ACC News Coverage 2014

ACC targets establishing two ready-mix concrete plants with a cost of $2 million 

 

April 15, 2014

 

 

 

 

Jose Maria Magrina, the chief executive officer of Arabian Cement Co., said that the Company's subsidiary, Andalus Ready Mix Concrete, targets establishing two ready-mix concrete plants in 6th of October and New Cairo with an investment cost of $2 million. Magrina expected starting establishments after the end of the summer season, explaining that this step comes within the framework of increasing the target production of ready-mix concrete to 200 thousand cubic meters during this year. Magrina added that the Company chooses between more than one site to buy 10 land plots to establish 10 ready-mix concrete plants in the domestic market. Regarding ACC offering on the EGX, ACC CEO noted that the Company approved floating a stake of 22.5%, which represents Degla for Engineering and Industrial Development's stake as Degla Company wanted to exit from the Company. The stake of the offer may be increased to 30% if some local investors wanted to sell part of their shares before announcing the IPO prospectus on April 28th. Magrina said that the decided stake will be divided equally between the individual investors and financial institutions. ACC targets attracting investors of different nationalities. The Company, in cooperation with financial advisors;"EFG Hermes", and "CI Capital", will hold an IPO road show in the domestic and international markets to attract greater attention to cover the subtraction. ACC focuses on opening new sales offices in Delta, and a new office in Delta will be opened through the upcoming period. The cost of establishing an office estimates between EGP 15 and 20 million. He added the Company targets paying its loans worth $100 million to the National Bank of Egypt. Mr. Maria revealed that ACC has obtained final approval from Ain Al Sokhna Port on importing coal from abroad, noting that the Company prefers to work solely in importing coal without entering into alliance with other companies. ACC is waiting MSEA's official approval to start using coal, noting that plants will depend on coke manufactured in Egypt during this year and coal will be imported from South Africa and the Philippines later. The trading is expected to start in the third week of May after getting the final approvals of the listing committee. Jose said that the production capacity of Company's clinker plants reaches 4.2 million tons, but the Company produced 3.2 million tons last year due to energy shortage. He also noted that ACC had invested $35 million during the past year to use coal and industrial wastes as it established 3 industrial units for this purpose, adding that plants are ready now to start using coal after getting the ministerial approvals. ACC CEO said that ACC targets achieving sales in 2014, close to 2013 sales equaled 3.9 million tons, pointing out that the Company hasn't allocated any sales for exportation. ACC's capital amounts EGP 757 million, with a nominal value of EGP 2/share. CI Capital and EFG Hermes will be the financial advisor and will execute the IPO next month.