The parent companies of St. Marys Cement and McInnis Cement plan to combine their production and distribution assets serving Canada and United States markets from the Atlantic seaboard to the Great Lakes. The joint venture is expected to significantly strengthen the strategic positioning of the combined operations through increased cement production capacity, presently 7.4 million tonnes; operational efficiencies; and an enhanced distribution network.
With respective stakes split 83% and 17%, the joint venture will be owned by Votorantim Cimentos International (VCI), the global investments platform of São Paulo-based Votorantim Cimentos S.A., and institutional investor Caisse de dépôt et placement du Québec (CDPQ), a McInnis Holding Limited Partnership shareholder.
The Votorantim Cimentos assets are primarily cement plants located in Bowmanville and St Marys (Ontario, Canada) and in Detroit and Charlevoix, Mich., and Dixon, Ill. (United States), along with an extensive distribution network concentrated in the Great Lakes region. McInnis Cement will contribute its Port-Daniel–Gascons plant in eastern Quebec, plus terminals located in Quebec, Ontario, New Brunswick and Nova Scotia (Canada) and the Northeastern region of the United States, as well as three marine vessels.
“This partnership will enable the Port-Daniel–Gascons plant to benefit from Votorantim Cimentos’ production, distribution and operational expertise to develop important markets, particularly in Eastern Canada, the Great Lakes region and the Northeastern coast of the United States to meet the growing demand for cement,” said Kim Thomassin, CDPQ’s executive vice-president and head of investments in Quebec and Stewardship Investing.
As part of the agreement, the parties have committed to maintaining jobs and facilities at the Port-Daniel–Gascons plant until at least 2029. Additionally, the combined entity will deploy initiatives at the plant to support carbon footprint reduction in the cement industry and will work closely with leading experts and local stakeholders to ensure that these activities benefit the region. Votorantim Cimentos hopes to achieve carbon neutrality in concrete by 2050.
“This transaction is aligned with Votorantim Cimentos’ portfolio management strategy, prioritizing investments in markets in which we already operate and enabling geographic expansion in locations with attractive growth prospects. McInnis Cement’s state-of-the-art plant and distribution network enable an efficient cost position in an attractive region, with access to new markets and lots of opportunities,” said Votorantim Cimentos Global CEO Marcelo Castelli.
The transaction remains subject to customary closing conditions, including approval by regulatory authorities in Brazil, Canada and the United States. The two companies will continue to operate as separate businesses pending the closing of the transaction.