Hillhead 2018 was held at a quarry in Derbyshire, UK, at the end of June. It is the world's largest quarrying, construction and recycling industry event, which is held every two years. There is no better place to get a feel for Britain's mining and construction industries than here, giving us a chance to learn about the local cement industry.
Figure 1: Cement production in the UK, 1996-2016 (in millions of tonnes)
Source: Minerals Association (MPA)
During the financial crisis, cement production in the United Kingdom declined by about 5 million tons per year in 2007-2008. Since then, the output has basically kept growing. However, it may have reached a plateau in 2017, with major cement producers complaining of market weakness due to Brexit uncertainty.
There is a new perspective to see the rise of Breedon Group, which acquired Lagan Cement in Ireland in April 2018, in addition to Tarmac's Dunbar Cement Plant and Hanson's investment in a new cement plant in Padeswood. Ireland's Ecocem opened an import station in Hillness in June 2017, and recently opened a slag grinding plant across the English Channel in Dunkirk.
The Breedon Group's strategy to cross the impending UK-EU border seems sensible. Heidelberg, Hanson's parent company, has also blamed Brexit for the uncertainty in the UK market, reusing a Spanish plant. The rise of Ecocem also shows that small mills and traders, with their smaller and more flexible operations, are better able to adapt to the current environment than clinker producers. Tarmac purchased the grinding stations from the Spanish company Cemengal, which is known for producing modular, movable grinding stations.
There is uncertainty about Brexit, but Brexit-bashing cannot last forever. Once the situation is clear, the construction industry can focus on pressing issues. One is the lack of domestic housing supply in Britain, and one possible solution is to develop a new national planning policy. The Government completed discussions on the National Planning Policy Framework (NFFP) in May 2018. The Minerals Association (MPA) has spoken out over concerns that the proposed changes will weaken the minerals planning system and threaten production of aggregates and other minerals. It argues that guaranteeing the mineral products necessary for construction requires "an effective and efficient mineral planning system, with up-to-date plans, a well-resourced planning department and sufficient data as prerequisites, as well as appropriate capacity to ensure that the system is planned, monitored and managed." Critics may point out that our work can only go forward if the NPPF is perfected, and of course the MPA process has always played an important role.
The organizers said that the number of exhibitors participating in trade fairs like Hillhead increased by 10% compared with 2016, which can be considered a positive indicator.