Having a multinational company build a new $300 million cement production plant from scratch on an isolated island of private land just north of Chino Valley is a major event for a rural area in Yavapai County.
Particularly after it hired more than 600 construction workers to build the plant.
And even better, when it employed 85 or so mostly local employees in well-paying jobs, with the probability of expansion in the future for even more of the same.
The direct economic impact for the area is dramatic, as the current collective annual payroll ranges from $4 million to $5 million annually.
Beyond that, indirect economic benefits – local purchases of products and services the company buys in the Quad Cities region – are substantial. It’s estimated, economists suggest, that every dollar spent locally turns over five to six times before it is eaten by taxes. And the taxes the company pays annually – thousands and thousands of dollars go into local, county and state coffers.
Add to that the number of homes purchased or rented by the employees. Then consider the amount those same employees spend for groceries, transportation, utilities, social and recreational activities – and everything else on which people spend money. That is a lot of “new money” that had not been there earlier.
Brad Belt, the chief operating officer for Drake Cement, says the majority of employees live in the Paulden-Chino Valley area, or in Prescott, Prescott Valley or immediately adjacent communities.
“We’re proud at Drake Cement that we were able to recruit, train and employ so many local people,” he said.
Belt, now an executive with Drake, is not unfamiliar with Yavapai County. Prior to working for Drake, he was an employee at the cement plant in Clarkdale, which is located east of the Drake plant just over the Mingus Mountains in the Verde Valley. Thus, Belt has almost two decades of experience as a cement company administrator. An Arizona native, he has a bachelor’s degree from the University of Arizona and an MBA from Keller Graduate School of Management.
How and Why in Yavapai County?
Construction of a cement plan is an expensive venture, Belt explains. That is why so few are in Arizona.
As such, the Drake construction plan is a showcase for advanced engineering and environmental technology, Belt says.
Original plans were conceived in the late in the 1990s, when the parent company, headquartered in Peru, recognized the building boom in the United States, especially in the Southwest. When the Drake site was identified as having what is estimated to be at least a 100-year supply of limestone, the prime ingredient for the manufacturing of cement, the company began its preliminary design. It filed permit requests with local, state and federal agencies. It created construction plans. That process took years, but finally, in 2004, construction began.
The reality of a major new industry in the county really hit home when Drake formally opened its production plant June 17, 2011.
Few people knew until then how truly historic the event was.
Why?
First, the site where the cement plant is located is on the century-old lime kiln communities of now abandoned Putenney and Drake that had begun in the late 1800s. You cannot even find those places on most modern maps.
Second, the new plant near Paulden is the first to be built in Arizona in more than 50 years. In fact, it is one of the newest in the United States.
Third, the plant is what is called a “closed loop” facility, one where virtually no gaseous or particulate emissions occur. Belt explained that ash and other emissions are recycled back into the production cycle.
Those standards are determined by the American Society of Testing Materials and are exceptionally rigorous. Further, stringent monitoring of environmental impact is required, so on a daily basis, emissions are checked and reported to the Environmental Protection Agency and to the Arizona Department of Environmental Quality.
In fact, Belt said, the unique technology pioneered at the Drake plant is such that it reduces emissions of nitrous oxides by up to 90 percent. That engineering process is now being initiated and used as a standard for new construction and retrofits throughout the entire cement industry.
What Products Do Employees Manufacture?
The technical and skilled labor employees at Drake work in a plant capable of producing as much as 2,000 tons of cement daily. Currently, because the building and construction industry is yet suffering from the Great Recession of 2007-2009, the plant is not producing at capacity. However, Belt said as demand continues to increase for portland cement, they will hire more skilled employees.
Incidentally, portland cement derives its name its name from an isle named Portland off the coast of England where limestone was mined commercially in the early 1800s to make cement.
At Drake, two major types of cement are manufactured – Type II for general use and Type V, which has a low alkaline content. Both are key ingredients for the making of concrete.
The limestone, which is quarried near the manufacturing plant, is processed through a carefully controlled seven-step process. The end product – bulk cement – is stored in a tall silo where it can be loaded for transportation.
Energy sources for the kilns, which “cook” the limestone to more than 2,700 degrees Fahrenheit, are primarily coal hauled in from the Four Corners area, complemented by natural gas through gas lines from Unisource.
Belt said the area around the quarry is “…reclaimed and restored, not left barren and naked.”
He also said in the future, plant expansion likely would be for storage of the bulk cement, as demand for the product grows. That also means that railroad transportation may be improved and added. The current high capacity rail switching facilities are located on BNSF mainlines.
What is more, expanded transportation facilities will create more skilled job opportunities for area residents.
Primary distribution markets for Drake products at this time are dominantly along the southeast corridor stretching to Phoenix and then Tucson; or northwest from the Quad Cities all the way to Las Vegas.
Drake Cement Personnel Consider Themselves Part of the Greater Community
Paulden resident Karen Otis is the administrative and community involvement coordinator for Drake. She is emphatic about the company’s commitment to “…being good neighbors and part of the Quad Cities community.”
“Personnel from the executive and managerial staff down through the newest plant employees are encouraged to be active in and part of the communities in which they live. We want to be good neighbors who are involved.”
Drake already has become supportive of Quad Cities efforts such as Habitat for Humanity, United Blood Services, the Salvation Army and the Chino Valley School District.
Otis said she would be willing to provide guidelines and protocols to anyone seeking support from the company. She can be contacted through the company website www.drakecement.com. or by telephone at 928-636-6004.
Former Chino Valley Mayor Karen Fann, now a member of the Arizona House of Representatives, praised the company for what it has done in the region.
“I was familiar with and supportive of the plans for Drake Cement to locate here several years ago. I feel honored to have worked with Drake folks well before the historic ribbon cutting. Not only has Drake Cement created a lot of jobs for our area, it also has contributed immensely to the overall economic growth for the Quad Cities area.”
Such a strong endorsement from an influential legislator seems to underscore the objectives and values Drake Cement leadership said would drive the company: Safety, Excellence, Respect and Value. QCBN
By Ray Newton
Quad Cities Business News
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