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Vol. 3, No. 10
SYDNEY—Cemex’s $14.2 billion bid for Rinker Group was accepted by the Australian building-materials maker’s largest shareholder, removing the biggest hurdle to the six-month-old deal. Perpetual, which holds a 10.5 percent stake in Rinker, said that it would accept the $15.85 a share cash bid “as soon as practicable.” Rinker shares gained 1.8 percent to 19.23 Australian dollars in Sydney, rising to the offer price based on the May 7 exchange rate. The approval comes as Monterrey, Mexico-based Cemex extended its bid for a further three weeks and scrapped a condition that the takeover needed 90 percent of acceptances in order to succeed. Rinker’s board backed the deal, the biggest-ever takeover in the global building-materials industry, after Cemex raised its offer by 22 percent. Shareholders also have the option of receiving 19.50 dollars a share for a maximum of 2,000 shares after the Australian currency’s gain against the U.S. dollar cut the value of the bid. Cemex, the world’s third-largest cement producer, wants to buy Rinker to raise annual sales by 32 percent to $24 billion and add plants in Florida, Arizona, and Nevada, the American states with the fastest-growing populations. Juan Pablo San Agustin, Cemex’s senior vice president of corporate strategic planning, flew to Sydney to sway investors, including Perpetual. The offer seemed in doubt after Rinker reported better-than-expected earnings on April 30 and said that profit in the current year may fall less than 10 percent, as the company counters a housing slump in the world’s largest economy with road and infrastructure work. (Source: Bloomberg News. By Miriam Steffens) Australia’s Rinker Group announced a significant expansion to the group’s U.S. business in Las Vegas, Nev., with a major new quarry operation that will lift aggregates production in that region by more than 40 percent. The new quarry operation will source its aggregates raw feed under a long-term supply agreement with Chemical Lime Company of Arizona — processing and marketing around 2 million tons a year of high quality limestone aggregates from Chemical Lime’s Apex quarry operation in Las Vegas. The supply agreement is between Rinker’s U.S. subsidiary and Chemical Lime. Chemical Lime is a subsidiary of the privately owned Lhoist Group, based in Brussels, Belgium. Rinker Materials intends to install an aggregate processing plant on the site, to be fully operational within about 12 months, subject to obtaining the necessary permits. In January, Rinker announced the acquisition of the aggregates and concrete producer JR & Sons Ready Mix, in the St. George area of Utah, about 120 miles (190 kilometers) northeast of Las Vegas. JR & Sons is now part of the Rinker Materials Las Vegas business. (Source: Construction Press Services) Crews began working on the collapsed section of the MacArthur Maze this evening, hours after a Sacramento-area contractor with a reputation for making speedy emergency repairs to highways won the contract rebuild the connector ramp. C.C. Myers Inc. submitted a low bid that indicates the work could be completed before Caltrans’ June 27 deadline. An early finish would be in keeping with the transit agency’s quick response to the April 29 collapse of the connector from eastbound Interstate 80 to Interstate 580, which failed when a gasoline tanker on Interstate 880 below crashed and caught fire. The damaged section of I-880, closed since the fire, reopened this morning — five days ahead of schedule. The Rancho Cordova (Sacramento County) construction company was awarded the contract after submitting the low bid of $867,075 — an amount well below the Caltrans estimate of $5.2 million and the $20 million the department has set aside for the reconstruction. Kempton said the bid shows that C.C. Myers is banking on finishing the work early and collecting millions more in incentive payments for a speedy job. To encourage an early reopening, Caltrans offered a bonus of $200,000 for each day the work is finished ahead of the June 27 deadline, with a maximum of $5 million. For each day work goes past the deadline, the contractor would be assessed a $200,000 penalty. For C.C. Myers to collect the maximum under the contract, work would have to be completed by June 2. (Source: San Francisco Chronicle, May 7, 2007) Three states recently took action on medical criteria language that governs the way that silica lawsuits are decided, according to a May 8 report from the National Stone, Sand & Gravel Association (NSSGA) Washington Watch & eDigest e-newsletter. Oklahoma Gov. Brad Henry (D) vetoed S.B. 50 on April 28, according to the report. The bill was “a sweeping tort reform bill aimed at changing the way negligence and medical malpractice lawsuits are filed and litigated in his state,” according to the report. Henry said he vetoed the bill because of the cap on non-economic damages and provisions on class action and joint and several liabilities, the report said. The Georgia State Senate on April 20 voted 36-3 to accept House changes to S.B. 182, asbestos, and silica medical criteria reform legislation, according to the report. This bill fixes problems with the 2005 law that was struck down by the Georgia State Supreme Court as unconstitutionally retroactive. At Aggregates Manager press time, the bill was on its way to Gov. Sonny Perdue (R), who is expected to sign the legislation into law, the report said. The Missouri House also is close to passing on H.B. 512, “The Asbestos and Silica Claims Priorities