HeidelbergCement portfolio optimisation

(Posted on 14/01/19)

HeidelbergCement has made good progress with the acceleration of its portfolio optimisation during the past weeks. The company closed the divestment of its 50% share in Ciment Québec and its minority participation in Syria in December 2018. In addition, a former cement plant area in Egypt close to the river Nile within the Cairo metropolitan area has been auctioned, and the divestment of the Ukrainian business has been signed. Closing of the latter transactions is expected to occur in 2019. All these divestments together have a total value exceeding €150 million, and will have a slightly positive effect on operating EBITDA in 2019 compared with 2018.

“We deliver on our action plan and have accelerated our efforts to improve our portfolio and generate cash in order to speed up deleveraging,” said Dr. Scheifele, Chairman of the Managing Board of HeidelbergCement. “For 2018, we expect to realise about €500 million in disposal proceeds and we are well on our way to reach our target of €1.5 billion by the end of 2020. We remain committed to improving shareholder value and maintaining a solid investment grade rating.”

At HeidelbergCement’s Capital Markets Day in summer 2018, the company announced its goal to reduce complexity and risk by disposing of non-core businesses, market positions with high risks or limited growth potential and idle assets. The original target was to generate proceeds from disposals in the range of €1 billion to €1.5 billion in the three-year period from 2018 to 2020. On the occasion of the Q3 2018 earnings report on 8 November 2018, HeidelbergCement announced an action plan to drive earnings and cash flow generation. As part of this action plan, the company intends to accelerate disposals and review further divestment potentials with the goal to reach or even exceed the upper end of the target range set at the Capital Markets Day.

HeidelbergCement is one of the world’s largest integrated manufacturers of building materials with leading market positions in aggregates, cement, and ready-mixed concrete. The company employs some 60,000 people at more than 3,000 locations in around 60 countries.

Latest News

Rio Tinto to invest in Pilbara desalination plant

Rio Tinto plans to invest US$395 million1 in a seawater desalination plant in the Pilbara, Western Australia... Read more

BHP and Microsoft use AI to lift Escondida copper recovery

A new collaboration between BHP and Microsoft has used artificial intelligence and machine learning... Read more

Alliance to support U.S. farmers in transition to lower-carbon agriculture

Bunge and Nutrien Ag Solutions, the retail division of Nutrien Ltd. have announced a strategic alliance... Read more

Vale ships its first cargo of briquettes for blast furnace test

Vale has concluded the shipment of its first cargo of iron ore briquettes to be tested in a blast furnace... Read more

UK agri welcomes government decision to drop retained EU law plans

The UK Government's decision to abandon plans to review all EU-derived legislation by the end of 2023... Read more

USA’s NGFA supports proposal to remove ‘Soybeans of Other Colors’

The USA’s National Grain and Feed Association (NGFA) and 42 other agricultural groups have expressed... Read more

BHP completes OZ Minerals acquisition

BHP has announced the completion of the OZ Minerals acquisition and implementation of the scheme of... Read more

ADM Milling project maps carbon emissions in wheat supply chain

ADM, global leader in nutrition, and one of the leading flour millers in the UK, has for the first time... Read more

US Soy growers ask House Ag Committee to help protect crop insurance

Speaking on behalf of the American Soybean Association and his fellow soy growers, ASA President Daryl... Read more

Rio Tinto acquires high-grade scandium project in Australia

Rio Tinto has entered into a binding agreement to acquire the Platina Scandium Project, a high-grade... Read more