Construction
aggregates trading group GRS* has acquired 50% of Devon-based
secondary materials producer Ocean Blocks and Aggregates Ltd.
The
deal strengthens GRS’s ability to serve the construction industry
in the South West and boosts the firm’s capacity to supply
sustainable secondary aggregates into the South East using its
established rail and marine freight network to achieve the lowest
carbon footprint.
The
transaction also opens up new local markets for Ocean which has
access to millions of tonnes of granite arising as a by-product of
Imerys' china clay mining operation at Lee Moor near Plymouth. Ocean
has a new on-site processing plant that washes and grades the
material to produce high quality bagged aggregates for the building
trade as well as using the product to make concrete blocks for
housebuilders in the area.
Ocean’s
directors Andrew Lakeman, son Edward and Leigh Genge will remain on
the Board along with directors from GRS. Under the new partnership
Ocean will work closely with the
teams at Maen Karne and GRS to
supply the material locally and nationally.
Jon
Fisher, Chief Executive of GRS, said: “Our new partnership with
Ocean is a great addition to our portfolio. It gives us a
complementary presence in Devon and Cornwall and opens up
opportunities to supply premium secondary aggregates to housing and
infrastructure projects across the country, easing the pressure on
primary aggregates. Better still, GRS shares the same ethos as Ocean
and we are looking forward to
working with the founders and the whole team to
support their growth as an independent business, both locally and
nationally.”
Leigh
Genge said: “We have worked alongside GRS for a number of years and
they are a great fit for our business. GRS already has established
supply chain networks to efficiently transport our secondary
aggregates from Lee Moor to major construction markets. Coming
together also means we can continue to grow our business with the
agility and entrepreneurial spirit of an independent operator. We’re
looking forward to promoting the use of high quality materials that
would otherwise be a waste product to make the most of the country’s
natural resources and reduce net carbon emissions.”
Through
its South West subsidiary Maen Karne, GRS already makes good use of
secondary aggregates from the china clay industry to supply the
region’s construction industry. And last year GRS became the first
to move material by sea into Tilbury Docks for processing and onward
distribution to meet the demand for materials London.
Known
for its quality and consistency, granite from china clay mining
(often referred to as ‘stent’) is highly rated by leading
sustainability assessment methods as an alternative to primary
aggregates. Transporting it into London and the South East by rail
and sea freight means it generates a fraction of the carbon of newly
quarried stone.
Britain’s
construction industry uses around 250 million tonnes of aggregates
each year but less than 5% of that currently comes from secondary
sources so GRS sees huge growth potential for the material.
The partnership with Ocean represents the first significant investment for GRS since the firm completed a £60 million refinancing deal with Wells Fargo Capital Finance in April 2023.
