Loma Negra

Loma Negra is an Argentine construction-materials company and the country's leading manufacturer of cement, concrete, and lime. The business originated in the Olavarría area of Buenos Aires Province, where businessman Alfredo Fortabat identified substantial limestone deposits at his San Jacinto estate in 1926. He established a cement plant near the settlement of Loma Negra in 1927, giving the company its name, which refers to the area's dark hillock. The availability of local limestone, together with the site's position in the Buenos Aires pampas, provided the foundation for a vertically integrated industrial business serving Argentina's construction sector. The company expanded from its original plant during the twentieth century. By the early 1950s, its facilities at Loma Negra and nearby Barker were producing approximately 500,000 tons of cement annually. During the 1960s, new plants in San Juan and Zapala extended the company's geographical reach into the Andes-region markets. In the 1980s, Loma Negra added its first Portland cement facility in Catamarca. These investments helped establish it as Argentina's leading producer of cement and concrete. Following Alfredo Fortabat's death in 1976, his widow, María Amalia Lacroze de Fortabat, became the company's majority owner, president, and chairperson. Under her leadership, Loma Negra strengthened its position through acquisitions and diversification. In 1992, it acquired Cementos San Martín, a significant competitor, and Ferrosur Roca, a newly privatized railway line that supported the movement of raw materials and finished products. The same year, the group inaugurated a new headquarters in central Buenos Aires. In 1995, it entered the recycling and alternative-fuels area through Recycomb, whose facility was built in Cañuelas. Acquisitions of five ready-mix concrete producers in 1998 and 1999 made Loma Negra the national leader in that segment as well. A new plant opened in 2001 increased clinker capacity for Portland cement to 1.6 million tons, while the Loma Negra Technical Center, opened in March 1999, became a specialized technical and research facility described as the only one of its type in Latin America. The economic crisis surrounding 2001 left the company with approximately US$270 million in debt. Financial pressure, combined with Fortabat's advanced age, contributed to the decision to sell the family's controlling interest. In May 2005, Brazilian conglomerate Camargo Corrêa acquired an approximately 80 percent stake for slightly more than US$1 billion. Loma Negra subsequently became part of the InterCement group, which is now associated with Brazil's Mover Participações conglomerate. At the time of the 2005 transaction, Loma Negra represented about half of Argentina's national cement output. During the strong Argentine construction cycle of 2007 and 2008, national cement production approached 10 million tons annually, while Loma Negra retained an estimated 48 percent domestic market share. The company also pursued further capacity expansion: in November 2008 it announced a five-year, US$235 million program intended to increase capacity by 20 percent, despite weaker construction activity after the global financial crisis. Its business remains centered on supplying cement, concrete, lime, and related construction materials to the Argentine market.

Loma Negra's origins lie in the discovery of large limestone deposits by Alfredo Fortabat at his San Jacinto estate in 1926. Fortabat chose to build a cement factory near the small settlement of Loma Negra, south of Olavarría in Buenos Aires Province. The plant was completed in 1927, and the company took its name from the locality. Its access to limestone enabled the business to develop a durable raw-material base in the heart of Argentina's principal pampas region. The original operation grew into a larger industrial network. By the early 1950s, the Loma Negra and Barker facilities together produced about 500,000 tons of cement per year. Expansion during the 1960s added facilities in San Juan and Zapala, allowing the company to serve markets along Argentina's Andean corridor. During the 1980s, it established a Portland cement facility in Catamarca. These additions made Loma Negra the country's leading cement and concrete producer. Alfredo Fortabat died in 1976. His widow, María Amalia Lacroze de Fortabat, assumed control as majority shareholder, president, and chairperson. Her tenure combined geographic expansion, vertical integration, and diversification. In 1992, Loma Negra acquired Cementos San Martín and the privatized Ferrosur Roca railway. The railway acquisition gave the group an important transportation asset for moving inputs and construction materials. Loma Negra also opened a new downtown Buenos Aires headquarters in 1992. The group broadened its industrial activities in 1995 with Recycomb, a recycling operation whose plant was constructed in Cañuelas. It then purchased five concrete producers in 1998 and 1999, making it Argentina's national leader in ready-mix concrete. The Loma Negra Technical Center opened in March 1999 and was presented as the only facility of its type in Latin America. A plant opened in 2001 raised the group's clinker capacity for Portland cement to 1.6 million tons. The Argentine economic crisis around 2001 left Loma Negra with roughly US$270 million in debt. The debt burden, together with Amalia Lacroze de Fortabat's age, contributed to the sale of the family's controlling interest. Camargo Corrêa acquired an approximately 80 percent stake in May 2005 for slightly over US$1 billion. Loma Negra subsequently operated within InterCement, which is associated with the Brazilian conglomerate Mover Participações. The company remained a dominant force in Argentina's cement sector. Around the time of the acquisition it accounted for approximately half of national cement production. During the construction expansion of 2007 and 2008, Argentina produced nearly 10 million tons of cement annually and Loma Negra held an estimated 48 percent market share. In November 2008, amid a slowdown linked to global financial instability, the company announced a five-year, US$235 million plan to increase capacity by 20 percent. Its historical development reflects the importance of domestic limestone resources, regional plant investment, logistics integration, acquisitions, and the growth of Argentina's construction market.

• 2008

  Capacity expansion plan announced

  [1]Loma Negraen.wikipedia.org

  Loma Negra announces a five-year, US$235 million program designed to increase capacity by 20 percent.

