Habesha Cement Share Company, Ethiopia

I successfully rescued the technically insolvent 1.4 million tons cement company with 650 FTEs from going out of business. In three years, I developed and implemented a holistic turnaround plan that resulted in attracting and on-boarding a new local investor who injected the capital envisaged in the turnaround plan.
 
 

Operations:

Developed a complete plant technical assessment and action plan to debottleneck production, increase availability, and replace obsolete spare parts and equipment:
  • Increased production rate from roughly 30-70%.
  • Achieved 100% substitution of expensive imported coal by local one, resulting in great contribution to bottom line.
  • Introduced regular annual plant shutdowns and improved plant availability.
  • Completed the restructuring of plant organization, incl. development of missing job descriptions, new grading system, salary structure, and incentive scheme.
  • Introduced a technical training program.

Sales and Marketing:

Implemented a new route to market for more profitable sales:
  • Introduced and sharply increased direct sales; opened first direct sales depot.
  • Regularly increased and adjusted sales prices.
  • Rebuilt brand equity in the market place.

Governance:

  • Developed and implemented missing policies.
  • Launched the implementation of SAP.

Finance:

  • Sorted out all going concerns of the company.
  • Restructured long-term loans of two major lenders.
  • Finalized an Enterprise Valuation.

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