Act,” according to the NSSGA report. This bill would require the exposure of asbestos or silica to be a substantial factor resulting in the physical impairment of a claimant and disallow asbestos- or silica-related claims brought on behalf of a class or group. In a final rule published by the U.S. Environmental Protection Agency April 25, states that are not attaining federal air quality standards for fine particles (PM2.5) will have until April 2008 to submit implementation plans outlining the measures they will take to achieve compliance. The Clean Air Fine Particle Implementation Rule sets out the procedures states must use to control emissions from various stationary combustion sources, such as diesel engines, and other sources of nitrogen oxide and sulfur dioxide emissions that form PM2.5. The rule contains guidelines to help states show that they have adopted all reasonably available control measures that are designed to bring non-attainment areas into attainment as soon as practicable, but no later than 2015. It also recommends procedures for determining the earliest date by which an area can meet PM2.5 standards as well as guidance on air modeling. The rule implements the air quality standards that were established in 1997. The standards are 15 micrograms per cubic meter of air, averaged during one year, and 65 μg/m3 averaged throughout 24 hours. The aggregates industry, by and large, does not generate a significant amount of PM2.5 from crushed stone or sand and gravel processing. However, certain combustion-related sources at aggregates operations may be taken into account in a state’s determination of attainment status.
Everything you need to know about operations, equipment, and management can be found in Aggregates Manager. To sign up for a free subscription (for aggregates industry professionals), go to www.Aggman.com/circulation/subform.htmThe long-stalled Water Resources Development Act (WRDA) is expected to be taken up by the Senate this week. The Senate bill provides an authorization for the U.S. Army Corps of Engineers for a wide variety of navigation, flood control and environmental restoration projects. The major construction provision included in the Senate bill is a $4 billion authorization for the Upper Mississippi River and Illinois Waterway system project, more than double a similar provision included in the House bill to construct seven new 1,200 foot locks along the same waterways. Two things have changed. First, the official cost estimate of the bill was released, bumping up the price to $5.5 billion annually over the next five years and $26 billion during the 10-year period after 2012, making it the most expensive water bill in history. This is more than double the House-passed $15 billion WRDA bill, and may go even higher if a number of amendments are accepted. Second, Democrats are expected to accept $140 million worth of Republicans’ projects to equal the cost of new projects inserted at the behest of Sen. Max Baucus (D-Mont.). The original bill was not supposed to include any new projects, but Baucus somehow prevailed and had his project included. Also, there may be an amendment to increase the federal share of projects, reducing the share for which the state and local governments are responsible, which would increase the federal government’s costs. While WRDA bills usually pass by wide margins once they reach the House or Senate floor, the $31.5 billion price tag on the Senate bill could give a few senators a case of buyer’s remorse, thus jeopardizing the bill’s chances. (Source: National Stone, Sand & Gravel Association Washington Watch & eDigest)
Lafarge chairman Bertrand Collomb steps down; CEO Bruno Lafont named PARIS—Lafarge’s chairman Bertrand Collomb has retired and has proposed to the company’s board of directors that Bruno Lafont succeed him as company CEO, a spokesman for the French building materials group told Agence France-Presse. Bertrand Collomb announced that he is stepping down from his role as chairman and will propose that the board of directors appoint Bruno Lafont, as his successor, the spokesman said. (Source: Aggregate Research Industries) MDU Resources announces director’s intent to sell stock BISMARCK, N.D.—MDU Resources Group, Inc. on May 7 announced that outside Director Thomas Everist filed a Form 144 on May 2 with the Securities and Exchange Commission indicating his intent to sell up to 1 million shares of MDU Resources stock within the next three months. Everist owns nearly 3.5 million shares of MDU Resources common stock, or 1.9 percent of outstanding shares. Approximately 3.4 million shares were acquired in the sale of his construction materials company, Connolly-Pacific Co., to MDU Resources in 2000. NSSGA to debut “World of Aggregates Forum & Expo” in 2009 The National Stone, Sand & Gravel Association (NSSGA) announced plans to debut its World of Aggregates Forum & Expo (WAGG) the week of March 8, 2009, in Orlando, Fla. The new show will roll 13 conferences and meetings into one event. The events that will be combined into WAGG include the following:
The show will be held in the off years from CONEXPO-CON/AGG and is scheduled to take place again in 2010. Better Roads announces “Roady the Road Builder” Community Outreach Program DES PLAINES, Ill.—Better Roads magazine, the sister magazine to Aggregates Manager, has launched a community outreach program available to companies involved in road and bridge building, including readers, suppliers, and manufacturers. The program provides tools to inspire the next generation of road builders.
