Displaying items by tag: California

US: Eagle Materials has completed its acquisition of Martin Marietta's cement import and distribution business in Northern California. The business is centred on the Stockton cement terminal in San Joaquin County. Eagle Materials hopes that the new business will enable it to extend and strengthen its reach across its heartland US cement sales network.

President and chief executive officer Michael Haack said "Our Nevada Cement operations have long-standing customer relationships in Northern California, and this acquisition will uniquely position us to better serve these and new customers with complementary imported product. Our entire cement system is currently 'sold out,' and this acquisition will enable us to more actively participate in the strong US demand environment."

US: Taiheiyo Cement says that its subsidiary CalPortland has terminated its deal to buy the Tehachapi cement plant from Martin Marietta Materials. It has blamed the situation on the two parties being unable to “timely obtain the necessary approval by the US Federal Trade Commission.” The deal was originally announced in August 2022 with CalPortland agreeing to buy the integrated plant in California and two terminals.

US: Mitsubishi Cement Corporation has reportedly abandoned its planned construction of a cement terminal at the Port of San Diego in California. The Union-Tribune newspaper has reported that the cement producer failed to produce a plan involving electric vehicle use for cement deliveries to the facility. Board of Port Commissioners rejected the company’s previous terminal proposal in 2020 because of its involvement of diesel-powered cement trucks.

US: Purebase and Fortera have signed a non-binding agreement to build a commercial plant at Purebase’s headquarters in Ione, California. The companies are working towards a definitive agreement to build a plant using Fortera proprietary recarbonation process that uses captured CO₂ and mineralises it into a secondary cementitious material.

Scott Dockter, the chairman, and chief executive officer of Purebase, said, “We believe that a strategic partnership with Fortera would put Purebase on a fast-track to bring a lower carbon product to market.” He added, “We believe Fortera has developed a unique solution to reduce carbon emissions in cement, and it will have the advantage of using Purebase’s mineral resources and location in Ione, California which is ideally located in northern California near major ports which can effectively serve the western-US markets and abroad.”

Purebase acquires, develops, and markets minerals for use in agriculture, construction, and other specialty industries.

US: Lehigh Hanson plans to stop cement production at its integrated Permanente plant near Cupertino in California. The subsidiary of Germany-based Heidelberg Materials plans to use the site as a distribution centre and to continue some quarry work, according to the Mercury News newspaper. The cement plant was originally opened in 1939 but it stopped clinker production in 2020.

US: Total US cement shipments grew by 4% to 52.4Mt in the first half of 2022 from 50.4Mt in the same period in 2021. Data from the United States Geological Survey (USGS) shows that local shipments and imports rose by 3.5% to 44.1Mt and 7% to 8.31Mt respectively. The largest sources of imports of cement and clinker were Turkey at 4.57Mt, Canada at 2.19Mt, Mexico at 1.28Mt, Greece at 1.23Mt and Vietnam at 0.94Mt. The largest cement producing states in the reporting period, in descending order, were Texas, California and Missouri.

US: Taiheiyo Cement subsidiary CalPortland has concluded a deal with Martin Marietta Materials for the acquisition of the latter's Tehachapi cement plant in California for US$250m. The deal also covers two business centres.

Taiheiyo Cement said "We expect the US cement business to continue to have strong demand from the private sector in view of projected economic growth and chronic housing shortages going forward. Additionally, we expect the infrastructure demands to accelerate as a result of the passing of the more than US$1tn infrastructure investment bill by the US Congress. Further, California is likely to have even greater growth because it will host the 2028 Los Angeles Olympics. The planned acquisition of Martin Marietta Materials' assets is intended to ensure that we capture this increased demand. It is an essential element in maximising our future corporate value."

CalPortland completed its acquisition of the Redding cement plant from Martin Marietta this week. As previously announced the transaction involved the integrated cement plant in northern California, related cement terminals and 14 ready mixed concrete (RMC) plants also in the state. However, CalPortland’s parent company Japan-based Taiheiyo Cement revealed this time round that it is considering buying the Tehachapi cement plant from Martin Marietta too. It says it has some sort of preferential purchase agreement in place, although a final decision is yet to be made.

