Strategy 2022 - "Building for Growth"
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Strategy 2022 - "Building for Growth"

Strategy 2022 – “Building for Growth”

LafargeHolcim’s new Strategy 2022 – “Building for Growth” aims to drive profitable growth and simplify the business to deliver resilient returns and attractive value to stakeholders.

Strategy 2022 – “Building for Growth”

In full view of the trends in LafargeHolcim marketplace, They have developed a strategy that plays to their unique strengths as a company, with the aim to drive profitable growth and simplify the business in order to deliver resilient returns and attractive value to stakeholders.

Growth

The building materials market is a CHF 2,500 billion fragmented global market which is forecast to grow 2 to 3 percent per annum, faster than GDP. Through the value driver Growth, the Group will aim to capitalize on this underlying growth, seeking to deliver above-market performance. LafargeHolcim will utilize its strong asset base to invest in markets where greater opportunities exist while being more selective in other markets. The Group will execute more aggressive strategies for Aggregates and Ready-mix Concrete alongside its existing strong Cement business. The Group will build a fourth business segment, Solutions & Products, to take advantage of products and applications that are closer to the customer. This segment, which currently includes precast, concrete products, asphalt, mortars and contracting and services, already generates annual Net Sales of CHF 2.1 billion. The agile, country-based growth strategies will target value-enhancing bolt-on acquisitions to leverage scale and margins.

Simplification & Performance

The value driver Simplification & Performance will create a cost disciplined operating model and a corporate-light structure. There will be a greater focus on countries, with local markets empowered and fully profit and loss accountable. The 35 biggest markets will report directly to Group management and local profit and loss leaders will be assigned for all four business segments. The two Corporate business functions Performance & Cost and Growth & Innovation have been merged and the Group management is reduced to nine members. The simplification will allow LafargeHolcim to improve its cost efficiency considerably. A strong performance culture will be created with simplified KPIs and new incentives that are fully aligned to the Group’s goals. Profit and loss responsibility and accountability is implemented for countries and all four business segments. In Aggregates and Ready-mix Concrete, the Group intends to close the performance gap to the best-in-class performers.

Financial Strength

Financial Strength will ensure disciplined value creation through maintaining an investment grade credit rating. Growth will be funded through divestment of selected assets during the course of 2019 worth at least CHF 2 billion. Capex investment will be kept below CHF 2 billion per annum and excess free cash flow will be used to pay an attractive dividend.

 

Vision & People

The value driver Vision & People further develops the values of trust and integrity, the commitment to Health & Safety and the desire to be at the forefront of sustainable construction solutions and innovation. We want to foster an entrepreneurial leadership style and a focus on the long-term success of LafargeHolcim.

 

LafargeHolcim Greece contributes to rebuilding Santorini port
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LafargeHolcim Greece contributes to rebuilding Santorini port

LafargeHolcim Greece contributes to rebuilding Santorini port

 Santorini Island is one of Greece’s most popular tourist destinations in the Aegean sea, believed to be close to the legendary city of Atlantis. Athinios, the island’s only port, has recently suffered operational problems, necessitating extensive rebuilding.

 Like many ports on Mediterranean islands, Athinios is small and struggling to cope with the heavy traffic of Santorini’s thriving tourist industry. The EUR 8.4 million rebuilding project, awarded to construction company Eretvo S.A., must therefore be carried out at different stages to ensure the facility can be operational at all times. To ensure minimal disruption, submerged caisson technology is being used for the new quay, using ready-mix concrete provided by Lafargeholcim’s Greek subsidiary HERACLES.

Kutaisi bypass road construction
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Kutaisi bypass road construction

Kutaisi bypass road construction

Kutaisi bypass road is under active construction using our cement, above mentioned works are done by  “Acord” and “Black Sea Group”

After construction of new two lanes, traffic on Kutaisi bypass road section will become unilateral in both directions. The project will be constructed following highway standards and will significantly improve road safety.

“This road is part of East West Highway and its functioning in both traffic direction is very important in terms of road safety as well as full operation of the highway. For this reason, the Government of Georgia decided to finance this project.

Estimated completion date of the new two-lane section is autumn 2020. 

Future eco-district in Monaco
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Future eco-district in Monaco

Future eco-district in Monaco

The gigantic construction site for the 18 caissons used for the offshore urbanization of the Principality of Monaco started in September 2017. For this exceptional project, Bouygues Construction called on LafargeHolcim to design the concrete and define the logistics and the very specific technical support to put in place. This unique project, which continues until March 2019, required considerable human and material resources.

