Company announces new strategy for growth following planned listing of North American business
HOLCIM have announced their new strategy – NextGen Growth 2030 – to be the leading partner for sustainable construction, following the planned listing of their North American business. With NextGen Growth 2030, the company says it will leverage its sustainability leadership to deliver profitable growth in Europe, Australia, and North Africa, while accelerating growth in Latin America, to benefit from strong market fundamentals and industrialization trends.The company plans to grow its addressable markets by expanding in high-value Building Solutions, from building systems to high-performance concrete, and NextGen Growth 2030 will, it says, drive shareholder value with growth-focused capital allocation and value-accretive mergers and acquisitions.
Chief executive Miljan Gutovic commented: ‘Holcim are best positioned through NextGen Growth 2030 to benefit from the powerful megatrends shaping the future of construction, from urbanization to energy-efficient refurbishment. Expanding high-value Building Solutions is a key part of Holcim’s transformation. With this new strategy, we are unlocking significant growth opportunities to drive shareholder value.’
NextGen Growth 2030 has four strategic drivers:
Focused investment in attractive markets: With established leadership positions in key markets, Holcim will accelerate growth through organic investments and value-accretive mergers and acquisitions (M&A). The company will benefit from increasing demand for its sustainable offering in Europe, and is best positioned to capture growth from industrialization trends and demand for mega construction projects in Latin America. In Asia, Middle East and Africa, Holcim will benefit from the strong growth fundamentals in their markets.
Sustainability driving profitable growth: Sustainability will advance net sales and margin expansion, as Holcim scale up their sustainable offering tailored to customer demand with ECOPact and ECOPlanet. The company is best positioned to accelerate circular construction, with its well-established footprint in metropolitan areas and its circular technology ECOCycle, and is targeting more than 20 million tonnes of recycled construction demolition materials in 2030. It will invest and further innovate to accelerate decarbonization.
Expanding high-value Building Solutions: Holcim will expand their high-value Building Solutions, from foundation and flooring to walling and roofing systems. They will grow their addressable market by leveraging new sales channels, amplifying synergies, and through organic investments and value-accretive M&A. The company’s energy-efficient building systems will capture growing demand for repair and refurbishment solutions.
Performance culture and value creation: Holcim’s deeply embedded performance culture stems from a decentralized and lean business model that can swiftly adapt to market opportunities. Holcim post spin-off will have more than 450 empowered local P&L leaders across their three regions. With a total estimated capital deployment capacity of CHF18-22 billion from 2025 to 2030, the company will invest in organic growth and value-accretive M&A with attractive and progressive dividends. Excess capital will be allocated to large strategic acquisitions and opportunistic share buybacks.
