Displaying items by tag: Argos USA

US: Argos USA has obtained a US$750m loan for the financing of its working capital and capital expenditure and refinancing of its debt. The loan is linked to environmental, social and governance (ESG) metrics. Bank of Nova Scotia, BNP Paribas, JP Morgan Chase Bank, SMBC and Bank of New York Mellon lent the funds, assisted by Cuatrecasas.

Parent company Cementos Argos said "With this credit agreement, around 44% of Cementos Argos' consolidated debt will be linked to ESG indicators, bringing it closer to the 50% target for 2022 previously announced to the market, and thus reaffirming the company's commitment to meeting ambitious goals in terms of sustainable growth."

US: Argos USA has invested US$40m in 200 new ready-mix concrete mixer trucks, as the first phase of a five-year fleet expansion and replacement plan. The company says that the vehicles have a useful life of 8 – 10 years, or 53,500m³. It expects to make its next truck purchases in early 2023.

Argos USA ready-mix president Richard Edwards said "With the acquisition of these new assets, we continue our dedication to delivering extraordinary solutions to customers, helping facilitate the progress and development of the cities and communities where we have a presence. Our new trucks have a capacity of around 7.5m³ of concrete, are approximately 15% more fuel efficient than our previous trucks, and result in lower atmospheric emissions. They are also vehicles with the latest safety equipment, to continue ensuring the safety of our employees and everyone we share the road with daily."

US: Argos USA has launched its new Portland Limestone Cement (PLC) brand EcoStrong.The company says the its will complete its conversion to 100% EcoStrong PLC cement production across all facilities in 2023.Its Roberta, Alabama cement plant and Atlanta, Georgia grinding plant will transition by mid-2022, while its Newberry, Florida cement plant will transition by October 2022.Argos USA plans to use EcoStrong cement at all of its Eastern US ready-mix concretesites by mid-2022.

Cement technical director Steve Wilcox said“I am excited to be part of Argos’ brand announcement for our PLC Type IL product. EcoStrong PLC encompasses everything we have worked for over the past decade, to offer a high-quality product with lower embodied carbon, which contributes to the ultimate goal of decarbonising across our operations. Our PLC product is engineered to reduce the harmful effects on the environment and perform similar to or better than our ordinaryPortland cement (OPC) Type I/II. EcoStrong PLC empowers our customers, specifiers, architects, and engineers to design and execute their projects with resilience and sustainability.”

US: Cementos Argos subsidiary Argos Florida Cement has won the Slag Cement Association (SCA)’s Durability and Infrastructure awards at its 2022 Sustainable Concrete Project of the Year Awards. The producer won the awards for its supply of slag cement to two projects in Florida in 2021. Its involvement in the American Bridge Company’s SR 679 Pinellas Bayway Bridge – Structure E replacement won it the Durability award, while its involvement in Superior Paving’s State Road 52 realignment. Argos Florida Cement congratulated its customers, who also received the awards.

US: Argos USA has agreed to sell a total of 23 US ready-mix concrete batching plants to Smyrna Ready Mix Concrete for US$93m. 18of the plants are situated in North Carolina and the remainder in Southwest Florida. The El Colombiano newspaper has reported that the deal includes a five-year cement supply agreement for all 23 plants. Cementos Argos said that the divestment is part of its plan to divest assets in suburban markets or that are not already integrated into its production and logistics chain.

US: The Environmental Protection Agency (EPA) has awarded its Energy Star certification to cement plants belonging to two Titan America subsidiaries. Titan Florida’s Pennsuco, Florida, cement plant has secured its 14th consecutive Energy Star, while Roanoke Cement’s Troutville, Virginia, cement has secured its 15th consecutive Energy Star.

Other cement plants to receive Energy Stars in 2022 included two Argos USA plants (Calera, Alabama, and Harleyville, South Carolina), two GCC plants (Pueblo, Colorado, and Rapid City, South Dakota), Buzzi Unicem’s Chattanooga, Tennessee, plant and three plants in Arizona: CalPortland’s Rillito plant, Drake Cement’s Paulden plant and Salt River Materials Group’s Clarkdale plant.

