Since passage of SAFETEA-LU in 2005, there has been a bipartisan and bicameral agreement that a correction bill was needed to fix a few of the unintended problems that arose after Congress approved the landmark transportation authorization bill.

Rep. James L. Oberstar (D-Minn.), chairman of House Committee on Transportation & Infrastructure introduced just such a bill (H.R. 1195) on Feb. 27 and had it approved on March 1 by the full committee. The Congressional Budget Office (CBO) reviewed the legislation and found no budgetary impact, easing the way for consideration by the full House the week of March 12, according to Oberstar.

Joining the chairman in cosponsoring the bill were Reps. Peter Defazio (D-Ore.), John Duncan (R-Tenn.) and John Mica (R-Fla.). DeFazio is chairman of the Highways and Transit subcommittee, Duncan is ranking Republican on the subcommittee and Mica is the senior Republican on the full committee.  

The 79-page bill makes numerous technical changes to SAFETEA-LU, including modifying 224 high-priority projects. The two major changes of interest to the aggregates industry are a six-month extension of the life of the National Surface Transportation Policy and Revenue Study Commission to Dec. 31, 2008, (along with $2 million in additional funds) and an additional $37 million annually for Title V programs to alleviate the problem of over-earmarking research funds. 

(Source: National Stone, Sand & Gravel Association’s eDigest & Washington Watch)

Holcim Ltd., the world’s second-biggest cement maker, will bid C$571 million ($493 million) to buyout the remainder of St. Lawrence Cement Group Inc., a Canadian unit that’s tapping demand on the U.S. eastern seaboard.

Shareholders with 21 percent of the business will be offered C$36.5 a share, Jona, Switzerland-based Holcim said in a statement. The planned bid is 12 percent more than St. Lawrence’s closing share price on Feb. 23.

Holcim and its next biggest rivals, France’s Lafarge SA and Cemex SA of Mexico, are racing to expand globally, using acquisitions to grow in both emerging and mature markets, where they can cut costs to improve efficiency. St. Lawrence plans to lift sales by shipping more surplus Canadian cement to U.S. markets to undercut higher-cost supplies imported from outside the region.

CEO Markus Akermann is employing the same strategy at other subsidiaries around the world. In January, Holcim increased its stake in India’s Gujarat Ambuja Cements to more than 20 percent. The buyout of the minority shareholders in St. Lawrence is “strategically” sound, said Zurich-based Martin Huesler, an analyst at Zuercher Kantonalbank, in a note.

Consolidation 

Acquisitions helped Holcim report a 32-percent jump in third-quarter profit. Since 1989, it’s expanded in 20 new markets, investing more than 19 billion francs on purchases and factory upgrades, UBS analyst Mark Stockdale said in a research note. Cemex on Oct. 27 made an $11.7 billion hostile bid for Rinker Group Ltd. of Australia in what would be the biggest-ever takeover in the building-materials industry.

Holcim entered North America in the 1950s with the construction of a cement plant in Beauport, near Quebec City. Revenue at St. Lawrence, which employs 3,300, increased 4.9 percent to C$386 million in the fourth quarter, driven by improved prices.

The Mount Royal-based business said Feb. 2 it started 2007 with a good order backlog in Ontario. Spending on infrastructure as well as non-residential building projects, such as office blocks, will help construction remain near the “strong” levels of recent years, it said.

The Swiss company is scheduled to report annual earnings on Feb. 28. It has yet to table a formal offer.

(Source: Bloomberg.com, Feb. 26, 2007. By Antonio Ligi in Zurich. Ligi may be contacted at aligi@bloomberg.net .)

Phoenix increases production at Murphy Sand & Gravel

Phoenix Associates Land Syndicate (Phoenix) announced that it has started up a second gravel and sand production operation at the Murphy Sand & Gravel (MS&G) mine site in Pearl River, La., and is now producing gravel and sand at record levels.

