Displaying items by tag: US
Environmentalists could sue over EPA cement standards
07 January 2013US: Washington-based news agency InsideEPA has reported that environmentalists may be preparing to sue the US Environmental Protection Agency (EPA) over its revised emissions limits for the cement sector because the rules largely adopt weaker limits and extended compliance deadlines that had been sought by the industry. The agency says that critics warn that the ruling will create more toxic air emissions and criteria pollutant emissions that pose significant risks to public health.
"By the EPA's own numbers, that delay will cause between 1920 and 5000 Americans to die prematurely from exposure to cement plants' soot pollution. The rules will also allow cement plants to pump an additional 15,000kg of mercury into the environment," said one environmentalist quoted by Inside EPA, citing the EPA's data.
The EPA had faced a 20 December 2012 consent decree deadline to issue the rules, which revise its national emission standards for hazardous air pollutants (NESHAP) air toxics limits and new source performance standards (NSPS) criteria pollutant controls for the sector. The rules address a cement sector push for reconsideration of the NESHAP and NSPS as set in 2010, in addition to a federal appeals court ruling partly remanding the 2010 rulemaking to EPA.
In June 2012 the EPA proposed to revise the rules by weakening the particulate matter (PM) limit for new and existing kilns. It also proposed to extend the compliance deadline for the air toxics standards from 2013 to 9 September 2015. Both measures were sought by the cement sector, which argued that the 2010 rules were too stringent.
Environmental groups, including Earthjustice and the Natural Resources Defense Council, filed comments criticising the proposal as unlawfully weak under the Clean Air Act, and opposing the changes.
It now looks likely that the revised cement rules will prompt a lawsuit from these and other environmental groups given their warnings in written comments that the proposed version was unlawful under the Clean Air Act.
In contrast, the Portland Cement Association (PCA) President Greg Scott has welcomed the rules, saying that they, "Will provide PCA members and the cement industry the additional time needed for compliance with the revised standards. Such time is essential to properly complete the planning, engineering, permitting, testing and construction of the various new technologies that will be necessary to implement the revised standards."
He added that the rules, while now achievable, were still 'extremely challenging.' mitigating fears that the industry could sue over their implementation.
New board member for Monarch Cement
12 December 2012US: On 7 December 2012, The Monarch Cement Company elected Steve Sloan to serve on the board effective immediately to fill the unexpired term of independent director Richard N Nixon, whose resignation was effective 31 October 2012.
Sloan, aged 51, moves to the board of the cement firm with 17 of years experience in the aggregate and ready-mixed concrete industry. He has served for many years as the President and CEO of Midwest Minerals, Inc, headquartered in Pittsburg, Kansas. His current responsibilities include oversight of the financial, production, sales and regulatory affairs of Midwest Minerals' ready-mixed concrete plant and 19 aggregate quarry operations.
Monarch said that Sloan has the experience and skills to provide exceptional insight and judgment relative to corporate governance, corporate strategy, budgeting, banking, financial reporting, administrative functions and risk management.
Sloan will be a non-employee member of the board and will participate in the board's compensation policy and practices for non-employee directors. His term as an independent Class I Director will expire at the Annual Meeting of Shareholders on 9 April 2014.
Has MACT been sent for review?
12 December 2012US: The US Environmental Protection Agency (EPA) has sent final revisions to its Portland cement sector air toxics and criteria pollutant emissions rulemaking for White House Office of Management and Budget (OMB) pre-publication review, according to industry sources. This could indicate that the agency might meet a looming 20 December 2012 consent decree deadline for issuing the proposal.
Industry sources say that the rule, which will revise EPA's 2010 maximum achievable control technology (MACT) standards for air toxics emissions and a related new source performance standard to cut criteria pollutants, was received at OMB either on 4 or 5 December 2012, although an EPA spokeswoman declined to say whether the rule has been sent for OMB review. She only said that the agency was, "Working on the rule and (plans) to finalise by 20 December 2012."
The 20 December 2012 deadline stems from a settlement with the Portland Cement Association (PCA) and others in the industry to propose a revision to the rules, a response in part to industry petitions for reconsideration. Cement manufacturers claimed that the 2010 rules' particulate matter (PM) limits were not achievable, among other concerns.
In addition to addressing the reconsideration petitions and other aspects of the settlement, the rule will also respond to the US Court of Appeals for the District of Columbia Circuit's December 2011 ruling in PCA v EPA remanding the rule to the agency. The court found that EPA had failed to reconsider how a related incinerator air rule may potentially alter the cement rule's emission limits and that the agency failed to give 'sufficient notice' of its final standards for open clinker storage piles.
