Displaying items by tag: US
It's been an expensive week for the US cement industry in terms of environmental infringements. First, the Environmental Protection Agency (EPA) announced that Cemex has agreed to pay a US$1m fine for nitrogen oxide (NOx) emissions at its Lyons cement plant in Colorado. Then Lehigh's Glen Falls plant was fined US$50,000 by the state of New York for polluting the Hudson River.
With new NESHAP and MACT environmental regulations from the EPA in place for 2013, one thought that occurs is how long it will take for the new standards to sink in. For example, the lead-time for both of the cases we have reported upon this week was several years at least. The complaint against Cemex referred to a period from 1997 to 2000, when the plant was operated by Southdown. Lehigh's fine arose from an inspection carried out in April 2010.
The EPA hopes that its latest changes will cut US cement industry emissions of mercury by 93%, hydrochloric acid by 96%, particulate matter by 91% and total hydrocarbons by 82%. After years of haggling between the Portland Cement Association and the EPA, even the latest round of regulations received a reprieve until September 2015, with the option to ask for a year's extension. So, if the lead times from the Cemex and Lehigh fines are indicative, contravening cement plants might not be facing fines relating to the current NESHAP or MACT regulations until around 2023 - 2026. Of course by this time, the regulations governing emissions will probably have changed again.
Given the shifting backdrop of US environmental regulations, many of the pertinent environmental presentations at last week's IEEE-IAS/PCA Cement Conference in Orlando, Florida, were of great help to US cement producers. Among these were two presentations by John Kline, who firstly gave an overview on the hot-topic of mercury emissions from cement kilns. He singled out the difficulties in comparing cement kilns to power plants in terms of mercury as cement plants are far more complicated, with more input materials. Kline also delivered a second presentation comparing selective catalytic reduction (SCR) for removal of NOx to selective non-catalytic reduction (SNCR) in cement plants. Those at the conference who attended Carrie Yonley's presentations were given a helpful and concise review of the often-conflicting regulations for cement plants, which she bravely attempted to give in just 16 minutes.
Despite the challenges of adhering to new environmental regulations, the mood at the 55th IEEE-IAS/PCA Cement Conference was one of general optimism for the future of the US cement industry. A full review of the conference can be found here.
Lehigh fined US$50,000 for historic pollution
24 April 2013US: Lehigh Northeast Cement has been fined US$50,000 by the state of New York for pollution violations relating to historic cement manufacturing at the company's plant in Cementon, also known as Smith's Landing in the state of New York. The site is currently a cement grinding plant.
In assessing the fine, the Department for Environmental Conservation (DEC) agreed to suspend US$10,000 from the total if Lehigh submits clean up and repair plans in the summer of 2013. In 2008, Lehigh was fined US$50,000 for similar problems with cement waste leaking through groundwater into the river from two other sites nearby. The company did not meet all clean-up goals set at that time.
Under a settlement with DEC signed on 8 April 2013 by DEC Regional Director Gene Kelly, Lehigh agreed to submit plans to clean up the sites and halt future leaks. The company also agreed to start using 'low-mercury' water treatment chemicals in its wastewater treatment system and also to begin checking its wastewater for acidity and lead levels.
In return, the company will have additional time to reach river pollution limits set in a DEC pollution permit issued in June 2011. Lehigh had initially contested those limits, but agreed under the settlement to drop its objections.
Lehigh said that historically some of the leaky sites had been capped, while others had not been using 'then-approved or accepted procedures.' The company added that it was working 'to contain and treat the leachate, under guidance and approval from DEC,' including installation of collection basins, and a pump-and-treat system to lower acidity of water before it reaches the river.
Cemex agrees to pay US$1m fine for Lyons cement plant
22 April 2013US: Cemex has agreed to pay a US$1m fine and to install controls to decrease its emissions of nitrogen oxide (NOx) at its Lyons cement plant in Colorado to resolve alleged violations of the Clean Air Act (CAA). The Environmental Protection Agency (EPA) had accused Cemex of illegally modifying its Lyons plant in a way that increased the amount of NOx the facility released.
"Today's settlement will reduce harmful emissions of nitrogen oxides, which can have serious impacts on respiratory health for communities along Colorado's Front Range," said Cynthia Giles, assistant administrator for EPA's Office of Enforcement and Compliance Assurance. She added that this could improve visibility at the nearby Rocky Mountain National Park.
