Heidelberg Materials to expand Africa operations

Heidelberg Materials are to expand their operations in Africa with the signing of a strategic agreement to acquire Votorantim Cimentos’ assets in Morocco. This move will expand the existing minority stake of Heidelberg Materials in Asment de Témara.

The transaction, which is subject to regulatory approval by Moroccan competition authorities, will see Heidelberg acquire 63% of the shares in Asment de Témara, a cement and ready-mixed concrete producer, and 100% of the shares in Grabemaro, a supplier of aggregates, by Ciments du Maroc, its subsidiary in Morocco.

The investment will, say the company, further strengthen their position in one of its core growth markets in Africa. By taking control of Asment de Témara and Grabemaro, Ciments du Maroc will expand their operations in the attractive northern region of Morocco to include a cement plant with an annual capacity of 1.4 million tonnes, two aggregates sites, and eight ready-mixed concrete plants.

Through the transaction, the company will also benefit from access to an alternative fuels platform. It provides an innovative approach to the pre-treatment and recovery of industrial waste, which helps to reduce the environmental impact and optimize production-related energy costs. This will allow the company to significantly enhance the alternative fuel rate at the newly added cement plant to 70% by 2027.

Dr Dominik von Achten, chairman of the managing board of Heidelberg Materials said: "Our latest investment marks an important step as part of our ongoing portfolio optimization to strengthen our core markets.

"Expanding our presence in the attractive Moroccan market while increasing our use of alternative fuels will generate substantial financial synergies and thus help us accelerate our ambitious decarbonization efforts throughout our sites in the country and grow our local offering of sustainable solutions."

Hakan Gurdal, member of the managing board of Heidelberg Materials and responsible for the group area Africa-Mediterranean-Western Asia, added: "We are well positioned to participate in further market growth as we are strengthening our footprint in one of the most populous regions in Morocco. Our growing base of customers will benefit from our national cement coverage and a strong network of ready-mixed concrete and aggregates sites delivering high-quality products."

Both parties have agreed not to disclose the financial terms of the transaction.