ISTANBUL, March 21, 2019
ISTANBUL, March 21, 2019 /PRNewswire/ -- Çimsa, a subsidiary of Sabancı Holding, is becoming the global leader in white cement. Mexican company CEMEX, one of the world's leading cement producers, has agreed to sign a 'binding agreement' for the sale of its Buñol White Cement Plant in Valencia (Spain) to Çimsa for US$180 million. The sale is expected to be completed in the second half of 2019. Following this acquisition, Çimsa, which is already the prominent European white cement player, capacity wise, will become a global leader.
Sabancı Holding CEO Mehmet Göçmen commented that, "As Sabancı, we are proud to become a world leader with our new investment in the cement sector, an industry in which we have been operating for nearly 50 years. Being present in new geographies, as part of the strategic roadmap we previously defined as 'Sabancı of New Generation', is a key priority for us. This investment, which brings our leadership role in Turkey to the international arena, is a very significant milestone when it comes to managing our portfolio in a more balanced and dynamic way. We are targeting global leadership positions by responding to the world's new developments and setting new industry operational benchmarks. With this approach, similar to what we have achieved with Composites in our Industry strategic business unit, we are now taking our cement business to the next level. We see it as our responsibility to create value not only for Sabancı Group, but also for our country. Beyond mere financial considerations, we will leverage our technical expertise to further contribute to the growth of the cement sector in Turkey. We will continue monitoring new opportunities to further enhance, in the short- to medium-terms, our global leadership".
The most technologically advanced white cement plant in Europe
Noting that the Buñol White Cement Plant is the most technologically advanced white cement plant in Europe, Tamer Saka, the President of Sabancı Holding Cement Group and Chairman of Çimsa, also said: "With its expertise in white cement, special products and wide distribution network, Çimsa is among Turkey's leading exporters. At Çimsa, in 2018, we have generated over 50 percent of our operational profit from our overseas operations. With the purchase of the Buñol White Cement Plant in Spain, we are upgrading our game in the white cement sector, the highest value-added business in the global cement market. With the integration of the Buñol White Cement Plant to our production and distribution networks, we will increase our white cement production capacity by 40 percent, translating into Çimsa becoming the world's largest white cement company."
The transaction will be completed upon securing customary authorisations from regulators.