Editorial comment
It’s all going on at Holcim. In addition to announcing a new CEO – Miljan Gutovic will take over the reins of the giant Swiss cement producer from 1 May – the company has revealed that it plans to spin off its North American business and list it in the US.
Register for free »
Get started now for absolutely FREE, no credit card required.
So why the change? Jan Jenisch, the current CEO who will be overseeing the break-up, was quoted by The Financial Times as saying: “We are too successful in North America, we are too big to manage this as a subsidiary. We have all the tools, we have all the supply chain in place. But we needed more focused management.” With what Jenisch refers to as a “pipeline of acquisition projects”, having access to US-listed shares would also give the company extra leverage in negotiations. The US subsidiary purchased Firestone Building Products in 2021 for US$3.4 billion.
The North American arm of the business generated something in the region of US$11 billion in sales last year – roughly 40% of the group’s total sales. The plan is to increase this figure to US$20 billion by the end of the decade, riding off the back of a boom in construction and infrastructure investment kickstarted by the Biden administration’s infrastructure bill, amongst other factors.
With the listing due to complete in 2025, Jenisch anticipates that the North American business (complete with 850 sites and 16 000 employees) could be worth somewhere in the region of US$30 billion.
Post spin-off, Holcim also expects the push towards decarbonisation to be a key driver of growth for the business, as it seeks to win over climate-conscious investors put off by the cement industry’s sizeable carbon footprint.
Indeed, reducing emissions and decarbonising the cement industry doesn’t just help the planet, it makes good business sense too. Those who make the necessary investments in expertise and technology today, will be the first to reap the rewards. And not just in terms of operational improvements and increased efficiency, but also when it comes to retaining that all important social ‘licence to operate’. As global public awareness around the impact of climate change continues to grow, it will no longer be acceptable for businesses – even those as essential as cement production – to be seen as polluters.
Thankfully, ‘hard to abate’ doesn’t mean impossible. To hear first-hand from industry leaders and technical experts and find out how your company can adapt its processes to become part of the cement industry’s green transition, join us at EnviroTech on 10 – 13 March, in Lisbon, Portugal.
Featuring an expert-led presentation agenda, multiple Q&A sessions, a full-length panel discussion, a 20+ stand exhibition, multiple networking events, and 5-star accommodation, EnviroTech is an unmissable opportunity.
Availability is limited, however, so make sure to register soon to secure your place: www.worldcement.com/envirotech2024
I look forward to seeing you in Lisbon.
