Buzzi Unicem writes down value of US Illinois plant

Buzzi Unicem writes down value of US Illinois plant
Published: 13 December 2010

Italian cement producer Buzzi Unicem said on Friday its US subsidiary RC Lonestar Inc had decided to write down the book value of property, plant and equipment at its clinker and cement production site in Oglesby, Illinois.

The activities at the plant, which has a production capacity of 700,000t of cement, have been suspended temporarily since December 1, 2008 with the prospect to resume production in the short-term, the Buzzi Unicem statement reads.

Since the halt of production to date, the cement market in the US Midwest regions has failed to show signs of recovery and that is why the Oglesby factory will remain closed for an indefinite period of time.

The board of directors of Buzzi Unicem agreed at a meeting on Friday on the need of value write-down. Its effect on the consolidated annual profit has been estimated at some EUR 99.6m, while that on net equity – at EUR 101.6m.