• 2005

  Camargo Corrêa acquires controlling stake

  [1]Loma Negraen.wikipedia.org

  Camargo Corrêa purchases approximately 80 percent of Loma Negra for slightly more than US$1 billion.

• 2001

  Clinker capacity expands

  [1]Loma Negraen.wikipedia.org

  A new plant raises clinker production capacity for Portland cement to 1.6 million tons.

• 1999

  Technical Center opens

  [1]Loma Negraen.wikipedia.org

  The Loma Negra Technical Center opens in March and is described as the only facility of its kind in Latin America.

• 1995

  Recycomb is launched

  [1]Loma Negraen.wikipedia.org

  The company enters recycling through Recycomb, whose facility is built in Cañuelas.

• 1992

  Railway and competitor acquisitions

  [1]Loma Negraen.wikipedia.org

  Loma Negra acquires Ferrosur Roca and Cementos San Martín, strengthening logistics and cement-market position.

• 1976

  Leadership passes to Amalia Lacroze de Fortabat

  [1]Loma Negraen.wikipedia.org

  After Alfredo Fortabat's death, his widow becomes majority owner, president, and chairperson.

• 1960

  Andean-region expansion

  [1]Loma Negraen.wikipedia.org

  New facilities open in San Juan and Zapala during the 1960s, helping Loma Negra become Argentina's leading cement and concrete producer.

• 1950

  Early production network reaches 500,000 tons

  [1]Loma Negraen.wikipedia.org

  By the early 1950s, the Loma Negra and Barker facilities together produce approximately 500,000 tons of cement annually.

• 1927

  First cement plant opens

  [1]Loma Negraen.wikipedia.org

  Fortabat opens a cement plant near Loma Negra, south of Olavarría, and names the company after the settlement.

• 1926

  Limestone deposits are identified

  [1]Loma Negraen.wikipedia.org

  Alfredo Fortabat discovers large limestone deposits at the San Jacinto estate, creating the raw-material basis for a cement business.

A vertically integrated Argentine construction-materials leader with a nationwide industrial and logistics footprint, built around cement, concrete, lime, clinker, and related services.

• Cement · 1927

  Cement

  Cement is Loma Negra's core product and the foundation of its position in Argentina's construction-materials market. The company developed from an integrated limestone-and-cement operation and expanded through plants in Buenos Aires Province and several Andean-region cities. Its output serves general construction and infrastructure demand across Argentina.

• Cement · 1980

  Portland cement

  Portland cement became an important part of Loma Negra's portfolio following the development of a dedicated facility in Catamarca during the 1980s. A plant opened in 2001 increased clinker capacity for Portland cement to 1.6 million tons, supporting the company's ability to serve large-scale construction and infrastructure applications.

• Concrete · 1998

  Ready-mix concrete

  Loma Negra expanded into ready-mix concrete by acquiring five concrete producers in 1998 and 1999. The acquisitions made the company Argentina's national leader in this construction-material segment and complemented its cement production with a downstream offering for building projects.

• Industrial minerals

  Lime

  Lime is one of the company's principal construction and industrial-material categories. It is produced alongside cement and concrete within Loma Negra's broader mineral-based manufacturing portfolio.

• Recycling and alternative fuels · 1995

  Recycomb recycling services

  Recycomb was launched in 1995 as Loma Negra's recycling-related operation. Its Cañuelas plant extended the company beyond conventional cement manufacturing into the treatment and use of recyclable materials associated with industrial production.

• 2008

  Announce a capacity-expansion programStrategy

  Background

  The announcement came as Argentine construction activity moderated after the global financial instability that began in 2008.

  Action taken

  Loma Negra announced a five-year investment program of US$235 million intended to increase capacity by 20 percent.

  Aftermath

  The plan signaled continued investment in the Argentine market despite the near-term slowdown.

  Planned investment. US$235 million (Five-year program announced in November 2008)

  Source

• 2005

  Sell the Fortabat family's controlling stakeM&A

  Background

  Debt of approximately US$270 million associated largely with the economic crisis around 2001, together with Amalia Lacroze de Fortabat's advanced age, contributed to the decision to sell control.

  Action taken

  The Fortabat family transferred an approximately 80 percent stake to Brazilian conglomerate Camargo Corrêa for slightly more than US$1 billion.

  Aftermath

  Loma Negra became part of the InterCement group and later was associated with Mover Participações.

  Acquisition price. Slightly more than US$1 billion (May 2005)

  Source

• 1998

  Expand into ready-mix concrete through acquisitionsM&A

  Background

  Loma Negra aimed to broaden its construction-materials offering beyond cement and increase its presence in downstream concrete supply.

  Action taken

  The company acquired five concrete producers during 1998 and 1999.

  Aftermath

  Loma Negra became Argentina's national leader in ready-mix concrete.

  Source

• 1992

  Acquire Ferrosur Roca and Cementos San MartínM&A

  Background

  Loma Negra sought to strengthen its domestic cement position and improve control over the transportation of raw materials and finished products.

  Action taken

  The group acquired the newly privatized Ferrosur Roca railway line and competitor Cementos San Martín.

  Aftermath

  The transactions reinforced Loma Negra's market leadership and added an important logistics asset to its industrial network.

  Source

1. 1Loma Negraen.wikipedia.org