PRESS NOTICE 11 May 2007

Precast industry hit again by cement shortages

The concrete products industry has registered its grave concern at continuing cement shortages which are affecting production at precast concrete plants in many areas of the country.

David Sarti, Managing Director of Marshalls Landscape Products and incoming President [from 17th May] of British Precast the trade body for the sector, said: “The problems of February and March seemed to be easing for a time, now we are affected yet again and more importantly so are many of our industry’s customers. No one can predict incidents at cement factories and from time to time they are going to happen. Usually there is some slack capacity in the supply pipeline but it just does not seem to be there to cope with the current and ongoing production issues. Globalisation of the UK cement industry should have enabled easier access to supplies from overseas plants but it is just not working out like that. Precasters, together with readymix businesses and cement suppliers are investing heavily in developing the UK market for concrete. Cement supply interruptions could force customers back towards less effective , but more available, construction solutions – it really is an own goal.”

Alan Clucas, Managing Director of Bison Concrete Products, is incoming vice-President of British Precast. Bison, like Marshalls, is one of Europe’s largest concrete product suppliers. Mr Clucas has expressed dismay at the supply situation. “We have been advised at a couple of days notice of deep cuts in cement supplies in the North and Scotland with reductions in the Midlands to follow. These reduced supplies will prove extremely challenging for the sector. Other producers are being forced to temporarily shut down production units due to the lack of deliveries. I would like to assure customers that we are doing what we can to get through these supply problems. We expect the cement industry to do much more to get around this problem by bringing in the shortfall from their overseas plants. The precast sector uses 4 million tonnes of cement each year in the UK. On the global scale we are a small though increasing market with good prospects and our local cement industry should be coping so much better than this“.

One of British Precast’s main product associations is the Concrete Pipeline Systems Association. Chairman of the CPSA is Andy Goring of Milton Precast in Kent – he states “CPSA members feel extremely disappointed to have been let down by suppliers of such an important raw material to the precast industry. Despite the statements made in the past and in the BCA code of practice.........

"Members shall endeavour to maximise their contribution to society through their role as suppliers of a vital construction material and as corporate citizens."

we have been under pressure and threat of shortages for some time. The cement industry needs to take a long hard look at its responsibilities and investment programmes to ensure that the situation is not repeated. In the short term their association needs to work with its members, with the CPSA and with British Precast to try and resolve this as rapidly as possible, and to source alternative supplies. We have no wish to hand our much valued market over to foreign competitors or inferior alternative materials”

British Precast Chief Executive Martin Clarke said “the phones have been red hot with complaints from our members. They are doing what they can to make supplies go further by use of cement replacements and admixtures but there is a limit to what can be done by those means. Earlier this year we were hit by supply problems caused by coinciding cement plant maintenance coupled with unavoidable incidents”.

“The short term problems will be challenging for members at a time when demand is generally good and precast solutions are increasingly popular. Jobs and reputations are now at stake. We have overseas precast competitors on a lower materials and energy cost base who will be now heading for our hard-won markets. In the medium term I am very concerned about the effect on the industry’s significant investment plans to increase capacity and introduce new product lines, though I would stress that we will ensure together with the cement industry that these problems will be sorted out as soon as possible – and most certainly they will not affect forthcoming megaprojects such as London 2012 and Crossrail

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Available for comment are :

David Sarti tel 01484 438939
Alan Clucas tel 01283 495466
Steve Parker Precast Director of Roger Bullivant tel 01283 525045
Tim Noble Head of Purchasing Marley Eternit tel 01675 468459
Richard Raymond – MD Hughes Concrete [CPSA past Chairman] tel 01538 380500

Editors notes:

British Precast Concrete Federation is the trade body for the UK precast concrete products industry. The industry turnover is around £2.5 billion employing around 22,000 people. 38 million tonnes of products are produced – essential products for new and refurbished housing, commercial and industrial buildings, transport and utilities infrastructure, hospitals, schools and urban renewal.

Issued by

Martin Clarke
Chief Executive
British Precast
Mob 07850 278494
Business 0116 253 6161
Home 01453 843646

British Precast
60 Charles Street
Leicester
LE1 1FB
www.britishprecast.org