Low demand forces Holcim to restructure operations in Europe
17 Dec 2012
European cement maker Holcim today said it expects to book CHF510 (€422 million) in fourth quarter charges and write-downs related to the restructuring of its European business.
Holcim said in a statement it has introduced a leaner management structure for Europe "to better adapt to the lower level of construction activity".
It said the rstructuring will lead to an annual cost savings of at least CHF 120 million, a better utilisation rate of the capacity and a more efficient allocation of the capital expenditure.
"Group region Europe continues to adjust production capacity in all segments," the cement maker said in a statement.
The additional cash costs for restructuring in the fourth quarter of 2012 will cost approximately CHF 100 million including site restoration investments. Write-offs of property, plant and equipment will total CHF 410 million, and will be charged in the fourth quarter 2012.
It said some group companies had already initiated consultations with unions on the impact on employees.