Friday, July 27, 2012

Cement giant Holcim is suffering from the Spanish flu

Cement factory in southern Spain, Lorca is closed down for good. HO
The cement company in Spain sweeps a third of the jobs and closes at the end of year production plant. This affects up to 295 jobs at various locations. Until when the measures are implemented, is still open. Sven Millischer

Holcim is the job cuts in Spain is not big on that stuff. Only on the website of the Spanish cement company to find a dry communiqué. This Holcim announces plans to reduce about a third of the workforce in Spain. This affects up to 295 jobs at various locations on the Iberian Peninsula. In this figure, and a social plan was agreed after negotiations with employee representatives earlier this month.

Thus, the cement plant in the southern Spanish city of Lorca will be closed by year end. It was built in the 1960s. Last worked there for 60 employees. Also, the two cement kilns in central Spain Yeles plant be shut down indefinitely. Even with construction materials such as aggregates, concrete or mortar Holcim plans to cut output and "some facilities" quite close to. In addition, the administration should be centralized and streamlined.

Every third point is omitted


After completion of the restructuring are expected around 750 people working for Holcim España. Until when the measures are implemented, according to company spokesman Peter pusher is still open. According to Business Report 2011 was 31 December last year, still employs 1257 people in Spain. Thus, the Swiss cement giant painted within a year in Spain, more than any other agency. Not least, the reduction is carried out also in the more than 30 ready-mix concrete panels, which were driven by the booming housing. As a reason for the drastic cut will save Holcim España to see the five-year recession in the Spanish cement market. Since the peak of the housing bubble in 2007, cement sales fell off by 63 percent.

In the first months of 2012, the situation for the Spanish national company has deteriorated dramatically in the first four months, sales slumped in comparison to the same period by 40 percent. Forecasts assume that the cement consumption of 20 million tonnes last year could shrink by 25 percent again. By comparison, Holcim Spain had before the restructuring of an annual output of cement of more than 5 million tons. The built up excess capacity are therefore substantial.

Close is expensive: In early January, Holcim business in Europe a copyist of fixed assets and goodwill recorded over 328 million francs, three quarters of them in Spain. In May it was the restoration of the balance sheet. The Swiss parent company, 99.9 percent of the vote in the Spanish subsidiary, had to inject fresh cash capital increase by Holcim Spain were almost 55 million new ordinary shares with a value of 325 million €.

The temporary end of a "boom and bust" phase, the former CEO Markus Akermann charge recorded. As the situation on the Spanish property market has already darkened, Holcim, bought more. This, to put foot in Catalonia and to advance the vertical integration with aggregates, ready-mix concrete and dry mortar in Spain. In mid-2008 bought the building materials from the mining group Anglo American, the daughter of Tarmac Iberia with over forty ready-mix concrete and eight quarries. Nearly 150 million euros left the acquisition cost, Holcim.

A real and important in the purchase

"With this acquisition we are strengthening our position from a strategic perspective in an important European market," let the cement giant announced at that time in the "commercial paper". The fact that the economy will cool down, you knew - Acquisitions in the construction industry would not be assessed from short-term perspective. The purchase is still correct and important, the press officer at the time.

Holcim is active since 1980 in Spain. In the southern European country has taken place over the last 20 years an enormous exaggeration of the real estate market. Instead of speculating on stocks, the Iberians on residential property. In 2006 began the construction of nearly 800 000 homes, more than in Germany, France and Italy.