Displaying items by tag: Holcim
Czech Republic: The Office for Protection of Competition (UOHS) of the Czech Republic has approved the merger of Cemex Czech Republic and Holcim Cesko within the country, according to UOHS chairman Petr Rafaj. The merger is part of Holcim and Cemex's European asset swap.
Holcim board changes planned
05 March 2014Switzerland: Holcim's board of directors plan to nominate Jürg Oleas for election as a new board member at the company's annual general meeting on 29 April 2014.
Oleas, aged 56 and a Swiss national, holds an MSc in mechanical engineering from the Swiss Federal Institute of Technology in Zurich. He is the CEO of GEA Group AG, a Dusseldorf-based mechanical engineering company listed on Germany's MDAX stock index. Before joining the GEA Group, he spent nearly 20 years with ABB and the Alstom Group, where he held several management positions.
The Holcim board of directors also intend to propose the election of Wolfgang Reitzle as the new chairman. He will be proposed to succeed Rolf Soiron, who has been the chairman for the past 11 years and a member of the board of directors for 20 years.
Philippines: Holcim Philippines is prepared for more competition with the integration of markets in the Association of Southeast Asian Nations (ASEAN) region by 2015. Chief executive Eduardo Sahagun said that there is no reason that imports will be cheaper than local product especially considering the logistical costs of importing cement into an archipelago, according to the Manila Bulletin.
"We see opportunities in the greater integration of the ASEAN. Our view remains that the growth of cement demand in the medium term will be sustained but are considering other options to supply the market," said Sahagun. "I am hopeful that the government will support the local cement industry given that it is one of the few remaining integrated industries in the country. Local cement manufacturers are burdened by one of the highest energy costs in the region and an improvement in this area will go a long way to improve the industry's competitiveness."
In February 2014 Holcim Philippines announced that it may delay the construction of a US$550m cement plant in Bulacan province due to increasing economic integration in the ASEAN region.
Holcim's net profit soars by 59.3% in 2013
27 February 2014Switzerland: Swiss cement maker Holcim has announced a net profit increase of 59.3% to Euro1.3bn for 2013.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 0.2% to Euro3.21bn, boosted by the performance in the US, the UK, Germany, Ecuador and the Philippines, while India, Mexico, Canada and Brazil had a negative impact. The EBITDA margin grew to 19.8% from 18.4%. After adjustments for restructuring costs that were booked in 2012, EBITDA declined by 5.6%.
Revenue dropped by 6.8% to Euro16.2bn due to exchange rate effects and low prices in some markets. Holcim's cement sales fell by 2.4% mainly due to a decline in the Asia/Pacific business. The high demand in Russia and Azerbaijan boosted sales in Europe.
For 2014 the company expects cement demand to grow in all regions and operating profit to improve in organic terms.
Holcim may delay cement plant construction
21 February 2014Philippines: Holcim Philippines has announced that it may delay the construction of a proposed US$550m 2.5Mt/yr capacity cement plant in Bulacan province that was due for commissioning in 2016.
The announcement was made due to the impending economic integration of the Association of Southeast Asian Nations in 2015. Southeast Asian countries, including the Philippines, will eliminate tariff rates on goods to facilitate free flow of commodities under the Asean Free Trade Area.
"We have to plan as a region because the region is consolidating," said Eduardo Sahagun, Holcim Philippines chief executive, adding that Vietnam and Indonesia both possess excess capacity. Holcim Philippines made several investments in 2013 to boost supply, including plant upgrades in La Union and Misamis Oriental provinces and the revival of a grinding facility in Mabini, Batangas, which will be operational by the third quarter of 2014.
Sahagun said that the company's outlook on cement demand in the country remained positive. "The growth scenario is the same but where the supply will come from will change," Sahagun said.
Ambuja Cements and ACC to see top-level rejig
10 February 2014India: Ambuja Cements and ACC, the Indian arms of Holcim, are likely to see top-level management changes in the coming months. Managing director (MD) of Ambuja Cements, Onne van der Weijde and MD of ACC, Kuldip Kaura, have offered to resign, according to industry sources. Additionally, the sources revealed that Sumit Banerjee, the former MD of ACC who had quit to join Reliance Cement, is likely to re-join ACC as the MD.
