Holcim to restructure operations in Europe

As part of the Holcim Leadership Journey, the Group has introduced a leaner management structure for Europe to better adapt to the lower level of construction activity. Group region Europe continues to adjust production capacity in all segments. Measures evaluated and already initiated will lead to annual cost savings of at least CHF 120 million, a better utilization rate of the capacity and a more efficient allocation of the capital expenditure.

The additional cash costs for restructuring in the fourth quarter of 2012 will amount to approximately CHF 100 million including site restoration costs. Write-offs of property, plant and equipment will total CHF 410 million and will be charged in the fourth quarter 2012. Consultation procedures with regards to impact on personnel have been initiated in some Group companies.

This restructuring accelerates the implementation of the Holcim Leadership Journey. The major part of the anticipated cash costs of CHF 200 million to realize the Holcim Leadership Journey will be incurred in 2012.