Brian Schmidt, Sr. Market Intelligence Analyst 847.972.9042 > [email protected]

April 29, 2014

Capacity Update Overview Since the end of 2010, only 1.1 million metric tons of clinker capacity has been added to the domestic supply potential. No new capacity expansions are expected to materialize during 2014 or 2015. This represents a significant shift from 2000-2010, when the industry averaged nearly 2.5 million metric tons of expansions or greenfields annually. Similarly, since the economic downturn, 18 plants totaling 10.8 million metric tons of capacity have closed – a combination of temporary and permanent actions. These closure totals must be kept in the context that in the ten years leading up to the recession, kiln retirements averaged less than half a million metric tons annually. Even with the postponement of expansion projects, reduction in capacity through plant closures or extended maintenance downtimes, and cutback in imports, a massive market imbalance was generated by the deep and prolonged recession. In the advent of a healthier construction sector, this imbalance has tapered. PCA’s latest projections for cement consumption suggest sustained growth though the forecast horizon. Given a domestic capacity scenario characterized by furloughed plants and delayed expansions, utilization rates are expected to recover in tandem with more robust cement shipments.

Capacity Utilization

Annual Production Divided by Capacity

Plant Expansions In the period from 2008-2010, plans of 15.2 million metric tons of new capacity were announced. Of that, 13.7 mmt of capacity materialized – an estimated investment of $3.7 billion. Announced projects beginning in 2011 have followed a sustained pattern of postponements. Of the seven expansions or greenfields reported for 2011-2014, totaling 7.6 mmt of capacity, one project accounting for 14% of the expected capacity came to fruition. Approximately 7.2 million metric tons of new clinker capacity is scheduled to come on-line during the forecast horizon. PCA assumes half of the stated capacity materializes by 2018. If this assumption proves correct, domestic capacity will reach around 103 million metric tons of clinker capacity from current levels of just under 100 mmt, with no other offsetting adjustments.

Plant Closures Market imbalances are generated by either changes in consumption, capacity, or both. The collapse of cement consumption during the downturn created a huge market imbalance. Typically, import reductions can absorb a large amount of the imbalance, but given the magnitude of the decline in consumption, companies were forced to extend maintenance shutdowns or close plants entirely. As a result, in less than a five-year span, the U.S. cement industry experienced an unprecedented 18 plant closures. These closures represent a combination of temporary and permanent shut downs totaling 10.8 million metric tons of clinker capacity. Eleven plants with a capacity of 5.9 million metric tons are denoted as permanently closed. PCA expects one third of the remaining capacity currently classified as temporary could become permanent. While the re-opening of closed plants will depend upon the market fundamentals of each region, plants are not expected to come back on-line until industry operating rates surpass 80% utilization.

Regional Considerations Regional variations in plant closures and potential re-openings exist due to disparities in the economic climate and pace of market recoveries throughout the United States. Construction recoveries will continue to emerge in local markets before being reflected in national numbers. Homebuilders, for example, are unlikely to significantly accelerate construction activity until two critical conditions are met: 1) low levels in inventory of unsold new homes reflecting no higher than five months supply, and 2) stable or rising home prices. Both conditions are now increasingly being met and signaling the residential construction recovery – the speed and magnitude continue to vary by region. Regions with weakest residential fundamentals will likely lead the market in rates of growth given years of under-building. However, compared to past peaks, these regions with the weakest fundamentals will remain below national averages in terms of overall recovery progress.

2

Regional Utilization Rates, 2013

SOURCE: USGS * States grouped according to USGS clinker-producing region

Limestone and Processing Additions In addition to adjustments to clinker capacity, changes in U.S. specifications allowing for increased use of limestone and inorganic materials (slag & fly ash) in portland cement could increase potential domestic supply. Depending on how plants elect to exercise this specification option, domestic cement supply could increase more than 3.6 million metric tons annually by 2016. PCA assumes that the conversion of clinker capacity into cement supply rises from roughly a 5.0% gypsum premium – the norm in prior decades – to approximately an 8% gypsum/limestone/inorganic premium by 2018. By 2020, the use of ASHTO/ASTM Type IL limestone cements could add significantly to domestic cement supply. These cements represent greater use of limestone additives and as a result translate into an expansion in cement supply given a fixed level of clinker capacity. Such acceptance of these cements will likely be driven by efforts to attain a lower carbon footprint. Potential climate change policy initiatives during the forecast horizon may add further to the usage of these cements. These cements have the potential of a 15% limestone additive and wide acceptance across many project uses. Conceivably, these cements could result in a higher conversion of clinker capacity to cement supply.

