Sell-off Ssangyong Cement on the cards

Sell-off Ssangyong Cement on the cards
19 February 2019

Privately-held investment fund company Han & Co, is expected to sell off Ssangyong Cement in the second half of this year, according to Asia Today.

The minimum sales amount is estimated to be KRW2.5trn (US$2.22bn). HanCo Cement Holdings holds a 77.44 per cent stake in Ssangyong Cement after becoming a majority shareholder in 2016.

Upon acquisition Ssangyong Cement included car electric parts, parts and oil distribution businesses by HanCo restructured the business around cement and improve the efficiency of its main cement business. Yeongwol and Donghae cement plants are building infrastructure to use waste such as plastics to use as alternative fuel. In addition, the company completed a waste heat power plant at Donghae with a capacidty of 43.5MWh. As a result of the new WHR facility, the plant expects to reduce its power costs by 30 per cent.

Last year, Ssangyong Cement sales were KRW1.5trn, representing a 0.5 per cent slip in revenues. Operating profit in 2018 fell 1.6 per cent YoY to KRW247bn.

Published under Cement News