Breedon Group (LSE:BREE), a vertically-integrated construction materials group operating in Great Britain, Ireland and the United States, gave an update on its Back British Cement campaign, launched in January to push for action to secure domestic cement production.
UK cement output has fallen to its lowest level since 1950, while imports, often from countries with weaker climate commitments, now account for more than a third of UK cement sales.
Breedon supplies around two million tonnes of cement annually from its UK and Irish operations, supporting more than 4,000 jobs across 350 sites.
The company has engaged with the Department for Energy Security and Net Zero, the Department for Business and Trade, and the Treasury since launching the campaign, but says clarification is still needed on five fronts: strengthening the UK's carbon border adjustment mechanism ahead of its January 2027 start, aligning UK and EU carbon pricing, including cement in industrial electricity compensation schemes, recognising cement as a strategic material in procurement reform, and accelerating support for low-carbon technologies such as carbon capture.
"We believe domestic cement producers should be allowed to compete fairly with overseas manufacturers, who do not face the same high energy prices and carbon taxes", said Rob Wood, Breedon's chief executive.
Mike Pearce, chief executive of Breedon GB, said reliance on imported cement would accelerate without action on industrial electricity costs and carbon frameworks, while government procurement of British cement could support jobs and communities.
News Intelligence what this means for the company
Breedon is pressing the government for five specific policy clarifications to support domestic cement production—carbon border adjustment mechanism design, carbon pricing alignment with the EU, industrial electricity compensation, strategic material procurement recognition, and low-carbon technology support. The company launched this campaign in January citing a 75-year low in UK cement output and imports now exceeding one-third of UK cement sales; Breedon itself supplies around two million tonnes annually from UK and Irish operations. The update signals ongoing engagement with three government departments but no concrete policy wins yet, leaving the competitive position of the company's cement business dependent on future regulatory decisions.
This is a lobbying update, not a business development announcement. Breedon's cement margin and volume outlook remain hostage to government policy decisions that have not yet materialized; the company is signaling material risk to its domestic cement franchise if energy costs and carbon frameworks do not shift in its favour. No operational or financial impact is disclosed in this statement.
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