C O M P A N Y O V E R V I E W
CEMEX
Builds On its Core Strengths to ensure it Delivers to all Stakeholders Written by: Sheree Hanna Produced by: Glen White
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CEMEX celebrates ‘helping to build a greater Britain’
One of the biggest building material suppliers in the UK has a clear strategy for its future growth and sustainable development which is simply to be the BEST
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uilding materials’ company CEMEX has a vision to become the best for all of its stakeholders and has a strategy in place aimed at delivering just that. In the UK CEMEX supplies concrete, cement and aggregates, as well as asphalt, building products and mortar. Its Paving Solutions business specialises in constructing roads using both asphalt and cementitious materials. The business generates £775 million in annual sales, employs a total of 3,000 people in the UK and is part of the global group CEMEX which is headquartered in Mexico. CEMEX gained its foothold in the UK when it acquired RMC in 2005. Lex Russell is Vice-President of Aggregates
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and Asphalt in the UK responsible for 1,040 employees serving in the region of 2,000 customers and currently producing some 20 million tonnes of aggregates and 2 million tones of asphalt a year. The recent economic crisis and continuing tough economic climate has had an impact on the UK business with the decline in the construction industry meaning less demand for CEMEX products. “Times have been very hard for us. In 2007 we were selling 26 million tonnes of aggregates, but that dropped by around 30 percent; but now we are starting to climb back up with current sales of 20 million tonnes,� explained Russell.
Lex Russell is VicePresident of Aggregates and Asphalt in the UK
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30% Amount estimated it is currently undervaluing its products
A question of costs CEMEX is also striving to reduce operating costs in order to improve its returns. In a bid to counteract the economic conditions CEMEX has placed a strong focus on continuous improvement and its quest of becoming the most efficient aggregates operator in the industry, but estimates it is currently undervaluing its products by 30 percent in the market. Russell said: “The last couple of years we have been concentrating on reducing our costs, but it is getting to the point where we need to increase our selling price in order to recover our costs and be able to invest in the future. We are committed to giving our customers the best quality products with the best customer service. We strive to create value for our customers. But this can
Roller compacted concrete, the latest solution for roads and highways 6
FINNING SECURE HISTORIC INTEGRATED CONTRACT WITH CEMEX
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inning the UK and Ireland Caterpillar® dealer has combined with CEMEX to form the UK’s first integrated equipment management contract at its Dove Holes limestone quarry in Buxton. The eight year,
£11m agreement sees Finning and CEMEX working together with Caterpillar and Cat Finance to deliver a whole site solution, incorporating the latest equipment, technology and quarry management expertise.
This new approach is designed to deliver long-term, shareholder value from the biggest CEMEX quarry site in the UK. CEMEX VP, Lex Russell believes the model is a first- not just for CEMEX but the industry as a whole, stating: “It breaks a traditional mould and allows us to move the business forward with a clear competitive edge. “By undertaking a true partnership with Finning and Cat Finance; two businesses that we have worked with for many years, we were able to realise existing asset value, whilst developing a highly productive mobile fleet Proven Analytical Solution The Finning Managed Solutions team carried out 18 months worth of extensive analysis of the Dove Holes operation. By combining the latest Caterpillar technology with the on-the-ground experience of the CEMEX site team, Finning were able to develop a managed solution that would deliver key improvements to the site. These included £1.4m of fuel savings, a 15% increase in production and a
10% reduction in machine operating hours, in addition to practical changes to the layout of the site. A key part of the delivery of these improvements is the ongoing performance management and optimisation of new and used equipment onsite, which will see the overall fleet reduced in size by 6%. Additional Fleet Support In addition to the main deal, Finning also provided four Cat 775D’s from its own
fms@finning.co.uk
fleet, which were on site six months before the seven new Cat 775G’s arrived. Mick Knight, Business Development Manager for Finning Managed Solutions: “It was important throughout the whole process that CEMEX were able to maintain productivity levels and that the site was fully supported. With the new fleet recently delivered to site, the work really starts now, as we will be providing a fully managed solution for all of the equipment onsite.” Using the latest communications technology, fitted to new and existing equipment, the whole fleet will be monitored by Finsight engineers. This team will liaise with onsite engineers to manage the preventative maintenance and repair programme of all Cat and competitor machinery, ensuring contractual uptime targets and efficiency gains are achieved.
