Holcim Ltd. (HOLN), the world’s second- largest cement maker, is monitoring merger and acquisition opportunities in China with a view to building a base for expansion there, Chairman Rolf Soiron said today.
The Chinese government acknowledges that consolidation in its cement industry is necessary and Holcim is among the companies approved to take part, Soiron said in a presentation in Geneva. Challenges there include managing margins and hiring, he said.
“As long as we are not totally sure that we control our destiny there, we are going to be careful in this,” Soiron said today at a British Swiss Chamber of Commerce luncheon in Geneva. He added that some decisions about Holcim’s future will fall to his successor given he plans to step down in a couple of years.
Holcim is increasing capacity in India and Soiron said today Brazil is another market where the company needs to expand in. Jona, Switzerland-based Holcim last month reported a first- quarter net income of 10 million francs ($12 million), while cement deliveries rose 7.2 percent, led by the Asia Pacific region.
The cement maker is expanding capacity in India as the country’s rising population spurs spending on housing, roads, ports and bridges. Holcim expects construction in mature markets to recover and the growth in emerging markets to continue.
Soiron, who has served as chairman of the Jona, Switzerland-based company since 2003, said he expects to step down in a “couple of years.”
“In 10 years, our successors will know how the risks in China have evolved and let them then take the decisions,” said Soiron. “The important point is that we have a bridgehead.”
“I’m not going to be an eternal chairman at all,” he said, adding that he believes he knows who his successor will be. Soiron didn’t name or comment any further on his replacement.
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