Displaying items by tag: Breedon Group
US: Global Cement understands from material published publicly on Breedon Group’s website that the UK-based company acquired ready-mix concrete, aggregates and building products company BMC Enterprises for US$300m on 6 March 2023. This marks the group’s first entry into the US building materials sector. Breedon Group described the acquisition as a ‘compelling opportunity’ in the ‘fragmented and growing’ market. It described BMC Enterprises as a highly attractive, established business upon which to grow a new group platform in the US, in addition to its existing platforms in the UK and Ireland.
Breedon Group CEO Rob Wood said “The acquisition of BMC represents a compelling opportunity for Breedon to launch our third platform. BMC has an excellent performance track record over a sustained period and is positioned in an attractive market for future growth. As a high-quality aggregates and concrete business that has grown at pace, organically and through acquisitions, with a strong management team and deep local knowledge, BMC’s culture and values are fully aligned with the Breedon business model.” Wood added "The acquisition is expected to be earnings-enhancing for shareholders, while allowing Breedon to maintain a conservative and flexible balance sheet to pay dividends and make further bolt-on acquisitions across each of our platforms as opportunities arise.”
Breedon Group reveals 2023 financial results
07 March 2024UK: Breedon Group recorded a 7% year-on-year increase in revenue of €1.73bn in 2023. Earnings before interest and taxation (EBIT) were €171m, down by 2%.
CEO Rob Wood said “The record results we delivered in 2023 are a real accomplishment and something I am extremely proud of. The challenging trading conditions our team faced required agile and bold responses which they took with discipline and determination.”
Breedon Group’s 10-month 2023 trading update shows sales growth
23 November 2023UK: Breedon Group grew its sales by 8% year-on-year during the first nine months of 2023. Volumes ‘moderated’ over the period, yet ‘robust’ pricing and operational excellence successfully offset the effects of this on group sales. It generated ‘good’ free cash flow and is on track to deliver a further reduction in covenant leverage at the end of 2023, enabling it to continue its investments in growth. In September 2023, Breedon Group entered the FTSE 250 Index of the London Stock Exchange.
Chief executive officer Rob Wood said “Notwithstanding the market backdrop, the Breedon team continues to deliver and we are delighted to report a trading performance ahead of expectations. Against the uncertain political and economic backdrop, our teams have adapted well to deliver a compelling performance.” He continued “But we never settle – we will continue to seek ways to operate as efficiently and sustainably as possible, invest in our people and grow our business so we are positioned to succeed when the construction materials market returns to growth.”
UK: First Graphene and Breedon Group have entered into a development and commercialisation agreement. Together, the companies aim to enhance Breedon Cement’s CEM II Portland limestone cement (PLC) through the use of First Graphene’s graphene enhanced grinding aids and cement admixtures. Breedon will provide increased access to cement production lines in order to optimise the understanding of the processing environment and operating conditions.
Breedon Group’s Hope cement plant in Derbyshire previously conducted a 24-hour graphene-enhanced cement production trial on 28 June 2023.
Breedon Group to enter US building materials business
14 August 2023US: UK-based Breedon Group says that it is seeking a ‘beachhead’ acquisition from which to build its own building materials business in the Eastern US. CEO Rob Wood said that the top 10 US building materials companies control 40% of the market there, compared to 75% of the UK market being controlled by five leading companies. The Times newspaper has reported that Breedon Group is due to join the UK’s FTSE 250 share index in September 2023. The producer noted the slow progress of proposed reforms to UK building standards, which it says would enable it to reduce its non-fuel CO2 emissions by 25%. It also said that the government may fail to co-adopt EU emissions trading scheme (ETS) carbon border adjustment mechanism (CBAM) measures, leaving the UK market more open for third-party exporters of cement and other heavy materials.
Wood said “The North American market has big growth opportunities, backed by the certainty of infrastructure investment.”
Breedon Group’s sales rise in first half of 2023
26 July 2023UK: Breedon Group recorded sales of US$958m during the first half of 2023, up by 11% year-on-year from US$866m during the first half of 2022. The producer’s cement sales rose by 18% in value, despite an 8.3% drop in sales volumes to 1.1Mt from 1.2Mt. Its earnings before interest and taxation (EBIT) fell by 5% to US$80.2m.
It’s been a good week for graphene usage in the cement and concrete industries, with a trial set to take place at Breedon Group’s Hope cement plant and the inclusion of four graphene projects in the Global Cement & Concrete Association’s (GCCA) shortlist for its second second Innovandi Open Challenge.
The trial at the Hope cement plant was scheduled to take place on 28 June 2023, alongside First Graphene, Morgan Sindall Construction and the University of Manchester. The plan was to use 1.2t of First Graphene’s PureGraph product by testing different dispersion methods and dosage rates. The graphene was going to be prepared as a grinding aid and then added to cement grinding mill feed. Dispersion into the cement production line was planned to occur over a 24-hour period using traditional grinding aid dosage lines, with minimal operational or mechanical change required to the existing plant.
The cement produced was then going to be validated by Breedon’s quality control team to assess its performance enhancement. Overall the trial was going to produce around 2000t of graphene-enhanced cement during the trial. This cement will then be passed to Morgan Sindall Construction for real-world construction demonstrations. First Graphene reckoned that the trial was going to produce the largest volume of graphene-enhanced cement manufactured to date.
