Holcim scales back investements

Holcim scales back investements
Published: 15 January 2009

Holcim said on Thursday it would scale back its 2009 investment plans as it braces itself for tough conditions, though it would benefit from government projects.

Maintenance capital expenditure would be cut to SwFr400m (US$358.7m) in 2009 from SwFr1.2bn in the previous year and only projects with short-term payback periods would be approved, the group said in slides prepared for a presentation with analysts.

Holcim, also said it would reduce spending on expansion to SwFr2.5bn from SwFr3.5bn in 2008.

Holcim had planned to spend 1.1 billion francs on maintenance and 2.8 billion on expansion in 2009.
"Commissioning of most of the additional expansion projects (is) in the pipeline in 2009 (and there will be) no new investments," the group said in the slides.

Holcim also said it was well positioned to benefit from various government stimulus plans that "will provide the basis for building material demand over the next two to three years".