Displaying items by tag: Holcim

Serbia: The economy ministry will provide Lafarge Srbija, part of the Holcim Group, with a €10.6m subsidy to help finance the construction of a new cement plant in Belgrade’s Obrenovac municipality, according to SeeNews. The government initially announced the cement producer’s plans to build a new plant in August 2024. Lafarge reportedly plans to invest €112m in the project by the end of 2027. The company will hire 51 additional full-time workers by the end of 2026, bringing total employment to 320, which it will maintain for at least five years after completion. The subsidy, equivalent to 9.5% of total investment, will be paid in three tranches between 2026 and 2028.

The Obrenovac plant will produce cement using ash from nearby thermal power plants operated by state-owned Elektroprivreda Srbije (EPS). In February 2025, EPS signed a 10-year agreement to supply 20Mt of ash from the Nikola Tesla B power plant to a consortium of Lafarge Srbija and Elixir Group. Lafarge Srbija also acquired the Jazovnik stone quarry in Vladimirci, 30km from the new site, to establish a complete logistics chain for the complex. The producer operates an existing cement plant in Beocin.

Switzerland: The first nine months of 2025 yielded a 2% year-on-year decline in sales for Holcim, from US$15.3bn to US$15bn. Nonetheless, the company succeeded in raising its recurring earnings before interest and taxation (EBIT) by 2% to US$2.86bn. It recorded year-on-year organic growth of 3% in sales and 11% in EBIT. Holcim noted the centrality of sustainability in its growth in the period. Its sales of ECOPlanet reduced-CO₂ cement rose from 32% to 35% of total cement sales, while its sales of ECOPact reduced-CO₂ concrete sales from 26% to 31% of total ready-mix concrete sales. Its use of construction-demolition materials (CDM) in production rose by 20% year-on-year.

During the period, Holcim continued its on-going diversification through the acquisition of Germany-based walling systems producer Xella. At the same time, the company’s cementitious division continued to target ‘profitable growth in highly attractive markets,’ as exemplified through its Australia-based joint venture Cement Australia’s acquisition of BCG Cement. Across all divisions, Holcim closed 14 value-accretive transactions in the period. It spun off Holcim North America and sold its Nigerian cement business and Iraq-based Karbala Cement Manufacturing.

CEO Miljan Gutovic thanked Holcim’s 45,000 employees, saying "We are delivering on Holcim's vision to be the leading partner for sustainable construction. With accelerating net sales growth in the third quarter of 2025, we delivered strong profitable growth for the first nine months of the year, with a 10% increase in recurring EBIT in local currency and an industry-leading margin of 19%. Margin expansion was driven by our high-value strategy, scaling up our sustainable offering to meet customer demand, and accelerating decarbonisation and circular construction for profitable growth.” Gutovic confirmed Holcim’s full-year guidance for 2025, namely: recurring EBIT growth of 6 – 10% in local currency, with a margin of above 18% and free cash flow before leases of US$2.51bn.

Egypt: Ayat Zanaty has been appointed Chief Financial Officer (CFO) of Holcim subsidiary Lafarge Egypt. Zanaty will be the first woman in the position, advancing Lafarge Egypt’s NextGen2030 strategy.

Zanaty has worked for Lafarge Egypt since 2008, most recently as Senior Manager – Financial Planning Analysis. She holds a bachelor’s of business administration degree in Finance and Marketing from The American University in Cairo.

UK: Holcim UK has appointed Jan-Willem Verkaik as the Project Director for its carbon capture project at its cement plant at Cauldon in Staffordshire.

Verkaik holds over 30 years’ project management experience, having overseen the planning and execution of gas developments in countries including Brunei, Iraq, Norway, Russia and the UAE. Much of his career has been spent working for Shell and related companies. He worked for Brunei Shell Petroleum on offshore projects from 2007 to 2013. He later held positions with Shell and joint-venture Basrah Gas Company. He is a graduate in mechanical engineering from the University of Twente in the Netherlands.

Canada: WorkSafeBC (WSBC) has fined Lafarge Canada’s Richmond cement plant in British Colombia more than US$488,000 following the death of a worker at the site on 19 November 2020. The work safety body found that a large fan at the site had failed, causing debris to strike the employee who sustained fatal injuries.

During the investigation, WSBC found the fan's impeller had been repaired and refurbished around five months before the accident, but that “The firm failed to ensure the installation, inspection, testing, and repair of its equipment was done as specified by the manufacturer or a professional engineer.”
It added that Lafarge Canada, part of Holcim, had also failed to make sure that a qualified person had checked that the equipment was safe before operation resumed. Richmond Royal Canadian Mounted Police worked with WorkSafeBC on the investigation but determined that there had been no criminality involved.

Spain: Oficemen has elected Ricardo de Pablos as its president. He succeeds Alan Svaiter, the CEO Spain of Votorantim Cimentos, who has been in post since mid-2023.

De Pablos is the CEO of Holcim España. He started his career working as a consultant for PriceWaterhouseCoopers. He then joined Holcim España in 2005 holding roles in both the commercial and management side of the business. He became the company’s Commercial Director in 2022 and its CEO in 2024. De Pablos holds a master’s degree in industrial engineering from the Universidad Politécnica de Madrid and an executive masters of business administration from the IE Business School.

Algeria: Holcim El Djazaïr announced that more than 40% of its cement exports are directed to African markets. The company said that it accounts for 35% of the country’s cement sector exports, equivalent to 3.4Mt/yr.