www.finning.co.uk/fms
In addition to equipment health, the Finsight team provides CEMEX with daily reports on productivity levels and machine performance, including cycle times, payloads, fuel usage and operator performance. This will ensure the CEMEX team onsite will be running one of the UK’s most fuel efficient and productive quarry operations. No Stone Unturned Neil Farmer, Aggregates Director added: “With this project we wanted to really push the boundaries of site efficiency and performance, with a fresh set of eyes analysing the overall operation and not just the equipment. We have left no stone unturned in this process and by committing to a long-term contract with Finning, we are able to challenge them to enhance performance throughout the contract period.
Energy & Cost Saving Solutions
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ayley Group Plc are a key supplier to the Cemex Group, looking after their MRO, Inventory Management and energy cost saving solutions. One of the biggest challenges facing businesses today is remaining competitive when energy and other costs are rising. Investment in Drivetrain related improvements offer one of the most effective solutions to this problem with fast returns. Hayley offer the complete Drivetrain with products being offered separately or as a complete integrated turnkey solution bespoke for its customer’s applications.
Gearboxes & Electric Motors
Hayley are unique in stocking the Siemens FZG industrial gearbox range in various sizes, which can be built on a 2-day lead-time. These products are stocked at its 25,000 sq. ft. engineering facility, which also offers the refurbishment and repair of any type and size of industrial gearboxes. Completing the Drivetrain Hayley can provide advice and support on a range of Variable Speed Drive applications including energy savings and optimising process control.
We also stock both IE2 and IE3 Electric Motors up to 315kw with off the shelf availability, as well as Geared Motors up to 37kw input power, again, available to be built to meet customer requirements on very short lead times.
Pumps & Dewatering
One of the issues in all quarries is keeping them dry. Pumps are therefore a major part of this process. There are several methods being used, most of which are very expensive and inefficient to run. Hayley Group has brought new pump technology into the industry to drastically reduce cost and save energy. This has also enabled Cemex to adopt a Best Practice for pump replacement through its RMC sites. The objective was to provide a standardisation, more efficient alternative to the pumps being used. Hayley also stock the pumps so they can offer either a same day or next day replacement service anywhere in the UK.
Smartvend®
Another concern that faces many customers is the amount of inventory carried in order to lessen downtime as well as 24/7 access to health and safety products for their workforce. Hayley Group Plc have identified a solution that can reduce the inventory, transaction costs, downtime costs and the supply of health and safety products.
This solution is the introduction of Smartvend®, a simple, affordable, industrial vending machine programme that provides a lean, controlled flow of products to the point of use. This technology enables customers to monitor and track usage of product, allowing a reduction in inventory and the ability to manage assets and access health and safety products 24/7.
The machines are Internet appliances and do not need expensive and complicated software installed, this means they are easy to install and maintain, both done by trained Hayley staff. Customers who have taken onboard the Smartvend® solution have enjoyed benefits such as reduced consumption by 25% or more, immediate product availability, asset control and automated ordering. This has added to the success of Hayley Group Plc in increasing its offer to Cemex and the marketplace through inventory management solutions.
