Geneva  - Swiss firm Holcim, the second largest cement and aggregate maker in the world, will ask shareholders on Wednesday to approve a shares issuance in order to raise capital.

If shareholders approve the move, the subscription price of the new shares would be 42 Swiss francs (38.51 dollars) - a 28 per cent discount off Tuesday's closing price. Holcim expects to produce gross proceeds of 2.1 billion francs from the capital-hike.

"The year 2009 will turn out to be difficult. Up to May there was no reversal of the underlying economic trend visible," Holcim said in a statement.

"Some markets like the US, Spain and Eastern Europe are still difficult. On the other hand, in Asia - e. g. in India - and in Latin America Holcim sees a quite satisfactory trading activity," the statement read.

Holcim, hit by the construction downturn connected to the collapse of key housing markets, has been looking to expand into emerging markets and strengthen its positions there.

It recently announced plans to buy Cemex Australia, with reach into the developing world and natural resources, and was looking to participate in a planned non-public offering of Huaxin Cement in China.(dpa)