Aggregates

Aggregates are inert granular materials such as sand, gravel, or crushed stone that, along with water and Portland cement, form the necessary ingredients in concrete. Aggregates need to be clean, hard, strong particles free of absorbed chemicals or coatings of fine materials that could cause the deterioration of concrete. Aggregates account for 60% to 75% of the total volume of concrete and are divided into fine and coarse categories. Fine aggregates generally consist of natural sand or crushed stone with most particles passing through a 3/8-inch sieve. Coarse aggregates are any particles greater than 0.19 inch, but generally range between 3/8 and 1.5 inches in diameter. Gravels constitute the majority of coarse aggregate used in concrete with crushed stone making up most of the remainder.

We produce crushed stone aggregates, sand and gravel from seven aggregates facilities located in New Jersey and Texas. We sell these aggregates for use in commercial, industrial and public works projects in the markets they serve, as well as consume them internally in the production of ready-mixed concrete in those markets. We produced approximately 3.5 million tons of aggregates in 2008 from these facilities with Texas producing 48% and New Jersey 52% of that total production. In April 2007, we entered into an agreement to lease our sand pit operations in Michigan to the Edward C. Levy Co. We now receive a royalty based on the volume of product produced and sold from the Michigan quarry during the term of the lease.

At December 31, 2008, our total estimated aggregates reserves (excluding an aggregates property leased to a third party) were 77 million tons.