InSite Bite May 2017

MAY 2017

SPRING UPGRADE

InSite BITE

that market, our Danish parent company has committed to a multimillion pound investment in our Borough Green factory.

This upgrade has been in planning for over two years already. We are working with specialist project managers and specialist equipment manufacturers to ensure the accurate planning and execution of every detail.

This outside expertise, combined with the unparalleled experience of our in-house team is the best possible assurance of a successful project delivery.

Fuel Ash – Upgrades and the Continuity of Block Supply H+H MD Calum Forsyth gives the real story behind the scares.

Over recent months we have been seeing an increasing number of rumours circulating throughout the building industry relating to the supply of aircrete blocks and particularly to the supply of H+H aircrete blocks.

The short way to respond to these rumours is as follows: No, we are not facing an immediate problem with the supply of fuel ash.

Yes we are planning an upgrade to our Borough Green factory. Yes, all of our customers will continue to receive their full allocation of blocks throughout 2017 and I think it’s important to state that our three factories are producing their highest volume since 2003.

The much publicised shortage of fuel ash caused all aircrete manufacturers some difficulties in 2015 and at the start of 2016. There is less fresh fuel ash available owing to the reduced operation of coal-fired power stations and this is a situation that is likely to continue.

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However, there are plentiful supplies of stockpiled fuel ash and H+H is able to use this material as a substitute.

We have supply agreements for this material going forward for years to come. The tightened supply of fresh fuel ash is not causing us a production problem.

It is, of course, true that the supply of our aircrete blocks is not unlimited.

As ever, we deal with our chosen customer partners and agree supply terms. This system is essential for us to be able to match production with sales – particularly so now as we have been building our stocks since before Christmas 2016 in preparation for a long-overdue upgrade to our Borough Green manufacturing facility.

Celcon Blocks have been manufactured at Borough Green since the mid-1990’s and twenty years is a long time to run machinery of this type. In what I consider to be a fantastic vote of confidence in the UK housebuilding market and in the long term future of aircrete as an essential component in

While our project management team focus on the engineering work, our production team is focused on building stocks. This stock building is planned so that we can be absolutely sure that we will deliver the continuity of supply essential for our customers as the work is executed at Borough Green in the first quarter of 2018.

Every stage of this project has been planned, to the final point in April 2018 when the rejuvenated plant takes its place as the most modern and efficient aircrete block plant in Europe.

We are very clear as to our destination and are a long way through the journey to reach it. We are equally clear about the need to keep our customers fully informed of our progress at every step.

Should competitors or other outsiders choose to tell a different story we can’t stop them, but H+H will keep updating its customers with honest and accurate information as it always has.

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Client Relationships and Stock Management - A Sensitive Issue H+H Sales Director Matthew Carter considers the single most important aspect of the Borough Green project.

Nine months away from the start of works at Borough Green our focus is on ensuring consistent supply of blocks to our customers.

It is no secret that aircrete blocks are in strong demand currently and that our factories are increasing their productivity all the time. It’s a unique market currently, so much so that we could clear our yards in a matter of weeks, as demand is very high.

for customers over the next year, allowing us to work with the production teams to make sure we build sufficient stock to ensure supply continues uninterrupted this year and throughout next year.

Over the coming months there will be an ongoing, honest, exchange of information with the customers and we will be making sure to share our progress reports about the upgrade with them, for the full duration of the project.

An interesting thought but only a thought; H+H has built its reputation on its customer service and customer loyalty. We work hard to be a trusted partner on whom our customers can rely – and that means that our number one priority is to make sure that those customers always enjoy a guaranteed, dependable supply of blocks. Hence the huge build-up of stock that began towards the end of last year, which will continue this year.

We are consulting with our customers all the time, ensuring we have an accurate picture of their requirements for this year and beyond. Matching our output with a fluctuating market demand is always a balancing act. We focus on a system of product supply phasing for our customer partners that enables the customer and H+H to effectively manage the high and low demand peaks.

This allows everyone to be sure that when we commit to deliver an agreed order, it arrives. The priority for my team is to build an accurate picture of the supply agreements

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