Future Capacity Assessments The portland cement industry in the United States is currently comprised of 29 clinker-producing companies operating more than 150 kilns. Domestic clinker capacity including “temporary” shut down plants represents over 103 million metric tons. PCA expects one third of capacity categorized as temporarily shut down may eventually become permanent.

3

Predicting U.S. capacity through the forecast horizon carries risk. Combining all announced plans, including postponed projects and no additional plant shutdowns, through 2018 totals nearly 17 million metric tons. This implies capacity could reach 120 million metric tons by the end of the forecast horizon. PCA has incorporated much more conservative assumptions regarding the domestic supply outlook. Many of the expansion projects planned reflect a sustained pattern of postponements. It is possible that at least some of these plants will either be postponed further or scrapped entirely. PCA expects that virtually none of the postponed projects from 2009-2013 will materialize through 2018. Additionally, PCA assumes half of the announced expansions in 2016-2018 come on-line in the time-frame currently expected. Furthermore, wet kiln capacity is currently at 6.7 million metric tons. In the context of rising energy prices and EPA regulations it is possible that some of these plants could face closure by the end of the forecast horizon. Future capacity levels are uncertain and based on several key assessments including: •

The proportion of “temporary” closures that may become permanent.

•

The rate at which wet kilns are retired in the context of rising energy prices.

•

The amount of tonnage lost due to the NESHAP regulation.

•

The extent postponed expansion projects actually materialize during the forecast horizon.

Plant Re-Openings: No plants that have been closed due to economic distress have been re-opened. PCA assumes that re-openings will not materialize until an 80% utilization rate can be achieved. This is considered a trigger point. Shut down plants in overlapping regions complicate the re-opening process as these decisions must consider the interdependence of regional supply. Regional economic and construction recoveries, which are expected to occur with varying strengths and timing, will play a critical role in determining re-openings. Due to expected demand conditions, it is likely that shut downs in the central areas of the United States will be among the first to re-open. Wet Kiln Retirement: Wet kiln clinker capacity has been in decline every year since the installation of the last wet kiln built more than 35 years ago. In 1990, wet kiln clinker capacity was approximately 25.5 million metric tons, or around 31% of total U.S. capacity. The clinker capacity of wet kilns now stands at 6.7 million metric tons, or roughly 7% of total capacity. In the context of current economic distress, the potential for higher energy prices in the future, and impending EPA regulations, the pace of wet kiln retirement is expected to continue unabated. Consider the following: •

The wet kiln process is older, with the last kiln built more than 35 years ago. PCA estimates that the average capital investment required to comply with EPA regulations per plant is roughly $50 million. Compliance costs are typically higher for wet kilns; the older the plant, the shorter the remaining life to capitalize compliance costs and increases the likelihood of a plant shut down.

•

Energy prices are rising. Based on PCA’s Labor-Energy report, the wet kiln process is 59% more energy intensive compared to dry kilns. Based on the composition of fuel consumption for wet and dry plants, coupled with prevailing energy prices, PCA estimates rising relative costs per ton for wet kilns. The Energy Information Agency expects energy prices will continue to rise in the near-term and accelerate during the ‘out-years’ of the forecast horizon

4

NESHAP Impact: Industry compliance with NESHAP standards must be realized in September 2015. The adjustments in regulation which are reflected in the final EPA ruling may force cement plants to close. The degree, however, in capacity reduction could be more modest than originally anticipated. Furthermore, some plants which were candidates for closure under NESHAP have already been permanently closed. New Capacity Plans: The potential increase in domestic capacity during 2012-2018 is probably overstated by raw capacity announcements. Many of the expansion projects planned for 2012-2018 reflect a sustained pattern of postponements. Given the outlook for consumption in the near-term, it is possible that some of these plants could be postponed further. PCA assumes half of the stated capacity expansions or greenfields in 2016-2018 materialize and no new capacity is added beyond these announced plans. This assumption may have merit. Large multinational companies dominate ownership of the United States cement industry. Within a multinational company, each geographic region, such as the United States, competes against other global regions for scarce corporate investment dollars. The rate of return on new capacity investment in the United States is compared against returns in other countries. Current financial distress caused by low utilization rates and an uncertain regulatory environment could reduce expected returns on investments in the United States and contribute to corporate decisions to wait-and-see before making further investments in the United States.

