History

International Cement Group Ltd.

International Cement Group Ltd. (the “Company”) is listed on the Mainboard of the Singapore Exchange. The Company’s core business includes the production, sale and distribution of cement. In recent years, the Company has focused on increasing our cement production capacity through investments in construction of cement plants in identified strategic locations and through acquisitions of suitable target companies or assets.

Enhancing Regional Connectivity

through intensive investment in infrastructure

In line with the Belt and Road Initiative aimed at enhancing regional connectivity through intensive investment in infrastructure, the Company saw the opportunity to develop an international cement business in emerging markets in Central Asia and South-East Asia.

Currently, the Company operates a cement plant in Tajikistan with an annual production capacity of 1.2 million tonnes. It is one of the largest modern cement plants operating in Tajikistan and is well positioned to capture the growth opportunities in the fast-growing construction industry in Tajikistan. The Company also owns and operates a grinding station in Kolkhozabad, Tajikistan, with an annual production capacity of 0.6 million metric tonnes.

Identified Kazakhstan

as an important strategic location for the development of cement business

Taking into account Kazakhstan’s positive governmental support for the domestic construction materials sector and the anticipated increase in infrastructure investments flowing from the push for development, the Company identified Kazakhstan as an important strategic location for the development of our Cement business.

In December 2019, the Company completed construction of our first cement plant in the Almaty Region in Kazakhstan, the Alacem plant, with an annual production capacity of 1.2 million metric tonnes. Owned and operated through a joint venture with our local partner, Mr Nurzhan Shakirov, the Alacem plant is the Group’s largest investment in Central Asia to date, with a construction cost of approximately US$130.0 million (S$182.0 million), including ancillary facilities.

In April 2021, the Company’s subsidiary, Sharcem LLP, entered into a sale and purchase agreement to acquire a cement plant in Kazakhstan for a purchase consideration of approximately 7.1 billion Kazakhstan tenge (S$22.1 million). Located in East Kazakhstan, a strategically important region with direct export routes to Russia, the acquisition of this plant will complement the Group’s existing operations in South-eastern Kazakhstan.

The Company is confident that the sustained economic growth in Kazakhstan will fuel an increase in the demand for cement.