Breedon Share Price (BREE)

Hi Londoner7,
Yes i have a very modest holding, close to 15000 shares. It is part of my "bricks and cement" portfolio, which also includes very modest holdings in FORTERRA and MICHELMERSH. I will reply to your posts on ENQ hopefully by tomorrow. Last few days have been very busy work-wise.
ATB

Hi Shareluck, interesting to hear you work for Breedon. I note from your history that you don't post often. This isn't a busy board, tends to come alive at updates, but I hope you stick around to add your informed knowledge of the industry. I've been an investor in Breedon for over six years during which, I think I've built up a good top level view of the business, and have found their IR dept very helpful in filling in some of the blanks.

Interesting to hear your comment on the Ferribly plant. Breedon were very excited to acquire the Hope plant (very close to Ferribly) and associated rail hubs. The big boys were forced into releasing the Hope plant a few years earlier following a merger and this was a comment made by the Competition Commission at the time, '“We note that the Hope plant is among those with the lowest unit production costs, and that its railconnected depots contribute to relatively low distribution costs.” I also recall that one of the challenges in operating these facilities is maintaining / replacing a local, and aging workforce. So to mothball a plant with the loss of local staff is a huge step to take. I'd have thought that if there was a prospect of Breedon taking on the facility discussions would already have taken place - perhaps, which may be your point, Breedon step in before the mothballing actually takes effect.

I know these kilns are run at maximum capacity, so removing one from the local supply chain is significant. I note that the Cemex acquisition includes a cement terminal in Leith, Scotland, which adds to cement terminals at Newcastle and Dundee, which came with the Sherburn acquisition in 2016.

At times it sounds like a big game of logistics. I'm invested here in the belief that Breedon management are good at the game.

Thanks Londoner, interesting to see if Breedon try and tag the Ferriby plant on to the acquisition? I work for Breedon in the concrete business, and Ferriby would be a good fit for the plants we have, along with the ones we are getting in the deal.... Though I have heard they are only mothballing the plant not closing it completely, so it may not be up for sale.....

Shareluck, thanks for the added detail.

Your post prompted me to look into the number of cement plants in the UK. This link shows the number and location of the kiln sites - 12 becomes 11.

https://www.bing.com/images/search?view=detailV2&ccid=PqND%2fwo2&id=F72A9DDFD22C3C4D95FA31EEEA7F1B1199DB7018&thid=OIP.PqND_wo2ew5N4u_T0GNQ3AHaKP&mediaurl=http%3a%2f%2fcement.mineralproducts.org%2fimages%2fCement_Manufacturers_Maps_2017.jpg&exph=1107&expw=800&q=cement+plants+in+UK&simid=608053401847990027&selectedIndex=0&ajaxhist=0

Evening Londoner, if you look at the Cemex concrete plant acquisitions that Breedon are taking on, they are mainly in the North East and all the way down the East coast. These would have been supplied from the Ferriby cement terminal. With these plants now coming across to Breedon, Breedon would supply these with its own cement. I can see why Cemex have made this decision, as they can supply the remaining concrete plants in the area from the Rugby cement plant.