Displaying items by tag: Switzerland

Syria: A report into the alleged activities of Lafarge Syria, now part of LafargeHolcim, claims that the company paid a total of US$5.6m to a number of local factions in Syria, including to the Islamic State group, between July 2012 and September 2014. The report by the US consultant Baker McKenzie in collaboration with PricewaterhouseCoopers was first reported upon by the French satirical weekly Le Canard enchaîne (The Chained Duck).

According to Le Canard enchaîne, a large portion of the payments were paid to ensure the safety of local staff and the free movement of Lafarge trucks, often blocked by fighters at checkpoints. Groups were also reportedly paid as suppliers, as they controlled access to heavy fuel oil or certain raw materials in part of the region. The document prepared by Baker McKenzie states that the Islamic State group could have collected at least US$500,000. The French Ministry of the Economy took legal action in 2016 on possible offenses committed by the cement group Lafarge by operating a plant in Syria, despite EU bans.

LafargeHolcim has maintained its stance that it ‘deeply regrets and condemns the unacceptable mistakes made in Syria’ and states that it called a central investigation as soon as it became aware of the irregularities. On 14 November 2017, police raided LafargeHolcim's offices in Paris and those of its 9.4% shareholder Groupe Bruxelles Lambert (GBL) in Brussels, Belgium. An investigation into the activities continues.

Switzerland: LafargeHolcim has grown its sales and earnings on a like-for-like basis so far in 2017. Its net sales rose by 4.3% on a like-for-like basis to Euro16.7bn in the first nine months of 2017 from Euro17.5bn in the same period in 2016. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) adjusted rose by 9.2% to Euro3.69bn. Cement sales volumes fell to 156Mt from 177Mt although this was reported as a rise of 1.8% on a like-for-like basis.

The cement producer attributed its gains to positive contributions from markets in Latin America, North America and Europe. However, market conditions were reported to be challenging in Asia Pacific and Middle East Africa where it said that actions are being taken to address weakness in key countries.

“While the company delivered solid quarterly results, they do not reflect our full potential. As the market leader, we will hold ourselves to a higher standard than anyone else in our sector,” said Jan Jenisch, group chief executive officer (CEO) of LafargeHolcim. “Today we have reset expectations for the group’s outlook to a level that reflects the current business dynamics. While I am reviewing the business, I have an immediate focus on simplification, cost discipline and performance management.”

South Africa/Switzerland: LafargeHolcim says it is in talks with the board of directors of Pretoria Portland Cement (PPC) regarding a possible transaction in Africa. It added that no agreement with PPC has yet been reached and no assurance could be given at this stage that a transaction will materialise.

Canada’s Fairfax Financial Holdings with AfriSam made an offer for PPC in early September 2017. However, PPC said that the offer was ‘undervalued.’ Nigerian company Dangote Cement has also said that it is interested in buying PPC for the ‘right’ price.

UK/Europe: Cemex’s South Ferriby cement plant is participating in the European Union (EU) supported enhanced energy and resource efficiency and performance in process industry operations via onsite and cross-sectorial symbiosis (EPOS) project. Designed to enable cross-sector industrial working, the project highlights case studies exemplifying ways for companies to use wastes from other industries to deliver greater efficiency, save raw materials, and contribute to more sustainable processes.

The South Ferriby plant has worked with other companies, including the INEOS chemical company, to determine how waste from INEOS’s production could be used as part of the cement manufacturing process. In addition Cemex Poland and Cemex Research Group in Switzerland will also represent Cemex in the project.

“It is a privilege for Cemex’s cement plant in South Ferriby to participate in this project, collaborating with other companies and partners across Europe. This helps to ensure that we operate our cement plant as efficiently as possible, while learning lessons that we can apply to our other facilities,” said Kevin Groombridge, South Ferriby Cement Plant Environment Manager.

Switzerland: Guatemala‘s Cementos Progreso has joined the Cement Sustainability Initiative (CSI) as its first affiliate member. The new membership level was created by the CSI to expand its membership and provide an interim approach to joining the scheme. Affiliate members will be expected to achieve full membership within a three-year timescale.

Switzerland: The Cement Sustainability Initiative (CSI) has published a technology review on current and anticipated developments that can be used to mitigate CO₂ emissions in cement production. The report includes 52 individual papers on existing technologies and seven additional summary papers

The CSI initiated a review of its original technology papers, which were originally developed in 2009, when the sector issued the first ever low-carbon technology roadmap in partnership with the International Energy Agency (IEA), following the United Nations Framework Convention on Climate Change (UNFCCC) Paris Agreement. The European Cement Research Academy (ECRA) and a stakeholder consultant processes have also supported the project.

