Displaying items by tag: US
Show US the infrastructure
17 May 20172017 has started more uncertainly for the US cement industry than 2016 did according to the latest data from the United States Geological Survey (USGS). Cement shipment data from just two months, January and February 2017, can only present a limited impression of the state of the industry. Yet the key trend to look for in Graph 1 is the growth in Midwestern US states against a decline in the Western ones. Previously in 2016 this region’s shipments sunk below those in the West in December and didn’t overtake them until the spring. This time round they’ve stuck closely and overtaken them already in February 2017.
Graph 1: Portland and blended cement shipments by US Census Bureau region for 2016 to February 2017. Source: USGS.
The Midwest’s cement shipments jumped by 21% year-on-year to 2.2Mt for those first two months. Buzzi Unicem concurred with this picture in the Midwest with its first quarter financial results this week, reporting a boost in deliveries in the region. HeidelbergCement agreed, reporting sales volumes increases in the north of the country and a decrease in the West. In that region the USGS data shows an 8% fall in shipments to 2.2Mt. HeidelbergCement blamed heavy rain and flooding in California and Oregon as the cause of the problems. Another potential reason that the USGS hints at are increasing imports of cement that it says have been rising faster than sales. For example, imports of cement to the US as a whole grew by 23.9% year-on-year to 0.81Mt in February 2017.
Overall though the situation for the larger cement producers has been subdued. Many of them blamed good weather in the first quarter of 2016 giving them a hard quarter to measure against in 2017. For example, LafargeHolcim’s sales volumes of cement fell by 4.5% in North America although it did report sales growth off the back of cement pricing and cost controls. HeidelbergCement may have looked good on paper following its integration of the Italcementi/Essroc assets but its cement volumes only grew by 1% in the period. Cemex too reported a similar scenario with falling sales volumes of 5% but growing sales revenue.
To put this in perspective, as the Portland Cement Association’s (PCA) chief economist Ed Sullivan says in the May 2017 issue of Global Cement Magazine, cement production in the US grew in 2016 and it is expected to continue growing in 2017 and 2018. Just like the start of 2016 (see GCW251) the potential for US construction growth in the year ahead is a quietly confident one but it isn’t assured.
Cemex points out that housing starts rose by 8% in the first quarter of 2017, as did construction spending in the industrial and commercial sector. However, it says that infrastructure spending fell by 9% in February 2017. Indeed this last point is an important one given that one of the major Trump campaign pledges in the 2016 presidential campaign was to build more infrastructure. As commentators in Washington DC including the PCA have asked: where is the Bill? Rightly, the PCA are not letting the lawmakers forget this during ‘Infrastructure week’ as the issue is discussed. The US cement industry needs this.
For further information on the US cement industry take a look at the May 2017 issue of Global Cement Magazine
US: The US Environmental Protection Agency (EPA) has fined the Nevada Cement Company US$0.5m for violating the Clean Air Act. According to a legal complaint the cement producer made ‘major’ modifications to its plant in Fernley, Nevada that led to significant increased emissions of NOx, without first obtaining a permit required by the Clean Air Act and without installing necessary pollution control equipment. Nevada Cement has agreed to install new air pollution control technology replace a heavy-duty diesel truck and a diesel railcar mover at the facility with clean emissions vehicles.
Fuchs opens US$26m grease plant near Chicago
16 May 2017US: Fuchs Petrolub has opened a US$26m grease manufacturing plant, research laboratory and warehouse near Chicago. The 3150m2 unit in Harvey, Illinois will supply lubricants to the automotive, heavy-duty truck, construction, rail, and off-road markets in North America.
The expansion of the Chicago-area site is part of a US$330m investment by the company in 2016 to 2018 in its manufacturing and research and development facilities. The company also expanded its facilities in Mannheim and Kaiserslautern, Germany, and is opening new plants in Wujiang, China, Australia and Sweden. The Harvey facility is Fuchs' second grease plant in the US with the other in Kansas City, Missouri.
PCA names leaders in safety and sustainability
10 May 2017US: The Portland Cement Association (PCA) has announced the winners of its Chairman’s Safety Performance, Safety Innovation and Energy and Environment Awards. The awards recognise outstanding safety performance in the manufacturing of Portland cement, creative safety-enhancing projects in the cement industry and outstanding environmental and community relations respectively.
“The facilities recognised today are to be congratulated for their safety achievements,” said Allen Hamblen, PCA chairman and president and chief executive officer of CalPortland, in relation to the Safety Performance Awards.
Winners of the 2017 PCA Chairman’s Safety Performance Awards:
Category: Less than 226,000 hours
Buzzi Unicem USA – Chattanooga, Tennessee
LafargeHolcim US – Morgan, Utah
Lehigh Hanson, Inc. – Tehachapi, California
Category: 226,001 - 289,000 hours
Ash Grove Cement – Foreman, Arkansas
GCC Permian – Odessa, Texas
Lehigh Hanson, Inc. – Leeds, Alabama
Category: 289,001 - 563,000 hours
Cemex USA – Brooksville, Florida
Cemex USA – New Braunfels, Texas
Martin Marietta Materials – New Braunfels, Texas
Winners of the 2017 Safety Innovation Awards:
Milling/Grinding
Ash Grove Cement, Montana City, Montana
Pyroprocessing
Cemex USA, Balcones, Texas
Distribution
CalPortland Cement Terminal, Portland, Oregon
LafargeHolcim US, Corporate Program, Chicago
Winners of the 2017 Energy and Environment Awards:
Energy Efficiency
Cemex USA Construction Materials, Pacific, LLC, Victorville, California
Environmental Performance
Cemex USA Construction Materials, Pacific, LLC, Victorville, California
Land Stewardship
Continental Cement Company/Green America Recycling, Hannibal, Missouri
Outreach Winner
Mitsubishi Cement Corporation, Lucerne Valley, California
Boral completes acquisition of Headwaters
09 May 2017US: Boral has completed its acquisition of Headwaters, a leading building products manufacturer and fly ash marketer in North America. Boral USA and Headwaters will form a new division to be named Boral North America, which will be headquartered in Atlanta, Georgia, the location of Boral’s current US headquarters.
