12 May 2006 - TARMAC PLANS TO MAKE MORE OF MORTAR
Tarmac is announcing plans to invest more than £20 million over five years in the strategic development of its national mortar business in a move that will transform the UK mortar market.
PIn the first phase of this investment, Tarmac has invested in the expansion of its Dry Silo Mortar (DSM) business, with the creation of a fifth DSM plant at Colchester Quarry. The company is also investing in the development of a further plant south of the Thames and construction is expected to start next year.
Darren Waters, Tarmac's Mortar Director, commented:
"We believe the scale and pace of our plans to expand our Dry Silo Mortar business, which includes the construction of two new plants, will change the shape of the UK market. These plans underline our commitment to providing customers with a national service, backed by the most comprehensive range of mortar products available from any sole provider.
"We have noted in recent years that just as demand for dry silo mortar has grown, so demand for ready-to-use products has increased. Developers continue to use both products - preferring to use ready-to-use mortar when building first starts on site, before water and power supplies are in place or during the final stages of the build, when space on site is limited.
"For this reason, we are choosing to invest in both areas of our mortar production and distribution business, so we can provide customers with a complete start to finish service."
Tarmac's plans are based on creating new DSM plants close to existing sand reserves and the plant at Colchester shares its site with Stanway Quarry - a working sand and gravel quarry. This strategic co-location means Tarmac can develop a mortar business with a uniquely robust supply chain, ensuring guaranteed supplies to developers around the UK.
Darren Waters comments:
"Owning our own source of sand supplies means we can ensure a regular feed for our dry silo mortar plants and reserves in place to meet our increased production capacity in the future. Customers also benefit because we can offer guaranteed supplies and we can control the colour and workability of the products we provide.
"Each of our dry silo mortar plants is capable of producing between 400 - 800 tonnes a day, or 100,000 - 200,000 tonnes per annum. This flexible production capacity means we can respond to our customers needs wherever and whenever needed."
In addition to the construction of the new dry silo mortar plants, Tarmac's five-year plan to develop its mortar business includes investment in a further 250 mobile silo units so supplies of dry silo mortar can be stored at building sites. Three traditional mortar plants will also be completely rebuilt.
This move to grow Tarmac's presence in the UK mortar market is a significant step for the business, which following its recent restructuring is seeking to capitalise on evolving market opportunities and reinforce its strong product and service offering to the construction industry.
Darren Waters comments:
"Tarmac has a long and established presence in the mortar market - as a traditional provider of ready-to-use product. While much has been done in the last decade to develop our offering to include dry silo mortar, we are now ready and equipped to accelerate our move into this marketplace.
"We have already secured contracts with a number of leading house builders as they seek to take advantage of our unique position as the only supplier to offer a national total mortar solution."
Ends
For further information please contact Christine Smart, Rebecca Cowley or Delia Elcock at IAS SMARTS on 0121 456 3199 or email: christine.smart@iassmarts.com.
