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The idling of manufacturing on the Dragon Cement plant in Thomaston might result in a domino impact of upper costs and extra difficult environmental laws in Maine.
Dragon Cement, one of many largest producers of cement in New England, introduced its plans earlier this month to idle production in Maine by 2025 and lay off about 65 staff. There are different cement vegetation within the Northeast and in Canada which may provide cement to companies in Maine, however a number of development and concrete companies right here depend upon Dragon’s cement.
Some in Maine are already worrying that the plant’s loss will ripple by means of the sector and push prices larger for firms and people who rent them, together with the general public businesses and establishments that make up two-thirds of construction sales right here. The impact on the general market is unsure for now, with regional voices saying there are sufficient suppliers to make up the hole.
Many of the firms that work with Consigli, a Portland-based development administration firm that operates down the Jap Seaboard, use Dragon’s cement of their combine, Matt Tonello, who runs the agency’s Maine operations, stated. He’s nervous they’ll must supply cement from elsewhere, maybe Boston or abroad, which may drive up costs.
“Faculties, libraries, each constructing that’s constructed, has acquired concrete in it, and we’re all going to really feel it,” Tonello stated.
There may very well be a selected impact on the transportation trade, stated Eric Ritchie, a vice chairman of the Orono-based regional development agency Sargent and the president of the Maine Higher Transportation Affiliation. Dragon provides kind 2 cement, which is the inspiration of loads of infrastructure development, so development prices may spike and lift taxes or tolls.
However Sargent not makes use of Dragon, and Jonathan Kuell of the Northern New England Concrete Affiliation stated there are sufficient cement suppliers by means of Boston, Canada and abroad to complement Maine’s trade. He stated he doesn’t see the imports rising any costs.
“From a provide standpoint, I don’t suppose anybody’s going to be ready for concrete,” Kuell stated.
Kuell added that the concrete and cement trade is rising. Expert Market Research tasks that the U.S. cement market will proceed rising by means of 2028.
However Dragon is among the solely producers of kind 1L cement within the area, which is extra eco-friendly than common cement, Tonello famous. It makes use of finely-ground limestone to cut back the necessity for high-temperature furnaces that dissipate extra gas and produce extra carbon. Consigli has shoppers which are relying on this type of cement for inexperienced functions.
“We’ve acquired a few environmental objectives on some tasks that are relying on the kind 1L, and we’re going to must rewrite these or change them,” Tonello stated.
However will probably be onerous to understand how precisely Dragon’s closure may have an effect on the development trade in Maine till it really stops manufacturing. Tonello stated he gained’t know for positive how a lot something will price till he receives quotes from suppliers.
In a press release, the Related Common Contractors of Maine stated the trade must regulate to make sure cement deliveries and the group is “clearly involved” concerning the closure. Final month, Gov. Janet Mills stated she hoped to speak with the homeowners of Dragon Cement and that its output was wanted in Maine, a sentiment that Tonello shared.
“I believe we have now acquired to discover a solution to maintain the place open,” he stated.
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