“Teaching children how roads and bridges are built can inspire future careers in construction,” says Mike Porcaro, publisher of Better Roads. “These items serve as long-lasting reminders appropriate for any activities or events involving young kids.” A 20-page coloring book tells the story of “Roady the Road Builder” and introduces children ages 3 to7 into the world of road building and traffic safety. In addition to the basic steps of road building, it covers environmental concerns, safety issues, and heavy equipment.
Aggregates Manager has offered a successful community outreach program for the aggregates market for 10 years. It features the character “Cubee the Aggregate.” “Being an advocate for the markets we serve is very important,” adds Porcaro. “We believe the Roady program, like our Cubee outreach program, makes it easier for our readers to communicate with the youth of their communities.” For more information on the “Roady the Road Builder” community outreach program visit www.BetterRoads.com, or call 800-430-4540. To learn more about the “Cubee the Aggregate” program, visit www.AggMan.com. Ammonium nitrate bill advances in house The House Committee on Homeland Security agreed by voice vote on April 26, to amend a bill regulating the sale of ammonium nitrate and sent it to the House floor. “The Secure Handling of Ammonium Nitrate Act” (H.R. 1680) would require owners, purchasers, and manufacturers of ammonium nitrate to register with the Department of Homeland Security (DHS). As amended, the bill would expedite both the approval and appeals processes for registration. DHS would have to act on an application within 72 hours and rule as quickly as possible on an appeal. Owners of facilities engaged in selling or transferring ammonium nitrate would have to maintain a record of each sale or transfer of ownership. DHS would have to establish a process for the periodic inspection and auditing of these records. While much of the focus on ammonium nitrate is regarding farm fertilizer, it is also a common component in explosives used for blasting at aggregates operations. NSSGA will continue to follow legislative developments on this bill. (Source: National Stone, Sand & Gravel Association Washington Watch & eDigest) Cemex honored for environmental stewardship Cemex USA has been recognized for its contributions to environmental protection and conservation awareness at the first-ever EcoVision conference, EcoVision 2007, in Washington, D.C. EcoVision 2007 is a bi-partisan, international environmental initiative aimed at providing earth monitoring information to environmental stakeholders around the world. Department of Justice adds Rinker as defendant in Cemex antitrust case The U.S. Department of Justice (DOJ) amended its antitrust complaint against Mexican cement company Cemex S.A.B. de C.V. regarding its acquisition of Australia-based Rinker Group Ltd., now naming Rinker as a defendant in the case, according to a May 2 filing by the U.S. DOJ in the U.S. District Court in Washington, D.C. The amended filing in United States of America vs. Cemex S.A.B. de C.V. and Rinker Group Ltd. follows the Rinker Board of Director’s approval to accept Cemex’s cash offer of $15.85 per share. The U.S. DOJ also filed a hold a hold separate stipulation and order the same day, which requires both companies to preserve the assets to be divested under the consent decree and to keep their assets separate until the required divestitures have been completed. To view the filings, go to www.usdoj.gov/atr/cases/f223000/223026.pdf and www.usdoj.gov/atr/cases/f223000/223028.htm . MSHA determines lightning started Sago Mine explosion The Mine Safety and Health Administration (MSHA) has determined that lightning was the likely ignition source for the explosion in an abandoned area of the Sago Mine on Jan. 2, 2006. The explosion produced forces far exceeding the strength of the alternative seals meant to keep the explosion from affecting miners in a working section of the mine, according to a statement issued by the government agency. Beginning in 1992, seals constructed from alternative materials were permitted in underground coal mines provided they could withstand an overpressure of 20 pounds per square inch (psi), according to MSHA. Lafarge first-quarter profit surges on disposals PARIS—French cement