Headwaters is a leading manufacturer of light building products for the residential construction, residential remodeling, commercial and institutional construction industries. The Company's portfolio of light building products includes: Architectural stone, resin-based exterior siding accessories (such as specialty siding and shutters), roofing, trim board, decking, railing, concrete block and brick, and various other light building products. The Company has more than 3,000 U.S. wholesale distributors and generates incremental sales through big box stores. Headwaters also markets certain products through its direct sales force. The broad distribution system and extraordinary brand loyalty has enabled Headwaters to capture the number one market position in all of its key niche product categories.
Headwaters is the largest manager and marketer of coal combustion products in the heavy construction materials industry. The primary focus of its materials segment is to recycle high quality fly ash into a replacement for portland cement. Fly ash is used in virtually every concrete application, making it one of the most widely-used construction materials in the United States.
Headwaters’ focus on transforming underutilized resources into valuable products has helped us capitalize on the increasing demand for building materials that contribute to sustainability. Headwaters’ fly ash business is a perfect example of sustainability. Fly ash is a by-product of burning coal at electric generating power plants and is generally disposed of if not recycled. Headwaters markets fly ash as a cement substitute that enhances the quality of concrete structures, reduces the need for virgin raw materials, reduces CO2 emissions and energy consumption. Because the use of fly ash produces a stronger, more durable concrete, the majority of this product is used in building infrastructure projects such as: roads, bridges, and highways. It is one of America’s greatest recycling success stories.
Headwaters also operates an Energy Technology segment that deploys breakthrough technologies that improve natural resource utilization. Headwaters' HCAT® technology is a proprietary, patented catalyst that improves residue hydrocracking, creating a higher conversion to a lighter distillate such as diesel and gasoline.
Headwaters’ Light Building Products and Heavy Construction Materials businesses have the number one market position in all key market niches in which they compete. The Company operates leading businesses in siding accessories, manufactured architectural stone and concrete blocks. Its manufactured stone and building accessories products have a national presence in commercial, residential and remodeling markets. In Texas, Headwaters is also the leading supplier of concrete and specialty block. Through its Heavy Construction Materials segment, Headwaters is the largest manager and marketer of fly ash in the United States.
Headwaters operates in three reporting segments: Headwaters Light Building Products, Headwaters Heavy Construction Materials, and Headwaters Energy Technologies.
HEADWATERS LIGHT BUILDING PRODUCTS
DEFENSIBLE POSITIONS IN ATTRACTIVE MARKETS
- Accessories and professional tools for exterior residential home improvements and construction
- Low cost competitive manufacturing advantages
- Diversified customer base
- Major supplier to Lowe’s and Home Depot
- Headwaters’ siding accessories business dominates this niche market with roughly 75% market share
- Manufactures one of the most authentic architectural stone products in the world
- Multiple national brands
- National manufacturing platform
- Headwaters’ manufactured stone products control roughly 30% of this niche market
TEXAS CONCRETE BLOCK MARKET
- Variety of concrete based masonry unit products
- Regional branding
- Regional distribution
- Headwaters’ Texas block business dominates the market with a 65% market share
HEADWATERS HEAVY CONSTRUCTION MATERIALS
CONVERTING FLY ASH INTO A VALUABLE PRODUCT
WHY FLY ASH?
- It can be used as a partial replacement for portland cement
- Generally less expensive than portland cement when making concrete
- Displaces portland cement production which emits approximately one ton of CO2 for every ton of cement produced
- Produces a more durable concrete with greater long-term strength
- Positive environmental impact by reducing landfill utilization
HEADWATERS HEAVY CONSTRUCTION MATERIALS
CONTROLS ALMOST HALF OF ALL FLY ASH SOLD IN THE U.S. TODAY
- Competitive Advantages Include:
- Exclusive long-term contracts with over 100 electric generating power plants across the country
- Complete utility service capabilities
- Nationwide infrastructure: 29 terminals, 100 plant site supply facilities, approximately 100 trucks and 900 railcars
HEADWATERS ENERGY TECHNOLOGIES
IMPROVING NATURAL RESOURCE UTILIZATION
- HCAT® heavy oil upgrading technology processes heavy oil into lighter distillates such as diesel fuel