CalPortland Co to buy Martin Marietta's California cement business

Taiheiyo Cement Corp announced Tuesday that its California subsidiary CalPortland Co (CPC) will buy Martin Marietta Materials Inc's cement business in California for US$420m.

Major assets included in the deal are the Oro Grande cement plant (situated near the major market of Los Angeles) and the Stockton and San Diego cement terminals.

"This asset purchase from Martin Marietta will allow CPC to replace the cement production capacity lost by the discontinuation of cement production at its Colton plant. In addition, it enables CPC to establish a supply chain to match the increase in cement demand in the California, Arizona and Nevada region," Taiheiyo said in statement.

Taiheiyo Cement aims to complete the acquisition procedures by the end of September.