If CalPortland and Taiheiyo Cement do end up buying the Tehachapi plant as well as Redding then it will mark a fairly quick turnaround of owners. HeidelbergCement subsidiary Lehigh Hanson announced that it was selling up assets in its US West region to Martin Marietta for US$2.3bn in May 2021. The deal was completed by October 2021. Then, CalPortland said it was buying the Redding plant in March 2022. From an outside perspective it was not clear what Martin Marietta might have had planned for its new assets. Over three quarters of Martin Marietta’s revenue in 2021 came from its Aggregates and RMC products. However, it is also a prominent regional US cement producer with two plants in Texas and two plants in California, along with associated terminals. So, building up its cement business in California didn’t seem unfeasible. Now, as can be seen, it is likely to be sticking to its primary focus of aggregates and RMC. It is also worth noting that California has some of the stricter CO₂ reduction policies in the US with a 40% reduction target for 2030 (compared to 1990 levels) and a local emissions trading scheme that started in 2013.

Looking at the local cement production base in California, the latest development with the former Lehigh Hanson plants shows the changing situation since the subsidiary of HeidelbergCement left the region. Beforehand, Cemex, Lehigh Hanson and CalPortland each had a similar clinker production capacity. Then, Martin Marietta took the lead and now CalPortland looks set to become the frontrunner if it buys Tehachapi. With the Redding deal completed it now operates three integrated cement plants in California and one in Arizona. Alongside this it runs 15 terminals in Alaska, Arizona, California, Nevada, Oregon and Washington – and – two terminals in Alberta and British Colombia in Canada. The Redding plant is also a distinctive addition to its portfolio as it is further north than the other clinker units.

United States Geological Survey (USGS) data shows that cement shipments to California grew by 5% from 10.05Mt in 2019 to 10.57Mt in 2021. So far in 2022, shipments to the state rose by 3.4% year-on-year to 3.56Mt for January to April 2022 compared to 3.44Mt in the same period in 2021. However, clinker production fell by 5% to 8.94Mt in 2021 from 9.45Mt in 2019. This trend seems to have continued into 2022 with a 9% fall to 2.54Mt for January to April 2022 compared to 2.81Mt in the same period in 2021. Despite this, California remained the second largest OPC and blended cement producer in the US in April 2022. In its Western US Regional Outlook in May 2022, the Portland Cement Association (PCA) forecast that the Pacific region of the US (including California) will experience flat growth in cement consumption in 2023 due to a slowdown in residential consumption. However, consumption is then expected to bounce back sharply in 2024 as the effects of the infrastructure bill take effect.

This suggests that CalPortland has picked an uncertain time to start buying cement plants in California. Yet only last year, in 2021, Cemex began restarting production at a previously mothballed cement plant in Mexico to supply the south-west US. Alongside all of this, environmental regulations are tightening. However, the key difference between Martin Marietta and CalPortland is that the latter is owned by Japan-based Taiheiyo Cement, which is more cement-focused than the aggregate and concrete oriented Martin Marietta. No doubt Taiheiyo Cement’s intention to become more international also played a part in its decision making. If CalPortland does decide to buy Tehachapi then this may give observers an idea of how much further its ambitions go.

US: CalPortland has converted production at the 1.3Mt/yr Mojave cement plant in California to its Advancement HS, a Portland limestone cement (PLC) product. The plant will reduce its CO₂ emissions by 10% on a per ton basis. The company said the move supported the Portland Cement Association’s Roadmap to Carbon Neutrality and the industry’s overall efforts to address climate change.

US: The California Department of Transportation (CalTrans) has approved the use of Portland limestone cement (PLC) in its projects. The California Nevada Cement Association (CNCA) says that the move has the potential to eliminate 25,500t/yr of CO₂ emissions.

The CNCA plans to achieve cement and concrete carbon neutrality by 2045 through three priority actions. These are investment in promising and critical long-term technologies (crucially carbon capture, utilisation and storage (CCUS) technologies), increased alternative fuel (AF) substitution and the acceptance of PLC for CalTrans projects. Thus, the latest CalTrans decision marks the establishment of one pillar of the CNCA’s ambitious plan for net zero.