Lafarge has sold its cement operations in the Urals region of Russia to Buzzi Unicem’s fully-owned subsidiary Dyckerhoff Cement for an enterprise value of €104 million. Lafarge UralCement has a 1.1 million tpa wet-process cement plant in Korkino, 40 km south of Chelyabinsk. Completion of the transaction is subject to regulatory approvals and is expected before the end of the year.
For Lafarge, this divestment contributes to its objective to reduce net debt, while Buzzi Unicem aims to strengthen its position in the region and leverage the benefits of combining the production network with its existing Sukhoy Log plant. In a statement, Buzzi Unicem says ‘Interesting synergies and opportunities are expected in the areas of logistics, product mix and business administration’.
Dyckerhoff initially entered the Russian market in 1994 with the acquisition of a stake in Sukholzhskcement and commissioned a new dry process line at that facility in 2010. With the addition of the Korkino plant, Buzzi Unicem’s capacity in Russia will reach approximately 4.5 million tpa.
Following the divestment, Lafarge will remain present in Russia through its Ferzikovo plant, inaugurated in May 2014, which is in the Central region.
Adapted from press releases by Katherine Guenioui
Read the article online at: https://www.worldcement.com/europe-cis/16092014/lafarge-sells-russian-cement-plant-to-buzzi-unicem-486/