Lafarge Corporation, the North American subsidiary of the Lafarge Group, has acquired all of the outstanding stock of Presque Isle Corporation, which operates one of the largest stone quarries in the United States. The purchase price was approximately 53 million euros.
The quarry in Presque Isle, Michigan, located approximately 20 miles north of Alpena on the shore of Lake Huron, produces more than 7.5 million tons of aggregates annually. The quarry's estimated 450 million tons of reserves equate to a life of more than 50 years at current production levels. The quarry delivers aggregate products to customers through a network of docks on the Great Lakes.
"This acquisition will complement Lafarge's existing water-based aggregate production facilities on Manitoulin Island, Ontario and Marblehead, Ohio, and let Lafarge take advantage of synergies on the Great Lakes", said John M. Piecuch, Lafarge Corporation President and CEO.
Following the passage of the TEA-21 (Transportation Equity Act for the 21st Century), Presque Isle's main markets in Ohio, Illinois and Michigan are projected to grow at a rate of 3-5 percent annually. TEA-21 is expected to increase combined federal highway aid in those states by more than 700 million euros.
With 15 cement plants, 700 construction materials operations, 4 gypsum wallboard manufacturing facilities in the U.S. and Canada, Lafarge Corporation is North America's largest diversified supplier of construction materials. In 1999, it operated net sales of more than 2.5 billion euros. Lafarge's total North American aggregate production exceeded 70 million tons in 1999, making the company one of the continent's largest suppliers of crushed stone, sand and gravel to the construction industry.