Our Strategy

 

3 major challenges for the construction industry

LafargeHolcim is evolving in a fast-moving business environment. Our construction and building materials industry is impacted by three major market trends:

 
Population growth and rapid urbanization

Population growth and rapid urbanization

By 2020, it is projected that the global population will reach approximately 7.7 billion and the number of people who live in or around urbanized areas will rise by 1 billion from today’s levels. This rapid growth during the 21st century is driving an increased demand for affordable housing and infrastructure as more and more people live in or around urbanized areas.

 
Increasing demand for value-added products and services from building materials companies

Increasing demand for value-added products and services from building materials companies

Competition among building materials companies is no longer based only on prices and the ability to deliver cement. To differentiate, we need to offer innovative, user-tailored products and solutions that improve the quality of buildings (e.g., environmental properties, aesthetics, and durability) and reduce the cost of construction or of ownership lifecycle. We also increasingly offer global services and solutions to building companies.

 
Resource scarcity and climate change

Resource scarcity and climate change

Our industry must create sustainable, resource and energy efficient materials and manufacturing processes.

 

The 6 pillars of LafargeHolcim’s strategy

Our mission as the most advanced company in the building materials industry is to provide what really matters to our customers and end-users. To meet these needs, we have established six strategic goals:

Create an attractive environment for our people.

People are at the heart of LafargeHolcim’s business success. Therefore, we intend to create an attractive work environment for our people through:

  • a zero harm culture,
  • a diverse, inclusive and respectful workplace.

We are committed to offering individuals and teams unique opportunities to grow, contribute and engage to their fullest potential, and recognizing and rewarding remarkable contributions.

Engage our resources for best returns and cash generation.

For LafargeHolcim, this means pro-active management of our portfolio, disciplined capital allocation and selective pursuit of attractive growth opportunities, so as to generate superior sustainable financial returns on our capital employed and cash generation. 

  • In the short term, we estimate that we will deliver EUR 1.4 billion of synergies.
  • In the medium term, the new Group will fully benefit from the size of its industrial network, which will facilitate optimizations and avoid the need for large acquisitions or heavy investments. Similarly, its capacity for implementing an innovation strategy on a very large scale will be a key advantage for generating a strong growth dynamic at low cost.

Serve the building needs of individuals and retail customers.

Finding the most effective ways to bring our products to those who sell and use them through best-in-class go-to-market models and world-class branding and customer experience:

  • With respect to distributors and retailers, we develop marketing and customer loyalty support programs, provide advanced logistics to reach more isolated rural and urban communities, and enable a shortening of the distribution chain and partnerships with retail chains.
  • With respect to homebuilders, individuals, and other end-users, we introduce innovative products and value-added services such as bundling or affordable housing financing solutions for individuals. We strive to associate our brand with values such as respect for people, sustainability, quality, reliability, ease of purchase, and ease of use.

Be the preferred partner for building and infrastructure.

An in-depth understanding of end users and eco-systems in which projects will be implemented is crucial. We also believe in early involvement, innovative value-adding solutions and excellent project delivery to make a difference.

  • In the commercial construction segment, we intend to work with our customers and decision-makers (architects and designers) to reduce their operational costs, create differentiation in mature markets, and help them develop reputations in emerging markets.
  • In the infrastructure segment, we seek early involvement and provide materials that meet specific infrastructure challenges related to technology, acceptability, longevity, and project execution, from bidding to delivery and after sales.

Achieve operational excellence through continuous improvement.

To create value, we deliver cost leadership, we implement the most advanced operating models across all product lines and we make an optimal use of our capital and resources, while leading our operations in a safe way. We intend to capitalize on our professional teams, assets, technologies, innovation in industrial operations, and strong operating models to replicate best practices across the business in all geographic markets.

 

 

 

Create shared value with society.

We will create shared value with society through distinctive and sustainable solutions and the best possible sustainability footprint. Examples of our sustainability objectives include:

  • Developing innovative solutions, such as low CO2 cement and recyclable aggregates.
  • Creating products that optimize energy consumption of buildings throughout their lifecycle.
  • Demonstrating leadership in environmentally sustainable and socially responsible solutions.
  • Engaging proactively with regulatory agencies and stakeholders at all levels, applying and promoting strict environmental and social standards for the industry.
  • Incorporating solutions that focus on biomass use, waste and water management, robust rehabilitation, and biodiversity management at extraction sites.
  • Acting with integrity in all dealings and promoting a culture of inclusiveness in the workplace