Holcim Group

For the division of the company, see Holcim.
Holcim Limited
FormerlyLafargeHolcim (2015–2021)
Company typePublic (Aktiengesellschaft)
IndustryBuilding materials
HeadquartersZug, Switzerland
Number of locations
2,301 operating sites (2021)[1]
Key people
  • Miljan Gutovic (CEO)
  • Jan Jenisch (Chairman)
ProductsCement, aggregates, concrete, and other building materials
RevenueIncrease SFr 26.8 billion (2021)[1]
Increase SFr 2.68 billion (2021)[1]
Total assetsIncrease SFr 59.9 billion (2021)[1]
Total equityIncrease SFr 30.5 billion (2021)[1]
Number of employees
67,409 (2021)[1]
Divisions
Subsidiaries
Websitewww.holcim.com

The Holcim Group, legally known as Holcim Limited, (formerly known as LafargeHolcim)[2] is a Swiss multinational company that manufactures building materials. It has a presence in around 60 countries, and employs around 60,000 employees. Holcim operates four businesses segments: cement, aggregates, ready-mix concrete, and other products, including precast concrete, asphalt, mortar, and other building materials.

Originally, the company was established as LafargeHolcim by the merger on 10 July 2015 of Holcim and Lafarge, which had combined sales of CHF 26.7 billion in 2019.[3] In the 2020 Forbes Global 2000, it was ranked as the 280th largest public company in the world.[4]

History

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The logo of LafargeHolcim from 2015 through 2021

On 7 April 2014, Lafarge and Holcim announced a merger project to create LafargeHolcim. With a combined market value exceeding $50 billion, the merger was the second largest announced worldwide in 2014.[5] On 10 July 2015, the two companies completed the merger and created LafargeHolcim.[6] On 15 July 2015, the new LafargeHolcim Group was officially launched.[7]

In June 2016, Le Monde reported that Lafarge paid taxes to ISIS middlemen in 2013 to 2014 to keep using their factory in Jalabiya, Northeastern Syria.[8][9][10] On 2 March 2017, the Board of Directors of LafargeHolcim issued a statement[11] indicating that the measures required to continue operations at the plant were unacceptable.

A comprehensive and independent investigation revealed significant errors in judgment that were inconsistent with the company's code of conduct and the company took action. There have been significant changes and developments made to the compliance program and infrastructure since the time of the alleged misconduct.

The former CEO, Eric Olsen, resigned in April 2017 because of the "strong tensions" incurred by the news.[12] However, an investigation conducted by Baker McKenzie concluded Olsen was not responsible for the payments.[13]

In an interview with the French newspapers LeFigaro, Beat Hess, chairman of the board said: "Unacceptable errors were made that the Group regrets and condemns. It's far easier to say this in hindsight but the Group certainly pulled out of Syria too late. All of this should have been avoided".[14]

Meanwhile, Sherpa filed a lawsuit against Lafarge over the payments.[15] In March 2017, French Foreign Minister Jean-Marc Ayrault criticized LafargeHolcim for competing to build the wall on the border of Mexico–United States border promised by President Donald Trump.[16] They were also criticised by presidential candidate Emmanuel Macron.[17]

In May 2017, Jan Jenisch was appointed as the new CEO of LafargeHolcim Group. In March 2018, Jan Jenisch announced a new strategy, Strategy 2022 – ‘Building for Growth’, which aims to drive profitable growth and simplify the business to deliver resilient returns and attractive value to stakeholders.

In May 2018, LafargeHolcim announced the next steps in the simplification of corporate organization. The corporate management positions in Switzerland will be moved to the company's Holderbank site and a new corporate office in Zug.[18]

In January 2019, LafargeHolcim completed the sale of its 80.6% stake in PT Holcim Indonesia Tbk, its Indonesian cement business, to Semen Indonesia Group for US$1.41 billion.[19]

During the summer, in July 2019, LafargeHolcim introduced Plants of Tomorrow, a four-year program that will see the utilization of automation technologies and robotics, artificial intelligence, predictive maintenance and digital-twin technologies across their entire cement production process.[20]

In August 2019, the firm announced a "commercial breakthrough for low-carbon cement", Solidia Concrete, which "reduces the overall carbon footprint in precast concrete by 70%".[21][22]

Later in the year, in Fall 2019, LafargeHolcim announced the allocation of 160 million Swiss francs ($161 million) on 80 projects across Europe to cut annual emissions from its cement manufacturing processes by 15% by 2022.[23]

In September 2020, LafargeHolcim joins the Science Based Targets initiative (SBTi) “Business Ambition for 1.5°C”[24] becoming the first global building materials company to sign the pledge with intermediate targets for 2030, validated by SBTi.[25]

On May 4, 2021, shareholders voted on changing the company name back to Holcim.[26] The new identity of the company was launched on July 8, 2021.[27] This name change applies only to the group company name with all market brands remaining in existence.