The management changes at ACC and Ambuja Cements have resulted from restructuring of the parent company, Holcim, which has been underway since July 2013. Holcim has appointed Bernard Terver as the head of Asia, replacing Paul Hugentobler, who retired in February 2014. Terver, a member of the Holcim Executive Committee, has been appointed to head of a region that encompasses Africa, the Middle East and the Indian subcontinent.
While van der Weijde is said to be unhappy with these management changes, Kaura is said to have been uncomfortable with the new structure, in which ACC will become a subsidiary of Ambuja Cements. Under the restructuring programme, an India management committee that is headed by van der Weijde, was to oversee the integration between the operations of Ambuja and ACC. The two MDs of Ambuja and ACC had to report to van der Weijde, which did not go down well with Kaura, according to unnamed sources. However, it's unlikely that Holcim will take any decision in haste, especially before the restructuring is approved by the Gujarat High Court, which is expected by April 2014.
Only after the court approval can Holcim receive full approval from the Foreign Investment Promotion Board (FIPB), as currently it is only a conditional approval that is subject to legal clearances. Any management change at this juncture will lead to a lot of questioning, which will put the spotlight back on the entire process.
New director general for Holcim in Romania
29 January 2014Romania: The Romanian unit of Swiss cement producer Holcim has announced that Francois Petry will be appointed as its director general as of 1 February 2014. Currently the general manager for aggregates at Holcim France, he joined the Swiss firm in 2008. He will replace Daniel Bach.
Bach has recently been appointed Area Manager for South East Asia and will be in charge of the Holcim subsidiaries from Indonesia, Thailand, Philippines, Vietnam, Malaysia and Singapore, according to a statement from Holcim Romania.
"Romania is one of the most important markets of Holcim Group in Europe, with significant growth potential," said Petry. "It's not going to be an easy job, as the economy is still recovering from the global crisis, but I know that we have here all that is needed to continue on the same successful path: talented and devoted people as well as modern and efficient production facilities."
Holcim Romania operates two integrated cement plants.
Holcim Lanka launches new village
29 January 2014Sri Lanka: Holcim Lanka has launched its fourth 'Holcim Village' in Akmeemana, Galle, in the south of the island nation. Holcim said that by laying the foundation for this new Holcim Village, it demonstrates its commitment towards its 'triple bottom line' of economic return, social responsibility and environmental protection. The village at Akmeemana follows three previous projects carried out in Medirigiriya, Eluwankulama and Puttalam.
The Holcim Village in Galle specifically addresses the needs of the community surrounding Ruhunu cement works. The US$900,000 project will house 13 homeless families in fully fledged housing units with electricity, water and access roads, upon completion.
Brazil: Brazil's antitrust regulator is likely to impose US$1.3bn of fines on six cement producers that were allegedly part of a cartel in the Latin American country.
On 22 January 2014, four of the five members of the board of Brazil's Administrative Council for Economic Defense (Cade) voted for the penalties, while the remaining member requested a review of the process. Under the regulator's rules, during the review period Cade members can change their votes. Cade didn't offer a timetable for a final decision.
According to the current proposal, Brazil's Votorantim Cimentos would be fined US$657m and Switzerland's Holcim would receive a penalty of US$214m. Itabira Agro Industrial would be fined US$173m, Cimpor Cimentos would receive a penalty of US$126m and InterCement, a subsidiary of Camargo Correêa group, would be fined US$102m. In addition, Itambe would receive a fine of US$37.1m. Representatives for companies involved in the investigation couldn't be immediately reached for comment.
Cade said that the cement cartel, which allegedly existed from 1986 - 2007 according to the regulator's investigation, led to increased prices that were passed on to consumers.
Holcim Indonesia sales down by 2% to 8.43Mt in 2013
22 January 2014Indonesia: Holcim Indonesia has reported that its sales volumes fell by 2% year-on-year to 8.43Mt in 2013 from 8.58Mt in 2012, according to the Indonesian Cement Association (ASI). Its sales accounted for 14.5% of the domestic market share.