Mexico's cement producer Cemex sells Baltic, Nordic assets to Germany’s Schwenk

The Mexican cement producer Cemex, S.A.B. de C.V. (Cemex) announced on Wednesday it was selling its assets in the Baltic and Nordic countries to the German construction materials maker Schwenk for €340 million, Cemex told LETA.

The assets Cemex is selling in the Baltic states include a plant in the western Latvian town of Brocēni, which produces around 1.7 million tons of cement a year, four industrial mineral quarries, two cement raw material quarries, six concrete plants, one port terminal and one land transportation terminal in Latvia.

The deal also includes a 38% stake Cemex indirectly owns in a cement plant in Akmene, Lithuania, which produces around 1.8 million tons a year, as well as export business to Estonia.

The Cemex assets that are being sold in Nordic countries include three import terminals in Finland, four import terminals in Norway and four import terminals in Sweden.

In 2018 these assets generated an estimated €27.3 million in consolidated earnings before interests, taxes, depreciation and amortization (EBITA).

Cemex intends to use the revenue raised from the deal for reducing the company’s debt and other needs.

The company is undergoing all the standard procedures required for closing the deal. It is expected that the deal will be closed in the first quarter of 2019.

Cemex is a global manufacturer of construction materials, providing its products and services to clients and communities in more than 50 countries of the world.

In 2018, Cemex turned over €86.924 million in Latvia, which is an 11.3% increase against 2017, and made a profit of €5.947 million, recovering from a loss sustained in 2017, according to information available at Firmas.lv.

Last year, Cemex sold more than a million tons of cement, as its export sales grew to 70 percent of turnover. The company exported its products mainly to Finland, Sweden and Estonia.

Latvia's Cemex is a member of the Cemex Group, one of the world's leading producers of construction materials. Cemex started operating in Latvia in 2005 upon acquisition of an international construction materials supplier, RMC Group o.l.c., which owned a cement plant in Brocēni, western Latvia. Cemex invested €300m in a new modern cement plant in Brocēni, more than doubling the output to 1.6 million tons a year. Cemex also exports its products to Finland, Sweden, Estonia, Lithuania, Belarus and Russia.

Total Cemex investments in Latvia stood at €348 million at the end of 2016.

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