Imports Import terminals in the U.S. are predominantly owned by cement producing firms, and as such import shares are dependent upon domestic operating conditions. Excluding structural trade flows between the United States, Canada and Mexico, significant increases in imports are not expected to emerge until capacity utilization far exceeds 80%, and temporarily closed plants return to production. PCA expects import shares to remain stable in the near-term as a recovery in cement consumption is met with ramped up utilization rates. However, during the end of the forecast horizon and beyond, import shares are projected to accelerate as growing demand faces domestic supply that is pushing its operating limits and constrained by environmental regulation.

Long Term Considerations Braced with expansive population and economic growth as well as new demand for cement in the form of green building and energy needs, domestic cement supply could show signs of stress by 2025 with the potential for a supply gap in the years following. This supply void is roughly estimated to eventually reach nearly 45 million metric tons by 2035, or 24% below projected cement consumption levels. Large investments, in either new import terminals or new domestic capacity, may be required to close the supply gap. Sourcing decisions for the United States’ market are likely to be made in the context of climate change legislation, rigid NESHAP regulations, sustained high energy costs, and moderate-torobust economic growth among the world’s transitional and emerging economies which may imply high international freight rates. If a pure domestic strategy is undertaken, as many as 21 new cement plants, an investment of roughly $13 billion, would have to be constructed between 2017-2035. An approach with solely imports would require 64 new terminals, roughly a $700 million investment, between 20252035 and import shares would break 50%. Solving the supply gap by increased imports has its drawbacks. The availability of foreign suppliers, uncertainty surrounding freight rates, and port congestion all play into the level of ease in which the United States’ cement supply needs can be fulfilled through imports. Sustained growth in transitional and emerging economies and their near endless appetite for bulk raw materials, as well as the strong correlation between international oil prices and drybulk freight rates could provide significant challenges for using imports to close the supply gap. 5

Capacity Expansion

(Clinker, Thousands of Short Tons ) Update: 04/22/2014 Existing

Expanded

On-Line

Capacity*

Capacity*

2008 2,430 $608

2009 8,155 $2,039

2010 4,155 $1,039

2011 330 $83

2012 1,200 $300

2013 0 $0

2014 0 $0

2015 0 $0

2016 2,426 $607

2017 1,944 $486

2018 2,300 $575

Total 23,320 $5,830 0

Brooksville, Florida New Braunfels, Texas Hannibal, Missouri Oro Grande, California

2008 2008 2008 2008

667 999 611 1,236

1,563 2,313 1,045 2,172

448 1,314 434 234

448 0 0 702

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

896 1,314 434 936

Sumterville, Florida Festus, Missouri Fernley, Nevada Martinsburg, West Virginia Pueblo, Colorado St. Genevieve, Missouri

2009 2009 P** 2009 2009 2009

1,340 498 805 -

1,011 2,424 1,764 951 4,101

0 0 0 0 0 0

1,011 1,084 0 959 951 3,000

0 0 0 0 0 1,101

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

1,011 1,084 0 959 951 4,101

Foreman, Arkansas Paulden, Arizona Newberry, Florida Bath, Pennsylvania Harleyville, South Carolina

