CUMI agrees to acquire 51% stake in FZL, SA

With a 4200 tonnes per annum installed capacity for Zirconia (mineral), FZL is the  third largest producer of Zirconia in the world.

Fumed silica is also produced as a by-product of the furnace operation. This investment will be a good platform for CUMI to address the growing minerals business.

The sales of FZL in 2007-08 were $ 16 million. This will be reflected in CUMI balance sheet starting from the current year.

CUMI on a standalone basis has a total revenue of Rs 600 crore.

Foskor was seeking a strategic partner to take FZL to its next phase of expansion and growth. CUMI is one amongst the two companies globally with interests in Abrasives, Ceramics, Refractories and Minerals and was hence a logical choice, a release from the company said.

CUMI is a fully vertically integrated company with operations in Australia, Canada, China, Russia, Middle East, US and in India. CUMI brings to FZL its mineral processing knowledge, its brands, market access, application engineering expertise and global management practices.

This will help FZL to grow its range of products and business, the release added.

While CUMI through its investment subsidiary will hold a 51 per cent stake in FZL, the balance 49 per cent will be held by Foskor (Proprietary) Limited and two other South Africa based entities.