Sunshine State Deal Adds Cement Production To Oldcastle Portfolio

Oldcastle Materials has invested $50 million in American Cement Co. LLC, a joint venture with New Jersey-based Trap Rock Industries eyeing a 1.2 million-ton-per-year

CP STAFF

Oldcastle Materials has invested $50 million in American Cement Co. LLC, a joint venture with New Jersey-based Trap Rock Industries eyeing a 1.2 million-ton-per-year cement plant. The permitted facility is earmarked for a Sumterville, Fla., site with 150 million tons of limestone reserves. It is located about an hour north of Tampa and Orlando, and has access to those markets via major thoroughfares Interstate 75 and Florida’s Turnpike. Oldcastle Materials will fund the plant construction, which is scheduled for completion in 2008 and, by Concrete Products estimates, will cost upwards of $200 million.

The outlook for Florida construction is excellent, says Oldcastle Inc. CEO Tom Hill. With up to 40 percent of total annual cement consumption in the state currently imported, we believe there is real need for the local production capacity ACC will add.

Oldcastle Materials’ first cement-milling venture, ACC is positioned to supply 11 sister properties from the Florida Panhandle to Miami: three paving stone and four bagging plants under Oldcastle Architectural Products, plus four Oldcastle Precast (drainage, vault) properties. Oldcastle Materials’ counterpart operation, CRH Europe Materials, is a major cement player in markets from Ireland to the Urkraine, shipping about 15 million tons per year. Parent company CRH Plc is based in Dublin.

The ACC plant continues a ramp up of cement and cementitious materials production and distribution in Florida. Earlier this year, CRH’s neighbor in the U.K., Hanson Plc, acquired Civil and Marine Holdings Ltd., whose assets included a 700,000-tpy, Port Canaveral slag-grinding mill opened in 2005. The Sunshine State has also seen two other greenfield cement plants fire up in the past three years: Suwannee American in Branford, 850,000 tpy; and, Titan Florida/Pennsuco in Medley, 1.8 million tpy. The latter facility was followed by Titan Florida’s dedication of a 57,000-ton-capacity Port of Tampa terminal.