Displaying items by tag: Switzerland
Switzerland: 2016 data published by the Cement Sustainability Initiative (CSI) from its Getting the Numbers Right (GNR) report shows no change in CO2 emissions in recent years. Gross specific CO2 emissions from cementitious products rose slightly from 2014 and net specific emissions have remained the same. However, the data shows considerable improvement since a baseline in 1990 with both metrics falling by over 15%.
Other notable figures from the latest report include an 11% year-on-year drop in clinker volumes to 606Mt in 2016 from 680Mt in 2015 and a 12% fall in cementitious volumes to 818Mt from 916Mt. Kiln fuel use, specific electricity use and the percentage of clinker in cement all rose slightly. However, the percentage of alternative fuels used increased to 16.7% from 15.9%.
The GNR report presents information on energy efficiency and CO2 emissions from the worldwide cement industry. Participants use the CSI CO2 and Energy Accounting and Reporting Standard for the Cement Industry to provide information and 80% of the data provided is independently assured. The report uses information from 849 cement manufacturing plants around the world, both integrated and cement grinding units, representing 19% of global cement production.
Is the Holcim takeover of Lafarge complete?
30 May 2018LafargeHolcim’s announcement this week that it is to close its headquarters in Paris is the latest sign of the tension within the world’s largest cement producer. The decision is rational for a company making savings in the aftermath of the merger of two rivals – France’s Lafarge and Switzerland’s Holcim – back in 2015. Yet, it also carries symbolic weight. Lafarge was an iconic French company that had been in operation since 1833. Its hydrated lime was used to build the Suez Canal, one of the great infrastructure projects of the 19th century.
In the lead up to the merger in 2015 the union of Lafarge and Holcim was repeatedly described as one of equals. However, the diverging share price between the two companies killed that idea on the balance sheets in early 2015. Renegotiation on the share-swap ratio between the companies followed with an exchange ratio of nine Holcim shares for 10 Lafarge shares. In the end Holcim’s shareholders ended up owning 55.6% of LafargeHolcim. Lafarge’s Bruno Lafont lost out on the top job as chief executive officer (CEO) in the frenzy but the role did go to another former Lafarge executive. The new company also retained its former corporate offices in both France and Switzerland.
Since the merger LafargeHolcim has underperformed, reporting a loss of Euro1.46bn in 2017. Former senior executives from Lafarge have become embroiled in a legal investigation looking at the company’s conduct in Syria. LafargeHolcim’s first chief executive officer Eric Olsen resigned from the company in mid-2017 following fallout from a review into the Syria affair. Both Olsen and Lafont are currently under investigation by the French police into their actions with respect to a cement plant that the company kept operational during the on-going Syrian conflict. Olsen’s replacement, Jan Jenisch, is a German national who previously ran the Swiss building chemicals manufacturer Sika.
Regrettably the closure of LafargeHolcim’s corporate office in Paris will also see the loss of 97 jobs although some of the workers in Paris will be transferred to Clamart, in the south-western suburbs of the city. Another 107 jobs will also be cut in Zurich and Holderbank in Switzerland.
One more knock at the local nature of cement companies in the very international arena they operate in doesn’t mean that much beyond bruised national pride. British readers may mourn the loss of Blue Circle or Rugby Cement but the country still has a cement industry even if it mostly owned by foreign companies. France’s industry is doing better as it recovers following the lost decade since the financial crisis in 2008.
Jump to 2018 and LafargeHolcim is being run by a German with links to Switzerland, Holcim shareholders had the advantage during the merger, its former Lafarge executives and assets are facing legal scrutiny over its conduct in Syria and Lafarge’s old headquarters in Paris are being closed. LafargeHolcim in France still retains the group’s research and development centre at Lyon and a big chunk of the local industry. Yet Holcim has held an advantage ever since the final terms of the Lafarge-Holcim merger agreement were agreed so this slow slide to Switzerland is not really a surprise. From a distance it feels very much like the Holcim acquisition of Lafarge is finally complete.
LafargeHolcim to close Paris headquarters
25 May 2018France/Switzerland: LafargeHolcim plans to close its headquarters in Paris. The decision to move the company’s head office solely to Switzerland follows a cost cutting review at the building materials company. It will also close its corporate office in Zurich. Remaining jobs in Switzerland will be moved to the company’s Holderbank site and a new corporate office in Zug. In Paris, remaining positions will be moved to Clamart. The plan is expected to be completed by the end of 2018. Around 200 jobs will be affected.
“This painful but necessary simplification step is key to creating a leaner, faster and more competitive LafargeHolcim,” said chief executive officer Jan Jenisch. The move follows decisions to close offices in Singapore and Miami.
