Buzzi Unicem, through its fully-owned subsidiary Dyckerhoff GmbH, has reached an agreement to acquire a 100 per cent interest in Lafarge's UralCement plant in Russia for an enterprise value of EUR104m.
The 1.1Mta wet-process plant is located in the town of Korkino, some 40km south of Chelyabinks. The transaction is subject to authorisation from relevant authorities.
The divestment will contribute to Lafarge's objective to reduce net debt, the French cement major said in statement released today. Following the UralCement sale, Lafarge will remain present in Russia in the central region (Moscow), most notably through its Ferzikovo plant inaugurated in May 2014.
Meanwhile, the acquisition of UralCement will lift Buzzi Unicem's production capacity in Russia to approximately 4.5Mta.