This concludes a long process which began in 1998, when Holcim acquired 20% of Cessa.
Thomas Knoepfel, member of Holcim’s Executive Committee and president for Latin America, stated that by concluding this acquisition, the company enters a new stage in its internationalization process, providing stability and new opportunities.
The company justified its decision on its need to focus on its core business, cement production.
Information on the sale of Productos de Concreto was issued in a statement released by Holcim Costa Rica, although the company did not disclose the name of the firm that will acquire PC, which sells finished products.
The $157 million transaction will place the Colombian cement producer in a prevailing position in the Central American market.
Swiss cement maker Holcim, the world's second largest, made this announcement: "As a consequence of the nationalisation of Holcim Venezuela, the long-term economics of supplying Holcim-produced clinker and cement to the grinding stations and terminals in Panama and the Caribbean is no longer viable".
The plant, which will cost $150 million, will provide a power supply for the company’s own cement manufacturing, and surplus power produced will be sold.
To date the company has not determined the location of the oil based generating plant.
Holcim's executive director, Ricardo Chavez Caparroso, said that "right now we are conducting market research and feasibility studies and looking at everything related to environmental permits and other requirements necessary if the decision is made to build the power plant", noted an article in Elsalvador.com.
The president of "Cementos Argos" explains their decision of buying Holcim's operations in the region.
The expansion of the Canal is a great opportunity for the cement company. In addition to purchasing Holcim's assets in Panama, Haiti, Dominican Republic and several Caribbean islands, Argos is also expanding production capacity in its Cartagena Plant in Colombia, with a new clinker line that will allow them to produce 1.800.000 tons per year.
With a new production plant for concrete and slurry and the elimination of the plant at San Juan Opico, Holcim has increased its production capacity to 400 cubic meters per hour.
With the new plant 130 cubic meters of concrete will be produced per hour in one of the towers, while in the other 90 cubic meters of slurry will be produced per hour, with the option to also produce concrete, as demand requires. In addition it will be able to "... recycle fresh concrete waste, to make more product, automatically and in coordination with a quality laboratory."
The construction of the hydroelectric station Tumarín, and the eventual realization of the Grand Canal project, have created great expectations for business deals in the sector.
Holcim is waiting for clear signals about the canal project, a project that could represent a great opportunity for the company.
On the other side is the hydroelectric station Tumarín, over which they have had been making approaches for several years, even though it has not yet fully started. "While the company has had to reorganize, expand its staff and equipment, and increase its investments in order to keep pace with the growth of the sector, the construction of the canal (a Pharaonic project) will force the two cement companies to work flat out to meet the requirements for the work," noted an article in Confidencial.com.ni.
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