2010 2010 2010 2010 P**

962 789 617 1,078

2,405 660 1,641 1,046 2,478

0 0 0 0 0

0 0 0 0 0

1,443 330 852 429 0

0 330 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

1,443 660 852 429 0

P**

-

1,500

0

0

0

0

0

0

0

0

0

0

0

0

P** P** P** P** 2012

1,468 632 855 860

1,900 2,079 2,060

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 1,200

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 1,200

Ragland, Alabama

P**

991

2,291

0

0

0

0

0

0

0

0

0

0

0

0

Perry, Georgia

P**

-

900

0

0

0

0

0

0

0

0

0

0

0

0

Grand Chain, Illinois Maryneal, Texas

2016 2016

1,118 500

2,944 1,100

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

1,826 600

0 0

0 0

1,826 600

Chicago, Illinois Ravena, New York

2017 2017

1,852

1,000 2,796

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

1,000 944

0 0

1,000 944

Castle Hayne, North Carolina

2016

-

2,300

0

0

0

0

0

0

0

0

0

0

2,300

2,300

-

572

952

-

-

-

-

-

-

-

-

-

-

-

380

18,450

47,396

2,430

8,155

4,155

330

1,200

0

0

0

2,426

1,944

2,300

23,320

Company Location Total Expansion - Estimated Dollar Investment ($ Millions)

Expansion

2008 Cemex (South) Cemex Continental Cement Texas Industries 2009 American Cement Co. (G) Buzzi Unicem Eagle Materials Essroc Cement GCC America (G) Holcim (G) 2010 Ash Grove Cement Drake Cement (G) Vulcan Materials Giant Cement Argos USA 2011 Sumter Cement Co. (G)

Center Hill, Florida

2012 CalPortland Cemex (G) Eagle Materials Lehigh Texas Industries Inc

Rillito, Arizona Seligman, Arizona Laramie, Wyoming Mitchell, Indiana New Braunfels, Texas

2013 National Cement 2015 Houston American (G) 2016 Lafarge Buzzi Unicem 2017 Universal Cement (G) Lafarge 2018 Titan America (G) Unspecified Cemex

Odessa, Texas

Net United States Capacity Changes** (G) Greenfield (P**) Postponed - no additional information available * Source: PCA Plant Information Summary 2010 ** Total includes capacities with unspecified dates

Source: PCA Market Intelligence Based on publicly available sources believed to be reliable; however, accuracy cannot be guaranteed. The Portland Cement Association assumes no legal responsibility for the outcome of decisions or commitments made on the basis of this information.

Capacity Expansion

(Clinker, Thousands of Metric Tons ) Update: 04/22/2014 Existing

Expanded

On-Line

Capacity*

Capacity*

2008 2,204 $608

2009 7,398 $2,039

2010 3,769 $1,039

2011 299 $83

2012 1,089 $300

2013 0 $0

2014 0 $0

2015 0 $0

2016 2,201 $607

2017 1,764 $486

2018 2,087 $575

Total 21,156 $5,830 0

Brooksville, Florida New Braunfels, Texas Hannibal, Missouri Oro Grande, California

2008 2008 2008 2008

605 906 554 1,121

1,418 2,098 948 1,970

406 1,192 394 212

406 0 0 637

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

813 1,192 394 849

Sumterville, Florida Festus, Missouri Fernley, Nevada Martinsburg, West Virginia Pueblo, Colorado St. Genevieve, Missouri

2009 2009 P** 2009 2009 2009

1,216 452 730 -

917 2,199 0 1,452 863 3,720

0 0 0 0 0 0

917 983 0 870 863 2,722

0 0 0 0 0 999

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

917 983 0 870 863 3,720

Foreman, Arkansas Paulden, Arizona Newberry, Florida Bath, Pennsylvania Harleyville, South Carolina

2010 2010 2010 2010 P**

873 716 560 978

2,182 599 1,489 949 2,248

0 0 0 0 0

0 0 0 0 0

1,309 299 773 389 0

0 299 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

1,309 599 773 389 0

P**

-

1,361

0

0

0

0

0

0

0

0

0

0

0

0

P** P** P** P** 2012

1,332 573 776 780

1,724 1,886 1,869

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 1,089

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 1,089

Ragland, Alabama

P**

899

2,078

0

0

0

0

0

0

0

0

0

0

0

0

Perry, Georgia

P**

-

816

0

0

0

0

0

0

0

0

0

0

0

0

Grand Chain, Illinois Maryneal, Texas

2016 2016

1,014 454

2,671 998

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

1,657 544

0 0

0 0

1,657 544

Chicago, Illinois Ravena, New York

2017 2017

1,680

907 2,301

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

907 856

0 0

907 856

Castle Hayne, North Carolina

2016

-

2,087

0

0

0

0

0

0

0

0

0

0

2,087

2,087

-

519

864

-

-

-

-

-

-

-

-

-

-

-

345

16,738

42,614

2,204

7,398

3,769

299

1,089

0

0

0

2,201

1,764

2,087

21,156

Company Location Total Expansion - Estimated Dollar Investment ($ Millions)

