Ireland: Quinn Building Products and Lagan Cement Group have signed a memorandum of understanding that could lead to a joint venture (JV) 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.
"While 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," said a joint statement.
In a separate development, Quinn Manufacturing has also announced a Euro15m investment to upgrade its Ballyconnell cement plant, which, when completed, will facilitate the use of alternative fuels. The plant will be adapted to use solid recovered fuel (SRF), a move that will help to bring Quinn Cement's cost of production more into line with its Irish and European competitors.