DALLAS, April 1 /PRNewswire-FirstCall/ -- Eagle Materials Inc.
(NYSE: EXP and EXP.B) announced today that its subsidiary company, American
Gypsum Company, plans to build a new high-speed, environmentally friendly
gypsum wallboard plant near Georgetown, South Carolina. The new plant is
designed to produce approximately 750 million square feet annually. Planning
of the new plant is nearly complete with construction expected to begin in
late 2005. Costs for the new plant are estimated to be approximately
$125 million. The new plant is expected to create approximately 100 new jobs
in Georgetown County.
Upon completion, the new plant will be supplied with synthetic gypsum
under a long-term supply agreement with Santee Cooper, South Carolina's state-
owned electric and water utility. Santee Cooper's coal-fired power plants
will generate a synthetic gypsum by-product as the result of using scrubbing
technology to reduce sulfur dioxide emissions. By utilizing the synthetic
gypsum in its gypsum wallboard production, American Gypsum will convert waste
that would otherwise be landfilled into a valuable building product.
Additionally, the gypsum paper that American Gypsum uses is made from 100%
recycled paper fiber creating a finished product from essentially 100%
recycled materials.
Santee Cooper is expected to begin producing the wallboard-grade synthetic
gypsum in 2006 and the new gypsum wallboard plant is expected to be
operational in early 2007. The new wallboard plant expands American Gypsum's
geographical footprint to the East Coast and into a growing South Carolina
economy. The new plant will also allow American Gypsum to serve its customers
on a national level with a much improved nationwide distribution network.
American Gypsum is presently the nation's 5th largest producer of gypsum
wallboard. American Gypsum operates 4 gypsum plants with 5 production lines
and annually sells nearly 3 billion square feet of wallboard.
Through its subsidiaries, Eagle Materials Inc. manufactures and
distributes Cement, Gypsum Wallboard, Recycled Paperboard and Concrete and
Aggregates.
Forward-Looking Statements. This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933,
Section 21E of the Securities Exchange Act of 1934 and the Private Securities
Litigation Reform Act of 1995. Forward-looking statements may be identified
by the context of the statement and generally arise when the Company is
discussing its beliefs, estimates or expectations. These statements are not
guarantees of future performance and involve a number of risks and
uncertainties. Actual results and outcomes may differ materially from what is
expressed or forecast in such forward-looking statements. The principal risks
and uncertainties that may affect the company's actual performance include the
following: the cyclical and seasonal nature of the Company's business; public
infrastructure expenditures; adverse weather; availability of raw materials;
unexpected operational difficulties; governmental regulation and changes in
governmental and public policy; changes in economic conditions specific to any
one or more of the Company's markets; competition; announced increases in
capacity in the gypsum wallboard and cement industries; delays and cost
overruns in the construction of the Company's expansion projects, difficulties
in obtaining necessary environmental permits and/or construction permits;
general economic conditions; and interest rates. These and other factors are
described in the Company's Annual Report on Form 10-K for the fiscal year
ended March 31, 2004 and in its Quarterly Report on Form 10-Q for the fiscal
quarter ended December 31, 2004. These reports are filed with the Securities
and Exchange Commission.
SOURCE Eagle Materials Inc.
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Related links:
http://www.eaglematerials.com
CONTACT:
Steven R. Rowley, President and CEO, or
Arthur R. Zunker, Jr., Senior Vice President and CFO, both of
Eagle Materials Inc., +1-214-432-2000
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