Profile: Vulcan Materials Co (VMC.N)
18 Jun 2013
Vulcan Materials Company, incorporated on February 14, 2007, is a producer of construction aggregates primarily crushed stone, sand, and gravel. The Company is a producer of aggregates-based construction materials including asphalt and ready-mixed concrete. The Company produces these materials from natural deposits such as granite, limestone and trap rock. The Company operates in four segments: Aggregates, Concrete, Asphalt Mix, And Cement. The Company has 341 active aggregates facilities. The Company also is a producer of asphalt mix and ready-mixed concrete, as well as a producer of cement in Florida. The Company is a construction materials business in the country with aggregates operations.
The Company serves markets from inland quarries, shipping by barge and rail and from its quarry on Mexico’s Yucatan Peninsula. The Company transports aggregates from Mexico to the United States principally on its three Panamax-class, self-unloading ships. Aggregates also are used as railroad track ballast. As of December 31, 2012, the Company had 15 billion tons of permitted and proven or probable aggregates reserves. The Company serves both the public and the private sectors. Public sector construction includes spending by federal, state, and local governments for highways, bridges and airports, as well as other infrastructure construction for sewer and waste disposal systems, water supply systems, dams, reservoirs and other public construction projects. In 2012, publicly funded construction accounted for approximately 54% of the Company's total aggregates shipments. The private sector markets include both nonresidential building construction and residential construction. In 2012, privately-funded construction accounted for approximately 46% of the Company's total aggregates shipments.
The Company sells aggregates that are used as ballast to railroads for construction and maintenance of railroads tracks. The Company also sells riprap and jetty stone for erosion control along waterways. In addition, stone can be used as a feedstock for cement and lime plants and for making a variety of adhesives, fillers and extenders. The Company's Brooksville, Florida calcium plant produces calcium products for the animal feed, paint, plastics, water treatment and joint compound industries. The Company sells a relatively small amount of construction aggregates outside of the United States, principally in the areas surrounding its quarry on the Yucatan Peninsula in Mexico.
The Company produces and sells ready-mixed concrete in California, Florida, Georgia, Maryland, Texas, Virginia and the District of Columbia. Additionally, the Company produces and sells, in a limited number of these markets, other concrete products, such as block. The Company also resells purchased building materials for uses with ready-mixed concrete and concrete block. The Company meets the aggregates requirements of its Concrete segment through its Aggregates segment. The Company serves its Concrete segment customers from its local production facilities or by truck.
The Company produces and sells asphalts mix in Arizona, California, and Texas. This segment relies on the Company's reserves of aggregates, functioning essentially as a customer to its aggregates operations. Aggregates are a major component in asphalt mix, consisting of approximately 95% by weight of this product. The Company meets the aggregates requirements for its asphalts Mix segment almost wholly through its Aggregates segment. The Company serves its Asphalt Mix segment customers from its local production facilities.
The Company's Newberry, Florida cement plant produces Portland and masonry cement that the Company sells in both bulk and bags to the concrete products industry. The Company's Tampa, Florida distribution facility can import and export cement and slag. Cement can be resold, blended, bagged, or reprocessed into specialty cements that the Company then sells.
The Company competes with Cemex S.A.B. de C.V., CRH plc, HeidelbergCement AG, Holcim Ltd., Lafarge, Martin Marietta Materials, Inc., and MDU Resources Group, Inc.
Vulcan Materials Co
1200 Urban Center Drive,
P.O. Box 385014
BIRMINGHAM AL 35242-5014