Çimsa buys majority stake in Italian firm

Çimsa buys majority stake in Italian firm
Published: 12 February 2010

Çimsa, a leading Turkish manufacturer of cement and ready-mixed concrete products under the roof of Sabancı Holding, has bought a 60 per cent stake in Italy’s Medcon for nearly €3.5m.

The company, which aims to raise its competitive power at home and abroad in addition to organic growth, is significantly increasing its presence in northern Italy, the Adriatic region and central Europe through this acquisition, the firm said in a statement Tuesday.

Prior to the acquisition, the Spain-based World Cement Group and Italian Pacoroni Group owned Medcon by 75 per cent and 25 per cent respectively. Medcon has a white and gray cement terminal with a capacity of 400,000t in Italy’s Trieste port.

The Medcon terminal provides the opportunity to reach the Italian market, which is Europe’s third-largest white cement consumer, following Spain and France. Additionally, with its advantageous location, it also offers the sale opportunity to developing Slovenia, Croatia and Balkan markets as well as the developed southern Germany and Austria markets.

The fact that the terminal is proper for both white and gray cement storage and packaging is a significant advantage. Its gray cement capacity will contribute into Çimsa’s target of becoming a regional power through new investments, the firm said in the statement.

“Çimsa, which can reach end consumers with the Sevilla Terminal in Spain and Emden Terminal in Germany and neighboring markets, continues its operations through sales to white cement producers in Italy, which constitutes 10 per cent of its sales. Italy covers its white cement demand through imports substantially,” said Mehmet Hacıkamiloğlu, Çimsa’s managing director.

Noting that Çimsa aims to reach consumers in the white cement branch with its own brand, Hacıkamiloğlu said, “Therefore, Çimsa has undertaken terminal investments in Germany, Spain, the Middle East, Cyprus and Russia since 1995.”

As a market entrance strategy, terminal investments are more advantageous compared to production facilities, with lower costs and the chance to form long-term, sustainable relations with customers, according to Hacıkamiloğlu. “The Trieste Terminal will guarantee our position in existing markets with its logistic location and create a chance to expand to the markets such as Croatia, Slovenia, Austria and southern Germany.”