Ash Grove Cement Company 2008 Annual Report to Employees

Transcription

Ash Grove Cement Company 2008 Annual Report to Employees
Ash Grove Cement Company
2008 Annual Report to Employees
Celebrating a Century of Cement Production in Chanute, Kansas
2
9
10
13
17
2
Celebrating a Century of Cement
Production in Chanute
4
Message from the Leadership
7
Summaries:
Sales-Capital Expenditures
8
Operations-Safety
9
Operations-Sustainable
Development/AGem
10
Operations-Facility Achievements/
MEP
13
Ash Grove Family of Companies
17
Ash Grove Customer Service
18
Building a Strong Future
18
Ash Grove Charitable Foundation
19
Ash Grove Cement Company
2008 Scholarship Recipients
20
Locations
21
Facilities
22
Ash Grove Board of Directors
and Company Officers
23
Corporate Contacts
1
Celebrating a Century of Cement Production in Chanute
In 2008 Ash Grove Cement Company celebrated 100 years of producing cement in its
Chanute, Kan., facility, where production began July 28, 1908. The Ash Grove Lime and
Portland Cement Company chose Chanute over several sites because of its abundant
raw materials, dependable labor force, plentiful natural gas supply and availability of rail
transportation. Cement from the company’s first plant was originally shipped in barrels,
and the original plant’s annual production capacity was the equivalent of 120,000 tons of
cement per year.
The company met demand challenges by expanding the facility and implementing new
technologies. During the 1960s the plant underwent a modernization to meet growing
demand, which increased its capacity to 500,000 tons of cement per year.
Celebrating Chanute
2
The most recent major construction project was completed in 2001, and this state-ofthe-art cement plant operation has the ability to produce 1.6 million tons of high quality
cement for the company’s valued customers each year.
The company also operates eight other plants in the Midwest and West. Other significant 2008 Ash Grove Cement Company milestones, acquisitions and news are detailed
on the following pages.
The Chanute, Kan., cement plant celebrated 100 years of
production with an Open House in October 2008.
Message from the Leadership
Since its founding in 1882 Ash Grove has weathered financial panics, epidemics, the Great Depression, world wars and
numerous recessions. The basic management philosophy of
maintaining a conservative balance sheet while patiently building shareholder equity has served the company well and will
continue to be a successful strategy in the coming years. Led
by the United States, the world economy is now more than a
year into the sharpest economic decline since the Depression
of the early 1930s. While Ash Grove’s earnings opportunities
are severely diminished in the short term as heavy building
materials demand continues to decline, our employees and
assets are the best in the industry, and Ash Grove is well positioned for the eventual economic upturn.
Historically Ash Grove has made acquisitions and expansions
during the inevitable down side of our business cycles. In
2008 Ash Grove continued the expansion of the Foreman,
Ark., cement plant with a scheduled start-up of October 2009
for the highly efficient 1.7 million ton per year kiln system.
In summer 2008 Ash Grove closed on the acquisition of Holliday Sand & Gravel Company. This company brings to Ash
Grove a strong market share in fine aggregates in the Kansas
City metro area as well as in Tulsa, Okla., and St. Joseph, Mo.
The fine aggregates fit strategically with Ash Grove’s current
product offerings in the central United States.
In summer 2008 Ash Grove also took an equity position
in Eagle Materials Inc. (NYSE: EXP) and currently holds
approximately six percent of Eagle’s outstanding shares.
Headquartered in Dallas, Texas, Eagle produces cement in
Texas, Wyoming, Nevada and Illinois and owns major production facilities in gypsum wallboard. This is
currently a long-term investment for Ash Grove, deploying capital back into the heavy building materials
industry at a historically attractive value.
With the sharp decline in cement demand at the end of 2008, Ash Grove was forced to make the difficult
decision to indefinitely suspend operation of the kiln systems at our Inkom, Idaho, cement plant effective Dec. 31, 2008. This entailed the lay off of loyal and talented employees who admirably operated one
of the oldest and smallest cement plants in the country, but the company could no longer keep the facility
cost competitive in today’s challenging markets. Ash Grove will maintain its Idaho market share with clinker
shipped from our highly efficient Durkee, Ore., plant to be ground at Inkom and distributed through our
existing Idaho facilities.
For the second year in a row the Leamington, Utah, cement plant earned the L.T. Sunderland Safety
Award, leading the company once again in the important effort to reinforce the safety culture in each of
our facilities’ daily operations.
