbon Emissions
  • Sustainability
  • RD0310
  • AR2010
  • AR0910