Displaying items by tag: Hanson
UK: The Competition Commission has provisionally found that the UK's three major cement producers are failing to compete on price.
The UK regulator said there were serious problems in the way that the cement market operates in the UK, with customers facing higher prices because the producers know too much about each other's businesses. It estimated that this behaviour could have cost consumers around Euro212m between 2007 and 2011, adding that it was looking at a wide range of remedies to increase competition.
"Strikingly, despite low demand for cement over recent years, prices and profitability for the British producers have still increased," said Commission deputy chairman Martin Cave. He added that Lafarge Tarmac, Cemex and Hanson have concentrated on retaining their respective market shares rather than competing to the full.
The watchdog said that there was no explicit collusion between the firms. Instead there have been conditions that allow them to coordinate their behaviour, including established information channels such as price announcement letters, copy-cat behaviour and cross-sales.
"Given the extent of the problems we have found, we feel that hard-hitting measures may be necessary to open up the cement market to greater competition by transforming existing structures and behaviour," said Cave. Possible remedies could include requiring the firms to divest of cement plants as well as prohibiting generalised price announcement letters.
The UK cement industry consists of four companies: Lafarge Tarmac, Cemex and Hanson, a subsidiary of HeidelbergCement. The fourth company, Hope Construction Materials, was established in January 2013 as a result of the one of the Competition Commission's requirements for the creation of a joint-venture between Lafarge and Anglo American (Tarmac) in 2012. It led to the Euro353m sale of plants and quarries to steel tycoon Lakshmi Mittal's investment vehicle, including one of the UK's largest cement plants in Hope, Derbyshire.
Hanson’s EcoPlus reduces use of Ordinary Portland Cement
20 March 2013UK: Building materials producer Hanson, a UK-based part of Germany's HeidelbergCement, has launched a new range of quality concretes designed to reduce the CO2 emissions associated with construction projects. The EcoPlus range contains Hanson Regen, a sustainable substitute for Ordinary Portland Cement (OPC) in concrete. Hanson Regen is a ground granulated blastfurnace slag (GGBS) and can replace up to 70% of the OPC content. Replacing 1t of OPC with 1t of Regen in EcoPlus concrete reduces the embodied CO2 by around 850kg.
Paul Lacey, Hanson's head of sustainability and marketing, said, "EcoPlus is designed to help engineers, specifiers and contractors meet current and future environmental legislation. Our online carbon calculator shows the CO2 savings that can be made by specifying one of our eight standard EcoPlus mixes, which are suitable for foundations, pavements and structural projects. We can also design and supply bespoke mixes."
Using Regen in EcoPlus also improves the durability of structures, particularly where sulphates and chlorides are an issue, and gives a lighter, more aesthetically pleasing colour to the concrete.
Hanson to announce job losses
10 October 2012UK: Hanson, the UK subsidiary of HeidelbergCement Group, has announced that it will have to make job losses after a fall in demand. Hanson told its workers that demand for its core products, including asphalt, concrete and cement, had fallen by more than 10% during 2012 and that 2013 is likely to be worse.
The company said that it would have to take steps to balance the size of the business by reducing capacity and bringing overheads into line, moves that would 'inevitably' result in job losses.
An announcement on restructuring proposals will be made by the end of October 2012, with no details available yet on the number of job losses. The GMB union said it feared that hundreds of jobs will be lost.
Hanson UK preparing for job losses in 2012
25 November 2011UK: Hanson UK has announced that it is preparing for a 'tough' 2012. Jon Morrish, managing director, said "We informed employees two weeks ago that we were carrying out a detailed review of the cement business to prepare us for what we expect to be a very tough market in 2012 and beyond."
Morrish's comments arose is the wake of rumours that jobs may be cut at the company's Castle Cement plant in Lancashire. The site currently meets 25% of the UK demand for cement and employs around 300 people. Hanson, a subsidiary of the HeidelbergCement Group, currently runs three plants in the UK including plants in Lincolnshire and Wales, with a workforce of over 1000.
Morrish added, "This review, which includes an assessment of recent changes to the European carbon trading rules, encompasses all three of our cement plants and covers all functions from production and sales to technical and distribution. The three plants are all vitally important to the long term future of the business and there is no intention to close any of them."
"However, it is likely that production levels will change, which will have an impact on jobs. We plan to table outline proposals to employee representatives and recognised trade unions early next week and begin a proper and effective consultation process."