Displaying items by tag: US
Portland Cement Association confirms 4% growth forecast for 2016
21 September 2016US: The Portland Cement Association (PCA) has confirmed its projection released earlier in 2016 that the US cement industry is on target to see annual cement consumption grow by 4%. Cement consumption through to the end of the year is expected to continue at a steady pace, with additional demand coming from several areas, including moderate residential spending and, to a lesser extent, growth in non-residential and public construction activity. Additionally, the PCA says that favourable monetary policy from the Federal Reserve will support construction activity for the next two years.
“A key factor for continued growth for the cement industry is steady growth in construction spending, also projected to be up 4%,” said PCA Chief Economist and Senior Vice President Edward J Sullivan. “This is very much in line with the overall US economy’s slow-albeit-positive growth path.”
Sullivan noted that PCA has forecasted growth despite some conflicting economic indicators from elsewhere in the economy. “Despite some ups and downs in the US economy, the underlying economic fundamentals are solid.” For example, PCA noted the labour market has consistently seen a net monthly increase of roughly 200,000 jobs, pushing the unemployment rate below 5%. PCA also projects real GDP will grow by 1.5% in 2016, and by 2.2% in 2017.
CalPortland to celebrate 125-year anniversary
20 September 2016US: CalPortland will celebrate its 125-year anniversary, or quasquicentennial, on 21 September 2016. The company was established in 1891 in Colton, California as the California Portland Cement company, the first cement production facility west of the Rocky Mountains. Subsequently, the cement producer provided construction materials for the expansion of Los Angeles and the south-western US. Japan’s Taiheiyo Cement purchased the company in 1990.
"Today, CalPortland is building on its past for a bright and better future. Through key strategic mergers and acquisitions we have brought together more technology and the best people and now proudly serve six western states and two Canadian provinces. CalPortland is dedicated to using all of our resources to help make our customers successful," said Allen Hamblen, President and CEO of CalPortland.
Lafarge North America to lay off workers at Joppa cement plant
15 September 2016US: Lafarge North America plans to lay off an estimated 40 workers at his Joppa cement plant in Illinois. The move follows a decision to shut down one of the plants two kilns due to poor demand, according to WSIL-TV. The announcement follows the cement producer’s decision to scrap its expansion at the plant in May 2016. It previously said that no job losses were anticipated.
Ash Grove Cement appoints Chengqing Qi as technical centre director
14 September 2016US: Ash Grove Cement has appointed Chengqing (Cheng) Qi as its technical centre director at the company’s headquarters in Overland Park, Kansas. In his new role, Qi will oversee operations of the company’s technical centre. Greg Barger, an American Concrete Institute (ACI) Fellow and Ash Grove’s long-time technical centre director, will retire in 2017. Barger will continue in this role and work alongside Qi until the transition is complete.
Most recently Qi served as technical manager for a cement manufacturer where he was responsible for troubleshooting cement, concrete and aggregate performance, testing materials and evaluating new material sources. Prior to that, he was with Professional Service Industries in Fairfax, Virginia, as a materials engineer and petrographer.
Qi has authored or contributed to more than 20 technical papers in peer-reviewed journals and conference proceedings. He is a member of multiple technical committees for the ACI and ASTM International.
Qi holds a doctorate in civil engineering, with an emphasis on cement and concrete materials, from Purdue University’s School of Civil Engineering in West Lafayette, Indiana, and bachelor’s and master’s degrees in materials science and engineering from Southeast University in Nanjing, China.
Cemex sells Fairborn cement plant to Eagle Materials
13 September 2016US: Cemex has signed a definitive agreement for the sale of its 1Mt/yr Fairborn, Ohio cement plant, a cement terminal in Columbus, Ohio and a cement bagging operation to Eagle Materials for US$400m. Cemex will use the proceeds of the sale to reduce its debts and for general corporate purposes. The closing of the deal is subject to regulatory approval. The divestiture is expected to be completed during the fourth quarter of 2016.
"Our strategy has been to grow the cement side of our business. The Fairborn plant extends our US cement system and connects but does not overlap with the market reach of our existing plants. This high-quality cement plant is a compelling fit with our strategic objectives and our criteria for new investment. These assets will allow us to participate more fully in the US construction industry and further positions the company in target US heartland growth markets," said Dave Powers, Eagle Materials President and Chief Executive Officer.
