Switzerland: As part of its on-going 'Leadership Journey' Swiss multinational cement producer Holcim has announced that it will be reducing its management structure in Europe to cope with lower levels of construction activity in the region. The group says that proposed measures evaluated and existing ones will lead to annual cost savings of at least Euro99m, a better utilisation rate of capacity and a more efficient allocation of capital expenditure.
The additional cash costs for restructuring in the fourth quarter of 2012 will amount to approximately Euro83.8m including site restoration costs. Write-offs of property, plant and equipment will total Euro339m and will be charged in the fourth quarter of 2012. Consultation procedures with regards to impact on personnel have been initiated in some group companies.
The restructuring accelerates the implementation of the Holcim Leadership Journey. The major part of the anticipated cash costs of Euro166m to realise the Holcim Leadership Journey will be incurred in 2012. The group's payout potential for the 2012 financial year (pre-write-offs) remains. The board of directors will propose the level of the payout at the end of February 2013, as part of the year-end financial statement to be submitted to the annual general meeting.