Displaying items by tag: Holcim
Wolfgang Reitzle proposed for Holcim board
14 March 2012Switzerland: Wolfgang Reitzle has been proposed to the Annual General Meeting on 17 April 2012 for election to the board of Holcim Ltd. Reitzle, aged 63 and a German citizen, studied engineering and economics at the Technical University of Munich and holds a degree and a PhD in mechanical engineering.
From 1976 to 1999 he worked for the car manufacturer BMW, where in 1987 he was appointed as a regular member of the Executive Board, responsible for research and development. In 1999, Reitzle took over as CEO of the Premier Automotive Group and Vice President of the US car manufacturer Ford. In 2002, he joined the Executive Committee of Linde, a world-leading gases and engineering company, and became CEO in 2003.
Brazil: Cement manufacturer Holcim, which already operates cement plants in Minas Gerais and Rio de Janeiro, is considering a new plant or joint-venture with a company already established in the Brazilian cement market. The group has untouched limestone reserves in the south, mid-west and the north east regions to offer any potential collaborator.
Holcim President Otmar Hübscher said that the company has been looking at possible locations and wants to focus Holcim to meet the growing cement demand in Brazil, where it is currently operating at its 5.3Mt/yr capacity. The company has already announced an US$800m expansion of its plant in Barroso, Minas Gerais. It is presently waiting for environmental clearance for the project, which will see that plant increase its capacity from 1.2Mt/yr to 3.5Mt/yr by 2014.
Holcim swings to loss in final quarter
29 February 2012Switzerland: Holcim has reported Euro363m loss for its fourth quarter of 2011 after being hit by a Euro643m impairment charge on its assets in South Africa and Europe. It said that it expects organic growth in operating earnings before interest, tax, depreciation and amortisation (EBITDA) in 2012. For 2011 as a whole, Holcim reported higher sales volumes for cement, aggregates and ready-mix concrete, although its consolidated net sales decreased by 4.2% (7.5% increase like-for-like). Its operating EBITDA decreased by 12.3% (down 0.2% like-for-like). Its net income fell to Euro565m.
Holcim said that it expects demand for building material to rise in emerging markets in Latin America and Asia, as well as in Russia and Azerbaijan in 2012. It also expects a slight improvement for North America. In Europe, Hocim believes that demand will remain stable, provided that the situation is not undermined by further systemic shocks in the Eurozone. "Holcim expects that the group will achieve organic growth in terms of operating EBITDA," the company said in its quarterly report.
Holcim to close Catskill and Artesia plants
27 February 2012US: Holcim (US) Inc. has decided to permanently close its cement making operations at its Catskill facility, according to a New York State Department of Conservation Environmental Notice Bulletin. The company is also set to permanently close its Artesia plant in Mississippi. Both plants had previously been mothballed due to the stagnating US economy and low cement demand.
Holcim Vice President of Corporate Communications Robin DeCarlo said that the state of the economy had not improved. She said that this, along with a decrease in demand for cement across the US, had led Holcim to decide to permanently close the plants.
Speaking of the Catskill plant, DeCarlo said, "Nothing has really changed with the plant from the mothball status to the close. We still have staff there, we are still looking at our equipment and are maintaining our permits, so not much has changed."
DeCarlo said that there are no plans for Catskill at this point and that a timeline on the completion of the closures remains unclear. The announcement to cease operations at Catskill was reported to the Department for Environmental Conservation (DEC) for the sole purpose of changing Holcim's solid waste permit. This will allow it to dispose of its raw materials, according to DEC Region 4 spokesman Rick Georgeson.
Holcim issues profit warning over one-off charges
17 January 2012Switzerland: Holcim surprised investors with a profit warning today, after announcing it would take a Euro641m hit in one-off charges on its 2011 accounts. The bulk of the impairment relates to a Holcim-specific issue in South Africa regarding AfriSam but analysts noted the decision to write down the value of assets in parts of Europe and the US on the back of sharply lower demand could be echoed by other cement makers.
"Some mature markets will never again see the record levels of profitability of the mid-2000s. Other players could be forced to do the same," warned Josep Pujal of Kepler Capital Markets.
Euro343m of Holcim's charges stemmed from completely writing down its remaining South Africa investment following a steep fall in demand for construction materials in the country since 2010. Holcim's South African exposure stems from its former local subsidiary, the country's biggest cement maker by sales, AfriSam. The remainder of the write-offs stem from adjusting property, equipment and goodwill lines in the group's accounts to much weaker markets. Some Euro271m in writedowns related to Spain and eastern Europe and Euro26m related to the US.
Movement at Weston as port deal announced
06 January 2012New Zealand: New Zealand's foreign investment watchdog, the Overseas Investment Office (OIO), has given the green light to Holcim for the purchase of a leasehold at Timaru's port. The amount Holcim paid to lease the 2.26 hectares of land, which it will hold for a minimum of 50 years, was kept confidential by the OIO.
