01 July 2016
Eurocement to use CNBM investment to cut debt 01 July 2016
Russia: Eurocement Group plans to use part of the funds raised from China National Building Materials Group Corporation (CNBM) to reduce its debts. The cement producer told Interfax that, although negotiations are on going, it wants to use some of the funds raised through the Chinese company’s participation in its capital to restructure current debt. It will also use the funding to invest in new ‘high-return’ areas.
Eurocement signed a partnership agreement with CNBM on 25 June 2016 during Russian president Vladimir Putin's visit to China. CNBM plans to develop its business in the construction materials market in Russia and the CIS, including by acquiring an equity stake in Eurocement Group. The total investment could be as high as US$5bn.
China: China Resources Cement (Fengkai), a subsidiary of the China Resources Cement, has started operation of its sixth 5000t/day clinker production line at its cement plant in Fengkai County, Guangdong Province. The site has a total clinker production capacity of 9.3Mt/yr and a cement production capacity of 8Mt/yr. the plant mainly serves the Pearl River Delta area of Guangdong Province.
UltraTech faces block to Jaiprakash Associates deal 01 July 2016
India: Jaiprakash Associates has had problems meeting its financial commitments towards the purchase of some of its cement plants by UltraTech Cement. Sources quoted by the Mint newspaper said that the cement producer had met issues clearing statutory dues and providing necessary working capital for the plants under review. They added that UltraTech Cement had also sought additional funding ahead of the completion of the US$2.4bn deal. Both cement producers have claimed that the deal is still on track.