Phoenix, commenting on its recently announced contract with Cherokee Environmental Construction, Inc. for up to $20 million in aggregate and sand to be delivered over the next twelve months, added that this contract is on a “per year” basis, and thus is expected to renew for a number of years.

(Source: Aggregate Research Industries)

Illinois Association of Aggregate Producers named NSSGA 2006 State Association of the Year

The Illinois Association of Aggregate Producers (IAAP), headquartered in Springfield, was honored this morning at NSSGA’s annual convention as NSSGA’s State Association of the Year for 2006.

Each year, NSSGA recognizes one of its state counterparts for exemplary service to the aggregates industry. The award is bestowed to recognize the work of the state association that has had a significant beneficial impact on the aggregates industry at the regional or national levels.

Lafarge CEO: Lafarge is not interested in Hanson 

PARIS—In a scheduled press conference Feb. 23, Bruno Lafont, CEO of French construction materials group Lafarge stated that Lafarge has no interest in acquiring Hanson.

Hanson is the world’s biggest supplier of sand and gravel.

The shares in Hanson gained last week [the week of Feb. 18] with speculation that Lafarge will attempt a takeover in response to the recently announced takeover of Florida Rock by Vulcan Materials, and the hostile takeover bid of Rinker Materials by the Mexican cement giant Cemex.

Asked at the press conference about a possible bid for Hanson, Lafarge CEO Bruno Lafont said: “I often hear that but I can tell you that we are not interested in Hanson.”

(Source: Aggregate Research Industries)

Vulcan, Martin Marietta make Fortune’s ‘Most Admired’ list

Birmingham, Ala.-based Vulcan Materials Co. was selected as the most admired company in the construction materials field by Fortune magazine. Martin Marietta ranked second on the list in the field.

Overall, General Electric Corp. ranked as the most admired company.

Phoenix ‘s Murphy Sand & Gravel commits to 24-hour-per-day, six-day-per-week mining operation

MADISONVILLE, La.—Phoenix Associates Land Syndicate on March 6 announced that the Murphy Sand & Gravel Division (MS&G) of Phoenix will move its sand and gravel operating schedule to a 24-hour-per-day, six-day-per-week schedule as of March 2007, according to a press release posted on Phoenix’s Web site.

MS&G currently has two operational sites producing sand and gravel products. In line with plans to significantly expand production capacity to keep up with demand, a new 14x12 dredge was expected arrive on or about March 6, according to the press release. Once this new dredge is connected to a screening plant, MS&G says that it will have three operational production lines. The company’s plans call for five operating sites at the mine to be producing sand and gravel products within 60 to 90 days.

Additionally, Phoenix management has decided to install a Web cam at the MS&G site. The web cam will be linked to the Phoenix Web site so that shareholders will be able to view ongoing operations and future expansion activities at the Pearl River mine site.

Astec announces 2006 results with historical highs

CHATTANOOGA, Tenn.—Astec Industries, Inc. on Feb. 27 reported results for the fourth quarter and for the year ended December 31, 2006. Revenues for 2006 were $710.6 million and net income for 2006 was $39.6 million, each of which is an historical high for the company. Net income was $1.81 per diluted share for 2006 compared to $1.34 per diluted share for 2005, for an increase of $0.47, or 35.1 percent per diluted share.

Revenues for 2006 were $710.6 million compared with $616.1 million for 2005, for an increase of 15.3 percent. Domestic sales were $518.5 million for 2006, or 73.0 percent of 2006 revenues, compared to domestic sales of $499.8 million for 2005, or 81.1 percent of 2005 revenues.

International sales were $192.1 million for 2006, a 65.3 percent increase over 2005, or 27.0 percent of 2006 revenues, compared to international sales of $116.2 million for 2005, or 18.9 percent of 2005 revenues. Gross margins for 2006 compared to 2005 increased 210 basis points. The Company reported net income of $39.6 million, or $1.81 per diluted share, for 2006 compared with a net income of $28.1 million, or $1.34 per diluted share for 2005, resulting in a 35.1-percent increase in diluted earnings per share.