Technical audit of the cement plant
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Technical audit of the cement plant

Technical audit of the cement plant

In June 17, 2019 a visit of Holcim Azerbaijan and representatives of LafargeHolcim was held in Georgia.  Aim of this visit was to plan a repair work during operations in cement factory in Poti and technical inspection of factory equipment.

 It is noteworthy that the satisfaction of increased demand on the market requires the detailed planning of technical services.

 Our foreign partners positively evaluated the work of the Cement Division, also pointing out that, as a result of the technical inspection of the factory, the production of high quality cement can be achieved in accordance with the current maximum capacity of the plant.

 

Batumi bypass road is under active construction
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Batumi bypass road is under active construction

Batumi bypass road is under active construction

 One of the important infrastructure project: Batumi bypass road is under active construction using our cement, above mentioned works are done by  JSC Polat Yol Yapi Sanayi Ve Ticaret Representation in Georgia.

Within project following construction is planned: 2 way asphalt-beton road, 19 bridge crossing, 4 road junction, 5 tunnels and 54 water drainage road cross. New bypass road will go through: Makhinjauri, Gantiadi, Kapreshumi, Salibauri, Pheria, Makhvilauri and Khevlachauri.  

Existing road goes through touristic and residential area, creating problems for international transit travel movement.  After project execution, Batumi bypass road (jointly with kobuleti bypass road) will fully relieve pressure on Adjara touristic zoan roads, that will support grow of transit cargo.

The project is financed by Asia Development Bank (ADB) and Asia Infrastructure Investment Bank (AIIB) under signed loan agreement in amount of 329 630 734 GEL.

Project total cement demand is 80,000 t and will be finished in 2020.

 

The first quarter of 2019 Summary
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The first quarter of 2019 Summary

The first quarter of 2019 Summary

 

 The company improved the first quarter of 2019 compared to 2018. Current sales increased by 20% over the previous year. The company’s management positively assesses this event, but this is not surprising for our team. In 2018, we systematically worked with our foreign partners to control product quality and at the same time provide services as efficiently as possible. High product quality and fast customer service has led to an increase in demand for our products. Internal surveys showed dramatic increase of confidence in Lafarge Georgia brand from the retail network, large construction companies for entire product range.

At the same time market research shows future increase of demand, that reflects positive economic situation in the country.

 Our team expects to improve those results in the next quarter of 2019 and makes a lot of effort to ensure the delivery of high-quality cement based on European standards of quality and service.

 Our team expects to improve those results in the next quarter of 2019 and makes a lot of effort to ensure the delivery of high-quality European cement products to users.

Caucasus Build 2019
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Caucasus Build 2019

Caucasus Build 2019

In Georgia, Tbilisi on April 11-14 was organized “Caucasus Build 2019”. “Lafarge Georgia” presented building materials for construction: cement and concrete produced in Georgia. 

Caucasus Build is one of the largest and most attended industrial events in the country and the whole Caucasian region. After two decades of its existence the International Exhibition on Building and Interiors managed to become a well-established and recognized event with high international value and significance.

Year after year attracting thousands of high quality trade visitors, corporate and private buyers, regional and international guests and official government support.

Our partners visit in Georgia
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Our partners visit in Georgia

Our partners visit in Georgia

In February of 2019 partner from LafargeHolcim Franqois Bosc visited  Georgia. During the visit  development of Anaklia Deep Sea project and big infrastructure projects were discussed. Franqois Bosci spoke out before everyone, that LH Group can stably supply high quality aggregate in Georgia.

Lafarge representatives also conduct following works: training for local personal in health and safety procedures and standards and special quality control procedures in RMX plant.

 

According to the data of 2018 “GCC“ has taken the second position
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According to the data of 2018 “GCC“ has taken the second position

According to the data of 2018 “GCC“ has taken the second position

The role of cement producers is important for the implamentation of large infrastructural projects planned for 2019.The most of upcoming projects , according to its specification require  high quality cement , which is fully provided by Lafarge/GCC.

 According to the data of 2018 , Lafarge has taken the second position as a major player in scales of cement market sales.  By 2019 , the company intends to increase the volume of production and improve the service to provide premium quality service for prospective large-scale projects.

