Eagle Materials Inc. (NYSE: EXP) has announced plans to modernize and expand its cement plant in Laramie, Wyoming, along with related distribution facilities, in a significant growth investment totaling approximately $430 million.
The modernization and expansion are expected to result in a 50% increase in the plant's annual manufacturing capacity, bringing it to approximately 1.2 million tons of cement. Additionally, the project is projected to reduce manufacturing costs by about 25% due to the adoption of state-of-the-art technology aimed at maximizing operating efficiencies. This includes the replacement of solid fuels with lower-cost alternative fuels and natural gas, simplified maintenance programs, and improved operating efficiencies, which are anticipated to generate expected cost savings.
Notably, the CO2 intensity from the Laramie, Wyoming facility is projected to decrease by nearly 20% once the modernization and expansion project is complete. This aligns with the company's commitment to reduce the intensity of carbon emissions from its facilities.
The existing plant, operational since 1927, currently has an annual capacity of 800,000 tons of cement. However, with the planned expansion, the plant is set to significantly increase its production capacity and operational efficiencies, further solidifying Eagle Materials' position as a low-cost producer.
With the construction slated to begin immediately and the startup scheduled for the second half of calendar year 2026, the company is aiming to meet the expected increase in demand for cement across the mountain region, including key cities such as Denver and Salt Lake City.
Eagle Materials Inc. is a leading U.S. manufacturer of heavy construction products and light building materials, with a network of more than 70 facilities spanning 21 states. Their primary products, including portland cement and gypsum wallboard, are essential for various construction and infrastructure projects across America. This expansion project underscores the company's commitment to meeting the needs of its markets and stakeholders while also prioritizing environmental considerations. Today the company's shares have moved -0.7% to a price of $256.37. For more information, read the company's full 8-K submission here.
