Displaying items by tag: Appointment
The changeover at the top of LafargeHolcim, with Eric Olsen standing down and with the appointment of Jan Jenisch (CEO of Sika AG), is worthy of note for a number of reasons. American/French Eric Olsen has been in charge of the merged company since its inception and has made a good job of bringing together two very different companies, while at the same time battling uneven economic growth worldwide which has seen some patchy results over the last two years. Given more time, he would undoubtedly have presided over more robust results as yet more synergies are discovered in the newly-lean company.
In fact, lean-ness is one of the four ‘strategic pillars’ that are now governing LafargeHolcim, according to the recent fascinating 2016 annual report. Alongside ‘commercial transformation,’ ‘cost leadership’ and ‘sustainability,’ the report stipulates that the company will be ‘asset light.’ The report goes on to explain that LafargeHolcim ‘will optimise our current asset base, better leveraging our industrial footprint, reducing our capital expenditure and exploring new growth opportunities with lower capital expenditure.’ It says that ‘Future growth will be focussed on low-capital intensive business models that enable us to access more of the value chain.’ Putting numbers to the words, LafargeHolcim’s capex in 2016-2017 was CHF3.5bn (Euro3.21bn), but it will plummet to CHF2bn (Euro1.83bn) from then on. As CEO, Eric Olsen’s prints are all over this plan.
The company plans to use its ‘know-how in preventative maintenance and capacity optimisation’ to reduce its ongoing capex in the cement industry, and says that ‘we outsource our fleet management whenever possible and develop alternative logistics offers to reduce capital expenditure.’ So, out with its own fleets of vehicles, and in with contractors, freeing-up capital (but possibly leading to lower retained profits). The company also says that ‘the leveraging of our global trading platform enables us to serve some markets without the need to invest in local clinker capacity.’ Alongside various statements in the annual report that suggest that the company has quite enough clinker production capacity already, we can see that it intends to stop building any new greenfield plants, and to potentially invest in clinker grinding facilities in markets where it does not have a presence, supplied by its currently under-utilised clinker-producing plants. It plans to expand into low-capital concrete markets, stating that ‘we are implementing franchise models in the ready-mix and retail segments, enabling us to reach customers in a differentiated way while keeping capital expenditure low.’
Eric Olsen’s plan is/was a sensible one: stop sending money out the door, make the current assets work a lot harder, and get into businesses with a good margin but which don’t cost a lot in which to become established. This is a plan that will take time to come to fruition, but unfortunately, Eric Olsen will not be at the helm of the company to see the benefits. He resigned at the end of April after an internal investigation at the company showed that managers at the company’s cement plant in Syria had paid-off local militias in order to stay open. As Eric Olsen stated at the time, “While I was absolutely not involved in, nor even aware of, any wrongdoing I believe my departure will contribute to bringing back serenity to a company that has been exposed for months on this case.” It seems that the chairman and the board of directors owe Mr Olsen a few beers - at least - for taking the heat off the company.
German national Jan Jenisch steps into Eric Olsen’s shoes at an interesting time then. He is coming from a company, Sika AG, that has also seen some tumultuous events in the last few years. The company’s controlling family wish to sell its 16% stake (including 53% voting rights) to multi-national building materials group Saint-Gobain, which is eager to buy, against the wishes of the company’s board, senior managers and other shareholders. So far the sale has been foiled by Mr Jenisch, but a crucial court case decision is due later in the year. Who knows, in the meantime maybe another building materials company might step-in to try to take over Sika’s attractive business? Mr Jenisch managed to increase Sika’s profit by 22% in the last full year of operation of the company, and the board of LafargeHolcim will be hoping that he can repeat the magic with his new company. If he manages it though, just remember that he has inherited Eric Olsen’s ‘cunning plan that might just work.’
New plant manager at Karsdorf
24 May 2017Germany: Opterra, the German subsidiary of Ireland’s CRH, has announced a change of plant manager at its Karsdorf plant. Berthold Perschall, 50, will take over from Giuseppe De Donno on 1 June 2017. De Donno has been in the post since July 2015 and has left the company to pursue a new professional challenge.
Perschall has been with CRH (and Lafarge beforehand) since 2000. Before coming to the Karsdorf plant in 2009 he worked at Lafarge’s Sötenich and Wössingen plants. He was most recently the head of maintenance and production at Karsdorf.
Switzerland: LafargeHolcim has announced the appointment of Jan Jenisch as its new CEO, effective from 16 October 2017. The move follows the resignation of Eric Olsen, who will leave the company on 15 July 2017, two years after he took up the CEO role and assumed responsibility for the merger of Lafarge and Holcim. Between 15 July 2017 and 16 October 2017 Beat Hess, Chairman of the Board, will become interim CEO. Roland Köhler, currently an Executive Committee member, will be appointed Chief Operating Officer.
Jenisch, aged 50, joins from Swiss company Sika AG, a developer and producer of systems and products for the building materials and automotive sectors. He has been the CEO of Sika AG since January 2012. Under his leadership, the market capitalisation of Sika has more than tripled and the company has recently gained admission to the Swiss Market Index. Jenisch joined Sika in 1996 and has worked in various management functions and countries. He was appointed to the Management Board in 2004 as Head of the Industry Division and he served as President Asia Pacific from 2007 to 2012.