In the 22 June 2012 proposed revisions to the rule, the EPA proposed to weaken the particulate matter (PM) limit for existing kilns from 18.14g/t (0.04lb/t) of clinker to 31.75g/t (0.07lb/t) of clinker and the limit for new kilns from 4.5g/t (0.01lb/t) of clinker to 9.0g/t (0.02lb/t) of clinker. The EPA also proposed to extend the MACT's compliance deadline to 9 September 2015, saying, "We believe that this date would require compliance 'as expeditiously as practicable'" as required by the Clean Air Act.
Several environmental groups have argued that the revisions are unlawful, both exceeding the changes required by the DC Circuit's narrow ruling and watering down the cement standards for 'unknown reasons.' In comments made on 17 August 2012 regarding the proposed reconsideration the Natural Resources Defense Council, Earthjustice and other environmental groups said that the compliance delay is arbitrary and capricious given that EPA failed to adequately justify it. They added that the delay, "Will greatly exacerbate the harm that EPA already has caused and the suffering that ordinary Americans have had to endure," given that the EPA was supposed to update the cement MACT in 1997.
Update: The White House Office of Management and Budget (OMB) website shows that the OMB received the revised EPA MACT standards on 6 December 2012.
New continuous mercury gas emissions analyser from SICK
06 December 2012UK/US: In anticipation of tighter regulations for mercury emissions, SICK has developed the new MERCEM300Z mercury measuring system, a high-accuracy continuous-flow gas analyser for emissions down to the 0–45µg/m3 range from a wide range of combustion sources.
According to SICK, the patented gas spectrum of the MERCEM300Z rapid monitoring system offers superior performance with better long term, drift-free accuracy and lower running costs. The system requires minimal maintenance, is self adjusting and uses no chemical consumables.
"Awareness of the pollution caused by mercury and its compounds in combustion emissions is increasing in the UK and Europe," explained John Exford, Process Automation Division Manager, SICK (UK). "From power generation, cement kilns and hospital waste to crematoriums, the need to tighten up on mercury will be very important in 2013, when the EU will be following the United Nations lead in a world-wide treaty."
Mercury emissions are a particularly pertinent issue in the US cement industry, which will experience tighter mercury level controls in 2013.
New chairman for PCA
21 November 2012US: The Portland Cement Association (PCA) has announced that its board of directors has elected Cary O Cohrs, current president of American Cement Company, to be its new chairman during the association's autumn board meeting in Washington, DC. Cohrs succeeds Aris Papadopoulos of Titan America. John Stull, president and CEO of Lafarge North America Inc, was elected vice chairman.
"It is not only a pleasure but a great honour to serve as chairman of the board," Cohrs said. "We may be just beginning to emerge from the recession, but the prospects for cement and concrete are incredibly positive. With our shift in leadership from Skokie to Washington comes a greater focus on advocacy and government affairs. But we also must maintain our focus on national and local promotion initiatives and continue to drive gains in both market share and market size."
Cohrs has decades of experience in the cement industry. In 2000 he was appointed vice president of operations for Florida Rock Industries, where Cohrs also served as plant manager and construction manager. He also was a corporate project manager for Essroc Materials Inc, responsible for the installation and commissioning of capital projects in six cement plants and two grinding plants.
US cement consumption recovery threatened by fiscal cliff
21 November 2012US: A forecast from the Portland Cement Association (PCA) expects a 7.5% rise in cement consumption in 2012. However, the association says that these gains could be immediately erased in 2013 if the so-called US 'fiscal cliff' is not resolved. The fiscal cliff refers to tax increases of US$400bn and federal spending cuts of US$200m currently scheduled to come into effect on 1 January 2013.
If the US House of Congress resolves the fiscal cliff during its session in 2012, the PCA expects the economy to continue to grow and cement consumption in 2013 to increase by 6%. Adversely, even if Congress addresses the policies by the first quarter of 2013, this delay will cause significant economic harm and cause a 2.7% drop in cement consumption.
"Because we believe the odds for either outcome are even, we have adopted a forecasting approach that minimises up and downside risk," said Ed Sullivan, the chief economist at the PCA. "Our baseline scenario blends the two possible outcomes and projects a 1.8% increase in cement consumption in 2013."
Sullivan also reported that the longer the US Congress delays in addressing the fiscal cliff, the greater the adverse effect on economic growth and construction activity in particular. "If no action is taken by mid-2013, the country could be headed into a severe recession," said Sullivan.
According to the PCA report, cement consumption from 1 January 2012 to 30 September 2012 had increased by 10% compared to 2011, with 16 consecutive months of growth. Sullivan attributed this growth to the return of consumer confidence, a strong housing market and, most importantly, growth in employment.
Vulcan announces leadership appointments
07 November 2012US: Vulcan Materials Company has announced four personnel changes as part its process to develop its new leadership team for the future. Danny R Shepherd, aged 61, has been appointed to the position of executive vice president and chief operating officer. He was formerly the executive vice president of construction materials.
