Displaying items by tag: Cemex UK

UK: Cemex UK has invested around Euro0.65m in its UK rail transport network between 1 January 2020 and 31 October 2020, upgrading the Crawley, Cambridge, Dove Holes, Salford, Selby and Sheffield railheads. The company spent Euro0.44m on the Dove Holes railhead upgrade, “extending the rail loading wall to increase the shovel loading and storage capacity and installing track working modifications to provide more flexibility to operations” at the site in Derbyshire. It said that the investments are “part of a rolling four-year development programme, with plans in place to spend similar amounts each year.” This will include further upgrades to the Sheffield and Selby railheads in 2021. The company said that the aim is “to increase safety standards and reliability while providing opportunities to grow and enhance service levels.”

David Hart, Cemex’s Supply Chain Director for UK & France, said, “As a result of the investment into our rail network this year we have been able to grow volumes and make our service more reliable, which in turn has halved our unplanned outage costs and incidents. These developments will also ensure our railheads lead the industry for safety standards and are more robust. Rail is an integral part of Cemex UK’s supply chain network and we are committed to increasing our service further, capitalising on the time, capacity and efficiency benefits this form of transport offers.”

UK: The Competition and Markets Authority (CMA) has announced that it will consider the undertakings offered by Breedon Group to which its deal with Cemex UK for acquisition of several of the latter’s ready-mix and aggregates operations would be subject. The regulator explained its ruling by saying, “There are reasonable grounds for believing that the undertakings might be accepted by the CMA under the Enterprise Act 2002.” This may lead to the completion of the acquisitions, which were agreed on 21 January 2020.

UK: Cemex UK says that construction company Kier used concretes from its reduced-carbon dioxide (CO₂) Vertua range to complete a net-zero CO₂ residential construction project at the University Warwick. Sales executive Matthew Doran said that the student accommodation, called Cryfield, “was the first project for which Kier has chosen to use the Vertua range and it was an exciting opportunity for Cemex to demonstrate the value of this product as both a high-performance and sustainable choice.”

UK: The Competition and Markets Authority (CMA) has said that Breedon Group’s acquisition of a minority of Cemex UK’s ready-mix and aggregates operations “may lead to a substantial lessening of competition in the supply of ready-mixed concrete, non-specialist aggregates or asphalt in 15 local markets across the UK” in a letter to the group. The Herald newspaper has reported that the potentially affected markets are in localities where Breedon Group is already dominant, such as eastern Scotland and the East Midlands.

CMA senior director Colin Rafferty said, “As consumers source the majority of these materials locally, it’s vital to ensure that enough competition will remain at the local level so there’s enough choice and prices remain fair.” If it fails to respond to the CMA’s concerns by 2 September 2020, Breedon Group will face an in-depth Phase 2 investigation into the deal.

UK: The Competition and Markets Authority (CMA) has issued Initial Enforcement Orders (IEOs) to Breedon Group and Cemex over the former’s acquisition of a minority of UK ready-mix and aggregates operations, as well as a cement terminal, belonging to the Mexican cement giant for Euro211m. Breedon Group said that the IEO was expected and would govern, among other things, the ‘form and scope of the information that can be shared between Breedon and Cemex’ in defence of customers’ interests, according to The Construction Index website.

UK: The Mineral Products Association (MPA) Cement’s five members – Breedon Cement, Cemex UK, Hanson Cement, Lafarge Cement and Tarmac – saw their direct CO₂ emissions per tonne of cement rise by 0.6% year-on-year to 633kg in 2018 from 629kg in 2017. Refuse-derived fuel rates in 2018 were 43.2%, down by 0.5% from 43.8Mt in 2017. The industry achieved its seventh consecutive year in which producers sent zero process waste to landfill. Overall sales fell by 1.0% year-on-year.

UK: Cemex has agreed a new partnership with Turners, a privately owned transport company. This contract will see Turners operating 20 bulk cement tankers for Cemex across the country. No value for the deal has been disclosed.

“We are always looking for ways to improve our logistics operation, and this partnership with Turners will create new flexibility in our service, thanks to their large fleet of safe and efficient heavy goods vehicles (HGV),” said David Hart, Cemex’s Supply Chain Director for UK & France.

UK: Cemex has entered a conditional agreement with Breedon Group for the divestment of certain UK assets, including 49 ready-mix plants, 28 aggregate quarries and a cement terminal for Euro211m including Breedon Group’s assumption of Euro27.3m lease liability. Cemex UK retains the 1.2Mt/yr Rugby cement plant in Warwickshire. Breedon Group CEO Pat Ward said, “We expect the deal to be accretive to both earnings and free cash flow in the first full year, with a positive ongoing impact on the cash generation of the enlarged Group.” Cemex CEO Fernando Gonzalez said that the transaction ‘further rebalances our portfolio into our core markets, enhances our profitability and enables us to continue to focus on deleveraging.’

The businesses being handed over also include concrete products operations, depots and asphalt plants and fall under all six of Breedon Group’s regional divisions. Ward has said the acquisitions will significantly enlarge the group’s footprint in underrepresented divisions, implying that the cement terminal in question may be the Leith terminal in Scotland or the Newport terminal in Wales, two regions in which the company currently has no terminals to receive cement produced at its 1.5Mt/yr integrated Hope cement plant in Derbyshire. Breedon Group will seek to hire employees working on the operations from Cemex and expects to bring its total UK personnel to 3600 people as a result. It says its mineral reserves will exceed 1.0Bt.

Cemex UK retains 259 concrete plants and 36 aggregates quarries and dredging operations. Cemex said it ‘will retain a substantial integrated business in the UK encompassing cement production.’