ZURICH, Jan 25 (Reuters) – Holcim’s (HOLN.S) North American business is expected to account for half of the cement maker’s sales, Chief Executive Jan Jenisch said in an interview with the media as the Swiss firm Consider making more acquisitions to boost its product and solutions business there.
Holcim wants to grow its solutions and products division to around 30 percent of group sales by 2025, Jenisch told financial website The Market.
The company confirmed the comments to Reuters.
“We’re well on the way here and can grow further,” Jenisch was quoted as saying by The Market in an interview published Wednesday.
“I hope we get one or two more good acquisition opportunities. In a few years time, the three equally important pillars of cement, aggregates/concrete and solutions and products should each account for a third of revenue.”
Solutions and Products, which provides products for waterproofing, roofing and insulation, is already Holcim’s largest business segment in the United States, Holcim’s largest market, Jenisch said.
“In the roofing business alone, we’ve generated over $3 billion in sales there,” he said. “The roof, facade and mortar systems segment is a huge market.
“The roofing business alone is a $30 billion market in the U.S. and $50 billion in Europe and Latin America. It’s a very attractive market for good growth and high margins.”
Holcim this week purchased a fiberglass matt plant in the US to support its roofing business, and 13 sand and aggregate quarries in the Denver, Phoenix and Colorado Springs areas.
In the future, the company could also enter the field of curtain wall manufacturing through acquisitions, Jenisch said.
Holcim has reduced its exposure to emerging markets from 50% of sales to about 20% and is not under pressure to sell its Philippine business, a planned divestment in 2020 failed.
“At the time, it was important to sell the business because it was a $2.1 billion deal and we needed the money to pay down the debt,” Jenisch said.
“That pressure is no longer there. In the Philippines, we are the market leader and we are making money.”
Reporting by John Revell; Editing by Christopher Cushing
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