Long-Awaited $350 Million California Cement Plant Modernization Nears Completion

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Researched by Industrial Info Resources (Sugar Land, Texas)--Final commissioning is underway at the $350 million cement-plant modernization and expansion project in Oro Grande, California. Industrial Info first reported on this project in 1996, when Riverside Cement Company owned the plant. TXI Riverside (Dallas, Texas) mines, and produces cement, aggregate and ready-mix concrete in Texas, Louisiana, Oklahoma and California. In 1997, it purchased the then-41-year-old plant and put the modernization project on the back burner the following year. TXI didn’t forget this immense undertaking but continued to review the project on a regular basis until it felt the market was right to move forward with it. Capital approval was given in early 2004, and the project has been on the front burner since.

Oro Grande Contractors (Oro Grande, California), a joint venture between AMEC Engineering (Tucker, Georgia) and Zachry Construction Corporation (San Antonio, Texas) provided detailed engineering, procurement and construction services. They remain on site as work draws to a close. The project is expected to be completed and fully operational in a few months.

What changes have been wrought at the former 1.3 million ton per year cement plant that operated seven kilns? The new 2.3 million-ton-per-year single dry kiln line has found its home at the plant, along with a 400-foot preheater precalciner, a raw mill, finishing mills, clinker cooler, storage dome, preheater tower and associated production equipment. It would appear that the plant has become new again. The plant will reduce emissions despite the increase in production, partly because of the modern equipment and processes used. The last time new equipment was installed was in the late 1950s.

But all is not sunny on that California shore. Completion of the new plant now brings layoffs. With approximately 200-250 unionized employees, it’s expected that only half will be retained when the commissioning is over. In June, the company signed a contract with the local union at the Oro Grande plant with an initial raise of 4% and annual wage increases of about 3% after that, through the life of the five-year contract. Union officials for the plant have since expressed concerns over safety at the plant if the staff reduction takes place.

See related November 18, 2002, article - California Cement Plant Reviews $300 Million Modernization Project

See related May 11, 2005, article - Texas Industries Gets Approval on Long Delayed $350 Million Cement Plant Modernization Project in California

See related June 14, 2006, article - TXI and Oro Grande Contractors Progress $350 Million Cement Plant Modernization in California

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View Project Report – 06002167

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