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The five leading states in the fourth quarter of 2021 were, in descending order of production, Texas, Missouri, California, Florida and Ohio.
Aggregates Production Rises 5% in 2021. The U.S. Geological Survey (USGS) has released the report “Crushed Stone and Sand and Gravel in the Fourth Quarter 2021.”
An estimated 647 million metric tons (Mt) of total construction aggregates was produced and shipped for consumption in the fourth quarter of 2021, an increase of 7% compared with that of the same period of 2020. The estimated annual output of construction aggregates produced for consumption in 2021 was 2.54 billion metric tons (Gt), an increase of 5% compared with that of 2020, according to Jason Willet, commodity specialist, National Minerals Information Center, USGS.
The estimated production for consumption of construction aggregates in the fourth quarter of 2021 increased in eight of the nine geographic divisions compared with that sold or used in the fourth quarter of 2020. In the fourth quarter, production for consumption increased in 35 of the 40 states for which production estimates of construction aggregates were made.
The five leading states in the fourth quarter of 2021 were, in descending order of production, Texas, Missouri, California, Florida and Ohio. Their combined total production for consumption was 200 Mt (31% of the U.S. total).
The estimated total annual production for consumption of construction aggregates in 2021 increased compared with that in 2020, in 38 of the 50 states for which estimates were made. The five leading states were, in descending order of total annual output for 2021, Texas, California, Missouri, Florida and Ohio. Their combined total annual output was 780 Mt, a 4% increase compared with that of 2020.
An estimated 397 Mt of crushed stone was produced and shipped for consumption in the fourth quarter of 2021, an increase of 8% compared with that of the same period of 2020. The estimated annual output of crushed stone produced for consumption in 2021 was 1.54 Gt, an increase of 4% compared with that of 2020.
The estimated production for consumption of crushed stone in the fourth quarter of 2021 increased in eight of the nine geographic divisions compared with that sold or used in the fourth quarter of 2020. Production for consumption increased in 37 of the 45 states for which production estimates of crushed stone were made.
The estimated output of construction sand and gravel produced and shipped for consumption in the fourth quarter of 2021 was 250 Mt, an increase of 5% compared with that of the same period of 2020. The estimated annual output of construction sand and gravel produced for consumption in 2021 was 1.00 Gt, an increase of 6% compared with that of 2020.
The estimated production for consumption of construction sand and gravel in the fourth quarter of 2021 increased from fourth quarter 2020 levels in eight of the nine geographic divisions. Production for consumption increased in 34 of the 43 states for which production estimates of construction sand and gravel were made.
Shipments of portland and blended cement increased by 4% in the fourth quarter of 2021 compared with that in the fourth quarter of 2020. Annual consumption increased by 4% in 2021, compared with that of 2020. This information is obtained from the USGS monthly survey of U.S. cement producers.
The above estimates are based on information reported to the USGS quarterly sample survey of construction aggregates producers in the United States.
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The U.S. transition to Holcim, the first for Holcim Group, is a significant milestone and will play an essential role in accelerating our world’s transition to a net zero and inclusive future, the company stated.
LafargeHolcim Becomes Holcim US. LafargeHolcim in the United States unveiled its new identity as Holcim US, uniting legacy brands and strengthening the company’s purpose to build progress for people and the planet across the nation.
The U.S. transition to Holcim, the first for Holcim Group, is a significant milestone and will play an essential role in accelerating our world’s transition to a net zero and inclusive future, the company stated.
“The Holcim US identity is inspired by our talented people, rich culture and commitment to building a sustainable future,” said Jay Moreau, CEO of Holcim US Aggregates & Construction Materials. “We’re coming together as one team to accomplish ambitious goals in sustainability and innovation, and to deliver on the value proposition for us and our stakeholders.”
Holcim US is one of the leading building materials providers in the country, partnering with engineers, architects and customers to develop durable, low-carbon approaches to construction projects. The company operates in 43 states and offers a range of innovative cement, concrete, aggregates and asphalt products and services through some of the country’s most trusted brands including Lafarge, Holcim, Aggregate Industries and Lattimore Materials. With Holcim transitioning in the U.S., legacy market brands will enjoy a greater sense of unity and identity in their markets.
“As Holcim US, we now share a common purpose and vision that draws on the Group’s rich 200-year heritage of building progress,” said Toufic Tabbara, Interim CEO, US Cement, and North America Region Head at Holcim. “As the company transforms to become the global leader in innovative and sustainable building solutions, our US organization becomes even more closely linked to the leadership position that Holcim Group has been building globally.”
In July 2021, Holcim US parent company, Holcim Group Ltd., first launched its new identity that stands for making cities greener; empowering society with smarter infrastructure; improving living standards for all; and building more with less. Becoming a net zero company, Holcim puts sustainability at the core of its strategy and drives the circular economy, as a world leader in recycling.
