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Heidelberg Materials has entered into a definitive purchase agreement to acquire ACE Group, the largest supplier of pulverised fly ash in Malaysia
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The acquisition aims to strengthen the company’s footprint in a growing market and meet the rising demand for fly ash to reduce the CO₂ intensity of cement
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The transaction is part of Heidelberg Materials’ ambitious decarbonisation strategy and will contribute to significantly lowering the company’s CO₂ footprint in Southeast Asia
Heidelberg Materials announced earlier in May 2024 that it has entered into a definitive purchase agreement to acquire ACE Group, the largest supplier of pulverised fly ash in Malaysia, effective 1 May 2024. As part of the company’s ongoing portfolio optimisation, the acquisition strengthens circularity within Heidelberg Materials’ value chain in Southeast Asia. Reusing fly ash from energy generation contributes significantly to reducing the CO₂ intensity of composite cement: 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.
“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.”
Both parties have agreed to not disclose the financial terms of the transaction.
In 2023, Heidelberg Materials already strengthened its footprint in the greater Asia-Pacific region by acquiring an integrated cement plant in Central Java, Indonesia via its subsidiary Indocement.
The Semen Grobogan cement plant has a capacity of 1.8 million tonnes of clinker and 2.5 million tonnes of cement with limestone reserves lasting for more than 50 years. As part of the company’s global climate strategy, Heidelberg Materials is developing a tailored CO₂ roadmap for the plant with concrete measures to accelerate the reduction of carbon emissions.
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