Expansion

2008 Cemex (South) Cemex Continental Cement Texas Industries 2009 American Cement Co. (G) Buzzi Unicem Eagle Materials Essroc Cement GCC America (G) Holcim (G) 2010 Ash Grove Cement Drake Cement (G) Vulcan Materials Giant Cement Argos USA 2011 Sumter Cement Co. (G)

Center Hill, Florida

2012 CalPortland Cemex (G) Eagle Materials Lehigh Texas Industries Inc

Rillito, Arizona Seligman, Arizona Laramie, Wyoming Mitchell, Indiana New Braunfels, Texas

2013 National Cement 2015 Houston American (G) 2016 Lafarge Buzzi Unicem 2017 Universal Cement (G) Lafarge 2018 Titan America (G) Unspecified Cemex

Odessa, Texas

Net United States Capacity Changes** (G) Greenfield (P**) Postponed - no additional information available * Source: PCA Plant Information Summary 2010 ** Total includes capacities with unspecified dates

Source: PCA Market Intelligence Based on publicly available sources believed to be reliable; however, accuracy cannot be guaranteed. The Portland Cement Association assumes no legal responsibility for the outcome of decisions or commitments made on the basis of this information.

Capacity Expansion

(Clinker, Thousands of Short Tons ) Update: 04/22/2014

Company Total Expansion - Estimated Dollar Investment ($ Millions)

Location

On-Line

Existing Capacity*

Expanded Capacity*

2008 2,430 $608

2009 8,155 $2,039

2010 4,155 $1,039

2011 330 $83

2012 1,200 $300

Expansion 2013 2014 0 0 $0 $0

2015 0 $0

2016 2,426 $607

2017 1,944 $486

2018 2,300 $575

Total 23,320 $5,830

New England Middle Atlantic Giant Cement Lafarge

Bath, Pennsylvania Ravena, New York

2010 2017

617 1,852 2,469

1,046 2,796 3,842

0 0 0

0 0 0

429 0 429

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 944 0

0 0 0

429 944 1,373

Grand Chain, Illinois Mitchell, Indiana Chicago, Illinois

2016 P** 2017

1,118 855 1,973

2,944 2,079 1,000 6,023

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

1,826 0 0 1,826

0 0 1,000 1,000

0 0 0 0

1,826 0 1,000 2,826

Hannibal, Missouri Festus, Missouri St. Genevieve, Missouri

2008 2009 2009

611 1,340 1,951

1,045 2,424 4,101 7,570

434 0 0 434

0 1,084 3,000 4,084

0 0 1,101 1,101

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0

0 0 0

434 1,084 4,101 5,619

0

0

Subtotal

East North Central Lafarge Lehigh Universal Cement (G) Subtotal

West North Central Continental Cement Buzzi Unicem Holcim (G) Subtotal

South Atlantic Cemex (South) American Cement Company (G) Essroc Vulcan Materials Argos USA Houston American Cement (G) Sumter Cement Company (G) Titan America Subtotal

Brooksville, Florida Sumterville, Florida Martinsburg, West Virginia Newberry, Florida Harleyville, South Carolina Perry, Georgia Center Hill, Florida (G) Castle Hayne, North Carolina

2008 2009 2009 2010 P** P**` P** 2018

667 805 789 1,078 3,339

1,563 1,011 1,764 1,641 2,478 900 1,500 2,300 13,157

448 0 0 0 0 0 0 0 448

448 1,011 959 0 0 0 0 0 2,418

0 0 0 852 0 0 0 0 852

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 2,300 2,300

896 1,011 959 852 0 0 0 2,300 6,018

P**

991 991

2,291 2,291

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

2010 2012 2008 2016

962 860 999 500 572 3,893

2,405 2,060 2,313 1,100 952 6,778

0 0 1,314 0 1,314

0 0 0 0 0

1,443 0 0 0 1,443

0 0 0 0 0

0 1,200 0 0 1,200

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 600 600

0 0 0 0 0

0 0 0 0 0

1,443 1,200 1,314 600 380 4,937

East South Central National Cement

Ragland, Alabama Subtotal

West South Central Ash Grove Cement Texas Industries Inc Cemex Buzzi Unicem Cemex

