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.
BHP has released the world’s first bulk carrier tender for LNG-fuelled transport for up to 27... Read more
German Coal Importers Association e. V. (VDKi), which represents the interests of the imported hard... Read more
ArcelorMittal has announced that it completed the sale to Liberty House Group of several steelmaking... Read more
Cargill and InnovaFeed have entered into a strategic partnership to bring sustainable and innovative... Read more
With the goal of engaging a broad array of global ethanol leaders about the benefits of expanding... Read more
The International Fertilizer Association welcomes the FAO Code of Conduct, which was officially approved... Read more
Dame Moya Greene has notified the Board of her intention to step down as a non-executive director of... Read more
RUSAL, one of the leading global aluminium producers, is launching a potroom control system as part... Read more
Hill Dickinson has announce the strategic acquisition of two partners for its growing commodities team... Read more
BHP and Mitsubishi Development Pty Ltd have signed an MOU agreement to work together in the pursuit... Read more