Our strategy

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

 

Innovation at LafargeHolcim

For LafargeHolcim, innovation is a never-ending cycle. We introduce innovations at all levels of our operating cycle to drive transformation of our business, with the ultimate goal of serving our customers the best possible way, whatever their needs. This encompasses:
● Developing integrated market solutions and construction systems for key accounts, for sustainable construction and high performance applications.
● Creating new businesses, as in waste collection, handling, and management.
● Introducing industrial and logistics innovation for improved efficiency and mastery as well as reduction of our own energy footprint.
● Exploring digital innovation, such as "big data," automation revolution, and building information modeling software.
● Inventing new ways of selling our products and solutions.
● Pushing for open innovation and partnering with experts, start-ups, and academic organizations.

 

Serve the building needs of homebuilders and individuals

Finding the most effective ways to bring our products to those who sell and use them:
● 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.
● 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

 

To create value, we deliver cost leadership and implement advanced operating models across all product lines. 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.

 

 

Commit to creating economically and environmentally sustainable solutions

As the leader in sustainable solutions, we will create shared value with society and reduce our environmental 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.

 

 

 

Commit to delivering the best return on capital

● 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.