Profitability

Profitability

Washwood Heath Stays In Place To Supply Birmingham PFI

For the past 5 years Washwood Heath Asphalt Plant, in conjunction with CEMEX Paving Solutions has been servicing the requirements of The Birmingham PFI supplying circa 400kt over the contract period for major and minor roads within Britain’s second city.

On 31 May 2015 this commitment came to its conclusion leaving a large void in Washwood’s order bank. Fortunately for the supply element of the asphalt business, independent surfacing contractor, Toppesfield, has become the incumbent contractor for Amey LG who are ultimately working for Birmingham City Council.

Due to a strong relationship with this contractor CEMEX and Washwood Heath are their asphalt supplier of choice. Indicating over the next five years that CEMEX will be supplying 250kt based on 50kt per year this will involve day and night time operations.

Plant Manager, Mark Eley, commented: “This is good news for Washwood Heath and more importantly its people.  We have been heavily involved in the PFI over the past few years and naturally with the ending of the CEMEX Paving Solutions relationship everyone was a little nervous. The news of our involvement with Toppesfield means we can move forward with a degree of confidence.”

Andy Shield, Commercial Manager, stressed the Toppesfield order provides a good attractive commercial offer, base volume for the Washwood Heath plant, something to build on when other opportunities presents itself from a very busy Midlands market.

Area Operations Manager, Jason Barker, added that with the HS2 rail link in the background and the possible need to relocate the operation this order gives an indication of the anticipated volumes over the next few years and help shapes the size of any replacement Plant.

All in all, good times ahead for Washwood Heath.