Summit Materials Announces Full Conversion to Portland Limestone Cement at Continental Cement Company’s Davenport Plant

Rhea-AI Summary

Summit Materials (NYSE: SUM) has announced that its Davenport plant has converted 100% of its production to Portland Limestone Cement (PLC) as of April 2022. This transition, which produced approximately 1.1 million tons of cement in 2021, reduces carbon emissions per ton by up to 10% compared to traditional Portland cement. The move reflects Summit's commitment to sustainability and social responsibility, enhancing its role in the growing demand for lower carbon solutions in construction materials.

Positive

• 100% production conversion to Portland Limestone Cement at Davenport plant.
• Reduces carbon emissions by up to 10%.
• Demonstrates commitment to sustainability and social responsibility.
• Potential for wider adoption of PLC in U.S. markets.

Negative

• None.

Reflects 100% of production from Davenport starting in April 2022

Reduces carbon emissions per ton by up to 10% relative to traditional Portland Cement

Exemplifies Summit’s Commitment to Social Responsibility

DENVER--(BUSINESS WIRE)-- Summit Materials, Inc. (NYSE: SUM) (“Summit,” “Summit Materials,” "Summit Inc." or the “Company”), a leading vertically integrated construction materials company, announces that its Davenport plant, operated by Continental Cement Company, LLC (“Continental Cement”) a subsidiary of Summit, has converted 100% of its annual production to Portland Limestone Cement (“PLC”). In 2021, the Davenport plant produced approximately 1.1 million tons of cement.

Portland Limestone Cement (“PLC”) is a blended cement with a higher limestone content, which results in a product that has similar performance characteristics as traditional Portland Cement, but with a reduction in carbon footprint of 10% on average.

"Continental Cement Company has been working with our customers and specifiers to commercialize Portland Limestone Cement (“PLC”) in all of our markets, and we are delighted that PLC adoption has progressed quickly,” commented David Loomes, Continental Cement President and Senior Vice President of Summit Materials. “PLC reduces concrete embodied carbon by approximately 10% while delivering resilient and durable infrastructure to our communities. The conversion of our Davenport plant can pave the way for more widespread adoption of PLC throughout our markets and more broadly throughout the United States.”

Continental Cement is an established industry leader in championing lower carbon solutions and the use of alternative fuels, deriving an average of about 40% of the Company’s total fuel usage from alternative fuels (based on 2021 usage) across its two plants located in Davenport, Iowa, and Hannibal, Missouri. The Company’s Hannibal cement plant processes both liquid and solid hazardous waste as a fuel source, while its Davenport Cement Plant uses non-hazardous alternative fuels from surrounding industrial facilities. Continental Cement’s subsidiary, Green America Recycling, LLC (“Green America”), is a crucial component for sourcing, securing, and implementing the Company’s alternative fuel strategy. As such, Green America is in the process of expanding its Hannibal facility. The Company also expects that its Hannibal cement plant will also soon transition to PLC, the timing of which will be determined as market adoption progresses.

“Our transition to PLC at Davenport aligns with the Portland Cement Association’s Roadmap to Carbon Neutrality,” commented Tom Beck, EVP of Summit Materials. “Given the significant role of cement in society and anticipated infrastructure development, it is critical that the industry comes together and acts now to create sustainable building solutions for decades to come. The U.S. cement and concrete industries can collectively address climate change, decrease greenhouse gases and eliminate barriers that are restricting environmental progress through the continued adoption of product and manufacturing innovations.”

About Summit Materials

Summit Materials is a leading vertically integrated materials-based company that supplies aggregates, cement, ready-mix concrete and asphalt in the United States and British Columbia, Canada. Summit is a geographically diverse, materials-based business of scale that offers customers a single-source provider of construction materials and related downstream products in the public infrastructure, residential and nonresidential end markets. Summit has a strong track record of successful acquisitions since its founding and continues to pursue growth opportunities in new and existing markets. For more information about Summit Materials, please visit www.summit-materials.com.

About Continental Cement Company

Continental Cement Company is a leading provider of cement based in Chesterfield, MO with plants in Hannibal, MO and Davenport, IA and 9 distribution terminals along the Mississippi River between Minneapolis, MN and New Orleans, LA. Continental Cement has built its business on consistent quality, superior service, and delivering a great experience since they began producing cement at their Hannibal location in 1903. The Company provides high quality cement for projects along the Mississippi corridor and is a subsidiary of Summit Materials, Inc.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the federal securities laws, which involve risks and uncertainties. Forward-looking statements include all statements that do not relate solely to historical or current facts, and you can identify forward-looking statements because they contain words such as "believes, " "expects," "may," "will," "should," "seeks," "intends," "trends," "plans," "estimates," "projects" or "anticipates" or similar expressions that concern our strategy, plans, expectations or intentions. These forward-looking statements are subject to risks, uncertainties and other factors that may cause our actual results, performance or achievements to be different from future results, performance or achievements expressed or implied by such forward-looking statements. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, it is very difficult to predict the effect of known factors, and, of course, it is impossible to anticipate all factors that could affect our actual results.

In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be realized. Important factors could affect our results and could cause results to differ materially from those expressed in our forward-looking statements, including but not limited to the factors discussed in the section entitled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended January 1, 2022. Such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission ("SEC"), which are accessible on the SEC's website at www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220331005099/en/

Karli Anderson

EVP, Chief Environmental, Social & Governance Officer and Head of Investor Relations

karli.anderson@summit-materials.com

303-875-3886

Source: Summit Materials, Inc.

FAQ

What recent announcement did Summit Materials (SUM) make regarding its Davenport plant?

Summit Materials announced that its Davenport plant has converted 100% of its production to Portland Limestone Cement (PLC) as of April 2022.

How much cement did the Davenport plant produce in 2021?

The Davenport plant produced approximately 1.1 million tons of cement in 2021.

What are the environmental benefits of Portland Limestone Cement according to Summit Materials?

Portland Limestone Cement reduces carbon emissions by up to 10% compared to traditional Portland cement.

What does the PLC transition signify for Summit Materials and the industry?

The PLC transition signifies Summit's commitment to sustainability and paves the way for wider adoption of lower carbon construction solutions in the industry.