Cement Americas

WIN 2018

Cement Americas provides comprehensive coverage of the North and South American cement markets from raw material extraction to delivery and tranportation to end user.

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2 CEMENT AMERICAS • Winter 2018 • www.cementamericas.com CEMENTSCOPE LafargeHolcim Realigns Management to be More 'Market-Focused' LafargeHolcim's board of directors announced the revamping of its man- agement structure to make countries more accountable for market strat- egies and results in a bid to boost growth and performance. "Establishing a market-focused man- agement organization is an important step toward generating an attractive growth profile and taking the company to its next level of performance," said LafargeHolcim CEO Jan Jenisch. "The strengthening of the profit and loss responsibility of the countries and the simplification of global business func- tions will create a leaner and more agile operating model. Countries will be fully empowered and accountable for market strategies, cost discipline and results. The new organization will be complemented by a strengthened per- formance management system focus- ing on growth, cash conversion, capital efficiency and people development." The 30 largest country organizations will directly report to the executive committee and the global business functions will be merged under one leadership. As a result of these chang- es, the executive committee will be reduced to nine members. Western Canada chief executive offi- cer René Thibault is appointed Head Region North America and executive committee member. He succeeds Pascal Casanova, who is leaving the producer after serving as the charter head of post-merger, North American Lafarge and Holcim businesses. Thibault joined Lafarge Canada in 1989 and has held posts in Canada and France. He will oversee Aggregate Industries, Holcim and Lafarge busi- nesses in the U.S. and Canada as part of a realignment that sees LafargeHol- cim cement and downstream opera- tions in Mexico brought under Region Latin America. Concurrent with the Americas moves, LafargeHolcim has appointed Marcel Cobuz as Head Region Europe and executive commit- tee member. He has held operational and executive roles in six countries since joining Lafarge Group in 2000, and succeeds Roland Köhler, a 24-year Holcim veteran transitioning to the LafargeHolcim Foundation for Sustain- able Construction chairmanship. The restructuring comes at a time when the company is facing a criminal investigation for making payments to armed groups to keep a factory oper- ating in Syria prior to the 2015 merger with Holcim. Lawyers for human rights group Sher- pa said Lafarge paid close to 13 mil- lion euros ($15.2 million) to armed groups, with a large part of the mon- ey going directly or indirectly into the pockets of Islamic State, and that payments lasted until well after the closure of Lafarge's Jalabiya plant in September 2014. The investigation has been unfolding for months, triggering the resigna- tion of Eric Olsen as chief executive of LafargeHolcim in April. Olsen as well as former Lafarge CEO Bruno Lafont and the group's former Syria chief Chris- tian Herrault were recently placed under formal investigation in France, charged with financing terrorism and endangering the lives of others, according to multiple news reports. René Thibault Marcel Cobuz Cement Companies Fined $68M for Price Fixing in Colombia C o l o m b i a 's i n d u s t r i a l r e g u l a t o r imposed combined fines of around $68 million for alleged price fixing against the top three cement com- panies operating in the country – Cementos Argos, Cemex Colombia and Holcim (Colombia) – as well as some of its executives, reported the Finance Colombia. The three companies, according to the Superintendence of Industry and Commerce (Superindustria), make up 96 percent of the Colombian cement market and allegedly agreed to set prices between January 2010 and December 2012, during which time cement prices increased 29.9 percent while inflation was only 9.3 percent. This led to suspiciously high profit margins for the companies. The agency added that "the charac- teristics and structure of the cement market" in Colombia make this sector "highly prone to collusion" and car- tel-like practices. It noted that "multi- ple investigations and sanctions" have

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