Displaying items by tag: West Virginia

US/Colombia: Colombia-based Cementos Argos is carrying out expansions to two cement plants in South Carolina and West Virginia. While not specifically named, these would appear to be the 1.1Mt/yr Harleyville and 1.8Mt/yr Martinsburg cement plants. The producer says that the expansions will increase its cement capacity in the eastern US by 450,000t/yr.

Additionally, Cementos Argos plans to expand the capacity of its Cartagena cement terminal in Colombia by 35% to 4Mt/yr. The producer says that this will serve as a platform for subsequent growth. It is targeting the US market, where an expansion is also underway at its import facility in Houston, Texas. The Cartagena terminal achieved its current capacity following a recent US$42m expansion.

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: Lehigh Cement and Argos USA have agreed to pay a US$1.5m fine for alleged Clean Air Act violations at the Martinsburg cement plant in West Virginia. Argos has owned the plant since December 2016 and Lehigh Cement was the previous owner. The violations occurred from 2013 to 2016. Neither Lehigh Cement nor Argos USA admitted liability for the alleged violations as part of the settlement.

The Environmental Protection Agency (EPA) cited the companies for various Clean Air Act violations based on responses to EPA information requests and data collected and reported under the plant’s permit. These included exceeding particulate matter emissions, non-compliance with opacity testing, failing to comply with requirements for operating a kiln with dioxin/furan emission limits, failing to perform required stack testing on a kiln’s exhaust in a timely manner and other violations.

US: Mississippi Lime Company plans to ‘significantly’ increase enhanced hydrated lime capacities at its Weirton, West Virginia and Verona, Kentucky plants. It also manufactures hydrated lime products from its Ste Genevieve, Missouri, Vicksburg, Mississippi and Chester, South Carolina operations. The company produces high calcium quicklime, hydrated lime and calcium carbonate.

US: A fire at Argos USA’s Martinsburg cement plant in West Virginia is being investigated. The fire followed an explosion at the site on 25 November 2018, according to the Herald-Mail newspaper. A spokesman for the cement producer said that the incident occurred in the coal-mill dust-collector bag house. Although damage estimates are not available yet, repairs following the fire include replacing blast doors. No injuries have been reported. Production at the plant has been suspended while the cause of the fire is investigated.

US: LafargeHolcim has upgraded its terminal at Weirton in West Virginia following a 10-year furlough. The site will be used to store and distribute oil well cement products for markets in the Appalachian region.

“We have made a significant investment in the Weirton terminal in direct response to the growing needs of our energy industry customers. Demand for access to our oil well cement has increased dramatically, yet existing distribution channels had grown congested,” said Jamie M Gentoso, chief executive officer (CEO) of US Cement operations.

The upgrade project included expanding the site, building a new water-based off- loading facility and restoring its silos. During the work LafargeHolcim collaborated with the Army Corps of Engineers, the West Virginia Department of Commerce, the Business Development Corporation of the Northern Panhandle and the local community. In addition, the company worked closely with the West Virginia Department of Environmental Protection and Environmental Protection Agency to assure all operating and environmental permits were in place. As part of this collaboration, LafargeHolcim has also been granted additional funding for surrounding site infrastructure improvements and build-out through the conditional grant program known as the West Virginia Industrial Access Road Program (IAR).

US: Mississippi Lime Company has upgraded its Wierton plant in West Virginia to produce high reactivity hydrated lime (HRH). The product is used in the Dry Sorbent Injection industry for control of acidic gases at coal-fired boilers and other industrial processes that generate acidic gases as by-products. Mississippi Lime also produces HRH at its plants in Ste Genevieve in Missouri, Verona in Kentucky and Chester in South Carolina.

US: The Federal Trade Commission (FTC) has approved an application from HeidelbergCement and Italcementi to sell the Essroc cement plant in Martinsburg, West Virginia, eight cement terminals in the mid-Atlantic region and related assets to Argos USA, a subsidiary of Cementos Argos. The divestiture was required by the FTC’s August 2016 final order settling charges that the US$4.2bn merger of HeidelbergCement and Italcementi would be likely to harm competition in five regional markets for cement in the US. The Commission vote to approve the divestiture was 3-0.

US: The Federal Trade Commission (FTC) is accepting public comments on an application from HeidelbergCement and Italcementi to sell the Essroc Martinsburg cement plant in West Virginia. The divestment is required by the FTC as part of the requirements of the acquisition of Italcementi and its subsidiary Essroc, by HeidlebergCement. The companies have sought permission from the FTC to sell the Martinsburg plant to the US division of Colombia’s Cementos Argos.

The Commission will decide whether to approve the proposed divestiture after expiration of a 30 -day public comment period. Public comments may be submitted until 24 October 2016.