Brazil: Votorantim enters India

Brazil: Votorantim enters India
Published: 04 March 2005

After acquiring assets in Canada and the US, Votorantim Cimentos is penetrating in India through the take over of a plant with a capacity of 3.5Mta of cement for US$80m.

Votorantim has kept undisclosed the name of the Indian group, besides being partnered with an European company in this venture. Each partner will pay US$35m to the Indian group and assume a liability of US$10m.

Meanwhile Votorantim intends to increase investments from US$980m to US$1.8bn resources to double capacity to 7Mt within three years in North America - in 2004, it turned over US$342m in Canada and the US. The group dedicated most part of investments, of US$50m, to technology and developed services in Brazil where it owns a 42% market share. By the end of 2004, Votorantim acquired two Great Lakes plants from the Mexican Cemex for US$400m. 

The company already holds two plants from St Marys in Canada, acquired in 2001 for US$760m, as well as a 50% stake in Suawannee in Florida and smaller units and grinding & distribution facilities in which it invested US$140m. Total investments in acquisitions reached U$1.3bn and Votorantim intends to own a 30% share in the Great Lakes market over 16%.