Aggregate recycling increases to new levels

Nearly 100 new aggregate recycling plants have commenced operation in the last two years, with a further 50 schemes pending planning decisions. These new plants bring the total number operating in 2006 to over 650, with an annual production rate of recycled aggregates exceeding 45 million tones. These are some of the conclusions of a report recently published by BDS Marketing Research Ltd.

The five companies with the largest market shares are all major primary aggregate producers. Lafarge are the leaders in the market, followed closely by Tarmac and CEMEX, and then Aggregate Industries and Hanson. The total market share of the top five operators, however, is less than 20% of the tonnage produced.

The market is still very fragmented and offers minimal barriers to entry, unlike the primary aggregates market. Nearly half of all operators produce 50,000 tonnes a year or less.

Over 30% of recycled aggregates are produced at plants in the South-East. The North-West and East Midlands are the only other regions to account for more than 10% of the market.

It is unlikely that saturation in the market has been reached yet. Fifteen new aggregates recycling plants were consented in the three months to May 2006, while 30 more schemes are pending.

All planning schemes for waste, including recycled aggregate plants, are monitored on a monthly basis by BDS and this information is available on an annual subscription basis.

The landfill tax for inactive waste currently stands at £2/tonne. Landfill site operators, however, have experienced increased incentives to recycle inert waste. The tax credits claimable against annual landfill tax liability increased from 6% to 6.7% in this year’s April Budget. According to National Statistics Office figures, volumes of inert waste incurring landfill tax have fallen by 9% in each of the three years to 2005. The impact of the introduction of the aggregates levy in 2002 is believed to have contributed towards this.

The study, which identifies nearly 500 companies in this sector, operating over 650 plants throughout England, Scotland and Wales, is the largest single directory of sites, operators and volumes currently available.

The full report analyses the market by size, region, company and related activities. It also discusses future prospects and identifies recent planning activity. The directory contains information on site and office addresses, contact names and telephone numbers and details of output volumes within certain bands. The directory also identifies other activities carried out by the operators, including skip hire, landfill and demolition.

Further details are available by contacting Andy Sales at BDS Marketing Research Ltd on tel: (01761) 433035.