Displaying items by tag: UK
UK: The Mineral Products Association (MPA) has demanded that the UK government protect the domestic cement industry from rising electricity costs. The comments came in the MPA's response to a Department for Business, Innovation and Skills (BIS) report has stated that electricity bills for UK manufacturers were higher than other key nations because of environmental regulation.
Commenting on the BIS report the MPA said that the new data confirmed what it had been telling the government since 2011. The MPS added the report clearly shows that the UK cement industry must receive some help if it is to survive and supply the UK's low carbon economy.
"The Government now has the evidence to corroborate the industry evidence," said Nigel Jackson, chief executive of the MPA. "It is time for them to respond and take the action we have been urging them to take for so long and to come forward with their long awaited Energy Intensive Industries Strategy."
The BIS report stated that electricity bills for UK manufacturers were higher than other key nations because of climate change levels. It added that by 2020, green taxes will be double those in other EU nations and many times higher than those in the US. According to the report firms in the UK will be forced to pay an extra Euro36 in green taxes on top of the market price they pay for every MWH of electricity by 2020 due to climate policies. This compares with Euro20 in Denmark, renowned for its renewable energy drive, Euro19.3 in France, Euro22 in Germany, Euro12.7 in China and a fall in the US and Russia.
In its response to the BIS report, the MPA stated that the UK cement industry had reduced its CO2 emissions by 57% since 1990 confirmed its commitment to tackling climate change. It approved of the government's 2011 autumn statement to compensate some energy intensive industries against electricity costs by Euro318m. Yet it also pointed out that the UK cement industry will not qualify for a share of the first Euro140m of this because the EU has ruled against such support for the sector, in relation to indirect costs associated with the EU Emissions Trading Scheme.
MP opens new bagging plant at Lafarge site
27 June 2012UK: MP for Rushcliffe and UK Government Cabinet member Ken Clarke has visited Lafarge Cement UK's Barnstone cement blending plant in Nottinghamshire to officially open a new state-of-the-art cement packer at the site. As well as significantly increasing the plant's output, the packer will also secure the future of some 60 local jobs and provide a boost to the local economy.
Supplying the local market with a range of 26 ready-to-use cements, Barnstone also exports specialist cements to 27 countries. Over recent years Lafarge has invested Euro8.5m at Barnstone, expanding production facilities, refurbishing offices and improving safety.
Clarke said, "I was very impressed by the professionalism of all (those that) I met at the plant. Lafarge should be congratulated for its most recent investment in the area and I'm proud the company has this site in my constituency."
The Barnstone plant manager Chris Stephens said, "While the (UK) construction industry currently faces real challenges, our new sophisticated packer will support new secured business and provide capacity and flexibility for future business."
ANH Refractories Europe hires Frank to drive sales
19 June 2012UK: ANH Refractories Europe has hired Stefan Frank, a senior engineer with more than 20 years' experience, to drive export sales across Europe.
The senior refractory engineer has joined the Wirral based firm to bolster expertise in the cement sector. He has been charged with kickstarting a new campaign to increase ANH's profile and drive sales in emerging cement markets in countries including Turkey, Ukraine and Italy.
Frank holds more than 20 years' experience in the refractory industry. This has included roles at HeidelbergCement Group's Technology Center in Leimen, Baden-Württemberg, in Germany, and extensive work in the rotary kiln field.
ANH Refractories Europe managing director Peter Rooney said, " The European cement market has been a solid area for sales in the last 12 months and we believe Stefan has the knowledge and skills to build on this."
The American owned firm, which has a US turnover of US$550m, manufactures materials used in linings for furnaces, kilns and incinerators operating at high temperatures. It delivers refractory solutions, services and products to many industries including aluminium, petrochemical, power, incineration, mineral and glass.
Lafarge to start Tarmac asset sales by end of June
13 June 2012UK: Lafarge's chief executive Bruno Lafont has said that the joint venture between miner Anglo American and cement maker Lafarge in the UK is likely to begin selling a series of assets as required by regulators by the end of June 2012.
The UK Competition Commission said in May 2012 that the companies had to sell 'an extensive package of operations' including one of the UK's largest cement plants, the Hope plant in Derbyshire, for the planned joint venture to win approval.
"It's a process that should start at the end of the month of June when we have completed the process of authorisation and consultation with the antitrust authorities," Bruno Lafont announced.
Both companies said in May 2012 that they were confident the conditions for the joint venture would be met, prompting speculation that they might have buyers for the assets lined up, despite government austerity plans that are likely to limit infrastructure spending.
Diamond cement tanker tribute to Queen
06 June 2012UK: To celebrate the Queen's Diamond Jubilee, Cemex UK has decorated a cement tanker, aggregate tipper, concrete mixer and curtain sider with the Union Jack. The company's fleet of over 1000 vehicles travel thousands of miles every week to deliver essential building materials for construction projects, helping the company to build a 'Greater Britain.'
The Union Jack vehicles will be travelling around the country visiting Cemex sites and delivering loads to key customers.
Image courtesy of Cemex UK
Who would buy Hope?
02 May 2012UK: If Tarmac and Lafarge go through with their proposed JV tie-up in the UK, Lafarge will be obliged to sell its long-established Hope plant in Derbyshire, in the heart of the Peak District National Park, as well as its top-quality limestone quarry and rail depot connections. The Competition Commission has indicated that it would like an 'outsider' to buy the package, which also includes significant other assets in aggregates and readymix. The question is, who might be interested to buy it?
The UK is now a mature market, which has contracted significantly over the last decade, so that heady growth is not a possibility. The competition authorities will ensure that there is real competition in the UK building materials markets, so that only 'normal' margins of 5-10% can be expected - rather than inflated cartel-like or oligopolistic margins of 20% and beyond. Given that the return on capital invested is going to be quite low, why would anyone want to commit their cash (or their credit) to buying into the UK construction materials market? Why not put your money into bio-tech, or telecomms or even into a micro-development bank in the developing world?