US: The Federal Trade Commission (FTC) has approved Boral’s proposed acquisition of Headwaters. Boral expects that the transaction will be completed within two business days. The transaction is worth US$2.6bn. Following the purchase Boral USA and Headwaters will form a new division to be named Boral North America.
“We have been eagerly awaiting the approval from US regulators to allow us to complete the acquisition and to deliver on our strategy. In the meantime, we have continued to develop our integration plans and we are confident in our ability to deliver on the synergy targets we established when the transaction was announced,” said Boral’s chief executive officer and managing director Mike Kane. He added that Boral North America will focus on building products and fly ash.
ACG Materials buys North Florida Rock
04 May 2017US: ACG Materials has acquired North Florida Rock (NFR). ACG, a subsidiary of private equity firm HIG Capital, produces and processes industrial minerals and aggregates including gypsum, limestone, sand, gravel and downstream food, pharmaceutical and plaster products. NFR mines and produces limestone products sold into infrastructure, agriculture and building products applications. NFR owns and operates a quarry in Marianna, Florida and ships rocks across the Florida Panhandle, Alabama, and Georgia. No value for the deal has been disclosed.
“We are excited about the strategic expansion of our operations into the Southeastern US,” said Paul Harrington, chief executive officer of ACG Materials. “NFR not only allows us to grow outside our core Oklahoma, Texas, and Pacific Northwest markets, but also significantly expands our customer footprint and portfolio of limestone products within our expertise of mineral processing.”
NFR is the sixth add-on acquisition that ACG Materials has made since HIG acquired the company at the end of 2012.
McInnis Cement starts building terminal in New York
21 April 2017US: Canada’s McInnis Cement has started building a terminal in the South Bronx region of New York. The 6930m2 warehouse will be able to store 43,000t of cement and load up to 80 trucks/day. Cement will be delivered to the site from McInnis’ plant in Port-Daniel, Gascons, Quebec. A barge-mounted ship unloader travelling between New York and Providence will be used to pneumatically transfer the cement into the warehouse.
Additional features to the terminal include a 24-hour operations schedule, rooftop solar panels and a fully enclosed truck load out system will mitigate dust. The site was chosen due to its access to the New York City Harbour. The area is also expected to see an investment of over US$45bn towards infrastructure projects and another US$6bn towards repairs following Hurricane Sandy in 2012.
“We are very excited to being one step closer to delivering cement to our customers in this area and along the east coast,” said McInnis Cement chief executive officer, Herve Mallet. “Once complete, the facility will set a new standard for development in the New York City Harbour, placing in harmony an industrial operation, with a natural wildlife habitat and waterfront access for citizens of the South Bronx.”
US: The Environmental Protection Agency (EPA) has awarded CalPortland with a 2017 Energy Star Partner of the Year – Sustained Excellence Award for energy efficiency achievements. CalPortland’s accomplishments will be recognized by the EPA and the Department of Energy in Washington, DC on 26 April 2017.
Its key 2016 accomplishments include a reduction of its energy intensity by 1.1% in 2016 compared to business as usual in 2015 which resulted in over US$682,000 in savings and a reduction of 14,234Mt of CO2. The company initiated a new ‘CalPortland Energy Cup’ competition that compares and quantifies energy practices and performance of its three cement plants. All three CalPortland cement plants scored in the top quartile of the Energy Performance Indicators (EPI) benchmarking tool. The Rillito plant has been certified for the past five years in a row.
CalPortland has also completed several large energy saving projects including the installation of a new US$9m clinker cooler at the Rillito cement plant, a US$14m Anchorage terminal storage dome and a US$2m preheater duct replacement at the Mojave cement plant.
US: The Portland Cement Association (PCA) has supported President Donald Trump’s executive order (EO) on energy independence. The EO instructs federal agencies to review and either revise or withdraw a number of actions taken by the Obama administration, including the Environmental Protection Agency’s (EPA) Clean Power Plan. The EO also immediately rescinds other federal policies, such as the social cost of carbon figures developed by the Interagency Working Group on Social Cost of Greenhouse Gases.
“The PCA applauds President Trump for revisiting regulations that have a significant impact on the nation’s cement manufacturers, such as those in the EO issued today,” said PCA Executive Vice President Todd Johnston. He added that the EPA’s Clean Power Plan had ‘exceeded’ the agency’s statutory authority and that the social cost of carbon figures were developed without necessary transparency and public input.
Despite supporting measures that rollback environmental policy in the US the EPA said that it and its members were committed to manufacturing products with a ‘minimal’ environmental footprint.