US: An on-going mechanical failure is to shut down the Lehigh Cement Redding plant in California for an estimated 14 weeks. The problem with a gearbox has reportedly been occurring since January 2016 and has persisted despite equipment replacements. The cement producer is currently waiting for further replacement parts, according to the Redding Record Searchlight newspaper.
39 workers will also be laid off at the plant. Lehigh previously laid off 40 employees workers at the plant in 2009 due to a fall in construction activity in the market.
PCA issues award to Cemex Lyons cement plant
08 September 2016US: The Cemex Lyons Cement Plant has been recognised by the Portland Cement Association (PCA) with its 2016 Energy and Environment Award for Land Stewardship. Representatives from the Lyons, Colorado unit accepted the award on 31 August 2016 at the PCA’s annual Fall Congress meeting in Chicago.
The Lyons plant’s land-stewardship program for 2015 included limiting invasive plants and weeds and cultivating native plants to attract local wildlife and migrating birds, an effort that was launched at the facility in 2008. The plant also optimised its quarry roads to limit fugitive dust emissions and improve energy efficiency and employee productivity. The plant has previously been recognised by the Wildlife Habitat Council for its diverse environmental programs, including increasing areas dedicated to pollinator plantings and native species to 2.33 acres. On Earth Day, plant employees installed bee boards, bat houses and bird nests.
“Cemex is committed to sustainable practices throughout our operations and to building a better future for our communities through environmental initiatives. We are very proud of our Lyons team and their commitment to land stewardship, and it’s truly an honour to be recognized by the PCA for those efforts,” said Cemex USA president Ignacio Madridejos.
The PCA created the Energy & Environmental awards program in 2000. The PCA awards are given annually to recognise environmental and community relations efforts by cement plants throughout North America. The program is open to any cement manufacturing plant in the region.
Titan America Roanoke and Pennsuco plants earn continuing Energy Star certification
05 September 2016USA: Titan America's Roanoke Cement has earned the US Environmental Protection Agency's (EPA's) Energy Star certification for the tenth consecutive year and Titan's Pennsuco plant celebrates nine years of certification. To qualify for Energy Star, Titan's plants must perform in the top 25 percent of cement plants in the US for total energy efficiency (thermal and electrical) and meet strict environmental performance levels set by the EPA.
To further its efforts, Titan America has implemented a series of processes that enable Titan employees to maintain and improve energy performance across the entire enterprise. The Titan Energy Management System (EnMS), operating at Titan's three largest facilities (the Roanoke Cement plant in Virginia and both the cement plant and aggregate plant located in Medley, Florida) enables employees to systematically manage total consumption of all energy sources. This program, which addresses the energy performance standard ISO 50001, also ensures that the company's business operations are as efficient as possible, increases plant reliability and supports Titan's operational goals.
"At Titan America we are passionate about continuously developing efficient, sustainable operating practices," said Bill Zarkalis, Titan America's CEO. "Titan's EnMS program is an excellent example of innovation and of our commitment to make our business operations more efficient, while contributing as much as we can to make the locations in which we operate better places to live and work. We are very proud of this recognition, but we do not take it for granted. We are poised to continue our efforts."
"We are extremely proud of the Energy Star certifications we have earned over the past decade," commented George Pantazopoulos, Senior Vice President of Titan America Cement Operations and Corporate Engineering. "We also consider this milestone to be a catalyst for reinvigorating our teams and increasing our efforts. We have no doubt that we can gain further efficiencies in our manufacturing processes using the EnMS program."
Roanoke Cement has applied electricity management best practices during the previous 18 months and has delivered an 11% reduction in electricity consumed per tonne of cement produced. Additionally, the company has partnered with electrical utilities to reduce their contribution to peaks on the power grid due to demand management and demand response. These efforts ensure that inefficient peak generators owned by the utilities can remain offline during times when homeowners and businesses place a large demand on the electrical grid.
"The EnMS program is scheduled to be fully operational by 3Q 2017," reported Chris Bayne, Titan America's Corporate Energy Manager and director of the EnMS program. "We organised teams to oversee the program at our three main facilities. Roberto Duran will lead the Pennsuco Aggregates Plant team, Sonny Cruz will lead the Roanoke Cement Plant team and Diwakar Mishra will lead the team at Pennsuco Cement." Bayne also noted that the implementation teams would routinely incorporate energy management practices into the daily operations of Titan's manufacturing facilities. Titan is targeting a reduction in total energy consumption of 3%, year-over-year.
