Heidelberg Materials acquire largest supplier of PFA in Malaysia

Acquisition will contribute to a significant lowering of the company’s CO2 footprint in south-east Asia 

HEIDELBERG Materials announced today that they have entered into a definitive purchase agreement to acquire ACE Group, the largest suppliers of pulverized fly ash (PFA) in Malaysia, effective 1 May 2024. Both parties have agreed to not disclose the financial terms of the transaction. 

As part of the company’s ongoing portfolio optimization, the acquisition will strengthen circularity within Heidelberg Materials’ value chain in south-east Asia. Reusing fly ash from energy generation contributes significantly to reducing the CO₂ intensity of composite cement: Used as an additive, fly ash can replace part of the energy-intensive clinker and thus reduce the CO₂ intensity of the cement.

ACE Group comprise three entities operating across the value chain: ACE Greencemt Venture, a leading supplier of PFA to the Malaysian construction industry; ASAS Asia, a processor of coal ashes; and AGP Logistics, a logistics service company operating 20 silo trucks. The leadership team of ACE Group will stay on board as part of the acquisition to continue managing the companies.

‘The acquisition reflects our strong commitment to further strengthening our footprint in a growing market in south-east Asia,’ said Roberto Callieri, member of the managing board of Heidelberg Materials and chief executive officer of Heidelberg Materials Asia. ‘Leveraging the vertical integration of ACE Group helps to drive our ambitious carbon-reduction targets at all our sites throughout Malaysia.’

Dr Nicola Kimm, chief sustainability officer and member of the managing board of Heidelberg Materials, added: ‘We are experiencing a growing demand for sustainable building materials. With the acquisition of ACE Group, we continue to optimize our portfolio and lower our carbon footprint in yet another key market, on our path to eventually delivering net-zero cement and concrete across the globe.’