The decision to close its headquarters in Paris marks a further move away from the ‘merger of equals’ announced when France’s Lafarge merged with Switzerland’s Holcim in 2015. Since the merger LafargeHolcim has underperformed reporting a loss of Euro1.46bn in 2017. Former senior executives from Lafarge have become embroiled in a legal investigation looking at the company’s conduct in Syria. LafargeHolcim’s first chief executive officer Eric Olsen resigned from the company in mid-2017 following fallout from a review into the Syria affair.
Turboden provides update on waste heat recovery projects for cement plants in Turkey, Switzerland and Italy
15 May 2018Italy/Switzerland/Turkey: Turboden has released information on its latest waste heat recovery (WHR) projects using its ORC turbogenerator for cement plants in Turkey, Switzerland and Italy.
In Turkey CTP Team and CTN Group have signed an order with Turboden for the supply of a 7MW ORC WHR unit with air cooled condenser to be installed in Çimko Çemento Narli’s plant. Turboden says that since the plant is located in an area where there is no water available for the cooling system, the ORC technology offer advantages over steam technology.
In Switzerland CadCime SA and LafargeHolcim have ordered a 1.3MW WHR unit that recovers heat from the existing pressurised water circuit, used for the district heating network. The order is the third from LafargeHolcim for an ORC unit from Turboden.
In Italy a 2MW WHR plant with direct heat exchange is being installed at Cementi Rossi’s plant. Start-up is schedule for the second quarter of 2018. This project received an award from the European Commission under the framework of Horizon 2020, whose main objective is to develop new solutions to recover waste heat in energy intensive industries such as cement, glass, steelmaking and petrochemical and transform it into electric energy.
Switzerland/Uganda: LafargeHolcim has been criticised by two Swiss non-governmental groups (NGO) over alleged child labour issues in Uganda. The Protestant Church group Bread For All the Catholic Lenten Fund have accused the multinational of delaying compensation to alleged child labour victims, according to the Swiss Broadcasting Corporation. LafargeHolcim has denied the accusations. The NGOs have published video statements by children testifying that they previously worked for suppliers to Hima Cement, a local subsidiary of LafargeHolcim.
A report published in 2016 claimed that around 150 Ugandan children had worked for 10 years in quarries that supplied Hima Cement with pozzolana. Both Hima Cement and its parent company denied the claims. Later, Hima Cement subsequently announced that it would stop buying raw materials from small-scale miners and only source them from mechanised quarries that employ adults. At the same time LafargeHolcim commissioned an investigation that concluded that there was no evidence that children had worked for Hima Cement or for any of its other suppliers.
Switzerland: LafargeHolcim has blamed falling earnings in the first quarter of 2018 on poor weather in North America and Europe. Its recurring earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 7.7% on a like-for-like basis year-on-year to Euro587m from Euro678m in the same period in 2017. Its net sales rose by 3.1% to Euro4.89bn and its cement sales volumes rose by 3.2% to 47.7Mt on a like-for-like basis.
By region cement sales volumes fell on a like-for-like basis in Europe, Middle East Africa and North America. LafargeHolcim said that cement volumes were down slightly in its Middle East Africa region due to a mixed outlook in the region with ‘challenging’ conditions in key markets. In Asia Pacific it said that China and India drove its growth in sales and profits but that there was continued pressure in South East Asia.
“Though the quarter was affected by several headwinds, we expect the strength of our portfolio and the benefits of our new strategy to become increasingly visible over the full year. That makes us confident we will deliver on our 2018 targets,” said Jan Jenisch, Group Chief Executive Officer of LafargeHolcim. He added that the group was conducting its Strategy 2022 reorganisation plan.
France: Vicat’s sales in Turkey, the US and Kazakhstan have driven its growth in the first quarter of 2018. Its sales revenue for its cement business rose by 10.9% year-on-year at constant scope and exchange rates to Euro290m in the first quarter of 2018. Its cement sales volumes rose by 6.5% to 5.2Mt from 4.9Mt.
“We posted significant business growth in Turkey, the US and Kazakhstan, excluding currency effects. The gradual recovery continued in France and India was boosted by the start-up of new infrastructure projects. Conversely, we recorded a business contraction in Switzerland during the first quarter as a result of adverse weather conditions, especially in March 2018, and the completion of a number of major projects. The group’s business trends in Egypt were hampered by the military operations underway to restore security in its production area,” said group chairman and chief executive officer (CEO) Guy Sidos.
Switzerland: LafargeHolcim has appointed Feliciano González Muñoz as its new Head of Human Resources (HR). He takes on the role from 1 May 2018. He will succeed Caroline Luscombe who has decided to pursue opportunities outside of the company. González Muñoz will report to the group’s chief executive officer Jan Jenisch. However, in line with simplification and lean management, the Head of HR will not be a member of the executive committee, bringing it down to eight members.