Energy Star was introduced by EPA in 1992 as a voluntary, market-based partnership to reduce greenhouse gas emissions through energy efficiency. Today, the Energy Star label can be found on more than 60 different kinds of products as well as new homes and commercial and industrial buildings that meet strict energy-efficiency specifications set by the EPA. Over the past twenty years, American families and businesses have saved a total of nearly $230 billion on utility bills and prevented more than 1.7 billion metric tons of greenhouse gas emissions with help from Energy Star.
Cemex amends US asset sale to Grupo Cementos de Chihuahua
30 August 2016US: Cemex and Grupo Cementos de Chihuahua (GCC) have amended the terms of a sale of assets to GCC previously announced in early May 2016. The assets being sold by an affiliate of Cemex to an affiliate of GCC in the US have changed and mainly consist of Cemex’s cement plant in Odessa, Texas, two cement terminals and the building materials business in El Paso, Texas and Las Cruces, New Mexico. Cemex’s cement plant in Lyons, Colorado and cement terminal in Florence, Colorado are no longer part of the assets being sold to GCC. Upon closing of this transaction GCC will pay Cemex US$306m.
The sale is subject to customary closing conditions, including approval from the US competition authorities and GCC’s shareholders, as well as GCC obtaining financing to purchase the assets. The deal is expected to be completed before the end of 2016.
North with Cementos Argos
23 August 2016Cementos Argos’ deal to buy the Martinsburg cement plant in West Virginia from HeidelbergCement makes a lot of sense. After all, the Colombian-based cement producer has seen its US cement assets perform well so far in 2016 with a cement sales volumes increase of 29% year-on-year to 1.99Mt and an overall sales revenue boost of 19.7% to US$700m. Compare that to the challenges the company has faced so far this year on its home turf in Colombia. There, cement sales volumes fell by 15.5% to 2.47Mt and sales revenue fell slightly to US$465m.
Argos has picked up the Martinsburg cement plant and eight cement terminals in the surrounding states for US$660m. The sale was mandated by the US Federal Trade Commission as one of the conditions of HeidelbergCement’s purchase of Italcementi including its US subsidiary Essroc, the current owner of the plant.
Symbolically, the purchase takes Argos right up to the Mason–Dixon line, the old survey line sometimes used to describe the dividing line between the so-called ‘north’ and ‘south’ in the US. The cement plant is south of the line in West Virginia but some of the cement terminals are firmly in the north-east. Outside of the company’s home turf in Colombia it has a maritime presence around the Gulf of Mexico. Although Martinsburg is inland, the new terminals in Norfolk, Virginia and Baltimore push Argos’ distribution network up the east coast. This could potentially push Argos into conflict with the subject of last week’s column, McInnis Cement, a Canadian cement plant under construction with eventual aspirations to sell its cement to the US.
Back in the US specifically the new plant will bring Argos’ total of integrated cement plants to four, joining Roberta in Alabama, Newberry in Florida and Harleyville in South Carolina. All together the producer will have a production capacity of around 6Mt/yr in the US following the acquisition. Back in 2014 when Global Cement visited Martinsburg the plant was distributing its cement about 60:40 via truck and rail. At that time the plant was shifting cement in an area from central Ohio eastwards to western Pennsylvania and south to southern Virginia, as well as in North Carolina.
Argos has paid US$300/t for Martinsburg’s production capacity of 2.2Mt/yr. As ever determining the cost of the terminals proves difficult. This compares to the US$267t/yr that Grupo Cementos de Chihuahua (GCC) paid to pick up two plants from Cemex in May 2016 or the US$375/t that Summit Materials paid Lafarge for a cement plant and seven terminals in July 2015. Previous Argos purchases in the US were around US$220 – 250/t for deals with Lafarge and Vulcan in 2011 and 2014 respectively. It is also worth considering that Essroc upgraded Martinsburg significantly in 2010 to a dry-process kiln and that the site has a waste-to-solid-fuel plant from Entsorga due to become operational in 2017.
The purchase of Martinsburg by Argos seems like an obvious move. It predicts a compound annual growth rate of 5.4% for cement consumption in the American states it operates within between 2016 and 2020. However, this may be optimistic given that the Portland Cement Association’s chief economist Ed Sullivan has downgraded his consumption forecasts for the US as a whole to 3.4% from 5% as he waits for the recovery to really kick in. The southern US states have also recovered faster since a low in 2009 than the northeastern ones. The purchase marks a new chapter in Cementos Argos’ expansion strategy