Displaying items by tag: siberian cement holding company

Russia: Russian government-owned Rostec is exiting a collaborative arrangement with Siberian Cement Holding Company (SibCem). The plan to build a regional cement superpower in Siberia has 'run its course,' according to local press.

In 2010 SibCem chairman Oleg Sharykin proposed creating a cement mega-producer in Siberia 'to counter the Chinese expansion' and to 'cartelise' the cement market to prevent sharp price fluctuations.

Rostec assisted SibCem to build its cement group, starting with building the cement giant in 2010 using the Russian Cement Company LLC as a platform for consolidation. The Russian Cement Company went on to acquire a 50.52% stake in Angarsk Cement, affording the government and SibCem a greater than 98% stake in Angarsk Cement. The Russian Cement Company established a 100% subsidiary in September 2011, the Russian Nephrite Company, which the Russian Cement Company has since exited.

Market analysis by RBNN Analytical Centre suggests that the three-year partnership between SibCem and Rostec yielded no significant results. In the autumn of 2013 Rostec representatives resigned from the Angarsk Cement board, while the Russian Cement Company divested its stake in the Russian Nephrite Company.

A Rostec source has indicated that the government will retain a stake in the Russian Cement Company by personal request from Sharykin, who, despite antitrust objections from the Federal Antimonopoly Service (FAS), made a deal to buy a controlling stake in Iskitimcement in 2013, which suggests that SibCem is still interested in increasing its influence in the region. SibCem sources added that Rostec is expected to divest its shareholding in the Russian Cement Company completely in 2014 and that the sale is to be channelled through companies controlled by Sharykin and domiciled in offshore jurisdictions.