Looking ahead to 2009 we see another challenging year for the cement industry with continued significant
declining demand. Ash Grove will again be severely impacted by this negative economic trend and will adopt
operating strategies to maximize plant efficiencies while implementing strict cost and inventory controls
throughout the company.
Ash Grove is fortunate to employ steady, talented and deeply experienced employees throughout the company. Their leadership will enable Ash Grove to outperform our industry peers as we weather this economic
downturn and emerge in a position to look for growth opportunities in our core businesses.
Charlie Sunderland
Chairman of the Board
Kent Sunderland
Vice Chairman of the Board and Secretary
Chuck Wiedenhoft
President
5
Message from the Leadership
Ash Grove cement shipments declined in 2008 to 8,214,000 tons, a 10.3 percent decline from 2007 shipment totals. The Portland Cement Association estimates that cement shipments declined by 15.3 percent
on a national basis during 2008.
The Chanute, Kan., cement plant’s limestone storage dome.
net sales
2004
2005
2006
2007
2008
2004
1066
1187
1273
1190
NET SALES IN MILLIONS
2006
2007
2008
Financial Summaries
150
125
66
337
CAPITAL EXPENDITURES IN MILLIONS
921
119
capex
2005
7
Operations
The expansion that will rebuild the existing Foreman, Ark., facility continued. Since the October 2007
groundbreaking, Teton Industrial Construction has completed about 80 percent of grading and drainage work and about 70 percent of concrete work. Steel work was 50 percent complete at year end. FL
Smidth continues to provide construction management services and supply equipment. The project is
scheduled to be completed by the fourth quarter of 2009 despite the negative effects of two hurricanes
in 2008. The expansion will boost Foreman’s annual production capacity to 1.7 million tons of cement
from 1.0 million tons.
Ash Grove Safety
In recognition of safety achievements in 2008, the Leamington, Utah, plant won the Ash Grove L.T. Sunderland Safety Excellence Award for the second consecutive year. This prestigious award recognizes overall
safety and excellence. Only one plant earns the award each year, and it is presented at the Ash Grove Board
of Directors’ meeting in February.
Operations - Safety
8
The Portland Cement Association (PCA), the industry’s trade association, sponsors an annual Innovations
in Safety photo contest. For 2008, Ash Grove won four of the nine categories. Ash Grove plants’ winning
entries were: Leamington, Utah, (baghouse tools); Louisville, Neb., (rail car vibrator hoist); Durkee, Ore.,
(haul truck ladder access); and Midlothian, Texas, (mill rod removal system).
The President’s Safety Leadership Award results acknowledged the Chanute, Foreman, Inkom, Leamington
and Rivergate facilities with the Gold Award. The Louisville, Midlothian and Montana City plants and the Houston
and Portland import terminals earned the Silver Award.
The Seattle plant earned the Bronze recognition.
The Leamington plant was announced as the 2008 L.T. Sunderland Safety
Excellence Award winner at the Board of Director’s meeting in February 2009.
L-R: Fran Streitman, Vice President - Manufacturing and Environmental Affairs;
Gary Wright, Operations Manager - Rivergate Grinding plant (Finalist);
Ken Ware, Maintenance Manager - Leamington plant; Ron Smith, Plant
Manager - Inkom plant (Finalist); and Chuck Wiedenhoft, President and Chief
Operating Officer.
The Seattle, Wash., plant held an AGem giveaway
event for employees. AGem recyclable grocery bags
and cups were incentives for employees to participate
in the EPA’s “Change a Light, Change the World”
program, which requires a pledge to replace at least one
incandescent bulb or fixture at home with one that has
earned the Energy Star label.
Sustainable Development
Ash Grove is committed to reducing its thermal energy use by 17 percent per ton of clinker and electrical use by 10
percent per ton of cement produced by 2012. The company will work to maintain its position as an industry leader in its
use of alternative fuels and raw material substitution.
A copy of the 2008 Ash Grove Sustainability Report is available online at www.ashgrove.com. The 2009 report update
will be posted online at the same Web site.
Ash Grove Energy Management (AGem)
The Ash Grove Energy Management initiative was introduced in 2008, and it is an aggressive energy reduction process. The program also focuses on environmental goals. The
financial results of the program by year end were savings exceeding $4 million.
The AGem initiative:
• reduces Ash Grove’s carbon footprint
• reduces emissions
• reduces mobile equipment run times
• improves lighting efficiency
• boosts
employee energy consumption awareness
process air infiltration
• reclaims waste heat
• encourages employees to shut off unused/idling equipment
• eliminates
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Operations - Sustainable Development / AGem
Ash Grove Cement participates in the Cement Sustainability Initiative (CSI) as part of the World Business Council for
Sustainable Development. Through its participation in the CSI, the company issued its inaugural “Sustainability Report”
in 2008. The report contains a comprehensive overview of the company’s commitment to environmental stewardship,
social responsibility and economic prosperity. Ash Grove is committed to reduce emissions and set emission reduction
targets for carbon dioxide (CO2), nitrogen oxide (NOx), dust and sulfur oxides (SOx).
