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China: LafargeHolcim has signed a framework agreement with Tianjin Circle Enterprise Management Center (Tianjin Circle) to sell a controlling stake in Sichuan Shuangma Cement (Shuangma) for Euro469m. The multinational cement producer owns 55.93% of Shuangma. The sale is subject to approval from the shareholders of Shuangma and the completion of a mandatory offer for the shares of minority shareholders of Shuangma, as well as normal regulatory approval. The acquisition is expected to be complete in the fourth quarter of 2016.
Under the terms of the agreement, Tianjin Circle has agreed an option to purchase the remaining shares in Shuangma from LafargeHolcim in 2018 for Euro147m. LafargeHolcim has also agreed an option to buy Shuangma’s cement assets, within a certain period after the sale closes, for around Euro358m. On this basis, the expected immediate impact on LafargeHolcim net debt of these agreements would have been a reduction of Euro112m.
Sichuan Shuangma is listed on the Shenzhen Stock Exchange and operates four integrated cement plants with a production capacity of 11Mt/yr.
Chzhungtsai Mohir Cement plant to open in Tajikistan 01 August 2016
Tajikistan: The Government of Tajikistan and the Chzhungtsai Mohir Cement company are set to open a 1.2Mt/yr cement plant in Yovon district, Khatlon province in August 2016 according to the Ministry of Industry and New Technologies. The plant has an investment of US$120m and it will create 500 jobs, according to Asia-Plus news agency. Construction originally started in 2014.
China Resources Cement starts production at Lianjiang plant 01 August 2016
China: China Resources Cement has started operation at its 6000t/day cement plant in Lianjiang, Guangdong. The integrated cement plant is aimed at markets in the west of Guangdong and the southeast of Guangxi. The company has completed the construction of all of its planned production lines in Guangdong. Its total clinker and cement production capacities in Guangdong are 14.4Mt/yr and 22.5Mt/yr respectively.
Cementir buys Sacci cement business for Euro125m 01 August 2016
Italy: Cementir Holding’s subsidiary Cementir Italia has acquired Sacci’s cement and ready-mixed concrete business division for Euro125m. The acquisition has been made by Cementir Sacci, a wholly owned subsidiary of Cementir Italia. A payment of Euro122.5m was made on 29 July 2016. The remainder will be paid in July 2018. A financing contract has been signed with the related party ICAL 2 to finance the acquisition.
Cementir Holding group will operate in Italy through two companies: Cementir Italia and Cementir Sacci, approximately doubling its production capacity, commercial strength and distribution network. The industrial footprint has grown, with the addition of five cement production plants, three distribution terminals and 28 ready-mixed concrete plants. In Italy, total installed capacity will be 6.8Mt/yr and the company’s presence will increase from six to 11 of the country’s regions.
Cementir presents mixed results in first half of 2016 01 August 2016
Italy: Cementir Holding’s sales revenue has risen by 1.1% year-on-year to Euro481m in the first half of 2016 from Euro476 in the same period in 2015. However, its earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 1.5% to Euro72m from Euro73.1 and its net profit fell by 53.7% to Euro11m from Euro23.9m. The group blamed the drop in profit indicators on exchange rate movements.
Sales volumes of cement for the building materials producer rose by 4.8% to 4.75Mt from 4.53Mt. Revenue grew in Scandinavian countries and in Malaysia, it remained stable in Turkey and it fell in Italy, Egypt and China.