company Lafarge SA on May 3 said net profit surged in the first quarter of 2007 after selling its roofing division and a Turkish unit. The company also gave a positive outlook, saying the “first quarter trends confirm our positive view overall of our markets for 2007.” Net profit in the first quarter was euro362 million ($492 million), up from euro58 million a year earlier. First-quarter operating profit rose 58 percent to euro345 million ($469 million). Sales rose 6 percent to euro3.7 billion ($5 billion). Analysts said the results were above expectations as net income was expected to be euro548 million ($744.62 million), according to an analysts’ poll by JCF Group. ABN Amro said the operating profit rise was 39 percent ahead of consensus. Lafarge shares were trading 3 percent higher at euro125.25 ($170.19) at midmorning, outperforming a broadly positive market. The company also benefited from favorable weather in Europe and Asia during the first three months of the year, boosting the construction sector, and helping offset lower sales in the U.S. Price increases, notably in the aggregates and concrete and cement divisions, and cost control measures also helped the company ameliorate the impact of the U.S. slowdown. (Source: Associated Press) Cement maker Holcim more than doubles first-quarter net profit JONA, Switzerland—Cement maker Holcim Ltd. said that its first-quarter net profit more than doubled thanks to strong demand in emerging markets and higher prices. Holcim, which has recently made substantial acquisitions in India and in building aggregates, reported a net profit of 356 million Swiss francs (US$294 million; €216.4 million) in the January-March period. That compares with 170 million francs in the first quarter last year and easily beat market expectations. Operating profit rose 44 percent to 904 million francs (US$744 million; €547.5 million), while sales increased 24 percent to 5.73 billion francs (US$4.72 billion; €3.47 billion). Both results also beat analysts’ expectations. Holcim shares climbed 0.6 percent to 132.30 francs (US$108.89; €80.14) in Zurich. The company said it expects demand will remain strong this year and reiterated its growth target of 5 percent in internal operating earning before interest, taxes, depreciation, and amortization. In the first quarter, EBITDA growth was 19 percent. Chief Executive Markus Akermann said the company would revise its outlook in the next few months. Analysts were pleased with the results. Serge Rotzer from Zurich-based private bank Vontobel said he many increase his estimates, which already factor in strong growth. Holcim is expanding in important Asian markets such as China and India, where it is now the second-largest cement maker in sales. Its planned takeover of China’s Huaxin Cement is on hold because Beijing has yet to approve the deal. Akermann said Holcim was flexible as to the level of its stake in Huaxin, indicating it may seek less than majority ownership. Holcim, which said it bought a 47.3 percent stake in Singapore’s Jurong Cement Ltd. for around US$30 million (€22.1 million), competes against Paris-based Lafarge SA and Mexican cement maker Cemex. Lafarge said its first-quarter net profit soared to €362 million (US$491.9 million) from €58 million a year earlier, boosted by the sale of its roofing division and a Turkish unit. Cemex said last month that net profit fell 21 percent because its earnings in the first three months of 2006 were boosted by a one-time anti-dumping settlement. (Source: Associated Press via International Herald Tribune) Florida Rock posts lower first-quarter profit Florida Rock Industries Inc., a provider of sand, gravel, and crushed stone to the construction industry, said on April 30 that its fiscal second-quarter profit plunged amid a decline in residential construction. For the quarter ended March 31, the company earned $26.2 million, or 39 cents per share, down from $57.8 million, or 86 cents per share, during the same period a year before. Revenue fell to $249.4 million from $364.1 million. Analysts, on average, projected earnings of 64 cents per share, according to a poll by Thomson Financial. The company said lower sales volume and declining sales prices for cement and concrete blocks hurt the quarter’s results. While the decline in residential construction has been “immediate and large,” the company is encouraged by positive trends in Florida, said John Baker, president and chief executive, in a statement. Shares closed up 37 cents at $69.12 on the New York Stock Exchange, after hitting a 52-week high of $69.94 earlier in the day. The stock’s previous 52-week high of $69 was set in February. (Source: Associated Press) Martin Marietta first-quarter profit up 6 percent RALEIGH, N.C.