About Project

KCML, is the leading cement player in Central Iraq with a 9% country market share, a 2.4 mT cement and 2.1 mT clinker installed capacity, and enjoying an advantageous position to supply the highly strategic Baghdad region. (“the Transaction”)

LOCATION      : Karbala, Republic of Iraq

SERVICE           : Transaction Management

VALUE               : USD 100 million

CLIENT             : Delta Cement for Cement Production Ltd Co.

TYPE                  : Industrial

OVERVIEW

Long-term secured access to 1 (one) Limestone, and 2 (two) clay quarries, initially leased in 2010, for rehabilitation and operation under a Lease Agreement, which was extended later till 2039.

All products are manufactured in line with European and Iraqi standards and distributed in 50 kg bags, pallets, and in bulk. Currently, Sulphate Resistant Cement (SRC) is the most popular grade of cement in the Middle and South of the country due to the high salt content of the soil, which requires sulfate resistant products.

Since 2019, the plant has ramped up production of premium products such as Ordinary Portland Cement (OPC) to cater to customer requirements. KCML directly manages delivery of bulk products for all financially complied customers (major projects and ready mix), representing ~35% of bulk sales. Distributors network covers ~65% of bulk sales to ensure delivery while KCML is keeping a strong commercial relationship with the client.

KCML was fully refurbished between 2013 and 2016, with investments of c.$216m financed through a group loan. Line 1 and Line 2 were fully rehabilitated, including the crusher, pre-processing, clinker storage roof, cement mill, packing plant & bag loading. KCML is currently prioritizing the Group loan capital repayment. Then, the rest of the payables will be paid as stated in the agreement between the partners.

In 2024, Kingston led the Transaction, throughout the preliminary deal, legal-financial-technical due diligence, financing plan, and documentation, to acquire a 100% stake in KCML.