Top 10 U.S. Cement Projects: Producers Study Expansions

Researched by Industrial Info Resources (Sugar Land, Texas)--Fueled by the rebounding economy, U.S. cement consumption is expected to grow through 2016 and beyond. Apparent U.S. consumption of Portland and masonry cement increased 9% to 89.1 million tons in 2014, according to the U.S. Geological Survey (USGS). The Portland Cement Association (Skokie, Illinois) projects U.S. Portland cement consumption will increase this year by 7.5% and continue to grow in 2016 by 7.9%. As such, Industrial Info is tracking 119 active U.S. cement plant projects worth $2.66 billion, as the industry gears up to meet demand.

This includes 96 projects, worth $1.34 billion, which are in the construction and engineering phases, and 23 projects, valued at $1.32 billion, which are in the planning phases, where a variety of factors could alter their outcome.

Domestic production of Portland and masonry cement amounted to 82.7 million tons in 2014, a 7.75% increase over production in 2013, according to the USGS. However, production last year was still well below the record level of 99 million tons in 2005, as a number of plants remained idle or underutilized. Cement sales have continued to increase as a result of higher spending for residential and nonresidential construction, according to the agency.

With four projects worth $674 billion, including a plant restart and modernization and a plant expansion, Ohio is first among the states in project value.

Listed below are the top 10 U.S. cement plant projects by value.

10-9 (tie). Cement Plant Expansion in Odessa, Texas. Cemex Incorporated, part of Cemex SAB de CV (San Pedro, Mexico), plans to spend an estimated $100 million to increase capacity by 900,000 tons at its 555,000 ton-per-year plant in Odessa, Texas, and to install a higher-capacity truck-loading system to meet growing demand by the Oil & Gas Industry. The project is now in the justification stage. Construction would kick off in second-quarter 2016, with completion in fourth-quarter 2018.

Cement Plant Expansion in Rapid City, South Dakota. GCC Dacotah LLC, part of Grupo Cementos de Chihuahua SA de CV (Mexico City, Mexico) plans to expand Portland cement capacity at its plant in Rapid City, South Dakota, by 20% to 1.2 million tons per year. GCC Dacotah is performing preliminary design and permitting work for the $100 million project through first-quarter 2016. Construction would kick off in third-quarter 2016, with completion in third-quarter 2018.

8. Cement Plant Modernization Ada, Oklahoma. Holcim Incorporated, part of LafargeHolcim Limited (Switzerland), is working to expand its plant production capacity in Ada, Oklahoma, to 720,000 tons per year from 600,000 tons per year. The $104 million project is in the preliminary engineering phase, with completion set for first-quarter 2017.

7. Cement Plant Expansion/Modernization in Charlevoix, Michigan. A site study is being performed for the planned $130 million expansion and modernization of Saint Marys Cement Company's cement plant in Charlevoix, Michigan. Capacity would increase by 700,000 tons per year. The project also includes reduction of environmental emissions. Construction kick off is set for second-quarter 2018, with completion in second-quarter 2020. Saint Marys is part of Votorantim Group (Sao Paulo, Brazil).

6. Cement Plant Modernization in Clancy, Montana. Ash Grove Cement Company (Overland Park, Kansas) is performing an economic evaluation for the modernization of its 330,000 ton-per-year cement plant in Clancy, Montana. The $150 million project would increase capacity to 1 million tons per year, and include a 19-mile overland conveyor system connecting the plant to the Clark Gulch Quarry. Construction would begin in second-quarter 2017, with completion in second-quarter 2019.

5-4 (tie). Cement Plant Restart/Modernization in Dixon, Illinois. Saint Marys Cement Company plans to restart and modernize its plant in Dixon, Illinois, at an estimated cost of $250 million. The plant was shuttered in 2008. It would produce 700,000 tons per year. Construction kick-off is set for first-quarter 2018, with completion in second-quarter 2020.

Cement Plant Modernization/Expansion in Maryneal, Texas. Site preparation is under way for the $250 million expansion of Buzzi Unicem USA Incorporated's cement plant in Maryneal, Texas. Capacity would be expanded to 1.2 million tons per year from the present 550,000 tons per year. The project includes replacing three outdated kiln lines with a new line. Completion is set for first-quarter 2016. The company is part of Buzzi Unicem SpA (Casale Monferrato, Italy).

3. Cement Plant Modernization in Ravena, New York: Construction is under way on the $300,000 million expansion of LafargeHolcim's cement plant in Ravena, New York, with completion set for second-quarter 2017. The project will increase capacity to 3.2 million tons per year from the present 1.8 million tons per year. It includes the replacement of two 3,000-ton-per-day wet rotary kiln lines with a dry rotary kiln line and supporting equipment to increase clinker capacity to 2.8 million tons per year.

2. Cement Plant Expansion in Joppa, Illinois. Lafarge North America's Joppa Cement Plant is undergoing a $420 million expansion, including a new 7,200 ton-per-day kiln line, with completion expected in first-quarter 2017. Capacity would increase to 3.1 million tons per year from 1.1 million tons. Lafarge North America is part of LafargeHolcim.

1. New Cement-Manufacturing Plant in Castle Hayne, North Carolina. This $450 million project involves construction of a new, 2.4 million-ton-per-year cement plant at the site of a former cement production facility, which closed in 1982. The new plant would be located next to an existing concrete ready-mix plant and cement terminal. The project by Carolinas Cement Company, which is part of Titan Cement Group (Athens, Greece), is listed as active, but has been delayed due to permitting issues. Some local residents have protested the plan. Construction would kick off in third-quarter 2016, with completion in third-quarter 2019.

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