For more information please contact your local Hayley branch
0121 504 4292
marketing@hayley-group.co.uk
www.hayley-group.co.uk
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only be achieved by investment in reserves and modern production plant and equipment for the future.” To this end, the award-winning company has launched initiatives aimed at improving standards in just about everything it does. It has five major stakeholder groups where the company is primarily focused, namely: families, customers, employees, communities and shareholders. Best for families Families, referring to CEMEX’s workforce, is a particular area of pride for the company. “Being the best for families is about health and safety and the wellbeing of our people and ensuring everyone goes home safely each night,” Russell said. “Work related incidents are without a doubt
SUPPLIER PROFILE
“The award recognised our strong performance in health and safety including the initiatives we have launched and the culture we have established in the business” – Lex Russell, Vice-President of Aggregates and Asphalt in the UK
HAYLEY GROUP PLC
Industry: MRO Solutions Provider Services: Provider of engineering and maintenance products. Total inventory management and energy efficiency solutions, offering best practice. Management: Lee Willitts and Bernie Noakes Website: www.hayley-group.co.uk
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If it can go by rail we will find the way. For more information please contact: Tel | 01302 575338 Email | sales.rail.uk@dbschenker.com
www.rail.dbschenker.co.uk
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preventable; our aim is to achieve zero lost time to injuries and we are confident that this can be achieved.” Probably the highlight of last year was winning the MPA Health & Safety Award, the John Crabbe Memorial trophy for outstanding excellence in health and safety. “It was a very proud moment for me when our Country President, Jesus Gonzalez, went forward to accept this trophy on behalf of CEMEX UK,” said Russell. “We have won many awards in the past, but I think this award recognised the progress that we have made and our strong performance in health and safety including the initiatives we have launched and the culture we have established in the business.”
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Current holders of the John Crabbe Memorial trophy, the industry’s most prestigious health and safety award
DB SCHENKER RAIL LTD
DB Schenker Rail (UK) Ltd is an established major provider of a range of rail services in Britain. We are backed with commitment to expand, enhance and grow our services. For commitment and good quality, welcome to DB Schenker. Website: www.rail.dbschenker.co.uk
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SOUTH EAST ARC WELDING COMPANY LIMITED
Providing mechanical engineering solutions for a diverse range of clients and industries. We offer a partnership approach to all our customers, working in collaboration to gain an understanding of the needs of their business and providing the best possible service and workmanship to meet the exacting standards we aim to achieve for all our clients. www.southeastarc.com enquiries@southeastarc.co.uk +44 (0) 1474 355245
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Each year the company runs its own health and safety workshops which every employee is encouraged to attend, along with the Health and Safety Executive (HSE), competitors, customers and contractors. The most recent campaign was the most comprehensive training programme undertaken so far, with a focus on educating employees to take responsibility not only for themselves but for colleagues, contractors and visitors and also not walking past and ignoring unsafe practices or potential hazards, but acting on them. Russell said: “The programme consisted of 17 day-sessions and involved theatre-style presentations with actors imitating unsafe practices within the workplace, starting with a situation as the attendees walked in to the event.
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“The programme consisted of 17 day-sessions and involved theatrestyle presentations with actors imitating unsafe practices within the workplace, starting with a situation as the attendees walked in to the event” – Lex Russell
SOUTH EAST ARC WELDING
Our facilities include two fabricating workshops and one fitting & turning workshop. There is ample storage space in our yard which, together with our offices, covers a total of more than three-quaters-ofan-acre. Both fabricating workshops are fully equipped and operate independently. Each comprises: 10 Ton Overhead Crane • 3m Guillotine • 250 Ton Brake Press • Set of Rolls • Asquith 4’-6” Radial Drill • Band Saw • Welding and Cutting equipment • Air Cooled Plasma Cutting Machine • (capable of cutting stainless steel, aluminium, and hardfaced materials of up to 25mm thick). Website: www.southeastarc.com
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Exchanging Places held with London
It provided a great starting point and made for really strong interactive sessions.”