Foreman, Arkansas New Braunfels, Texas New Braunfels, Texas Maryneal, Texas Odessa, Texas

Unspecified

Rillito, Arizona Paulden, Arizona (G) Laramie, Wyoming Fernley, Nevada Pueblo, Colorado (G) Seligman, Arizona (G)

P** 2010 P** P** 2009 P**

1,468 632 498 2,598

660 951 1,900 3,511

0 0 0 0 0 0 0

0 0 0 0 951 0 951

0 330 0 0 0 0 330

0 330 0 0 0 0 330

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 660 0 0 951 0 1,611

Oro Grande, California

2008

1,236 1,236

2,172 2,172

234 234

702 702

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

936 936

2,430

8,155

4,155

330

1,200

0

0

900

4,126

1,944

0

23,620

Subtotal

Mountain CalPortland Drake Cement Eagle Materials Eagle Materials GCC America Cemex Subtotal

Pacific Texas Industries Subtotal Net United States Capacity Changes** (G) Greenfield (P**) Postponed - no additional information available * Source: PCA Plant Information Summary 2010 ** Total includes capacities with unspecified dates Source: PCA Market Intelligence Based on publicly available sources believed to be reliable; however, accuracy cannot be guaranteed.

Capacity Expansion

(Clinker, Thousands of Metric Tons ) Update: 04/22/2014

Company Total Expansion - Estimated Dollar Investment ($ Millions)

Location

On-Line

Existing Capacity*

Expanded Capacity*

2008 2,204 $608

2009 7,398 $2,039

2010 3,769 $1,039

2011 299 $83

2012 1,089 $300

Expansion 2013 2014 0 0 $0 $0

2015 0 $0

2016 2,201 $607

2017 1,764 $486

2018 2,087 $575

Total 21,156 $5,830

New England Middle Atlantic Giant Cement Lafarge

Bath, Pennsylvania Ravena, New York

2010 2017

560 1,680 2,240

949 2,537 3,486

0 0 0

0 0 0

389 0 389

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 856 0

0 0 0

389 856 1,246

Grand Chain, Illinois Mitchell, Indiana Chicago, Illinois

2016 P** 2017

1,014 776 1,790

2,671 1,886 907 5,464

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

1,657 0 0 1,657

0 0 907 907

0 0 0 0

1,657 0 907 2,564

Hannibal, Missouri Festus, Missouri St. Genevieve, Missouri

2008 2009 2009

554 1,216 1,770

948 2,199 3,720 6,867

394 0 0 394

0 983 2,722 3,705

0 0 999 999

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0

0 0 0

394 983 3,720 5,097

0

0

Subtotal

East North Central Lafarge Lehigh Universal Cement (G) Subtotal

West North Central Continental Cement Buzzi Unicem Holcim (G) Subtotal

South Atlantic Cemex (South) American Cement Company (G) Essroc Vulcan Materials Argos USA Houston American Cement (G) Sumter Cement Company (G) Titan America Subtotal

Brooksville, Florida Sumterville, Florida Martinsburg, West Virginia Newberry, Florida Harleyville, South Carolina Perry, Georgia Center Hill, Florida (G) Castle Hayne, North Carolina

2008 2009 2009 2010 P** P** P** 2018

605 730 716 978 3,029

1,418 917 1,600 1,489 2,248 816 1,361 2,087 11,936

406 0 0 0 0 0 0 0 406

406 917 870 0 0 0 0 0 2,194

0 0 0 773 0 0 0 0 773

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 2,087 2,087

813 917 870 773 0 0 0 2,087 5,460

P**

899 899

2,078 2,078

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

2010 2012 2008 2016

873 780 906 454 519 3,532

2,182 1,869 2,098 998 864 6,149

0 0 1,192 0 1,192

0 0 0 0 0

1,309 0 0 0 1,309

0 0 0 0 0

0 1,089 0 0 1,089

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 544 544

0 0 0 0 0

0 0 0 0 0

1,309 1,089 1,192 544 345 4,479

East South Central National Cement

Ragland, Alabama Subtotal

West South Central Ash Grove Cement Texas Industries Inc Cemex Buzzi Unicem Cemex

