Florida Explodes with Well Needed Cement Manufacturing Project Activity

---

Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Cement manufacturing project activity is back in high gear as shortages, high prices, and supply problems occur across the U.S. Nowhere is this more apparent than in Florida, which imports about 40-50% of its cement consumption needs. Florida has the capacity to produce about 6 million tons of cement clinker, yet it is consuming about 10.5 million tons per year. Florida receives most of its cement imports from Brazil, Colombia, Greece, Spain, Sweden, and Venezuela. Prices have increased significantly over the last two years, with growth countries like China taking an increasing share of available imports.

According to the USGS, Florida is fifth largest cement producing state behind California, Texas, Pennsylvania, and Missouri, in descending order. It is also the third largest consuming state, behind California and Texas.

Most Florida cement producers are considering plant expansions. In addition, there are a number of newcomers looking to get into the cement manufacturing business. These projects will offer no short-term solution to Florida’s cement supply problems, because of the long permitting period required to move a project from conception to fruition. If approved today, the earliest these projects could get up and running would be 2007, and a more realistic time period for grassroot plant construction would be 2008-10 time period. In the mean time, producers are doing what they can to optimize production and squeeze out as much cement as possible.

The only expansion to come online this year in the state of Florida is Titan America’s (Deerfield Beach) new 1.8 million tons per year Pennsuco cement plant, which replaced two older wet process kiln lines, producing one million tons per year. Once this plant reaches full productivity, Florida will have about 7.15 million tons per year of capacity from six operational cement plants.

Click on the image at right to view a table showing the breakdown of cement capacity and growth in Florida

Right now, the industry is planning expansion projects that would nearly double current production capacity in the state. About 6.8 million tons per year is being planned from proposed expansions and new plants. Expansions are being evaluated by Rinker Materials Corporation, Florida Rock Industries, and Votorantim.

Due to its location and limestone reserves, Sumter County, Florida has exploded on the scene with no fewer than three grassroot cement plants being evaluated in the county.

For more information on the U.S. cement plant expansion trend see related September 8, 2005 news article - Tightening U.S. Cement Supply Highlights the Need to Expedite $3.6 Billion Cement Manufacturing Expansion.

Industrial Information Resources (IIR) is a Marketing Information Service company that has been doing business for over 22 years. IIR is respected as a leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.