Argos USA announced this week that its integrated Roberta plant in Alabama is set to produce 100% Portland Limestone Cement (PLC) by June 2022. As part of the transition three of its terminals in North Carolina will also switch over at the same time. The company also expects that all of its plants will convert to PLC in 2023. Cement sites including Newberry in Florida, Harleyville in South Carolina and Martinsburg in West Virginia are already producing PLC.

The change by Argos marks the latest example in an ongoing trend of US-based cement companies moving entire plants to PLC production. In September 2021 LafargeHolcim US said that its integrated Midlothian plant in Texas was preparing to convert to full PLC production and that it would be the first plant in the US to do so. It later confirmed that the plant had done so by the end of 2021. In October 2021 GCC said that its Trident Plant in Montana would fully move to PLC in early 2022. Then in November 2021 Titan America said that its Pennsuco cement plant in Florida would make the change possibly by 2023. Moving into 2022 brought the news that LafargeHolcim US’ Ste. Genevieve plant in Missouri and its Alpena plant in Michigan had each transitioned to PLC production. Lehigh Hanson then rounded up the bunch earlier this month, at the start of February 2022, when it announced that a PLC was the primary product now coming out of its Mason City plant in Iowa. It even invited a US Member of Congress to celebrate!

The current expansionist phase of PLC usage in the US dates back to late 2020 when the Portland Cement Association (PCA) launched a dedicated website to promote the use of the blended cement by discussing its applications and benefits. It then released a new environmental product declaration in March 2021 and PLC received a mention in the PCA’s Roadmap to Carbon Neutrality when it was released a year later in October 2021. Lots of work went into PLC prior to 2020 though, both by the PCA and others. The first commercial production of PLC in the US started in 2005 and PLC gained its own blended cement specification in 2012. Notably, the PCA has been tracking the state acceptance of PLC by the Department of Transportation and it grew markedly during the 2010s.

The US is playing catch-up with PLC. In Europe its usage dates back to the 1960s. Cembureau, the European Cement Association, reported usage of around 30% in 2004. More recently in 2020, the VDZ, the German Cement Association, reported a similar figure domestically with the proportion of blended cement shipments including limestone, shale and multiple additives at 31.6%. In the US it is hard to gauge the scale of the current move towards PLC by producers, due to limited publicly available data. A PCA survey reported PLC production of 0.89Mt in 2016. If all the plants mentioned above convert fully to PLC and maintain their rated production capacity that would be something like 14Mt/yr of PLC in 2023 or 11% of the US’s total cement capacity. For comparison, the United States Geological Survey (USGS) reported total shipments of all blended cements at 3.3Mt in 2020 and a total of 5.4Mt for the first 11 months of 2021. Plus, remember that PLC is just one blended cement among others, like those that use slag or fly ash.

Recent developments show that a large change is coming towards the US cement market in the update of blended cements. It’s been a long time coming but the last six months have seen brisk increases in PLC production at scale. The exact data is not available but one might expect something around triple the current number of production plants making PLC if the US market heads towards European levels. This rough estimate doesn’t take into account existing partial PLC production levels. At the same time the US cement sector should see a fall in its emissions due to PLC’s 10% reduction in CO₂ emissions compared to Ordinary Portland Cement

US: Argos USA has announced the upcoming transition of its Roberta, Alabama, cement plant to Portland limestone cement (PLC) Type IL production. By mid-2022, the company plans to produce 100% PLC at the 1.7Mt/yr plant. Its Durham, Statesville and Wilmington cement terminals in North Carolina will also transition to the exclusive distribution of PLC. The Roberta plant will directly serve customers in Alabama, Florida, Georgia and Mississippi.

Argos USA has also launched PLC production at its Harleyville, South Carolina, Newberry, Florida, and Martinsburg, West Virginia, cement plants. It aims to begin producing PLC at all of its cement plants nationally by 2024.

CEO Bill Wagner said "We are excited to announce the transition of the Roberta plant to 100% (PLC) Type IL. With this transition, we continue to support our customers and the industry on its road to lower greenhouse gas emissions. With PLC, we are supplying a more environmentally friendly building solution for our customers, engineered to deliver an outstanding quality and performance while lowering our carbon footprint.”

