Turkey’s Limak Cement set to spark cement war with Dangote

18 Dec 2015
Chibuike Oguh

Summary

Limak Cement Group has 10 cement factories in Turkey and is building cement factories in Mozambique and Ivory Coast, which are expected to begin production in 2016 and 2017 respectively.

President and CEO, Dangote Industries Limited

Limak Cement Group, the second largest cement producer in Turkey, is in talks to acquire African cement operations for up to $1 billion.

The move could spark a cement war with dominant cement producers in Africa, including Dangote Cement, LafargeHolcium, and Germany’s Heidelberg.

In an interview with Reuters, Limak Cement Group General Coordinator Gultekin Aksuyek said the Turkish firm is currently negotiating with an international cement company to buy cement operations in several African countries.

"A global cement firm is considering selling its facilities in three African countries... We are seriously interested and have signed a confidentiality agreement," Aksuyek said. "I think we will know in five to six months."

Limak Cement Group has 10 cement factories in Turkey and is building cement factories in Mozambique and Ivory Coast, which are expected to begin production in 2016 and 2017 respectively.

The African cement industry has been experiencing explosive growth in recent times as companies rush to boost capacity to take advantage the continent’s housing shortage. Dangtoe Cement, controlled by Africa’s richest man Aliko Dangote, is currently leading the fray with operations in 14 African countries and annual production capacity of 45 million tonnes.


 


Chibuike Oguh is Financial Nigeria's frontier markets analyst


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