Lafarge

We are committed to continuous innovation, seeking breakthroughs across all our operations. Lafarge Cement UK, formerly Blue Circle Industries PLC, became in 2001 the U.K. cement division of French construction materials firm Lafarge S.A. Lafarge Cement is the exclusive manufacturer and marketer of Blue Circle cement, an internationally recognized brand. The company is a major supplier to large-scale construction projects throughout the United Kingdom and the world, with an annual production capacity of more than six million tons. The U.K. cement industry has its roots in the early 1800s. In 1824, Joseph Aspdin, a Leeds bricklayer, patented Portland cement, although others lay claim to its invention. The early years of the U.K. cement industry were characterized by many small producers operating in small, regionally competitive markets. Exports represented a fair proportion of earnings for such firms, many of which operated along the River Thames and River Medway, and shipped cement to Europe in barges. It was a tough industry in these early years, characterized by long hours and a payment-by-results system for its workforce. During the last decade of the 19th century, with U.K. cement manufacturers having enjoyed a lengthy period of little or no foreign competition, they finally began to lose their export markets to domestic production both in Europe and the United States. This situation encouraged a spate of mergers within the industry, notably that between Brooks, Shoobridge and Company and Hilton, Anderson and Company, forming Hilton, Anderson, Brooks and Company. The formation of Associated Portland Cement Manufacturers (APCM) in 1900 was due in large part to the endeavors of Henry Osborne O'Hagan, a financier whose business interests were wide and varied and who principally was involved in share issues and mergers and acquisitions. In this task he was aided by two others, John Bazley White, a cement manufacturer, and his solicitor, H.S. Leonard, whose goal had been to bring about the amalgamation of all the cement manufacturers in the country. Their task was a difficult one, as the competitive nature of most manufacturers prevented them from divulging necessary information to others in the industry. By July 1900, however, contracts had been drawn up for the amalgamation of 27 cement producers. All of the 27 companies except for three were located in the Thames-Medway area. The others were I.C. Johnson and Company of Gateshead; C. Francis, Son and Company of the Isle of Wight; and the Arlesey Lime and Portland Cement Company of Hitchin. Four other producers who refused to join the amalgamation had reached working agreements with the group, and between these 31 producers, more than 80 percent of the country's production was accounted for. The flotation involved an agreement between London's main cement merchants, ensuring that all their requirements were supplied by APCM (this was the first attempt by APCM to exert market influence from its dominant position), and the purchase of 3,697 acres of freehold land and 1,058 acres of leasehold land in areas with raw material deposits and suitable dock and wharf facilities. Also involved was the purchase of railways and rolling stock, plant, and river barges. APCM attempted to impose a higher level of prices in the market, but the builders' merchants, led by George Wragge, reacted by increasing imports until prices assumed their previous levels. These were difficult times for Frederick White, the first chairman, and his 25-strong board of directors. By 1907, in the face of increasing competition in the domestic market, APCM's share of U.K. output had fallen to three-fifths of its 1900 level, and it was struggling to maintain market share in London. The association sought a price agreement in its early years, with O'Hagan once again playing a major role, although many agreements were made and broken as competition and the rapid use of new technology caused prices to fall. I