Metropolitan police to educate cyclists about the dangers around large vehicles
“We have been doing a lot of work to make our own vehicles safer by fitting additional safety features” – Lex Russell 16
Comprehensive network CEMEX operates a comprehensive national supply network to ensure that quality materials and services are available to customers locally, and maintains a significant logistics fleet of aggregate tippers, cement tankers and concrete mixers. Safety on the roads is a big issue and one that is taken very seriously by the company, in particular making sure its drivers are aware of vulnerable road users such as cyclists. Russell said: “We have been doing a lot of work to make our own vehicles safer by fitting additional safety features such as mirrors,
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Cyclist in the cab of a Cemex vehicle learning about what the driver can see
proximity sensors and cameras, as well as working alongside the police and cycling groups to educate cyclists about the potential dangers around large vehicles.” Best for customers The aggregates business supplies all the major construction companies and many smaller businesses throughout the UK, and Russell is keen to point out that after health and safety it is the firm’s number one priority. He said: “Customer service has gone through a transformation as it is something we are all very passionate about improving. The customer service promise issued to all our customers underpins our aims. Firstly it says that ‘if we can’t deal with your enquiry immediately, then we will
Cemex UK leads the sector in cyclist safety
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24 The customer service team responds to any enquiry within 24 hours
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get back to you within 24 hours latest.’ This is not just about responsiveness, it’s about the manner in which we respond and understanding our customers’ requirements. “One hundred percent of our products meet or exceed relevant quality standards: we continually invest in developing our services and solutions to deliver optimum performance. If our quality checks highlight any deviations we will contact our customers in advance. “We always aim to deliver within the agreed timeframe – and if there is a problem we will call you. We realise how important on-time deliveries are to our customers, we set ourselves high targets but when issues occur then timely communication is key. “One hundred percent of issues or complaints will be dealt with within 24 hours. Of course, nobody wants problems but when they occur we try to resolve them swiftly, accurately and comprehensively.” The company measures its customer service performance weekly and it is discussed at all levels in the business. “If you can’t measure it you can’t manage it,” said Russell. “Every Monday the UK management team meet with our Country President to discuss how we have performed in the previous week and what we need to do to improve going forward.” To ensure customer service is part of CEMEX DNA, there are some 200 advocates
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I NEVER MADE A SPLASH WITH THE SWIMMING TEAM… I always got the butterflies. Fortunately I’m never out of my depth when it comes to dealing with your enquiries. At CEMEX we understand that your needs are different, can change, and the unexpected can happen. It’s our job to be responsive and flexible, making sure that everything runs smoothly and that no one’s left floundering. We’ll do everything we can, and at a stroke, to keep Britain building. It’s what we do, day-in day-out. It’s our passion. Team CEMEX. First for customer service. www.cemex.co.uk
HELPING TO BUILD A GREATER BRITAIN
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Providing HV/LV Electrical Power Engineering Solutions nationwide, supplying to the Rail, Manufacturing, Utilities and Petrochemical industries. ISS Ltd are a HV/LV Power Engineering company operating nationwide, undertaking Turnkey Electrical Distribution Projects and Site Service activities, including installation, commissioning, pre-commissioning, final commissioning, HV/LV switching, maintenance, repairs, refurbishment of HV/LV AC & DC Switchgear, Power transformers, SCADA systems, control panels, HV/LV cabling and associated ancillary equipment. We manufacture low and high voltage switchgear, protection cubicles, LV generator changeover panels, marshalling cabinets and bespoke protection and control equipment.
www.iss-services.co.uk Tel: 0161 344 1117
Industrial Switchgear Services Ltd
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CEMEX
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taken from all different levels of the business who meet regularly to identify ways of making improvements, implementing them and ensuring they are passed on to every employee. “Everyone in the company serves a ‘customer’; they may be internal colleagues but we should all offer the same standard of high customer service,” Russell explained. Best for employees CEMEX employs a wide variety of skills including electrical and mechanical engineers, geologists, quarry managers, commercial sales specialists and drivers. Many of those loyal workers have been with the company for years, but that in itself has posed something of a challenge for the company where the average age of an employee is now 48 years old, which is reflective of the industry as a whole.
