Displaying items by tag: Strategy

Japan: Taiheiyo Cement says it agrees with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). It is promoting research and development business strategies to mitigate and adapt to climate change. The cement producer is also intending to publish a long-term plan to reduce its CO₂ emissions by 2050.

India: JSW Cement is planning to target the north and north-east of the country after a proposed initial public offering (IPO) in 2020. The company is looking for acquisitions in the region to meet its production capacity target of 20Mt/yr by 2020, according to a company executive quoted by the Economic Times newspaper. The cement producer has purchased two limestone mines via auction at Nagaur in Rajasthan and one in Gujarat. It is also considering building new cement plants near the mines. The company has a production capacity is 12.8Mt/yr at present.

Chile: Cementos Bío Bío is considering expansion plans in Argentina and Peru, according to the El Mercurio newspaper. The plans are part of its 2021 strategy. It also wants to consolidate its leadership in its local market.

Germany: Beumer Group has launched two start-up companies as part of its business strategy for 2018: ‘The best, not the biggest’. The new subsidiaries are intended to develop minimum viable products (MVP) or prototypes that feature minimum equipment and generate sustainable added value. Both companies are intended to use ‘advanced and disruptive’ business ideas to influence and improve existing business models.

BG.evolution is located in Dortmund near the Digital.Hub Logistics innovation centre. Researchers at this company are working on designing the logistics for digital business models in conjunction with the Technical University of Dortmund and other external specialists. BG.challenge in Berlin is intended to develop new business models that may disrupt existing business models from outside. BG.challenge also offers start-up support for young entrepreneurs.

South Africa: Peter Nelson, the chairman of PPC, says that the company is not interested in merger or acquisition activity. Instead the cement producer will focus on its current business strategy by development projects in Sub-Saharan Africa, executing its ‘mega plant’ plan in South Africa and making further efficiency drives in its subdued domestic market. In an interview with Reuters he described talks with LafargeHolcim about a potential takeover as ones that, “…fell short on value”. "PPC is not looking to sell its assets, it's not looking to merge it's assets, it's looking to focus on its business, deliver cash flow and deliver shareholder value," said Nelson.

Chile: Cemento Polpaico has changed its commercial strategy following a poor year for the construction industry in 2016. The cement producer has moved from a geographical approach to one based on the profile and sector of its customers, according to the Diario Financiero newspaper. It has also reorganised its business into three segments: retail, construction and special projects.

LafargeHolcim agreed to sell its controlling stake in Cemento Polpaico to Inversiones Caburga in late 2016. However, the transaction is still awaiting approval by the Fiscalía Nacional Económica.

Vietnam: Deputy Prime Minister Trinh Dinh Dung has asked the ministries of industry and construction to revise the zoning plan for mineral mining for cement production and the cement industry development strategy to meet actual demand. The Ministry of Construction has said that the zoning plan to 2020, which was originally approved in 2010, needs changing following recent geological surveys, according to the Vietnam News Agency. The ministry is also compiling a cement industry development strategy for the 2017 - 2035 period with a vision towards 2025.

The construction ministry will collaborate with provinces and cities to look into the investment and exploitation of minerals for cement production, supply and demand for clinker and cement as well as using heat at cement plants for electricity generation. The country has 70 operational cement production lines with a production capacity of 82Mt/yr but consumption is 72Mt/yr. The government has approved shutting down 14 cement plants with a daily capacity of less than 2500t of clinker each, equivalent to 910,000t/yr, from the strategy since 2011.

Poland: LafargeHolcim is implementing a new three-year strategy in Poland. Going forward, the company will not only sell cement, concrete and aggregates but will also offer its clients a range of services including logistics, design and consulting services amongst others.

If the strategy proves to be successful it will be implemented in other countries where LafargeHolcim is present. Because the company will be focused on the new strategy, it is not planning any major acquisitions in Poland, apart from the possible takeover of an aggregate mine.