—Martin Marietta Materials Inc., which makes and markets aggregates for the construction industry, said that its first-quarter profit rose 6 percent, as cost controls and price hikes offset a decline in shipments. The company’s stock price fell, however, as its full-year earnings guidance remained below Wall Street’s current estimate. Quarterly earnings increased to $33 million, or 73 cents per share, from $31 million, or 66 cents per share during the same period last year. Revenue fell 4 percent to $462.2 million from $482.9 million. Analysts polled by Thomson Financial forecast a profit of 72 cents per share on revenue of $467.2 million. The company said its volume of aggregate shipments in the quarter fell 15 percent to 36,275 tons from 42,475 tons a year ago. Martin Marietta cited severe weather conditions, particularly in the West and in Indiana and Ohio. But at the same time, Martin Marietta said it trimmed its quarry-level production costs in the quarter by paying its work force 15 percent less as productivity rose by 3.5 percent. Martin Marietta also raised prices in the period. Martin Marietta reiterated its previous full-year earnings guidance of $6.10 per share to $6.65 per share, compared with the analysts’ consensus forecast of $6.67 per share. Shares of Marietta fell $5.34, or 3.6 percent, to $144.77 in morning trading. (Source: Associated Press) HeidelbergCement may offer to buy Hanson HeidelbergCement AG, Germany’s biggest cement maker, on May 3 said it may offer to buy Hanson Plc, the world’s largest supplier of crushed rock. Hanson stock surged 20 percent, giving a market value of 7.32 billion pounds ($14.6 billion.) “HeidelbergCement is currently reviewing its options with respect to its interest in Hanson, including the possibility of seeking to acquire the company,” the Heidelberg, Germany-based company said in a statement. Acquiring Hanson would boost HeidelbergCement’s revenue by more than two-thirds, add operations in Australia and bolster its range of products such as crushed rock, concrete pipes and bricks. The German company, which gets about half its sales from cement, has expanded in Asia and Eastern Europe to counter a decade-long construction slump at home. HeidelbergCement is unlikely to pay more than 1,100 pence a share for Hanson, said Tobias Woerner, an analyst at Man Securities in London, with a “neutral” recommendation on both companies. That would value the company at 7.85 billion pounds. He said the purchase makes sense because the German company could use Hanson’s outlets in the U.K. and U.S. to sell its products. The British company’s shares closed today at 1,025 pence. HeidelbergCement said on March 2 that it plans to sell its 35 percent stake in French building-materials supplier Vicat SA to help fund expansion of its main business. The holding was valued at 1.4 billion euros at the time. (Source: Bloomberg, May 3, 2007. By Brian McGee and Sophie Kernon)
Special Report Making Sense of the Mega Mergers
When it comes to the aggregates industry, size does matter. Mergers and acquisitions continually occur — it’s just part of normal business. But it usually seems as if larger companies snatch up the smaller and mid-size operations. However, during the past couple of years, even the larger operations haven’t been immune to the pandemic of M&As — even top 10 aggregate companies have started buying each other up. The big get bigger The most recent rash of the big fish eating the even bigger fish began with Holcim’s acquisition of Aggregate Industries, which later acquired Illinois-based Meyer Material Co. in mid-2006. Then Hanson Building Materials bought out the Chicago area-based Material Service Corp. last year as well.
Once the pending Vulcan/Florida Rock and Cemex/Rinker acquisitions are finalized, the Top 10 producer list will show some changeup, with some of the companies swapping places. What’s the order, anyway?