The producer said in a press release that it is supported by an ambitious investment policy aimed at making Algeria an African cement hub. This includes increasing plant storage capacity, creating port loading facilities, building new storage infrastructure near ports and deploying a dedicated road fleet to strengthen its export logistics chain.

Here we go! China-based Huaxin Cement delivered a one-two combo this week by first announcing that it had completed its acquisition of Lafarge Africa from Holcim and then revealing plans to amalgamate all of its overseas businesses into a single subsidiary. The first action feeds into the second but it’s a big move for the international ambitions of the company.

Global Cement Weekly has previously covered Huaxin Cement’s deal to buy Holcim’s majority stake in Lafarge Africa for US$1bn. After being announced in December 2024 the transaction was expected to close in 2025 subject to the usual regulatory approvals. However, various impediments emerged. In March 2025 local press reported that the Senate of Nigeria asked the Bureau of Public Procurement to scrutinise the sale on the grounds of national security and economic sovereignty. A Senate Committee on Capital Market then said in May 2025 that it was going to invite Lafarge Africa for questioning to ‘ensure shareholder rights and transparency of foreign dominance in Nigeria's cement industry.’ Local company and Lafarge Africa shareholder Strategic Consultancy then initiated a legal action to try and block the sale on the grounds that it was conducted secretly and without giving local shareholders the option to buy the shares themselves. These are just the issues that have made the local press. There may be more. The transaction officially closed on 29 August 2025 with Huaxin Cement paying around US$774m. Huaxin Cement is now the majority owner of Lafarge Africa with a 83% share.

Huaxin Cement’s decision to create a specific overseas subsidiary makes sense given the growing size of the business. Its stated aim is to fulfil the group’s “long-term strategic goal of building a world-leading multinational building materials company." The acquisition of Lafarge Africa is one big milestone along this path. In the group’s half-year report, also out this week, it said it had an overseas cement grinding capacity of 24.7Mt/yr with operations in 12 countries including Cambodia, Kyrgyzstan, Malawi, Mozambique, Nepal, Oman, South Africa, Tajikistan, Tanzania, Uzbekistan, Zambia and Zimbabwe.

The new company will make and sell cement, technical services, ready-mixed concrete and aggregates. Notably, it will also specialise in the co-processing of alternative fuels. That last one is mostly implicit in any modern cement enterprise these days but as thermal substitution rates rise in developing markets there are likely to be many battles for commodities and market share ahead. It says it wants to create a new overseas subsidiary in order to “further broaden financing channels, open up and integrate resources, and enhance the operational capabilities of Huaxin Cement.” The plans are reportedly at an early stage, but the new subsidiary will remain under the control of Huaxin Cement in China. The focus on finance also seems particularly important, as the company wants to use its new subsidiary to improve its competitiveness and flexibility in overseas capital markets to help it with financing and mergers and acquisitions. To this end, the new company will be listed on an overseas stock exchange. Hong Kong might be the first contender for that ‘overseas’ bourse with its differing economic and legal systems, whilst remaining firmly Chinese.

To finish, let’s compare the contrasting business strategies of Holcim and Huaxin Cement over the last decade. Lafarge and Holcim merged in 2015, later becoming Holcim as it is today. The company divested many of its assets around the world - including Lafarge Africa, diversified into building systems and spun-off its North American division into Amrize. Huaxin Cement became one of the biggest cement companies in the world as the Chinese sector peaked in the 2010s but has also developed into the leading Chinese cement company overseas. That business outside of China has helped Huaxin Cement to make profits in recent years despite the domestic industry declining in the 2020s. Today, many large-scale cement company divestments all over the world are often linked to Huaxin Cement. Its new overseas company, whatever it is called, is likely to become well known across the world.

Nigeria: Holcim has completed the divestment of its Nigerian business, selling its entire 83.8% stake in Lafarge Africa to Huaxin Cement in a deal valued at US$1bn.

Holcim regional head Asia, Middle East & Africa Martin Kriegner said “We are pleased to have found in Huaxin Cement a trusted buyer that is committed to further developing the business in Nigeria. At the same time, the sale proceeds give Holcim additional capacity for our growth-focused capital allocation. We wish Lafarge Africa and Huaxin Cement continued success.”

Switzerland: Holcim’s net sales fell by 2.2% year-on-year to €8.46bn in the first half of 2025 from €8.65bn in the same period in 2024. However, sales rose by 1.8% when adjusted for local currencies. Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 3% to €1.55bn from €1.50bn. By region sales and earnings rose on an adjusted basis in all territories except in Europe. Here the group said “There is a robust infrastructure project pipeline, and the residential sector is showing signs of recovery.”

The group completed the spin-off of its North America-based business in late June 2025. The group is now promoting its NextGen Growth 2030 strategy, released in March 2025, to advance the business. Also during the reporting period, Holcim made four acquisitions in the aggregates sector: Tribex in Serbia; Klokotnitsa IM EOOD and Zhablyano AD, both in Bulgaria; and SA.RE.MER in France. Its Building Solutions made six acquisitions: Compañía Minera Luren in Peru; Algimouss in France; CPC AG in Germany; Horcrisa in Argentina; and Société des Bétons de la Vallée de Seine (SBVS) in France. It also closed the divestment of Karbala Cement Manufacturing in Iraq.