Titan America announced that it is pulling the plug on plans to build a $450 million cement production facility near Castle Hayne, N.C., a project that had been in the works for more than eight years.

Company officials said the supply and demand balances in the specific regional markets do not support the relatively high cost of constructing a new cement plant.

“Our decision to suspend construction on the cement plant in Castle Hayne is driven by basic project economics,” said Bill Zarkalis, Titan America’s CEO. “The pace of demand growth in the specific markets does not seem adequate to justify the addition of substantial new production capacity - more so because the costs to construct a new cement plant in the United States have risen substantially in the past few years.  Finally, the overall risk profile of the project has worsened as new coastal capacity in North Carolina could be vulnerable to cement imports, considering the strong US dollar, the global cement supply situation and low ocean freight costs.”

The Castle Hayne project, first announced in 2008, was expected to create 161 new jobs and inject an investment of about $450 million.

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