LafargeHolcim wins contracts for Europe’s largest transport infrastructure project in Paris
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LafargeHolcim wins contracts for Europe’s largest transport infrastructure project in Paris

LafargeHolcim wins contracts for Europe’s largest transport infrastructure project in Paris

LafargeHolcim has been awarded major long-term contracts worth EUR 110 million as part of the Grand Paris Express (GPE) project. The GPE is the largest transport infrastructure project in Europe and represents a total investment of about EUR 38.5 billion. The project will meet the growing city’s needs for an improved transport infrastructure and will prepare Paris for the 2024 Olympic Games.

To help realize the GPE’s anticipated 200 kilometers of new railway and 68 new rail stations, LafargeHolcim will deliver 600,000 tonnes of aggregates and 260,000 tonnes of cement to produce 650,000 cubic meters of ready-mix concrete. Further LafargeHolcim will use barges on the Seine to sustainably manage excavated earth equal to six times the weight of Burj Khalifa, the tallest building in the world. Jan Jenisch, CEO: “We are proud to be a key partner on this historic project. With this partnership we are demonstrating our leadership in the building materials industry, making a lasting contribution to improving the transport experience of the people living and working in the Paris area. The project once more shows our capacity and reliability in delivering a large amount of high-quality concrete and our ability to provide efficient logistics and supply solutions. As part of our Strategy 2022 – ‘Building for Growth’ we have committed to grow our Aggregates and Ready-Mix Concrete segments and the GPE is a major milestone in the delivery of this commitment.”

To meet the project’s challenging schedule, LafargeHolcim has added mobile ready-mix concrete plants to its existing Parisian ready-mix concrete network, enabling an average production of 300 cubic meters per hour for the GPE. Further LafargeHolcim will remove and treat at least 3 million tonnes of earth from the construction site, then use the excavated material to re-landscape its nearby quarries. For the transportation of both aggregates coming from nearby quarries situated in the Seine valley and the excavated earth, LafargeHolcim will use barges on the Seine river. This solution is more efficient and sustainable than road transportation as two barges can handle the load of 220 trucks. With this concept LafargeHolcim will also meet the challenge of transporting large amounts of material through an urban area with over seven million inhabitants. With the contract LafargeHolcim is continuing a tradition of supplying aggregates and concrete to the French market that has endured for more than one-hundred years. The company aims to work on the GPE over the next 15 years.

 

 

LafargeHolcim completes two further bolt-on acquisitions
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LafargeHolcim completes two further bolt-on acquisitions

LafargeHolcim completes two further bolt-on acquisitions

On February 1, 2019, LafargeHolcim acquired Transit Mix Concrete Co., a leading supplier of building materials in Colorado and subsidiary of Continental Materials Corporation. The acquisition will strengthen LafargeHolcim’s position in a dynamic and growing building materials market of the United States. As part of the transaction, LafargeHolcim takes ownership of Transit’s seven ready-mix concrete plants and a sand quarry. Transit Mix has more than 180 employees.

In January 2019, LafargeHolcim acquired the precast and ready-mix concrete businesses of Alfons Greten Betonwerk in Northern Germany. Greten operates one precast and one ready-mix concrete plant in the state of Lower Saxony. The acquisition is highly complementary to LafargeHolcim’s existing portfolio and will strengthen its existing Solutions and Products segment in the region. Greten employs around 100 people.

Jan Jenisch, CEO: “In line with our Strategy 2022 – ‘Building for Growth’, these acquisitions will generate synergies with LafargeHolcim’s existing operations. With these further bolt-on acquisitions we are delivering on our commitment to accelerate growth in the Ready-Mix Concrete and Aggregates segments. I am pleased to welcome all new employees to LafargeHolcim.”

Supporting a visionary project in Baghdad
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Supporting a visionary project in Baghdad

Supporting a visionary project in Baghdad

Lafarge Iraq is proud to supply approximately 150,000 m³ of specialized concretes to the new Central Bank of Iraq (CBI). The CBI is a four-year project that will be 172m high and is one of the last designs from world-renowned Iraqi architect Zaha Hadid.

 

Construction on the new CBI is already underway and Lafarge Iraq is the exclusive concrete supplier for the project.

“The project not only reflects visionary architecture,” says Khaled El Dokani, country CEO of Lafarge Iraq, “but also a very high level of concrete engineering. We are proud and confident to take this on thanks to our world-class standards and innovative, ultra-high performance concrete products.”