Source : Procurement Leaders
HeidelbergCement, the German cement maker, has reported higher profits for 2011, helped by its efficiency programme which produced larger than expected cost savings.
Through the “FOX 2013” programme Heidelberg cut $240m more off its annual costs than it planned and was achieved despite substantial increases in energy prices and a significant drop in price for C02 emission certificates.
Dr. Bernd Scheifele, chairman of the managing board of HeidelbergCement said of the results: “The year 2011 was a further consistent step towards reaching our strategic goals.
“We increased revenue and results despite the unexpectedly heavy rise in energy prices and further reduced our net debt. The positive development of our results contrasts sharply with the industry’s negative trend in 2011."
"Once again, the HeidelbergCement team successfully demonstrated cost efficiency, speed, and strength of implementation,” he added.
Going forward, the company plans to bring its energy costs under control by switching from coal to natural gas, a move which will see costs of producing cement slow from 24% to 5%. It is also installing electric meters at some of its plants and utilising low cost energy at night and in the morning.
Dr. Scheifele said there are plans to increase the savings targets of the FOX 2013 programme and also begin a new supply chain optimisation programme to achieve further cost reductions of 150m euros by 2014.