Displaying items by tag: UK
UK: Aggregate Industries has appointed Dragan Maksimovic as its chief executive officer (CEO). He succeeds Guy Edwards, who is leaving the company.
Maksimovic joins the subsidiary of LafargeHolcim from Sika, where he worked most recently as Country CEO in the UK. He holds an MBA from the University of Sheffield and a Bachelor of Science in Civil Engineering. He has also completed an International Leadership Program at IMD in Switzerland.
UK: Hanson, part of Germany-based HeidelbergCement, has reduced its bagged cement allocations to customers. The Construction Index has reported that the decision is due to a national shortage of cement in the UK. The building materials producer introduced a packed cement allocation in May 2021. It calculated these by the proportion of orders that it believed could fulfil. Packed products director Andrew Simpson said, “Regrettably, we have been unable to maintain those levels.” He added that the company had had to perform unforeseen work on its cement operations following its 2021 shutdown.
Supply issues for packaging materials have also been reported. Bag suppliers informed Hanson to expect longer-term packaging shortages due to global demand for polymer and kraft paper, according to Simpson. He added that low pallet availability was also a concern.
The UK construction market is in a funny situation right now. As the economy has started to grow in 2021, shortages of building materials have been reported following the relaxation of coronavirus-related restrictions. In April 2021, for example, the Construction Leadership Council (CLC) added cement, aggregates and certain plastics to its existing lists of products in short supply. These commodities joined a slew of other materials, including timber, steel, roof tiles, bricks and imported products such as screws, fixings, plumbing items, sanitaryware, shower enclosures, electrical products and appliances. The CLC advised all users to, “plan for increased demand and longer delays, keep open lines of communication with their suppliers and order early for future projects.”
Skip forward a month to May 2021 and these shortages are on more people’s minds with the announcement by the Office for National Statistics that UK monthly construction output grew by 5.8% month-on-month to around Euro16.5bn in March 2021 due to both new work and to repair and maintenance projects. Quarter-on-quarter output also rose by 2.6%, adding to the impression of a building sector emerging from the fog of lockdown. In the face of this good news Nigel Jackson, the chief executive of the UK mineral Products Association (MPA), was asked about reported shortages of cement. He told local press this week that “it would not be surprising if there were short-term issues of supply as the economy gathers momentum.” He added that the biggest issues had been observed in levels of bagged cement typically used in domestic projects.
The MPA followed this up with the results of a survey of building materials manufacturers that reported a slow but steady start to 2021 with mounting construction demand month-on-month. Sales volumes of aggregates and concrete were both up quarter-on-quarter but volumes of asphalt and mortar fell. Unfortunately that survey didn’t cover cement volumes but it did have more to say about concrete. In its view ready-mixed concrete sales had been subdued since 2017 due to the UK’s departure from the European Union (Brexit) and a general slowdown in residential building. The market recovery seen so far in 2021 was likely to be merely a return to growth from a subdued level of activity that pre-dates Covid-19.
At the time of writing the UK government faces a decision about whether to continue opening up the economy or exercise caution in the face of the as-yet unknown consequences of the Indian variant of coronavirus. This may delay talk of building materials shortages but it can’t avoid it forever. In the UK, cement shortages appear to be due to the self-build segment and will hopefully soon be resolved.
A shortage of cement in the UK may not mean much to people outside the country, with the exception of exporters. Yet the wider picture here is that the coronavirus pandemic has affected the production of building materials, changed end-user behaviour and distorted markets around the world. Other examples include the row over the price of cement in Nigeria, the boom in cement sales in Brazil in the second half of 2020 or reported shortages in Jamaica this week. A significant number of people, when forced to spend more time at home, appeared to save money and then decided to either move to a different house or make their current one better. Yet at the same time differing government restrictions and market fluctuations have seen building material output levels vary widely. Other reasons are at play both local and international. Brexit in the UK is one example of the former, as importers and exporters have been forced to grapple with new rules and costs. The temporary blockage of the Suez Canal in March 2021 is one example of the latter. No wonder supply chains are struggling. That last point goes wider than building materials though, for example, as anyone trying to buy semiconductors has discovered. One fear behind all of this though is whether these are temporary shortages or whether inflation is on the way for the global economy generally. In this is the case, then it signals the end of the low consumer inflation rate era since the financial crash in 2008 and may herald changes in behaviour from both producers and consumers.
UK: The Mineral Products Association (MPA) has described first-quarter building materials demand as ‘resilient’ in 2021 despite renewed coronavirus lockdown restrictions, on-going supply chain disruptions and wet winter weather. Following a recent survey the association says that continued housing activity – with increased home improvements – and an acceleration in infrastructure work, driven by a new roads programme and the start of the HS2 high-speed railway, drove minor growth during the quarter. Ready-mix concrete demand rose by 2% year-on-year, while mortar demand fell by 7% during the period. The MPA said that both products are mostly used in the early stages of construction, thus serving as a barometer for construction activity ahead in the short term.
The MPA reports that since September 2020, construction growth has remained close to zero, whilst new contract awards have been ’weak’ since May 2020. The downward trend of housing-led mortar demand in the first quarter of 2021 continues a pre-pandemic decline since mid-2018. Thus, housing activity growth is considered unlikely to continue beyond the completion of existing projects ahead of the end of a land tax holiday and a deadline in a first time buyers loan scheme. The MPA described the slow growth of ready-mixed concrete demand as ‘concerning.’ Low housing activity and few new commercial projects compounded the difficult recovery: non-infrastructure projects normally generate 60% of demand. Ready-mix concrete producers rely on London and the South East region for over 30% of sales. First-quarter volumes were 9% below the previous five-year average, despite three consecutive quarters of growth since the first coronavirus lockdown in the first half of 2020.
