Cemex has announced a joint venture agreement with sand and gravel supplier Couch Aggregates and marine bulk product distributor Premier Holdings. This agreement forms part of Cemex's ongoing strategy to accelerate growth in the US and expand its aggregates business.
According to Cemex, the joint venture will strengthen its aggregate reserves with the production, distribution and sale of sand, gravel and limestone in the Mid-South, increasing its presence and providing better and faster service to this growing region. “This joint venture will create significant opportunities for both parties by utilising vertical integration and leveraging each other's capabilities for growth,” said Jaime Muguiro, president, Cemex US. “We remain committed to increasing our capacity to serve the US market with more sustainable and innovative solutions.”
Couch Aggregates, a long-time strategic partner of Cemex US, is a major player in the aggregate materials industry in the southeastern US, serving various markets with construction materials like sand, gravel and crushed stone. Premier Holdings strategically operate Gulf Coast marine terminals, facilitating the distribution of value-added heavy building materials to wider markets.
Starting in 2020, Cemex has focussed on rebalancing its portfolio towards the US, increasing its percentage of EBITDA contribution from 24 to 29 per cent. The company intends to expand this to 40 per cent in the medium term by increasing the growth capex and investing divestment proceeds to the region.
