Displaying items by tag: UK
UK: Breedon Group’s revenue grew by 18% year-on-year to Euro502m in the first half of 2019 from Euro424m in the same period in 2018. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 22.3% to Euro90.9m from Euro74.0m. Cement sales volumes increased by 11% to 1Mt and ready-mixed concrete sales fell by 6% to 1.5Mm3.
"The period began well, with benign weather in the first quarter and generally healthy demand for our products, particularly in England, Wales and the Republic of Ireland, somewhat offset by fewer large projects in Scotland. Our performance in the second quarter was adversely impacted by lower volumes in Great Britain due to a flat construction market, ongoing project delays and competitive trading conditions. However demand in Ireland remained robust,” said group chief executive Pat Ward. He added that July 2019 had started well and that the group expected a ‘strong’ second half of the year.
UK: The Institutional Investors Group on Climate Change (IIGCC) has called on European building materials companies to take steps to fight climate change or face commercial extinction. Recommended changes from its new ‘Investor Expectations of Companies in the Construction Materials Sector’ report have been sent to the heads of LafargeHolcim, HeidelbergCement, CRH and Saint-Gobain. The report informs investor engagement with other construction material firms on the initiative’s global list of 161 focus companies. Investment bodies in the group represent US$2Tn in assets, assets under management and under advice.
“The cement sector needs to dramatically reduce the contribution it makes to climate change. Delaying or avoiding this challenge is not an option. This is ultimately a business-critical issue for the sector,” said Stephanie Pfeifer, the chief executive officer (CEO) of the IIGCC. “Major economies such as the UK and France are increasingly adopting economy-wide net zero emission targets. The cement sector needs to get ahead of the profound transformation their sector faces by addressing barriers to decarbonisation in the short- to medium-term if companies are to secure their future.”
Key details set out in the ‘Investor Expectations’ report include becoming carbon neutral by 2050. Companies are expected to set short, medium and long-term science-based targets to reach this goal. Building material companies should be public policy transparent and advocate for the Paris Agreement, they should implement a ‘strong’ governance framework assigning specific responsibility for climate change to a board committee or board member and they should provide enhanced corporate disclosure in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
The IIGCC recognised the steps HeidelbergCement in particular has taken in already having committed to meeting key aspects of the investor expectations it has outlined. CRH, LafargeHolcim and Saint-Gobain have been encouraged to follow suit, given the ‘significant’ role they play as European-based multinationals. The group also praised the ambitious targets set by India’s Dalmia Cement to become carbon negative by 2040.
Refuse-derived legislation in the Netherlands?
17 July 2019The UK waste fuels industry is facing potential challenge from changing Dutch environmental legislation. As part of its new National Climate Agreement the government in the Netherlands is considering imposing a tariff of Euro32/t on imported refuse-derived fuel (RDF) from the start of January 2020. It also wants to add a CO2 tax of Euro30/t on industrial emitters from the start of 2021.
This is bad news for the UK’s waste export market because 1.28Mt or 44% of exported waste fuels from the UK in 2018 went to the Netherlands. The majority of this was RDF. That was more than the next two biggest destinations, Sweden and Germany, combined. Andy Hill of Cynosure Partners summed up the UK situation in the June 2019 issue of Global Cement Magazine when he said, “The UK generates more far more waste than it has landfill, recycling and alternative fuel capacity combined. Quite simply, that’s why the UK exports and has become a leading force in Europe in terms of RDF and solid recovered fuel (SRF) exports.”
Graph 1: International Waste Shipments exported from England, 2011 – 2018. Source: UK Environment Agency.
Graph 2: Destinations of English waste fuels exports in 2018. Source: UK Environment Agency.
Waste management companies and their representative associations on both sides of the North Sea are not taking this terribly well. Robert Corijn, chair of the RDF Industry Group, a European waste organisation, summed up his members response by pointing out both the environmental cost of the new legislation and the risk to jobs in the UK. “RDF export forms a vital and flexible part of the UK’s waste management system, supporting over 6800 additional jobs in the UK, and saving over 0.7Mt/yr CO2e emissions.” Robert Loos of the Dutch Waste Management Association made a similar response questioning what exactly the Dutch government was attempting to achieve.
