Pit & Quarry, February 2016
Figure 6 FAST Act Highway Funding Levels 50 45 40 35 30 25 In Billions of 2015 Dollars 403 FY2015 Pre Fast Act 424 433 442 453 464 FY2016 FY2017 FY2018 FY2019 FY2020 firms are struggling through a period of currency devaluation political instability and general economic deterioration The U S is now a critical piece of the portfolio for public firms and the competitive landscape here has shifted dramatically in less than 24 months As the dust settles there can be little doubt that public acquirers will be looking at opportunities to defend their newly shaped competitive positions in the U S A great reshuffling The LafargeHolcim merger and Heidelberg Italcementi deal along with new cement capacity coming online in Canada and New York are set to drive a dramatic competitive rebalancing in North America particularly in the eastern and central United States Consider the following The LafargeHolcim merger creates a network of 20 cement plants with more than 33 million metric tons Mt of installed production capacity in North America including 279 Mt in the U S Newly public Summit Materials has more than doubled its cement production capacity and terminal network along the Mississippi River through The FAST Act provides a window of certainty to the aggregates industry that it has not had since the passage of SAFETEA LU in 2005 Source ASCE the acquisition of the former Lafarge Davenport Cement Plant and seven terminals Oldcastle Materials has entered the cement market in the Northeast and eastern Canada through the acquisition of the former Holcim cement assets in Ontario and Quebec Canada and related terminals Heidelbergs acquisition of Essroc ECONOMICS PULSE includes five cement plants and a network of 18 terminals in the eastern U S and a plant in Canada significantly bolstering Heidelbergs position in North America through subsidiary Lehigh Hanson The McInnis Cement Plant set to begin production in 2016 will bring an additional 25 Mt of waterborne production to the eastern U S and Canadian markets Lafarges Ravena plant modernization which broke ground in April 2014 is set to be completed in mid 2016 and The LafargeHolcim merger creates a network of 20 cement plants with more than 33 million metric tons of installed production capacity in North America www pitandquarry com February 2016 PIT QUARRY 73
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