location: 1401 broadway street marseilles, la salle county, illinois plant manager: bailey wilson...

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LOCATION: LOCATION: 1401 Broadway Street 1401 Broadway Street Marseilles, La Salle County, Illinois Marseilles, La Salle County, Illinois Plant Manager: Plant Manager: Bailey Wilson Bailey Wilson Asst Plant Manager: Asst Plant Manager: Richard Barrett Richard Barrett Plant Controller: Plant Controller: Lyle Jobst Lyle Jobst Distribution Manager: Distribution Manager: John Mansson John Mansson Marseilles Marseilles Plant Plant

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Page 1: LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Richard Barrett Plant Controller:

LOCATION:LOCATION:1401 Broadway Street1401 Broadway Street

Marseilles, La Salle County, IllinoisMarseilles, La Salle County, Illinois

Plant Manager:Plant Manager:Bailey WilsonBailey Wilson

Asst Plant Manager:Asst Plant Manager:Richard BarrettRichard Barrett

Plant Controller:Plant Controller:Lyle JobstLyle Jobst

Distribution Manager:Distribution Manager:John ManssonJohn Mansson

Marseilles Marseilles PlantPlant

Page 2: LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Richard Barrett Plant Controller:

HistoryHistory• Marseilles was built in 1990 as a one-kiln plant.Marseilles was built in 1990 as a one-kiln plant.

• Global Clay Products LLC (Georgia) bought the plant in 1999, Global Clay Products LLC (Georgia) bought the plant in 1999, and in that year, started construction on a second Ceric kiln.and in that year, started construction on a second Ceric kiln.

• The second kiln was operational in late 2000, early 2001.The second kiln was operational in late 2000, early 2001.

• Glen-Gery purchased Marseilles Plant in December 2001.Glen-Gery purchased Marseilles Plant in December 2001.

Marseilles Marseilles PlantPlant

Reasons for the purchase:Reasons for the purchase:

• Have a modern plant in the Midwest market.Have a modern plant in the Midwest market.

• Enlarge our territory and introduce Glen-Gery products to new areas.Enlarge our territory and introduce Glen-Gery products to new areas.

• Get closer to the large brick-loving Chicago market and overall Midwest market. Get closer to the large brick-loving Chicago market and overall Midwest market. Being closer means getting brick there Being closer means getting brick there fasterfaster and and cheapercheaper than our than our competition.competition.

• Marseilles is only 60 miles away from Chicago – the 3Marseilles is only 60 miles away from Chicago – the 3 rdrd largest brick consuming largest brick consuming city in the U.S. Chicago uses 250 million brick per year.city in the U.S. Chicago uses 250 million brick per year.

• With the addition of Marseilles Plant, our production is evenly split between the With the addition of Marseilles Plant, our production is evenly split between the East and Midwest regions of the U.S.East and Midwest regions of the U.S.

Page 3: LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Richard Barrett Plant Controller:

Marseilles ModernizationMarseilles Modernization

$3 million upgrade*$3 million upgrade*

Make the plant compatible with Make the plant compatible with Glen-Gery’s manufacturing Glen-Gery’s manufacturing processes.processes.

REASON FOR UPGRADEREASON FOR UPGRADE

Marseilles Marseilles PlantPlant

Modifications to Kiln, Setting Machine, Modifications to Kiln, Setting Machine, Dehacker, Manufacturing Dept., YardDehacker, Manufacturing Dept., Yard

Laser search and locate system

*The cost of the modernization was factored into the buying price.*The cost of the modernization was factored into the buying price.

Page 4: LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Richard Barrett Plant Controller:

Marseilles Modernization OverviewMarseilles Modernization Overview

Marseilles Marseilles PlantPlant

SETTING MACHINESETTING MACHINE• Relieve the edges on architectural brick to minimize chippageRelieve the edges on architectural brick to minimize chippage• New textures for residential product developmentNew textures for residential product development• More efficient production of size formats (make king size)More efficient production of size formats (make king size)

DEHACKERDEHACKER• Better blending within a hackBetter blending within a hack• Better cube blending between two kiln cars. Blending is now broken down toBetter cube blending between two kiln cars. Blending is now broken down to include brick from different hacks and separate courses.include brick from different hacks and separate courses.

KILNKILN• Upgrade older kiln to achieve better color consistency on flashed products and Upgrade older kiln to achieve better color consistency on flashed products and

consistency overallconsistency overall• Better color matching from kiln to kilnBetter color matching from kiln to kiln

MANUFACTURINGMANUFACTURING• Pug MillPug Mill – auto-moisture controls to assure size consistency – auto-moisture controls to assure size consistency• Grinding Dept.Grinding Dept. – new equipment for accurate measuring of raw materials and – new equipment for accurate measuring of raw materials and additives will contribute to color uniformity in fired productsadditives will contribute to color uniformity in fired products• Extruders Extruders will be outfitted with automatic hydraulic die changers for quick andwill be outfitted with automatic hydraulic die changers for quick and efficient size switchingefficient size switching

