BIRMINGHAM, Ala., April 25,
2022 /PRNewswire/ -- Vulcan Materials Company
(NYSE:VMC), the nation's largest producer of construction
aggregates, today provided an update with respect to its Mexican
operations.
"We are making progress in our discussions with the Government
of Mexico," said Tom Hill, Chairman and CEO of Vulcan Materials
Company. "Earlier this year, Mexico delayed issuing a historically routine
three-year customs permit for Vulcan's deep-water port at
Punta Venado. In March, we
received that customs permit, which enabled us to continue
servicing our customers."
In discussions between Vulcan and senior Mexican officials
earlier this month, Vulcan once again indicated its openness to
supply construction materials needed for the construction of the
Mayan Train and other infrastructure projects and to make port
capacity available for transfer of train-related construction
materials. Vulcan also indicated an openness to adapt its mine plan
to enable development and construction over time of a large-scale
ecotourism project—suggested by the Government of Mexico—on land
owned by the Company, as long as the Company can continue supplying
its customers. Development could begin immediately on certain areas
of the land owned by Vulcan from which reserves have already been
depleted. Finally, Vulcan is also prepared to explore an expansion
of the Punta Venado maritime
terminal to receive passenger, freight and naval vessels in the
coming years.
"While there is more to be done before a final binding agreement
can be reached, we are working toward a satisfactory resolution for
all those involved that enables us to continue to supply aggregates
to our customers," continued Mr. Hill.
Since late 2018 and as previously disclosed, Vulcan Materials
has been engaged in a NAFTA arbitration with Mexico over Mexico's repudiation of an agreement to unlock
a portion of Vulcan's aggregates reserves in Mexico and the arbitrary shutdown of a portion
of the Company's quarrying operations there. A hearing took place
in July 2021, and a decision is
expected in the second half of 2022. Vulcan has continued to engage
with government officials to pursue an amicable resolution of the
dispute while awaiting the final resolution from the NAFTA
tribunal.
The Company has quarried limestone legally in Mexico—on land
that it owns—for over 30 years. Vulcan is the sole owner of four
lots of land south of Playa del Carmen, Quintana Roo, that together form its "Sac Tun"
operation, formerly known as Calica. Vulcan has the right to
maintain full property ownership over these lots, owns the
limestone reserves in the same, and complies and has always
complied with Mexican law, including the laws and permitting
regulating our operations from which we service our customers both
in Mexico and abroad.
About Vulcan Materials Company
Vulcan Materials
Company, a member of the S&P 500 Index with headquarters in
Birmingham, Alabama, is the
nation's largest supplier of construction aggregates – primarily
crushed stone, sand and gravel – and a major producer of
aggregates-based construction materials, including asphalt and
ready-mixed concrete. For additional information about
Vulcan, go to www.vulcanmaterials.com.
FORWARD-LOOKING STATEMENT DISCLAIMER
This document
contains forward-looking statements. Statements that are not
historical fact, including statements about Vulcan's beliefs and
expectations, are forward-looking statements. Generally,
these statements relate to future financial performance, results of
operations, business plans or strategies, projected or anticipated
revenues, expenses, earnings (including EBITDA and other measures),
dividend policy, shipment volumes, pricing, levels of capital
expenditures, intended cost reductions and cost savings,
anticipated profit improvements and/or planned divestitures and
asset sales. These forward-looking statements are sometimes
identified by the use of terms and phrases such as "believe,"
"should," "would," "expect," "project," "estimate," "anticipate,"
"intend," "plan," "will," "can," "may" or similar expressions
elsewhere in this document. These statements are subject to
numerous risks, uncertainties, and assumptions, including but not
limited to general business conditions, competitive factors,
pricing, energy costs, and other risks and uncertainties discussed
in the reports Vulcan periodically files with the SEC.
Forward-looking statements are not guarantees of future
performance and actual results, developments, and business
decisions may vary significantly from those expressed in or implied
by the forward-looking statements. The following risks
related to Vulcan's business, among others, could cause actual
results to differ materially from those described in the
forward-looking statements: general economic and business
conditions; a pandemic, epidemic or other public health emergency,
such as the COVID-19 outbreak; Vulcan's dependence on the
construction industry, which is subject to economic cycles; the
timing and amount of federal, state and local funding for
infrastructure; changes in the level of spending for private
residential and private nonresidential construction; changes in
Vulcan's effective tax rate; the increasing reliance on information
technology infrastructure, including the risks that the
infrastructure does not work as intended, experiences technical
difficulties or is subjected to cyber-attacks; the impact of the
state of the global economy on Vulcan's businesses and financial
condition and access to capital markets; risks related to
international business operations and relationships, including
recent actions taken by the Mexican government with respect to
Vulcan's property and operations in that country; the highly
competitive nature of the construction industry; the impact of
future regulatory or legislative actions, including those relating
to climate change, wetlands, greenhouse gas emissions, the
definition of minerals, tax policy or international trade; the
outcome of pending legal proceedings; pricing of Vulcan's products;
weather and other natural phenomena, including the impact of
climate change and availability of water; availability and cost of
trucks, railcars, barges and ships as well as their licensed
operators for transport of Vulcan's materials; energy costs; costs
of hydrocarbon-based raw materials; healthcare costs; labor
shortages and constraints; the amount of long-term debt and
interest expense incurred by Vulcan; changes in interest rates;
volatility in pension plan asset values and liabilities, which may
require cash contributions to the pension plans; the impact of
environmental cleanup costs and other liabilities relating to
existing and/or divested businesses; Vulcan's ability to secure and
permit aggregates reserves in strategically located areas; Vulcan's
ability to manage and successfully integrate acquisitions; the
effect of changes in tax laws, guidance and interpretations;
significant downturn in the construction industry may result in the
impairment of goodwill or long-lived assets; changes in
technologies, which could disrupt the way Vulcan does business and
how Vulcan's products are distributed; and other assumptions, risks
and uncertainties detailed from time to time in the reports filed
by Vulcan with the SEC. All forward-looking statements in
this communication are qualified in their entirety by this
cautionary statement. Vulcan disclaims and does not undertake
any obligation to update or revise any forward-looking statement in
this document except as required by law.
Investor Contact: Mark Warren (205) 298-3220
Media Contact: Janet Kavinoky (205) 298-3220
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SOURCE Vulcan Materials Company