Jason Christopher Willett, crushed stone specialist with the U.S. Geological (USGS), says he had anticipated that Cemex/Rinker would knock Oldcastle down from its No. 3 spot, but some new 2006 data Willett has collected suggests that Oldcastle will hang on to its current ranking. “The APAC (Ashland Paving and Construction Inc., No. 11 in the current Top 10 list) purchase and some other smaller ones made the difference,” Willett says. Cemex/Rinker and Hanson are tied for fourth because they are close enough that Willett says their rankings could be in his margin of error when calculating the rankings. While the top rankings come so close that only a margin of error may determine ranking level, Vulcan is very clearly the frontrunner in terms of production and ranking. In fact, it has been rumored that No. 1 ranked Vulcan may have to liquidate some of its assets before its acquisition of Florida Rock can be approved. When Aggregates Manager contacted Vulcan about the issue with a request for comment and to confirm the rumor, a Vulcan spokesman says the company “prefers not to comment at this time.” That statement reflects the typical position taken by companies undergoing such transactions. We do know that the U.S. Department of Justice is looking into the merger and assessing whether Vulcan must sell off some of its operations. Valentin Tepordei, the recently retired USGS crushed stone specialist and an expert in this marketplace, says it’s quite possible that in the parts of Florida where there are only Florida Rock and Vulcan operations, Vulcan may not be able to buy Florida Rock. “They may not allow them to own both,” Tepordei tells Aggregates Manager. “The Justice Department wants them to have two or three producers in each area.” Will smaller companies survive? Are these mega mergers and acquisition attempts by the big guys to dominate markets and push up prices? There has been talk that Lafarge and Hanson serve as evidence of this when they began organizing in the Chicago market. Where does this leave the small and mid-sized firms? H. John Head, a consultant for Wheaton, Ill.-based Continental Placer, says small companies will likely benefit in the short term as prices rise in the marketplace. But long-term, these companies will become targets for acquisitions themselves, he says, citing Lafarge’s acquisition of Illinois-based Feltes Sand & Gravel within 12 months of its acquisition deal with Rein, Schultz & Dahl. Bill Watkins, managing director of National City Capital Markets and author of Aggregates Manager’s monthly Market Situation report, says the Vulcan/Florida Rock and Cemex/Rinker deals illustrates the trend of the big getting bigger. “During the past few years, larger international companies — particularly vertically integrated cement producers, have been changing the competitive landscape in the U.S. materials market,” Watkins points out. “These large companies, like Cemex, want to eventually control as much of the regional supply chain as possible, including aggregates, concrete, cement, and other related products — essentially a quarry-to-customer strategy with all of the products in between.” Although Cemex has a “burgeoning position in the U.S. market,” Watkins says, it doesn’t have as strong of a presence in the regionals with more favorable long-term trends, such as Florida and Phoenix. Cemex will most likely have to divest its operations that are “unique and valuable assets,” but the amount of divestitures pales in comparison to the total transaction, he says. “The ‘new’ Cemex will clearly be the largest U.S. producers of ready-mixed concrete and will likely crack the top five in terms of aggregates production,” Watkins points out. (See chart for tentative top 10 following completion of the deal.) Rinker is currently No. 6 and Cemex is No. 8. Although the Cemex/Rinker deal will most likely take time for Cemex to digest, integrate, and reduce debt, this combined entity will have strong leverage in the future over small market participants, Watkins predicts. He says this will ultimately lead to stronger competition and more mergers and acquisition deals because smaller, private operators may just want to sell rather than compete. “The future pricing potential in these markets should be plentiful,” Watkins says. International producers ‘dwarf’ U.S. ones The Vulcan/Florida Rock combination is just as interesting. The tremendous growth of international companies such as Cemex, CRH, Lafarge, and Holcim still dwarfs many of the larger U.S. operators in terms of revenues and earning size, Watkins says. Although Vulcan is the top U.S. aggregates producer and Florida Rock comes in at No. 10, the companies’ estimated, combined revenue of $4.7 billion is still much smaller than the larger market participants, he says. “While both Vulcan and Florida Rock were leading independent producers, the combination clearly brings synergies, product diversity — Florida Rock is the sixth-largest ready-mixed concrete producer in the United States, and geographic diversity to both businesses,” Watkins notes. “The combination provided an outlet to the two businesses. Essentially combined, they can control their destiny better than independent.” This puts No. 2 producer Martin Marietta Materials in an interesting position. With more than $2 billion in annual revenue, the company is sizeable and controls well-positioned assets, Watkins explains. Martin Marietta’s stock price has risen since the beginning of this year. At Aggregates Manager press time in late April, Martin Marietta’s stock price was at $133 per share. This is a dramatic rise from its $110 per share in mid-January. “While most materials producers also have had price gains, one could argue that investors have speculated that Martin Marietta may now be a takeover target since it is the smallest remaining — in terms of revenue — U.S. publicly traded aggregates company. Although companies continue to make bolt-on acquisitions, the larger companies realize that the only way to grow shareholder value is to make a meaningful transaction — hence the big keep getting bigger.”
