30 Jun 2020
Cepsa acquires 40% of Madjaline's stake in Sorexi and Bitulife, two market leaders in the manufacture and marketing of asphalt in Morocco
Cepsa has been operating in the Moroccan market for more than 30 years, and it aims to consolidate itself as one of the main players in the country's energy sector
Cepsa has reached an agreement with Moroccan group Madjaline Holding to join forces in strengthening the asphalt business in the country and take advantage of synergies in the medium- and long-term. Specifically, Cepsa has acquired 40% of Madjaline's stake in Sorexi and Bitulife, two of Morocco's leading producers and distributors of asphalt and asphalt coatings for the road and building construction sector. Morocco has an estimated annual consumption of 380,000 tonnes of bitumen and Spain is the main exporter of this product to the country.
In doing so, Cepsa aims to consolidate its position as one of the main energy players in Morocco, where it has been operating for 30 years, and continue to share its experience in developing and distributing high quality products adapted to the needs of its customers. This alliance strengthens Cepsa's international presence in North Africa, which is a priority region, and specifically in Morocco, which is a key country for the company because of its great growth potential and its proximity to Spain.
The companies that form Madjaline Holding have extensive knowledge of the Moroccan energy market. Sorexi, which has more than 90 years of experience, has three factories: one in Casablanca, one in Nador and one in Agadir, all with production and storage capacity. It has a fleet of over 30 trucks to deliver the bitumen directly to customers. Bitulife, meanwhile, has been producing and distributing waterproofing products for over 20 years. It has two production lines dedicated to first and second generation waterproofing in order to meet local market and export needs. Its annual production capacity is over thirty million square meters. Sorexi and Bitulife can store more than 45,000 tons of product in total. Together, the companies now aim to generate competitiveness in the growing Moroccan energy market.
Pierre-Yves Sachet, Director of Cepsa's Commercial and Strategic Growth area, said: 'The acquisition of this significant shareholding in Sorexi and Bitulife, which are both market leaders in Morocco, is one of the Commercial area's biggest milestones in 2020. After 30 years of operating in this country, which has exciting growth potential, today we are taking another step in the expansion of our commercial business and international presence. In addition, we look forward to continuing to develop opportunities with our partner Madjaline Holding.'
Aniss El Bied, founder and CEO of Majdaline Holding, believes: 'The fact that a company like Cepsa has chosen to join our group through this involvement shows, on the one hand, the interest there is in our country as an industrial investment center and, on the other, the appeal of our group, its extensive knowledge of this market and its ability to achieve international standards in the sector'.
Experts in the asphalt business
For more than six decades, Cepsa has developed, manufactured and marketed bitumens and asphalt products. The company currently produces more than one million tons a year in its La Rábida (Huelva) and Asesa (Tarragona) refineries, and its factories in Alcalá de Henares (Madrid), Gijón (Asturias), Alcudia (Mallorca), Valencia, Tarragona and Matosinhos (Portugal). Two thirds of this is marketed overseas.