Displaying items by tag: UK

UK: Breedon Group has appointed Nigel Clamp as Group Head of Health, Safety and Environment. He will assume overall responsibility for the health and safety of Breedon’s 3000-strong workforce, as well as overseeing the group’s environmental and sustainability activities.

Clamp joins Breedon from HeidelbergCement, where he was Health & Safety Director for the company’s Africa & Eastern Mediterranean Basin Region. He was previously Senior Safety, Health & Environment (SHE) Manager at Hanson, prior to which he served as Head of Safety at National Express. He spent the earlier part of his career in a number of quarry management and SHE roles with Lafarge.

One of the summer news stories in the UK has been the drama surrounding the near-failure of dam near Whaley Bridge in Derbyshire. Concrete slabs on an overflow spillway fell away after a period of heavy rain leading to fears that the dam could fail inundating the area. Around 1500 local residents were evacuated for about a week as a precaution until the reservoir’s water level could be pumped down low enough for inspection.

No one was hurt in the incident but it has raised questions about the maintenance and renewal of infrastructure and how this fits with changing weather patterns caused by anthropogenic climate change. A sadder example of this is the collapse of the Morandi Bridge in Genoa, Italy in August 2018 that killed 43 people. This was later blamed on decaying steel rods in the structure. There have been similar debates in the US with President Donald Trump’s on-going attempts to push through a US$2tn infrastructure bill to repair the country’s structures. Although, predictably, it is floundering on the question of who is actually going to pay for it all.

In the UK, for example, cement production hit a high of over 15Mt in the late 1980s before declining to a low of 7.6Mt in 2009 and eventually climbing to above 9Mt/yr since 2015. A big cause of that decline was the 2008 financial crash and the subsequent government austerity policies. Yet, even with this taken into account, production was at around 11Mt/yr in the 2000s. How much, if any, of this production capacity gap of at least 4Mt between the late 1980s and the 2000s might be needed to maintain the country’s infrastructure? Southern Mediterranean countries like Spain and Italy offer even starker examples. Italy’s cement production fell to 19.3Mt in 2017 from nearly 40Mt in 2001. Spain’s production hit a high of around 50Mt/yr in 2007 with apparent production (local consumption and exports) falling to around 20Mt in 2018. Much of these declines are due to loss of export markets but the same basic questions remain about how much capacity will be required in the future to maintain and repair existing structures in developed nations. This could be imported but the usual constraints about moving heavy building materials around inland mean than at least some of this cement will need to manufactured locally.

The International Energy Agency (IEA) estimated in 2010 that the world would need 50Bnt of cement between 2015 and 2030. The global cement industry was already producing around 3.5Bnt/yr in 2015 according to the Global Cement Directory 2015 giving it overcapacity even then towards the estimated target. Global production capacity is just under 4Bnt/yr today. Estimates for the cost of global infrastructure requirements in this period range from US$1Tnr/yr to US$6Tnr/yr. The majority of this will go towards new infrastructure in developing countries but a minority portion will be required for maintenance. One study by the Brookings Institution and the Global Commission on the Economy and Climate estimated that developed countries would need around US$2Tn/yr for their infrastructure bills.

A study by management consultants McKinsey & Company in late 2017 reckoned that there was a worldwide US$55Tn spending gap between then and 2035 for infrastructure spending. It estimated that countries like the UK, Germany and the US needed to increase their annual spending on infrastructure as a percentage of gross domestic product (GDP) by 0.5%. Although Italy only needed to improve by 0.2%. Looking at the change in infrastructure investment rates suggests that the European Union (EU) actually started to improve its investment from 2013 to 2015 by 0.2% but that the US did not.

All of this goes to show that the show is definitely not over for building materials producers in developed countries. These industries may be mature but they should not be complacent. Roads need patching up, bridges need replacing and all sorts of other infrastructure projects are required even in places that have them already.

UK: 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: Aggregate Industries has appointed Max Colligan as the managing director of its Ready Mix Concrete business and as a member of its executive committee. He holds over 30 years of experience in the construction industry. He holds a degree in civil engineering and has post-graduate qualifications in quarrying.

UK: Breedon Group has appointed Clive Watson as a non-executive director. He takes the post from 1 September 2019. Watson recently held the role of Group Finance Director at Spectris, a provider of productivity-enhancing instrumentation and controls. Prior to this he has held a number of senior finance positions with international businesses in the UK and overseas. He served as a non-executive director of Spirax-Sarco Engineering from 2009 to 2019, including as chair of the Audit Committee and latterly senior independent director, and is due to join DiscoverIE Group as a non-executive director in September 2019. It is anticipated that Watson will assume the chair of the Audit Committee at Breedon group when Susie Farnon steps down from the board in early 2020.

UK: Cemex has invested around Euro1m on relocating and upgrading its Eversley ready-mixed concrete plant. The new plant will be located at the Bramshill Quarry in Hampshire reducing the need for truck journeys to the fomer site nearby. The unit is being replaced with a Liebherr 2.25 mobile mix plant. The plant will have a storage capacity of 300t of cement, and 240t of aggregates. It will increase production from 80m³/hr to 24m³/hr. The inclusion of a central mixer will also enable special products such as traditional sand cement screed and flowing screeds like Supaflo to be produced, increasing the product range available.

UK: The Global Cement and Concrete Association (GGCA) has launched a photography competition to showcase the role of concrete in the world. The contest has three categories and is open to both professional and amateur photographers. A top price of US$10,000 is on offer for the winning entry.

Ireland/UK: Quinn Industrial Holdings has installed an automated weighbridge system supplied by Precia Molen at its limestone quarry at Crievehill near Fivemiletown, County Tyrone in Northern Ireland. The new weighbridge was completed in June 2019. It includes the company’s VS310CS pour on site surface weighbridge complete with driver operated control systems. Other upgrades at the site include a lorry wheel wash, a new access route and improved security, health and safety measures. Quinn purchased the quarry from Acheson and Glover in late 2018. It is using limestone from the mine to make cement.

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.