LafargeHolcim
is considering withdrawing from several markets as part of its efforts to make
last year's mega-merger a success, Chairman Beat Hess told weekly
Sonntagszeitung.
"We will
be present in less countries for sure," Hess was quoted as saying. The
sale of operations in several countries was an option, he said.
The world's
largest cement group, created by a merger between Frances's Lafarge and
Switzerland's Holcim, generates 80 percent of its operational earnings before
taxes, depreciation and amortization in 25 countries, the paper quoted Hess as
saying.
He said there
was "much potential for improvement" in another 25 countries.
"Either we succeed in strengthening these operations through targeted
investments or we have to see whether other owners could do better."
For the
remaining 40 countries the Switzerland-based firm operates in, the question was
how to reach the target to earn its capital costs in the foreseeable future and
"whether it would not be better to invest elsewhere the proceeds coming
from a sale."
The company
has already exceeded its 2016 goal of making divestments worth 3.5 billion
francs and said in August it had extended the program to 5 billion francs by
the end of next year.
In addition to
the 250 jobs which are shed as part of a reorganization of global functions the
group will cut more jobs in its country organizations and it could close more
plants, the paper quoted the chairman as saying.
"In big
markets, where both Lafarge and Holcim were present, we still have to adjust
structures," the chairman said.
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