Displaying items by tag: LafargeHolcim

Nigeria: Ashaka Cement has spent over US$4m on community projects in Gombe state since 2010. The funding has been invested in social initiatives near its Ashaka cement plant and Maiganga coal mine, according to the Daily Independent newspaper. Its projects include training young people in vocational trades and engineering. It also distributed 5000 safety vests to schoolchildren at a community day.

Switzerland: LafargeHolcim has added human resources (HR) and legal representation to its executive committee.

Feliciano González Muñoz, head of HR, has been appointed as a member of the executive committee. A Spanish national, he has worked for more than 11 years in senior HR roles with the company. González Muñoz has a PhD in Law from Universidad Complutense de Madrid and holds an MBA from Instituto de Empresa, Madrid.

Keith Carr, head of Legal and Compliance, has been appointed as a member of the executive committee. A UK national, he joined LafargeHolcim in 2017. Prior to this he was General Counsel for GE Power. Before that he was Group General Counsel & Member of the Executive Committee for Alstom. Carr gained his LLB law degree from Northumbria University and is a qualified solicitor in England and Wales.

Additionally, the group’s Corporate Growth and Performance function will be organised into three Centres of Excellence, which will directly report to the Region Heads. This is intended to lead to a more agile organisation, closer to the markets and providing strong global platforms for sharing best-demonstrated practice. Current Corporate Growth and Performance function head Urs Bleisch will lead the reorganisation but he will step down from his current position on the executive position to do so.

All changes will be effective from the start of January 2019.

Algeria: Ciment Lafarge Souakri (CILAS) has started its first clinker export from the port of Annaba to West Africa. The consignment totalled 35,000t, according to the El Watan newspaper. LafargeHolcim Algeria said that the delivery from its subsidiary was part of its target to export 2Mt of surplus production by 2020. The 2.7Mt/yr CILAS plant started production in mid-2016.

Jordan: Residents have protested outside a court against the Jordan Cement Company on environmental grounds. The protestors allege that the cement producer’s plants have caused ‘severe’ pollution that has negatively effected the health of those living nearby, according to the Jordan Times newspaper. In a statement the demonstrators claimed to represent thousands of local stakeholders and plaintiffs in a long running campaign against the subsidiary of Switzerland’s LafargeHolcim.

UK: Aggregate Industries UK has appointed Guy Edwards as its chief executive officer (CEO) starting in January 2019. He succeeds François Petry, who was recently appointed Country CEO of Lafarge France and Market Head for France and Belgium.

Edwards holds over 30 years of experience in the construction industry, with 25 years of this in the UK. He is currently CEO for the company’s Aggregates and Construction Materials (ACM) business in the US. Over the years, he has held a variety of senior roles within Aggregate Industries, both in the UK and US. In 2013, Guy served as a UK Executive Committee member responsible for European operations and, in 2014, was named chief operating officer (COO) for the AI US business.

Edwards received a Bachelor of Science in Engineering from Leeds University in England, graduating with honours in 1988. He has also completed the International Leadership Program at the International Institute for Management Development in Switzerland.

India: The board of ACC has approved plans to build a new cement plant at Ametha, District Katnl in Madhya Pradesh. The unit will have a clinker production capacity of 3Mt/yr and a cement production capacity of 1Mt/yr. The subsidiary of Switzerland’s LafargeHolcim plans to expand a 1.6Mt/yr grinding plant at Tikaria, Uttar Pradesh and a 2.2Mt/yr grinding plant also in Uttar Pradesh. The board also agreed to build a 1.1Mt/yr grinding plant at an existing unit at Sindri in Jharkhand. The projects are expected to cost around US$417m.

Germany: Holcim Deutschland’s Lägerdorf cement plant has won a training award from the Chamber of Industry and Commerce (IHK). Peter Krohn of the IHK praised the plant’s quality of training, focus on younger people and attention to worker development. Holcim Deutschland employs around 2100 people in Germany and the Netherlands. Around 40 young people are undergoing training at Lägerdorf in various engineering and mechanical disciplines.