Maintenance Excellence Process (MEP)
The Maintenance Excellence Process continues to provide plant
support in reducing costs, improving reliability and establishing
a systems approach to caring for plant assets. The systems approach requires plants to consistently identify, plan, schedule,
execute and document work with all personnel as stakeholders
in order to achieve the best in class status among PCA member
companies choosing to participate in financial benchmarking
analyses.
Tracy D. Weber, maintenance man, services equipment at the
Portland Landfill Gas pumping station.
Facility Achievements
Facility achievements in 2008 include:
Midwest Region
Operations - MEP/ Achievements
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Chanute, Kan., Cement Plant
• Celebrated 100 years of production with a community-wide celebration that drew hundreds of Ash Grove
employees and retirees, community leaders and citizens to a festive outdoor barbecue picnic.
• For
the third consecutive year, earned U.S. Environmental Protection Agency’s (EPA) prestigious Energy Star
designation, which is the national symbol for protecting the environment through superior energy performance.
Foreman, Ark., Cement Plant
• Celebrated 50 years of production with a community celebration. Welcomed Ash Grove employees, retirees,
community leaders and citizens to enjoy a fall picnic.
• Sold
more than one million tons of cement for the fourth consecutive year.
Louisville, Neb., Cement Plant
• Began construction of a $3.2 million new office building to house offices, a lunchroom and a locker room. The
building is designed to meet U.S. EPA Energy Star requirements. Completion is scheduled for mid-2009.
• Completed
a $5.1 million stripping project at the Weeping Water Quarry to expose reserves.
Photos opposite page: Left: Arkansas state Sen. Barbara Horn and retiree Charles Harrison visit
during the Foreman plant’s 50th Anniversary event. Middle: Retirees who began work at the plant in
1958 gathered at Foreman’s 50th Anniversary Celebration. L-R: Thomas R. Stuart, Foster
Altenbaumer, Carlton Nevels, Odean Cleghorn, Bill Doss Self, Noble Southerland, Charles Harrison,
Charles “Sonny” Cobb, Thomas “Sonny” Williams and Paul Jones. Right: Human Resources/Safety
Manager Clint Nelson and his daughter, Kenzey, enjoy the celebration.
Facility Achievements continued
Midlothian, Texas, Cement Plant
• Successfully installed Selective Non-Catalytic Reduction (SNCR) technology on all three kilns, which resulted in a
nitrogen oxide (NOx) emission rate of 3.4 tons per day, which is a full ton below the Texas Commission on Environmental Quality-mandated ozone season limit for 2009.
• Earned
the North Texas Clean Air Coalition’s gold “Working for Clean Air Employer of the Year” award for companies with fewer than 500 employees. Ash Grove is the first Texas cement manufacturer to earn this recognition in
the five-year history of the program.
West Region
Durkee, Ore., Cement Plant
• Signed a Mutual Agreement and Order (MAO) with the Oregon Department of Environmental Quality to install a
mercury reduction system that will be operational by July 2010. The equipment is expected to reduce mercury emissions by at least 75 percent when it is fully operational.
Advisory Committee was formed to build and maintain Ash Grove’s ties to key community leaders. Its
first meeting was held in August; the second meeting featured a tour of the plant and a visit from U.S. Rep. Greg
Walden (R-Ore.) in October.
Inkom, Idaho, Cement Plant
• Announced that the Inkom plant would operate as a grinding and load out facility effective Dec. 31, 2008.
• Worked
with affected employees to offer job search assistance.
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Operations - Achievements
• Community
Facility Achievements continued
Leamington, Utah, Cement Plant
• Cost per equivalent ton of cement
produced was the lowest among all Ash
Grove plants.
• Community
Advisory Committee was
formed to build and maintain Ash
Grove’s ties to key community leaders.
Montana City, Mont., Cement Plant
• Successfully negotiated a five-year labor
contract, which passed on the first vote.
• Formed
Operations - Achievements
12
a Community Advisory Committee to build and maintain Ash
Grove’s ties to key community leaders.
The Durkee plant’s Community Advisory Committee was formed in 2008. The committee’s October
meeting featured a visit from U.S. Rep. Greg Walden (R-Ore.) (center) and included a tour of the plant.
