Cimpor moves into Ecuador

Cimpor moves into Ecuador
Published: 14 October 2009

Cimpor del Ecuador, a 51 per cent-owned subsidiary of Cimpor is making a offer for Cemento Chimborazo, currently the smallest of the four cement producers active in Ecuador. Cemento Chimborazo, which last year produced 0.24Mt of cement, is presently 95 per cent in the hands of the government-controlled Banco Nacional de Fomento. 

Cimpor is making a US$10m offer for 100 per cent of the equity, and it this goes ahead, will invest US$25m to increase the annual capacity to 0.36Mt of clinker and 0.5Mt of cement. A longer term plan exists, under which a new cement works would be built, to be 70 per cent owned by Cemento Chimborazo and 20 per cent by the Ecuadorian government, with an annual clinker capacity of around 0.50m tonnes and a cement capacity of 0.72Mta at an estimated cost in the region of US$135m.