TXI is a leading supplier of cement, aggregate and consumer product building materials. All types of construction - residential, commercial and public works - use these materials.
Our primary markets are Texas and California, the nation's most populous states and the two largest cement markets in the U.S. Texas and California also lead the nation in receiving the largest shares of federal highway construction funding. We believe population growth trends in both states will generate increasing construction activity in these markets in the years to come.
Our strategy focuses on achieving leading positions in these growth markets while maintaining a low-cost profile. TXI is the largest, low-cost producer of cement in Texas. When the economy recovers, TXI will enhance its market position when it completes its expansion project to more than double the existing production capacity at our Central Texas cement plant. With the recently completed expansion and modernization of the California cement plant, TXI is now a low-cost producer in southern California and a much larger producer of cement in the market.
TXI's aggregate, ready-mix and packaged concrete operations are leading suppliers to markets that are primarily in the Texas region. We are also the largest supplier of expanded shale and clay lightweight aggregate products west of the Mississippi River.
The long-term outlook for construction growth in Texas and California provides us with attractive expansion opportunities. In 1997, our capacity to make cement was 2 million tons per year. Today, we have increased that capacity to 6 million tons annually and are on our way to almost 8 million tons over the next several years.
In the Investor Relations segment, the terms TXI, Company, we, our and us means Texas Industries, Inc. and its subsidiaries, on a consolidated basis, unless the context requires otherwise.