Seattle, Wash., Cement Plant
• For the third consecutive year, earned U.S. EPA’s prestigious Energy Star designation, which is the national symbol for
protecting the environment through superior energy performance.
• Installed
a HoverGlide™ conveyor to significantly reduce spillage and enhance the clinker conveying system’s cleanup.
Portland, Ore., Calcium Carbonate Grinding Plant
• Demolished calcimatic lime kilns without incident.
Import Terminals
Houston, Texas, Cement Import Terminals
• Shipped 1.340 million short tons of cement; unloaded 1.333 short tons of cement, which is down by nearly one-third from
a 2007 record level as a result of the declining state of the U.S. economy and construction.
• Despite
Houston taking its first direct hit from a major hurricane in more than 20 years, the terminals sustained only minor
damage from Hurricane Ike.
Portland, Ore., Cement Import Terminal
• Unloaded 110,000 short tons of cement.
• Installed
a new pipe conveyor system in preparation for commissioning in early 2009.
Ash Grove Family of Companies
Ash Grove Aggregates
Ash Grove Aggregates experienced its most challenging year in 2008. Profitability fell short of expectations. Competitive forces suppressed pricing, and higher operating costs coupled with record
fuel costs continue to negatively affect profit margins.
Market conditions dictated the closure of two Kansas locations, and expansion was limited to the
addition of three million tons of limestone reserves through existing leases. Sixty-one acres were
reclaimed and released in 2008.
After 38 years of Ash Grove service, including more than 30 years leading the Aggregate group,
Mike Lutz retired in 2008. The Aggregate management group was consolidated and streamlined
into the Ash Grove Materials group in preparation for 2009. Jeff Burton now leads the group.
Ash Grove Packaging
Ash Grove Packaging Group (AGP), comprised of Precision
Packaging Incorporated and Materials Packaging companies,
fell short of its budgeted revenues in 2008. As residential
markets continued to fall in 2008, AGP also experienced a
sharp decline in demand for commercial mortar and consumer
products.
AGP continued to make investments for future growth
throughout 2008. These ongoing investments will provide
increased production capacity that will enable us to increase
production as the construction industry regains strength. The
Materials Packaging Salt Lake City plant rebuilt both rotary kiln
Ash Grove Packaging continued
to make investments for future
growth throughout 2008. These
ongoing investments will provide
increased production capacity
that will enable us to increase
production as the construction
industry regains strength.
13
Family of Companies
Johnson County Aggregates in Olathe, Kan., experienced an even more difficult year. The housing
and commercial development markets collapse resulted in a 31 percent reduction in tons sold and
caused a shift in production to a product mix more appropriately suited to the current market conditions. Forecasts for 2009 reflect a continued depressed housing market, and stagnated sales will
create the need for cost containment and a focus on premium products, such as ready mix concrete
and asphalt stone.
Holliday Sand & Gravel’s
Randolph, Mo., plant.
Ash Grove Family
of Companies
continued
Family of Companies
14
dryer operations, and new
pallet stretch wrapping
machines were installed in
Harrisonville, Mo., Fort
Smith and North Little
Rock, Ark., and Jackson,
Miss. In addition, the Harrisonville facility completed
installing a state-of-the-art,
energy efficient Ventilex fluid-bed dryer and a new sanded products production line. Our first robotic bag stacker was
installed in North Little Rock.
The economic downturn will produce new challenges in 2009, but AGP looks forward to meeting and overcoming the challenges ahead. AGP remains committed to working safely and in compliance with environmental laws. We also are committed to our vision of becoming and remaining the premier cement products packager in the U.S.
Ash Grove Resources, L.L.C .
Ash Grove Resources, L.L.C. of Topeka, Kan., completed its fourth year of business in 2008, and its products were in
demand.
Ash Grove Resources markets cement kiln dust (CKD) as Ash Grove Durabase® produced at Ash Grove cement plants in
Chanute, Kan., Foreman, Ark., and Midlothian, Texas. This material is marketed as a soil stabilization product for constructing large interstate highways, local road projects and commercial parking lots in Arkansas, Kansas, Nebraska, Oklahoma and Texas.
Ash Grove Resources, L.L.C. also markets Class C Fly Ash, which is used as a soil stabilization product in the same applications as our Ash Grove Durabase® as well as a material in concrete production.
Holliday Sand & Gravel
In August 2008, Ash Grove Cement Company purchased Holliday Sand & Gravel from its parent company, List & Clark.