The agreed leasehold, including a new wharf and storage facilities capable of handling cement, indicates that Holcim is preparing the ground for the construction of a new US$500m cement plant at Weston, near Oamaru. In October 2011 the Swiss cement company announced a delay on a decision for the proposed plant until late in 2012. That announcement was the latest in a long line of delays that started in 2007. Construction of the 0.86Mt/yr plant is expected to create nearly 500 local jobs.
Onne van der Weijde joins Holcim senior management
04 January 2012Onne van der Weijde, currently CEO of Ambuja Cements Ltd in India, has been appointed as an area manager and a member of the senior management of Switzerland's Holcim Ltd. He took on his new role on 1 January 2012. Mr van der Weijde remains CEO of Ambuja Cements Ltd and reports directly to Holcim's executive committee member Paul Hugentobler, who is responsible for Holcim operations in South Asia, excluding the Philippines.
A Dutch citizen, Mr van der Weijde holds a Bachelor's Degree in Economics and Accounting from the University of Rotterdam in the Netherlands and an MBA from the University of Bradford in the UK.
Mr van der Weijde was CFO at Holcim Indonesia from 2001 to 2005. In 2005 he was appointed General Manager of Holcim India Ltd and in 2006 he also assumed the CFO function at ACC Ltd until October 2008. Since November 2009 he has been CEO of Ambuja Cements Ltd.
Holcim announces timeline for second phase of Guayaquil expansion
13 December 2011Ecuador: The Ecuadorean unit of the Swiss cement multinational, Holcim, has announced that it will begin the second phase of its Guayaquil plant expansion in December 2012. The second phase will require an investment of nearly US$400m and it will see the construction of a third kiln at the plant. This will allow the South American country to sustain its growth in the coming decades, according to the company.
As well as aiming to supply the country's domestic cement needs, the investment will generate about 2500 direct and indirect jobs in the country during the construction phase, which will last approximately 24 months. The first phase of the expansion in early 2010, an investment of US$120m, will be inaugurated in the first quarter of 2012. Completion of the project will see Holcim Ecuador's cement capacity jump from 3.5Mt/yr to 5.4Mt/yr.
Holcim blames 32% income drop in third quarter on strong franc
09 November 2011Switzerland: Holcim has blamed a 32% fall in income for the third quarter on the strong Swiss franc.
Holcim's income fell by 32% to USD460m in the third quarter from USD680m in the second quarter of 2011. Over the nine months to 30 September 2011 its income fell by 18% year-on-year to USD1.1bn from USD1.4bn in 2010. Sales mirrored this decline, falling year-on-year by 6.1% to USD5.9bn over the nine months to 30 September 2011 compared to USD6.3bn in 2010. The decline in sales between the second and third quarters was similar at 6.7%.
Despite the fall in total group income and sales, sales of cement rose in both the nine-month and quarterly period. For the nine months to 30 September 2011 sales rose by 5.2% to 108Mt from 103Mt. For the quarter ending 30 September 2011 volume sales rose by 6.2% to 37.2Mt from 35Mt in the quarter ending 31 July 2011.
"The strong appreciation of the Swiss franc during the first half of 2011 continued to negatively impact the financial result during the quarter, albeit to a lesser extent than during the second quarter," said Chief Financial Officer Thomas Aebischer. Holcim's sales during the three months to 30 September 2011 were reduced by USD948m by the currency. Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) were reduced by USD200m, according to Aebischer.
As expected, Holcim noted that many emerging markets enjoyed brisk construction activity. In the Eurozone and in North America growth mainly remained restrained. The Latin America cement sector achieved the strongest rise in sales volumes, followed by Asia Pacific and Europe. In particular, the group's companies in Russia, Singapore, Indonesia, Colombia and Australia made larger contributions in Swiss francs to the sales. Where other group companies improved their results in local currency terms these successes were cancelled out overall by the strong Swiss franc.
In its outlook Holcim has pinned its hopes for consistent growth in the emerging markets of Latin America and Asia whilst singling out Africa and the Middle East for continued poor trading. In Europe and North America Holcim's intends for its lean cost structure to enable it to benefit more than average from any economic recovery. Lastly, the group mentioned that the sharp global rise in energy, raw material and transportation costs call for further price adjustments.
Upgrade work completed at Garadagh
28 October 2011Azerbaijan: Holcim has announced the completion of its expansion and efficiency improvement project at its OJSC Garadagh Cement plant in Azerbaijan. Garadagh Cement's CEO, Raoul Waldburger said that the USD448m investment was coming to a close. "The new kiln at Garadagh Cement will start clinker production by the end of 2011," he said. Work on the project, which was carried out by the Chinese firm CBMI Construction Company (belonging to Sinoma International Engineering), had been expected be completed by the end of June 2011.
Thanks to the new kiln, the plant will switch from wet to dry cement production technology. At the same time, the capacity of the plant will rise 2600t/day to 4000t/day. The cost of the project was split between (USD251m), the Asian Development Bank (USD27m) and the European Bank for Reconstruction and Development (USD170m).