Florida's future

The economy of Florida consumes an estimated 143 million tons of aggregate materials each year. Approximately, 120 million tons are produced from mines in the state, 8 million tons are imported from U.S. domestic sources, and 5 million tons are imported internationally. But there are problems on the horizon in the aggregates supply chain, according to a recent Florida Department of Transportation study. For example:
* Existing mining permits have been challenged in the Lake Belt. The output from sources around the state continues but the quality is declining for many engineering purposes.
* Florida limestone formations outside the Lake Belt are generally not as high in quality.
* Both large and small land developments are over-running the lands where limestone and sand deposits are found.
* Local land-use decisions fueled by homeowner and neighbor's complaints have made planning and permitting new mines extremely costly or impossible.
* Even expanding existing mines is impossible in some areas because the reserve lands have been hemmed in by development.
* The mega-mine complex in Lee County has seven years of remaining capacity and when it closes, the aggregates that it supplies to all of southwest Florida will need to be trucked in from other locations at a much higher price.
The state will certainly be setting off alarm bells in the near future if these issues are not resolved. Maybe Vulcan, which just purchased Florida Rock, will provide enough extra clout in the state to get the ball rolling in the right direction.

Overpriced down under?

Big doings down under. Australian regulators have apparently cleared Cemex's $11.7 billion hostile takeover bid for Rinker Group Ltd. According to reports, Australia's Foreign Investment Review Board, which assesses proposals by foreign companies to invest in the nation, has approved the lucrative bid. Cemex has offered $13 a share for Sydney-based Rinker, which it has targeted for its businesses in Florida, Arizona and Nevada. The deal would make it the world's largest cement maker. If Cemex gets Rinker, it would be the second major Florida-based aggregates producer to be acquired, following Vulcan's purchase of Florida Rock. Your comment?

Vulcan takes a big bite

While all eyes were glued to the Cemex-Rinker Materials slugfest, no one was watching Vulcan Materials. The industry's number-one aggregates producer just got bigger, announcing plans to buy Florida Rock in a cash and stock deal that values the two construction materials makers at about $4.6 billion. The transaction is expected to close mid-year. Long-time industry veteran and Florida Rock President/CEO John Baker will join Vulcan Materials' board of directors after the deal, and Vice President Tom Baker will become president of Vulcan Materials' new Florida Rock Division headquartered in Jacksonville, Florida, according to the rumor mill. Your comment?