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News UK Competition Commission to create new cement producer

UK Competition Commission to create new cement producer

Written by Global Cement staff 15 January 2014
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UK: The Competition Commission (CC) has demanded that Lafarge Tarmac sell one of its cement plants in the UK to create a fifth cement company in the country to increase competition in the market. The CC also intends to increase competition in the supply chain for ground granulated blast furnace slag (GGBS) by forcing Hanson to sell one of its GGBS production facilities. The CC is also introducing measures to limit the flow of information and data concerning cement production and price announcements.

"We believe that the entry of a new, independent cement producer is the only way to disturb the established structure and behaviour in this market which has persisted for a number of years and led to higher prices for customers," said CC Deputy Chairman and Chairman of the Inquiry Group, Professor Martin Cave.

The measures follow a two year investigation which found that both structure and the conduct in the cement sector restricts competition by aiding coordination between the three largest producers: Lafarge Tarmac, Cemex and Hanson. Competition problems also arose from the UK having only one domestic producer of GGBS in the UK (Hanson) with exclusive rights to use the output of Lafarge Tarmac, the single domestic producer of granulated blast furnace slag (GBS), which is the main raw material input into GGBS. The CC estimates that the lack of competition for both of these issues may have cost UK customers up to Euro60m/yr.

The final report follows the publication of the CC's provisional findings in May 2013 and an Addendum to the provisional findings and its provisional decision on remedies in October 2013.

Published in Global Cement News
Tagged under
  • UK
  • Competition Commission
  • Slag
  • GCW133
  • Lafarge Tarmac
  • Cemex
  • Hanson

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