One of Cookstown’s best known businesses will become part of the world’s biggest cement producer in July, Lafarge has announced.
After almost a year of negotiations the merger between Swiss firm,Holcim, and Lafarge, who own the Cookstown plant, will go ahead in July and create a business with annual sales of over £20 billion.
There was uncertainty over the Cookstown plant’s future with fears that it could be one of the assets that the new company would sell to ease competition regulatory concerns created by the merger.
However, a spokesperson for Lafarge Tarmac said: “The plant is being retained by Lafarge Holcim as a going concern.
“Until the global Lafarge Holcim merger is completed, which is expected to be in July, Cookstown plant will remain part of Lafarge Tarmac and will be managed on a business-as-usual basis with no change for employees, customers or suppliers.”
The merged LafargeHolcimcompany’s manufacturing capacity of 427 million tons a year would vastly exceed the 227 million ton capacity Anhui Conch, the current industry leader in that category
“I am very pleased that we are now able to proceed with our project to create a truly outstanding global leader in building materials,” said Holcim Chairman Wolfgang Reitzle.
The companies agreed on an exchange ratio of nine Holcim shares for 10 Lafarge shares, and that a new CEO, to be proposed by Lafarge and accepted by Holcim, will be appointed after the deal closes.
The Cookstown plant opened in 1970 as Blue Circle Cement factory and currently employs 86 people in various roles.
This company was succeeded as Lafarge in 2001.
Until the global Lafarge Holcim merger is completed, which is expected to be in July, Cookstown plant will remain part of Lafarge Tarmac