News

Two of the UK's biggest cement producers are looking to slash the number of drivers on their books as they attempt to cope with a double-digit fall in demand this year. Castle Cement is consulting with its drivers over plans to cut its 250-strong fleet by 15% and rival Cemex is looking to cut a similar percentage from its logistics workforce.

Demand for cement has fallen by 15% year-on-year on the back of a slump in the construction industry. Castle Cement, a division of construction products  supplier Hanson, says that the fall means it needs to cut spare capacity from its fleet.

The firm expects the review to be completed by the end of this month and is consulting with drivers to minimise compulsory redundancies. A spokesman adds: "What we are trying to do is right-size everything for what we predict the market is going to be in 2009. We don't want to go back and chop bits out - we are aiming for stability."

The cuts will fall across three Castle Cement production sites in Ketton, Rutland Clitheroe, Lancashire and Padeswood, Clwyd, and will affect both bulk tanker and curtainsider drivers. A Cemex statement says it has also been hit by the downturn and wants to cut 15% of its cement drivers across six sites the consultation will be completed by the end of October.

Castle Cement's parent company, Hanson, is also suffering from the downturn, although with 90% of its transport in the aggregates and ready-mix concrete sectors franchised out, it has  not had to make any redundancies in this area. It also contracts out the majority of its brick haulage - a market that has seen an even faster rate of decline than cement, with demand falling by 30% year-on-year.

Fellow construction products manufacturer Tarmac is in a similar position with the majority of its business contracted out. In a statement, it says: "Many of our hauliers are experiencing a reduced workload and as a result we are reducing our overall fleet capacity."