CalPortland to buy Martin Marietta’s California cement business

CalPortland Co., headquartered in Glendora, Calif., has reached agreement with Martin Marietta Materials Inc. for the purchase of Martin Marietta’s California cement business. The $420 million purchase includes the Oro Grande cement plant, and cement terminals in Stockton and San Diego. It does not include the clinker grinding plant in Crestmore.

CalPortland’s parent company, Tokyo-based Taiheiyo Cement Corp., made the announcement and said the purchase is part of a three-year investment plan to enhance its presence in the Pacific Rim.

This asset purchase from Martin Marietta will allow CalPortland to replace the cement production capacity lost by the discontinuation of cement production at its Colton Plant. In addition, it enables the company to establish a supply chain to match the increase in cement demand in California, Arizona and Nevada.

With the addition of Martin Marietta’s cement plant in Oro Grande near Los Angeles to CalPortland’s Mojave plant in California and Rillito plant in Arizona, the company can further optimize its cement production and logistics, leading to an expected reduction in logistical outlays and optimization of production capability. As a result, the purchase will contribute to a steady improvement in sales volume and profit in Taiheiyo Cement Group’s U.S. operations, with a final goal of increased profitability.