Displaying items by tag: Mineral Products Association
Chris Leese leaves Cemex UK
07 August 2019UK: Chris Leese has decided to leave Cemex UK after 30 years with the company. His varied career at Cemex has seen him taking responsibility for a broad range of activities, notably as Vice President of Readymix VP and more latterly as Vice President of Aggregates.
Leese has been a long-standing champion of health and safety improvements, taking a lead role at Cemex and the broader industry. He was the chair of the MPA Health and Safety committee for over nine years.
UK: The Mineral Products Association (MPA) has joined the Global Cement and Concrete Association (GCCA) as an affiliate member. Its application was confirmed at the GCCA’s inaugural annual general meeting and symposium in London, which took place in late November 2018.
“Our affiliation to GCCA builds on our valued membership of 12 European Regional Trade Associations covering aggregates, asphalt, cement, concrete, dimension stone, lime, mortar, silica sands. The strengthening of the link between the MPA’s national role, the regional associations and now the global level is a positive and logical next step in aligning the advocacy and influence of the industry in a fast changing and complex world,” said MPA chief executive officer (CEO) Nigel Jackson.
Minimising risk in the UK cement industry
26 September 2018More positive news emerged from the UK cement industry this week with the news that Cemex is planning to restart the second kiln at its South Ferriby plant later in 2018. This marks the full recovery of the plant after a disastrous flood in late 2013 and it is an all round good news story. Around the same time the local government in Scotland approved the planning application for an upgrade to Tarmac’s Dunbar cement plant. That project involves installing a new cement grinding mill, a new cement storage silo and a rail loading facility.
Graph 1: Domestic cement, imported cement and other cementitious sales in the UK, 2001 - 2017. Source: Mineral Products Association.
The timing is interesting given the general uncertainty in the UK economy ahead of the UK exit from the European Union (EU). However, data from the Mineral Products Association (MPA) shows that total cementitious material sales (cement plus products made from fly ash and ground granulated blast furnace slag (GGBS)) reached 15.3Mt in 2017 from a low of 10.3Mt in 2009 following the financial crash. This isn’t as high as the 15.8Mt figures recorded in 2007 but it does mark a recovery. This masks to an extent the change in the market since 2007. Cement sales in 2017 at 10.2Mt were still below a high of 11.9Mt in 2008. The recovery has been driven by higher imports, 1.9Mt in 2017, and higher use of fly ash and GGBS products, which reached 3.2Mt in 2017.
Cemex and Tarmac are not alone in announcing projects. HeidelbergCement’s local subsidiary Hanson is upgrading its Padeswood plant with a new Euro22m mill. Irish slag cement grinding company Ecocem opened its import terminal at Sheerness in mid-2017 and French grinding firm, Cem'In'Eu, has also expressed interest in building a plant, in this case in London.
As discussed earlier in the year, new upgrade projects in the UK appear to carry an element of risk given the unknown status of its departure from the EU. Supply chains may be affected, companies are delaying investment and the value of Pound Sterling is falling. The collapse of construction services company Carillion also had a knock-on effect in the industry and, with major work on the Crossrail infrastructure project finishing, the industry has no major infrastructure projects in support. A quarterly graph of UK construction industry output volume by Arcadis shows almost uniform growth since mid-2012 although this started to flatten in 2017. A badly-handled Brexit (UK exit from the EU) could undo this growth.
All of this presents a picture of risk-adverse capital projects in the UK. The MPA figures help to explain the focus on grinding at Padeswood and Dunbar. The market has changed since 2007, with a growing focus on imports and secondary cementitious materials. Hence spending money on equipment to process these inputs makes sense. The decision to increase production at South Ferriby meanwhile depends on reviving existing equipment. Regional cement sales figures to 2016 from the MPA appear to indicate static demand in counties close to the plant (Yorkshire and Humberside) but sales have increased in the East Midlands and the East of England.
Just compare the current UK approach to the situation in Egypt. This week the head of the cement division of the Chamber of Building Materials described the decision to build the Beni Suef cement plant to local media as “not based on precise information” and that it had harmed local production. In case you had forgotten, that plant is one of the biggest in the world with six lines. The commentator may well have been representing smaller local producers but opening a 12Mt/yr plant in Egypt in these turbulent economic times marks a different approach to risk than the modest plant upgrades in the UK. Let’s wait and see who has the best approach.
