Holcim Temporarily Halts Operations at Concrete Plants in Zabok and Bistra

Holcim Hrvatska today reported that operations have been temporarily halted at Holcim’s concrete plants in Zabok and Bistra, and working hours in concrete production have been reduced to 35 hours per week.

Additionally, a reorganization of the Concrete Department has been carried out, and five employees have been reassigned to positions in other Holcim concrete plants – in Lučko, Karlovac, and Plovanija, as stated in Holcim’s announcement regarding the measures taken by the Management to adapt to the market situation due to the consequences that the global economic crisis has had on the domestic construction industry.

Holcim also states that, in accordance with the Collective Agreement, the termination of employment contracts with three employees from concrete production has been agreed upon. “Depending on the development of the market situation, Holcim will reopen the plants in Zabok and Bistra,” the company emphasizes. Holcim also notes that it will continue to be available to all its customers, and the wider Zagreb area will continue to be regularly supplied with concrete from the plant in Lučko.

The announcement states that Holcim’s Management was forced to take concrete measures to adapt to the significant reduction in the number of construction projects in the wider Zagreb region, and consequently to the reduced demand for its products, especially concrete. In 2009, the domestic cement market faced a consumption decrease of 24 percent, and this year there is a very high probability of an additional decrease of 15 percent, Holcim reports.

It is expected that Zagreb, as the largest consumption center, will have half the demand for construction materials this year compared to 2008. At the same time, liquidity remains a major problem in the market, especially in the construction materials industry, while compensations have largely become the main means of payment for goods and services, the announcement states. Holcim Hrvatska is part of the Holcim Group, one of the leading suppliers of cement and aggregates (crushed stone, sand, and gravel), as well as ready-mixed concrete and asphalt, and services. (H)