Currently HR Director for Europe, Feliciano González Muñoz, aged 54 years and who is a Spanish national, has worked for more than 11 years in senior HR roles with the company. Feliciano González Muñoz has a PhD in Law from Universidad Complutense de Madrid and holds an MBA from Instituto de Empresa, Madrid.
France/Switzerland: A technology roadmap by the Cement Sustainability Initiative (CSI) and the International Energy Agency (IEA) sets out a combination of technology and policy solutions that could reduce CO2 emission from the cement industry by 24% by 2050. The Low-Carbon Transition in the Cement Industry report updates the first global sectoral roadmap produced in 2009. It aims to identify and develop international collaborative efforts and provide evidence for public and private sector decision-makers to move towards a more sustainable cement sector that can contribute to long-term climate goals.
“The first exercise carried out in 2009 had demonstrated its added value to help the sector identify solutions and enablers to reduce its CO2 emissions and it was essential to adjust this projection with the latest robust emissions data from the CSI’s Getting The Numbers right (GNR) database and the potential of latest technologies developed by the European Cement Research Academy (ECRA),” said Philippe Fonta, managing director, CSI of World Business Council for Sustainable
Development (WBCSD).The report aims to present a way to help the cement industry play its part it meeting the IEA’s 2°C Scenario (2DS) by 2050, which seeks to limit average global temperature increases to 2°C. The report forecasts that global cement production is set to increase between 12 - 23% by 2050 due to rising global population and urbanisation. Despite increasing efficiencies, direct carbon emissions from the cement industry are expected to rise by 4% globally by 2050 under the IEA Reference Technology Scenario (RTS), a base case scenario that takes into account existing energy and climate commitments under the Paris Agreement. The CSI and IEA argue that the low-carbon transition of the cement industry can only be reached with a supportive regulatory framework as well as effective and sustained investments. They say that meeting the RSI requires more investment, with a
potential doubling to meeting the 2DS. Governments, in collaboration with industry, can play a determinant role in developing policy and regulatory mechanisms that unlock the private finance necessary for such a boost in investment.The roadmap uses a bottom-up approach to explore a possible transition pathway based on least-cost technology analysis for the cement industry to reduce its direct CO2 emissions in line with the IEA’s 2DS. Reaching this goal, the CSI and IEA say, would require a combination of technology solutions, supportive policy, public-private collaboration, financing mechanisms and social acceptance.
Improving energy efficiency and switching to alternative fuels, in combination with reducing the clinker content in cement and deploying emerging and innovative technologies like carbon capture and the use of alternative binding materials are the main carbon-mitigation methods available in cement manufacturing. Further emissions savings can be achieved by taking into account the overall life cycle of cement, concrete and the built environment. The roadmap outlines policy priorities and regulatory recommendations, discusses investment stimulating mechanisms and describes technical challenges with regard to research, development and demonstration.
Thomas Schmidheiny to leave board of LafargeHolcim
04 April 2018Switzerland: Thomas Schmidheiny has decided not to stand for re-election for the board of LafargeHolcim. In recognition of his years of service to LafargeHolcim and its predecessor company Holcim, the board of directors has decided to name Schmidheiny honorary chairman of the group. He will remain one of the group’s main shareholders. Fellow board member Bertrand Collomb has also decided to stand down.
“For almost 50 years Thomas Schmidheiny has made a significant contribution to the success of Holcim and later LafargeHolcim. He was instrumental in successfully expanding into promising growth markets and has made Holcim one of the leading companies in its industry. On behalf of the board and all employees I would like to thank Thomas Schmidheiny for his exceptional contribution to our company,” said Beat Hess, chairman of the board of LafargeHolcim. He also thanked Collomb for his contribution to Lafarge and then LafargeHolcim.
Schmidheiny began his career at Holcim in 1970. He became a member of the executive committee six years later and served as chief executive officer (CEO) between 1978 and 2001. After joining the board of directors in 1978 he was chairman of the board of directors from 1984 until 2003. Later, he was a key part of the merger between Holcim and Lafarge that completed in 2015.
Collomb joined Lafarge in 1975. After serving in different management positions, including Head of North American operations, he served as chairman and CEO of Lafarge from 1989 to 2003, as chairman until 2007 and then subsequently director until 2012. He was named honorary chairman of Lafarge in 2007 and joined LafargeHolcim’s Board in 2015. Collomb has also decided not to stand for re-election at the upcoming annual general meeting, in order to follow a customary age limit of 75 years.
All other current members of the board of directors will be proposed for re-election at the annual general meeting. This will include: Beat Hess; Oscar Fanjul; Paul Desmarais, Jr; Patrick Kron; Gérard Lamarche; Adrian Loader; Jürg Oleas; Nassef Sawiris; Hanne Birgitte Breinbjerg Sørensen; and Dieter Spälti. Following the election of the nominees the board of directors will drop in size to 10 members compared to 12 at present.