Taking the industry pulse at Hillhead 2018
26 June 2018Hillhead 2018 is on this week and where better to capture a feel of the UK’s quarrying and construction industries? For those that don’t know, Hillhead is a biennial show that takes place in a quarry in Derbyshire. The show bills itself as the largest quarrying, construction and recycling event in the world. A large scale UK show gives us the opportunity to look at the local cement industry and we did exactly that in the June 2018 issue of Global Cement Magazine with Edwin Trout’s feature on the UK cement sector in 2017 and 2018. Following on from that article we’ll pick up a few threads.
Graph 1: Domestic cement production in the UK, 1996 - 2016. Source: Mineral Products Association (MPA).
Cement production in the UK fell by 5Mt/yr during the financial crisis of 2007 - 2008. Since then, as Graph 1 shows, production has been growing almost uniformly. However, it may have reached a plateau in 2017, with the major producers complaining about a weakened market due to Brexit uncertainty.
Main points from a news angle are the rise of the Breedon Group with its acquisition of Ireland’s Lagan Cement in April 2018, investments at Hanson’s Padeswood cement plant and Tarmac’s Dunbar cement plant and a fairly static market reported by the major producers. Alongside this, Ireland’s Ecocem opened a terminal in Sheerness in June 2017 and, more recently, has just inaugurated its slag grinding plant on the other side of the English Channel at Dunkirk.
The decision by Breedon to straddle an impending UK-European Union (EU) border seems wise with Hanson’s parent company HeidelbergCement actively blaming Brexit for market uncertainty in the UK. The rise of Ecocem, a slag cement grinder and distributor, also seems to suit the atmosphere with its smaller, more nimble operation than a clinker producer. It’s into this situation that Hanson is reusing a mill from Spain for its Padeswood project and Tarmac is buying its mill from Cemengal, a manufacturer known for making modular mills that can be moved after installation if so desired.
Banging on about Brexit, and indeed Brexit uncertainty, can’t last forever and once clarity appears then the building industry can focus on various pressing issues. One is the country’s lack of residential housing supply. One possible solution for this is a new national planning policy. The government finished a consultation period in May 2018 for the National Planning Policy Framework (NPPF) and industry bodies like the Mineral Products Association (MPA) have been making their views known. The MPA worries that that the proposed changes will weaken the mineral planning system and threaten the replenishment of aggregate and other mineral reserves. It argues that to secure the essential minerals required to build all those new houses the government needs an, “...efficient and effective mineral planning system with up to date plans, well-resourced planning departments and good data, which are prerequisites, as is appropriate capacity and capability in the ministry to ensure the system is planned, monitored and managed.” Detractors may point out that once the NPPF gets sorted we can all get on with the job of actually, like, building things but, as ever, the MPA has its part to play in the process.
Another indicator for the resumption of ‘business as normal’ might be the number of exhibitors at a trade show like Hillhead. The oranisers say that the exhibitors have grown by 10% in 2018 from 2016. With a heatwave forecast, the group stages of the football World Cup continuing and live demonstrations ongoing there are worse places to be to ponder the state of the industry. Come and find Global Cement at our stand (PC45) in the main pavillion at Hillhead 2018 and tell us what you think.
UK cement industry’s CO2 emissions fall in 2016
02 February 2018UK: CO2 emissions from cement production fell by 2% year-on-year to 696kg/t in 2016 from 709kg/t in 2015. Data from the Mineral Products Association (MPA) Sustainable Development (SD) Summary Data for 2017 report shows that local cement sales rose by 3% to 10.5Mt from 10.2Mt at the same time. Alongside this waste and by-products recovered as raw materials and fuels by the cement industry fell by 6% to 1.5Mt from 1.6Mt.
“The MPA supports the industry's continuing commitment to measuring and reporting data and to transparency on performance. The reporting process is now evolving to reflect the 7 strategic priorities set out in the MPA Charter and as part of this process we will be working to further improve the quality and coverage of our sustainability data,” said Nigel Jackson, the chief executive of the MPA.