The US Department of Justice, on behalf of the EPA, filed a complaint against Cemex alleging that between 1997 and 2000 the company unlawfully made modifications at its Lyons plant that resulted in significant net increases of NOx and particulate matter (PM) emissions. The complaint further alleges that these increased emissions violated the CAA's Prevention of Significant Deterioration and Non-Attainment New Source Review requirements, which state that companies must obtain the necessary permits prior to making modifications at a facility and install and operate required pollution control equipment if modifications will result in increases of certain pollutants.
As part of the settlement, Cemex will install 'Selective Non-Catalytic Reduction' (SNCR) technology at its Lyons facility, which is an advanced pollution control technology designed to reduce NOx emissions. This will reduce its NOx emissions by approximately 870 to 1200t/yr. The initial capital cost for installing SNCR technology is approximately US$600,000 and the cost of injecting ammonia into the stack emissions stream, a necessary part of the process, is anticipated to be about US$1.5m/yr.
EPA issues revised cement plant emissions rule
14 February 2013US: The US Environmental Protection Agency (EPA) has issued a rule called 'National Emission Standards for Hazardous Air Pollutants for the Portland Cement Manufacturing Industry and Standards of Performance for Portland Cement Plants.'
The rule, published in the Federal Register on 12 February 2013 by Lisa P Jackson, US EPA Administrator, states, "On 18 July 2012 the EPA proposed amendments to the National Emission Standards for Hazardous Air Pollutants for the Portland Cement Manufacturing Industry and the Standards of Performance for Portland Cement Plants. This final action amends the national emission standards for hazardous air pollutants for the Portland cement industry."
"The EPA is also promulgating amendments with respect to issues on which it granted reconsideration on 17 May 2011. In addition, the EPA is amending the new source performance standard for particulate matter. These amendments promote flexibility, reduce costs, ease compliance and preserve health benefits."
"The amendments also address the remand of the national emission standards for hazardous air pollutants for the Portland cement industry by the United States Court of Appeals for the District of Columbia Circuit on 9 December 2011. Finally, the EPA is setting the date for compliance with the existing source national emission standards for hazardous air pollutants to be 9 September 2015."
Holcim (US) appoints Filiberto Ruiz president and CEO
13 February 2013US: The board of directors of Holcim (US) has appointed Filiberto Ruiz to serve as the company's president and chief executive officer. Ruiz's appointment also includes serving as president and chief executive officer of Aggregate Industries US, a Holcim Group Company.
Additionally, Bernard Terver, currently a member of the Holcim Ltd Executive Committee, formerly president and chief executive officer of Holcim (US) and Aggregate Industries US, has been named chairman of the board.
Ruiz has served as the company's deputy chief executive officer since August 2012 and has been with the company for more than 26 years, holding a range of general management, manufacturing and sales and marketing positions both within and outside of the US.
Terver has been president and chief executive officer of Holcim (US) since October 2008 and Aggregate Industries US since 2010. He has more than 30 years' experience in the cement and mineral components industry both in the US and internationally.
Eagle Materials revenue up by a third as cement sales rise
07 February 2013US: The US-based building materials provider Eagle Materials has reported financial results for the third quarter of the 2013 fiscal year, which ended on 31 December 2012. These showed that its revenue was up by 33% compared to the same period of the prior fiscal year. Earnings per share were up by 429% year-on-year.
Eagle's third quarter sales volumes improved across all business lines, with sales prices improving in all but one of it business lines. Operating earnings from its cement operations for the quarter came to US$16.6m, a 7% increase from the same quarter a year ago. Cement revenues for the quarter, including joint venture and inter-segment revenues, totalled US$74.9m, 22% greater than the same quarter of the previous year. Cement sales volumes for the quarter were 0.82Mt, 17% above the same quarter a year ago.
On November 30, 2012, Eagle completed its previously announced acquisition of Lafarge North America's Sugar Creek, Missouri and Tulsa, Oklahoma cement plants, as well as related assets. Eagle used cash proceeds from an equity offering completed on 3 October 2012, along with borrowings under its bank credit facility to fund the purchase.
US: Eduardo Garcia has joined Loesche America to support the sales and marketing team for the South American market.
Garcia holds a bachelor's degree in mechanical engineering and a MBA with a
concentration in supply chain management. His prior experience has been within the cement industry with Cemex in Venezuela and more recently for Holcim Group Support in the US. In his previous positions Garcia's responsibilities ranged from contract negotiation of major capital projects, to the operation and maintenance of cement plants and cement marine terminals.
At Loesche America Garcia will responsible for aiding in the definition and execution of sales and marketing strategies to further increase the sales potential in South America. Garcia joined Loesche America in 2012.
