SCCC acquires Holcim Lanka
SIAM CITY Cement, Thailand’s second-largest cement producer, has agreed to acquire Holcim Lanka from Netherlands-based Holderfin for up to Bt13 billion.
SCCC told the Stock Exchange of Thailand yesterday that INSEE Cement Holdings (ICHC), a wholly owned subsidiary of the company, would acquire a 90.0-per-cent interest in Holcim Lanka.
ICHC is in the process of being incorporated.
Ceylon Ambuja Cements and Lafarge Mahaweli Cement, which are direct subsidiaries of Holcim Lanka, will become indirect subsidiaries of ICHC and SCCC.
Holcim Lanka is the only clinker manufacturer operating a fully integrated cement plant with a capacity of 1.3 million tonnes per year in Puttalam that has access to the only operating limestone deposit in Sri Lanka.
Holcim Lanka also operates a cement-grinding facility in Galle with a capacity of 1.0 million tonnes per year.
It manages three terminals with packing capacities in three local ports with a total import capacity of 1.6 million tonnes per year.
Holcim Lanka positions itself as the only provider of application-based products, to respond to customers’ various needs, and leads the introduction of blended cement in the industry.
Holcim Lanka’s local brands such as Sanstha enjoy very strong recall levels and are recognised in the market for their superior quality.
The brands also benefit from the local manufacturer tag, providing a competitive advantage over importing competitors.
The product range is used widely across residential, commercial and infrastructure projects. The company has long standing relationships with several blue-chip customers and has been involved in numerous landmark projects in the country.
It leverages a nationwide retail and distributor network with some 120 distributors and more than 5,000 retailers.
Over the years, it has optimised logistics and distribution operations, resulting in lower costs, increased operating safety and reduced carbon footprint.
It posted a net profit of Bt466.29 million last year, down from Bt502.45 million a year earlier.
Its revenue, however, went up from Bt4.74 billion in 2014 to Bt5.71 billion last year.
SCCC on Friday reported that its second-quarter net profit of Bt1.22 billion was down 13.3 per cent year on year and 10.5 per cent quarter on quarter.
However, excluding foreign-exchange gains, its normalised profit fell 14 per cent year on year and 10.8 per cent quarter on quarter to Bt1.21 billion.