YARDYARD• Rail Siding and loading dock added so that shipping is now done by railroad,Rail Siding and loading dock added so that shipping is now done by railroad, a faster method of transportation, rather than trucka faster method of transportation, rather than truck• Concrete pads for inventory will be installedConcrete pads for inventory will be installed

Page 5: LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Richard Barrett Plant Controller:

Marseilles Marseilles PlantPlant

Improved blending:Transfer grippers add to blend and start cube building process.No more than 5 brick that were together in the hack are together in the cube

Page 6: LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Richard Barrett Plant Controller:

Marseilles PlantMarseilles PlantOverviewOverview

Marseilles Marseilles PlantPlant

Page 7: LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Richard Barrett Plant Controller:

Marseilles Plant is located on a 40-acre site in Marseilles Plant is located on a 40-acre site in Marseilles, IL, about 75 miles southwest Marseilles, IL, about 75 miles southwest Chicago.Chicago.

Marseilles Marseilles PlantPlant

SiteSite

Raw MaterialsRaw Materials

Raw materials are extracted from two locations:Raw materials are extracted from two locations:

• ShaleShale (red brick) – from an 80-acre leased site (red brick) – from an 80-acre leased site about 40 miles from the plant;about 40 miles from the plant;

• FireclayFireclay (buff brick) – from an 80-acre, Glen-Gery owned site (buff brick) – from an 80-acre, Glen-Gery owned site about 20 miles from the plant.about 20 miles from the plant.

Raw material reserves estimated at 30-year minimum for both and shale.Raw material reserves estimated at 30-year minimum for both and shale.

Page 8: LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Richard Barrett Plant Controller:

Marseilles Marseilles PlantPlant

Marseilles Plant makes extruded brick in 100% Marseilles Plant makes extruded brick in 100% shale and clay and clay-shale blends, in both shale and clay and clay-shale blends, in both flashed and clearburn ranges.flashed and clearburn ranges.

Production DetailsProduction Details

Production capacityProduction capacity 120,000 million120,000 million

Kiln capacityKiln capacity 36 cars36 cars

Kiln car capacityKiln car capacity 10,080 modular10,080 modular

Kiln car sizeKiln car size 14 ft long x 21 ft. wide14 ft long x 21 ft. wide

Push rate* (varies by size)Push rate* (varies by size)

10 – 11 econos, utilities10 – 11 econos, utilities14 – 15 king, queen, 70 series (engineer)14 – 15 king, queen, 70 series (engineer)18 modular18 modular

* The push rate is the amount of time it takes to * The push rate is the amount of time it takes to move a kiln car one length. An 18-car push rate move a kiln car one length. An 18-car push rate means that a car is removed every 18 min.means that a car is removed every 18 min.

Page 9: LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Richard Barrett Plant Controller:

Marseilles Marseilles PlantPlant

SizesSizes

Size:Size: Width x height x lengthWidth x height x length

ModularModular 3-5/8 x 2-1/4 x 7-5/8 3-5/8 x 2-1/4 x 7-5/8EconoEcono 3-5/8 x 3-5/8 x 7-5/8 3-5/8 x 3-5/8 x 7-5/8UtilityUtility 3-5/8 x 3-5/8 x 11-5/8 3-5/8 x 3-5/8 x 11-5/8 EngineerEngineer 3-5/8 x 2-3/4 x 7-5/8 3-5/8 x 2-3/4 x 7-5/8(Engineer also called “70 Series”)(Engineer also called “70 Series”)

QueenQueen 3 x 2-3/4 x 7-5/8 3 x 2-3/4 x 7-5/8King*King* 3 x 2-3/4 x 9-5/8 3 x 2-3/4 x 9-5/8

* Marseilles king size is different from * Marseilles king size is different from traditional king size of 3-5/8 x 2-3/4 x 9-5/8traditional king size of 3-5/8 x 2-3/4 x 9-5/8

Marseilles recently made a “premier” size -- measuring Marseilles recently made a “premier” size -- measuring 3-1/2” w x 3” h x 9-3/4” l – for a large order in Canada. 3-1/2” w x 3” h x 9-3/4” l – for a large order in Canada. Defined as a cross between king and utility, premier is Defined as a cross between king and utility, premier is a common size in Canada.a common size in Canada.

Page 10: LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Richard Barrett Plant Controller:

Marseilles Marseilles PlantPlant

Product LineProduct Line

Marseilles products are divided into two collections:Marseilles products are divided into two collections:

Chicago Collection

Commercial market Commercial market

13 products13 products on Price List on Price List

Marseilles Collection

Residential market Residential market

26 products26 products on Price List on Price List

Page 11: LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Richard Barrett Plant Controller:

Marseilles Marseilles PlantPlant

Product LineProduct Line

Marseilles CollectionTop selling residential products

St. ThomasSt. Thomas London MistLondon Mist Morning DoveMorning Dove Silver AspenSilver Aspen Cashmere*Cashmere* Irish CrèmeIrish Crème HeathermistHeathermist Colonial RoseColonial Rose

* Introduced in 2002, Cashmere is the #5 top seller of all * Introduced in 2002, Cashmere is the #5 top seller of all Marseilles products. Cashmere was developed to Marseilles products. Cashmere was developed to compete with General Shale’s popular “Cortez” product.compete with General Shale’s popular “Cortez” product.

