Buzzi Unicem overnight signed an agreement to acquire 100% of the Russian Uralcement from the French giant Lafarge for 104 million euros in cash. The transaction will be carried out through Dyckerhoff GmbH, a subsidiary of Buzzi, and should be completed by the end of the year.
Ural cement is based in Korkino, a city about 40 km south of Chelyabinsk. The company includes a full-cycle cement plant, based on wet-process technology, with a production capacity of 1,1 million tons/year of cement and substantial raw material reserves.
With the integration of Uralcement, Buzzi Unicem “intends to strengthen its position in the Ural region and exploit the advantages deriving from the production system combined with the current Sukhoy Log cement plant – reads the note from the Italian group -. Interesting synergies and opportunities are expected in the fields of logistics, product catalog and company administration".
Dyckerhoff's presence on the Russian cement market dates back to 1994, with the acquisition of a stake in Sukholozhskcement, where in 2010 a new technologically advanced production line based on the dry process was put into operation. With the investment in the Korkino factory, Buzzi Unicem's production capacity in the country reaches approximately 4,5 million tons/year.
At the opening, the Buzzi Unicem share on the Stock Exchange dropped 1,15%, to 11,21 euro.