Robert A Wason IV, aged 61 and senior vice president - general counsel, will retire from Vulcan at the end of October 2013. He will now assume the role of senior advisor to the executive management team until that time.
Michael R Mills, aged 52 currently senior vice president - east region, has been appointed to the position of senior vice president, general counsel. He will report to Donald M James, chairman and chief executive officer. Mills will also serve as the company's corporate compliance officer.
John R. McPherson, aged 44 and currently senior vice president - strategic planning and business development, has been appointed to the position of senior vice president - east region. He replaces Michael Mills and will report to Danny Shepherd in his new role as executive vice president and chief operating officer.
Lehigh gets go-ahead for underground conveyor
24 October 2012US: The Carroll County Board of Commissioners has unanimously approved plans by Lehigh Cement Co. that will allow it to build an underground conveyor system from the company's New Windsor quarry to the plant in Union Bridge, Maryland.
The conveyor transportation systems are now allowed to be built in both the county's industrial zoning districts and the agricultural district. Conveyor systems will be prohibited in residential districts and in all other zoning types they will be listed as a conditional use, which means they would have to be approved by the county board of zoning appeals. Lehigh Cement has said that a conveyor system is the favoured method for transporting limestone from its quarry to the plant in Union Bridge, about 6km away, compared to other options like using rail or trucks.
Once completed the conveyer will carry about 12,000t/day of stone from the quarry to the plant. Lehigh needs to get material from the new quarry after its quarry in Union Bridge ends production in 2020. Lehigh says the conveyor will be 3m to 20m underground.
Eight years without LTI at Devil’s Slide
17 October 2012US: Holcim (US) has announced that its Devil's Slide facility in Morgan, Utah, has completed eight years without a lost time injury (LTI). "We congratulate the employees of our Devil's Slide facility for their accomplishment and untiring attention to safety," said Bernard Terver, president and chief executive officer of Holcim (US) Inc. "Our employees have shown great commitment to implementing our universal safety measures. We're proud of what they have accomplished and look forward to continued excellence."
How much is an American cement plant worth?
03 October 2012Eagle Materials has picked up two cement plants in the US from Lafarge with a combined capacity of 1.6Mt/yr for US$446m. The deal also included six distribution terminals, two aggregates quarries, eight ready-mix concrete plants and a fly ash business.
Following our column in August 2012 following an acquisition in India we decided to ask a similar question: how much are American cement plants worth?
Eagle's acquisition now increases its presence in the Midwest and South Central regions of the US, giving it a rough line of plants across the country nearly connecting Lake Michigan to the Gulf of Mexico. As shown in our industry report on the US between 2005 and 2011 cement consumption fell in both the states the plants are located in. Missouri's consumption fell by 45% from 2.82Mt to 1.56Mt, just above the US national average. By contrast Oklahoma's consumption only fell by 11%, from 1.6Mt to 1.43Mt, the fourth smallest decline in the country.
However, Eagle has demonstrated financial health in contrast to the US sector as a whole, reporting a 21% rise in total revenue in the quarter to 30 June 2012 and a 60% rise in operating earnings year-on-year in the quarter to 31 March 2012. The combined operations at the two plants generated about US$178m in revenue during the year ending in June 2012. By contrast Eagle Materials' revenue totalled US$529m during the same period. The plants' additional capacity will increase Eagle's total by about 60%.
Lafarge are still thinking big though, with the proviso that Eagle will supply certain Lafarge operations with cement for four to five years, as well as an agreement with a Lafarge affiliate to supply low-cost alternative fuels to the acquired operations. According to its 2011 annual report North America comprised 11% of Lafarge's cement sales. Lafarge's sales in the US remained flat in 2011. In that year the company's capacity was 12.8Mt with a 12% market share. This picture has started to change in 2012 with a reduced loss in earnings before interest, tax, depreciation and amortisation (EBITDA) in the first quarter followed by volume and sales increases of above 10% in the second quarter.
Back in June 2011 Cementos Argos picked up two plants from Lafarge in Roberta, Alabama and Harlyville, South Carolina for US$760m with a combined capacity of 2.7Mt/yr. As with the Eagle deal the sale included a number of peripheral assets including a clinker mill, cement mixer lorries and a marine port.
Cementos Argos recently put the world average at US$250m/t when publicising the expansion of its Rioclaro plant. The European Cement Association reports the figure at being above US$200m/t on its website. In August 2012, at the time of the potential CRH acquisition in India, the cost of Indian cement production capacity was placed at US$110/t-US$120/t.
Perhaps the question we should ask is how much is a US cement plant worth when it used to belong to Lafarge. Both the Cementos Argos sale and the Eagle deal worked out at US$280/t including all the ancillaries. The actual question we should ask is why has Lafarge chosen these specific plants to sell to a competitor in the US market?