Displaying items by tag: LafargeHolcim
Colombia: The Council of State has confirmed a fine to Cemex imposed by the Superintendent of Industry and Commerce (SIC) for fixing the price of cement. The ruling found that an agreement between Cemex Colombia, Holcim Colombia and Cementos Argos distorted the price, supply and sales of Ordinary Portland Cement in the second half of 2005. In particular the tribunal found that the way in which Argos gave information about Cementos Andino’s involvement in the national market to Cemex and Holcim was be anti-competitive.
ACC forecasts cement demand to grow by 7% in 2018
18 June 2018India: ACC forecasts that demand for cement will grow by up to 7% in 2018. However, intense competition and insufficient consumption will lead to excess capacity it added, according to the Press Trust of India. Demand is expected to benefit from government-based infrastructure projects, rural development and affordable housing schemes.
Around 66% of ACC’s cement demand came from the housing sector, followed by infrastructure with 18% and 16% from the commercial sector. The country has a total cement production capacity of 465Mt/yr but it is only producing 305Mt/yr, giving it an utilisation rate of 66%. Cement plants in the south of the country are pulling the rate down compared to northern, central and eastern regions. Excess capacity is expected to continue until 2019, with the increased outlays on housing, infrastructure development and agricultural sector initiatives.
LafargeHolcim Czech Republic launches new product
15 June 2018Czech Republic: Lafarge Cement, LafargeHolcim’s local subsidiary, has launched a new range of Standard Plus cement products under the trademark Český Čížkovický Cement. The range has a standardised compressive strength of 32.5MPa after 28 days. The products are sold in 25kg bags and are available in bulk.
Spain: LafargeHolcim has chosen its Carboneras cement plant in Almeria as a refrence training centre for its European operations. The plant was selected due to its port and high level of staff expertise amongst other reasons. A group of LafargeHolcim engineers from Poland, France, the UK, Romania, Croatia, Greece and Serbia have all recently visited the site for a training course.
Holcim Azerbaijan launches Spesial Cement product
07 June 2018Azerbaijan: Holcim Azerbaijan has launched its Spesial 400 Cement product. The general-purpose cement product is intended for mid-strength concrete applications. It follows the launch of the Optimal 300 product in 2017.
France: LafargeHolcim France has started the first phase of a Euro100m upgrade project its Martres-Tolosane cement plant. The first phase of civil engineering work has been awarded to Eiffage Génie Civil and it will be carried out until mid-2020. The stage of the project will build the foundations to support a new production line and its preheater tower. The upgrade will also enable the unit to increase its alternative fuel substitution rate to 80% from 30% at present.
Cimencam upgrading Figuil cement plant
06 June 2018Cameroon: Cimencam will spend US$70m to upgrade its integrated plant at Figuil. A new kiln is being built at the plant to meet increased demand from export markets in Chad and the Central African Republic, according to the Cameroon Tribune newspaper. The subsidiary of LafargeHolcim is also building a cement grinding plant at Nomayos.
Algeria: Lafarge Algeria says it plans to focus on exports and roads in 2018. Serge Dubois, director of public relations at the company, said that it intends to export 5Mt or 30% of the market by 2020, according to the El Watan newspaper. The cement producer has already conducted seven export operations since Decemebr 2017 to West Africa. The other priority is to encourage the use of cement in local infrastructure, incuding road expansion plans.
Czech Republic: Lafarge Czech Republic plans to spend nearly Euro4m on upgrades for its Ciskovice plant. Half of this investment has been spent on rebuilding an electrostatic precipitator for the main chimney for the plant. An additional Euro1.5m will be spent on improvements to the warehouse, handling and dosing of alternative fuels for the kiln. Upgrades to improve the unit’s noise and fire protection are also scheduled.
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.