LafargeHolcim Bangladesh, the only portland limestone cement brand in the country, has set up a state-of-the-art cone-shaped crushing unit with ancillary equipment.
According to an official disclosure on Sunday, the multinational company began commercial production of clear size-graded aggregate (graded limestone chips having uniform size and shape conforming to international standards) from Saturday.
The new crushing unit can produce 1.2 million tonnes of clear-sized graded aggregate per annum within the premises of the company's existing integrated clinker and cement manufacturing plant at Chhatak in Sunamganj with an investment of Tk 40.1 crore.
The entire investment is made from the company's own fund, the disclosure said.
The news sent LafargeHolcim’s stock price soaring about 9.8 per cent on Sunday before closing at Tk 59.40.
LafargeHolcim Bangladesh registered a profit of about Tk 65 crore in the July-September quarter, up 31 per cent year-on-year. Its sales during the quarter edged up 3 per cent to Tk 365.5 crore.
In 2019, the company, which owns four cement plants including the country's only integrated cement maker in Chhatak, logged in a profit of Tk 173.8 crore, up 55.9 per cent year-on-year.
Lafarge disbursed 10 per cent cash dividend for the year, which is the same as in 2018.
Earlier on Thursday, LafargeHolcim signed an agreement to acquire Firestone Building Products (FSBP), a leader in commercial roofing and building envelope solutions based in the US.
This acquisition will help their transformation in becoming a global leader in innovative and sustainable building solutions.
This transaction is valued at $3.4 billion, to be financed with cash and debt while maintaining net debt below 2x. Synergies of $110 million per year are expected on a run-rate basis within two years of closing, which is expected in the second quarter. The acquisition is earnings per share (EPS) accretive from the first year, said a statement from its Bangladesh office.
The deal will also strengthen LafargeHolcim’s biggest market, the US, with annual sales to exceed $6 billion. It also plans to expand in Europe and Latin America to become the global leader in flat roofing systems, the statement also said.
With this acquisition, LafargeHolcim will add 15 manufacturing facilities, 1,800 distribution points, and three R&D laboratories to its network.
Upon completion of the sale, FSBP will continue to be headquartered in Nashville, Tennessee, and all 1,900 FSBP employees will transition to LafargeHolcim.
“With Firestone Building Products we are strengthening our biggest market, the US, while also building a global growth and innovation platform for the company,” said Jan Jenisch, chief executive officer of LafargeHolcim.
