Cemento Nacional sells non-core assets

Cemento Nacional sells non-core assets
Published: 10 September 2004

Ecuadorian cement producer Cemento Nacional (CN) has sold non-core assets to maintain a focus on cement, concrete and aggregate production, daily newspaper Hoy reported.  Five factories that produce blocks, mortars, and prefabricated shapes among other products have been sold under plans formed in 2003 to return to the company’s main businesses, according to Andreas Leu, executive president of the group. CN which produces 1.9Mta of cement.

"We consider that now is the time to strengthen the [core] business, Leu said. "We evaluated the market and discovered that there were people specializing [in the other products], and because of this we decided to sell."  The prices for the sales have not been published, but in 2003 the factories were responsible for 10% of the group’s US$240mn in net profit, according to the newspaper.