In the United States, we have a balanced and vertically integrated business portfolio, strategically positioned in the high-growth regions of the country. We are the United States' largest supplier of cement and ready-mix concrete, as well as an important producer of aggregates, concrete blocks, and other building materials.
| Cement Plants |
12 |
| Cement Production Capacity (mmt/year) |
13.3 |
| Cement Plants (minority participation) |
4 |
| Ready-Mix Plants |
399 |
| Aggregates Quarries |
58 |
| Land Distribution Centers |
40 |
| Marine Terminals |
8 |
| Data as of December 31, 2006 |
Demand for cement is derived from demand for ready-mix concrete and concrete products which, in turn, is based on construction activity. The three main components of the US construction industry are the residential, industrial and commercial, and public sectors.
Increased public infrastructure spending has made US cement demand much less vulnerable to a downturn than in previous cycles. Public construction —particularly infrastructure projects such as streets, highways, and bridges—is the most cement-intensive sector, accounting for approximately 47 percent of total US cement consumption in 2006.
To support strong regional demand for cement, we are constructing a second kiln at our Balcones plant in New Braunfels, Texas. The new kiln, which we expect to complete in 2008, is designed to increase the plant's total production capacity to approximately 2.2 million tons per year.
We also are implementing an alternate fuels program to gradually replace coal with more economic fuels such as petroleum coke and tires. By retrofitting our cement plants to handle alternate fuels, we have improved our operating flexibility and reduced our vulnerability to potential energy price spikes.
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