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Sabanci to buy cement producers to increase capacity

Posted on : 13 Jun, 2013

 

Turkish industry giant Haci Omer Sabanci Holding AS (SAHOL) is looking to acquire cement production assets in the region to support its plan in doubling annual capacity or at least hitting 20 million tons/year within the next five years. Currently, Sabanci’s annual cement production capacity stands at 13 million tons.

 

Sabanci, which owns Cimsa Cimento Sanayi & Ticaret AS (CIMSA) and works with Akcansa Cimento AS (AKCNS), is looking to extend its reach within and outside Turkey to overcome the Turkish regulation that bans any company from having more than 25% control of the domestic market. The total annual capacity now stands at 106 million tons. Sabanci’s timely expansion plan coincides with the upturn of Turkey’s cement industry as the domestic market foresees recovery after the 2012 stagnation.

 

The turnaround is largely due to large infrastructural projects including highways, the Bosporus bridge and power plant projects in the country. In addition, the government’s auction of a $6.5 billion highway project to Turkish, Italian and Japanese builders, linking Istanbul with the eastern city of Izmir, is also set to boost the cement industry. Another vital project is a $3 billion suspension bridge in Istanbul, connecting roads over the city’s Bosporus strait.

 

Industry players stay alert on upcoming projects and regional trends as opportunities continue to arise. Top executives will convene at the 8^th Middle East CemenTrade in Istanbul this October 28-29 for more updates, forecasts and discussions. 

 

More information on the event will be released soon. For enquiries, please contact Ms. Grace at grace@cmtsp.com.sg or Tel. +65 6346 9147.