An economic downturn and shrinking construction activity has taken its toll on Holcim, the world’s second-largest cement maker, which is in the process of slashing 1,500 U.S. and 500 U.K. jobs by the end of this year
Sources: Holcim Ltd., Zurich; CP staff
An economic downturn and shrinking construction activity has taken its toll on Holcim, the world’s second-largest cement maker, which is in the process of slashing 1,500 U.S. and 500 U.K. jobs by the end of this year. Company officials report that sales of cement, aggregates and related materials fell 12 percent in the first nine months of 2008, and anticipate the slowdown continuing through 2010.
Missing its forecast with a 23 percent drop in third-quarter net profit and with construction in many regions slowing, Holcim (US) has also decided to shut down two of its vintage Great Lakes-area mills–Dundee, Mich., and Clarksville, Mo.–greenfield sites dating to 1960 and 1967, respectively. The closings will affect about 340 salaried and hourly workers. Both plants may have been on Holcim’s radar to close thanks to next year’s scheduled opening of a 4 million-ton/year plant in St. Genevieve, Mo.
Then-parent company Holderbank launched Dundee Cement in 1958 as a U.S. market platform, and opened the mill two years later. The Dundee and Clarksville plants anchored Holnam Inc., subsequently renamed Holcim (US) as part of the parent company’s transition from Holderbank to Holcim Group Ltd. Outside the U.S. and U.K., the company also plans to close facilities in Spain, where it is seeing a severe business downturn as well.