Excluding the unusual items in 2005 (gain on the sale of the Grapevine real estate, impairment charges, and charge-off of prepaid loan fees, as exhibited and reconciled on the attached schedule), income from operations has increased from $40.3 million in 2005 to $60.3 million in 2006, for a 49.8-percent increase.

Revenues for the fourth quarter of 2006 were $162.2 million compared with $134.5 million for the fourth quarter of 2005, for an increase of 20.6 percent. Domestic sales were $113.6 million for the fourth quarter of 2006, or 70.0 percent of 2006 fourth-quarter revenues, compared to domestic sales of $108.8 million for the fourth quarter of 2005, or 80.9 percent of 2005 fourth quarter revenues.

International sales were $48.6 million for the fourth quarter of 2006, or 30.0 percent of 2006 fourth quarter revenues, compared to international sales of $25.7 million for the fourth quarter of 2005, or 19.1 percent of 2005 fourth quarter revenues. The company reported net income of $6.3 million, or $0.29 per diluted share, for the fourth quarter of 2006 compared with net income of $1.0 million, or $0.05 per diluted share, for the fourth quarter of 2005, resulting in a 480.0-percent increase in diluted earnings per share. The company’s previous historical high for fourth quarter earnings was also $0.29 per diluted share in 1998.

The company’s backlog at Dec. 31, 2006 was $242.5 million compared to $127.7 million at December 31, 2005, for a $114.8 million increase. The company’s backlog at Jan. 31, 2007 was $261.6 million compared to $161.0 million at Jan. 31, 2006, for a $100.6 million increase.

(Source: Astec Industries)

Lafarge acquires Chicago-area market’s Feltes Sand and Gravel

Herndon, Va.-based Lafarge, the world leader in building materials and North America’s largest diversified supplier of construction materials, on March 8 announced that it has completed the purchase of Feltes Sand and Gravel, Inc. in Elburn, Ill.

The acquired business will be renamed Lafarge Elburn and will become part of the company’s existing Chicago market area. The acquired operation currently produces and sells approximately 2.7 million tons of aggregates annually. This addition will increase the company’s annual aggregate sales in the Chicago market area to approximately 11 million tons.

“This transaction is our third acquisition in the greater Chicago market in the last 14 months,” says Tom Farrell, Lafarge regional president for aggregates, concrete and asphalt in North America, in a press release from Lafarge. “Our combined operations create a strong network of limestone mines, quarries, sand and gravel facilities, an Illinois River dock, and decorative and landscape yards to serve the needs of our growing customer base.”

Ken MacLean, president of the Lafarge’s eastern U.S. aggregate, concrete, and asphalt operations, in the same press release, says, “The Feltes organization has a rich heritage and active involvement in our industry. We are pleased to continue that heritage and welcome our new employees into the Lafarge organization.”

Lafarge profit climbs 25 percent; company raises guidance

Lafarge SA, the world’s largest cement maker, said annual profit rose 25 percent after the French company increased the size of plants in China and India and bought full control of its North American unit.

Net income advanced to 1.37 billion euros ($1.8 billion), or 7.86 euros a share, from 1.1 billion euros, or 6.39 euros, the Paris-based company said in a Feb. 23 statement. It plans to buy back as much as 500 million euros of shares this year.

Lafarge said that it expects to beat its earnings growth targets through 2008 after making acquisitions to bolster revenue, secure raw-material supplies and tap demand in faster- growing emerging markets. It spent $3.5 billion last year to acquire the rest of Lafarge North America Inc. to speed decision- making in the company’s biggest market as homebuilding slows.

Shares of Lafarge, which became the world’s biggest cement producer in 2001 when it bought Blue Circle Industries Plc of the U.K., have advanced 18 percent in the past six months, compared with a 15 percent gain in the Dow Jones Stoxx 600 Index. That gives the company a market value of 21.1 billion euros.

