Holcim to Cease Operations at Two Cement Manufacturing Plants

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Researched by Industrial Info Resources (Sugar Land, Texas)--In response to current economic and market conditions, Holcim (U.S.) Incorporated (Waltham, Massachusetts), a subsidiary of Holcim Limited (VTX:HOLN) (Jona, Switzerland), has announced the permanent closures of cement-manufacturing plants in Clarksville, Missouri; and Dundee, Michigan. The company blames the closures on the decline in product demand, especially in the Midwest region. The company has yet to determine whether the plant parts will be dismantled and relocated to sister plants or sold.

The Clarksville plant, which has been operational since 1967, had one kiln line producing up to 1.3 million tons per year of cement and 181 workers. The plant plans to stop producing clinker in the first quarter of 2009. After which, with a skeleton crew of 30 employees, the plant will continue grinding operations until the remaining inventory is gone. The company estimates production to come to a complete halt by September 2009.

The Dundee plant, which has been operational since 1960, had two kiln lines producing more than 1 million tons per year of cement and 160 workers. The first kiln line is scheduled to shut down at the end of November 2008 with the second line following in the first quarter of 2009. Like the Clarksville plant, a small team will continue grinding operations until the remaining inventory is gone. Operations at the Dundee plant will also come to a complete halt by the end of September 2009.

Holcim said the Clarksville and Dundee closings have nothing to do with the construction of the $1 billion Lee Island cement plant in Ste. Genevieve County, Missouri. Work began in March 2006 on the mammoth cement plant, harbor and limestone quarry. The construction management and general contractor contract was awarded to Washington Group Alberici, a joint venture between leading engineering and construction firms Washington Group International (Boise, Idaho) and Alberici (St. Louis, Missouri). Scheduled to be complete by August 2009, the plant will produce more than 4 million tons per year. Industrial Info has been tracking this project since early 1999.

Holcim is one of the world's leading producers of cement and aggregates. The group also supplies ready-mix concrete, asphalt and a range of other services. The company has 16 manufacturing facilities and 76 distribution terminals in the United States.

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