Holliday exceeded our expectations for the five operating months in 2008. Holliday Sand & Gravel has a 98 percent mar-
ket share in the greater Kansas City area and a 75 percent market share in the Tulsa, Okla., area. Even with difficult
economic times ahead of us in 2009, our expectations for Holliday’s profitability remain high.
Kansas City Ready Mix Group
In 2008, results were mixed for the Kansas City Ready Mix Group, comprised of Fordyce Concrete and Century Concrete. The combined companies fell short of profitability expectations.
Fordyce Concrete had another profitable year. In 2008, yardage was up four percent from 2007.
Century Concrete had an extremely tough year. Yardage volume was down 14 percent due to the adverse residential
market conditions. Moving forward in 2009, Century will focus on targeting the commercial market to help increase
yardage and earnings. Century decided in October to temporarily close the Belton and Harrisonville plants in Missouri to help reduce costs in 2009.
During the year, the company continued investment in projects to improve employee safety, efficiency, customer service
and product quality.
In Glenwood, Iowa, the aging concrete plant acquired with Cohron in 2002 is being replaced with a dry-batch plant
with increased production capacity. This new facility, scheduled for completion in spring 2009, will allow Cohron to
serve this growing market and produce a better quality product.
Lyman-Richey Sand & Gravel continued with the relocation of the Cullom, Neb., sand plant from a depleted site to a
deposit located two miles further west. In conjunction with the relocation, the diesel dredge has been replaced with a
more efficient electric dredge.
Central Sand and Gravel Company is in the process of relocating its Genoa, Neb., plant from a depleted sand and
gravel deposit site acquired in 1989 to another sand and gravel deposit located one mile north of the existing site.
The move will be completed in 2009, and site configuration and plant improvements will increase productivity and
save energy.
Sales in 2009 are forecasted to decrease from 2008 levels as all markets continue to weaken. These reductions in
sales have ranged from modest to substantial, depending on each operating company’s industry markets and geographic location.
15
Family of Companies
Lyman-Richey Corporation
Sales for 2008 decreased from 2007 with the continued slowdown in the housing market affecting both home construction and the related residential street paving business. The declines in the housing and commercial markets were partially offset by increases in highway, bridge and agricultural construction.
Ash Grove Family of Companies continued
Siouxland Concrete Company
Siouxland Concrete Co. (Siouxland), a wholly owned subsidiary of Ash Grove Cement Company, supplies ready-mix concrete and pre-cast concrete products to the tri-state area of Nebraska, Iowa and South Dakota.
Sales decreased in 2008 after excluding the sales revenue from the recently acquired Standard Companies. The decline in
housing construction and absence of large paving projects delivered in 2007 contributed to this decline.
Siouxland purchased Standard Ready Mix Concrete and its affiliated concrete companies: Maurice Concrete Supply and
Ludey’s Ready Mix in June 2008. These three new locations enabled Siouxland to nearly double its market area and sales
volume with locations in Sioux City and Maurice, Iowa, and Vermillion, S.D. Siouxland’s ready mix truck fleet nearly
doubled, and approximately 40 experienced employees joined the Ash Grove family.
Permanent Paving, Inc.
In its fifteenth year of operation, Permanent Paving, Inc., (PPI) enjoyed a record year in 2008. Both sales and profit exceeded expectations. PPI experienced no accidents in 2008.
Family of Companies
16
Three of Permanent Paving’s high profile projects included:
• Paving
two miles of the Overland Park section of Nall Avenue from 151st Street to 159th Street, which earned PPI the
American Concrete Paving Association’s Award of Excellence for Street Construction;
• Custer
Hill Bed Down Project at Fort Riley, Kan., which is the area that U.S. troops go to first to safely unload, store
and secure ammunition and firearms when they return to the U.S. from war or training;
• Vehicle
Maintenance Facility at Fort Riley, Kan., which is a large parking area used to stage U.S. military vehicles.
Permanent Paving continues its community involvement. At Truman Medical Center West in Kansas City, Mo., the company donated the hospital’s monument slab. For the Temporary Lodging for Children (TLC), Permanent Paving donated
repairs to the main parking area and parking at
its emergency shelter. TLC is an Olathe, Kan.,
non-profit organization that serves children
from Johnson, Miami and Leavenworth counties
in Kansas.
Permanent Paving, Inc. paved two miles
of Nall Avenue in Overland Park, Kan.
The project received the American Concrete
Paving Association’s Award of
Excellence for Street Construction.
Customer Service
Outstanding customer service is an Ash
Grove tradition. One of our competitive advantages is the company’s ability
to offer its customers technical analyses
of samples. In 2008, the Ash Grove
Technical Center analyzed nearly 2,000
samples and issued 435 reports.