Steve Burton, one of the directors of UK-fuels producer Andusia, went further by saying that the Dutch had proposed the move on environmental grounds because it has an incineration capacity of 8Mt/yr but produces only 6Mt/yr of waste. “So they think that by setting a tax it will significantly curtail how much gets incinerated in the Netherlands and thus produce less CO2. All very sensible if you consider CO2 in isolation in your own country. However, the Dutch Government aren’t looking at the bigger picture…” He then went on to point out that the RDF would then either get burnt elsewhere or landfilled resulting in no overall CO2 emissions reduction. His further assessment, which you can read here, goes on to speculate amongst other things that Dutch Energy for Waste (EFW) plants could end up having to cut their gate fees by more than the import tariff in order to keep running. The state-owned EFW plants would then made a loss for the tax payers until the market stabilised. It should be noted that the data from the Environment Agency indicates that Andusia exported just under 38,000t of RDF to the Netherlands in 2018.
The more prickly issues of using waste fuels may prove tricky for Dutch legislators. Corijn’s distinction above of using CO2e for the savings from RDF usage is important in this argument since burning RDF and alternative fuels, either for generating energy or making cement, still releases CO2. In the European Union (EU) it’s the biomass fraction of RDF that’s important for the Emissions Trading Scheme (ETS) and the like because biomass emissions are counted as carbon-neutral. Remove this effect and the benefit of waste fuels are more to do with the waste hierarchy and reusing materials rather than leaving them to rot and release methane, a gas with a more potent global warming effect than CO2. Despite this, at face value, importing rubbish and then burning it to release yet more unwanted CO2 may seem nonsensical to the parliamentarians. Perhaps the other thing they should consider is that waste-derived fuels are manufactured products to set specifications. On-going arguments around the world about the developed world ‘exporting its rubbish’ frequently ignore this point.
Since the new Dutch National Climate Agreement is currently at the proposal stage it has a long way to go before it becomes law. First it has to be turned into legislation and then this has to be approved by the Dutch Parliament. As indicated so far the waste management industry will continue to fight its corner with vigour.
UK: Climate change protestors from the Extinction Rebellion group have been arrested for blockading a ready-mixed concrete plant operated by London Concrete at Bow in London. Concrete from the plant is being used to supply a major road tunnel project at Silvertown beneath the River Thames, according to Reuters. Extinction Rebellion blamed concrete production for being a major source of CO2 emissions and it also has concerns about dust pollution. Seven people were arrested by the Metropolitan Police for aggravated trespass. London Concrete is part of LafargeHolcim Group. It operates 12 concrete plants in London.
UK: Hanson Cement says that the first phase of a Euro27m upgrade project to its integrated Padeswood plant in Wales has been completed. The upgrade has included the installation of a 0.65Mt/yr cement grinding mill as well as enhancements to production capacity and efficiency gains. The plant can now, with the aid of existing ball mills, match cement grinding with its kiln capacity.
“The nearly new Loesche vertical roller mill, housed in a 34m-high building, started its life at a grinding plant in Bilbao. It had only 7000 operational hours on the clock and was in excellent condition. After dismantling it piece by piece, specialist contractors moved it to the UK where it was reassembled on site at Padeswood,” said Jim Claydon, Hanson UK cement managing director.
Other improvements at the site include the installation of three new rail cement silos that have been installed alongside the existing railhead. This will allow up to three trains a week to be loaded for deliveries to Hanson depots in London, Bristol or Glasgow. The new silos will reduce the transportation of cement produced at Padeswood to customers by road. In addition to the increase in grinding capacity, other recent capital investment at Padeswood include the installation of a plastic packing machine, and the re-commissioning of an existing paper packaging machine and an upgrade in the capability to use recycled paper and plastics as fuel.
India/UK: The Global Cement and Concrete Association (GCCA) has launched GCCA India. As part of GCCA’s strategic partnership with the World Business Council on Sustainable Development the new office, based in Mumbai, will take over the work of the Cement Sustainability Initiative (CSI) India, which formerly served as the sector’s sustainability alliance.
