€15m by Quinn Group in Ballyconnell plant

Quinn Manufacturing has today announced a €15 million investment to upgrade its Ballyconnell cement plant, which, when completed, will facilitate the use of alternative fuels thereby replacing coal as the primary fuel. "The use of solid recovered fuel (SRF) as an alternative fuel is long established in the cement industry worldwide", the company says. SRF is a fuel produced from segregated waste and its use will bring Quinn Cement cost of production more into line with its Irish and European competitors. Meanwhile, Quinn Building Products Ltd. and Lagan Cement Group Ltd. have signed a memorandum of understanding that may lead to a joint venture between the two groups. The businesses which its said will become part of the proposed joint venture are the combined cement and building products businesses based in Ballyconnell, Derrylin, Kinnegad, Belfast, Cork and Benelux. These include the Lagan Cement Group, which manufactures cement, concrete, quarry and roof tiles, and Quinn Building Products which manufactures cement, roof tiles, pre-stress, light weight blocks and quarries. The terms of the joint venture excludes Quinn Therm, Quinn Litepac, Quinn Tarmac and Lagan Sand. Commenting on the proposed joint venture, CEO of Quinn Manufacturing Group, Paul O'Brien and the CEO of Lagan Cement Group, Jude Lagan, said, "by combining two stable Irish businesses the proposed joint venture will create a sustainable independent cement manufacturer that can continue to support its customers on a competitive basis." The joint venture discussions are likely to take up to three months to complete and will involve the development of a business plan to combine the Quinn/ Lagan cement and building products operations. This proposal will then be subject to approval by the Competition Authority.