Displaying items by tag: restructuring

Thailand: Siam City Cement has closed the production lines at its Plant 1 integrated cement plant in Saraburi province due to a lack of demand resulting from the coronavirus outbreak. In a statement the company said that, “The aftermath of the COVID-19 pandemic is seriously affecting the overall economic system and has already caused the global business and industrial sectors. The impact on us has been the drastic decline in demand both from domestic and regional markets.” It added that the closure was not expected to have an adverse impact on its operations. It is offering a ‘Mutual Separation Plan’ to affected workers in accordance with and beyond local labour regulations.

Normal production will continue at its Plant 2 and Plant 3 sites. In its 2019 annual report the cement producer said that it operated three cement plants in Kang Koi District, Saraburi Province with a total of six kilns and a combined clinker capacity of 13Mt/yr. However, only five kilns were in operation at this time with a combined production of 12Mt/yr.

This news story has been updated following clarification from Insee Cement.

Switzerland: LafargeHolcim has announced a Euro1.95bn profit in 2019, up by 32% from Euro1.48bn in 2018. The profit was a company record, made possible by ‘lower restructuring costs and financial expenses,’ according to LafargeHolcim CEO Jan Jenisch. Sales were Euro25.1bn, up by 3.1% from Euro24.4bn, ‘driven by good growth in Europe and North America, good price dynamics across all business segments and higher prices in most markets,’ according to Jenisch. “We have achieved all our targets for 2019 and have moved our company to a new level of performance,” he said.

UK: Langley Holdings recorded a 42% year-on-year fall in profit in 2019 to Euro59.9m from Euro103m in 2018. There was a 3.3% decline in sales year-on-year to Euro820m from Euro848m. The company attributed its profit drop to its Marelli Motori acquisition and reorganisation of the Italy-based motor and generator producer. Langley Holdings Chairman Tony Langley said, “The group is now poised for the next phase of its development.”

Malaysia: Following 12 months of graduated succession plan implementation, Cahya Mata Sarawak (CMS) is ready for the retirement of Group Executive Director Ahmad Alwee Alsree Datuk Syed. CMS chairman Tan Sri Abdul Rashid Bin Abdul Manaf accepted Datuk Syed’s retirement with an outpour of thanks for his ‘immeasurable contributions over 15 years of loyal and faithful service.’ All of Datuk Syed’s roles have now passed to successors within the company, with Isaac Lugun Dato taking over as group managing director.

Germany: The executive board of Humboldt Wedag (HWG), a subsidiary of KHD Humboldt Wedag International (KHD), is preparing to cut approximately 80 jobs. It has made this decision in response to a ‘difficult’ business environment in cement plant construction industry in the near future. It said that in light of this, ‘personnel capacities cannot be sufficiently utilised.’ The measures required to implement the reorganisation will be discussed with the works council soon.

Mexico: The board of directors of Grupo Cementos de Chihuahua (GCC) has proposed a new corporate structure to simplify GCC’s controlling shareholder structure and make such structure clearer to investors. The restructuring, if approved by GCC’s shareholders, will consist of a merger between two entities controlling GCC into GCC, in which GCC would be the surviving entity.

Once the corporate restructuring is finalised, GCC’s principal direct shareholder will be Cancem, which will hold a majority and controlling interest in the shares of GCC. In addition, as a result of the proposed corporate restructuring, if approved by GCC’s shareholders as proposed, Cemex will own a direct stake equal to 23% of the outstanding share capital of GCC and a minority stake in Camcem. Cemex has expressed that it expects to hold its interest in Camcem as a long-term investment and will therefore remain an indirect minority shareholder of GCC.

The proposed corporate restructuring has been approved by the Mexican competition regulator, the Comisión Federal de Competencia Económica, and will require the approval of GCC’s shareholders to be completed.