CashmereCashmere

MerlotMerlot

Chicago CollectionTop selling commercial products

Red VelourRed Velour Colonial SandColonial Sand Sahara VelourSahara Velour Red VelourRed Velour

Page 12: LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Richard Barrett Plant Controller:

Marseilles Marseilles PlantPlant

Product LineProduct Line

Chillicothe ProductsThese products from the former Chillicothe Plant are now being

made at Marseilles:

Glacier BayGlacier Bay CedarcreekCedarcreek #888 Laredo#888 Laredo RosebudRosebud RoseboroRoseboro #924 Laramie#924 Laramie Polar BayPolar Bay

Also, Marseilles’ Cabernet is a look-alike replacement for Chillicothe’s Monterey

Chillicothe’s “Sunberry” and “#930 Tucson” are now in testing phase for production.

Page 13: LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Richard Barrett Plant Controller:

Marseilles Marseilles PlantPlant

TexturesTextures

The plant predominantly makes “Smooth” and “Velour” The plant predominantly makes “Smooth” and “Velour” textures:textures:

• SMOOTHSMOOTH is technically a “die skin” texture. The clay, which is technically a “die skin” texture. The clay, which is made from a finer grind, passes smoothly through the is made from a finer grind, passes smoothly through the extruder – no wires are used.extruder – no wires are used.

• VELOURVELOUR texture is achieved by blade cutting a smooth texture is achieved by blade cutting a smooth column of clay after extrusion. Coarser raw materials result column of clay after extrusion. Coarser raw materials result in a rougher texture.in a rougher texture.

Note: Marseilles products look like they are wire cut, but this in Note: Marseilles products look like they are wire cut, but this in an incorrect description. The are “blade cut.”an incorrect description. The are “blade cut.”

Velour texture

Smooth texture

““Worm” (also called Worm” (also called “Indented”) is a “Indented”) is a

texture treatment texture treatment used on some used on some

residential products.residential products. (See (See CashmereCashmere and and

MerlotMerlot samples.) samples.)

Page 14: LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Richard Barrett Plant Controller:

Marseilles 2003 Market OverviewMarseilles 2003 Market Overview

1.1. IllinoisIllinois 17,077,00017,077,000 49.0%49.0%

2.2. IndianaIndiana 4,221,0004,221,000 12.1%12.1%

3.3. OntarioOntario 3,937,0003,937,000 11.3%11.3%

4.4. MichiganMichigan 2,660,0002,660,000 7.6%7.6%

5.5. WisconsinWisconsin 1,264,0001,264,000 3.6%3.6%

Primary markets / brick shipments Primary markets / brick shipments (Jan - Jun)(Jan - Jun)

Total Total ShipmentsShipments = 34,841,000 = 34,841,000

Marseilles Marseilles PlantPlant

Total Total Residential shipments Residential shipments = = 23,171,00023,171,000

Total Total Commercial shipmentsCommercial shipments = = 11,507,00011,507,000

Chicago alone represents 14,428,000 BE’s (or 85%) of this figure.Chicago alone represents 14,428,000 BE’s (or 85%) of this figure.

Page 15: LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Richard Barrett Plant Controller:

Marseilles 2003 Customer OverviewMarseilles 2003 Customer Overview

1.1. Prairie Brick Co. Prairie Brick Co. IllinoisIllinois 10,187,11410,187,114

2.2. Brampton Brick Ltd.Brampton Brick Ltd. OntarioOntario 3,852,2883,852,288

3.3. Chicago Block & BrickChicago Block & Brick IllinoisIllinois 1,013,7931,013,793

4.4. Northern IL Brick & SupplyNorthern IL Brick & Supply IllinoisIllinois 869,819869,819

5.5. Edgewood Building SupplyEdgewood Building Supply IndianaIndiana 927,465927,465

Top customers / brick shipments Top customers / brick shipments (BE’s)(BE’s)

Marseilles Marseilles PlantPlant

Page 16: LOCATION: 1401 Broadway Street Marseilles, La Salle County, Illinois Plant Manager: Bailey Wilson Asst Plant Manager: Richard Barrett Plant Controller:

Marseilles 2003 Customer OverviewMarseilles 2003 Customer Overview

1.1. One-family housesOne-family houses 7,912,0007,912,0002.2. Two-family housesTwo-family houses 590,000590,0003.3. ApartmentsApartments 858,000858,0004.4. Hotels/motels/dormsHotels/motels/dorms 48,00048,0005.5. CommercialCommercial 3,635,0003,635,0006.6. Manufacturing bldgsManufacturing bldgs 4,0004,0007.7. Education/ScienceEducation/Science 1,821,0001,821,0008.8. Hospital/HealthHospital/Health 271,000271,0009.9. PublicPublic 441,000441,00010.10. ReligiousReligious 336,000336,00011.11. Dealer stockDealer stock 18,350,00018,350,000

Use in Construction / Brick Shipments Use in Construction / Brick Shipments (Jan - Jun)(Jan - Jun)

Marseilles Marseilles PlantPlant