Vcna, Levy In Joint Venture
- Published: Friday, 15 October 2010 10:34
Toronto-based Votorantim Cement North America continues to integrate downstream of its Great Lakes mill and terminal assets, building on what had been limited Michigan concrete-market play. Subsidiary VCNA Prairie and Levy Co. have entered a 50-50 joint venture to own and manage Superior Material Holdings in Detroit.
The move coincides with U.S. Concreteís exit from a partnership with Levy backing the entity since 2007, when the business spanned 28 ready mixed plants.
ìThis transaction will consolidate Prairieís and Levyís presence and create a stronger company for all stakeholders, leveraging the vast experience of its employees, [and] solidify Superiorís position in Michigan as a leading provider of ready mix concrete,î the new partners said in a joint statement.??
In addition to Prairie, VCNA provides powder to concrete producers throughout the Great Lakes from two Canadian and two U.S. mills or clinker-grinding operations under the St. Marys Cement flagship. Levy is a major aggregate producer in eastern Michigan and held a supply contract with the initial Superior Materials partnership. Prior to Superior Materials, VCNA Prairie had three ready-mixed and concrete block locations north or northwest of Detroit.
The joint venture also builds a portfolio of integrated Great Lakes operations nearly a decade in the making. Brazilís Votorantim Cementos chartered VCNA in 2001, acquiring Blue Circle Canada assets from Lafarge Group, and restoring their St. Marys Cement and Canada Building Materials brands. VCNAís early-2008 acquisition of Prairie Material Salesí concrete and aggregates properties more than matched in Chicago and northern Illinois what CBM properties afforded their suitor in Ontario. The Superior Materials stake adds Detroit to key markets--Chicago, Milwaukee and Indianapolis--for VCNA Prairie.?