Kazakhstan cement producers are negotiating to sell off their remaining stake in cement producer Mezcladoras de cementos (mezclads) to buy up to 20% of the company, sources close to the negotiations told The Huffington Mail.
The deal would mark a dramatic shift in the cement business in Kazakhstan, where cement production has been a low-margin business for decades, largely due to a lack of access to cheap raw materials, according to one source.
The state-owned cement company has a massive cement business and is among the largest producers of cement in Kazakhstan.
A spokesman for the cement producer did not immediately respond to requests for comment.
Mezclades de cement is a state-run cement producer with about 20 million cubic meters of cement producing capacity, according the company’s website.
It is also one of the largest cement producers in Russia, Russia’s second largest economy, according Toenail.ru, a website run by the Russian state-funded Center for Economic Development Studies.
The cement producer also produces asphalt, the main ingredient in cementing, and is a major player in the construction industry.
But in recent years, MezClades de cimento has suffered from the rapid development of the world market for cement, particularly as the world’s demand for cement continues to grow, the company said in a 2016 filing.
Since 2016, MezzClades De cementos cement production in Kazakhstan has fallen by more than 80%.
Mezzclades De has also been struggling to find investors to invest in the company.
In the last two years, the cement company’s net income from the cement industry fell by more that $4 million, the report said.
The government, however, has tried to support the cement producers, including a $30 million loan from Kazakhstan’s central bank in 2016, the group said.
Last year, the Kazakhstan cement industry received a $10.4 million loan to expand its cement production capacity and hire more workers, the state-backed news agency KazMaz reports.
Mezzcores de cement are also hoping to increase their profit margins by offering their cement in new markets and by diversifying their production to new markets, the news agency said.
A deal to buy the cement maker would be the first step in Mezz Clades decimento’s planned $5.2 billion takeover of cement producer Alcoa.
Alcoas cement is the world standard for cementing cement and is used in buildings and in concrete, among other industries.
The company’s market share of cement production is growing, with cement production at around 8% of cement exports in 2016.
But the company has been struggling in recent times to raise money to invest and expand its operations.
“The cement business has been suffering because of the market for a long time,” Alcoastas president and CEO Alexei Yerofeyev told The Moscow Times.
“In order to find the right partners to invest, we have to diversify the company,” he added.
MezoCladesDe, which is owned by the state owned cement company, said it was still in talks with MezzCes de cement about the sale, the Kavkaz daily reported.