Heidelberg Materials buys Hardcore Sands and Pink Lily Sands in central Queensland

With expectations of improvement in the housing construction sector, the Australian arm of a German multinational has acquired two sand operations in central Queensland.

Heidelberg Materials Australia has purchased two sand operations in the Rockhampton region in central Queensland.

The Australian subsidiary of one of the world’s largest multinational building materials companies has increased its footprint with the purchase of two central Queensland sand operations as the sector continues to consolidate.

Heidelberg Materials Australia, formerly known as Hanson Australia, acquired the Hardcore Sands and Pink Lily Sands operations in the Rockhampton region. All employees will be retained as part of the acquisition.

The move marks a further consolidation of the Australian mat­erials sector in anticipation of a continued recovery in the housing market.

Heidelberg Materials Australia chief executive Phil Schacht said the acquisition would give the company access to substantial sand reserves.

“The acquisition by Heidelberg Materials Australia of two quality sand operations in Queensland will extend our footprint in Australia and support our strategic expansion in key markets,” he said.

Completion of the deal is scheduled for January 31.

The latest Australian Bureau of Statistics figures revealed the potential start of a sustained turnaround in housing construction volumes.

Heidelberg Materials Australia CEO Phil Schacht.

The ABS reported that the total number of dwellings units commenced in the September quarter was 4.6 per cent higher than in the June 2024 quarter and 13.9 per cent higher than in the same quarter in 2023.

USB analysts said the ABS report was encouraging. “Migration (and hence population) had previously boomed for several years, and is still set to remain relatively high over the coming year,” they said in a note. “This means our models of underlying housing ­demand still show a record underbuilding of housing has accumulated, which should provide a significant ongoing support to the housing market.”

Last year was a period of consolidation in the sector with offshore players swooping on Australian companies.

At the end of 2024, Cement Australia, a joint venture between Heidelberg Materials Australia and Holcim Australia, acquired the Cementitious division of the Buckeridge Group of Companies based in Perth.

BGC Cementitious’s business portfolio is comprised of cement, concrete, quarry, asphalt and transport operations, as well as a materials technology centre.

The BGC operations included the 1.3 million-tonne-a-year grinding plant at Perth Naval Base and the 0.35 million-tonne-a-year grinding plant at Canning Vale, also in Perth.

In August last year the Kerry Stokes-controlled Seven Group had signalled its interest in the BGC cement division after spending $1.9bn to buyout cement and asphalt group Boral. Also, last year Irish materials giant CRH paid $2.1bn for ASX-listed cement group Adbri.

Japanese company Mitsubishi Chemical and CRH was also understood to have been interested in BGC’s cement division.

Earlier in the year French group Saint-Gobain paid $4.5bn for the then ASX-listed CSR.

Heidelberg Materials Australia currently operates 210 concrete plants, 71 quarries, four asphalt plants, five recycling plants and one landfill site.

German-headquartered parent company Heidelberg Materials is one of the world’s largest integrated manufacturers of building materials, with leading market positions in cement, aggregates and ready-mixed concrete. The company is repres­ented in more than 50 countries.

Originally published as Heidelberg Materials buys Hardcore Sands and Pink Lily Sands in central Queensland