The board proposed an 18-percent increase in the annual dividend to 3.00 euros. Analysts in a Bloomberg survey had predicted profit of 1.35 billion euros, according to a mean estimate.

Guidance raised

Lafarge said markets will remain “favorable” this year and it predicted “substantial” cost savings. Results will continue to improve in 2007, placing the company on course to exceed targets set in June for increasing annual earnings per share by an average 10 percent through 2008 and lifting return on capital to 10 percent, it said.

Sales of Lafarge added 17 percent to 16.9 billion euros, led by demand for aggregates and concrete.

(Source: Bloomberg, Feb. 23, 2007. By Brian McGee in London. McGee may be reached at bmcgee3@bloomberg.net.)

Maintenance

How to Optimize Cyclone Performance

When properly maintained, a well-designed cyclone will deliver the consistent performance you want.

by Ryan Bruner

Cyclone dust collectors operate with no moving parts.

With no moving parts, electrical components, or water requirements, your cyclone may be the simplest piece of equipment in the plant. Maintenance requirements are typically minimal. Neglecting your cyclone, however, may cause a reduction in collection efficiency that results in a lower product recovery rate or expensive operational and maintenance problems in your dust collector. It is important to have a periodic inspection procedure in place so that this can be avoided.

What to look for

1. Abuse — Cyclones should be periodically inspected for abuse. This is a sign of plugging, a serious problem. When an operator becomes aware of a bridge or plug at the discharge of a cyclone, their first inclination is to beat on it to dislodge the particles. The cyclone, especially those constructed of thin sheet metal, can be easily dented or deformed. With the plug removed, the performance of the cyclone may suffer since uneven surface conditions can disrupt the flow pattern of the spinning air, cause particles to deflect, and send more dust out of the top of the unit.

Deformed cyclones should be repaired and the bridging or plugging problem must be addressed to prevent future abuse. Potential causes of plugging that should be investigated include: non-flush access doors, interior ledges or protrusions, foreign objects, a higher-than-expected particle loading, faulty airlock device, a discharge that is too small, and condensation. If these are ruled out, and the particles are not sticky in nature, impact vibrators, air lances, and strike plates should be installed at the discharge. Poke holes can also provide an easy way to clear plugs.

Discharge devices must seal properly to prevent particle carryover.

2. Buildup — The interior surfaces must be checked for particle buildup since it will disrupt airflow patterns and increase particle emissions. Severe buildup will eventually plug the unit and shutdown the process. If buildup is present, it is important to determine if condensation is forming on the inside walls. Condensation should be suspected on hot air streams with high moisture content, particularly if the cyclone is not insulated.

External insulation is essential on processes that operate near their dew point temperature. If condensation is ruled out, then the particles may simply be too sticky for the cyclone design in use. Features such as polished surfaces or non-stick coatings on the inside may be necessary in the application. In rare cases, material with strong static charges may build up on the walls. Proper equipment grounding often will alleviate this problem.

3. Wear —Holes in wear areas may allow air to be sucked into the cyclone and carry particles out the top of the cyclone. Holes on the interior outlet pipe or vortex finder will allow air and particles to short circuit the spinning action of the cyclone and exit the unit prematurely. Holes are an indication of a wear issue that likely will not go away.

In large cyclone assemblies, service platforms are used to access cyclone maintenance areas and inspection doors.

The walls of the cyclone should be checked to ensure structural integrity and to determine how widespread the problem is. If the wear is localized, then patching of the area may be performed. It is important to note that any patch must conform to the inside curvature of the cyclone or particle carryover and alternate wear patterns will result. Wear rates are affected by factors such as particle loading, particle size and shape, and air velocities.

These factors should be taken into account during initial cyclone selection or when process changes are made to maximize the cyclone service life. In highly abrasive applications, hardened steel or linings may be required. Vulcanized rubber, ceramic tile, and refractory linings have proven to provide a long service life is such severe circumstances.