I guess that it is largely down to a calculation of risk versus reward (as usual). The rewards of investing in a cement plant and integrated building materials business in the UK may be (relatively) low, but then the risks are also low: the UK is a fairly safe bet for long-term moderate growth, with strong population growth and robust GDP per capita.
Who would buy? A company that wants to balance its portfolio (perhaps a company with most of its eggs currently in the fast-growth/developing world basket), is cash rich (or has access to cheap credit), which is already in cement and aggregates and which might wish to carry home some of the technical knowledge from the deal might be interested. Perhaps some of the Chinese state-owned enterprises or ambitious mid-tier companies from the Middle East would be interested. As ever though, whether a deal is done depends on the price asked - and in the end, the price asked might be too high for anyone.
UK: The UK Competition Commission (CC) has announced that Anglo American plc (via UK subsidiary Tarmac) and Lafarge will have to sell a significant portfolio of operations, paving the way for entry by a new competitor into the UK cement market, before their proposed construction materials joint venture can go ahead.
In February 2012, the CC provisionally ruled that the proposed joint venture between Anglo American and Lafarge could damage competition in certain markets for construction materials. In its final report, the CC has reiterated its concern that the joint venture would increase the danger of coordination in the market for bulk cement and would reduce competition in local and national markets for other products including aggregates, asphalt and ready-mix concrete.
Anglo American and Lafarge will now be required to sell an extensive package of operations including:
• Lafarge's cement plant in Hope, Derbyshire as well as the nearby Dowlow quarry and three linked rail depots.
• A substantial network of readymix concrete plants, representing well over half of the proposed joint venture's readymix concrete capacity.
• Six aggregate quarries as well as Tarmac's share of two quarries owned through its Midlands Quarry Products joint venture with Hanson and one rail
depot.
• Two asphalt plants as well as Tarmac's share of five plants owned through Midlands Quarry Products joint venture.
The CC further stated that the sale would have to be completed before the joint venture would be allowed to proceed.
Cemex to build two waste recycling plants in UK
23 April 2012UK: Cemex is planning to start building two new waste recycling plants in the UK later in 2012. As part of the project up to 30 new jobs operating a site in Rugby, Warwickshire will be created.
Cemex is working with recycling management company Sita UK to produce the alternative fuel, Climafuel, which is made out of domestic, commercial and industrial waste. It plans to build two new waste recycling plants, one in Birmingham and the other in Malpass Farm, next to its existing Rugby cement plant. Work is due to start later in 2012 with an opening date set for 2014. The Birmingham plant is due to start operation later in 2012 and it will also provide fuel for the Rugby Cemex plant.
Together, the two plants will be able to produce and supply up to 250,000t of Climafuel to Rugby which is currently permitted to use up to 65% Climafuel in its fuel mix. A current application to the Environment Agency could see this increase to 80%.
Dan Panormo, Cemex's renewable energy manager, said "With the fuel coming from within a 30 mile radius of the cement plant from Birmingham and subsequently from Malpass Farm, it guarantees the environmental credentials of this alternative fuel."
Dangote Cement targets London for listing
02 April 2012UK: Aliko Dangote plans to list his US$11bn cement business, Dangote Cement, on the London Stock Exchange in 2013. Dangote is cited by the Financial Times as saying he intends to free-float a 20% stake in Dangote Cement to finance its rapid expansion.
"We want to list in London next year. By then the upside to our business will be much bigger than today," Dangote is quoted as saying.
Morgan Stanley and JPMorgan have been appointed as co-leads for the London share issue. Dangote is cited as saying the company was on track to meet the corporate governance requirements for a premium listing, and that he would give up his current role as chairman.
Chris Searle, Partner at BDO LLP commented, "If this IPO goes ahead, it will give London a significant credential that will hopefully attract other African companies at a time when Africa is one of the fastest growing regions in the world and will further cement London's status as the most international stock market in the world."
Searle added that the decision reflects a realisation by Dangote that it must improve its corporate governance. He also expressed surprise that the free float was 20%. Under current rules, the UK Listing Authority has set a minimum free float requirement of 25% for companies seeking to obtain a listing on the London Stock Exchange.
Safety First
07 March 2012Lafarge UK has scored a notable success recently at its Cookstown Works reaching 10 years without a lost-time injury (LTI). It has emerged that this is the longest a Lafarge Group plant anywhere in the world has gone without a LTI. Cookstown also set the record the previous year in 2011, showing how far ahead it is of the rest of the group.
LTIs are generally defined as any work related injury or illness which prevents a worker from doing any work the day after the accident. Another similar measure is Lost Time Injury Frequency Rate (LTIFR), which takes into account hours worked by staff.
For example, in April 2011 Global Cement Magazine interviewed the safety manager at the Ste. Genevieve plant in Missouri, USA. He revealed a rate of zero lost-time incidents rate over the last 1.2 million-man hours and no LTIs over the last 700 days. Through construction the plant employed 2300 personnel and then 200 operational employees when it went live. By comparison Cookstown employs only 80 workers. Its LTIFR will be much lower.
The Mineral Products Association recorded a 81% reduction in LTIs between 2004 and 2009 for the UK cement industry. It has since set itself the further target to halve the LTIFR between 2009 and 2014. As of 2009 the UK LTIFR for direct employees was 3.59 per million hours worked. The MPAs target LTIFR for 2014 is 1.79 or lower.
Regardless of how you present the figures the Cookstown Plant LTI achievement is impressive. The challenge, as ever, lies in bettering it.