Continued value creation

The Group wants to grow for years to come. In the past, Holcim achieved growth through acquisitions and by building new plants or plant expansions, in particular in emerging markets. With the Holcim Leadership Journey, the Group is extracting the growth potential of its current footprint and generates the necessary funds to support further profitable growth. This will allow the company to substantially reduce its capital expenditure in the coming years.

In 2015 Holcim will conclude its extensive expansion strategy, allowing the Group to sustainably create value from its existing asset base. However, in the year under review, new capacity expansion projects were commissioned in the cement segment, adding 4.3 million tonnes of cement per annum.

Cement capacity expansion within the Group in million tonnes 2015 and 2016

Company

2015

2016

Total

Holcim Indonesia

1.6

 

1.6

Holcim Lanka

0.6

 

0.6

ACC, India

2.5

 

2.5

Total Asia Pacific

 

 

4.7

 

 

 

 

Holcim Brazil

2.3

 

2.3

Total Latin America

 

 

2.3

 

 

 

 

Holcim US

 

0.5

0.5

Total North America

 

 

0.5

 

 

 

 

Total Group

7.0

0.5

7.5

In Indonesia, the first kiln line of the new Tuban cement plant was commissioned in mid-2014, adding 1.2 million annual tonnes of clinker capacity. The new grinding plant at Port Kembla in Australia came on stream earlier in the year, with an annual capacity of 1.1 million tonnes. In Rabriyawas, India, cement capacity was increased by 0.9 million tonnes and the Meghnaghat grinding station near Dhaka in Bangladesh added 0.7 million tonnes.

Several projects are planned to be completed in 2015, adding further clinker and cement capacity. In Sri Lanka, the Galle grinding station will expand its cement capacity by 0.6 million tonnes. The Barroso plant in Brazil will become fully operational, increasing annual cement capacity by 2.3 million tonnes. A new clinker line at the Guayaquil plant in Ecuador will augment the clinker capacity by 1.4 million tonnes. In Indonesia, the second clinker line of the Tuban plant will be commissioned, adding 1.6 million tonnes of cement capacity. In India, 2.5 million tonnes of additional cement capacity will be brought into operation at the Jamul plant along with its satellite grinding station in Sindri.

Two plants in the USA are scheduled to complete performance upgrade and improvement projects in 2016: the Hagerstown plant near Washington, D.C. and the Ada plant in Oklahoma. In New Zealand, a new import terminal in Timaru and one in Auckland will be constructed to replace the existing cement plant at Westport. In the second half of 2016 the Volsk plant upgrade in Russia will be finalized, providing 1.8 million annual tonnes of cement with high-efficiency production.