The Technical Center staff provided
valuable support for Ash Grove Cement
Company plants. The staff ’s efforts
involved clinker and cement analyses
and raw material exploration sample
analyses.
Customer Service
17
Building a Strong Future
Employees are one of our most valuable company resources. Their success and development underpins Ash Grove’s success. Developing strong leadership in the organization has and will continue to
set Ash Grove apart from others in the industry.
In 2008, Ash Grove continued to build a strong foundation by encouraging employees to focus
on both personal and professional development. Through these efforts, employees, managers and
leaders have demonstrated a clear commitment to their personal growth and our future. But this is
just the start. In 2008, reorganization of the Training and Development department established the
company’s long-term commitment to growing our own talent. In the future, employees can expect
new and different opportunities to assure that personal and professional growth occurs.
Ash Grove Charitable Foundation
Building A Strong Future / Charitable Foundation
18
Exercising our corporate citizenship as a community builder in the markets we serve is one of Ash
Grove’s management priorities.
The Ash Grove Charitable Foundation makes grants annually to support the work of charitable organizations possessing tax exempt status under section 501(c)(3) of the Internal Revenue Code.
The foundation prefers to make grants for capital and special projects, with building construction,
renovation and restoration receiving primary consideration.
In 2008 the Ash Grove Charitable Foundation contributed nearly $500,000 to projects throughout the
Ash Grove Cement Company’s regional markets.
Projects receiving support in 2008 included:
The Ash Grove Charitable Foundation’s
areas of interest for giving include:
• higher education
• environmental initiatives
• youth-serving agencies
• civic projects
• Beautification
of Kaw Point Park in Kansas City, Kan.;
• Hospital
improvements in Sandpoint, Idaho;
• Training
Center for the blind in Las Vegas, Nev.
Ash Grove Cement Company 2008 Scholarship Recipients
Ash Grove Cement Company established the Ash Grove Scholarship Program in 2005. It awards up to five $2,000 renewable scholarships annually for dependents of the company and its wholly-owned subsidiaries. Ash Grove’s financial commitment to fund these scholarships is a significant employee benefit to the
recipient families.
The information below highlights the educational achievements and career plans of our 2008 scholarship recipients.
Heather Finch is the daughter of Lori and Alan Finch, production manager at the Durkee plant. She graduated from Fruitland High School in Idaho, where she was a member of the National Honor Society and senior class vice president. Heather
began her studies in education at Brigham Young University in fall 2008.
Finch
Kathryn Layne Morgan is the daughter of Michelle and Eddie Morgan, district sales manager for the Southern Region. She
graduated from the C. E. Byrd High School in Shreveport, La., where she ran cross country and was a varsity cheerleader.
She also was a member of the National Honor Society and president of the Nature Club. She began studying forensic
chemistry at the University of Mississippi in fall 2008.
Kaitlyn Ugelstad is the daughter of Kimberly McDonald and Donald Ugelstad, maintenance manager at the Seattle plant.
Kaitlyn graduated from the Annie Wright School in Tacoma, Wash., where she served as the captain of the varsity volleyball
team, which qualified for state two years in a row. She also was the vice president of the Technology Student Association. Kaitlyn began her studies in engineering at Washington State University-Pullman in fall 2008.
Ugelstad
Eric Post is the son of Linda and Stan Post, plant engineer at the Louisville plant. Eric graduated from the SyracuseDunbar-Avoca High School in Syracuse, Neb., where he was a member of the National Honor Society, vice president of
the local FFA chapter and a 2008 National FFA Risk Management Essay Contest winner. Eric began his pre-veterinary
medicine studies at the University of Nebraska-Lincoln in fall 2008.
Post
Kelsey Thompson is the daughter of Tammy and James L. Thompson, maintenance manager at the Inkom plant. Kelsey
graduated from Marsh Valley High School in Arimo, Idaho, where she served as a senior class student council representative, member of the Honor Society and member of the varsity basketball and softball teams. Kelsey began studying dental
hygiene at Idaho State University in Pocatello in fall 2008.
Thompson
Scholarship Recipients
19
Morgan
Locations
Locations
20
Facilities
Midwest Division: Overland Park, Kan.
Sales Offices: Omaha, Neb.; Overland Park, Kan.; Little Rock, Ark.
Cement Plants: Louisville, Neb.; Chanute, Kan.; Foreman, Ark.
