OREANDA-NEWS. LafargeHolcim announces it has signed an agreement with Siam City Cement Public Company Limited for the divestment of its interest in Holcim Lanka for an enterprise value of USD 400 million. Holcim Lanka operates one integrated plant and one grinding plant and is the country’s leading cement manufacturer. The proceeds from the sale of the divestment business will be used to further reduce debt.

Following the agreement earlier this month for the divestment of Lafarge India to Nirma Limited, this is a further step for LafargeHolcim towards reaching its CHF 3.5 billion divestment target for 2016. The Group has now secured three-quarters of the program.

Closing of the transaction in Sri Lanka is expected in the third quarter 2016.

With a well-balanced presence in 90 countries and a focus on cement, aggregates and concrete, LafargeHolcim (SIX Swiss Exchange, Euronext Paris: LHN) is the world leader in the building materials industry. The Group has 100,000 employees around the world and combined net sales of CHF 29.5 billion in 2015. LafargeHolcim is the industry benchmark in R&D and serves from the individual homebuilder to the largest and most complex project with the widest range of value-adding products, innovative services and comprehensive building solutions. With a commitment to drive sustainable solutions for better building and infrastructure and to contribute to a higher quality of life, the Group is best positioned to meet the challenges of increasing urbanization.

Siam City Cement was first established in 1969 and began cement production after the completion of its cement plant in 1972, then became a listed company on the Stock Exchange of Thailand in 1977. Siam City Cement has provided world-class construction materials and services that are vital to economic growth in Thailand for more than 45 years as one of the largest cement producers in the country with innovative supply of cement products and solutions. Siam City Cement has embarked on a strategy of building a regional asset footprint that brings synergy in the wider region, having already established operations in Indonesia, Cambodia and Bangladesh.