International Cement Group (“ICG” or the “Company”, and together with its subsidiaries, the “Group”), a cement producer and distributor in the Central Asia region with headquarters in Singapore, reported a 117% increase in net profit attributable to shareholders to S$13.0 million for the half year ended 30 June 2021 (“1H2021”). This was achieved on the back of a 35% rise in Group revenue to S$84.9 million, boosted by a 36% surge in contribution from its cement segment largely due to the commencement of sales from its new Alacem cement plant in Kazakhstan, which commenced sales in 3Q2020 and generated S$25.8 million in sales in 1H2021. This was partially offset by a slight dip in revenue from the Group’s Tajikistan operations, as a result of a slowdown in local construction activities due to the COVID-19 pandemic.
In 1H2021, Sharcem LLP, a newly incorporated 60% owned subsidiary of the Group, entered into a sale and purchase agreement with Kazakhcement LLP and Development Bank of Kazakhstan to acquire cement-related assets located in Jarminsky district in the East Kazakhstan region, for a cash consideration of approximately 7.1 billion Kazakhstan tenge (approximately S$22.1 million). The plant, which has an annual production capacity of 1 million metric tonnes, is situated in a strategically important region with direct export routes to Russia and will complement the Group’s existing operations in south-eastern Kazakhstan. This proposed acquisition is expected to be completed by 31 August 2021. Upon completion, the Group’s combined annual cement production capacity in Central Asia will increase from 3 million metric tonnes to 4 million metric tonnes.
In addition to growing its cement operations, the Group also intends to expand its product offerings within the Central Asia region by constructing a drywall (gypsum plasterboard) production line within its main Tajikistan cement plant, with an anticipated annual production capacity of 30 million square metres of drywall. Construction of the production line is expected to commence in 2H2021. Construction was originally slated to begin in FY2020 but was delayed due to disruptions brought on by the COVID-19 pandemic. The Group believes that by tapping into its existing distribution network in Tajikistan, this new business will further enhance its product offerings in the construction sector.