Roll-Rite has improved its retrofit kit used to electrically power truck bed tarping systems. The company’s new 10900 electric kit boasts a heavy-duty relay with silver alloy (rather than copper) contacts for increased resistance to corrosion. The new relay exceeds the 30-amp rating required to run Roll-Rite tarp systems. The company claims its kit is often retrofitted to run competitive electric tarping systems as well as the Roll-Rite products. Construction truck debuts Sterling has unveiled a new heavy-duty vocational truck developed especially for the construction and government markets. The new Set-Forward Sterling is said to be more functional and offer better visibility and easier maintenance than previous models. Features include a sleek hood design that improves sight range by 12 percent and is formed from a weight-saving material. More power, less fuel
The extra horsepower feeds across the board performance improvements: 6 percent more swing torque, 39 percent more hydraulic flow, 20 percent faster arm roll-in, and 15 percent faster boom lower/arm movement. The new model also has 2,400 pounds more operating weight for better stability and lift capacity, and strengthened undercarriage, X-beam, side frames, idler attachment, and front attachment for longer service life.
For more new products for the industry, check out
the
RollOuts
section
|
Items
include an educational coloring book and t-shirt featuring the
cartoon pickup truck character, “Roady the Road Builder.” The items
are designed to add some fun to community events, open houses,
employee family events, and local grade school educational programs.
A
companion to the coloring book is the colorful “Roady” T-shirt
available in five sizes from Youth XS to Adult Small — a perfect
gift for youngsters. 
The
larger buying up the large has continued into this year with top
U.S. producer Birmingham, Ala.-based Vulcan Material Co. working out
the details to make its acquisition of Florida Rock official, and at
Aggregates Manager e-News
press time, Mexico-based Cemex’s continued attempt of a hostile
takeover of Australia-based Rinker Materials. At Aggregates
Manager press time, Cemex had upped its takeover offer to
$15.85 per share — a 22-percent increase of Cemex’s original bid —
and Rinker’s board was recommending that its shareholders accept the
higher offer. 
Vulcan
will remain at No. 1, but No. 8 Cemex will move up to fourth place,
according to U.S. Geological Survey (USGS) estimates prepared for
Aggregates Manager. The estimates are based on current
production data for the companies involved in these deals. (See the
March 2007 issue of Aggregates Manager for the 25 Top
Companies special report.)
Improved electric tarping system
Hitachi says the new 37,900-pound ZX160LC-3
gets 10 percent more horsepower from its Tier 3 engine than the
preceding model had, but uses less fuel thanks to a three-mode
operating system. The company says the dash-3 can use up to 13
percent less fuel in Economy mode than the single-mode model it
replaces. Terex chairman and chief executive Ronald DeFeo has ruled out entering the hire market and said he is on the lookout to buy manufacturers, according to www.contractjournal.com.
Chevron Products Co., has launched Heavy Iron, a new bi-monthly online information resource. Heavy Iron targets industry professionals in the construction market who are responsible for the maintenance of heavy-duty construction equipment and for increasing the efficiency and reliability of off-highway fleets.
Heavy Iron is online at www.HeavyIronNews.com and as a free e-mail subscription.
Volvo has finalized its acquisition of U.S.-based Ingersoll Rand’s road development equipment division, other than operations in India, which will follow shortly. The division was consolidated in the Volvo Group as of May 1. The transaction, which was initially announced on Feb. 27, was complete on April 30.
Volvo has now received the necessary approvals from the relevant authorities and other permits required to conclude the acquisition in all countries except India, which is expected to follow shortly.
Dyno Nobel Ltd. has signed an agreement to acquire a 50-percent stake in Sasol Dyno Nobel (SDN), a South African initiation systems manufacturer, for US$34.5 million.
The latest people news on who’s who and who has moved where within the industry. |
Shawn Rasey, currently Bridgestone Firestone executive director of North American sales, Off-Road Tire, has been named executive director, Off-Road Tire.
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.Interested in being a sponsor of our newsletter? Contact your sales representative for more information. Click here for list of contacts.
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