Nicolai Tangen, CEO of the Norwegian Sovereign Wealth Fund, hosting a discussion with Miljan Gudović, CEO of Holcim, a global leader in building materials. The conversation covers Holcim's massive global footprint, its recent strategic spin-off of its North American business, and the recovery of the European construction market. Miljan shares insights into Holcim's operations in Latin America, where they serve a unique self-builder market through 2,500 retail stores. He details how Holcim leverages artificial intelligence to achieve 200 million Swiss francs in net benefits by 2028 and outlines the company's aggressive decarbonization roadmap toward net-zero emissions by 2050. Additionally, Miljan discusses his leadership philosophy, emphasizing decentralized operations, the danger of complacency, and the importance of quick decision-making. He reflects on his personal journey from Sarajevo to Australia, his university obsession with Leo Tolstoy's classic War and Peace, and his current interest in biographies of innovators, such as Walter Isaacson's Elon Musk, which shape his perspective on leadership and continuous learning.

The Scale and Transformation of Global Concrete

Miljan highlights the sheer scale of concrete consumption: "After water, concrete is the second most consumed material on Earth. We use approximately 30 billion tons of concrete every single year." - Miljan

The building materials industry is undergoing a massive shift driven by innovation and sustainability, moving away from its historically conservative roots.

Holcim has successfully reformulated its products to replace highly CO2-intensive raw materials with cheaper, more sustainable alternatives, which now represent over one-third of its sales.

Strategic Spin-Offs and Regional Market Dynamics

Holcim spun off its North American business to create distinct growth chapters, resulting in Holcim finishing 2025 as the best-performing stock on the Swiss Market Index.

"What we are seeing in Europe, for example, there is a massive shortage of housing. There is a— we are missing close to 10 million homes." - Miljan

Miljan expects European infrastructure spending to be boosted by increased defense budgets and the eventual reconstruction of Ukraine.

In Latin America, Mexico is a major growth driver, with President Claudia planning to build 1.8 million homes over the next five years.

To serve the Latin American market, where half of the customers are self-builders, Holcim operates 2,500 retail franchise shops called Desensa.

Driving Efficiency and Net-Zero Goals with AI

"Yes, this year we came out with the ambitious plan to hit 200 million Swiss francs in net benefits by 2028." - Miljan

AI platforms process data from massive industrial complexes to predict equipment failures, optimize maintenance, and enhance operational efficiency without laying off workers.

Holcim was the first in its industry to commit to net-zero emissions by 2050, treating sustainability as a core driver of profitable growth.

"By doing this, we are reducing cost, but we are reducing CO2 as well. So for us, sustainability is a driver of profitable growth." - Miljan

Decentralized Culture and Leadership Philosophies

The company operates under "Holcim Spirit," a culture built on three pillars: Purpose, People, and Performance.

Holcim maintains a highly decentralized structure with a slim corporate center, allowing local countries to drive performance and achieve industry-leading EBIT margins.

Miljan manages the business using three simple rules: "First rule is control the controllables... The second big statement that I keep repeating... is that complacency is our biggest enemy... The third pillar... is this benchmarking." - Miljan

To combat complacency in high-performing teams, Miljan utilizes direct benchmarking, comparisons, and factual data to motivate employees.

Personal Journeys, Literature, and Mentorship

Growing up in Sarajevo and moving to Australia, Dubai, and Switzerland shaped Miljan's ability to understand diverse cultures and adapt to global business environments.

During his university years, Miljan developed a deep interest in Russian literature, specifically Leo Tolstoy's War and Peace.

His recent reading habits focus on biographies of transformative figures, including Walter Isaacson's Elon Musk, Albert Einstein, and Nikola Tesla.

"Be bold. Don't be scared to make mistakes. Be open-minded." - Miljan, advising young professionals to work from the office to network and absorb expertise.

Miljan admits his biggest mistake was being too slow to make personnel changes, but notes: "I have not failed. I have just found some like 10,000 ways that won't work." - Miljan, quoting Thomas Edison.