Russian plant elects board chairman
03 July 2015Russia: The Board of Directors of Verkhnebakanskiy Cement Works elected Lev Kvetnoy as Chairman of the Board of Directors on 1 July 2015.
New CEO for Lafarge’s French unit
22 June 2015France: Lafarge Group has appointed Benedicte de Bonnechose as CEO in charge of operations of its French unit. She will succeed Pascal Casanova, who was appointed as head of Latin American operations at the future combined group LafargeHolcim.
Bonnechose has been a member of Lafarge's board since 2012.
She has played a key role at the group's reorganisation in France and was in charge of its strategy, public affairs and environment businesses. Since 2013 Bonnechose has been CEO of Lafarge's aggregates unit.
CEMBUREAU welcomes new president and vice president
17 June 2015Belgium: Daniel Gauthier, CEO of Western Europe-Africa and member of the managing board of HeidelbergCement, has been elected as president of CEMBUREAU for a two-year term after having completed his mandate of vice president over the last two years. He takes over from Peter Hoddinott, executive vice president of performance and member of the executive committee at Lafarge. In addition, Gonçalo Salazar Leite, CEO of Secil, has been elected as vice president of CEMBUREAU for a two-year term.
"The industry must now build upon the accomplishments of 'The Concrete Initiative," said Gauthier. The initiative was launched one year ago. "Concrete is essential to Europe's future, providing the buildings and infrastructure that society needs, as well as growth and jobs. The circular economy, competitiveness and climate change will also remain at the forefront of CEMBUREAU's activities."
"With the election of Gauthier, CEMBUREAU and the priorities of the european cement sector are in excellent hands," said Hoddinott. "He will advance and reinforce the agendas of putting the cement industry forward as a solution provider, where concrete can fulfill both the aspirations of the end users of construction and act as a partner in fulfilling the needs of policymakers."
"I take this opportunity to thank Peter Hoddinott for his commitment to the Association over the last two years," said Koen Coppenholle, CEMBUREAU chief executive. "We are now at a turning point. After a protracted period of negative growth, Europe is getting back on its feet. Indeed, our 2014 activity report shows some glimmers of hope for our sector."
Compared to 2013, 2014 cement production in the CEMBUREAU member countries saw a very moderate recovery, rising by 0.3% year-on-year to 235.5Mt after the drops recorded in 2013 and 2012 (1.4% and 8.2% respectively) and having fallen by 27% since 2007. Developments in cement demand were in line with the upturn in the general economic and construction environment, particularly over the second half of the year, reflecting somewhat improved sentiment and activity, despite tight budgetary conditions in many member states. Global cement production has been estimated at 4.3Bnt in 2014, translating into a 6.7% increase compared to the 4Bt recorded in 2013. The CEMBUREAU member countries accounted for 5.5% of global production, with China representing 56.5%, compared to 58.3% in 2013. Without taking into account China, global cement production increased year-on-year by 11.3%.
India: India Cements has appointed P L Subramanian as a non-executive director with immediate effect. Subramanian joined the company in 1986 and has served in various positions. He was serving as its executive director of operations and retired from service in May 2015.
Adriano Greco joins FCT International
10 June 2015US: FCT, the rotary kiln pyro-processing company, is pleased to announce that Adriano Greco has joined the team at FCT as Global Sales Director, based in the United States.
Mr Greco is known to many in the cement industry through his previous activities as Managing Director of Greco and as Sales Director for Gebr. Pfeiffer. FCT said that his experience and professionalism would be 'invaluable as FCT extends its reach to the markets across the globe.'
FCT already has operations in Australia, United States, Europe, Middle East and Canada and continues to expand with projects in every continent.
Eric Olsen named as future CEO of LafargeHolcim
09 April 2015Europe: The boards of directors of Lafarge and Holcim have approved the appointment of Eric Olsen as future Chief Executive Officer of LafargeHolcim, to be in office as from the closing of the merger project.
At present Eric Olsen is Lafarge Executive Vice-President of Operations. He has been a member of the Group's Executive Committee since 2007. Aged 51, Olsen has dual American and French nationalities. He has extensive international experience and has held senior positions in operations and in the fields of finance, human resources and strategy.
Commenting on the appointment, Wolfgang Reitzle, Chairman of the Holcim Board and future co-Chairman of LafargeHolcim, said, "I very much welcome Eric Olsen as future CEO for LafargeHolcim. With his broad international experience and insights in key markets, he is best positioned to lead the combined company for the benefit of employees, shareholders and customers. Bruno Lafont and I will support Eric in creating a new joint culture that will be the key driver for our premier competitive position."
Lafarge Chairman and CEO, and future LafargeHolcim co-Chairman, Bruno Lafont, added, "I have every confidence in his ability to deliver the synergies announced and ensure the development and the success of LafargeHolcim."
India: Vaishno Cement Company Ltd has appointed Sarita Agarwal as an independent non-executive director with effect from 27 March 2015.