Displaying items by tag: UK

UK/Ireland: Ecocem is to open a new terminal at Runcorn to increase its exports of slag cement to the UK. A second terminal in the south east of the UK will be opened later in 2016, according to the Irish Times. It has invested Euro5m towards building both terminals. The ground granulated blastfurnace slag (GGBS) producer is targeting the UK market due to demand for cement coupled with changes in the coal and steel industries.

The company says it has received orders for 200,000t of slag cement in its first year and that it is not taking any further orders. Opening its second terminal in the UK is anticipated to give it access to 80% of the UK market. Ecocem produces slag cement at three grinding plants in Dublin in Ireland, Moerdijk in the Netherlands and at Fos in France.

Ireland: Quinn Cement and the Warrenpoint Harbour Authority (WHA) have signed contracts to build five cement silos at Warrenpoint Harbour with a total storage capacity of 7500t dedicated to the export of bulk cement from Quinn Cement to the UK market. The 10-year deal will see WHA invest Euro3.2m into the project. Work on the project is due to commence immediately, with completion expected in September 2016.

"This is a very significant development for the business, which will allow us to provide an even stronger service offering to our UK customers as well as creating additional local job-opportunities servicing the growing UK construction sector,” said Liam McCaffrey, CEO of Quinn Industrial Holdings Limited, the holding Company for Quinn Cement.

Quinn Cement is currently in the process of extending its storage and distribution centre at Crown Wharf in Rochester, UK where it is constructing two additional storage silos to bring its total capacity at Rochester to 7400t. Construction of that extension is due to be completed at the end of March 2016. Additionally, Quinn Cement is in discussions with regard to setting up a second import facility on the UK mainland.

UK: The Materials Handling Engineers Association has announced that the BULKEX conference will be held on 5 – 6 October 2016 in Harrogate, UK. The event is aimed at professionals, organisations and academics in the bulk materials industry.

UK: Renold Couplings has announced it will launch two new product ranges of couplings at the Drives & Controls exhibition in April 2016. Both couplings are designed for industrial couplings such as those in mines and quarries.

The Hi-Tec RBI range will extend the existing RB range by incorporating a new block profile to increase torque throughput by 50%. As with the existing industrial RB range, the new Hi-Tec RBI will be available off the shelf.

The new Hydrastart range will now come complete with Renoldflex coupling. This addition will be ‘drop-in’ so the drive assembly can remain in place, allowing the Hydrastart to be swapped out. The only bespoke machining will be the bores at the end of the couplings reducing lead times.

“We are pleased to say that the Hi-Tec RBI and Hydrastart are just the first of our scheduled product launches in 2016. We listened to our customers and recognised that Renold Couplings not only needed to expand our current offering and reduce lead times, but also become more price-competitive in the market. The introduction of new ranges throughout 2016 will go some way to address this,” said Tom Hattersley, Commercial Director for Renold Couplings.

UK: Hope Construction Materials has announced the launch of a new bagged cement product scheduled for later in 2016. The new product, called Professional Grade Cement, will be marketed in the south of England.

“Hope Works has been making cement for more than 80 years and has an outstanding reputation for consistent quality and service. We are delighted to be able to offer our product in our own branded bag to customers for the very first time,” said Hope’s Commercial Director for Cement, Gary Brennand.

The new product packaging will feature a large ram, paying homage to the company’s origin in Derbyshire, which is transparent to ensure the consistent colour of Hope cement is always clearly visible. All the bags will be plastic, weatherproof and packed to give end users confidence that they can store the bags outdoors.

Hope cement had previously been available in bags through a third party supplier. This launch marks the first time Hope cement will be on the company’s packaging. The new product follows an 18-month research and development process with consultation of merchants and professional builders.

UK: Untha UK has appointed Marcus Brew as its new managing director. Brew was previously the sales director. The previous managing director since 1997, Chris Oldfield, will become the company chairman.

"Having been a part of the business for seven years, it is a pleasure to now lead the company through our next phase of growth. In truth, Chris and I won't feel much of a change, as we've both been concentrating on these responsibilities for some time – the new titles are really just a formality," commented Brew.

UK: The Competition and Markets Authority (CMA) has published a final order affecting the suppliers of cement and cementitious products in Great Britain (GB). The order sets out these suppliers will be prohibited from sending generic price announcement letters to their customers. Instead, any price announcement letter will have to be specific and relevant to the customer receiving it, including setting out the last unit price paid, the new unit price and specific details of other charges that apply to the customer. The order is effective from 23 January 2016.

The order results from the Competition Commissions (CC) investigation into the supply or acquisition of aggregates, cement and ready-mix concrete in GB, which required Lafarge Tarmac to sell one of its cement plants and Hanson to sell one of its ground granulated blast furnace slag (GGBS) plants to enhance competition in the cement and GGBS markets. The CC also said that it would implement two further remedy measures aimed at reducing transparency in the GB cement markets, comprising a prohibition on generic cement price announcements and restrictions on the disclosure and publication of market data.