Foreman, Arkansas New Braunfels, Texas New Braunfels, Texas Maryneal, Texas Odessa, Texas

Unspecified

Rillito, Arizona Paulden, Arizona (G) Laramie, Wyoming Fernley, Nevada Pueblo, Colorado (G) Seligman, Arizona (G)

P** 2010 P** P** 2009 P**

1,332 573 452 2,357

599 863 1,724 3,185

0 0 0 0 0 0 0

0 0 0 0 863 0 863

0 299 0 0 0 0 299

0 299 0 0 0 0 299

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 599 0 0 863 0 1,461

Oro Grande, California

2008

1,121 1,121

1,971 1,971

212 212

637 637

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

849 849

2,204

7,398

3,769

299

1,089

0

0

816

3,743

1,764

0

21,428

Subtotal

Mountain CalPortland Drake Cement Eagle Materials Eagle Materials GCC America Cemex Subtotal

Pacific Texas Industries Subtotal Net United States Capacity Changes** (G) Greenfield (P**) Postponed - no additional information available * Source: PCA Plant Information Summary 2010 ** Total includes capacities with unspecified dates Source: PCA Market Intelligence Based on publicly available sources believed to be reliable; however, accuracy cannot be guaranteed.

Capacity Displacements (Clinker, Thousand Short Tons ) Update: 04/22/2014

Company Buzzi Unicem Essroc Cement Corp St. Mary's Cement Buzzi Unicem Cemex (North Plant) Holcim Holcim Ash Grove Cemex Texas Industries (White) Essroc Cement Corp Holcim Holcim CalPortland Cemex Lafarge Holcim Lafarge

Location Independence, Kansas Frederick, Maryland Dixon, Illinois Oglesby, Illinois Brooksville, Florida Clarksville, Missouri Dundee, Michigan Inkom, Idaho Davenport, California Riverside, California Bessemer, Pennsylvania Artesia, Mississippi Mason City, Iowa Colton, California Wampum, Pennsylvania Seattle, Washington Catskill, New York Fredonia, Kansas

Off-Line 9/1/2008 11/1/2008 12/1/2008 12/1/2008 1/1/2009 1/1/2009 1/1/2009 1/1/2009 1/1/2009 1/2/2009 4/1/2009 4/1/2009 8/1/2009 12/1/2009 4/1/2010 1/1/2011 6/1/2011 4/1/2012

2008

2009

2010

2011

2012

2013 (1)

2014

2015

2016

2017

2018

Current

Permanent

Total

-286

-7,999

-10,156

-11,091

-11,753

-11,868

-6,520

-6,520

-6,520

-6,520

-6,520

-11,753

-6,520

Capacity* 357 340 701 625 1,381 1,045 915 287 928 95 667 456 1,010 750 800 420 631 462

-119 -57 -58 -52 0 0 0 0 0 0 0 0 0 0 0 0 0 0

-357 -340 -701 -625 -1,381 -1,045 -915 -287 -928 -95 -500 -342 -421 -62 0 0 0 0

-357 -340 -701 -625 -1,381 -1,045 -915 -287 -928 -95 -667 -456 -1,010 -750 -600 0 0 0

-357 -340 -701 -625 -1,381 -1,045 -915 -287 -928 -95 -667 -456 -1,010 -750 -800 -420 -315 0

-357 -340 -701 -625 -1,381 -1,045 -915 -287 -928 -95 -667 -456 -1,010 -750 -800 -420 -631 -346

-357 -340 -701 -625 -1,381 -1,045 -915 -287 -928 -95 -667 -456 -1,010 -750 -800 -420 -631 -462

