Lhoist North America announced that after extensive technical and market review, it is proceeding with a new distribution facility for dolomitic quicklime to service the steel industry. The new terminal will be in the Memphis area.
The distribution terminal, which is expected to be operational in 2021, is primarily driven by growing demand for Lhoist’s high-purity dolomitic lime products in the steel industry. “This project aligns with our company’s commitment to environmentally sustainable growth,” said Ron Thompson, president and CEO of Lhoist North America.
The new facility will have a primary supply from the new kiln in Marble Falls, Texas, but is serviced by three of the major railroads allowing shipments from multiple dolomitic production sites across the Southern United States. The facility can service more than 200,000 tpy of demand with:
- 1,000 tons of silo storage.
- Up to 40 rail cars stored on site at any time.
- Screening systems to ensure clean pebble products and properly sized injection products.
“Despite the current COVID-19 impacts on the economy, Lhoist is investing to create jobs and meet critical supply chain demands, like steel production, which support future infrastructure growth in North America. This project will ensure a reliable supply of lime to our customers by increasing the flexibility of our supply chain and allowing us to store a substantial amount of inventory close to their sites. As a privately held mining company, the long-term orientation of our business, including investment in distribution terminals to service our customers, has always been at our core,” said Laura Henderson, director of supply chain and strategy.
Lhoist also announced price increases for 2021. The company stated, in a notice to customers:
“Lhoist North America sincerely appreciates having the opportunity to be your supplier, and we look forward to serving you in 2021. The impact of COVID-19 across all industries has been challenging, and as a result we are anticipating cost increases for critical materials and services. As we continue to focus on continuous improvement and cost savings, we are only able to partially offset the significant increases in energy costs as well as regulatory requirements and the associated cost of compliance. As a result, a price increase is required for us to remain a sustainable supplier. Effective Jan. 1, 2021, depending on customer contractual commitments, we will increase prices up to 12% for lime, limestone and clay products. We wish you the best in 2021 and look forward to continuing to serve as your supplier.”