HeidelbergCement announced that its subsidiary Lehigh Hanson has entered into an agreement with Giant Cement, a subsidiary of Elementia, to acquire its Keystone cement plant in Bath, Pa., for $151 million. The Keystone plant has a capacity of 1.1 million tonnes per year and supplies the Pennsylvania, New Jersey and New York markets.
“With its modernized 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 United States 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 antitrust regulatory approval and is expected to close in the coming months.