02 January 2015
Savannah Cement plans US$200m plant upgrade 02 January 2015
Kenya: Savannah Cement plans to spend US$200m in 2015 to increase its production capacity by building a new cement grinding plant. The project will be funded through internal cash reserves and is expected to start in early 2015. The new plant will be based in Kitengela, where its current cement plant stands. Savannah Cement management said that the investment would to help to meet growing demand for its products in the market.
"Once the two plants are installed, Savannah Cement will take pole position as a truly integrated and eco-friendly cement manufacturer," said Savannah Cement managing director, Ronald Ndegwa. "We shall also be expanding our product range to meet our customers' demands." Ndegwa said that the installation of the second grinding plant and the clinker production plant is part of the firm's strategy to operate a fully-integrated cement manufacturing business.
Hungary: Lafarge Cement Magyarország has opened a storage facility for waste that will be used to help fuel its plant in Királyegyháza, southwestern Hungary. The project, involving an investment of EUro2.2m, will be used to store plastic, rubber and industrial and farm by-products.
US/UK: HeidelbergCement has announced that it has entered into a definitive agreement with an American affiliate of Lone Star Funds to sell its North American and UK building products business for an aggregate purchase price of US$1.4bn. HeidelbergCement said that up to US$100m will be payable in 2016, depending on the performance of the business in 2015. The deal excludes HeidelbergCement's Western Canada business. HeidelbergCement expects the transaction to close in the first quarter of 2015.
The sale of Hanson Building Products is consistent with HeidelbergCement's strategy of focusing on processing and refining raw materials for its core products of cement and aggregates and further downstream activities, according to a HeidelbergCement spokesperson. HeidelbergCement will retain its Hanson units in the cement, crushed stone, sand and asphalt businesses in the UK.