Holcim and HeidelbergCement are to operate Cement Australia as a joint venture after balancing their interests in the Australian cement manufacturer. HeidelbergCement will purchase an extra 25% stake in Cement Australia via Hanson Australia, its subsidiary. This will mean that both HeidelbergCement and Holcim will each have a 50% share in the cement producer. The transaction has already been approved by Australia’s competition authority and by the authority for foreign investments. The purchase price has not been disclosed.
Cement Australia has a total cement production capacity of 4.2 million t, with two cement plants and a grinding station in East and Southeast Australia and Tasmania. A new 1.1 million t cement grinding facility is currently underway in Port Kembla, which is due to begin operations this year. Over 1000 people work for Cement Australia, which recorded revenue of around AU$1 billion in 2012.
“The planned increase of our stake in Cement Australia makes sense for us both from a strategic and an economic standpoint,” said Dr Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “Due to the expected growth of the population and the continued expansion of the mining industry, Australia is a very attractive market. Cement Australia is a highly profitable company and the planned increase in our stake fulfils all our investment criteria. In addition, we would double our cement capacity in the country to 2 million t and strengthen the vertical integration of our building materials business there.”
Adapted from press release by Louise Fordham.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/14032013/cement_australia_joint_venture_heidelberg_holcim_917/
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