HeidelbergCement has announced that its North American subsidiary, Lehigh Hanson Inc., has entered into an agreement with Giant Cement, a subsidiary of Elementia SAB de CV, to acquire its Keystone cement plant in Bath, Pennsylvania. The Keystone plant has been operating since 1928 and supplies the Pennsylvania, New Jersey, and New York markets with bulk and bagged portland cements. The plant operates with a kiln line that was modernised in 2009 and has a capacity of 1.1 million tpy of cement. The agreed purchase price for the plant is US$151 million cash free and debt free, which is the equivalent of about US$137 per tonne of cement capacity.
“With its modernised kiln, healthy customer base, and large limestone reserves, the Keystone cement plant is an excellent strategic fit for HeidelbergCement in North America, and an important step in strengthening our cement footprint in this key market,” said Dr Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “The acquisition of one of the most modern and environmentally sustainable cement facilities in the US will further help Lehigh Hanson reduce its carbon footprint by safely substituting alternative fuels for traditional fossil fuels, such as coal. In addition, we anticipate a number of operational efficiencies as a result of this transaction.”
The transaction is subject to antirust regulatory approval to close in the coming months.
Read the article online at: https://www.worldcement.com/the-americas/02102019/heidelbergcement-strengthens-cement-footprint-in-north-america/
You might also like
The company's operating result has risen to a record level – group revenue is at €21.2 billion (+4%), with the result from current operations (RCO) at €3.0 billion (+29%).