Check out this great graph that the UK Mineral Products Association (MPA) released in its latest sustainable development report this week. It lays out where the MPA says the various direct and indirect costs come from climate change policies per tonne of cement.
Graph 1: The cumulative burden of direct and indirect cost of climate change policies on the cement sector (per tonne of cement). GBP£1 = Euro0.94 at time of writing. Source: MPA.
If it’s correct then the two biggest contributors from carbon taxes on the price of cement in the UK arise from the Carbon Price Support (CPS) mechanism and the Renewable Obligation (RO). Between them the two policies account for around two-thirds of the carbon tax burden on the price of cement. Of note to an industry advocacy body like the MPA, both of these derive from local legislation and they could be changed or dispensed with separate to the Brexit negotiations to extricate the UK from the European Union that have just officially started.
The MPA then goes on to warn that these added costs could rise from GBP£3.24/t at present to GBP£4/t in 2020 and then the truly terrifying (to energy intensive manufacturers at least) GBP£17/t. Subsequently the MPA has flagged these potentially mounting costs as the biggest threat to the UK cement industry in the near future. Failure to act could mean more foreign imports, loss of jobs and damage to the security of supply. All very heavy stuff. The MPA’s warning was nicely timed to precede the UK government’s response to a consultation on another decarbonisation scheme, the Contracts for Difference (CfD) scheme. Here, the government is about to exempt high-energy users, including cement producers.
Essentially, the key message from the MPA’s report is that the cement sector is picking up but it is still below sales levels in 2007. At the same time it has made all these environmental improvements and, now, steadily tightening regulations threaten its future. Just compare this with the situation in the US where the Portland Cement Association (PCA) recently applauded President Donald Trump’s executive order to roll back environmental legislation from the Obama administration. Despite this it insisted that its members were committed to manufacturing products with a ‘minimal’ environmental footprint.
Funnily enough the MPA didn’t mention environmental issues when it released its updated Brexit priorities for the UK government. This is understandable given the graph above that suggests that the majority of the carbon costs on cement production come from UK legislation. However, sharing a land border with the EU south of Northern Ireland may give rise to all sorts of market skulduggery once any sort of post-Brexit deal becomes clear. And this doesn’t even take into account moving secondary cementitious materials about, like slag, or the UK’s international market in solid recovered fuels (SRF) and the like. Differences in UK and EU overall carbon costs on cement may start to have acute implications for producers in both jurisdictions as the negotiations build. In this atmosphere moves like Ireland’s Quinn Cement’s last month, to build a terminal on the UK side of the Irish border, make a lot of sense.
Mineral Products Association warns of cost burden of climate policy on UK cement industry
30 March 2017UK: Pal Chana, the Executive Director of the Mineral Products Association (MPA), has warned of the cost burden from the implementation of climate change and energy related policies on the cement industry. He made the comments as part of the launch of the association’s 2016 Annual Performance Report.
"The report highlights that one of the greatest threats to the UK cement industry currently and in the near future is the considerable cumulative cost burden from the implementation of climate change and energy related policies, which we estimate are going to increase by 40% to 2020 even with the limited discounting provided by Government. If action is not taken to protect the UK cement sector from these rising costs, imports will increase, jobs will be lost and security of supply will be threatened,” said Chana. The MPA added that despite market improvements production is still 27% below the level it was in 2007.
In the report the MPA reveals that the cement industry has reduced its CO2 emissions by 23% against a 1998 baselines. However, both emissions from calcination and the combustion of fossil fuels rose year-on-year in 2015, the most recent year of reporting. Despite this, emissions of NOx, SO2 and dust were all reduced or stabilised and waste fuels usage showed improvement. The MPA also said it was concerned that policy drivers, such as those incentivising the use of biomass in other sectors, is increasing the competition for limited biomass resource. This could result in a market distortion with the potential to drive cement manufacture back towards coal use.
