In a major economic blow, Megaacrete cancels Kerrville manufacturing plant deal

A $25 million manufacturing deal announced in 2023 has fallen through after the closure of a major Texas supplier left the company without access to a critical raw material.

Megaacrete Real Estate LLC notified Kerr Economic Development Corp. Director Todd Bock on Friday that it was terminating its agreement to build an autoclaved aerated concrete plant in Kerrville, Assistant City Manager Michael Hornes told the Economic Improvement Corp. board Monday.

The deal collapsed because Austin White Lime Company, the state’s largest quicklime supplier, shut down in 2024. The closest alternative source is in Mississippi, making the project financially unworkable due to shipping costs.

“None of the alternatives had the capacity at their current size to handle the required amount of lime,” Hornes said. “It didn’t pencil out for them.”

The agreement called for Megaacrete to build a 75,000-square-foot facility on EIC-owned land near Kerrville-Kerr County Airport, creating at least 45 jobs. The Mexico-based company planned to locate its U.S. headquarters in Kerrville.

Hornes called the termination “a bummer” after three to four years of negotiations that involved the governor’s office and multiple company visits.

“It was going to be a great project,” Hornes said.

The lightweight concrete product is used by major homebuilders including D.R. Horton and Lennar. The Bevy Hotel in Boerne features Megaacrete wall cladding.

The Kerrville City Council approved the economic development agreement in December 2023. Former Kerr EDC Director Gil Salinas helped attract the company to Kerrville.

City staff is working with Kerr Title and Abstract to unwind the transaction and return the property to the EIC. Hornes said a new road being built to serve the site will remain a valuable asset for future manufacturing prospects.