Hoffmann Green Cement Technologies, a leading industrial player dedicated to decarbonising the construction sector through clinker-free cements, has announced a significant milestone in its global expansion efforts.
The company has inked a 22-year exclusive licensing agreement with the Shurfah Group, a prominent Saudi conglomerate, to establish multiple Hoffmann Green cement production units in Saudi Arabia. This strategic collaboration aims to advance the decarbonization of the construction sector within the region.
The 22-year licensing agreement provides the Shurfah Group with exclusive rights to leverage Hoffmann Green’s pioneering clinker-free cement technologies and replicate a first-of-its-kind plant based on the H2 vertical model. The Shurfah Group, with a substantial portfolio of over 13,800 thousand housing units and investments exceeding 6 billion Saudi riyals, will be responsible for financing, building, and operating Hoffmann Green production units. Furthermore, the agreement grants exclusive marketing rights for Hoffmann Green’s carbon-free cements throughout Saudi Arabia. The first clinker-free cement plant, identical to the H2 model, is scheduled for construction in 2024 within Saudi Arabia.
The engineering and production processes for these plants will be executed by IBAU Hamburg, a German general contractor. Hoffmann Green entered into an exclusive partnership agreement with IBAU Hamburg in June 2022 to support the construction of Hoffmann units worldwide. Importantly, all vertical units, including the ones in Saudi Arabia, will be constructed entirely with Hoffmann Green cement.
In return for the transfer of industrial and technological expertise, along with granting exclusivity, Hoffmann Green will receive an entry fee and fixed and variable annual royalties based on the sales of Hoffmann cements in Saudi Arabia.
This partnership’s primary objective is to facilitate the ecological transition of Saudi Arabia’s construction sector by establishing multiple vertical plants for the production of Hoffmann Green cement. Beyond the first plant, the contract aims to duplicate several H2 plants throughout Saudi Arabia.
Saudi Arabia, through its “Vision 2030” national plan for economic transformation, has prioritized the ecological transition, particularly in the burgeoning construction market, driven by numerous Smart Cities projects. Through their future plants, Hoffmann Green and the Shurfah Group intend to contribute to the decarbonisation of Saudi Arabia’s construction sector and assist the nation in accelerating its path towards carbon neutrality.
Julien Blanchard and David Hoffmann, co-founders of Hoffmann Green Cement Technologies, expressed their enthusiasm, stating, “Just a few weeks after signing a pre-agreement, we have given concrete expression to our commitment by signing this licensing contract with Shurfah, a major player in the Saudi Arabian construction industry. After Switzerland and the United Kingdom, we are continuing our international deployment with the aim of supporting, through this new contract, the kingdom’s ambitious ‘Vision 2030’ project and participating in the decarbonization of their construction industry through the construction of several of our units on their territory and the marketing of our 0% cement clinker.”
Abdullah Al Majed, Founder and Chairman of Shurfah Holding, added, “Saudi Arabia has announced that it is aiming for carbon neutrality by 2060. In order to meet its ecological ambitions, Shurfah is striving to contribute to the sustainable development of the Saudi economy and the realization of Vision 2030. In this context, we are proud to be associated with Hoffmann Green, which will enable us to build our future sites in a sustainable manner. The construction of the first vertical plant in 2024 is just the beginning before, we hope, the duplication of several units throughout the country.”
This partnership between Hoffmann Green Cement Technologies and the Shurfah Group marks a significant step toward sustainable construction practices and carbon neutrality in Saudi Arabia, aligning with the nation’s forward-looking ecological goals.