Economy & Market

Titan America announces, economics no longer support new cement plant

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USA: Titan America LLC has announced that project economics no longer support the construction of a cement plant in Castle Hayne, NC. According to company officials, the evolution of supply and demand balances in the specific regional market no longer support the significant cost involved in constructing a new cement plant.

"Our decision to suspend construction on the cement plant in Castle Hayne is driven by basic project economics," said Bill Zarkalis, Titan America’s CEO. "The pace of demand growth in the specific markets does not seem adequate to justify the addition of substantial new production capacity – more so because the costs to construct a new cement plant in the United States have risen substantially in the past few years. Finally, the overall risk profile of the project has worsened as new coastal capacity in North Carolina could be vulnerable to cement imports, considering the strong US dollar, the global cement supply situation and low ocean freight costs."

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