Encouraging European construction equipment sales

The recent publication of new encouraging sales figures from the European construction equipment manufacturers’ association, 7836 CECE, was perfectly timed, coming as it did the month before 432 INTERMAT 2015. Many visitors to and exhibitors at the 20-25 April event in Paris, France, the world’s biggest construction equipment show globally this calendar year, will have read about the 9% rise in European sales in 2014 compared to 2013. The CECE Economic Report noted that after North America, the European construction equipment market had been the next most dynamic in 2014. The influential trade association also believe the prospects for a sustained sales recovery in 2015 are also bright. Given this backdrop of an improving European sales market, the atmosphere at this year’s INTERMAT show is likely to be good, with the abundance of new model launches and European show debuts taking place heightening industry excitement.

Given that this issue of Aggregates Business International coincides with INTERMAT 2015, it’s fitting that our latest Market Report looks at the current state and future growth potential of the French aggregates industry. In addition, the ABE Quarry Profile looks at how 445 McCloskey International’s crushing and screening range is playing a key role in the continuing success of a family-run quarrying business near Vichy, central France.

460 Sandvik Construction is among world leading crushing and screening equipment manufacturers looking to tap into construction equipment sales growth in regions such as Europe and North America. In January 2015 I saw first-hand the Swedish firm’s impressive production facilities in Ballygawley, Northern Ireland, now home to Sandvik mobile crushing and screening range production after last year’s transfer from its site in Swadlincote, county Derbyshire, England. In this issue’s Interview, we hear from Eugene Lyons, global sales and marketing director for Sandvik Mobile Crushers and Screens, about Sandvik’s investment in its mobile range and opportunities for sales growth.

Like us, those paying close attention to the latest developments in the proposed merger of cement sector giants 680 Holcim and 725 Lafarge will be gripped by the latest twist in the tale, with Holcim’s Board of Directors rejecting their prospective French partner’s merger terms. The deal that would have created the world’s biggest cement company with an annual €42 billion revenue is now in limbo as Holcim’s Board of Directors look to improve the current one-to-one share exchange ratio that was to give both companies’ shareholders equal weight in the merged firm. Basing their late change of heart on the deal on the divergence of values of the two companies over the past 12 months, Holcim is also looking for a change in the management of the new merged company. Lafarge says whilst it is willing to renegotiate the share exchange ratio, it will not hold fresh talks on the previously agreed management setup. 723 CRH, the Irish construction materials group, will be among the keenest to hear of both companies’ next moves having
recently reached agreement to acquire €6.5 billion of assets being sold by Lafarge and Holcim as part of the original merger deal.

A sign of better economic times for the European quarrying sector, at least in the UK, can be found in news that a proposed 20 acre expansion of 7235 Lafarge Tarmac’s Mountsorrel granite quarry in county Leicestershire, England has been approved by Leicestershire county councillors.

Lafarge Tarmac Aggregate will now be allowed to extract stone from land next to the firm's present operation, despite strong concerns being expressed by residents and environmental groups. The delivery of this ambitious yet not uncontentious project will make for interesting viewing.