Lafarge SA, which plans to merge with Holcim Ltd., sold its Ecuador cement operations to Peru’s Union Andina de Cementos SAA for an enterprise value of $553 million to reduce debt.

Lafarge Cementos SA operates an integrated cement plant of 1.4 million tons capacity, located in Otavalo, in the northern part of the country, the Paris-based company said in a statement. The sale is subject to “customary closing conditions.”

This divestment will contribute to Lafarge's objective to reduce net debt below 9 billion euros in 2014.