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 Group completed the 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 maiden investment in Kazakhstan, with a construction cost of approximately US$130.0 million (S$175.7 million), including ancillary facilities.

In November 2021, the Group acquired cement-related assets located in the Jarminsky district, East Kazakhstan region, the Sharcem plant, for a purchase consideration of approximately 7.1 billion Kazakhstan tenge (S$22.3 million). The Sharcem plant is owned and operated through Sharcem LLP, a joint venture with Mr Shakirov, our local partner of the Alacem plant. The Group had also invested US$29.0 million (S$39.2 million) in the upgrading of this plant.  The Sharcem plant, which has an annual production capacity of 1.0 million metric tonnes, commenced commercial production in August 2022. In November 2022, the Group acquired an additional 15% stake in Sharcem LLP from Mr Shakirov for a cash consideration of US$18.7 million (S$26.1 million). Upon completion of this step-up acquisition, the Group holds an effective stake of 75% in Sharcem LLP.

Following the successful collaboration on the Alacem and Sharcem cement plants, in September 2021, the Group entered into another partnership with Mr Shakirov to build a new cement plant in the Korday district, Jambyl region in Kazakhstan, the Korcem plant, through Korcem LLP, an 87.5% owned subsidiary of the Group. With a construction cost of approximately US$153.0 million (S$206.8 million), the new cement plant will comprise, specifically, a dry process cement clinker production line with a daily production of 3,500 metric tonnes of clinkers. Construction started in the last quarter of 2021 and is expected to be completed by mid-2024. Upon completion, the Korcem plant will have an annual cement production capacity of 1.5 million metric tonnes.

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