Wednesday, December 19 15:08:49
Quinn Building Products and Lagan Cement Group have today signed a memorandum of understanding that could lead to a joint venture between the two groups.
The businesses, which will become part of the proposed JV, are the combined cement and building products businesses based in Ballyconnell, Derrylin, Kinnegad, Belfast, Cork and Benelux.
Quinn Therm, Quinn Litepac, Quinn Tarmac and Lagan Sand are not included in this proposal.
Commenting on the proposed JV, the CEO of Quinn Manufacturing Group, Paul O'Brien and the CEO of Lagan Cement Group, Jude Lagan, said: "By combining two stable Irish businesses the proposed JV will create a sustainable independent cement manufacturer that can continue to support its customers on a competitive basis."
The joint venture discussions are likely to take up to three months to complete and will involve the development of a business plan to combine the Quinn/Lagan cement and building products operations.
"Whilst it is the intention of both parties to conclude a JV Agreement, no certainty can be assumed prior to the completion of these discussions and the relevant Competition Authority approvals," the statement said.
In a separate development, Quinn Manufacturing has today announced a E15 million investment to upgrade its Ballyconnell cement plant, which, when completed, will facilitate the use of alternative fuels thereby replacing coal as the primary fuel. The use of solid recovered fuel (SRF) as an alternative fuel is long established in the cement industry worldwide. SRF is a fuel produced from segregated waste and its use will bring Quinn Cement cost of production more into line with its Irish and European competitors.