University study - cement plant would have positive impact

Editor's Note: At the request of Holnam Inc., the Center for Economic and Business Research at the Donald L. Harrison School of Business at Southeast Missouri State University evaluated the economic impact of the proposed Lee Island cement plant in Ste. Genevieve County.

Holnam provided information that researchers evaluated by using economic models to determine the economic benefits of the plant on Ste. Genevieve and Jefferson counties and the state of Missouri. University researchers were compensated for the time they spent on this project.

For more information about this study contact Dr. Bruce Domazlicky, director, Center for Economic and Business Research, at 573/651-2013.

STE. GENEVIEVE -- An independent, third-party review of Holnam Inc.'s proposed Lee Island project confirms that a new cement plant in Ste. Genevieve County will lead to several hundred jobs and contribute tens of millions of dollars to the Missouri economy.

"We were very pleased to see that the researchers' findings support what Holnam has been saying all along. This project will be a shot in the arm for Southern Missouri," said Barry Lower, Holnam's project manager for the proposed Lee Island facility.

"Holnam is committed to this proposed plant, bringing new jobs and economic growth to the community and the state."

Based on information provided by Holnam, the Center for Economic and Business Research found that the plant, with its creation of 200 long-term jobs and an annual payroll of approximately $10 million, will " ... have an enormous impact on the state of Missouri."

Specifically, the report indicates that the construction phase of the project will create 431 jobs at the construction site, while indirectly creating work for another 281 people residing in Ste. Genevieve or Jefferson counties.

Holnam projects that total construction employment will peak at approximately 1,000 workers.

The study also noted a projected overall increase in annual personal income in the two-county region by $24 million, and in the state of Missouri by more than $31 million. The researcher predicted that the plant also would play a role in creating $1.3 million a year in sales and income tax revenues for the state.

In addition to those economic benefits, Holnam's Lee Island project will lead to a much-needed boost to local schools, including payments totaling more than $35 million over 20 years to the Ste. Genevieve County R-II School District.

"Holnam's plans will contribute to a very bright future for Ste. Genevieve County," said Marv Harman, economic development director, Ste. Genevieve County.

"This area is home to an abundance of necessary raw materials, a transportation system enhanced by the Mississippi River, and a work force that is second to none. We look forward to helping Holnam get this plant built and operating as soon as possible.

" The permanent jobs represented by this plant are very important to our county."

After a lengthy review of potential sites, in 1999 Holnam selected the Lee Island location in Ste. Genevieve County based upon a number of factors, including access to high-quality limestone, a key ingredient in the cement-making process that also helps to reduce emissions

Another factor is the Mississippi River, which allows for transport of material by barge -- among the most environmentally efficient means.

Holnam's studies found that the Lee Island site is the best and most environmentally sound location for this facility in Missouri.

The Lee Island property totals 3,800 acres along the Mississippi River, north of Ste. Genevieve. When completed, the project will include a buffer zone of approximately 2,100 acres surrounding a quarry that will never exceed 200 acres at any one time.

Throughout the life of the quarry, Holnam said it will restore land that has been impacted to its previous condition.

Facts at a glance

In a recently released study, the Center for Economic and Business Research at the Donald L. Harrison School of Business at Southeast Missouri State University determined that the proposed Lee Island cement plant in Ste. Genevieve County, with its 200 long-term jobs and an annual payroll of $10 million, will:

-- increase employment in the state by 536 new jobs as a result of additional spending created by the plant and by employees of the plant;

-- increase annual personal income in the two-county region by $24 million and in the state of Missouri by more than $31 million;

-- mean an additional $1.3 million in annual sales and income tax revenue for the state of Missouri; and

-- in addition to the 431 jobs at the construction site, the project will indirectly create work for another 281 people residing in Ste. Genevieve or Jefferson counties. Holnam projects that total construction employment will peak at approximately 1,000 workers.

In addition to the study's findings, Holnam's Ste. Genevieve County plant will result in payments to the Ste. Genevieve County R-II School District totaling more than $35 million over 20 years and payments to Ste. Genevieve County of more than $12 million over 20 years.