Lafarge sells Russian plant
By Chris Sleight18 September 2014
Lafarge has sold its UralCement business to Buzzi Unicem’s wholly-owned subsidiary Dyckerhoff for € 104 million (US$ 135 million). The business comprises a 1.1 million tonnes per year cement plant in Korkino, 40km in the south of Chelyabinsk.
Lafarge said the divestment formed part of its debt reduction plan. It added that the company would still be present in Russia in the Central region around Moscow. In May this year it inaugurated a plant in Ferzikovo, which is about 120 km south of the capital.
Buzzi Unicem said the acquisition would strengthen its position in the Urals, where it already has a plant in Sukhoy Log. “Interesting synergies and opportunities are expected in the areas of logistics, product mix and business administration,” said a company statement.
It added that its Dyckerhoff subsidiary entered the Russian cement market in 1994, via the acquisition of a stake in Sukholozhskcement. The investment in the Korkino plant will take its annual capacity to some 4.5 million tonnes per year of cement.