The challenging state of the Spanish cement market has prompted Holcim to reduce its capital in Spain by 75 per cent or EUR568m.
The capital reduction will be carried out by reducing the nominal value of shares, is the direct consequence of the losses registered by the Switzerland-based company in the past few financial years. ??At the start of the year, Holcim announced the closure of its Lorca plant as not only production levels were low, but there was also no sign of positive developments looking ahead.
“The overcapacity in cement production in Spain exceeds 70 per cent and the forecasts for the next few years do not allow the reactivation of these assets in the future,” explained Vincent Lefebvre, executive director of Holcim España.
The Spanish cement market is currently in the throes of a severe recession, which has seen demand figures to levels not experienced since the 1940s. The latest data, corresponding to April 2013 indicate that output has fallen below 1Mt as the construction sector output remains low. The real estate market as well as public works have seen activity drop strongly as both the country’s people and government tighten their belt.