Cement Terminals: Alexandria, La.; Cozad, Neb.; Des Moines, Iowa;
Hawarden, Iowa; Henderson, Colo.; Kansas City, Kan.;
Memphis, Tenn.; North Little Rock, Ark.; Oklahoma City, Okla.;
Shreveport, La.; Van Buren, Ark.
Ash Grove Technical Center: Overland Park, Kan.
Ash Grove Cement Company Texas Division
Midlothian, Texas
Sales Offices: Houston, Texas; Midlothian, Texas
Cement Plant: Midlothian, Texas
Cement Terminal: Denton, Texas
Ash Grove Cement Company West Division
Portland, Ore.
Sales Offices: Bellevue, Wash.; Boise, Idaho; Portland, Ore.;
Salt Lake City, Utah
Cement Plants: Durkee, Ore.; Inkom, Idaho; Montana City, Mont.;
Leamington, Utah; Seattle, Wash.
Cement Terminals: Elko, Nev.; Idaho Falls, Idaho;
Kennewick, Wash.; Meridian, Idaho; Murray, Utah;
North Las Vegas, Nev.; Portland, Ore.; Salt Lake City, Utah;
Spokane, Wash.
Import Terminal: Portland, Ore.
Calcium Carbonate Grinding Plant: Portland, Ore.
Quarry: Texada Island, B.C.
Ash Grove Cement Company Subsidiaries
Ash Grove Materials Corporation: Overland Park, Kan.
Ash Grove Aggregates: Butler, Mo.
Century Concrete: Belton, Mo.; Edwardsville, Kan.;
Harrisonville, Mo.; Kansas City, Mo.; Lee’s Summit, Mo.;
Martin City, Mo.; Olathe, Kan.
Fordyce Concrete Co.: Kansas City, Kan.; Kansas City, Mo.
Holliday Sand & Gravel Company: Lenexa, Kan.
Materials Packaging: Harrisonville, Mo.; Fremont, Neb.;
Memphis, Tenn.; Salt Lake City, Utah
Material Transport Co.: Overland Park, Kan.
Permanent Paving: Overland Park, Kan.
Precision Packaging: North Little Rock, Ark.; Jackson, Miss.;
Ft. Smith, Ark.
Ash Grove Resources, LLC (joint venture; 50% Ash Grove)
Topeka, Kan.
Concrete Company of Springfield (60% Ash Grove)
Springfield, Mo.
Houston Cement Company (65% Ash Grove): Houston, Texas
Import Terminal: Houston, Texas
Lyman-Richey Corporation: Omaha, Neb.
Lyman-Richey Sand & Gravel Co.
Ready Mixed Concrete Co.
Central Sand and Gravel Co.
Gerhold Concrete Co.
Shamrock Concrete Co.
Plattsmouth Ready-Mixed Co.
Cohron Ready Mix
Siouxland Concrete Co.: South Sioux City, Neb.
21
Facilities
Ash Grove Cement Company
Ash Grove Cement Company Board of Directors
JAMES P. SUNDERLAND
Honorary Chairman of the Board
Ash Grove Cement Company
CHARLES T. SUNDERLAND
Chairman of the Board
Ash Grove Cement Company
JOHN W. WEBSTER
President
John R. Webster Company
Omaha, Nebraska
KENTON W. SUNDERLAND
Vice Chairman of the Board and Secretary
Ash Grove Cement Company
JOHN F. WOODFILL
Vice President - Finance
Ash Grove Cement Company
GEORGE M. WELLS
Vice Chairman of the Board - Strategic Relations
Ash Grove Cement Company
F. LYNN MARKEL
Retired, Executive Vice President
and Chief Financial Officer
Koch Industries, Inc.
CHARLES T. WIEDENHOFT
President
Ash Grove Cement Company
Front Row, L-R: Chuck Wiedenhoft, Charlie Sunderland and Kent Sunderland.
Middle Row, L-R: John Woodfill, John Webster, James Sunderland and Lynn Markel.
Back Row, L-R: George Wells and Chuck Larson.
