Companhia Geral de Cal e Cimento S.A. (Secil) has launched a public offer to acquire at least 67% of the share capital of Cimentos de Portugal S.A. (CIMPOR).

Secil is currently Portugal's second largest cement producer and already has a cement plant in Tunisia. As Portugal's largest cement producer and listed on the Lisbon Stock Exchange, CIMPOR also has operations in Spain, Brazil, North Africa, and Mozambique.

To finance the acquisition, as well as ensure the continuation of competitive activity in the Portuguese market, Secil has invited Holderbank to enter into an agreement. After Secil's successful bid, Holderbank would acquire CIMPOR's activities in Portugal, Morocco, Tunisia, Mozambique, and parts of the Brazilian operations.

Holderbank would acquire 11.8 million tons of cement capacity, 9 million tons of aggregates and 3.5 million cu meters of ready-mixed concrete sales volumes. In line with its strategy, Secil will keep all other foreign activities of CIMPOR in Spain, Egypt, and Brazil.

Secil will offer CIMPOR shareholders a cash payment of US$19.6 per share. Based on CIMPOR's average stock market price over the last six months, this represents a premium of approximately 30%.

Holderbank's total financial commitment represents an enterprise value of approximately US$2.7 billion per ton of capacity. Holderbank intends to finance this acquisition with initial bridging funds, eventually supported by an equity injection.

The offer depends on certain governmental authorizations and conditions together with clearance from the relevant competition authorities.

Lafarge, Titan withdraw EU filing on Amriyah Cement The Daily Khaleej Times reports that French building materials firm Lafarge and Greece's Titan Cement withdrew their request for the EU executive to rule on their planned joint takeover of Egyptian cement producer Amriyah Cement.

A joint venture of Lafarge and Titan in February bid for 55% of Amriyah, but the Egyptian government changed the bidding rules at the end of February. The new rules claimed that any bidder must buy at least 90% of its equity.

A subsidiary of Portugal's Cimpor has subsequently made an offer for 90% of the Egyptian firm.

Cembureau elects president Dr. Jurgen Lose was elected president of Cembureau, the European Cement Association, for a two-year term at the association's general assembly held recently in Helsinki.

Lose is chairman of the supervisory board "Aufsichtsrat" of Dyckerhoff AG; president of BDZ, Bundesverband der Deutschen Zementindustrie e.V., German cement industry federation; president of Bundesverband Baustoffe Steine und Erden e.V., German building materials federation; member of the board of BDI, Bundesverband der Deutschen Industrie e.V., Federation of German Industries; chairman elect of the supervisory board of AGIV, Management Holding Real Estate Business; and chairman of the supervisory board of BauDatenbank G.m.b.H., Communication Center for Building Materials Industry and Trading. He has been active in Cembureau since the early 1970s.

Michael J. Lodge, managing director of Castle Cement, was elected vice president of Cembureau for a two-year term.

Also at the general assembly, the cement associations of Hungary and the Czech Republic were welcomed as full members of Cembureau. The associations were admitted as associate members in 1992.

India's cement output increases to 8 million tons India produced 8.13 million tons of cement in February 2000 compared with 7.42 million tons in February 1999, according to the Daily Khaleej Times.

Cement production between April 1999 and February 2000 stood at 84.48 million tons, compared with 72.93 million tons in the same period the year before.

Alimak awarded contract for world's tallest building Alimak AB has obtained the contract to supply passenger/materials hoists to the world's tallest building, Taipei Financial Center in Taipei, Taiwan. Alimak's total scope of supply includes installation, local service, and parts supply for 22 months continuous operation.

European Court rules on Aalborg Portland case The European Court of Justice has ruled on the case concerning Aalborg Portland's alleged participation in a European market-sharing agreement from 1984 to 1998.

In November 1994, the European Commission imposed an administrative penalty on Aalborg Portland amounting to approximately US$3.9 million for its alleged participation in a cartel among European cement producers. Aalborg Portland appealed the case in February 1995.

The Court of Justice acknowledged several of the company's objections against the Commission's charges and lowered the penalty imposed by US$1.7 million to US$2.2 million.

Alexandria Cement awards new contracts Alexandria Portland Cement Co. (APCC) in Egypt has awarded an order for a combined circular limestone stacking and reclaiming system to Krupp Fordertechnik, Essen, Germany.

The system will have an outside diameter of 60 meters and will handle limestone with a lump size of 0 to 25 mm at a stacking and reclaiming rate of 700 tph.

APCC already operates two longitudinal storage systems delivered by Krupp Fordertechnik and commissioned in 1977.

Cemex enters Taiwan market Cemex formalized an exclusive long-term distributorship agreement with Universe Cement of Taiwan.

The agreement signals Cemex's entrance into the Taiwan cement market. It covers an estimated 900,000 mtpy in sales in one of Southeast Asia's most dynamic markets.

The cement distributed pursuant to the agreement will originate from Cemex's affiliate in the Philippines, Semen Gresik of Indonesia, or other countries in the region.

Universe Cement's terminals in Keelung and Taichung are strategically positioned to service Taiwan's key markets, including Taipei and Central Taiwan. Cemex will also provide technical support to Universe Cement to assist in optimizing its operations.

Norwegian firm to buy 49% stake in CMS Cement Scancem International ANS of Norway has agreed to buy a 49% stake in CMS Cement Sdn Bhd, a wholly-owned subsidiary of Cahya Mata Sarawak Bhd (CMSB), according to the Daily Star Business.

CMS Cement is Sarawak's sole cement producer. It owns two grinding mills with a total annual production capacity of 1.75 million tons.

Scancem, which has been taken over by Heideiberger of Germany, the world's second largest cement producer, last year signed a memorandum of understanding with CMSB for a possible joint venture in the latter's cement business.

IFC offers financial support to three cement industries The International Finance Corp. has agreed to participate in the financial restructuring process of Maple Leaf Cement, D G Khan Cement, and Fauji Cement, reports the Daily Business Recorder.

IFC has decided to reschedule its loan to these three cement giants. All three firms are up-to-date on payment of interest on their loans, but with the financial restructuring they will be provided more space to plan ahead.

Sources close to IFC said, if the government bows to their demand it will destroy the cement industry, banking sector, and affect federal revenue collection, as 68% of sale prices of cement is subject to excise duty collected by the federal government.

Nitol White Cement to expand Just four months after it went into production, Bangladesh's Nitol White Cement Industries Ltd is thinking of expanding output to take advantage of booming construction and export prospects, reports the Gulf News Daily.

The plant, the country's only producer of white cement, can produce up to 40,000 tpy but is currently operating at half capacity.

Bangladesh currently imports 25,000 tpy of white cement to meet domestic demand.