Padeswood Liaison Committee briefingCement Mill Investment8th May 2017

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Purpose and Introductions

The cement mill investment Why we are making the investment Padeswood Situation Market context and looking to the future

What the investment is Vertical roller mill and associated equipment Rail loading facility

What the benefits of the proposal are Where the mill will be installed When the mill will be installed and commissioned.

Process Planning Application Pre-planning statutory public consultation (of which this is a part)

Permit Variation

Next steps and further consultation

Q&A Session

Agenda

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Brief the Liaison Committee about the investment at Padeswood Works of £20m+ in a new cement mill and rail loading facility

Hanson

Gareth Price - Technical Director, UK

Steve Hall - Plant Manager, Padeswood

Chris Sheady - Project Manager (UK)

David Quick - Operational Support Manager

Purpose, introductions and apologies

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Current situation at Padeswood The clinker production capacity of the modern Kiln 4 is greater than the cement milling capacity Clinker is exported by road to other cement plants in the UK for grinding in to cement. Cement mills installed at Padeswood are old technology. Two are from the 1950s and two are from the 1960s. The two mills from the 1950s are not capable of producing the quality of cement required in major construction – they can

only produce cement for bagged products All of the mills are horizontal ball mills The rail line is not suitable for modern trains and there are no suitable loading facilities

Current market and projected growth The cement sector in the UK has changed dramatically since 2009 The UK still has a vibrant construction sector that has grown by £14bn, 11% since 2010. Strong pipeline of large

infrastructure projects such as the construction of nuclear power stations and high speed rail lines, and the implementation of a comprehensive road investment strategy

Even post Brexit, pessimistic forecasts show modest growth of around 2.5% by 2020 with a total UK market volume of 11.7mt

Hanson UK want to ensure that we have the production capacity to maintain and improve our profitability during this time.

Why we are making the investment.

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Hanson UK strategic decision supported by Heidelberg to invest £20m at Padeswood Works

Installation of a modern, state of the art Vertical Roller Mill for grinding cement The Loesche VRM is in Spain and has become available due to the acquisition of Italcementi The mill is identical to a mill that is already operated by Hanson at its Purfleet site and similar to the currently installed raw

mill and coal mill

Upgrade and refurbishment of the rail line to allow loading of trains and export of cement by train

Demolition and installation of new rail loading silos and facilities

Associated transport for raw materials and finished cement

Mothball three of the existing cement mills

What the investment is

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Secures employment and the long term future of the site Current headcount is now 96 + 5 apprentices

Increased capacity Additional cement using the clinker produced at Padeswood Works

Reduced impact of road traffic by use of the rail link There will be a significant reduction in the export of clinker and hence lorry movements in and out of Padeswood due to the

increased grinding capacity. 30% of the total cement produced is planned for despatch by rail

Increase in energy efficiency with the use of modern technology. Padeswood will be the most energy efficient of Hanson’s cement plants in the UK The modern vertical roller mill consumes approx 30% less electrical energy for every tonne of cement produced

Reduced environmental impact from the site Along with the increased energy efficiency and reduced environmental impact from less road traffic, there will be a

reduction in the number of emission points on site

What the benefits of the investment are

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The site for the installation of the mill lies well within the land boundary of the Works The area for the planning consent (red line boundary) also includes some lay down areas and assembly areas for

construction. This gives an opportunity to tidy up an area of the site that has not been used since 2003

The new mill has a small footprint (60m x 22m) and will be installed next to the raw material bays and the cement silos. Minimises the distance that raw materials, clinker and the finished cement needs to be transported

Has little impact on the rest of the site and minimises disruption

From most vantage points off site there will be little visual impact

The rail silos and rail loading facility will be in place of existing

silos that will be demolished

The mill building and most of the transport systems will be

completely enclosed and the cladding will match that which is

currently on site.

Where the mill will be installed.

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Where the mill will be installed

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The target is to have the mill in operation from the 1st quarter of 2019

Seek to have planning approval by September 2017 – details of the planning and permit process on next slide

Some preparation work will commence in the summer of 2017 Initial preparation work includes the relocation of Great Crested Newts. An ecological survey of the area was carried out

as part of the preparation work and a small GCN population was identified. Hanson have submitted a scope of work to Natural Resource Wales along with an application for a licence to relocate a European Protected Species. Licence application was successful and was granted on the 26th April 17.

If the planning application is successful then preparation and civils work will commence during the second half of 2017

The dismantling of the mill and associated equipment in its current location is starting imminently and this will start to arrive at Padeswood early in 2018

Erection and building work will then progress through 2018

The rail export facility will also be completed during this period, with all of the equipment commissioned and operational by the end of 2019

When the mill and rail export facility will be installed and commissioned

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Planning application process has started with the submission of the screening and scoping document on 6th March 2017. Purpose of the screening and scoping document is to give FCC an understanding of the size and potential impact of the

project and determine whether the application is of sufficient size to require an Environmental Impact Assessment FCC have made their determination and given the current proposed scope their view is that a full environmental impact

assessment is not required. However…

To satisfy and support both the planning application and the application for a variation to the IPC Permit, Hanson are undertaking a suite of impact modelling, including traffic impact, noise impact modelling, plume dispersion modelling, environmental risk assessment etc. all of which will be available with the planning application.

Hanson intend to submit the planning application by mid June 2017 and hope to have a response by the start of September 2017 Prior to the submission of the planning application a 28 day statutory period of pre-application public consultation is

required. This briefing session is the start of the public consultation with you – our key stakeholders in the community

Hanson have been in discussions with NRW and a substantial permit variation is required. This will be submitted at the same time as the formal planning application. The variation is required to operate the mill.

Planning application and Permit variation

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We will hold two public briefing sessions later this month for local residents: Tuesday May 23 - Buckley Library, The Precinct, Buckley 3.30pm to 7pm Wednesday May 24, Penyffordd and Penymynydd British Legion Club, Chester Road, Penyffordd 3.30pm to 7pm

All of the documentation and studies will be made available on the Padeswood web page that is being set up

An Open Door publication will be sent out in early June and this will include a lead article on Mill 5 and will be part of the consultation and communication. The Open Door is distributed to 19,000 local residents

An information leaflet summarising the scheme will be available later this week.

The comments from the consultation will then be reviewed and where necessary they will be addressed in the documentation that is sent with the planning application.

Next Steps and further consultation

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Comments and Questions?

Q&A