Swiss cement maker Holcim is focussing on emerging markets like India, China and Vietnam as it looks to cope with the global slowdown.
"China and India are growing at rate, maybe next year at 6-7 per cent or maybe 5-6 per cent, not anymore 9-10 per cent, but it's still one of the highest growth rates in the world.... India is one of our biggest markets like China, the US, the UK. About 16 per cent of our revenues come from India," Holcim Executive Committee Member Paul Hugentobler told PTI.
Unlike Spain and the USA, where it is shutting down plants, the company remains firm on its $2 billion expansion plan for India to enhance capacity by 14 million tonnes by June 2010.
The company is present in India through ACC and Ambuja Cements, in which it had acquired controlling stakes.
When asked about its plans to cope with the global economic slowdown, Hugentobler said: "We have a three-point strategy. One, adjusting capacity in Spain and the US. Two, no more expansion projects except that have already been announced and three, pay down your debts and reserve cash and cut costs."
The company has already announced its plans to close two production facilities in the US and one in Spain.
"In Spain, we have closed one factory and in the USA, we are closing two factories or we are in the process to close them next year. Spain has a demand contraction of more than 20 per cent and the US also 15-20 per cent, so naturally you have to adjust your production capacity," he said.
