Firm responding to changing market

Lafarge's £1bn-a-year turnover in the UK divides into three parts: aggregates and concrete account for £400m; cement £400m; and gypsum and roofing products £200m.

Worldwide, Lafarge has a £10bn turnover. Its push into the UK is the result of the Redland acquisition in 1997, which gave it a position in aggregates and ready-mixed concrete, followed by the takeover of Blue Circle Cement in 2001.

Dyfrig James is responding to changes in the UK market, particularly to the new Highways Agency procurement system. "It is looking for partners and is putting more emphasis on quality submissions," he said. "It wants to know such things as what your recycling policy is and how you propose taking cost out of the chain.

"With asphalt, we have succeeded in the past five years in forming solid partnering arrangements with Balfour Beatty, Amec and May Gurney. We are reasonably busy in road construction as a result."

Changes in road maintenance contracts have led to Lafarge and Amey forming a joint venture that has won a seven-year contract in Hertfordshire. Lafarge also has a place in the BAA Paving Team at Heathrow together with contractor Amec.

Lafarge recycles 60 million tonnes of materials a year. The main sources are: once-used track ballast; road planings brought back to the asphalt plant; and glass that is ground down before usage as a substitute in asphalt production.