9
26th April 2022
Price inflation on GGBS / CEM1 due to fuel increases, and supply chain
have confirmed this week no raw materials are being sourced from
Ukraine, Russia or Belarus.
Supply Chain Discussions Complete: Rates noted above remain, total
cost Impact (uplift) circa £2m! during the period of end of 2021 to end
of 2022.
Update 6th April 2022 Plasterboard: We have been advised of significant plasterboard price
increases due to the intensive manufacturing process and impact of
fuel increases of range between circa 9 to 26% (from Knauf, British
Gypsum, Etex).
Update 12th April 2022 Plasterboard: A number of sub-contractors have advised both major
manufacturers BG and Knauf have a potential that the %increase first
notified a week ago may not be at the level quoted. A strong push
back from clients has been a key factor suggesting an element of the
increase was opportunistic rather than directly related to increased
costs.
Exposure to the Russian Market
• Very few UK firms trade in Russian/Ukraine. The majority of those that do are professional services firms
- including some relatively small ones. Most of these projects are small scale.
• The company with the highest level of exposure yet identified is JCB. It exports US c$40-50m pa of
equipment to Russia, mostly manufactured in the UK, and has c100 staff based in dealerships and its
repair and maintenance business. Ukraine, Belarus and the central Asian republics are also markets for
the firm, which are likely to be disrupted by the conflict.
Shareholdings
• Currently only one firm in the UK has been identified as Russian-owned, Superglass
(https://www.superglass.co.uk/), which produces glass-wool insulation. It has a Russian parent
(Techno-NICOL, which produces roofing, waterproofing and insulation materials). Techno-NICOL also
supplies Wonder-builds (roofing contractor), and there are reports that it owns Chesterfelt (also roofing
products).
Update 6th April 2022 Insulation (Superglass): Superglass have announced two annual
increases. The first is in May 2022 = 13% and the second is in July 2022 =
32%.
• It is highly likely that there is a level of directly/indirectly Russian investment in both firms and projects
(e.g. Everton stadium)