Business Models

Liquid Asphalt Limited Partnerships

Your company would like to build a Liquid Asphalt Terminal, but you don’t quite have the volume alone to make the investment pay off. Here’s an idea…team up with some fellow producers in your area through a Limited Partnership. Asphalt Unlimited acts as the Managing General Partner and manages the terminal, buys the asphalt, and provides fixed forward pricing. This is a simple and elegant solution to amass enough volume to justify a terminal.

Cost Capping

Producers are facing tremendous pricing pressure in the asphalt business. Inflationary pressures are exploding. Do you know you can cap your future asphalt costs? When you get a successful fixed-price bid, you have essentially sold an asphalt future to your customer. You sold a contract to provide asphalt in the future at a fixed price, regardless of the market price at that time. Wouldn’t be nice if you had a way to assure that the price you will pay at the time you need it, will not be above your bid price? AU can show you how to manage this risk.

Equity Participation

Asphalt Unlimited can help provide financing to terminal projects in many different ways, but one of these ways is that we actually partner with you by taking a small equity position in the terminal business. Lenders are going to want to see someone involved in the business who can assure supply, knows how to forward price, and maximize profitability.