8-K

CRH PUBLIC LTD CO 8-K Report (Aug 1, 2006)

Filed August 1, 2006For Securities:CRH

Summary

CRH plc, through its US subsidiary Oldcastle Materials, Inc., has announced a significant strategic investment by acquiring a 50% equity stake in American Cement Company, LLC (ACC) for US$50 million. This joint venture is focused on developing and operating a new cement plant in central Florida. The plant, strategically located in Sumterville with substantial limestone reserves, is expected to commence production in late 2008 with an annual capacity of 1.1 million tonnes. This move represents Oldcastle Materials' entry into the US cement sector and capitalizes on Florida's robust construction market and positive long-term demographic trends, addressing a local demand for cement, a significant portion of which is currently imported. The investment underscores CRH's strategy to expand its building materials operations in key growth markets. The financial commitment of US$50 million, alongside senior debt financing for the facility to be provided by Oldcastle Materials, demonstrates a substantial commitment to this new venture. The planned facility has received necessary planning and permitting approvals, and its location offers proximity to major Florida metropolitan areas like Orlando and Tampa. This development is expected to enhance CRH's presence in the American market and provide a strong platform for future growth in the cement industry.

Key Highlights

  • 1CRH's US subsidiary, Oldcastle Materials, Inc., acquired a 50% equity stake in American Cement Company, LLC (ACC) for US$50 million.
  • 2The joint venture will develop and operate a new cement plant in central Florida, located in Sumterville.
  • 3The new plant is expected to commence production in late 2008 with an annual capacity of 1.1 million tonnes.
  • 4The facility will be situated on an ACC-owned deposit with over 150 million tons of high-quality limestone reserves.
  • 5Oldcastle Materials will also provide senior debt financing for the installation of the new cement plant.
  • 6This investment marks Oldcastle Materials' entry into the US cement sector.
  • 7The strategic location targets Florida's strong construction market and positive long-term demographic growth trends, addressing a need for local cement production.

Frequently Asked Questions

This investment marks CRH's entry into the US cement sector through its subsidiary Oldcastle Materials. It allows CRH to capitalize on the strong construction market and positive demographic growth trends in Florida, a region with significant demand for cement, a portion of which is currently imported. The new plant will establish a local production base to serve this demand.

CRH, through Oldcastle Materials, Inc., has made a cash contribution of US$50 million for its 50% equity stake in American Cement Company, LLC. Additionally, Oldcastle Materials will provide senior debt financing for the construction and installation of the new cement plant.

The new cement plant is expected to commence production in late 2008. It will have an annual production capacity of 1.1 million tonnes.

The plant will be located in Sumterville, central Florida, close to major metropolitan areas like Orlando and Tampa. It is situated on an ACC-owned deposit containing over 150 million tons of high-quality limestone reserves, ensuring a reliable and cost-effective raw material supply. The location also strategically positions the plant to serve Florida's robust construction market.