4. Corrosion — Evidence of corrosion should not be taken lightly. As with wear issues, holes will reduce cyclone performance and the structural integrity of the unit may be compromised. The cause of the metal corrosion must be determined. Using stainless or alloy steel construction may be the only way to avoid the problem.

5. Leaks — All doors, flanges, and airlock devices must be sealed to prevent air from leaking into the cyclone. Leaks not only reduce performance but can also accelerate wear rates and cause plugging. Doors and flanges should be checked regularly and gaskets replaced if necessary. The discharge device at the bottom of the cyclone must be maintained as outlined in the maintenance manual provided by the supplier.

It is very important that the airlock is sealing properly at all times to ensure maximum cyclone performance. Seal strips in rotary airlocks and gasket material in dump valves should be replaced when wear is evident.

6. Process changes — The static pressure drop across the inlet and outlet of the cyclone should be measured to ensure that process parameters are within their normal operating range. Cyclone suppliers will typically include couplings on the gas inlet and outlet for this purpose. An inexpensive pressure gauge can be installed to continuously measure the value. In general, cyclone pressure drops range in value from 4 to 8 inches wg. A reading above this range indicates that the air velocity in the cyclone is high.

Although the collection efficiency may be better, wear rates will greatly increase. A lower pressure drop reading indicates a low air velocity and will result in a performance reduction. It may also indicate a leak or a discharge that is not sealing properly.

When all else fails

In many cases, the cyclone design in place is simply not capable of performing adequately. Inherent design flaws may be causing high emissions, high wear rates, or frequent plugging. A cyclone with features tailored to your process may be required. A competent cyclone supplier will let you know what information is needed to properly select a cyclone for your application. Airflow and particle data must be accurately defined at this stage to ensure your new cyclone delivers optimal performance. When properly maintained, a well-designed cyclone will deliver the consistent performance you desire.

Ryan Bruner is the sales manager for Fisher-Klosterman, Inc., a supplier of product recovery, dust collection, and air pollution control equipment. He has a bachelor’s degree in engineering from Boston University and a master’s degree in business administration from Sullivan University. He may be reached by phone at 502-572-4000 or via e-mail at rab@fkinc.com

Photos courtesy of Fisher-Klosterman

High-capacity performance in tough applications

The new 3258 Portable Crushing Plant from Telsmith is engineered with features that boost production, reduce maintenance requirements, improve safety and enhance mobility, according to the manufacturer.

Ideal for the portable plant operator, the plant travels at 13 feet, 6 inches high and 10-feet in width. At the heart of the plant is the company’s Model 3258 hydraulic jaw crusher.

With a 32-inch gape and a 58-inch wide crushing chamber, it out produces other crushers in its class, the company says.

Unique, fingertip controlled, hydraulic adjustment cylinders reduce maintenance and increase uptime production while the hydraulic overload system automatically protects the crusher from tramp metal.

The crusher is fed with a 60-inch-wide and 20-foot-long vibrating grizzly. For optimum portability, the grizzly feeder, loading hopper, and grizzly bypass chute comprise one modular unit.

The entire module can be removed as one piece, sliding off the back of the plant and simplifying travel in weight restricted travel areas. Additionally, the chassis is equipped with a standard tri-axle air ride suspension. An optional 4th axle can be pneumatically elevated off the ground, reducing wear and tear during tight onsite maneuvering.

The plant is also equipped with the option of either diesel or electric power and features an optional variable speed drive for the feeder. Diesel plants incorporate a 365-horsepower engine with a hydraulically activated trans-fluid clutch.

Push-button controls engage the clutch automatically, and a hydraulic belt tensioner is used to maintain a constant belt pressure, eliminating the need to adjust belts. Several leveling systems are available as options.

The cylinders have been tucked under the plant, allowing extra room around the support legs for blocking. Large service platforms are built into the chassis for easy access to the jaw, feeder and engine.

High-volume primary crusher

Telsmith engineered its new PA6060 for high-volume crushing with minimal maintenance requirements. The primary Andreas-style impact crusher can handle up to 40-inch feed.

