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20 February 2019

HeidelbergCement reveal company managing board succession plans

First publishedon www.AggBusiness.com
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Dr Bernd Scheifele.jpg
Dr Bernd Scheifele will step down as chairman of HeidelbergCement's managing board in February 2020.
German global building materials market giant HeidelbergCement has announced that Dr Bernd Scheifele will step down as chairman of the group’s management board after 15 years in the role, as part of a succession plan being implemented from early 2020.

Dr Scheifele will leave the managing board in February 2020 with Dr Dominik von Achten, the managing board’s current deputy chairman, replacing him in the top role. Dr Lorenz Näger will remain as HeidelbergCement’s chief financial officer until May 2022 while also replacing Dr von Achten as deputy chairman of the managing board. Jon Morrish will take on responsibility for Western and Southern Europe from Dr von Achten in 2020. In further moves, Chris Ward will be promoted to the HeidelbergCement managing board and take on responsibility for North America from Jon Morrish. Ernest Jelito, currently heading HeidelbergCement’s activities in Poland, will be promoted to the managing board and will take on responsibility for Northern and Eastern Europe-Central Asia from Dr Albert Scheuer, who will leave the managing board this August.

The decision to replace Dr Scheifele after three terms as HeidelbergCement managing board chairman was made by the group’s supervisory board at its meeting on 19 February 2019. Furthermore, the appointment of Dr von Achten was extended until end of January 2025. At the same time, the supervisory board asked Dr Scheifele to stand as a candidate for chairman of the supervisory board after the end of a statutory two-year cooling-off period in 2022. Dr. Scheifele has declared that he will comply with this request.

“The changes in 2020 are part of long-term succession planning for the supervisory board and managing board of HeidelbergCement,” said Fritz-Jürgen Heckmann, chairman of the supervisory board of HeidelbergCement. “Since assuming office in 2005, Dr Bernd Scheifele has decisively shaped the group and successfully moved it into new dimensions both operationally and strategically. By introducing effective management processes and a lean organisation, he significantly increased the competitiveness of HeidelbergCement, propelling us to the forefront of the industry. He has also overseen expansion of our geographic footprint and the scope of our core activities and made HeidelbergCement the leading vertically integrated building materials company globally.

“The supervisory board would like to thank Dr Scheifele for his longstanding commitment. We have asked him to consider joining the supervisory board as chairman so that he can continue to contribute his skills and experience for the benefit of the company. We are very glad that Dr Scheifele has agreed to our request and will stand as a candidate for the supervisory board in 2022.”

“In the person of Dr Dominik von Achten, we have named a very competent and experienced successor as chairman of the managing board from within our own ranks,” said Dr Scheifele. “He has played a decisive role in the very successful integrations of Hanson and Italcementi and has proven his competencies in managing the group areas North America and Western and Southern Europe. Ernest Jelito and Chris Ward, two further managers of our group with many years’ experience in the business lines and international markets of HeidelbergCement, will be joining as new members of the managing board. Finally, we would like to thank Dr Scheuer for the dedication shown during his nearly 12-year term on the managing board. Through his unmatched competence in the cement business, he has contributed significantly to the operational excellence of HeidelbergCement.”

Aggregates Business reported online yesterday how HeidelbergCement posted a 5% increase in revenue for full-year 2018 to €18.1bn (previous year: €17.3bn). The group attributes the rise in revenue to increased sales volumes in all business lines and successful price increases.

In 2018, the cement and clinker sales volumes of the group increased moderately by 3% compared with the previous year to 130 million tonnes (previous year: 126). Deliveries of aggregates rose slightly by 1% to 309 million tonnes (previous year: 305). Deliveries of ready-mixed concrete increased by 4% to 49 million cubic metres (previous year: 47).

In the fourth quarter of 2018 the group increased the sales volumes of cement and ready-mixed concrete compared with Q4 2017. Cement and clinker sales volumes rose by 2% to 33 million tonnes (previous year: 32), driven by solid growth in Europe and Asia. Deliveries of aggregates remained stable at 76 million tonnes (previous year: 76). The growth in North America and in Western and Southern Europe offset declines in the other Group areas. Sales volumes of ready-mixed concrete increased by 8% to 13 million tonnes (previous year: 12).

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