‘CEMEX employs a wide variety of skills including electrical and mechanical engineers, geologists, quarry managers, commercial sales specialists and drivers’
Cemex is working with the RSPB to increase the biodiversity on its sites
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Cecil Roberts and Callum McPhilips 2014 Leaders in Development with Jesus Gonzalez, CEMEX UK Country President
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September 2014
“It is great that we have that kind of loyalty and engagement however we do need to attract younger people into CEMEX as well as developing the talents of our younger colleagues,” said Russell. The recently introduced Leaders in Development programme seeks out talent from within and puts candidates through a year’s training which enables them to experience all areas of the business, after which they are offered a position within the company.” CEMEX had an impressive 18,000 training interventions last year, amounting to an average of six training sessions per employee. The
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Gravesend training
company aims to train and develop all staff, with Operational Managers and Supervisors taught the principles of continuous improvement. Every commercial employee experiences the CEMEX Commercial Academy, fostering industry knowledge and a desire to always build on success. “It is important that we have sales people who understand the true value of our products and can effectively communicate this to our customers. All of our operators are trained to a level of competence and we are about to commence our weighbridge development program,” said Russell.
‘The Leaders in Development programme seeks out talent from within and puts candidates through a year’s training... to experience all areas of the business’
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Recording an Early Neolithic house. Cemex has spent ÂŁ10m on archaelogical digs at its Kingsmead Quarry resulting in finds of national significance
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Visitor Centre, Attenborough Nature Reserve
Being the best for communities With some 56 quarries located around the UK, CEMEX plays a leading role in working closely with the communities and environments that it operates in. “We do a lot of excellent quarry restorations; when we have finished operating quarries the finished site is restored to a better environment than when we started,” said Russell. The company has created many bio-diverse environments including a nature reserve in Nottinghamshire which has been endorsed by broadcaster and naturalist David Attenborough and won many awards. CEMEX Rugeley Quarry was the first ever winner of the Natural England Biodiversity Award for its restoration and creation of 80 hectares of wildlife habitat at the site The Company’s ‘Lend a Hand’ Project also
David Attenborough, English broadcaster and naturalist
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Cemex UK’s largest quarry, Dove Holes in Derbyshire
£10m Amount spent on archaeology unearthing important historical artefacts at one of its quarries 26
encourages employees to roll up their sleeves and get involved with their own communities in myriad charitable projects. Senior management have also recently been involved in cleaning up in the community of Ferriby that was devasted by flood damage. Prior to this they visited a children’s hospice and carried out building and maintenance work All these valuable experiences not only positively support the local communities, but provide a good team building experience for staff. Best for shareholders Last, but by no means least of the stakeholders, is the shareholders, who Russell says deserve to reap the benefits of their patience. “The truth is that we do not give them an acceptable return on
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their investment,” he said. “The UK aggregates industry is essential to the economy and our way of life. Our products are what builds roads, houses, schools and hospitals and are essential in the construction of generating facilities for energy and management of water. We need to have a sustainable aggregates industry to safeguard this valuable resource for future generations.” CEMEX spends millions of pounds on all manner of things such as £10m on archaeology unearthing important historical artefacts and £150,000 on protecting a newt colony. Planning fees alone were £1.5million last year just to maintain their current reserves. The cost of restoration is frightening on an annual basis. Russell explained CEMEX’s strategy to become more profitable: “We have analysed every one of our quarries in the UK and we know where our prices need to be to achieve our full cost recovery,” he said. “We have a price roadmap in place setting out where we need to be and how we will get there. “The geology of the UK dictates that not all areas or quarries are the same, but generally we are under valuing our product by around 30 percent. I have been in this industry for nearly 30 years and I feel responsible, but I am fully committed in the coming years to supporting our customers, ensuring their competitiveness, and ultimately achieving prices which will allow us to sustain and grow our business.”
Company Information INDUSTRY
Construction HEADQUARTERS
United Kingdom FOUNDED
1906 EMPLOYEES
3,000 (UK) REVENUE
£775 million sales PRODUCTS/ SERVICES
Aggregates, Cement, Concrete, Mortar products, Asphalt, Landscaping products, Rail products, Masonry products, Admixtures
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CEMEX Coldharbour Lane, Thorpe, Egham, Surrey Tel. 01932 568833 / Fax. 01932 568933 www.CEMEX.co.uk