Connections

Issue 2 • Volume 3 • April 10

LEVERAGING THE PORTFOLIO

Delaware Region Leverages the Oldcastle Portfolio

There is no better time than in a down economy to utilize Oldcastle assets at Oldcastle companies. The Delaware Region of the MIDA Group launched a mission in 2009 to persuade Oldcastle companies to use locally owned resources. In 2009, Pioneer Materials began shipping concrete sand to Oldcastle APG's Binkley & Ober block plants, Oldcastle Precast's Edgewood, Md., facility and Bonsal American's White Marsh, Md., facility. Consequently, it sold about 35,000 tons of sand and aggregates to these Oldcastle companies. Of the four companies we targeted, three switched to Pioneer Materials. Previously, these companies bought an estimated 150,000 tons of sand from competitors.

One of our LTP success stories came during a follow-up call with Edgewood Precast – the company was able to cut 100 pounds of cement from its mix design and run its Hollowcore Plank machine more efficiently since switching to the Pioneer Materials sand and Pennsy Supply stone. These benefits would have not been realized without LTP in place.

In January 2010, a representative from the Oldcastle Precast Telford, Pa., plant toured our Dover, Del., facility. The Telford plant has taken delivery of sand for testing and is currently waiting on approval from PennDOT. Pending approval, our goal is to ship 12,000 tons of sand to the plant in 2010.

Pioneer Materials forecasts 100,000 tons of sand to be sold in 2010 to the four Oldcastle companies that have already taken delivery.

We are hopeful that in future months, the Delaware Region of the MIDA Group will be supplying all the Oldcastle operations within our delivery area. This would bring more than 150,000 tons of sand sales to the MIDA Group. Pioneer Materials is set up to rail sand and will look to stretch delivery capabilities as the next phase of the LTP initiative.

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