Polaris Materials Corporation's subsidiary Eagle Rock Aggregates is not renewing a strategic alliance agreement and related joint co-operation and development agreements with Cemex.
The agreements will now terminate in accordance with their terms on September 25, 2017. Eagle Rock Aggregates and Cemex remain bound by the terms of an aggregate supply and distribution agreement which 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 agreement originally provided for high-level co-operation in the development of new markets by both companies, aided by detailed terms for sharing the risk and reward. However, changes in market conditions since 2007 have removed many of the factors which led to the creation of the strategic alliance.
Polaris sees the potential for a number of compelling business opportunities in markets on the west coast including Seattle, Portland, and Southern California, including San Diego, as well as further opportunities in Hawaii and other areas. The termination gives Polaris improved strategic flexibility to achieve its objectives in these markets, the company says.
“Cemex has been, and continues to be, a valued partner to Polaris in the Northern California market, and we look forward to continuing to work closely with them, and advancing our joint business interests in this region,” Polaris Materials Corporation said in a statement.
Polaris Materials Corporation is engaged in the development and operation of construction aggregate quarries in Canada to supply distribution facilities in the United States through coastal shipping. Its active construction aggregate interests consist of its Orca Sand and Gravel Quarry in British Columbia and two associated receiving terminals in Richmond and Long Beach, California.
Polaris also owns the Black Bear Project located in close proximity to the Orca Quarry, and a controlling interest in the Eagle Rock Quarry Project, located on the south coast of Vancouver Island.
This story was amended on 2 July to correct several errors in the description of the alliances between Polartis and Cemex.
