Eric Olsen, chief executive of LafargeHolcim is to leave the company in July.
His resignation, two years after taking up the CEO role and after overseeing the merger of Lafarge and Holcim, follows an internal investigation into a plant the Swiss-French cement company operated in Syria until September 2014.
Olsen said in a statement: “After two years leading LafargeHolcim, I am proud of what we have accomplished. Putting this merger on track is a huge success that reflects the relentless commitment and passion of our 90,000 employees all around the world and is visible in our results momentum.
"Today, the Group has everything it needs to successfully transform the industry and build sustainably our future world. I fully trust our teams to transform that ambition into reality. My decision is driven by my conviction that it will contribute to addressing strong tensions that have recently arisen around the Syria case.
"While I was absolutely not involved in, nor even aware of, any wrongdoing I believe my departure will contribute to bringing back serenity to a company that has been exposed for months on this case.”
On 2 March 2017 LafargeHolcim communicated the initial findings of an independent internal investigation, commissioned by its board, into allegations concerning the Lafarge plant in Syria: specifically that company personnel had engaged in dealings with armed groups and sanctioned parties during 2013 until the plant closed in September 2014.
The internal investigation was carried out by independent external counsel with substantial experience in complex cross-border investigations.
In a statement, LafargeHolcim said: "The board has now concluded the independent investigation and confirmed that a number of measures taken to continue safe operations at the Syrian plant were unacceptable, and significant errors of judgement were made that contravened the applicable code of conduct. The findings also confirm that, although these measures were instigated by local and regional management, selected members of Group management were aware of circumstances indicating that violations of Lafarge’s established standards of business conduct had taken place."
"As part of the internal investigation and given his current role as CEO of LafargeHolcim, the role and potential implication of Eric Olsen has been a point of attention. Following an in-depth review, the Board has concluded that Eric Olsen was not responsible for, nor thought to be aware of, any wrongdoings that have been identified as part of its review. In light of current legal proceedings in France, the company will not comment further on the findings or individual conduct."
Beat Hess, chairman, LafargeHolcim, said: "Eric Olsen is a leader who brought together two companies to create one genuinely global champion. We are very grateful to him for his efforts.”
A search for Olsen’s successor will be launched immediately. In the meantime, Hess, chairman of the Board, will oversee the transition period until the appointment of the new group chief executive.
From 15 July 2017, once Olsen leaves, Hess will become interim chief executive and Roland Köhler, currently executive committee member with responsibility for Europe, Australia/New Zealand and Trading, will be appointed chief operating officer.