Philippines: China’s Huaxin Cement is preparing to sign a US$245m engineering, procurement and construction (EPC) contract with Holcim Philippines to build a new production line at its Davao plant. The Kalayaan 2 project includes a 6000t/day clinker production line, a 7MW waste heat recovery unit and upgrades to a 3000t/day production line. The contract follows a previous project between the companies on a mill at the plant.

Guinea: LafargeHolcim Guinée has ordered a modular grinding plant from China’s CBMI. The deal was signed in late November 2018 and was launched in early December 2018. The project will be based at Dubréka, north of Conakry. For CBMI it is the first modular grinding plant it has officially sold.

Fascinating information came out of LafargeHolcim last week as part of its Capital Markets Day 2018. The building materials company said it is expecting sales growth to slow in 2019 but earnings to grow. Jan Jenisch, the chief executive officer (CEO), said that the group was ‘aggressively’ moving forward in aggregates and ready-mix concrete. Alongside this, its recent divestment of its Indonesian operations was declared a ‘major’ milestone in focusing its portfolio and cutting down on debt.

Graph 1: LafargeHolcim’s major product lines by sales (%), 2015 – 2017. Source: Company reports.

Graph 1, above, gives a good idea of how LafargeHolcim has been changing its business. Cement sales as a percentage of total sales have been cut to 60% in 2017 from 67% in 2015. Ready-mix concrete and other sales (including asphalt) have risen to 26% from 19%. Aggregate sales have stayed at around 14%. If the world is making too much cement then LafargeHolcim is switching to concrete and balancing out its supply chain. Naturally, this was backed up in one of its investor presentations showing a more even split in the world building materials market between cement, concrete and aggregates. This fits with Jenisch’s background as the former head of Sika. That company manufactures a wide range of specialty chemicals for the construction and automotive industries.

That shift in focus could also be seen at the inaugural Global Cement and Concrete Association (GCCA) event in late November 2018 where concrete was very much the centre of attention from a sustainability angle. The main companies involved with the GCCA are vertically integrated ones and, by switching its product balance, LafargeHolcim seems to be moving in the same direction. In a sense this is a continuation of the synergy-seeking that was promised when Lafarge and Holcim merged in 2015.

Graph 2: Forecast cement demand growth in LafargeHolcim markets. Source: LafargeHolcim investor presentation 2018.

The other interesting question for LafargeHolcim is where next for growth? The graphic above shows a number of promising areas, including India and east Sub-Saharan Africa. Also, note the slowdown forecast for China. That renewed faith in India is timely this week given the expectation by the Indian Cement Manufacturers Association that cement demand growth in the country will rise by at least 10% in the current financial year to March 2019. If the momentum holds up after a strong first half then it will mark the fastest increase for the region since the market slowed down in 2011. LafargeHolcim doesn’t appear to be on course to grow significantly in India anytime soon but it has major ‘skin in the game’ in a promising market.

Another indication of the vibrancy of the Indian market also came this week from the Cement Sustainability Initiative (CSI) with the results of a status review from its low carbon technology roadmap (LCTR). The results were fairly good for such a large industry, with falling CO₂ emissions intensity, growing co-processing rates and a decreasing clinker factor. This report carried a sad note given that the work that the CSI does will be taken over by the GCCA in January 2019. However, if this is the last we’re going to hear from the CSI, then they’ve left on a high note.

Lastly, leafing through old financial reports may not be everybody’s idea of a good time but it does let one see how LafargeHolcim’s product mix has changed. It also gives one time to catch up with old faces. Like Bruno Lafont and Eric Olsen. Once again those two former executives popped up in the latest twist of the on going Lafarge Syria legal case as a group of Yazidi women have applied to become ‘civil parties’ in the case. Whether the war crimes inflicted upon the Yazidis can be pinned on Lafarge Syria remains to be seen. Yet, for all of the LafargeHolcim’s business reorganisation, its predecessor’s conduct in Syria continues to make headlines. However much progress the company makes in turning around its fortunes, if it can be, this will continue to overshadow everything. Once a line is drawn under the affair then LafargeHolcim can move on properly.