Mexico-based cement manufacturer Cemex has announced that it has signed a deal to sell its operations in Bangladesh and Thailand to Bangkok-based Siam City Cement Public Company for about $53 million.

The proceeds obtained from the transaction will be used mainly for debt reduction and general corporate purposes, Cemex said in a statement on its website.

The company expects to finalise the divestiture during the second quarter of 2016.

Closing of the agreement is subject to the satisfaction of standard conditions for this type of transactions, according to the statement.

Cemex is a building materials company that provides high-quality products and reliable services to customers and communities in more than 50 countries.

The company started its journey in Bangladesh in 1999, and began sales and distribution activities in May 2000 by importing finished goods from Indonesia.

In April 2001, it started manufacturing cement at its own plant in Narayanganj.  Currently Cemex Cement Bangladesh is producing Cemex brand Portland composite cement, which was used in some big infrastructure projects such as Khilgaon flyover, Apollo Hospitals Dhaka and Hotel Naz Garden in Bogra.

With 32 cement manufacturing companies at present, Bangladesh has an installed production capacity of 3.2 crore tonnes a year; the local demand is around two crore tonnes, according to Bangladesh Cement Manufacturers Association.

Bangladesh's per capita cement consumption is only around 105 kilograms.