Cement Capacity Expansion
HeidelbergCement and IFC join Forces for Cement Capacity Expansion
20.05.2010 | Deskman: Marcel Dröttboom
Heidelberg, Germany – HeidelbergCement and IFC signed agreement to support development of local infrastructure in Sub-Saharan Africa. IFC and its financial partners will inject equity of up to USD 180 million. HeidelbergCement will use the capital for construction and upgrade projects to expand cement production capacity.
HeidelbergCement and IFC, a member of the World Bank Group, signed an agreement to support the development of local infrastructure in Sub-Saharan Africa by increasing the local supply of cement. Under the agreement, IFC and its financial partners will inject equity of up to USD 180 million in exchange for a minority stake in HeidelbergCement Group’s operations in Africa. HeidelbergCement is committed to use the proceeds to invest in the expansion of local cement capacities in sub-Saharan countries supported by the International Development Association (IDA).
IFC and its financial partners, which include Proparrco, will inject equity by way of a capital increase in Scancem International, a subsidiary of HeidelbergCement that runs the company’s operations in Africa. The initial capital injection will amount to USD 60 million. The total equity contribution may be increased up to USD 180 million. HeidelbergCement will use the proceeds from the capital injections to expand its operations in sub-Saharan IDA countries. Part of the initial capital injection will be used to expand the cement mill capacity in Liberia. Additional projects envisaged include the construction and upgrade of mill and kiln capacities in Ghana, Togo and Gabon. The projects are expected to be implemented by 2013.
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