Cementos Argos announced this week that it is starting the process for an initial public offering (IPO) for its US business. It said that this had followed several months of consideration by its board of directors. Getting listed on the New York Stock Exchange is expected to help the company ‘optimise’ its capital structure and promote growth, due in part to the recent approval of the US$1Tn Infrastructure Bill in the US and a general positive cycle expected for the local construction materials sector over the next decade.

Argos’ decision to go public in the US comes hot on the heels of several recent attempts in Colombia to buy stakes in two of the major shareholders of Grupo Argos, the parent company of Cementos Argos and Argos USA. First, Grupo Gilinski tried to buy a majority stake in Grupo Nutresa in early November 2021. Then, at the end of November 2021, Grupo Gilinski put in an offer for a large minority share, up to 32%, of Grupo SURA.

Argos, Nutresa and SURA are all part of a highly interconnected group of companies known as the Grupo Empresarial Antioqueño (GEA), which each own stakes in each other. In part this structure helps to prevent hostile takeover attempts. However, Grupo Gilinski appears to be trying to challenge this, in the eyes of some market observers. Grupo Argos is the next obvious target for such an attempt after Nutresa and SURA. In response Grupo Argos has said that it won’t take part in Grupo Gilinski’s public acquisition offer to buy shares in Nutresa (it owns around 10% itself). Instead it has accelerated its plans for Argos USA and also wants to consolidate its interests in road and airport concessions, energy and real estate into a single entity, also to be listed in New York. All of this can be seen as action intended to make any further moves by Grupo Gilinski on GEA harder. Corporate tussles between Grupo Gilinski and GEA also hark back to a long-running legal dispute from the late 1990s over the formation of Bancolombia.

It is reasonable for the US subsidiary of Cementos Argos to want to raise funds from an IPO. The business has gradually been expanding over the last 15 years or so. First it acquired ready-mix concrete operations in the southern US from 2005. Then it purchased two integrated cement plants from Lafarge in 2011, at Roberta in Alabama and Harleyville in South Carolina respectively. This was followed by the integrated Newberry plant in Florida from Vulcan Materials in 2014, along with two grinding units in Florida. Finally, it picked up the integrated Martinsburg plant in West Virginia from HeidelbergCement in 2016. More recently it has been divesting some of its concrete plants in the US. At present Argos USA is the ninth largest cement producer in the country by cement production capacity.

Its cement sales volumes have grown by 4.5% year-on-year to 4.6Mt in the first nine months of 2021 and earnings before interest, taxation, depreciation and amortisation (EBIDA) rose by 25% to US$239m although sales revenue dipped very slightly to US$1.09bn. Ready-mixed concrete sales volumes have also fallen, by 12% to 3.98Mm³. The growth has been attributed to both residential and commercial markets and the Infrastructure Bill is expected to keep demand brisk for the next few years. Looking at the wider picture, cement generated about 64% of Grupo Argos’ revenue in 2020, its biggest share after energy generation and a concessions business. A third of Cementos Argos’ revenue so far in 2021 came from the US.

It’s fascinating to glimpse what may be some of the inner corporate workings of Grupo Argos and the various things it has to consider for its US cement business. The US subsidiary is clearly a major earner for it with a buoyant future. The Portland Cement Association (PCA) was forecasting cement consumption growth of nearly 8% in 2021 and 2% in 2022 in its summer summary and that was before the infrastructure bill made it into law. Further expansion in the US by Argos is to be expected and the planned IPO underlines this. Meanwhile whether this and other actions are enough to stymie Grupo Gilinski remain to be seen.

US: Cementos Argos plans to begin trading publically in mid-late 2022 with the launch of an initial public offering (IPO) on the New York Stock Exchange.

The company said “The listing in the US will contribute to the purpose of fully capturing the business value of the company, optimising the capital structure and obtaining the necessary resources to continue executing the growth strategy that the company plans to achieve in that country as a result of the recent approval of the Bipartisan Infrastructure Law for US$1tn and the positive cycle expected for the construction materials industry in the residential, commercial and civil works segments during the next 10 years.”