US: Titan America has cancelled the construction of a cement plant in Castle Hayne, North Carolina. It said it made the decision on economic reasons. Supply and demand balances in the specific regional markets did not support the cost of building a plant.
“Our decision to suspend construction on the cement plant in Castle Hayne is driven by basic project economics,” said Bill Zarkalis, Titan America’s CEO. “The pace of demand growth in the specific markets does not seem adequate to justify the addition of substantial new production capacity - more so because the costs to construct a new cement plant in the United States have risen substantially in the past few years. Finally, the overall risk profile of the project has worsened as new coastal capacity in North Carolina could be vulnerable to cement imports, considering the strong US Dollar, the global cement supply situation and low ocean freight costs.” He added that Titan is committed to long-term growth in the US and that the group is investing over US$250m between 2014 and 2016.
Titan America serves its North Carolina market from its Roanoke cement plant in Virginia, with an integrated logistics network of cement distribution terminals, warehouses and more than twenty ready-mix concrete plants. No jobs in any of Titan America’s existing operations are expected to be affected by the decision to cancel the Castle Hayne cement plant.