Holcim exiting Russian market, transferring assets to management, taking brand

MOSCOW. Dec 14 (Interfax) - Swiss construction materials manufacturer Holcim is exiting the Russian market, and the company has signed an agreement to sell its business in Russia to the local management team, Holcim said in a press release posted on its website.

Closing of the transaction is subject to regulatory approvals. The new owners will operate independently under a different brand name, according to the press release.

The company decided fundamentally in March to exit Russia, and deconsolidated its Russian assets from its financial statements at the time.

"This divestment completes Holcim's market exit from Russia in line with the company's values to operate in the most responsible manner. The Russian business has been deconsolidated since March 2022, when the company decided to exit the Russian market. Holcim remains committed to supporting its employees throughout this process and ensuring an orderly transfer for its customers and relevant parties," according to the press release.

Holcim had global sales of 26.8 billion Swiss francs in 2021, with less than 1% of the figure coming from the Russian market.

"This divestment has no significant financial or business impact on Holcim, as the company generated less than 1% of group net sales and recurring EBIT in Russia in 2021," Holcim said.

Holcim has four business segments, including cement, ready-mix concrete, aggregates, and solutions & products. As part of the LafargeHolcim group, the company managed four cement plants in Russia in Voskresensk and Kolomna, Moscow Region; Ferzikovo village, Kaluga Region; and Volsk, Saratov Region; as well as three quarries in Karelia for extracting non-metallic materials. There are about 1,800 local employees in Russia.