Polaris Materials ends strategic alliance with Cemex

Polaris Materials Corp. has announced that the company and its subsidiary Eagle Rock Aggregates Inc. will not renew their strategic alliance agreement and related joint cooperation and development agreements with Cemex Inc.

The agreements will now terminate in accordance with their terms on September 25 of this year. Eagle Rock Aggregates and Cemex remain bound by the terms of an aggregate supply and distribution agreement that provides for certain exclusive marketing and distribution rights in parts of the Northern California market, and which has an initial term expiring on September 25, 2027.

The strategic alliance agreement originally provided for high-level cooperation in the development of new markets by both companies, aided by detailed terms for sharing the risk and reward of joint investment opportunities. However, changes in market conditions since 2007, Polaris’ independent development and operation of its terminal in Long Beach, California, and development of a fine sand product, as well as Cemex’s recent decision to sell certain assets in Washington and Oregon, have removed many of the factors that led to the creation of the strategic alliance.

Polaris Materials sees the potential for a number of compelling business opportunities in markets on the West Coast, including Seattle, Portland and Southern California, as well as further opportunities in Hawaii and other areas. Polaris announced that the termination of the agreements provides it with improved strategic flexibility to achieve its objectives in these markets.

Polaris Materials says the conclusion of the strategic alliance agreement does not prevent the companies from working together in the future in other markets where a relationship is mutually beneficial.