Heidelberg Materials acquires Malaysia's largest pulverised fly ash supplier

Heidelberg Materials has entered into a definitive purchase agreement to acquire ACE Group,the largest supplier of pulverised fly ash in Malaysia, effective 1 May 2024. The acquisition strengthens circularity within Heidelberg Materials’ value chain in Southeast Asia, according to the company. Reusing fly ash from energy generation contributes significantly to reducing the CO2 intensity of composite cement while used as an additive, fly ash can replace part of the energy-intensive clinker and thus reduce the CO2 intensity of the cement.

ACE Group comprises three entities operating across the value chain: ACE Greencemt Venture, a leading supplier of pulverised fly ash to the Malaysian construction industry; ASAS Asia, a processor of coal ashes; and AGP Logistics, a logistics service company operating 20 silo trucks.

The leadership team of ACE Group will stay on board as part of the acquisition to continue managing the companies. Both parties have agreed to not disclose the financial terms of the transaction.

“The acquisition reflects our strong commitment to further strengthening our footprint in a growing market in Southeast Asia,” says Roberto Callieri, Member of the Managing Board of Heidelberg Materials and CEO of Heidelberg Materials Asia. “Leveraging the vertical integration of ACE Group helps to drive our ambitious carbon reduction targets at all our sites throughout Malaysia.”

“We are experiencing a growing demand for sustainable building materials,” says Dr Nicola Kimm, Chief Sustainability Officer and Member of the Managing Board of Heidelberg Materials. “With the acquisition of ACE Group, we continue to optimise our portfolio and lower our carbon footprint in yet another key market, on our path to eventually delivering net-zero cement and concrete across the globe.”