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Update 9th June 2022 Re-Negotiation Period in preparation of Agreement fixed price end
period (End. Of Dec. 22) to commence from September 22.
Other Products
• Timber: OSB and other sheet and particle board, and 25% of resins used to produce plywood are
manufactured in Russia. Most of these products go to the European market rather than the UK, but if
supplies are restricted, customers in Europe will seek alternatives and compete with UK customers for
Baltic and Scandinavian timber products. Russia also exports softwood timber, and birchwood used
for cable drums. Laing O'Rourke are engaging our suppliers (The Timber Group) and Timber
Federation (ETTF) to mitigate further risk on supply of timber products (sanctions and movement of
goods).
Update 5th April 2022 Timber: FSC (Forest Stewardship Council) have advised "because of the
association of the forest sector in Russia and Belarus with armed
invasion, no FSC-Certified material or controlled wood from these
countries will be permitted to be traded". This could have a cost
implication which is currently unknown. Procurement to monitor this
situation.
• Ceramics: Soil material and natural gas account for 40% to 42% of the total production cost in the
ceramics industry. As a soil material, Ukrainian clay is at the top of global demand, while Russia is the
main supplier of gas to the world market. Clay imports from Ukraine have stopped because of the
ongoing war and gas prices are also expected to rise on the domestic market owing to a record hike
on the international market.
• Drainage: Clay products from Naylor, 50% increase in prices driven by limited gas supply and the
subsequent increase in manufacturing energy prices have been formally issued (10.3.2022) Laing
O'Rourke.
Update 5th April 2022 Drainage:
• Wrekin are increasing their drainage product by 15% from the
1st of May.
• Polypipe have indicated similar increases to Wrekin (official
comms to follow).
Update 7th April 2022 Cable Trays & ladders, Trunkings etc.: Atkore (Unistrut) have outlined
price increases from 18.4.22 ranging from 12.5 to 25% on cable tray &
ladders, trunkings, accessories.
Update 5th April 2022 Insulation (Kingspan): Kingspan have withdrawn operations from
Russian, which accounts for less than 1% of their global operations.
Insulation (Rockwool - FirePro): 5% increase from July 22
Insulation (Rockwool - General): 15% increase from July 22
Update 1st July 2022 Insulation (Celotex and Ecotherm): 10% increases noted from both
manufacturers for September 22.
Update 6th April 2022
Concrete: Further to the January increases (circa) £11.00 per m3 supply
chain are imposing further increases in April of Circa £13 per m3. Note:
Everton scenario with Tarmac (pricing error by Tarmac) being discussed
separately to mitigate potential £20m3 increase.