St Marys Cement, a wholly owned subsidiary of Votorantim Cimentos, and McInnis Cement will merge their assets to create a combined entity to manufacture, distribute and sell cement in Canada and the United States. The joint venture is expected to significantly strengthen the strategic positioning of the combined operations through increased cement production capacity, operational efficiencies and an enhanced distribution network.
The combined entity will be owned by Votorantim Cimentos International (VCI), the international investments platform and wholly owned subsidiary of Votorantim Cimentos, and Caisse de dépôt et placement du Québec (CDPQ), a long-term institutional investor, through its investment in McInnis Holding Limited Partnership.
VCI will hold 83% and CDPQ will hold 17% of the shares in the joint venture. Both parties will transfer North American assets to the combined entity. The Votorantim Cimentos assets are primarily cement plants located in Bowmanville and St Marys (Ontario, Canada) and in Detroit and Charlevoix, Mich., and Dixon, Ill. (United States), along with an extensive distribution network concentrated in the Great Lakes region. The McInnis Cement assets include the Port-Daniel–Gascons plant with 10 terminals located in Quebec, Ontario, New Brunswick and Nova Scotia (Canada) and the Northeastern region of the United States, as well as three marine vessels.
“This partnership will enable the Port-Daniel–Gascons plant to benefit from Votorantim Cimentos’ production, distribution and operational expertise to develop important markets, particularly in Eastern Canada, the Great Lakes region and the Northeastern Coast of the United States to meet the growing demand for cement,” said Kim Thomassin, CDPQ’s executive vice-president and head of investments in Quebec and Stewardship Investing.
As part of the agreement, the parties have committed to maintaining jobs and facilities at the Port-Daniel–Gascons plant until at least 2029. Additionally, the combined entity will deploy initiatives at the plant to support carbon footprint reduction in the cement industry and will work closely with leading experts and local stakeholders to ensure that these activities benefit the region. Votorantim Cimentos hopes to achieve carbon neutrality in concrete by 2050.
The transaction remains subject to customary closing conditions, including approval by regulatory authorities in Brazil, Canada and the United States. The two companies will continue to operate as separate businesses pending the closing of the transaction.