Continental’s Buchanan Plant Repair Outage
HERNDON, Va.--(BUSINESS WIRE)--Jan 29, 2019--On Thursday, January 24, Continental Building Products’ Buchanan, New York plant experienced a significant equipment malfunction, resulting in an outage at the plant. No injuries occurred from this event, and we thank all of our associates for their efforts in keeping safety a first priority. In working to resolve the outage, our teams have determined that the plant will likely be shut down through the end of February 2019 to complete repairs.
Our Buchanan plant has a capacity of approximately 650 million square feet annually, which is approximately 20% of the Company’s overall capacity. While the Buchanan plant is down, the Company’s plants in Silver Grove, Kentucky and Palatka, Florida will continue to deliver product to our customers. These plants will be able to increase their production to offset a portion of the lost production from the Buchanan plant. However, because of capacity constraints, logistics and product availability, these two plants will not be able to make up all of the lost production at the Buchanan plant. Therefore, for the duration of the shutdown, we expect to limit new orders for shipments normally delivered from our Buchanan plant.
“We apologize to our customers for any disruptions caused by these supply constraints,” said Jay Bachmann, President and Chief Executive Officer. “We will do everything in our power to best serve our customer base. This temporary outage in no way impacts our long-term commitment and ability to serve our customers in the market.”
Continental has standard insurance coverage that is intended to respond to circumstances such as these, including business interruption insurance. Our insurance coverage is designed to cover not only the direct costs of the damaged equipment, but also the lost contribution margin of the sales that otherwise would have been made by the plant.
We look forward to providing an update on this matter as part of our financial results update after the market closes on February 21, 2019.
About Continental Building Products
Continental Building Products is a leading North American manufacturer of gypsum wallboard, joint compound and complementary finishing products. The company is headquartered in Herndon, Virginia with operations serving the residential, commercial and repair and remodel construction markets primarily in the eastern United States and eastern Canada. For additional information, please visit www.continental-bp.com.
This press release contains forward-looking statements. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, and “project” and other similar expressions that predict or indicate future events or trends that are not statements of historical matters. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on historical information available at the time the statements are made and are based on management’s reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company’s control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law. Investors are referred to the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.
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KEYWORD: UNITED STATES NORTH AMERICA VIRGINIA
INDUSTRY KEYWORD: ENERGY COAL HOME GOODS MANUFACTURING PACKAGING OTHER MANUFACTURING NATURAL RESOURCES FOREST PRODUCTS MINING/MINERALS RETAIL CONSTRUCTION & PROPERTY COMMERCIAL BUILDING & REAL ESTATE RESIDENTIAL BUILDING & REAL ESTATE
SOURCE: Continental Building Products
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PUB: 01/29/2019 04:15 PM/DISC: 01/29/2019 04:15 PM