First Graphene and the other partners haven’t released any information yet on how the trial went. However, the results will be used to build on data obtained from smaller scale trials previously conducted at a concrete processing laboratory in the UK.
Elsewhere, the 15 projects shortlisted by the GCCA, as part of the Innovandi Open Challenge, were set to pitch their ideas for access to the scheme. The benefits of inclusion on the scheme include access to industry plants, laboratories, networks and the expertise and infrastructure of the manufacturer members of the association. 70 applications were made for the second Innovandi round. The first round in 2021 was focused on carbon capture and utilisation and two projects eventually made it to the pilot stage. This time the emphasis is on low-carbon concrete.
The graphene-related contenders for Innovandi in the current round include Nano Crete, Nanospan India, SeaMix and Versarien Graphene. All four companies are promoting concrete admixtures that use graphene. Given the brief for this Innovandi round, these projects are focused on concrete production as opposed to the trial at the Hope cement plant, mentioned above, which is testing graphene addition during cement grinding.
Nanospan India, for example, is promoting its Spanocrete product. It says that its admixture acts as a superplasticizer and accelerator, allowing for reduced cement and water consumption, a shorter curing cycle and an increase in compressive strength. US-based SeaMix (part of MEP Group), meanwhile, has developed its own concrete admixture that uses chopped basalt fibres and graphene. It too offers greater compressive strength and reduced cement consumption for the resulting concrete. However, it also allows for the use of any non-potable water source, a compelling selling point for construction companies trying to minimise the use of drinking water.
It is early days yet for the application of graphene in the cement and concrete sectors. Graphene was first produced at the University of Manchester in 2004. Just under 20 years later and various products are emerging with test projects slowly gathering pace and even commercial applications, such as SeaMix and others, building up their portfolios. Various challenges such as reduced workability, the high cost of graphene or even concerns about simply handling graphene get raised in discussions about the wider adoption of graphene-based admixtures but so far these do not seem insurmountable. We await the outcomes of the trial at Hope and the selections of the second round of Innovandi.
UK: Breedon Cement commenced a 24-hour trial of graphene-enhanced cement production at its Hope Cement plant in Derbyshire on 28 June 2023. The trial advances the work of a consortium led by Australia-based First Graphene. It is using existing grinding aid dosage lines, with minimal adjustment required. Breedon Cement and its partners aim to produce 2000t of graphene-enhanced cement, using 1.2t of PureGRAPH 50. Graphene-Info News has reported that Breedon Cement will supply concrete produced under the trial to Morgan Sindall Construction for use in its building projects. The University of Manchester is also participating in the consortium.
Breedon Cement managing director Jude Lagan said “The role graphene can play in helping to decarbonise the cement industry could be significant, and we are keen to contribute to this process by facilitating what is set to be one of the largest global trials of this kind.”
UK: Breedon Group has acquired concrete block producer Broome Bros., construction firm Minster Surfacing and concrete block and aggregates producer Robinson Quarry Masters. Breedon Group said that the businesses will strengthen its presence around Doncaster in South Yorkshire, in Antrim, Northern Ireland, and 'from the Midlands to London.'
CEO Rob Wood said “Many of our transactions come to us through our local knowledge and personal engagement with the owners. As a result, our active mergers and acquisitions pipeline has continued to yield high quality, earnings-enhancing opportunities that will enable us to progress our sustainable growth strategy." He added "Each of these independent family-run businesses is aligned with our vertically-integrated operating model, providing further opportunity to pull through upstream building materials while extending our downstream footprint to deliver profitable growth.”
Business Live News has reported that the group has also completed its transition to the London Stock Exchange from the AIM exchange. Breedon Group said that this will enhance its corporate profile by helping to attract greater international investment.
UK: Aggregate Industries, Breedon, Lhoist and Tarmac have announced the launch of the Peak Cluster, a carbon capture and storage cluster of cement and lime plants. The partners aim to eliminate 3Mt/yr of emissions from operations across their plants in Cheshire, Derbyshire and Staffordshire by capturing 100% of their CO2 emissions. Progressive Energy will oversee the capture and transportation of CO2 from the plants for storage below the Irish Sea. Possible storage partners for the cluster are Liverpool Bay CCS or the upcoming Morecambe Net Zero storage project. When operational, the Peak Cluster will eliminate 40% of emissions from UK cement and lime production. Participating cement plants are Aggregate Industries' 1Mt/yr Cauldon cement plant in Staffordshire, Breedon's 1.5Mt/yr Hope plant in Derbyshire and Tarmac's 0.8Mt/yr Tunstead plant in Derbyshire.
Mineral Products Association (MPA) energy and climate change director Diana Casey said “The launch of the Peak Cluster is an exciting and vital step forward in the journey of the cement and lime sectors towards net zero. The region is a historic heartland for cement and lime production providing highly skilled jobs for local communities, and a secure supply of essential materials to the UK economy." She concluded "The UK Concrete and Cement Industry Roadmap to Beyond Net Zero highlighted the importance of carbon capture for the decarbonisation of the cement and concrete supply chain, and the Peak Cluster is an essential part of that transition. This launch demonstrates the commitment of cement and lime producers to transition to net zero to secure the future of these important industries, and the vital products they produce, in a net zero world.”