Are you looking for a reliable and sustainable cement and building materials provider in North America? If so, you may want to check out Holcim Ltd., a Swiss company that has recently announced its plan to list its North American division in the U.S. stock market. This move will create a separate entity that will focus on delivering innovative and high-quality solutions for the construction industry in the region. In this article, we will tell you more about Holcim’s history, performance, and vision, and why you should consider them as your partner for your next project.
Swiss cement maker to spin off division in 2024
Holcim Ltd., a Swiss company that produces cement and other building materials, saw its shares soar on Monday after it revealed its plan to list its North American division in the U.S. stock market. The company said it would spin off the unit, which aims to achieve more than $20 billion in net sales by 2030, in the first half of next year. Holcim will remain listed on the Swiss SIX exchange.
The North American division, which includes Holcim US, Aggregate Industries, and Lattimore Materials, is the largest cement producer and a leading supplier of aggregates, ready-mix concrete, and asphalt in the region. It operates across 850 sites in 43 states and employs 16,000 people. The division also offers innovative and sustainable solutions for the construction industry, such as ECOPact, a low-carbon concrete, and Firestone Building Products, a roofing and insulation business.
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The move comes after Holcim’s French subsidiary Lafarge admitted to paying millions of dollars to the Islamic State group to keep a plant running in Syria and agreed to pay about $778 million in fines to settle with U.S. authorities. The Islamic State group was then in control of a large part of Syria and was torturing Western hostages.
The scandal, which emerged in 2016, tarnished the reputation of Holcim, which had merged with Lafarge in 2015 to create the world’s largest cement maker. Cultural clashes, financial losses, and antitrust issues were also problems with the merger. Holcim decided to drop the Lafarge name from its brand in 2019 and restructure its operations.
Leadership change
Jan Jenisch, the chairman and CEO , will take charge of the North American business and pass on the CEO role to Miljan Gutovic, an Australian executive, on May 1. Jenisch, who joined Holcim in 2017, has been credited with turning around the company’s performance and leading its transformation into a global leader in sustainable building solutions. He said the U.S. listing would “unleash” the company’s potential to be a desirable partner to customers “in one of the world’s most attractive construction markets.”.
Gutovic, who has been with Holcim since 2018, has been responsible for the company’s operations in Europe, the Middle East, and Africa. He has also played a key role in developing and implementing Holcim’s strategy and innovation agenda. He said he was honored and excited to take on the CEO role and to continue the company’s growth and sustainability journey.
Holcim shares rise on the SIX exchange.
Holcim shares rose 4.3% to 67.02 Swiss francs (about $77.78) each in midmorning trading on SIX in Zurich, after reaching as high as 67.96 francs—or nearly 6%—earlier in the day. The share price reflects the market’s positive reaction to Holcim’s announcement and the expectations of higher returns from the U.S. listing. Holcim said it expects to pay a special dividend of 2 Swiss francs per share to its shareholders after the spin-off.
Holcim’s outlook and challenges
Said it expects to grow its net sales by 5% to 7% annually until 2025 and by 4% to 6% annually until 2030. The company also said it aims to reduce its carbon emissions by 37% by 2030 and to achieve net-zero emissions by 2050. However, Faces competition from other cement makers, such as HeidelbergCement and Cemex, as well as environmental and regulatory pressures.
confident that it can overcome these challenges and become the preferred partner for sustainable building solutions in North America and beyond. The company said it has a strong portfolio of products and services, a solid financial position, and a talented and diverse team of employees. Holcim also said it is committed to creating value for its customers, shareholders, communities, and the planet.