Nation's largest cement plant opens; Recovery Act projects fuel demand, jobs

Today is one of those days that inspire my optimism about America. I'll be in Ste. Genevieve, Missouri, to celebrate the recent opening of our nation's largest cement plant.

I understand if you aren't as excited by a new cement plant as I am. But, let me tell you that this plant generates more than cement.

Holcim Ste. Genevieve on the shores of the Mississippi River

Simply, we're talking about jobs and economic growth. Plant construction alone created more than 2,500 jobs for Missourians. And since Holcim St. Genevieve went operational, the plant has maintained 250 jobs, leading to an annual payroll of nearly $20 million.

And stories like this are popping up around America. As the Wall Street Journal reports today on its website, "The U.S. Labor Department said nonfarm payrolls rose by 431,000 last month, the largest gain since March 2000."

These are not just jobs. For families struggling to make ends meet, these jobs represent hope.

For example, when the Chrysler plant in St. Louis was shutting down awhile back, skilled workers who would have been out in the cold were a natural fit at Holcim, and the company was happy to snap them up.

And, when seasonal workers began looking around for a full-time paycheck, and when others got pink slips from small companies in the area that couldn’t keep their doors open, the Holcim plant gave them back their future by putting them to work.

But the good news doesn't end there. Because, according to a study by Southeast Missouri State University, the economic impact of the plant is projected to increase labor income in Missouri by $257 million, more than 10 times the plant's own payroll. And it is projected to support almost 5,000 new direct and indirect jobs.

Now, it's one thing to build a $1 billion plant capable of producing 4 million tons of cement. It's another to find the demand for that cement during challenging times.

And that's where the Obama Administration's hard work comes in. The American Recovery and Reinvestment Act made possible $26.6 billion in Federal Highway Administration infrastructure funds. Those funds have been committed to 12,200 highway, road, and bridge projects across America.

Those projects require cement, lots of it. In fact, according to the Portland Cement Association (PCA), infrastructure projects receiving that $26.6 billion in Recovery Act funds will result in 10 million metric tons of additional demand for cement. In turn, that additional cement consumption will result in revenues of roughly $950 million, creating and preserving jobs at cement plants and their surrounding communities at Ste. Genevieve and across the country.

Last year, 600,000 tons of the cement sold in the U.S. were tied directly to the Recovery Act. This year, the industry expects to do even better, selling 5 million tons of cement. This translates into $500 million in revenues, triggered entirely by FHWA Recovery Act projects.

Cement can ship from Ste. Genevieve up and down the Mississippi River on barges

We are doing this. We are rebuilding the economy even as we're rebuilding America's roadways. We are putting this country back on track and helping families recapture the American dream in Ste. Genevieve, Missouri, and across the US.

This Administration saw that ground-breaking investments in our nation’s transportation infrastructure would translate into jobs and economic opportunity for millions of Americans hit hard by the recession. And that’s exactly what’s happened.

And the Holcim Ste. Genevieve plant is emblematic of that success.

So, thank you, Congressman Russ Carnahan, Congresswoman Jo Anne Emerson, Governor Nixon, and the state legislative delegation for the persistence that made this plant possible. Thank you, also, Assistant Secretary of Commerce Nicole Lamb-Hale for working with all the parties involved.

This new cement plant is truly exciting--for the community of Ste. Genevieve, for the state of Missouri, and for the nation.

Comments

[Michael E. Bailey]

The ARRA has been critical to keeping the economy moving. And that it is responsible for spawning such major new infrastructure projects asthe Missouri cement plant makes it even better and its positive impacts much more broader. And these projects will improve the transporation infrastucture and be a major benefit to the economy for many many years into the future. Best wishes, Michael E. Bailey.