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Board of Directors / Company Officers
CHARLES V. LARSON
Private Investor
Ash Grove Cement Company Officers
CHARLES T. SUNDERLAND
Chairman of the Board
KENT W. SUNDERLAND
Vice Chairman of the Board and Secretary
CHARLES T. WIEDENHOFT
President
EILEEN FLINK
Vice President and General Counsel
JOHN F. WOODFILL
Vice President - Finance
FRAN STREITMAN
Vice President - Manufacturing
and Environmental Affairs
KENNETH J. RONE
Vice President - Manufacturing Services,
West Division
EDWIN S. PIERCE
Vice President - Manufacturing,
Midwest Division
MICHAEL J. HRIZUK
Vice President - Manufacturing, West Division
DEWEY C. FORE
Vice President - Sales, Midwest Division
DAVID H. BAKER
Vice President - Sales, West Division
JAMES M. GATENS
Vice President - Sales, Texas Division
DAVID W. EZELL
Vice President - Human Resources
Ash Grove Cement Company Corporate Contacts
Ash Grove Cement Company
Ash Grove Cement Company Subsidiaries
Executive
Charlie Sunderland, Chairman of the Board
Kent Sunderland, Vice Chairman & Secretary
Charles Wiedenhoft, President-COO
George Wells, Vice Chairman, Strategic Relationships
Ash Grove Aggregates, Inc.
Highway 52 West • Butler, Mo. 64730
660-679-4128 • www.ashgroveagg.com
Allan Emby, President - Aggregates & Ready Mix
Communications & Public Affairs
Jacqueline K. Clark, APR, Director of Communications and Public Affairs
Environmental Affairs
Fran Streitman, Vice President-Manufacturing and Environmental Affairs
Curtis Lesslie, Director of Environmental Affairs
Steve Minshall, Corporate Health & Safety Director
Human Resources
David Ezell, Vice President - Human Resources
Deanna Cauley, Director of Training & Employee Development
Information Systems
Bill Hicks, Director of Information Technology
Legal/Risk
Eileen Flink, Vice President and General Counsel
Gary Church, Assistant Secretary & Assistant General Counsel
Steve Ryan, Assistant Secretary & Assistant General Counsel
Bob Dabler, Risk Manager
Manufacturing
Michael Hrizuk, Vice President-Manufacturing, West Division
Ed Pierce, Vice President-Manufacturing, Midwest Division
Ken Rone, Vice President-Corporate Maintenance, West Division
Fran Streitman, Vice President-Manufacturing and Environmental Affairs
Ron Vidergar, Director of Process Engineering
Gregory S. Barger, Technical Center Director
Marketing and Sales
David Baker, Vice President - Sales, Western Division
Dewey C. Fore, Vice President - Sales, Midwest Division
James M. Gatens, Vice President - Sales, Texas Division
Purchasing and Energy Policy
Gene Brieck, Director of Purchasing
Andy Lippert, Corporate Energy Director
Ash Grove Resources, LLC
5375 SW 7th Street Suite 400 • Topeka, Kan. 66606
785-267-1996 • www.ashgroveresources.com
Brady Pryor, President
Holliday Sand & Gravel Company
9660 Legler Road • Lenexa, Kan. 66219
913-492-5920
Kevan Fouts, President
Houston Cement Company, L.P.
363 N. Sam Houston Parkway East Suite 390 • , Texas 77060
281-260-3700
James M. Gatens, President
Kansas City Ready Mix Group
11011 Cody Street Suite 150 • Overland Park, Kan. 66210
913-345-2030
Allan Emby, President - Aggregates & Ready Mix
Lyman-Richey Corporation
4315 Cuming Street • Omaha, Neb. 68131
402-558-2727 • www.lymanrichey.com
Pat Gorup, President
Permanent Paving, Inc.
11011 Cody Street • Overland Park, Kan. 66210
913-451-7834 • www.permanentpaving.com
Stephen Bird, President
Precision Packaging, Inc./Materials Packaging Corporation
10816 Executive Center Drive, Suite 100 • Little Rock, Ark. 72211
501-224-3372 • www.ashgrovepkg.com
Stephen E. Boyland, President
Home Office
11011 Cody Street • Overland Park, Kan. 66210 • 913-451-8900 • 800-545-1882
West Region Office
5 Centerpointe Drive Suite 350 • Lake Oswego, Ore. 97035 • 503-207-2700 • 800-547-3724
23
Corporate Contacts
Accounting
John Woodfill, Vice President - Finance
Debbie Mays, Assistant Treasurer & Controller
Mark Meads, Assistant Treasurer & Director of Taxation
Contacts
Contacts
24
Director of Communications & Public Affairs
Jacqueline K. Clark, APR
[email protected]
Communications Administrator
Susan E. Richardson
[email protected]
Ash Grove Cement Company
11011 Cody Street Overland Park, Kansas 66210
800-545-1882 913-451-8900
www.ashgrove.com
This document is printed on 80 lb Flo Gloss Text, a Forest Stewardship
Council-certified paper that is made with 10 percent post-consumer
recycled content.
Ash Grove Cement Company
11011 Cody Street
Overland Park, Kansas 66210
www.ashgrove.com