LafargeHolcim divests in Indonesia

By Thomas Allen13 November 2018

Construction materials producer LafargeHolcim is to divest its Indonesian company Holcim Indonesia.

The firm has signed an agreement with Semen Indonesia, a leading materials company in the country, to dispose of its entire 80.6% shareholding in Holcim Indonesia for a value of US$1.75 billion, on a 100% basis.

The assets to be sold include all of LafargeHolcim’s operations in Indonesia, which comprise four cement plants, 33 ready-mix plants and two aggregate quarries.

The decision comes as part of LafargeHolcim’s ongoing portfolio review, aimed at accelerating deleveraging.

Jan jenisch

Jan Jenisch, CEO of LafargeHolcim

Jan Jenisch, CEO of LafargeHolcim, said, “As part of our Strategy 2022, Building for Growth, we have committed to divestments of at least CHF2 billion (US$1.98 billion).”

Jenisch said this divestment marked an important milestone in achieving this target and increasing the company’s financial strength.

He added, “The proceeds from this transaction will significantly improve our debt ratios with the target of two times Net Debt to Recurring EBITDA (earnings before interest, taxes, depreciation and amortization) to be achieved by the end of 2019.”

Closing of the transaction is subject to customary regulatory approvals.

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, World Construction Week Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Longer Reads
10 ways to join the hydrogen power revolution
Interest in the use of hydrogen has soared over the past few years as the construction industry races to reduce its carbon footprint. We roundup some recent initiatives
Telescopic boom lifts - the trends
Higher capacities and 100% electric models are the trend. And what lies ahead for 200ft models, or above?
How construction can become sustainable
The construction industry is undergoing a transformative shift to adapt more environmentally friendly practices
CONNECT WITH THE TEAM
Andy Brown Editor, International Construction Tel: +44 (0) 1892 786 224 E-mail: andy.brown@khl.com
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: simon.kelly@khl.com
CONNECT WITH SOCIAL MEDIA