User:BrianHRutledge/sandbox

Martin Marietta Magnesia Specialties LLC

Martin Marietta Magnesia Specialties LLC is a magnesia-based chemicals company headquartered in Baltimore, MD and is a wholly-owned subsidiary of Martin Marietta, a leading aggregates and building materials business headquartered in Raleigh, NC USA. The information here is adapted from the "Martin Marietta 2018 Annual Meeting of Shareholders Proxy Statement" of record May 17,2018.

The Magnesia Specialties business represents an individual operating and reportable segment. Of the Magnesia Specialties segment, production facilities are located in Manistee, Michigan and Woodville, Ohio. The Magnesia Specialties business produces magnesia-based chemicals products which are used in industrial, agricultural and environmental applications. It also produces dolomitic lime sold primarily to customers in the steel and mining industries. Magnesia Specialties' products are shipped to customers worldwide.

Magnesia products include: magnesium hydroxide slurry, magnesium hydroxide powder, light burned magnesium oxide, hard burned magnesium oxide, dead burned magnesium oxide, specialty magnesium oxide, and dolomitic lime. Please refer to the Martin Marietta Magnesia Specialties website for additional information including: product, application and market descriptions; product data sheets; regional sales and customer service contacts; a description of our process with plant tour video; a caustic soda replacement Truth-in-Costing tool; safety data sheets; safety and regulatory comparison of slurry magnesium hydroxide with caustic soda, current ISO certificate; current REACH certification, and more. www.magnesiaspecialties.com

Martin Marietta Magnesia Specialties continued to execute its strategic plan while delivering strong performance in 2017 as compared to 2016. Magnesia Specialties' total revenues of $270.0 million and earnings from operations of $79.4 million. For comparison, Martin Marietta total revenues of $4.0 billion and earnings from operations of $700.4 million.

Of 2017 total Magnesia Specialties revenues, 71% were attributable to chemicals products, 28% attributable to lime, and 1% was attributable to stone. In 2017, 82% of the lime product was sold to third-party customers, while the remaining 18% was used internally as a raw material for the business' manufacturing of chemicals products. The dolomitic lime business runs most profitably at 70% or greater steel capacity utilization, domestic capacity utilization averaged 74% in 2017. The chemicals products business focuses on higher-margin specialty chemicals that can be produced at volumes that support efficient operation. 2017 total revenues were 37% from the Steel Industry, and 63% from other industries. Total revenues of the Magnesia Specialties business in 2017 were predominately from North America, but a small amount was derived from overseas. No single foreign country accounted for 10% or more of the total revenues for the Company. A significant portion of the Magnesia Specialties business' costs related to the production of dolomitic lime and magnesia chemicals products is of a fixed or semi-fixed nature. The production process requires the use of natural gas, coal, and petroleum coke. Therefore fluctuations in their pricing directly affects operating results. Given high fixed costs, low capacity utilization can negatively affect the segment's results of operations. Management expects future organic growth to result from increased pricing, rationalization of the current portfolio and/or further cost reductions. The Magnesia Specialties business is highly dependent on rail transportation, particularly for movement of dolomitic lime from Woodville to Manistee and direct customer shipments of dolomitic lime and magnesia chemicals from both Woodville and Manistee. 100% of its hourly employees are represented by labor unions.