Lafarge and Elementia announce Mexican JV

Lafarge and Mexican conglomerate Elementia have announced plans to combine their cement assets in Mexico. The new entity will have a capacity of some 2 million tonnes of cement per year. It will be 47% owned by Lafarge and 53% by Elementia.

The transaction does not involve any cash, but is subject to regulatory approvals. Lafarge said it expected the deal to close in the second half of this year.

Lafarge’s contribution to the joint venture comprise its two cement plants in Vito and Tula, which have a capacity of nearly 1 million tonnes of cement per year. Elementia is currently building a new 1 million tonne per year plant in central Mexico, which it will roll into the joint venture.

“This combination will significantly strengthen Lafarge’s position in Mexico,” said Lafarge in a statement.