Cement and clinker trading company, CTI Group Inc, has agreed to acquire a minority stake in Indonesian cement producer Bosowa’s Semen Batam plant.
The arrangement gives Jordan-based CTI its first investment in one of Southeast Asia’s fastest-growing markets. Dubai-based Arqaam Capital arrange the transaction on behalf of CTI. Executives from CTI and Semen Bosowa formalised the contract signing at a ceremony on Thursday.
“Bosowa’s Semen Batam plant was producing around 50 per cent less than its full annual production capacity of 1.2Mt of cement because of some difficulties in finding a steady supply of clinker. The partnership will ensure steady supply of raw materials and the plant will produce cement with full capacity,” Tamer Makery, executive director for Corporate Finance of Arqaam Capital told Khaleej Times.
Both companies did not disclose the terms and value of the deal.
Source: Mena FN