In the United States, Holcim includes close to 350 sites in 43 states and employs 7,000 people.
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The largest of four transactions announced April 1 netted 37 central Texas, Colorado and Wyoming sites from Martin Marietta Materials.
SRM Continues Torrid Pace of Acquisitions. SRM Concrete opened the second quarter confirming the acquisition of 67 ready mixed plants in five states. The largest of four transactions announced April 1 netted 37 central Texas, Colorado and Wyoming sites from Martin Marietta Materials, which had indicated an asset sale agreement with SRM Concrete in mid-March.
SRM Concrete has also acquired 18 North Carolina and five Florida plants from Argos USA, with whom it had effected a 2021 deal for 24 Dallas-Ft. Worth ready mixed plants, plus two earlier transactions involving Florida and Arkansas operations. The North Carolina sites cover new markets for SRM along the Atlantic coast in Greenville, Morehead City, and Wilmington. The newly added Florida plants lie in a 40-mile radius of Fort Myers, enabling SRM Concrete to extend its service capabilities in that market. A third deal announced April 1 builds on the Dallas-Ft. Worth platform, as SRM Concrete acquired six plants from Charley’s Concrete Inc. of Keller, Texas.
CEO Jeff Hollingshead offers perspective on the ambitious moves to deepen and extend SRM Concrete stakes on both sides of the Mississippi River: “With the addition of [the Martin Marietta] assets, we are able to enter many new attractive markets and further bolster our national footprint as the largest concrete producer in the country.”
On the second asset deal, he added, “We have now completed four transactions with Argos over the last several years, and have found their teams to be best-in-class. We look forward to adding [the North Carolina and Florida] locations to our existing plant network and strengthening our leading positions in those growing markets.”
“Charley’s Concrete is the largest independent producer in the Dallas-Fort Worth market, and we are excited to add them to our current market-leading plant network,” he continued. “The great team at Charley’s will be a wonderful addition. The family-first culture that Charley’s has built is much like ours, so it feels like a natural fit.”
The fourth and smallest acquisition that SRM Concrete announced this month involves single-plant Environmental Concrete & Materials in Fort Myers, a business strategic to the Argos USA sites. “ECM is a great family-owned business that has been built by hard work,” affirmed Hollingshead. “They have become the largest producer in the Fort Myers market, and we are excited to add them to our team.”
SRM Concrete has pursued an active acquisition strategy, having successfully acquired and integrated more than 60 companies since 2005. SRM currently has more than 4,000 employees with locations that span 13 states.
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The operations include the Redding cement plant, related cement distribution terminals and 14 ready mixed concrete plants located in California.
Martin Marietta Sells Cement, Ready Mixed Operations. Martin Marietta Materials entered into a definitive agreement to sell certain West Coast cement and ready mixed concrete operations to Taiheiyo Cement Corp.’s CalPortland unit for $250 million in cash. The operations include the Redding cement plant, related cement distribution terminals and 14 ready mixed concrete plants located in California.
Ward Nye, chairman, president and CEO of Martin Marietta, stated, “Consistent with our SOAR (Strategic Operating Analysis and Review) 2025 plan, we continually look for ways to optimize our portfolio and product mix through asset swaps and divestitures. After thoughtful evaluation, we determined that monetization of these operations is the best avenue to maximize value for all stakeholders.”
The transaction is expected to close in the second half of 2022, subject to regulatory approvals and other customary closing conditions.
The parties have also entered into preferred arrangements regarding the potential sale of the company’s Tehachapi cement plant and related cement distribution terminals. However, there is no assurance that an agreement for Tehachapi will be entered into, Martin Marietta stated.
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The incoming assets significantly extend the drainage and short-span bridge market footprints of sister Quikrete businesses, Rinker Pipe and Contech Engineered Solutions.
Quikrete Closes on Forterra. Quikrete Holdings has acquired all outstanding Forterra Inc. shares and established the concrete pipe, drainage structure, structural precast and ductile iron pipe producer as a wholly owned subsidiary.
The incoming assets significantly extend the drainage and short-span bridge market footprints of sister Quikrete businesses, Rinker Pipe and Contech Engineered Solutions, and bring a commanding water supply infrastructure position via Forterra’s US Pipe franchise.
Three proposed transactions involving the sale of Forterra and Rinker concrete plants serving coastal states from Virginia to Texas appear to have enabled the $2.3 billion transaction to proceed without major U.S. Department of Justice Antitrust Division action.
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Due to persistently high energy costs, the general conditions particularly in the first half of the year will nevertheless remain challenging.
HeidelbergCement Revenue Up 6.3%. The impact of the coronavirus pandemic did not significantly affect construction activities in 2021 and thus demand for its building materials, according to HeidelbergCement. The positive market dynamics in many of HeidelbergCement’s key markets led to a good overall development of sales volumes. Deliveries increased compared with the previous year in all business lines.