UK: The Mineral Products Association (MPA) has outlined key points that the UK government should consider ahead of its anticipated triggering of Article 50 of the Treaty of Lisbon later in March 2017 as it moves towards leaving the European Union (EU). Following consultation with its members the association wants the government to focus on six areas including: investment; growth; access to markets; access to labour and skills; maintaining equivalent regulations and standards; and rebalancing regulation after Brexit.
"More needs to be done, both politically and economically, to give the clarity needed by businesses to sustain investment confidence beyond the triggering of Article 50. The economy has remained resilient in the short term, but the issue always was, and remains, what will happen post-Brexit in the medium and longer term? Given that the public political conversation in the UK has not yet involved the other 27 EU member states, we are currently no wiser as to the likely outcome of negotiations. We must therefore contemplate the possibility that no deal may mean a clean break in 2019 and trading arrangements under WTO rules,” said MPA chief executive officer Nigel Jackson.
The MPA has urged the government to build confidence in the short and long term performance of the UK economy and maintain stability. It also wants it to seek the fullest access to European and non-European markets using comprehensive free trade agreements in preference to adopting World Trade Organisation (WTO) rules.
The association also highlighted that, on average, 3% of the Mineral Products industry's workforce comes from the EU, increasing to 9% for activities directly related to freight transport by road. It noted that at present there is no guarantee that EU citizens now resident in the UK will have a continuing right to reside in and work in the UK following Brexit.
Other issues include a desire for the government to confirm its commitment to existing regulatory initiatives and to hold and improve on the international competitiveness of energy intensive industries such as cement and lime. However, it also asked the government to mind the impacts of regulation of taxation on these industries in order to protect investment. Lastly, the MPA wants the government to retain influence in European product technical standards development via the British Standards Institution (BSI), the European Committee for Standardisation (CEN) and design codes.
Mineral Products Association welcomes new UK procurement guidelines
22 December 2016UK: The Mineral Products Association (MPA) has welcomed the government’s publication of new procurement guidance including construction materials like cement. The government plans to use local construction materials in infrastructure projects across 18 separate projects by 2020, including rail and roads, and construction such as building and housing refurbishment.
This announcement also follows the new National Infrastructure and Construction Pipeline, which set out nearly Euro600bn worth of planned private and public investment, and changes to procurement guidance announced by the Department for Business Energy and Industrial Strategy to make it easier for UK producers to plan and bid for upcoming government contracts.
The MPA is working with the Department for Business, Energy and Industrial Strategy and the Crown Commercial Service to develop government guidance for local procurement for cement and concrete. This will extend beyond the current guidance for designers which advises the use of BES6001 to specify responsibly and ethically sourced concrete and masonry.
“Cement and concrete are essential for UK infrastructure development and housing, and contribute significantly to the UK economy. We welcome this announcement from Greg Clark MP, which re-confirms the government’s commitment to infrastructure capital expenditure, and supports the future of a local cement industry. The cement and concrete industries employ 18,179 people across the regions, including in rural areas, and are key enablers for the Industrial Strategy,” said Nigel Jackson, chief executive of the MPA.
UK cement industry emissions rise slightly in MPA Cement Sustainable Development Report 2012
04 December 2013UK: Emissions from the UK cement industry have risen slightly according to the Sustainable Development Report 2012 from the Minerals Products Association (MPA) – Cement.
The MPA reported small rises in nitrogen oxides, sulphur dioxide and dust emissions compared to 2011 due to variety of factors. However, the MPA stressed that all emissions remained below the targets for the sector and limits required by the Environmental Permitting Regulations. Carbon dioxide emissions from cement kilns also rose compared to 2011 due to an increased production of CEM I type cement. Improvements were reported in 2012 year-on-year for lost time injuries and use of alternative fuels.
"Our sustainable development challenges are many and varied, but our strength lies in recognising what these are, setting them out clearly for external stakeholders to see, implementing the measures necessary to meet these challenges and reporting on progress. This first full sustainable development report for the UK cement industry is an important step along a journey that is leading us to a more sustainable future," Dr Pal Chana, Executive Director of the MPA, said. The report has changed from previous editions by commenting on the broader sustainable development aspirations of the UK cement industry in addition to reporting on the manufacturing process.