History

50 Plus Years of Innovation

Texas Industries, Inc., from its beginning on September 1, 1951, has remained unwavering in its commitment to quality, uncompromising in its attention to detail and focused on being at the forefront of technology. Its cornerstones -- foresight, innovation, technology, commitment and pride in its products, people and communities – are values and qualities that gained TXI a position of leadership early in its history.

Ralph B. Rogers, founder of TXI, began operations with a lightweight aggregate plant in Eastland, Texas. By the end of its first fiscal year, the Company had added fifteen more production plants and, within another year, operated 28 facilities in Texas, Louisiana, Oklahoma and Arkansas. In 1953, TXI expanded its operations and market by acquiring Fort Worth Sand & Gravel Company. Throughout its first decade in business, the Company continued to increase production capacity by rebuilding existing plants and acquiring facilities as far away as Minnesota, Iowa and Missouri.

Taking a bold step to secure its future, in August 1959 TXI announced plans to build its first cement plant in Midlothian, Texas. The Midlothian plant would be the most modern in the nation.

In the 50s, Rogers set TXI on a course of vertical integration. By June 1960 with the start-up of the cement plant, this goal had been achieved. TXI-owned companies were involved in every step of the concrete making process – from mining of the raw materials to finished products. Modernization of existing facilities, effective management techniques and development of new products brought about reduced costs, and Rogers’ vision of becoming a low-cost producer of high-quality products had been fulfilled.

In 1962, TXI formed a real estate division with the purchase of Brookhollow Industrial Park and Empire Central Office Community in Dallas, Texas. Brookhollow Corporation was formally established in 1964 to manage TXI’s growing real estate interests and opportunities.

The 60s was an era of continued expansion for the Company. Rogers believed that demand for TXI’s products would continue to grow due to the accelerating population growth in the TXI marketplace and development of more uses for the product manufactured by the Company. Acquisitions in 1964 of plants in Detroit, Houston and Memphis firmly sealed the Company’s position as an industry leader. In 1967, with the addition of a 3rd kiln at the Midlothian plant, TXI became the largest cement producer in Texas, enabling the Company to help meet the demand for cement and ready-mix concrete during the construction of Dallas/Fort Worth International Airport. Expansion through acquisition continued with the purchase of Athens Brick Company and a major limestone deposit in Southern California.

In 1970, Ralph B. Rogers stepped down as President of TXI but continued as its Chairman until he announced his retirement on October 21, 1997. In November, 1997 Rogers passed away. He will always be remembered as a businessman, a civic leader, a coalition builder and a philanthropist.

Robert D. Rogers was named President/CEO of TXI in 1970. He brought to the position a commitment to quality coupled with attention to detail. In the 34 years that Rogers served as President, TXI continued to grow through expansion and diversification.

Despite tight markets during the 70s, TXI remained focused on the future. In 1972, a 4th kiln was added at the Midlothian cement plant, giving TXI increased production capacity as well as the ability to produce regular and specialty cement, and in 1978, construction of TXI’s Hunter Cement Plant near New Braunfels, Texas began.

By 1970 TXI had made the decision to expand it horizons in the construction materials industry. The Company, in joint partnership with Canada’s Co-Steel International Ltd, formed Chaparral Steel and began construction on a steel mini-mill in Midlothian, Texas. TXI went into its second twenty-five years with Chaparral Steel’s new mill in full production. By 1978, Chaparral was producing at twice the capacity of any other U.S. mini-mill. Not only was it one of the most efficient steel mills in the world but its technological advances allowed Chaparral to produce higher-quality forging steel.

The highest and most volatile interest rates in our nation’s history were seen in 1980. Cement consumption dropped by 11%, but TXI kept its focus on the future. Expansion of the Chaparral Steel facility began as Chaparral developed foreign markets and became an international supplier of steel products. In 1985, TXI purchased Co-Steel’s share in Chaparral, and in 1988 the steel company was taken public and traded on the NYSE with TXI as the principal shareholder.

Ever keeping an eye on growth opportunities, TXI announced plans in April 1997 to build a state-of-the-art steel mill in the eastern United States, selecting a site near Petersburg, Virginia. Plans also were underway to purchase Riverside Cement Company in California.

TXI takes pride in being an environmental leader. The health, safety and well being of its employees and the communities in which they operate are of primary importance to the Company. In 1960 electrostatic precipitators were installed at its Midlothian plant to control particulate emissions. By 1972 TXI was spending up to 30% of its capital expenditure budget on pollution control. The use of recycled fuel was implemented in the 1980’s, and by 1991 Chapparal Steel was the largest single steel recycling facility in the United States.

TXI continues to look for new ways to protect the environment through use of waste by-products in the manufacturing process. In 1998 the Company developed and patented CemStar, a process which uses a waste by-product from its steel operations (slag) as a raw material for making cement. The result was by-product synergy: reduced use of natural resources, increased production, a significant reduction in energy use and emissions, and increased profits.

In August, 1999, TXI was one of 10 recipients receiving international recognition by the Environmental Protection Agency for exemplary efforts and achievements in protecting the global climate. The EPA presented TXI with its 1999 Climate Protection Award. Later that year TXI was also chosen by the EPA to receive a Climate Wise Special Recognition Award for its technical innovations to improve energy efficiency and reduce pollution in the cement manufacturing process.

TXI has entered the 21st Century still focused on the future. A new kiln at its Midlothian Cement Plant will make the facility the largest and most technologically advanced in the U.S. With this addition, the plant will produce 2.3 times more product with less total emissions.

Always looking for opportunities to facilitate its strategic objectives, TXI announced on December 15, 2004, the decision to spin-off the steel division into a wholly-owned steel company giving both businesses leading positions in their respective markets. Chaparral Steel is the second largest supplier of structural steel in North America with operations in Texas and Virginia.

Today, TXI is proud to be the largest producer of cement in Texas, a major producer in California and a leading North American recycling company. It also has strong, competitive positions in aggregate and concrete operations in both states.

Throughout its history, the Company has chosen to lead rather than follow and recognizes that its chronicle was written by its employees – people whose ideas and ingenuity have enabled the Company to serve its customers and its communities!

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