LafargeHolcim implements coronavirus action plan

LafargeHolcim has announced the implementation of its action plan regarding the coronavirus pandemic, stating that it is closely monitoring all markets and the guidance provided by the authorities in each country.

"In China, the recovery of the construction sector has started and all our plants outside of Hubei Province are operating. We forecast the market demand to further recover and to supply 70 per cent of last year’s volume in April 2020. In most of the other key markets, the construction sector is disrupted, and we forecast significant volume declines in April and May. While demand in 1Q20 was solid overall, LafargeHolcim expects a significant negative impact on its business in 2Q20," said the company in a press release.

To mitigate the financial impact of the situation, the company has immediately implemented a ‘Health, Cost & Cash’ action plan in all countries. This will target a reduction in capex of at least CHF400m (US$415.46m) compared to 2019. In addition, it is expected to see a CHF300m reduction in fixed costs, decrease in net working capital, and the realisation of a reduction of energy prices and the full review of all third-party products/services.

LafargeHolcim is expected to provide a more comprehensive update on 2020 expectations on 30 April, with the release of its 1Q20 results.