With the upcoming military buildup Hanson Permanente Cement the largest supplier of cement on Guam and the world’s largest aggregate supplier and producer is confident that it will be able to meet the doubled Guam demand for cement.
Derek K. Sadler general manager for Hanson; told the Journal that compared to the U.S west coast Guam is a small cement market. "During our best years 1990 to 1992 the best we did was 273 000 tons including the Saipan market. The current average is about 65 000 tons per year on Guam since 2004. So Guam is a small cement market compared to the rest of Asia and the U.S. which impacts rates and cement price."
Sadler said that Hanson supplies 95% to 98% of the island’s cement. With the impending military build up Hanson is expecting the market to nearly double "" from 65 000 tons to 120 000 tons per year.
"This is due to the length of the buildup over nine years "" 2007 though 2015 "" not compacted like the hotel build up from 1990 through 1992. I am also including the Air Force and Navy expansion projects currently on going and planned for Guam as part of the military build up."
Like many other companies Hanson is waiting on more details about the relocation.
Sadler said that the Marine relocation was still not finalized and many of the details were still being worked out.
"We will have a military build up on Guam but I don’t think the size has been finalized just yet by the U.S. Government. Remember Bush and Cheney are on the way out and we don’t know who is going to replace them. Also the current wars are draining military funding."
Michael P. Henderson marketing communications administrator for the Port Authority of Guam; told the Journal Lucky Cement Corp. and Mitsubishi Cement have made inquiries into leasing port property.
Sadler said there were rumors of other cement companies coming to Guam. "A $15 billion build up will generate interest." But Hanson is not too concerned he said.
"Companies aren’t going to expand for just a nine-year build up. It’s not worth it. Guam’s market can’t support two large suppliers."
According to Hanson’s Web site "Hanson is one of the world’s largest suppliers of heavy building materials to the construction industry with turnover in 2006 of £4.1 billion [about $8.05 billion]. Our products fall into two categories: aggregates (crushed rock sand and gravel ready-mixed concrete asphalt and cement related products) and building products (concrete pipes pre-cast products concrete pavers tiles and clay bricks). We employ 26 000 people operating primarily in North America the U.K. and Australia with further operations in Asia Pacific and Continental Europe.
Lucky Cement Corp. is based out of Taiwan and has more than 600 employees. The group’s principal activities are the manufacture and sale of cement and other related products. Other activities include the construction lease and sale of commercial and residential buildings and manufacture and sale of luminous light products. It also provides shipping transport boat agency and investment services. Operations are carried out in Taiwan and other countries.
Jere C. Johnson president of Hawaiian Rock Products (Hanson’s biggest customer on Guam); said "Hanson supplies our cement and will continue to supply our cement as long as they can meet the demand and their prices remain competitive." MBJ