Portuguese cement company Cimpor announced in Lisbon that it has acquired an 80 percent stake in Peruvian company Cementos Otorongo SAC for about 12.8 million Euro. This acquisition is part of an operation to increase the company’s capital, Portugal Post reported.

According to a statement issued on its webpage, Cimpor said that Cementos Otorongo was the owner of a number of reserves of raw materials that could be used for manufacturing clinker and cement, and it already had authorisation for construction and exploration of a factory with an annual production capacity of 650,000 tonnes of cement.

The Portuguese cement group said Otorongo currently plans to invest about USD 125 million (about 85 million Euro) in the new factory, in the Arequipa region of Peru. Its production will be absorbed by the Peruvian domestic market and represent around 10 percent of the country’s cement production. It added that Otorongo owns a set of mining concessions with enough raw materials to produce clinker and cement for the new plant, which is expected to have a 650,000 tonnes annual production capacity.
The stake was bought through Cimpor Inversiones, which subscribed to a share issue at the company, Cimpor said.