Ready to become a greener cement company? Ormat Waste Heat Recovery Tailor-Made Solutions - Ormat
Global Cement
Unmatached fuel flexibility with Pyrorotor - KHD
Online condition monitoring experts for proactive and predictive maintenance - DALOG
Cut your energy costs with our high-performance lubricants and services - Kluber Lubrication
Optimizing your cement plant. Empowering your team. CemAI - Cement Intelligence
  • Home
  • News
  • Conferences
  • Magazine
  • Directory
  • Reports
  • Members
  • Live
  • Login
  • Advertise
  • Knowledge Base
  • Alternative Fuels
  • Services
  • Jobs
  • Privacy & Cookie Policy
  • About
  • Register
  • Trial subscription
  • Contact
  • Accommodation
News Competition Commission improves competition in the UK. Again.

Competition Commission improves competition in the UK. Again.

Written by Global Cement staff 22 January 2014
  • Print

Following a two-year investigation, the UK Competition Commission (CC) has concluded that the UK needs a new cement producer to further encourage competition. Lafarge Tarmac will be required to sell one of its five cement plants. Additionally the CC wants the HeidelbergCement subsidiary Hanson to sell one of its slag grinding plants to increase competition in the supply chain for ground granulated blast furnace slag (GGBS).

The CC's competition investigation estimated that UK customers were cost at least Euro55m/yr between 2007 and 2012 due to high cement and GGBS prices, brought about by a lack of competition. According to Mineral Products Association (MPA) cement sales data, over the same period cement sales in the UK fell from 12Mt in 2007 to 8Mt in 2012.

Although it seems strange that the CC has acted again to support competition in the UK (just one year afterthe Lafarge Tarmac merger) the CC defended its actions in a letter to the December 2013 issue of Global Cement Magazine. According to Rory Taylor, the Lafarge Tarmac merger inquiry could only maintain pre-existing levels of competition, while the investigation's remit was to increase competition if it found a problem.

Explaining their administrative procedures provided little comfort for Lafarge Tarmac, which complained about the ruling. "Its analysis of industry profitability, which is central to its conclusion of Adverse Effect on Competition, is flawed, grossly overestimating the returns made. It has also failed to take into account the new business environment that has been established by our divestments - only 12 months ago - to create a new competitor (Hope Construction Materials), and the entry of new importers into the market."

One such importer, Quinn Cement, popped up this week with news that it is to invest Euro16m in its cement plant at Cavan, Ireland. It has hopes to capture 1% of the mainland British market, making it up to Euro9.6m in the process. Although the CC doesn't think that imports significantly effect cement prices in the UK, those Irish hopes have likely been boosted following the UK CC's decision. Whether it is in the interest of UK consumers remains to be seen. One measure of the CC's activity this time might be the time that passes before its next intervention in the cement industry.

Returning briefly to last week's column (MINT cement focus: Indonesia, GCW133), Holcim Indonesia has reported that its sales fell by 2% in 2013. Growth in the cement industry in Indonesia is by no means assured. Holcim will publish its full annual results for 2013 on 26 February 2014.

Published in Analysis
Tagged under
  • UK
  • GCW134
  • Competition Commission
  • Lafarge Tarmac
  • HeidelbergCement

Register for the Global Cement Weekly email newsletter

Global Cement Weekly is Global Cement’s weekly email newsletter. Keep up to date with cement industry news, analysis, diary dates and news of people in the sector.

Register >

Related items

  • Aggregate Industries to use waste tiles as alternative raw material
  • Cemex rolling out environmental product declaration for cement produced in Europe
  • Breedon Group’s 10-month 2023 trading update shows sales growth
  • Mineral Products Association bemoans UK budget’s lack of commitment to a UK carbon border adjustment mechanism
  • Kaziwe Kaulule appointed as Group Strategy and Commercial Growth Director at Aggregates Industries
back to top
P84 HT filter bags ensure the best filtration performance - Evonik - Leading Beyond Chemistry
AI Modules - The Kima Process
Loesche - Innovative Engineering
Airscape - The new sealing standard for transfer points in conveying systems
We Move Industries - HEKO Group - Conveying Solutions
Acquisition Cemex China CO2 concrete coronavirus Export France Germany Government grinding plant HeidelbergCement Holcim Import India Lafarge LafargeHolcim Mexico Nigeria Pakistan Plant Product Production Results Russia Sales Sustainability UK Upgrade US
« November 2023 »
Mon Tue Wed Thu Fri Sat Sun
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30      



Sign up for FREE to Global Cement Weekly
Global Cement LinkedIn
Global Cement Facebook
Global Cement Twitter
  • Home
  • News
  • Conferences
  • Magazine
  • Directory
  • Reports
  • Members
  • Live
  • Login
  • Advertise
  • Knowledge Base
  • Alternative Fuels
  • Services
  • Jobs
  • Privacy & Cookie Policy
  • About
  • Register
  • Trial subscription
  • Contact
  • Accommodation
  • Conferences & Webinars >>
  • Global Ash
  • Global CemBoards
  • Global CemCCUS
  • Global CemEnergy
  • Global CemFuels
  • Global CemPower
  • Global CemProcess
  • Global CemProducer
  • Global Cement Quality Control
  • Global CemTrans
  • Global ConChems
  • Global Concrete
  • Global FutureCem
  • Global Gypsum
  • Global GypSupply
  • Global Insulation
  • Global Slag
  • Global Synthetic Gypsum
  • Global Well Cem
  • African Cement
  • Asian Cement
  • American Cement
  • European Cement
  • Middle Eastern Cement
  • Magazine >>
  • Latest issue
  • Articles
  • Editorial programme
  • Contributors
  • Link
  • Awards
  • Back issues
  • Subscribe
  • Photography
  • Register for free copies
  • The Last Word
  • Websites >>
  • Global Gypsum
  • Global Slag
  • Global CemFuels
  • Global Concrete
  • Global Insulation
  • Pro Global Media
  • PRoIDS Online
  • Social >>
  • LinkedIn
  • Facebook
  • Twitter

© 2023 Pro Global Media Ltd. All rights reserved.