TCC approves plan to acquire Ukrainian cement producer, other entities

Taipei, Sept. 23 (CNA) TCC Group Holdings' board of directors has approved a plan for the company's Dutch subsidiary to acquire a 100 percent stake in Ukrainian cement company Ivano-Frankivskcement (IFCEM) and three other companies for up to €750 million (US$857 million).

The transaction also covers roofing materials company Ivano-Frankivsk-Dakh, gypsum products maker KRU Gips and dry-mix mortar producer KRU Mix, TCC Group Holdings Vice President Shelly Yeh (葉毓君) said at a press conference Wednesday.

The final acquisition price will be adjusted when the deal is finalized based on factors such as net debt and net working capital, Yeh said.

The plan, approved at a special board meeting Tuesday, is still subject to regulatory approvals in Taiwan, Ukraine and other relevant jurisdictions before the transaction can be completed, Yeh cautioned.

In pursuing the acquisition, the company is hoping to extend its European cement operations from Southern and Western Europe into Eastern Europe and position itself to participate in Ukraine's long-term reconstruction once the war ends.

IFCEM represents a strong vehicle through which to expand its European presence, with a roughly 36 percent market share in Ukraine and a sales network that extends mainly to Poland and Romania but also to Moldova, Slovakia and Hungary, TCC said.

Another major consideration was the growing importance of low-carbon practices in the cement industry, especially given the European Union's Carbon Border Adjustment Mechanism (CBAM), the company said.

TCC expects to introduce its low-carbon cement technologies to the acquired businesses and advance its sustainability vision in leading post-war reconstruction, it said.

IFCEM's production base is located in Ivano-Frankivsk in western Ukraine, approximately 760 kilometers from the main combat zones in the southeastern part of the country.

The company's plant has maintained production without interruption since the Russia-Ukraine war broke out in 2022, TCC said.

According to IFCEM's 2025 annual financial report, revenue rose 20.3 percent year-on-year to UAH 16.25 billion (US$362.41 million), while gross profit climbed 40.3 percent to UAH 6.44 billion.

Gross margin surged to 39.6 percent, up from 34 percent in 2024, while net income after tax increased 44.5 percent, resulting in a net margin of about 26.4 percent.

TCC said it has appointed Morgan Stanley as financial adviser for the transaction, while international legal, accounting, tax and environmental consultants have conducted due diligence covering sanctions, labor, operations and foreign exchange controls.

The company said it also retains the flexibility to bring in international financial institutions as co-investors, with interest already expressed by supranational investment funds.

TCC said Chairman Nelson Chang (張安平) led the company's European and Asian cement teams on a visit to IFCEM's plant in Ukraine in the first half of this year.

The plant has installed 50 MW of solar power capacity and 19 MW of gas-fired power capacity to reduce its reliance on the external grid, the company said.

Ukraine's reconstruction needs over the next decade will reach US$588 billion, with the most urgent needs for severely damaged housing, transportation, and energy infrastructure, according to an assessment by the World Bank and United Nations earlier this year.