TXI to idle 4 of its cement kilns in Midlothian
10:38 PM CDT on Friday, August 8, 2008
By BRENDAN M. CASE / The Dallas Morning News
bcase@dallasnews.com / The Dallas Morning News
Randy Lee Loftis contributed to this report
Dallas-based Texas Industries Inc. will idle some cement production at its Midlothian plant as demand slows because of the economic downturn, a company spokesman said Friday.
Four of the company's wet kilns will be shut down. However, the company will continue to operate its larger, more environmentally friendly dry kiln, said Randy Jones, vice president of corporate communications and government affairs.
"Certainly, residential demand has fallen off, and that precipitates other things to slow down," Mr. Jones said. "It's an inventory management action."
Vicki Bryan, a bond analyst in Houston with Gimme Credit LLC, said the move was unexpected.
"They're definitely hunkering down," she said.
The company did not have an estimate Friday on how many of its 270 Midlothian employees will be affected, Mr. Jones said.
It will take 60 to 70 days to idle the four kilns. After that, employees with continuous service of six months or more will be furloughed and can be brought back if necessary, Mr. Jones said. Employees with less than six months of service will be laid off.
From March to May, TXI's cement shipments fell 3 percent compared with the same period last year, according to the company's most recent financial statements.
TXI stock rose $2.49 to close at $50.32 Friday, the day after a larger-than-expected bond offering by the company. Shares are down about 28 percent since the start of the year.
The kiln idling may be good news for local air quality since fuel for the four includes hazardous waste. Already, the state permit for the newer dry kiln, which burns coal and natural gas, requires TXI to idle two of the four older kilns at any given time to limit emissions.
TXI began burning hazardous waste in 1987, a year after another local plant – now owned by Ash Grove Cement Co. of Overland Park, Kan. – began using waste as fuel. TXI is now the only local cement company burning hazardous waste.
"For the first time since 1986, no plant in Ellis County will be burning hazardous waste," said Jim Schermbeck of Downwinders at Risk, a Midlothian clean-air watchdog group. "This is a big deal."
Staff writer Randy Lee Loftis contributed to this report
By BRENDAN M. CASE / The Dallas Morning News
bcase@dallasnews.com / The Dallas Morning News
Randy Lee Loftis contributed to this report
Dallas-based Texas Industries Inc. will idle some cement production at its Midlothian plant as demand slows because of the economic downturn, a company spokesman said Friday.
Four of the company's wet kilns will be shut down. However, the company will continue to operate its larger, more environmentally friendly dry kiln, said Randy Jones, vice president of corporate communications and government affairs.
"Certainly, residential demand has fallen off, and that precipitates other things to slow down," Mr. Jones said. "It's an inventory management action."
Vicki Bryan, a bond analyst in Houston with Gimme Credit LLC, said the move was unexpected.
"They're definitely hunkering down," she said.
The company did not have an estimate Friday on how many of its 270 Midlothian employees will be affected, Mr. Jones said.
It will take 60 to 70 days to idle the four kilns. After that, employees with continuous service of six months or more will be furloughed and can be brought back if necessary, Mr. Jones said. Employees with less than six months of service will be laid off.
From March to May, TXI's cement shipments fell 3 percent compared with the same period last year, according to the company's most recent financial statements.
TXI stock rose $2.49 to close at $50.32 Friday, the day after a larger-than-expected bond offering by the company. Shares are down about 28 percent since the start of the year.
The kiln idling may be good news for local air quality since fuel for the four includes hazardous waste. Already, the state permit for the newer dry kiln, which burns coal and natural gas, requires TXI to idle two of the four older kilns at any given time to limit emissions.
TXI began burning hazardous waste in 1987, a year after another local plant – now owned by Ash Grove Cement Co. of Overland Park, Kan. – began using waste as fuel. TXI is now the only local cement company burning hazardous waste.
"For the first time since 1986, no plant in Ellis County will be burning hazardous waste," said Jim Schermbeck of Downwinders at Risk, a Midlothian clean-air watchdog group. "This is a big deal."
Staff writer Randy Lee Loftis contributed to this report
posted by Downwinders At Risk at
11:54 AM
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