In September 2021, Holcim reached an agreement to sell its Brazilian cement business to Companhia Siderúrgica Nacional at an enterprise value of US$1.025 billion.[28]

In May 2022, Adani Group acquired Holcim's stake in Ambuja Cements and ACC for US$10.5 billion.[29] The sale marked Holcim's exit from India after 17 years of operations as part of a strategy to focus on core markets.[30]

In January 2024, Holcim announced plans to spin off 100% of its North American operations. It also announced Miljan Gutovic, the current head of Europe at Holcim, would replace Jan Jenisch as CEO beginning May 1, 2024.[31]

Operational

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Holcim Group operates in around seventy countries, and focuses on cement, aggregates, ready mix and solutions[buzzword] & products. It is a global partner for major infrastructure projects – roads, mines, ports, dams, data centers, stadiums, wind farms, or electric power plants that require major investments.

The group employs around 70,000 people around the world, and reach a combined net sales of CHF 26.7 billion in 2019.[32] The group's central functions had been divided between Zurich and Paris until the end of 2018, but are currently being transferred to the Swiss cities of Holderbank and Zug.[33] The company's research facilities are in l'Isle d'Abeau, near Lyon, France.

Headquartered in Switzerland and listed on the SIX Swiss Exchange, Holcim Group holds leading positions in all regions across the globe. The building materials market is driven by massive global population growth, the shift towards city and urban living[34] and the infrastructure, the highways, bridges, hospitals and schools, that growing populations require.

Management

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Miljan Gutovic took over as CEO of the group on 1 May 2024.

Members of the executive committee are formally appointed by the Board of Directors:[35]

  • Miljan Gutovic, Chief Executive Officer
  • Steffen Kindler, Chief Financial Officer
  • Jamie Gentoso, Member (Solution & Products Business Unit)[36]
  • Toufic Tabbara, Member (North America)[1]
  • Martin Kriegner, Member (Asia)
  • Oliver Osswald, Member (Latin America)
  • Nollaig Forrest, Member (Chief Sustainability Officer)
  • Mathias Gärtner, Member (Head Legal and Compliance)
  • Feliciano González Muñoz, Member (Head of Group Human Resources)

