Holcim Croatia to boost profitability

Holcim Croatia to boost profitability
Published: 25 October 2013

Tagged Under: Pricing Croatia Holcim Europe 

Holcim Croatia said it is implementing a new strategy to help drive the company back to profitability by 2015.

The new operational plan cover all of Holcim's divisions and business segments in Croatia with measures including increasing prices and finding new markets as well as niche ones, SeeNews reports.

As a result of a difficult construction market, cement consumption has fallen from 2.39Mt in 2009 to around 1.7Mt in 2012. This is well below total domestic capacity of 3.7Mta and industry sources a full recovery in demand is not expected until 2015.

Holcim Croatia posted an operating loss of HRK18.8m (EUR2.5m) last year due to stagnant cement consumption. Holcim is present in the market through  Tvornica Cementa Koromacno, which operates a 1Mta cement works. In 2012 the company invested in the reconstruction of a clinker cooler at the plant to increase thermal energy and reduce maintenance costs. It also aims to advance the use of alternative fuels to over 50 per cent of energy intake. It has been using coal supplemented by old tyres, sawdust, waste oil, animal meal, emulsions and solid recovered fuel.