GCCA India plans to ensure that, from a sustainability angle, innovation in technology and manufacture, and collaboration across the wider built environment, the Indian cement sector can play a key leadership role. It will develop a work program that will focus on the wider global GCCA priorities but with practical application across the Indian built environment.
Global Cement and Concrete Association and European Cement Research Academy announce strategic partnership agreement
02 July 2019Germany/UK: The Global Cement and Concrete Association (GCCA) and the European Cement Research Academy (ECRA) have announced a formal partnership agreement. The strategic alliance is aimed at fostering innovation in the cement and concrete sectors and across their value chain partners.
Under the terms of the agreement, the GCCA and ECRA have granted each other mutual membership in order to aid collaboration. In addition, ECRA’s managing director will join the GCCA’s Partnership Council and the GCCA’s cement director will join ECRA’s Technical Advisory Council. The two parties will share their current work programs and identify key areas for future collaboration and input.
“ECRA’s mission to advance innovation in the cement industry within the context of sustainable development, as well as communicating key knowledge and research findings in technology, fits perfectly with the GCCA’s aim of driving advances in sustainable construction,” said Benjamin Sporton, the chief executive officer (CEO) of the GCCA.
UK: Hanson has been part of a new continuous concrete pour record in the UK as part of its work at the EDF Energy’s Hinkley Point C (HPC) new nuclear power station in Somerset. It supplied raw materials for the concrete to main civil engineering contractor BYLOR, which operates the on-site concrete production plant. The 9000m3, five-day, pour was to construct the last of five reinforced concrete segments that make up the cross-shaped foundations on which all of the first nuclear reactor’s buildings will sit. The record-breaking pour beats the previous UK record set by the Shard skyscraper in London.
The completion of the foundation platform, which is up to 4m thick, represents a significant milestone for the project, described by EDF Energy as J-zero. It marks the transition from below ground activity to the construction of permanent reactor buildings above ground.
Hanson says that mix design for HPC took three years of development and testing to ensure that the concrete was of the required quality mandated by the Office for Nuclear Regulation. The subsidiary of Germany’s HeidelbergCement has 65 employees directly involved in the HPC project team. To date Hanson has supplied 51,000m3 of concrete, 2.5Mt of aggregates, 210,000t of marine sand, 65,000t of cement; 105,000t of ground granulated blast furnace slag (GGBS) and 125,000t of asphalt.
France: Cem'In'Eu plans to raise Euro55m by the end of 2019 to support building new cement grinding plants in Europe. It opened its first 0.25Mt/yr grinding plant at Tonneins, Lot et Garonne in 2018, according to Les Echos newspaper. Construction of a new plant at Portes-lès-Valence, Drôme is scheduled to start in mid-2019. Construction of a larger 0.5Mt/yr plant at Montreuil-Bellay, Maine-et-Loire is anticipated to start in September 2019 for a commissioning date of February 2021. This project will cost Euro35m. Other projects are planned for Chalon-sur-Saône, Saône et Loire and Ottmarsheim.
International projects include a plant at Ottmarsheim, Haut-Rhin in Switzerland and Thamesport in the UK. The former is expected to gather all the necessary permits by September 2019 with construction to follow by the end of the year. An additional project is being planned at the port of Gdynia in Poland.
Simon Marriott appointed as managing director of Concrete Products by Aggregate Industries
05 June 2019UK: Aggregate Industries has appointed Simon Marriott as the managing director of its Concrete Products division. He has also been promoted to the executive committee of the company as part of a strategic decision to raise the profile of the division. The new role will give him responsibility for all hard landscaping aspects of the business including Charcon, Bradstone, Masterblock, Charcon Construction Solutions and Simply Paving. He will also lead the marketing communications function.
Marriott started his career as a plant manager before moving to Bardon Aggregates in 1996. When it merged with Camas to become Aggregate Industries, he become general manager of the Express Asphalt division and later became director of the mainstream asphalt division’s southern region. He then ran Bardon Concrete and Aggregate Industries’ cement importing function, before becoming director of Concrete Products in late 2015.