Votorantim Cimentos Has Big Plans for Recently Acquired North American Cement Manufacturing Operations

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Brazil’s largest cement producer, Votorantim Cimentos (Sao Paulo, Brazil), is on a North American growth and acquisition quest as of late. Over the last five years, the company has added in excess of six million tons of annual cement manufacturing capacity in the Great Lakes and Southeastern region of the U.S. through acquisitions and expansion. In the fourth quarter of 2004, Votorantim acquired two cement plants from Cemex, along with a number of cement terminals. Today, the company is continuing its growth strategy in the U.S. with studies for several major plant expansions and new plant additions, which could increase its North American production capacity by 50% over the next five years.

Vororantim is the majority owner of Saint Mary’s Cement Company (Toronto, Ontario). Saint Mary’s Cement Company operates four cement plants in North America, including recently acquired plants in Charlevoix, Michigan and Dixon, Illinois. The other two are located in Saint Mary’s and Bowmanville, Ontario. These plants total 5.2 million tons per year of cement manufacturing capacity. Badger Cement, a cement grinding plant, was acquired in September 2003 adding to Saint Mary’s portfolio. In addition to Badger, Saint Mary’s also operates cement and slag grinding plants in Detroit, Algoma, and Nanticoke.

The company has big plans for growth and is evaluating options to expand the Dixon Cement operation. The company is studying sites in the vicinity of its existing limestone quarry in Dixon to expand limestone reserves and is also studying long-term options to upgrade and expand its existing pyroprocessing line, with the possibility of adding a new kiln line. At the Saint Mary’s plant, the company will be upgrading the clinker cooler.

In addition to its Great Lakes leadership position, Votorantim owns 50% of Suwannee American Cement LLC in Florida. In 2003, the company started up one of the only new U.S. cement plants to come online in recent years in Branford, Florida. Industrialinfo.com began tracking plans for this plant in 1999. Built at a cost of $130 million, the plant produces 750,000 tons per year. Now, the company is evaluating doubling capacity at Branford.

Votorantim is also joining the fray to expand cement manufacturing for the Florida market, backing a grassroot limestone quarry and cement plant being proposed in central Florida. The $200 million project is being designed to produce 1.7 million tons per year of cement.

For details on cement projects in Florida, including a project listing see September 22, 2005 news article titled - Florida Explodes with Well Needed Cement Manufacturing Project Activity

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