Lafarge to sell businesses in southeast US
By Chris Sleight13 May 2011
Lafarge has agreed to sell parts of its cement and concrete business in the US to Colombian cement maker Cementos Argos for US$ 750 million. Argos is said to be the fifth largest cement and ready-mixed concrete producer in Latin America.
The assets being sold include cement plants in Harleyville, South Carolina and Roberta, Alabama along with a cement grinding plant in Atlanta, Georgia and associated cement terminals. Lafarge is also selling its ready-mixed concrete businesses in these areas of the US. Last year these businesses had revenues of US$ 240 million.
Following the divestments, Lafarge will still have 21 cement and grinding plants in the US with a total capacity of some 19 million tonnes. Lafarge chairman & CEO Bruno Lafont said," North America is an essential pillar for the group, where we have the ambition to be the undisputed leader in the building materials industry. This transaction creates value for our shareholders while maintaining a strong network of operations for future growth in North America."
The buyer, Argos, is said by Lafarge to be the fifth largest cement producer in Latin America, with a presence in Colombia and the Caribbean, as well as the US. Its assets include nine cement plants and five grinding plants with a total combined capacity of 12.8 million tonnes of cement per year. It also has 220 ready mixed concrete plants in the US, with a total capacity of 10.5 million m3.