Global Cement Industry: Recent Developments

/ / Published in Construction
Cement Industry consulting

There have been various developments in the global cement industry recently. We tracked several mergers and acquisitions (M&As) across the world. Some of them are stated below.

  • In Somaliland, Raysut Cement and MSG Group formed a partnership in July 2019 for making a new cement grinding plant in Berbera, Somaliland. The project would see an investment of around $40 million for the planned capacity of about 907,185 tonnes. As per the partnership deal, Raysut Cement will hold 55% stake in the plant while MSG Group will hold the remaining 45%.
  • In Oman, Raysut Cement announced on May 2019 to form an agreement with Fujairah Cement Industries to buy its stakes in Sohar Cement Co.  The deal will cost Raysut Cement of about $60 million.
  • In Bangladesh, Bashundhara Group agreed with China Railway Group in May 2019 for the supply of cement to Padma Bridge Rail Link which comes under China Railway Group. The rail track is nearly 225 km which runs between Dhaka and Jessore. As per the agreement, Bashundhara Group is responsible for the supply of 0.7 million tonnes of cement to the project.
  • In Malaysia, LafargeHolcim formed an agreement with YTL Cement to sell its 51% stake in Lafarge Malaysia, which has two grinding and three integrated cement plants in operation. The proposal was presented in May 2019. With this deal, LafargeHolcim will completely withdraw from the Malaysian cement market. The deal is valued at around US$396 million. Furthermore, LafargeHolcim also agreed to sell its 91% stake in Holcim Singapore Ltd to YTL Cement.
  • In Saudi Arabia, Riga Company and Al Jouf Cement formed a non-binding agreement in April 2019, under which China’s Riga Company would take the responsibility of converting the second cement line at Al Jouf Cement to white cement.
  • In Italy, Buzzi Unicem formed an agreement to buy HeidelbergCement plants which include Testi integrated cement plant at Greve Italy, Borgo San Dalmazzo grinding plant at Piedmont Italy and Arquata Scrivia grinding plant at Piedmont Italy. The agreement is expected to be completed by the end of July 2019.
  • In Spain, Turkey’s Çimsa Çimento made a deal with Cemex to buy its white cement plant in Buñol, Spain. The deal value is around is US$180 million and is expected to be finalised in the second half of 2019.
  • In Oman, Raysut Cement and Ayoki Engineering signed an agreement to upgrade the clinker cooler line three at its Salalah plant. The completion of the upgrade is expected to be completed in the second half of 2019. According to the agreement, the existing cooler in the unit will be replaced by 4,000 tonnes/day IKN Pendulum clinker cooler, which has the ensured clinker production capacity of 3,500 tonnes/day.
  • In China, BBMG and Jidong Cement signed an agreement in January 2019 under which BBMG will sell its seven companies to Jidong Cement for approximately US $227 million.  BBMG holds majority or 100% stakes in these companies, which are: Zhuoquan BBMG Cement, Baoding Taihang Heyi Cement, Lingchuan BBMG Cement, Handan Shexian BBMG Cement, Lanxian BBMG Cement, Xuanhua BBMG Cement and Qinyang BBMG Cement.
  • In Bangladesh, Saudi’s Engineering Dimensions and Bangladesh Chemical Industries Corporation (BCIC) agreed in December 2018, to build a modern cement plant at Chhatak Upazila in Sunamganj district. The plant will be named Bangladesh Friendship Cement Company Limited (SBFCCL)
  • In Indonesia Semen Indonesia and Holcim Indonesia signed a sales and purchase agreement in December 2018, under which Semen Indonesia will buy 80.6% shares of Holcim for US$917 million. Moreover, under the agreement Semen will increase its production capacity to 53 million tonnes/year from 38.2 million tonnes/year
  • In Taiwan, Taiwan Cement Corporation acquired a 40% stake in OYAK Cement in October 2018. The deal was concluded by around US$640 million, which was considered as the highest transaction in the manufacturing sector in Taiwan in 2018.

 

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