Hanson Continues to Grow North American Brick Manufacturing Capabilities

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). In line with a policy to grow its North American brick manufacturing market share, Hanson Brick & Tile (Charlotte, North Carolina), a subsidiary of Hanson plc (London, England) is in a continual mode of balancing the pros and cons of building grassroot plants, expanding existing plants, or acquiring competitors. This year has seen Hanson choose the acquisition method for growing its business, but construction firms shouldn't worry, because there are several construction opportunities on the books in the future for the company.

Hanson Brick has put a $35-40 million expansion, essentially a second plant addition, at a Texas plant on hold for market reasons. The 180 million-brick-per-year plant was to be built next to Hanson's Mineral Wells, Texas, plant, located at 500 Northeast 14th Avenue. The company may look at a modified expansion at the Mineral Wells plant, once market conditions warrant.

In the short term, the company has decided that it would grow its Texas market share through acquisition, instead of brick and mortar expansion. In March, Hanson announced plans to increase its production capacity for the Texas market by purchasing Athens Brick, which included three plants located in Mineral Wells, Texas; Athens, Texas; and Mooringsport, Louisiana. Totaling 90 million bricks per year of capacity, the $40 million purchase of Athens Brick increases the number of Hanson plants in North America to 25. Hanson commands about 20% of the growing Texas market for brick.

Hanson is no stranger to acquisition, having acquired and consolidated seven separate major brick companies in early 2003, making it the leading brick manufacturer.

In addition to expansion studies in Texas, the company is studying options for a new plant in Kentucky, and also a new plant to replace an antiquated plant in Canada.

In a related development, Hanson has applied with the City of Burlington, Ontario for Official Plan Amendment, Rezoning, and removal of Parkway Belt West Plan Land Use Regulations to allow the establishment of a shale quarry at 3488 Tremaine Road. The 38.5 hectare site under application is located at the southwest corner of No. 1 Side Road and Tremaine Road, north of Highway 407 in the city's Rural Area. The CN Rail Halton line is located at the western boundary of the property. The technical review of this land use proposal will include consideration of air quality, acoustics, hydrogeology, natural environment, land use policy, and traffic impact. Hanson Brick has identified that the site would contain approximately 60 years supply of buff-colored shale for its existing brick plant operations on Dundas Street.