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Titan Group restructures its operations in South-East Europe
All change for Greece's Titan Group in Bulgaria and FYROM December 9th, 2003 -- This week saw much buying and selling from Athens-based Titan Cement Co. SA. Proving it still has plenty of muscle to flex, Titan announced two acquisitions and one sale in South-East Europe. Yesterday, Titan announced it is to acquire 99.9% of the shares of the Bulgarian firm Zlatna Panega Cement AD from Germany's HeidelbergCement Group. Located near Sofia, Zlatna has a production capacity of one million tonnes of cement. It also has three Ready-Mix Concrete plants. The share purchase agreement was signed on December 8th, 2003. The agreement is subject to the approval of the antitrust authorities in Bulgaria. Zlatna Panega is HeidelbergCement’s sole cement plant in Bulgaria. Because of this and the fact that there are no prospects of reaching a more significant presence in the country, HeidelbergCement has decided to sell the operations. The buyout of Zlatna is part of Titan's strategy of expansion abroad, the Greek multinational said. HeidelbergCement maintains its presence in Eastern Europe with its operations in the Czech Republic, Poland, Hungary, Romania, Croatia, Bosnia and Herzegovina, Ukraine, Russia and the Baltic states. It operates 14 cement plants as well as 70 aggregates and 140 ready mixed concrete plants in this region. HeidelbergCement is one of the largest companies in the construction and building materials industry, with 38,000 employees at approximately 1,500 locations in 50 countries around the globe. In 2002, the company achieved sales volumes of 46 million tonnes of cement and realised a turnover of EUR 6.6 billion. Subsequent to the acquisition of Zlatna Panega Cement and Zlatna Panega Beton in Bulgaria, and with an aim of simplifying the shareholding structures and of balancing its presence in the different markets of the region, Titan announced the conclusion of a second agreement, according to a Titan press release on December 9th. Titan will sell 99.9% of the shares of the Bulgarian firm Plevenski Cement AD to Switzerland's Holcim Ltd. At the same time, Titan will acquire 46.5% in Skopje-based A.D. Cementarnica USJE from Holcim, increasing the Greek cement player's holding to 94.8%. USJE is based in the Former Yugoslav Republic of Macedonia and has an annual production capacity of one million tonnes, whilst Plevenski Cement operates the Pleven plant, situated near the city of Pleven in northern Bulgaria, and has an output capacity of 500,000 tonnes. The agreement is subject to approval from the relevant competition authority.
Holcim has had a firm foothold in the Bulgarian market since 1997 through its Holcim (Bulgaria) AD Group company. Its plant in Beli Izvor is situated around 120 kilometres north of Sofia and has a production capacity of approximately 650,000 tonnes of cement. Holcim is one of the world's leading suppliers of cement, as well as aggregates (gravel and sand), concrete and construction-related services. Holcim (Bulgaria) AD and Holcim Karierni Materiali AD are major cement and aggregates suppliers in Bulgaria. From its origins in Switzerland, the Holcin Group has grown into a global player with strong market presence in over 70 countries on all continents. The Holcin Group employs more than 48,000 people. The acquisition of 99.9% of the shares of the Bulgarian firm Plevenski Cement AD from Titan enables Holcim to substantially expand its market presence in Bulgaria. Once the deal is approved, Holcim will operate one cement plant located close to the city of Vratza, eight aggregates quarries and employ more than 550 people. The annual cement production capacity will be 1.9 million tonnes. About Zlatna Panega Cement and Zlatna Panega Beton High-quality cement and ready mixed concrete is produced in Bulgaria by Zlatna Panega Cement and Zlatna Panega Beton. HeidelbergCement entered the market in Bulgaria in 1997 when the privatisation contract for the Zlatna Panega cement plant was signed. The plant was built in 1966 with two technology lines. In 1970 three more kilns were put into operation. At present, it produces clinker and four kinds of cement, with part of the clinker produced for export. A major advantage of the Zlatna Panega plant is its quarry, rich in marl and lime low in alkalai content, thanks to which the plant is able to specialise in the production of sulphate-resistant cements. HeidelbergCement has started a scheduled modernisation, including upgrading of basic units: kilns, mills, packaging machines and silos. A newly reconstructed kiln was put into operation in 2000, resulting in a 50% increase in production capacity and a 30% reduction in heat and electrical energy consumption. In 2001, an upgrading of the plant's bulk loading station was completed, raising efficiency while at the same time lowering dust emissions. In addition, as part of the project, a new transport line and loading building were constructed. In the fields of environmental protection and improvement of energy efficiency, the Zlatna Panega plant's most important new project was the construction of an alternative fuels installation to use more economically efficient energy sources, while at the same time reducing the ecological burden on the nation's landfills. The Zlatna Panega plant is also experienced in the use of additives for cement production, including blast furnace slag as a cement component and pre-formed waste-gypsum as a cement additive. For HeidelbergCement's ready-mixed concrete activities in Bulgaria, two joint venture companies -- TBG Sofia and TBG Plovdiv -- were established, and three plants are currently in operation. In 2003, the companies were merged and rebranded under the name Zlatna Panega Beton. For further information, contact: Zlatna Panega Cement AD READY-MIXED CONCRETE Zlatna Panega Beton EOOD HOLCIM Holcim (Bulgaria) AD Sources: Titan Cement, Holcim, HeidelbergCement.
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