It has a solid-type sculptured rotor for higher inertia and greater blow bar backing support; a hydraulic tilting feed plate that safely eliminates bridging; interchangeable, reversible mono-block aprons for wear parts cost control; oversized bearings; and advanced hydraulic controls that reduce maintenance requirements.

Upgraded 5.75-yard loader

Case Construction Equipment has introduced the E-series version of its 921 wheel loader, adding a Tier 3 engine, improved operator comfort and visibility, and easier maintenance. The new engine develops 297 net horsepower in the 921E’s high-production mode and standard bucket size has been upgraded to 5.75 cubic yards.

The machine also has an “economy” work mode to maximize fuel efficiency in light duty work, and an “auto” work mode in which the machine’s control system adjusts power curves to move the maximum amount of material per pound of fuel, according to Case. The machine’s expanded cab is quieter and visibility has been increased.

Maintenance program for breakers

Atlas Copco Construction Tools has announced a new three-year service contract and extended warranty for its hydraulic breakers. ProCare takes the responsibility for periodic breaker maintenance out of the end user’s hands and makes the dealer or service center responsible for it.

The agreement includes initial installation and setup of the breaker, as well as fixed service intervals based on routine, single-shift breaker use, annual inspections in the shop, and periodic field inspections.

For more new products for the industry, check out the RollOuts section
in each month’s print edition of Aggregates Manager.

 

Sponsored by: With an expansive global reach and a reputation for innovation, problem-solving and unparalleled customer-service the companies of Astec Industries, Inc. command the trust and respect of industry professionals.

 

Swedish manufacturer Volvo acquired U.S- based Ingersoll Rand for $1.3 billion.

Stock Equipment Co., a member of the Schenck Process Group, has acquired the Fairfield Engineering Parts Company LLC of Marion, Ohio. With the purchase, Fairfield becomes a wholly owned subsidiary of Stock Equipment Co. and will be called Stock Fairfield Corp.

Binghamton, N.Y.-based Samscreen Inc. has hired Dale Sturdevant as its new marketing manager.

New Holland and Kobelco Construction Machinery America Co. Ltd. have named Tom Green as director of North American marketing. Green will be responsible for defining and implementing the marketing and communications strategies for the New Holland and Kobelco brands in North America, reporting directly to Terry Sheehan, president of Kobelco Construction Machinery America and vice president of New Holland North America.

New Holland has a joint venture arrangement with Kobelco to produce and distribute excavators in North America through each brand’s existing sales channels.

Mike Agee of Rogers Group, Inc., was named as the National Stone, Sand & Gravel Association’s (NSSGA) first Aggregates in Action (A2) Activist of the Year during the Government Affairs Committee meeting held at NSSGA’s annual convention in San Francisco.

The Board of Ireland-based CRH has appointed Kieran McGowan as the chairman designate to succeed the present chairman.

Pat Molloy, who has been chairman since May 2000 and a board member since 1997, will retire after the company’s Annual General Meeting, which is scheduled for May 7.

McGowan, who joined the CRH’s board in 1998, was CEO of IDA Ireland until December 1998. He is a non-executive director of a number of companies including Elan Corporation plc, Irish Life & Permanent plc and United Drug plc. He is also a director of Enterprise Ireland and chairman of the Governing Authority of University College Dublin.

The American Road & Transportation Builders Association (ARTBA) has hired Jeffrey Solsby as director of public affairs. Solsby has more than a decade of political and communications experience in both the public and private sectors.

Solsby will direct ARTBA’s communications and media relations programs. He will also manage “It’s Our Future” — the association’s “inside the D.C. beltway” image and branding campaign aimed at educating policymakers about the many solid returns the transportation design and construction industry provides on the public’s investment in highway and transit infrastructure projects.

Sponsored by:

Compiled by Tina Grady Barbaccia, Aggregates Manager Senior Editor.
To contact Tina about the newsletter content, send e-mail to e-news@aggman.com or call (630) 364-2306.

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