Turkish cement giant Cimsa eyes global leadership with new acquisitions
A view of Cimsa’s cement plant in Kayseri, Türkiye. (Photo via cimsa.com.tr)
Türkiye’s Sabanci Holding subsidiary, construction materials manufacturer Cimsa, has increased its U.S. dollar-based market value sevenfold over the past five years, reaching $1.4 billion.
The company aims to strengthen its presence in the world’s most advanced construction materials markets, including the U.S. and Europe, CEO Umut Zenar said.
In September 2024, Cimsa acquired Ireland-based cement manufacturer Mannok for €330 million ($359.83 million), marking Sabanci Holding’s largest foreign investment to date. This expanded Cimsa’s portfolio to include cement-based products such as aerated concrete and precast materials, along with insulation and recycled plastic packaging.
Speaking at Mannok’s production facility on Thursday, Zenar emphasized the significance of international investments in the company’s transformation. Following its 2021 acquisition of Spain’s Bunol facility, Cimsa became one of the world’s top white cement producers.
“To extend our European expansion into North America, we are building a gray cement grinding facility in the U.S., in addition to our existing white cement plant. This facility will be operational this year,” Zenar said. “The acquisition of Mannok marks a critical step in diversifying both our product range and geographic presence.”
Strengthening market position
Zenar noted that the combined value of Cimsa’s three recent investments totals approximately $600 million.
“The key takeaway here is that Cimsa is no longer just a cement exporter; it has evolved into a global construction materials company with production networks across different regions. We lead the white cement market in Spain and rank second globally. In calcium aluminate cement (CAC), we are the world’s third-largest producer,” he said.
He also highlighted the company’s commitment to innovation, citing the 2023 launch of the Sabanci Technology Center at the Technical University of Munich.
“This facility allows us to develop specialized products and strengthen customer relations. We also use it, along with Mannok, to introduce high-value products like CAC from our Mersin plant to new markets.”
Mannok’s addition to Cimsa’s portfolio is expected to expand its customer base and market reach in Ireland and the U.K. “Mannok is one of the leading companies in the construction materials sector in these markets, offering a wide range of products, including insulation materials and recycled plastic packaging,” Zenar said.
He projected that the acquisition would push Cimsa’s foreign currency-based sales above 70%, significantly increasing international revenue. “The full impact of this acquisition on our product and geographic diversification will become clearer in 2025. With a presence spanning three continents, we are poised for even stronger growth in the coming years.”
Zenar pointed to Syria as a growing market for Cimsa’s white cement exports. “There is significant construction activity ahead, both in infrastructure and superstructure. We have already seen strong demand in January and February, and we believe this trend will continue. We also anticipate a positive impact from Syria in 2025,” he said, adding that the company has faced no payment issues in the region.
Turning to geopolitical factors, Zenar noted that demand is returning from markets such as Ukraine, Belarus, and Russia, which were once key export destinations for Cimsa.
Ambitions for larger acquisitions in the US, Europe
Burak Orhun, Sabanci Holding’s Materials Technologies Group President, expressed pride in the Mannok acquisition, calling it a milestone in Sabanci’s history.
“This is not just a landmark deal for Sabanci but also the largest overseas acquisition by a Turkish company in 2024, according to KPMG’s M&A Trends Report,” Orhun said.
He emphasized the growing role of material science in global competition. “Concrete is the second most consumed material in the world after water. While it cannot be replaced overnight, our vision is to lead the way by integrating technology, innovation, and sustainability.”
To achieve this vision, Orhun stressed the importance of global expansion. “By 2029, we aim to increase the Materials Technologies Group’s share in Sabanci’s net asset value from 14% to 20%. We will continue to pursue strategic acquisitions that align with our portfolio transformation, particularly in North America and Europe,” he said.