UK: Martin Riley has been appointed Senior Vice President of Tarmac. He will report to Ken McKnight, President Europe Heavyside. Riley was previously Managing Director, Aggregates and Asphalt at Tarmac. The appointment is part of the transition of the businesses acquired from Lafarge Holcim into the European Heavyside business of CRH.

In addition, the Tarmac Cement and Lime business will integrate into a new CRH business cluster consisting of UK Cement, Ireland and Spain, led by Oliver Mahon, Senior Vice President, who will also report to Ken McKnight. As part of this reorganisation the former CEO of Tarmac since 2013, Cyrille Ragoucy, will leave the business.

We're going to start 2016 with a list of some of the worst things that could happen to the global cement industry this year. The idea is taken from Bloomberg Business who ran 'A Pessimist's Guide to the World in 2016' in mid-December 2015. For some of these suggestions there will be both winners and losers. Remember: forewarned is forearmed.

Continuing low oil prices hit Russia and other petro-propped economies
Cheaper fossil fuels should mean cheaper energy bills for cement producers. However, that saving must be compared to the overall cost to the global cement industry of poor construction markets in Russia and other economies that rely on oil. For example, Russian construction output fell by 4.5% to US$81bn in 2014 according to PMR. It is possible that the fuels bill saving worldwide is greater than the contraction of certain construction markets. If it is though, is this a price that the cement industry is willing to pay?

China enters a recession
The long-expected Chinese 'hard landing' seems closer than ever, as economic growth slows. It hasn't happened yet (according to official figures at least) but the 7% drop in Chinese markets on 4 January 2015 gives observers the jitters. The financial reverberations from a full Chinese financial crash would be felt around the world, derailing emerging economies due to reducing demand for exports and commodities. Naturally, construction markets would suffer. This would add to the woes currently being experienced by Brazil, Russia and South Africa. The other worry for the cement industry specifically might be the complications from a desperate Chinese industry trying to flood the outside world with even more of its products and services, including lots of cement.

Climate change impacts cement plants
Normally when it comes to climate change the cement industry worries about the effects of carbon taxation and pollution controls. However, media reporting about flooding in the UK in late December 2015 and strong El Niño effects elsewhere makes a pessimist wonder about the effects of hotter and wetter weather upon the infrastructure of the industry. The cost to repair the flooded Cemex UK South Ferriby cement plant in 2014 was rumoured to run to Euro14m and production stopped for a whole year. Costs like these are something the industry could do without.

International sanctions remain in place for Iran
Hoping that lifting economic sanctions from Iran will boost the fortunes of multinational cement producers and equipment manufacturers may be wishful thinking. Yet if the sanctions stay in place due to deteriorating relations between Iran and Saudi Arabia then nobody can discover what opportunities there might be in the world's fourth largest cement producing nation. Of course Iran's geographical neighbours across the Gulf (and in Pakistan) might be hoping that the sanctions stay in place for a very long time indeed.

Sub-Saharan Africa builds production capacity too fast
Multinationals and local cement producers alike are scrambling to build cement plants in sub-Saharan Africa. Demand for cement and low per capita consumption suggest that it is a clear investment opportunity as development kicks in. However, we have already reported on scraps between local cement associations and importers from other continents. If the cement producers build capacity faster than these countries develop, then a crash can't be too far fround the corner and everybody loses.

The UK leads an exodus from the European Union
For the cement industry a UK exit, to be voted on later in 2016, from the European Union (EU) isn't necessarily a bad things. What would be negative though is a badly handled exit process as vast swathes of trade legislation is renegotiated. What a 'Brexit' might initiate are further exits from the EU, leading to further trade disruption on a larger scale. None of this would aid Europe's economic recovery in the short term.

US Presidential elections slow the construction market
Irish bookmaker Paddy Power is currently placing odds of 9/2 for Donald Trump to be elected the next US president in late 2016. He's the second favourite candidate after Hillary Clinton despite not even having been nominated as the Republican party's presidential candidate yet. Whoever becomes the next president, the political uncertainty that occurs as the election progresses may impact upon the US construction market. It would be unfortunate to discover that the sector is weaker than expected if, say, the election rhetoric turns nasty.

Next week: reasons to be cheerful.

Happy New Year from Global Cement!

UK: Lhoist has announced that its Thrislington lime plant in the north of England will be mothballed. The decision came on the back of the recent closure of steel manufacturing facilities in the UK, to which the Thrislington plant supplied the vast majority of its dolomitic lime. A total of 40 staff will now commence a collective consultation process with management via union and employee representatives.

"Unfortunately demand for dolomitic lime from our Thrislington plant has drastically reduced, since the closure of steel manufacturing plants in this region," said Cedric de Vicq, Managing Director of Lhoist UK. "We are looking at opportunities to retain staff where possible."