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16G
<br />The Denver Post./Sunday, Octol
<br />Swiss cement demand
<br />off; U.S. markets up
<br />SWISS from Page 1-G
<br />Cement Inc. of Montreal, Quebec,
<br />Canada, seven years earlier.
<br />: Sl. Lawrence is now the largest
<br />cement producer in eastern Cana-
<br />da and in the past [wo years has
<br />acquired two U.S. cement plants
<br />from Lone Star: the 500,000-ton-ca-
<br />pacity Hagerstown, Md., plant and
<br />a- dlstnbulion center for $63.5 mil-
<br />lion and the 550,000-ton-capacity
<br />Catskill, N.Y., plant for $30 million
<br />- flolderbank's U.S. acquisitions
<br />reflect a worldwide shift in polen-
<br />ttatsales growth. Board chairman
<br />Thodtas Schmidheiny, 41, one of
<br />Europe's most respected industri-
<br />alists; has noted a sustained de-
<br />cline in European demand for ce-
<br />ment, while 1985 sales in North
<br />America grew 14.4 percent. Pori of
<br />the growth was the Sl. Lawrence
<br />Maryland acquisition.
<br />North America contributed 32.6
<br />percent to Holderbank's sales and
<br />33.3 percent to earnings in 1965,
<br />said.Ronald Walker, assistant vice
<br />.president & information officer.
<br />Walker declined to break ou[ U.S.
<br />figures.
<br />Dundee Cement pioneered the
<br />concept of building large cement
<br />plants and assuring distribution of
<br />its production through terminals.
<br />Accessibility to [he waterway sys-
<br />lem of the Mississippi River and its
<br />tributaries has been a key factor. A
<br />fleet of 50 specially designed, en-
<br />closed hopper barges, which carry
<br />1,450 tons of cement each, was sub-
<br />sequently acquired.
<br />[n 1978 Dundee acquired the San-
<br />tee Cement Company with a 1.2-
<br />million-ton-per-annum cement
<br />plant in klolly Bill, S.C. Bootee's
<br />market area is contiguous to the
<br />market served from Dundee and
<br />Clarksville.
<br />In 1981 Dundee was the success-
<br />ful bidder for properties of the
<br />Penn-Dixie Cement Company sold
<br />in bankruptcy court. Included in
<br />this purchase was the obsolete and
<br />idle plant at Petoskey, Mich., and
<br />distribution terminals at Detroit
<br />and Holland, Mich. Chicago, III.,
<br />and Milwaukee, Wis.
<br />The pending acquisition of Ideal
<br />extends ifolderbank through the
<br />West Coast by way of Seattle,
<br />Wash.
<br />Outside Holclerbank, the private
<br />holdings of members of the Schmi-
<br />dheiny family extend tar beyond
<br />cement -into banking, construc-
<br />tion, watchmaking, and wineries.
<br />Five varietals are produced at the
<br />Cuvaison Inc. Napa Valley winery
<br />at Calistoga, Calif., which is owned
<br />by a private Schmidheiny family
<br />company.
<br />Kaiser lucrative for CEO
<br />and Springs-based Perma
<br />KAISER from Page 2-G
<br />~yedrs to give the company $6 mil-
<br />lion ayear Nrelief. It is technical-
<br />ly N default on a loan collateral-
<br />ized~by its common stock, officers
<br />admit.
<br />. Kaiser also hopes to develop an
<br />industrial park on its Fontana
<br />property, possibly utilizing a haz-
<br />ardous-waste disposal permit as a
<br />draw, and it's also considering us-
<br />ing. former iron ore mines in the
<br />Califonda desert as disposal sites
<br />or even landfill for Los Angeles.
<br />Despite its difficulties, Kaiser
<br />has been lucrative for Rial and the
<br />Perma Group. Rial was paid $2.4
<br />million in 1985, although he claims
<br />he has taken much Icss this year.
<br />Also, in Aprd 1985, when the buy-
<br />out of the Frates Group was com-
<br />pleted, Perma's Colorado coal
<br />properties, with reserves estimat-
<br />ed al 255 million tons, were trans-
<br />ferred to Kaiser in a complex ex-
<br />change that resulted in Kaiser's
<br />repaying about $1'l million indebt-
<br />edness on the properties and as-
<br />suming $11 million more.
<br />Additionally, Perma Mining,
<br />which runs Kaiser's coal business
<br />for it, collected about $4.6 million
<br />in tees during 1985.
<br />Although Kaiser currently has
<br />no oil and gas production on its
<br />properies, Perma Resources, an-
<br />other of Rial's affiliates, received
<br />fees of $388,000 in 1985 under an
<br />agreement to oversee Kaiser's oil
<br />and gas properties. There is poten-
<br />tial for oil and gas on Kaiser prop-
<br />erties in Utah and New Mexico
<br />that hadn't adequately been ex-
<br />plored Nthe past, McNeil said.
<br />All the deals with the Perma at-
<br />filiates were "arms-length transac-
<br />tions," contends McNeil. Although
<br />the Kaiser executives said the New
<br />York investment banking firm of
<br />Donaldson, Callon & Jenrette had
<br />passed on the fairness of the trans-
<br />action, DLJ refused to discuss the
<br />matter.
<br />Hendry isn't the oNy member of
<br />the financial community with
<br />doubts about Kaiser's future -one
<br />Wall Street analyst said, "I just
<br />don't think they can resolve their
<br />problems. The interest expense,
<br />the soft coal market - every-
<br />body's competing for business.
<br />There are people out there that
<br />will lake a contract if they can.
<br />make 50 cents a [on."
<br />"From an analytical standpoint,
<br />this company has serious prob-
<br />lems, and I mean 'serious' with a
<br />capital S," the analyst said.
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