California Cement Plant Reviews $300 Million Modernization Project

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). After two years of sitting on the shelf, owners of a large cement plant in California are shaking off the dust from a large cement plant modernization and expansion. Texas Industries Incorporated (NYSE:TXI) (Dallas, Texas) has asked four major OEM's (Original Equipment Manufacturers) to re-quote a $300 million cement modernization and expansion at TXI's Oro Grande cement plant in California. The project, which is still officially on hold, was put on the back burner nearly three years ago. TXI will review the new up to date quotes and make a decision whether or not to proceed with project engineering during 2003.

The project involves replacing seven existing kilns with a single rotary kiln line. Upon completion the new line would increase capacity from a current 1.2 million tons per year up to 2.5 million tons per year. This would make it one of the largest cement plants in the U.S. and second largest on the west coast behind Cemex USA's Apple Valley, California plant, which recently completed an expansion to boost its capacity up to 3.1 million tons per year.

TXI put the Oro Grande plant modernization on hold as market conditions warranted and so it could concentrate on completion and start-up of a $250 million expansion, which was completed last year at its Midlothian Texas cement plant.