Washington Group JV to build large cement plant

Washington Group International Joint Venture to Build One of the World’s Largest Cement Plants

Boise, United States of America – Washington Group International (Nasdaq: WGII) 2006-11-20 announced that Washington Group Alberici, its majority-owned joint venture with Alberici Constructors, has been awarded a contract to build one of the world’s largest cement plants for Holcim (US) Inc., a major manufacturer and supplier of cement and mineral components in the United States.

Washington Group Alberici will provide procurement, construction management, and general contractor services for the main plant associated with the $905 million cement-manufacturing complex located in northern Ste. Genevieve County, Mo., approximately 55 miles south of St. Louis.

"Our team is excited about bringing our world-class experience to such a massive project and a global client such as Holcim," said Gary C. Baughman, president of Washington Group’s Industrial/Process Business Unit. "We’re committed to providing Holcim with a signature facility and hope to explore other opportunities to expand our services with Holcim."

"Washington Group and Alberici have stellar track records for executing projects safely, cost-effectively and on time, and both have strong regional experience. Their selection is a major step forward on this important project," said Russell Wiles, senior vice president of Holcim.

The facility’s single kiln will produce 12,000 metric tons of clinker per day (four million tons of cement annually), making it the largest single clinker production line in the world. Clinker is the material made by heating ground limestone and other raw materials. The clinker is then ground into a fine powder to produce cement, with a small amount of gypsum added to control the setting properties.

The facility will also make use of the most advanced equipment and technology available, providing for emission limits among the lowest of any cement plant in the United States and the world.

The plant will be located in a former quarry area, with a harbor extending to the nearby Mississippi River, where most of the plant’s finished product will be loaded on barges for transport.

Site preparation work is already under way with major plant construction work to begin immediately. Plant startup is scheduled for the third quarter of 2009.

Washington Group International, based in Boise, and Alberici Constructors, headquartered in St. Louis, have been working together for more than 40 years for clients ranging from auto manufacturers to beverage distributors. A similar joint venture is working to build a new dam across the lower Ohio River for the U.S. Army Corps of Engineers.

Holcim (US) Inc. is a subsidiary of Holcim Ltd. of Switzerland. With majority and minority interests in over 70 countries on all continents, Holcim Ltd. is one of the world’s leading suppliers of cement, as well as aggregates (gravel and sand), concrete, and construction-related services.

Washington Group International (Nasdaq: WGII) provides the talent, innovation, and proven performance to deliver integrated engineering, construction, and management solutions for businesses and governments worldwide. With more than $3 billion in annual revenue, the company has approximately 24,000 people at work around the world providing solutions in power, environmental management, defense, oil and gas processing, mining, industrial facilities, transportation, and water resources. For more information, visit www.wgint.com

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are identified by the use of forward-looking terminology such as may, will, could, should, expect, anticipate, intend, plan, estimate, or continue or the negative thereof or other variations thereof. Each forward-looking statement, including, without limitation, any financial guidance, speaks only as of the date on which it is made, and Washington Group undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. The forward-looking statements are necessarily based on assumptions and estimates of management and are inherently subject to various risks and uncertainties. Actual results may vary materially as a result of changes or developments in social, economic, business, market, legal, and regulatory circumstances or conditions, both domestically and globally, as well as due to actions by customers, clients, suppliers, business partners, or government bodies. Performance is subject to numerous factors, including demand for new power generation and for modification of existing power facilities, public sector funding, demand for extractive resources, capital spending plans of customers, and spending levels and priorities of the U.S., state and other governments. Results may also vary as a result of difficulties or delays experienced in the execution of contracts or implementation of strategic initiatives. For additional risks and uncertainties impacting the forward-looking statements contained in this news release, please see "Note Regarding Forward-Looking Information" and "Item 1A. Risk Factors" in Washington Group’s annual report on Form 10-K for fiscal year 2005.

Auteur: Redactie Infrasite

Bron: Washington Group Corporate Headquarters