-357 -340 0 -625 0 -1,045 -915 0 -928 -95 -667 -456 0 0 0 0 -631 -462

-357 -340 0 -625 0 -1,045 -915 0 -928 -95 -667 -456 0 0 0 0 -631 -462

-357 -340 0 -625 0 -1,045 -915 0 -928 -95 -667 -456 0 0 0 0 -631 -462

-357 -340 0 -625 0 -1,045 -915 0 -928 -95 -667 -456 0 0 0 0 -631 -462

-357 -340 0 -625 0 -1,045 -915 0 -928 -95 -667 -456 0 0 0 0 -631 -462

-357 -340 -701 -625 -1,381 -1,045 -915 -287 -928 -95 -667 -456 -1,010 -750 -800 -420 -631 -346

-357 -340 -625 -1,045 -915 -928 -95 -667 -456 -631 -462

(Clinker, Thousand Metric Tons )

Total Company Buzzi Unicem Essroc Cement Corp St. Mary's Cement Buzzi Unicem Cemex (North Plant) Holcim Holcim Ash Grove Cemex Texas Industries (White) Essroc Cement Corp Holcim Holcim CalPortland Cemex Lafarge Holcim Lafarge (1)

Location Independence, Kansas Frederick, Maryland Dixon, Illinois Oglesby, Illinois Brooksville, Florida Clarksville, Missouri Dundee, Michigan Inkom, Idaho Davenport, California Riverside, California Bessemer, Pennsylvania Artesia, Mississippi Mason City, Iowa Colton, California Wampum, Pennsylvania Seattle, Washington Catskill, New York Fredonia, Kansas

Off-Line

Capacity*

9/1/2008 11/1/2008 12/1/2008 12/1/2008 1/1/2009 1/1/2009 1/1/2009 1/1/2009 1/1/2009 1/2/2009 4/1/2009 4/1/2009 8/1/2009 12/1/2009 4/1/2010 1/1/2011 6/1/2011 4/1/2012

324 308 636 567 1,253 948 830 260 842 86 605 414 916 680 726 381 572 419

2008

2009

2010

2011

2012

2013 (1)

2014

2015

2016

2017

2018

Current

Permanent

-260

-7,257

-9,214

-10,062

-10,662

-10,767

-5,915

-5,915

-5,915

-5,915

-5,915

-10,662

-5,915

-108 -51 -53 -47 0 0 0 0 0 0 0 0 0 0 0 0 0 0

-324 -308 -636 -567 -1,253 -948 -830 -260 -842 -86 -454 -311 -382 -57 0 0 0 0

-324 -308 -636 -567 -1,253 -948 -830 -260 -842 -86 -605 -414 -916 -680 -545 0 0 0

-324 -308 -636 -567 -1,253 -948 -830 -260 -842 -86 -605 -414 -916 -680 -726 -381 -286 0

-324 -308 -636 -567 -1,253 -948 -830 -260 -842 -86 -605 -414 -916 -680 -726 -381 -572 -314

-324 -308 -636 -567 -1,253 -948 -830 -260 -842 -86 -605 -414 -916 -680 -726 -381 -572 -419

-324 -308 0 -567 0 -948 -830 0 -842 -86 -605 -414 0 0 0 0 -572 -419

-324 -308 0 -567 0 -948 -830 0 -842 -86 -605 -414 0 0 0 0 -572 -419

-324 -308 0 -567 0 -948 -830 0 -842 -86 -605 -414 0 0 0 0 -572 -419

-324 -308 0 -567 0 -948 -830 0 -842 -86 -605 -414 0 0 0 0 -572 -419

-324 -308 0 -567 0 -948 -830 0 -842 -86 -605 -414 0 0 0 0 -572 -419

-324 -308 -636 -567 -1,253 -948 -830 -260 -842 -86 -605 -414 -916 -680 -726 -381 -572 -314

-324 -308 -567 -948 -830 -842 -86 -605 -414 -572 -419

Unless reported to the contrary by members, PCA assumes displacement status extends through the current year. No assumption for temporary closures beyond this period is made.

*Source: 2010 PCA Plant Information Summary

Source: PCA Market Intelligence Based on publicly available sources believed to be reliable; however, accuracy cannot be guaranteed. The Portland Cement Association assumes no legal responsibility for the outcome of decisions or commitments made on the basis of this information.