Dragon Cement and Concrete Announces $50 Million Modernization of Aging Thomaston Plant

Gov. Baldacci says investment will "further solidify" Dragon's economic contribution to Maine

THOMASTON, Maine (February 3, 2003) - Dragon Cement and Concrete announced today it will embark upon a $50 million modernization of its cement plant in Thomaston, the first major expansion of New England's only cement plant since 1971.

Dragon President Joseph Koch said the modernization will increase efficiency and production capabilities while reducing costs. The project will permit Dragon to maintain or increase employment levels at the plant for the next 20 to 30 years.

The modernization, which will include a major overhaul and rebuilding of the plant, is expected to take 18 months. The project will result in jobs being maintained or added at the plant, rather than reduced as is the case in many industrial modernization efforts.

The modernization will change the cement-making process from a wet, slurry-type process used now to a dry, more state-of-the-art process that will save energy and reduce fuel consumption. The change will reduce the size of the kiln and increase production by about 40 percent, Koch said.

"To remain competitive, it is vital that we maintain state-of-the-art technology and equipment," Koch said. "Improving the cement plant will not only provide continued employment but will also increase exports from Maine, and help to increase revenues for the state. This rebuild of the plant marks the beginning of a new generation for Dragon."

Gov. John Baldacci said, "I'm very pleased that this investment is being made in Maine at this time. Dragon Products has been a part of this state for a century. The company's investment will further solidify its important economic contribution to Maine."

Maine Chamber President Dana Connors credited the Dragon team led by Koch, a former chairman of the Maine Chamber, for making such an important and lasting investment in Maine. "Dragon shares the vision for Maine that the Chamber holds," Connors said. "Investing in Maine means investing in its people, its greatest resource."

Headquartered in Portland, Dragon operates the only cement manufacturing facility in New England in Thomaston and is the largest supplier of ready-mix concrete in Maine. The company employs more than 225 full-time employees statewide.

The modernization is aimed at upgrading equipment at the Thomaston plant that ranged in age from 30 to 70 years and hampered Dragon's effort to compete in the marketplace.

"This modernization is a solid plan to keep the plant viable in a competitive market," Koch said, pointing to increased competition from Canada caused by the favorable exchange rate. "It will be good for the community and good for our employees at the plant, who are a key part of the Dragon team."

The most important improvement is the change over in cement production, Koch added. Presently, the company utilizes a wet-kiln process. Conversion to a dry process will provide dramatic savings in terms of energy by shortening kiln time from 150 minutes to 45 minutes and reducing fuel consumption by one third, Koch said.


"We will be able to produce 700,000 tons of cement on the same amount of fuel currently used to produce 500,000 tons," he said. "This increased efficiency will result in a positive environmental benefit because while our production will increase, our emissions will not."

Through a cooperative working relationship with the Maine Department of Environmental Protection, Dragon already has obtained all necessary environmental permits for construction and operation, Koch added.

To accommodate the increased production, new equipment such as a new cement barge, rail cars and storage capacity will be added. In 1995, Dragon expanded into southern New England cement markets with the addition of a multi-modal marine and rail terminal and shipping operation.

The "portland" cement produced in Thomaston - no relation to the city - is mined from its limestone quarry on the company's familiar site on coastal Route 1. The cement is supplied to most ready-mix companies in the state, and others throughout New England by barge through Coastal Cement terminals in Newington, N.H. and Boston.

Dragon also is Maine's largest ready-mix concrete supplier with operating concrete plants in Biddeford, Westbrook, Portland, Lewiston, Brunswick, Augusta, Canton, Fairfield, Farmington, Madawaska and Presque Isle.

Dragon is known for supplying cement and concrete to a number of major building projects in the state, including the Casco Bay Bridge linking Portland and South Portland, the Bath Iron Works expansion, the Big Dig in Boston, the Maine Turnpike expansion, the Portland Jetport expansion and new garage, and the new Kennebec River bridges in Fairfield. Dragon also supplies cement or concrete to paper mills, dams, homes, schools and commercial developments statewide.

Dragon also has received numerous safety and environmental awards in the past three years. The company is headquartered at 38 Preble St. in Portland. For additional information, log on to the company's web site at www.dragonproducts.com.

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