Looking past the cliff - rebuilding the US cement industry
23 January 2013Forget Europe! The US cement industry is back in the game and could be looking forward to growth of 8.1% in cement consumption, according to a new forecast from the Portland Cement Association (PCA). This compares to a growth of 6% in consumption the PCA predicted in the autumn of 2012 in the shadow of the US 'fiscal cliff'.
The new forecast is based upon PCA research that estimates that total residential housing starts will reach 954,000 units in 2013. To give an idea of how badly the 2007 financial crisis hit the US residential housing market, according to US Census Bureau data in 2005 a total of 2,068,300 total housing start units were recorded. In 2007 this fell to 1,355,000 units. By 2009 this levelled out at 554,000, the lowest figure since at least 1960. A loose comparison with Spanish cement consumption in 2012 is worth noting here, when it too hit levels not seen since the 1960s.
The PCA's report predicts US cement consumption of 78.5Mt in 2013. As we pointed out in our overview of the US Cement Industry in the May 2012 issue of Global Cement Magazine, in 2006 the cement consumption of the United States was 122Mt. When the financial crisis hit, consumption nearly halved to 67Mt in 2009. The prediction for 2013 is a great improvement but the levels of 2005 are still a long way off. Currently, the Global Cement Directory 2013 places US cement production capacity at 114Mt/yr.
Other encouraging signs for the US cement industry include the sale of two Lafarge plants to Eagle Materials in September 2012 and less industry anxiety over US Environmental Protection Agency (EPA) emissions legislation. Lafarge choosing to sell plants in Missouri and Oklahoma with the US market starting to recover suggests that the French producer may have had its doubts. Yet Eagle Materials certainly thought the plants were worth the price tag of US$446m.
In summary the signs are broadly positive for the US cement industry at the start of 2013 although the dizzy heights of consumption of the early 2000s seem a long way off. US cement producers may take comfort from recent news stories from Beijing about efforts to contain air pollution from a cement plant. Hopefully for them it will be a case of 'been there, done that'.
PCA reveals improved forecast for 2013
21 January 2013US: Improving underlying economic fundamentals, the existence of large pent-up demand balances and the diminishment of economic 'fiscal cliff' uncertainty will combine to result in strong growth rates in 2013 and an increase in cement consumption, according to a new forecast by the Portland Cement Association (PCA).
According to the latest forecast there will be 8.1% growth in cement consumption in 2013 compared to 2012, significantly higher than the tepid growth projected in the PCA's autumn 2012 report. The upward revisions reflect adjustments made in light of the recent fiscal cliff accord, recognition of stronger economic momentum and markedly more optimistic assessments regarding residential construction activity. The January 2013 report marked 2012 consumption at 78.5Mt, an 8.9% increase compared to cement consumption in 2011.
"Growth in 2013 cement consumption will be largely driven by gains in residential construction," said PCA Chief Economist Ed Sullivan. "Housing starts should reach nearly 950,000 units, with single family construction near 700,000 starts during 2013. We see starts hitting the one million mark in 2014 or 2015."
Sullivan did caution, however, that the first quarter of 2013 would actually show declines compared to the same period in 2012. "It is important to point out that this potential decline in first quarter growth rates does not signal a weakening in market fundamentals, but rather a hangover from favourable 2012 weather conditions," said Sullivan. "Stronger gains in cement consumption growth are expected during the second quarter."
The accelerated consumption predicted during the second half of 2013 should carry into the following year, when the PCA projects a cement consumption increase of 8.3%. The PCA also upwardly revised its long-range projections for 2015-2017. Annual growth during that period is expected to be as high as 9.2%/yr.
Gregory Scott becomes president and CEO of PCA
09 January 2013US: Gregory M Scott has become the president and chief executive of the Portland Cement Association (PCA), effective from 2 January 2013. Scott joined the PCA in January 2012 as the senior president of government affairs and was promoted to president in September 2012.
Scott holds a background in trade association leadership with legislative campaigns on federal transportation, environmental and energy issues. Most recently he served as executive vice president and general counsel for the National Petrochemical and Refiners Association (NPRA) in Washington, DC. Prior to joining the NPRA, Scott served as vice president of National Strategies, Inc, a trade association representing CEOs of Fortune 100 firms on corporate finance and tax issues.
He began his career serving on the staff of Senator Timothy E Wirth. From 1991-2008 Scott was a partner/member of Kelley Drye Collier Shannon, where he gained extensive expertise in petroleum refining and motor fuel marketing as well as legislative and regulatory issues.
Scott received his Bachelor of Arts degree from Colorado College in Colorado Springs and a law doctorate from the American University's Washington College of Law in Washington, DC.