Jan Jenisch is set to lead the spin-off of Holcim’s North American operations as both chairman and CEO, a role he returns to after stepping down in 2024. The initiative aims to generate over $11 billion in revenue and is anticipated to nearly double by 2030. With government support and a focus on modernization, the new entity will be publicly traded and operate independently, while Jenisch’s leadership style emphasizes results-driven strategies.
Jan Jenisch’s Return to Leadership
When it comes to significant projects, Jan Jenisch believes in getting hands-on. Currently serving as the chairman of Holcim, the cement industry powerhouse, he is spearheading the ambitious spin-off of the company’s North American operations. Upon completion of this major initiative, Jenisch will not only oversee the strategy but also take an active role in its execution, ensuring that every detail aligns with his vision.
In an exciting announcement, Holcim revealed that Jenisch will assume dual roles as both chairman and CEO of the newly formed entity. This decision might raise eyebrows since Jenisch stepped down from his CEO position at Holcim in the spring of 2024. His successor, Miljan Gutovic, will continue to lead the remaining Holcim operations once the spin-off is finalized, which is anticipated to be in early summer 2025.
A Bold Vision for the Future
At just 58, Jenisch is eager to build something substantial again. Known for his dynamic and sometimes tough approach, he is determined to see his projects through to completion. This drive is evident as he steps into the forefront of this new venture, which is set to generate over $11 billion in revenue and establish a formidable presence in the U.S. construction landscape.
While the concentration of power in a dual role is often scrutinized in Switzerland, Jenisch remains steadfast in his belief that results should dictate leadership structures. His track record, which includes significant operational growth and stock market success during his tenure at Holcim, reinforces his stance. Additionally, the cultural acceptance of such roles in the U.S. grants him considerable latitude in pursuing growth opportunities.
The forthcoming spin-off, whose name is yet to be revealed, is projected to nearly double its revenue, surpassing $20 billion by 2030. With an urgent demand for modernization in U.S. infrastructure and real estate, Holcim is diversifying its portfolio, including acquisitions in various building material sectors.
Support from the federal government is anticipated, as President Biden’s funding initiatives are expected to continue under future administrations. This environment is prompting foreign companies to establish manufacturing bases in the U.S., enhancing the growth potential of Jenisch’s new venture.
The new corporation will be publicly traded in both the U.S. and Switzerland, facilitating investment opportunities for local institutional investors. Notably, Holcim will not retain any ownership stake in this new entity. Alongside Jenisch, nine other board members have been nominated, predominantly from North American firms, bringing extensive market experience to the table.
As Jenisch transitions to lead the new company, he will relinquish his chairmanship at Holcim, which will focus primarily on its European operations. Kim Fausing, currently at the helm of Danfoss and a supervisory board member since 2020, is proposed as his successor. With a strong background in building technology, Fausing is seen as an excellent fit to guide Holcim into its next chapter.
In May, the general assembly will vote on Fausing’s appointment as chairman and other proposed plans related to the spin-off. Whether Fausing can manage his responsibilities at Danfoss alongside this new role remains uncertain, given Danfoss’s significant revenue and his long tenure as CEO, during which the company experienced an 80% revenue increase.
As Holcim prepares for a revenue decline due to the spin-off, CEO Miljan Gutovic will benefit from more autonomy as he focuses on profitability rather than sheer scale. The third quarter of 2024 saw Holcim achieve a remarkable operating margin of 23.5 percent.
Despite the anticipated challenges, the growth outlook for North America appears robust, which may entice Jenisch to fully engage in this venture. The location of the operational headquarters for the newly spun-off company remains undecided, with possibilities ranging from an American city to keeping a Swiss base while maintaining U.S. company status. However, given Jenisch’s proactive nature, it’s likely he will prefer to be where the action is.