Construction group focuses on growth through sustainable solutions
Holcim wants to focus on scaling up circular construction in Europe. In Latin America, industrialization trends and the demand for mega construction projects are set to drive the building materials group's growth. Holcim makes this clear in its NextGen Growth 2030 strategy.
Holcim sees sustainability as a driver of profitable growth. According to an ad hoc announcement about its new NextGen Growth 2030 strategy, the building materials group aims to increase the share of sales generated by the sustainable construction solutions division to 50 percent. On average, turnover is set to grow by 3 to 5 percent annually and the operating result by between 6 and 10 percent. In 2024, the company generated sales of CHF 16.3 billion and an EBIT margin of 17.4 percent, excluding the North American business.
According to its CEO Miljan Gutovic, Holcim believes it is “ideally positioned to benefit from the major megatrends shaping the future of construction – from urbanization to energy-efficient refurbishment. The expansion of the high-value-added Building Solutions business is a central component of Holcim’s transformation. With the new strategy, we are tapping into significant growth potential to increase added value for shareholders.”
In Europe, Australia and North Africa, the construction group aims to benefit from the increasing demand for its sustainable products and solutions. In Europe, the focus will be on the recycling of construction and demolition materials. Holcim aims to reach 20 million tons by 2030. In Latin America, the company aims to benefit from industrialization trends and demand for mega construction projects, while in the Asia, Middle East and Africa region it intends to benefit from the generally strong growth in its markets.
The North American business, known as Amrize, which generated 11.7 billion dollars last year, is to be listed on the stock exchange in the USA and Switzerland by the middle of the year. Following the spin-off, Holcim intends to make a number of smaller acquisitions from an estimated total capital allocation capacity of 18 to 22 billion Swiss francs by 2030. Surplus capital is to be used for major strategic acquisitions and share buybacks.