See also

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References

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  1. ^ a b c d e f "Holcim Group 2021 Annual Integrated Report" (PDF). holcim.com. Retrieved 5 May 2021.
  2. ^ "LafargeHolcim shareholders approved all of the Board of Directors' proposals at the Annual General Meeting that took place in Zug today". LafargeHolcim.com. 2021-05-04. Retrieved 2021-05-10.
  3. ^ Record net income and free cash flow lafargeholcim.com, retrieved 27 February 2020
  4. ^ "Forbes Global 2000". Forbes. Retrieved 31 October 2020.
  5. ^ Patrick Winters; Francois de Beaupuy (April 7, 2014). "Holcim to Merge With Lafarge to Form Biggest Cement Maker". Bloomberg. Retrieved April 9, 2014.
  6. ^ "Holcim and Lafarge complete merger and create LafargeHolcim, a new leader in the building materials industry". LafargeHolcim.com. Retrieved 10 July 2015.
  7. ^ "A new leader for a new world: LafargeHolcim officially launched around the globe". LafargeHolcim.com. Archived from the original on 17 July 2015. Retrieved 15 July 2015.
  8. ^ Ayad, Christophe; Guibert, Nathalie; Kaval, Allan; Kellou, Dorothée Myriam; Zerrouky, Madjid (June 21, 2016). "Syrie : les troubles arrangements de Lafarge avec l'Etat islamique". Le Monde. Retrieved May 4, 2017.
  9. ^ "French cement maker Lafarge 'made deals with IS group in Syria'". France 24. June 22, 2016. Retrieved May 4, 2017.
  10. ^ Bouaziz, Franck (April 25, 2017). "Comment Lafarge s'est pris les pieds dans le ciment". Libération. Retrieved May 4, 2017.
  11. ^ "LafargeHolcim concludes independent investigation into legacy Syria operations and issues summary of investigation findings". LafargeHolcim.com. 2017-04-24. Retrieved 2018-11-22.
  12. ^ Baghdijan, Alice (April 24, 2017). "LafargeHolcim CEO's Resignation on Syria Creates Power Vacuum". Bloomberg. Retrieved May 4, 2017.
  13. ^ Bayart, Bertille (April 24, 2017). "Le patron de LafargeHolcim quitte le groupe". Le Figaro. Retrieved May 4, 2017.
  14. ^ "Beat Hess: "Il y a eu des erreurs inacceptables que LafargeHolcim regrette et condamne"". FIGARO (in French). 2017-12-03. Retrieved 2018-11-22.
  15. ^ de Boni, Marc (May 3, 2017). "Un ex-candidat du FN impliqué dans les relations troubles entre Lafarge et Daech". Le Figaro. Retrieved May 4, 2017.
  16. ^ "French minister rebukes LafargeHolcim over Trump wall comment". Reuters. March 9, 2017. Archived from the original on March 9, 2017. Retrieved May 4, 2017.
  17. ^ Dalton, Matthew (March 10, 2017). "LafargeHolcim Faces Warnings on Providing Cement for U.S. Border Wall". The Wall Street Journal. Retrieved May 4, 2017.
  18. ^ "LafargeHolcim trims management costs". The Construction Index.
  19. ^ "LafargeHolcim completes sale of $1.75 billion Indonesian unit". Reuters. 1 February 2019. Retrieved 31 May 2022.
  20. ^ "LafargeHolcim launch 'Plants of Tomorrow'". AggNet. 9 July 2019.
  21. ^ "Solidia, LafargeHolcim in commercial breakthrough for low-carbon cement". Global Construction Review. August 14, 2019. Retrieved 2019-08-17.
  22. ^ Alter, Lloyd (August 15, 2019). "LafargeHolcim is selling CO2-sucking cement for precast, reduces emissions by 70 percent". TreeHugger. Retrieved 2019-08-17.
  23. ^ "Europe's Biggest Cement Maker Steps Up Push for Green Concrete". Bloomberg. 18 September 2019.
  24. ^ "Leading businesses raise the bar for 1.5°C climate ambition | Science Based Targets". Science Based Targets initiative (SBTi). Retrieved 2020-09-25.
  25. ^ "LafargeHolcim commits to net-zero CO2 emissions with 20% specific reduction by 2030 - Cement industry news from Global Cement". Global Cement. 21 September 2020. Retrieved 2020-09-25.
  26. ^ "LafargeHolcim shareholders approved all of the Board of Directors' proposals at the Annual General Meeting that took place in Zug today". LafargeHolcim.com. 2021-05-04. Retrieved 2021-05-09.
  27. ^ "LafargeHolcim rebranded as Holcim Group". www.cnbctv18.com. 2021-07-09. Retrieved 2021-07-14.
  28. ^ "Holcim to sell Brazilian business to CSN in $1 billion deal". Reuters. 10 September 2021. Retrieved 31 May 2022.
  29. ^ "Adani, Asia's Richest Man, Forges $10.5 Billion Deal With Holcim". Bloomberg.com. 2022-05-15. Retrieved 2022-05-16.
  30. ^ Barman, Arijit. "JSW taps Carlyle to back bid for Holcim's Indian cement operations". The Economic Times. Retrieved 2022-04-21.
  31. ^ "Switzerland's Holcim plans to spin off US cement business". www.ft.com. Retrieved 2024-01-29.
  32. ^ Record net income and free cash flow lafargeholcim.com, retrieved 27 February 2020
  33. ^ Revill, John. "LafargeHolcim to close Paris, Zurich head offices, axing 200 jobs". U.S. Retrieved 2018-10-12.
  34. ^ "68% of the world population projected to live in urban areas by 2050, says UN | UN DESA | United Nations Department of Economic and Social Affairs". UN DESA | United Nations Department of Economic and Social Affairs. 2018-05-16. Retrieved 2018-11-22.
  35. ^ "Executive Committee". LafargeHolcim.com. March 2021.
  36. ^ "Jamie M. Gentoso, P.E." March 2021.
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