German aggregates and building materials giant HeidelbergCement has decided to write off around €3.4 billion before tax due to the coronavirus crisis, according to reports in the German financial media this week.
The write off is said to follow a revaluation of the group’s multi-national asset portfolio.
Around a fifth of the impairment of value reportedly relates to assets from the acquisition of Bergamo, Italy-based Italcementi, which has been particularly hard hit by COVID-19.
Around half of the impairments are said to be attributable to UK assets.
In February this year, HeidelbergCement launched a programme that focuses on maintaining liquidity and cost savings.
The measures are likely to take effect in the short term and partially compensate for declining sales in Q2 2020.