Director of Economics Affairs Aurelie Delannoy said, “Mineral products manufacturers are busy supplying post- lockdown pent-up demand, particularly for domestic activity such as landscaping, repair and maintenance and home improvements, as well as infrastructure projects.” She added “The outlook for this year and next is also positive, but the stakes are high. Any optimism assumes activity is not disrupted by renewed outbreaks of Covid-19 and, most importantly, relies on the government delivering on its planned infrastructure commitments. MPA members tell us they are yet to see a more clear-cut pick-up in new house building, whilst any recovery in commercial development is expected to remain muted given the current reticence for major new investments.”
UK faces short-term cement shortage
14 May 2021UK: The Mineral Products Association (MPA) has warned of the likelihood of a short-term shortage of cement. It identified the cause of a probable shortage as the rise in construction leading to record cement demand. Bagged cement, of which the industry delivers 12.0Mt/yr, is most at risk of running out. The Daily Telegraph newspaper has reported that domestic projects are rising most sharply due to the deployment of the Euro232bn of costs saved during coronavirus lockdowns, and the recommencement of suspended projects from the same periods.
MPA chief executive officer Nigel Jackson said “We appear to be coming out of this period of Covid-19 lockdowns; the roadmap is on course; people's confidence and optimism is growing. A lot of people have been confined to their homes and taken the decision to invest in improving because they're not moving.”
UK: Tarmac has renewed its partnership with the Peak District National Park until 2026. Under the partnership, the company organises volunteering and funds an engagement conservation job role at the national park in Derbyshire. Since 2016, volunteers from Tarmac’s Tunstead quarry have built dry stone walls, restored a footbridge and helped to manage ancient hay meadows. In several areas of the park, volunteers have also replaced benches.
Tunstead quarry stone and powders director Pete Butterworth said that he was ‘delighted’ about the renewal. He added, “By sponsoring the engagement role, we also enable many people to get involved in practical projects which make a significant contribution to the maintenance and improvement of this beautiful area.”
Taiheiyo Cement to start CO2 capture project at Kumagaya plant using Carbon Clean technology
21 April 2021Japan: Taiheiyo Cement plans to start a CO2 capture demonstration project at its Kumagaya plant in Kumagaya City, Saitama. It will use technology for CO2 chemical absorption supplied by UK-based Carbon Clean, which has been awarded by Japan-based Marubeni Protechs in Japan. The project will have a capacity of 10t/day and demonstration tests will begin in September 2021. Taiheiyo Cement says that it believes that CO2 recovery technology from cement kiln flue gas will require compact equipment that could be installed in cement plants and that suitable amine solvents for cement kiln flue gas are essential conditions. Its ultimate goal is to establish a technology that can be used to help it reach carbon neutrality by 2050.
The cement producer has been developing this technology as a sole grant recipient of the ‘Development of Carbon Circulation Technology for the Cement Industry,’ a project funded by the New Energy and Industrial Technology Development Organization (NEDO) which was awarded in June 2020. It also launched its internal Carbon Neutral Technology Development Project Team in April 2020, which has led on the project.
Marubeni Protechs, a wholly owned subsidiary of Marubeni Corporation, which invested in Carbon Clean, have been involved in a variety of domestic and international projects involving equipment supply and construction. The project at the Kumagaya plant is expected to be the first CO2 capture plant that Marubeni Protechs and Carbon Clean have introduced in Japan. Marubeni Protechs and Carbon Clean intend to jointly introduce CO2 capture plants in the future.
GCCA expands Innovandi innovation programme
21 April 2021UK: The Global Cement and Concrete Association (GCCA) has expanded its Innovandi innovation programme with the addition of a new Open Challenge innovation accelerator programme. The Open Challenge programme will bring together start-ups and leading cement and concrete producers to innovate for CO2 emissions reduction in the cement industry. Its aim is carbon neutral concrete production by 2050.
GCCA chief executive officer Dinah McLeod said “The GCCA is delighted to be expanding Innovandi to encompass both the Research Network and the upcoming Open Challenge. By connecting innovative start-ups with cement and concrete producers we can help accelerate the development of solutions that address the emissions reduction challenges our industry faces.”
UK construction sector increases research and development spending by 8% year-on-year to Euro432m in 2020
01 April 2021UK: Business consultant Catax has reported an 8% year-on-year rise in the UK construction sector’s research and development spending in 2020 to Euro432m from Euro401m in 2019. Total UK spending in the area across all sectors grew by 5% year-on-year to Euro45.1m. Gross domestic product fell by 9%.
Chief executive officer Mark Tighe said, “The pandemic stopped businesses in their tracks but those reliant on innovation clearly didn’t take their foot off the gas.” He added, “The construction sector shut completely in the first lockdown but, even so, the industry still grew its research and development spending on an annual basis last year. This will put the sector on a strong footing as we recover from the impact of the pandemic.”
UK: Tarmac, part of Ireland-based CRH, has relocated reptiles to purpose-built bespoke habitats at its Bellhouse, Essex, quarry. The reptiles lived in an area of planned quarry expansion. Work began in 2016 on the new habitat for grass snakes, common lizards and slow worms, consisting of acid grassland, tussocks and ponds. The company plans to expand the reserve under its site restoration process. It says that this will enable reptile populations to grow.
Restoration manager Enrique Moran Montero said, “The restoration phase of a quarry provides so many opportunities to promote local fauna and flora, and we pride ourselves in making the most of this land. From nature reserves to parks and wildlife learning zones for schools to use, we always strive to provide benefits for local wildlife as well as the communities we work in.”