Titan Cement announced the completion of a EUR50m equity investment by the International Finance Corporation (IFC) in Titan’s subsidiaries in the Western Balkans region including Macedonia, Serbia and Kosovo.
The transaction results in IFC holding, through Titan Cement Cyprus, a minority stake of approximately 11.5 per cent in Titan’s operations in the aforementioned countries.
The Greece-based cement producer said in a statement: “The collaboration in the region with an institution such as the IFC is thus extended beyond Albania and is expected to add significant value to Titan’s investments in Southeastern Europe.”
IFC’s investment will support Titan’s subsidiaries in southern Europe: Cemertara Kosjeric in Serbia, Cementarnica USJE in Macedonia, and SharrCem in Kosovo. It will help the firms improve their environmental performance and energy efficiency while increasing their vertical integration. Combined, the companies have production capacity of about 3.5Mta of cement, the IFC said in a press release.
“Titan will use IFC’s financing to support its operations in southern Europe in response to growing demand for infrastructure and housing projects in the region,” director of Titan Group in Southeastern Europe and the Eastern Mediterranean Michael Sigalas said. “IFC is our strategic partner; this is their third investment in regional businesses of the Titan Group.”
Meanwhile, Guy Ellena, IFC director for manufacturing, agribusiness and services for Europe, the Middle East and North Africa, said: “Our investment in Titan will help to generate new local employment opportunities,”
“By upgrading its operations in Serbia, Macedonia and Kosovo, Titan will continue to strive for the highest environmental standards.”