Key technological fields covered in the current review include: thermal energy efficiency, electric energy efficiency, use of alternative fuels, materials and biomass, reduction of the clinker content in cement, new binding materials, CO₂ capture and storage (CCS), and CO₂ use (CCU). The report also includes an assessment of the level of possible implementation, the challenges and costs of these technologies in future scenarios for 2030 and 2050.

“The publication of these revised and new technical papers sets robust foundations for the overall exercise of updating our 2009 roadmap. It is also a major step in the implementation of commitments made by the cement sector in Paris through the Cement Low Carbon Technology Partnerships initiative (LCTPi) and it demonstrates that the business is more than ever focused on supporting the implementation of the Paris Agreement,” said Philippe Fonta, managing director of the CSI.

The CSI and IEA plan to share the initial results of the updated global technology roadmap for the cement sector at COP 23 in Bonn, Germany.

Middle East/Africa: LafargeHolcim is expanding its specialised Binastore retail network for construction materials in Middle East and Africa. The construction materials producer already operates 500 stores in the region that serves end-consumers, self-builders, masons and smaller contractors. The newly-branded network will sell a broad range of LafargeHolcim’s own products and solutions as well as a variety of other construction materials from partner suppliers.

The first stores operating under the Binastore brand have begun to serve customers in Algeria, Cameroon, Iraq and Lebanon. The format of the stores will vary with sizes from 50m² to 2000m² and it will also include mobile stores in some rural locations. Existing stores in the region will gradually be rebranded as Binastore, while new stores will also open under this brand.

“Our vision is to build the largest retail network for construction materials in the Middle East Africa region so the Binastore brand becomes a household name for small and medium-size builders. Building on our success in Algeria, our goal is to deliver a range of building products, including our own, through multiple channels to meet the needs and lifestyle of our customers who are becoming more and more sophisticated,” said Saâd Sebbar, Region Head Middle East Africa.

The Binastore network is part of LafargeHolcim’s long-term strategy of expanding its retail business in emerging markets. In April 2017, the group announced the rollout of Disensa, a similar concept, in Latin America, where the goal is to have a network of around 1000 stores operating by the end of 2017.

Switzerland: LafargeHolcim has announced the appointment of Jan Jenisch as its new CEO, effective from 16 October 2017. The move follows the resignation of Eric Olsen, who will leave the company on 15 July 2017, two years after he took up the CEO role and assumed responsibility for the merger of Lafarge and Holcim. Between 15 July 2017 and 16 October 2017 Beat Hess, Chairman of the Board, will become interim CEO. Roland Köhler, currently an Executive Committee member, will be appointed Chief Operating Officer.

Jenisch, aged 50, joins from Swiss company Sika AG, a developer and producer of systems and products for the building materials and automotive sectors. He has been the CEO of Sika AG since January 2012. Under his leadership, the market capitalisation of Sika has more than tripled and the company has recently gained admission to the Swiss Market Index. Jenisch joined Sika in 1996 and has worked in various management functions and countries. He was appointed to the Management Board in 2004 as Head of the Industry Division and he served as President Asia Pacific from 2007 to 2012.

Switzerland: Eric Olsen, the chief executive officer of LafargeHolcim, has denied that his departure from the group is connected to payments to armed groups in Syria. Olsen announced his resignation following a review into a conduct of a cement plant in Syria, according to the Associated Press. However, he was found not responsible or even aware of the misconduct. Olsen told reporters at the publication of the group’s first quarter financial results that his decision to leave was not related to Syria but he did acknowledge ‘tensions’ at the company. LafargeHolcim hopes to have recruited a replacement for Olsen by the end of 2017.

Switzerland: LafargeHolcim’s net sales rose by 5.3% year-on-year to Euro5.21bn in the first quarter of 2017 due to higher prices and rising aggregate volumes. Its results were presented on a like-for-like basis adjusted for the group’s divestments in 2016. Operating earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 8.8% to Euro652m. However, cement sales volumes remained flat at 48.1Mt for the period and even this was bolstered by a strong performance in March 2017.

“Continued pricing strength, improving volume momentum and synergies underpinned our results across the portfolio. Our Middle East Africa region performed particularly well with a recovering Nigeria making a notable contribution to earnings growth. India showed encouraging signs in the quarter with the impact of demonetisation now behind us while our US business was robust despite tough prior year comparisons on the back of mild weather in the first three months of 2016,” commented the group’s outgoing chief executive officer Eric Olsen.

By region the group reported falling cement sales volumes on a like-for-like basis in Latin America, Middle East Africa and North America. In Asia Pacific cement sales volumes were stagnant but it reported ‘challenging’ market conditions in Indonesia and Malaysia, and a slowing market in Philippines. However, it said that the impact of demonetisation in India had abated in the period and was now ‘fully’ behind the business.