Cimpor has acquired an 80% stake in the Peruvian Cementos Otorongo for around EUR12.8m as a result of a capital increase by Cementos Otorongo, which has plans to build an integrated cement works in the Arequipa region of Peru.
At present, Cementos Otorongo owns a cement silo and a bagging plant at El Callao and a majority share of an aggregates business based near Lima.
The company has obtained permits to build and operate an integrated cement works and already owns mineral reserves needed for clinker production. The Arequipa cement plant will require an investment of approximately US$125m over the next two years in order to build the intended 0.65Mta cement plant.
The Arequipa plant would be the seventh cement works in the country, which is expected to consume around 6.5Mt of cement in 2008 and has a capacity 10.3Mt, not including the capacity to be built by Cementos Otorongo. The Peruvian deal marks the first move by Cimpor into Spanish-speaking Latin America.