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Heracles General Cement Company announces restructuring plan

World Cement,

The Heracles Group of Companies, Greece, has reported that its sales for 2012 fell 17.8% y/y to €228.16 million. Sales also declined for the Heracles General Cement Company SA, part of the Heracles Group, dropping 15.7% y/y from €239.4 million to €201.77 million. The cement producer incurred losses after tax of €76.38 million compared to a loss of €46.28 million in 2011. Meanwhile, the Group registered a total loss of €76.5 million, 36.9% greater than 2011’s loss of €55.86 million.

The results are indicative of the current economic situation in Greece, where construction activity and infrastructure investment continue to decline. In 2012, both the Group and the Company stepped up their initiatives to reduce operating costs and increase productivity. Export activity was also increased, partially mitigating the negative impact of the domestic market.

Heracles General Cement Company has plans to reorganise the structure of its cement operations, in order to address overcapacity, offset the effects of the ailing construction sector in Greece and ensure the future of the company’s domestic operations and exports. Cement production will continue at the Volos and Milaki plants, which will serve the national market as well as the Mediterranean region. The Halkis plant will permanently discontinue operation. The new structure will increase productivity by 30% and is predicted to have a positive impact of €18 million pa.

Edited from various sources by Louise Fordham.

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