Group revenue increased by 6.3% to €18,720 million (previous year: 17,606) in comparison with the previous year. On a like-for-like basis, the increase was 8.0%. Result from current operations before depreciation and amortization (RCOBD) increased by €168 million or 4.5% to €3,875 million (previous year: 3,707), on a like-for-like basis, the increase was 5.9%. Result from current operations (RCO) increased significantly by 10.6% to €2,614 million (previous year: 2,363), on a like-for-like basis, the growth amounted to 12.0%.
Dr. Dominik von Achten, chairman of the managing board of HeidelbergCement, said, “2021 was a very good year for HeidelbergCement, notwithstanding all challenges. We achieved excellent results in all key figures. Despite the significant increase in energy prices and pandemic-related lockdowns in some key markets in Asia, we were able to increase revenue by 8% on a like-for-like basis and our result by 12%. We were able to further significantly improve HeidelbergCement’s capital efficiency and leverage ratio. In addition, we successfully continued the optimization of our portfolio.”
Due to persistently high energy costs, the general conditions particularly in the first half of the year will nevertheless remain challenging. Strict fixed cost management and further price increases are intended to counteract this.
For the 2022 business year, HeidelbergCement expects a significant increase in revenue, as well as a slight increase in result from current operations before depreciation and amortization (RCOBD) and in result from current operations (RCO), both before exchange rate and consolidation effects.
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Net revenue was down in the fourth quarter but higher for the full year 2021.
Summit Touts Aggregates, Cement, Ready Mix Business. Summit Materials Inc. announced results for the fourth quarter and full year ended Jan. 1. Net revenue was down in the fourth quarter but higher for the full year 2021.
In the fourth quarter, Aggregates net revenues increased by $6.5 million to $142.0 million in the fourth quarter. Aggregates adjusted cash gross profit margin decreased to 45.7% in the fourth quarter as compared to 49.9% in the fourth quarter 2020. Aggregates sales volume decreased 5.5% in the fourth quarter, due to the negative impact from comparisons to a 53rd week in 2020. Excluding this impact, volume growth was primarily driven by the East Segment, led by growth in Virginia and Missouri. Average selling prices for aggregates increased 8.6% in the fourth quarter with strong growth across both reporting segments.
For 2021, Aggregates net revenues increased by $75.2 million to $573.2 million in 2021. Aggregates adjusted cash gross profit margin increased to 51.7% in 2021 as compared to 51.4% in 2020. Aggregates sales volume increased 8.6% in 2021 with organic growth in both the East and West segments.
By market, volume growth in the Intermountain West, Virginia, Carolinas, Georgia, and British Columbia were partially offset by lower volumes in Kentucky. Average selling prices for aggregates increased 3.6% in 2021 with strong growth across both the East and West segments.
In the fourth quarter, Cement segment net revenues increased 9.8% to $79.2 million in the fourth quarter. Cement segment adjusted cash gross profit margin decreased to 42.7% in the fourth quarter, compared to 47.4% in the prior year period. Sales volume of cement increased 5.8% and average selling prices increased 2.7% in the fourth quarter.
For 2021, Cement segment net revenues increased 10.2% to $298.2 million in 2021. Cement segment adjusted cash gross profit margin increased to 39.9% in 2021, compared to 39.6% in 2020. The Green America Recycling facility is operational and continues to ramp up production after completing repair and commissioning activities late in the third quarter 2021 after its prolonged shutdown due to an explosion in April 2020. Sales volume of cement increased 6.3% and average selling prices increased 2.9% in 2021.
Products net revenues were $263.2 million in the fourth quarter, compared to $286.0 million in the prior year period. Products adjusted cash gross profit margin decreased to 18.3% in the fourth quarter, versus 19.6% in the prior year period. Average sales price for ready-mix concrete increased 3.5% driven primarily by pricing growth in the Intermountain West market.
Sales volumes of ready-mix concrete decreased 4.8%, despite strong demand and favorable weather conditions, particularly in Houston. Average selling prices for asphalt increased 4.2%, driven by strong pricing growth across the East Segment markets that was partially offset by lower pricing in North Texas and Salt Lake City. Asphalt volume decreased 25.7% due largely to a paving business divestiture earlier in the year.
Products net revenues of $1.1 billion in 2021 were relatively unchanged versus 2020. Products adjusted cash gross profit margin decreased to 18.3% in 2021, down from 19.2% in 2020. Ready-mix concrete average selling prices increased 3.4% and sales volumes increased 1.6% primarily reflecting a strong demand environment in the Intermountain West market that more than offset wet conditions in Texas. Average selling prices for asphalt increased 2.2%, with pricing growth across both reporting segments. Asphalt volume decreased 13.2% due to the divestiture of a paving business in 2021.