LafargeHolcim Ltd, a Swiss multinational building material company, has reportedly announced that it has sold off its 80% stake in building material firm PT Holcim Indonesia to building materials manufacturing company Semen Indonesia.

Reports cite, the sale values PT Holcim at about $1.75 billion and is a part of the company’s five-year long restructuring plan. The divestment would reportedly be helping the Franco-Swiss group in boosting its sales by cutting costs and allowing it to concentrate on fewer markets.

According to a press release by LafargeHolcim Ltd., the decision to sell the company’s stake in Holcim Indonesia came under the ongoing review of the portfolio. The assets that are to be sold to the buyer – Semen Indonesia – include the entirety of the company’s operations in Indonesia, which comprises 33 ready-mix plants, 4 cement plants as well as the 2 aggregate quarries.

The announcement of the divestment reportedly comes approximately eight months after the Chief Executive of LafargeHolcim, Jens Jenisch outlined a five-year plan for restructuring the company following its announcement of a $4 billion write-off. Approximately two-thirds of the impairment charges were focused in Indonesia, Malaysia, the Middle East, and Brazil.

Reliable reports claim, Semen Indonesia – a company owned and controlled by the government of Indonesia – outbid a number of other interested buyers including the likes of Germany’s HeidelbergCement and Taiheiyo Cement of Japan.

The President-Director of Semen Indonesia, Hendi Prio Santoso stated that the amalgamation of Semen Indonesia with Holcim will make the company larger, stronger, and more capable of staying on top of the nation’s competitive cement industry.

According to reports, the latest acquisition would be considerably strengthening the government-controlled company’s domestic footprint and allow it to vastly expand its product portfolio. Moreover, the deal is also expected to allow the company to benefit from raw material costs and lower distribution.