Displaying items by tag: Acquisition
Egypt: Mondi has acquired the paper bag converting lines from National Bag and Egypt Sack, two subsidiaries of Lafarge Cement Egypt, for an undisclosed sum. The production lines will increase Mondi’s capacity by around 150 – 180m bags/yr and strengthen its position in the Egyptian paper bag market. Local subsidiary Mondi Paper Bags already operates two plants in Egypt and with this acquisition will become a key supplier of paper bags to Lafarge Cement Egypt.
Claudio Fedalto, the chief operating officer of Mondi Paper Bags, said “We are excited to have signed a long-term supply agreement with Lafarge Cement Egypt and to servicing them locally in Egypt. The collaboration will offer Lafarge access to our latest innovations, industry expertise, strong plant network and customer service.”
Shree Digvijay Cement invests in green energy project
13 April 2022India: Shree Digvijay Cement has executed a share purchase agreement to acquire a 27% stake in a hybrid wind and solar power project from Trinethra Renewable Energy, a power producer, and Continuum Green Energy. It will spend US$1m on the deal, implying a value of US$0.13m/MW. The total installed capacity of the project is 8.1MW.
The hybrid power contract will generate about 37% of total power needed by the plant. When combined with the plant’s waste heat recovery (WHR) system, it will constitute over 65% of the total power needs of the company, representing considerable savings in the cost of power and an improved environment footprint.
Akkermann acquires Kaluga Cement Plant
13 April 2022Russia: Akkermann Cement, a subsidiary of USM Holding, has acquired Kaluzhsky Tsementny Zavod (Kaluga Cement Plant) for US$111m from state development corporation VEB.RF. VEB.RF provided a loan for construction of the plant in 2011 but the borrower was acknowledged bankrupt in 2018, according to Prime News. The plant is not yet fully built, but it is anticipated that the 3.5Mt/yr facility will create 400 jobs when commissioned.
“The asset is good,” said Akkermann Cement’s managing director Alexander Ivanov. “The dry process is one of the most efficient and budget-friendly technologies for production of cement, but the conclusion of the plant’s construction will need additional investment.”
Vicat to buy additional 42% stake in Sinai Cement
11 April 2022France/Egypt: France-based Vicat has issued a mandatory tender offer to buy an additional 42% stake in Sinai Cement. The proposal follows a final settlement agreement signed between Vicat and the Egyptian government in late March 2021, according to the Daily News Egypt newspaper. Following the completion of the transaction Vicat should own a 98% in the Egypt-based cement producer based on its reported ownership at the end of 2021.
In 2021 Vicat raised a case against the Egyptian government with the International Centre for Settlement of Investment Disputes. Media reports at the time alleged that the cement producer was being forced to reduce its shares in its subsidiary Sinai Cement due to a law stopping foreign ownership of companies operating in the Sinai Peninsula on the basis of security grounds. Around the same time Vicat also announced publicly that it was keen to continue operating in the country.
CSN receives Holcim Brazil acquisition approval
07 April 2022Brazil: The General Superintendence of the Administrative Council for Economic Defence (CADE) has approved CSN’s takeover deal with Holcim for the latter’s Brazilian business. The América Economía newspaper has reported that the US$1.03m deal covers five cement plants, among other assets.
Holcim has said that its Latin America region remains strategically important within its global operations.
Tohbu Network acquires Tohoku Sanko
06 April 2022Japan: Logistics group Tohbu Network has acquired Shiogama-based cement distributor Tohoku Sanko. The Nikkei newspaper has reported that Tohoku Sanko serves the customers of cement producers in Akita and Miyagi Prefectures. The group aims to expand its sales footprint and its productivity through shared use of vehicles, facilities, software and human resources.
Premji Invest to acquire 10% Sagar Cements stake
28 March 2022India: Sagar Cements has received board approval for the preferential allotment of a 10% stake of equity shares to Premji Invest. ET Now News has reported the value of the deal as US$46m.
Joint Managing Director Sreekanth Reddy Sammidi said “We are delighted to partner with Premji Invest and look forward to their inputs towards strengthening our processes and systems and enhancing value for all our stakeholders.”
US: Argos USA has agreed to sell a total of 23 US ready-mix concrete batching plants to Smyrna Ready Mix Concrete for US$93m. 18of the plants are situated in North Carolina and the remainder in Southwest Florida. The El Colombiano newspaper has reported that the deal includes a five-year cement supply agreement for all 23 plants. Cementos Argos said that the divestment is part of its plan to divest assets in suburban markets or that are not already integrated into its production and logistics chain.
China Resources Cement’s profit drops in 2021
21 March 2022China: China Resources Cement’s profit was US$993m in 2021, down by 13% year-on-year from 2020 levels. Its cost of sales grew by 22% to US$3.81bn from US$3.12bn. The group noted that the average cost of coal increased by 54% in 2021. It also pointed out that infrastructure investment growth slowed down in 2021. The company increased its turnover for the year by 9.7% to US$5.62bn. Sales volumes of cement and clinker fell by 7% to 81.3Mt and 7% to 3.3Mt respectively. Concrete sales volumes grew by 11% to 14.8Mm3.
During 2021 the group started construction of a second clinker production line and two cement grinding lines at its plant in Wuxuan, Guangxi. Once the upgrades are completed the plant will have a total cement and clinker capacities of 2.4Mt/yr and 1.4Mt/yr respectively. The group also acquired a 51% stake in Hunan Liangtian Cement in January 2022 to enter into the market in Chenzhou, Hunan. This company has cement and clinker production capacities of 1.6Mt/yr and 2Mt/yr respectively. An ongoing upgrade will increase the cement production capacity of 2.1Mt/yr. In March 2022 it sold its 72% stake in Shanxi China Resources Fulong Cement to Tangshan Jidong Cement to enable it to leave the northern market.
China Resources Cement has also been growing its co-processing capabilities in 2021. At the end of the year it reported 10 co-processing projects with a total capacity of 1.7Mt/yr. The projects, mostly based in Guangxi and Yunnan provinces, process municipal solid waste, urban sludge and industrial waste.
Sika acquires Sable Marco
03 March 2022Canada: Switzerland-based Sika has acquired cement products and mortars company Sable Marco. The group hopes that the acquisition will open new opportunities for it in Eastern Canada. Sable Marco reportedly generated full-year sales of US$21.7m in 2021.