REG - SigmaRoc PLC - Strategic joint venture with ArcelorMittal

SigmarocAnnouncement

12/09/2022 07:00

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RNS Number : 0192Z  SigmaRoc PLC  12 September 2022

12 September 2022

 

(EPIC: SRC / Market: AIM / Sector: Construction Materials)

 

SIGMAROC PLC

 ('SigmaRoc', the 'Group')

 

ArcelorMittal joins forces with SigmaRoc to create a new player in the
production of lime with a net-zero ambition

 

World steel leader ArcelorMittal and quarried materials group SigmaRoc have
entered into a strategic joint venture agreement to create a new company.

The company will produce lime, an essential purifying additive used in steel
production as well as numerous other industrial applications. The partners
will leverage their materials and manufacturing expertise to produce 900,000
tons a year of a high-quality material.

The operations will be located close to Dunkirk's harbour and the
ArcelorMittal steelworks - who will be the main consumer of the lime produced
- allowing for shorter transportation of the finished product.

To transform the quicklime production process, the new company aims at reusing
heat recovered from the ArcelorMittal plant, and at using biofuels in its
process to replace the use of natural gas in the production process and reduce
its CO(2) emissions. Its strategic location will allow the company to be a
part of Dunkirk's CO(2) hub.

The combination of these CO(2) reduction initiatives will allow the company
to offer net-zero lime.

Under the terms of the agreement, each of SigmaRoc and ArcelorMittal will take
a 47.5% ownership stake in the Joint Venture. In the first phase of roll out,
the new company will be responsible for the construction of three new lime
kilns in Dunkirk. Initial planning has commenced on permitting and kiln
specification for these operations, with final permitting approval expected
toward the end of 2023 and commissioning in 2025. Long term supply and offtake
agreements will be entered into between the Joint Venture partners.

 

Max Vermorken, CEO of SigmaRoc, commented:

"We are delighted to have entered into this new partnership
with ArcelorMittal. Through our subsidiary Nordkalk, a leader in lime in
Northern Europe, we bring decades of experience in the production of this
essential material which we will leverage to drive the success of this
collaboration. We are confident this new venture will generate the targeted
return on invested capital for SigmaRoc shareholders and estimate to make an
equity contribution of c.€20m to the joint venture.

For SigmaRoc, this represents another important milestone in establishing
ourselves as a leading European specialist quarried materials group in
addition to helping us further on the road to net zero by 2040. The Joint
Venture is reflective of this ambition and represents one of a number of
important initiatives, both organic and inorganic, that we are pursuing."

 

Matthieu Jehl, CEO of ArcelorMittal France, commented:

 

"The creation of this joint venture is a great step forward for ArcelorMittal.
We are securing our supply of high-quality lime, a key element in our current
and our future steelmaking processes; and together with SigmaRoc, we will work
to achieve net-zero lime production processes, in line with our CO2 reduction
targets.

 

ArcelorMittal is the leader of the decarbonization of the steel industry and
we have ambitious targets: -35% CO2 reduction in Europe in 2030 and carbon
neutrality in 2050."

 

For more information about ArcelorMittal please visit:
corporate.arcelormittal.com

 

For more information about SigmaRoc please visit: www.sigmaroc.com
(https://gbr01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.sigmaroc.com%2F&data=05%7C01%7Cexf%40sigmaroc.com%7Ca5c877975bfd40a53b2e08da93ec7337%7C6d82d0a5f1e4462aa6ce4bf6319e2ddc%7C0%7C0%7C637984940991546078%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=GTY%2FLeasHBNJTmcx7eg9B1EPAeU3T0pSvK60p6xVbsE%3D&reserved=0)

 

 

 

 SigmaRoc plc                                       Tel: +44 (0) 207 002 1080

 Max Vermorken

 Liberum Capital (Co-Broker and Nominated Adviser)  Tel: +44 (0) 203 100 2000

 Neil Patel / Jamie Richards / Ben Cryer

 Peel Hunt (Co-Broker and Financial Adviser)        Tel: +44 (0) 20 7418 8900

 Mike Bell / Ed Allsopp

 Investor Relations                                 Tel: +44 (0) 207 002 1080

 Dean Masefield                                     ir@sigmaroc.com

 

 

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