Ukraine: HeidelbergCement closes Ukrainian plant because of separatists

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Updated Wed, 19 Nov 2014 09:55:42 GMT

HeidelbergCement has shut down one of its cement plants in eastern Ukraine because separatists in the region want to impose their own agenda on the production process, according to a HeidelbergCement spokesman.

The plant was not occupied, but the separatists reportedly have their own ideas of how to produce cement. The spokesman added that HeidelbergCement would not engage in talks with the separatists. The 500 employees at the site are currently busy cleaning the facility, but if no solution is arrived at, their jobs will be threatened.

The plant has 2Mt/yr of cement production capacity. HeidelbergCement generates a turnover of Euro150m from its three Ukrainian sites, or 1% of its total revenues. However, in 2014 its turnover has fallen by 30% due to the conflict. Earlier in 2014 CEO Bernd Scheifele voiced his concerns about the developments in the region. Due to the political escalation interest rates exploded and loans vanished, putting the company's local production in danger.