LafargeHolcim announces it has signed an agreement with Siam City Cement Public Company Limited for the divestment of its interest in Holcim Lanka for an enterprise value of US$400 million. Holcim Lanka operates one integrated plant and one grinding plant and is the country’s leading cement manufacturer. The proceeds from the sale of the divestment business will be used to further reduce debt.
Following the agreement earlier this month for the divestment of Lafarge India to Nirma Limited, this is a further step for LafargeHolcim towards reaching its CHF3.5 billion divestment target for 2016. The Group has now secured three-quarters of the program.
Closing of the transaction in Sri Lanka is expected in the third quarter 2016.
Singha Cement’s state-of-the-art cement terminal is due for completion next year and Tokyo Cement undertakes a new environmental project to protect the Sri Lankan marine life.
The ‘One Cement Factory in One Harbour’ concept proposed by the Minister of Ports and Highways is being pursued, with four grinding and packing plants planned at the country’s main ports.