Breedon Group extends ABP Newport lease by 15 years

(Posted on 08/09/23)

Associated British Ports has announced the successful renewal of a lease agreement with Breedon Group PLC, the leading vertically integrated construction materials group in Great Britain and Ireland, at the Port of Newport. This significant milestone marks their commitment to providing essential products to the construction sector, while further solidifying their foothold in the region.

The agreement sees the current contract at their Sand and Aggregate Terminal extended by a further 15 years and follows Breedon’s acquisition of Severn Sands Ltd in August 2022.

A family-run marine dredging business, Severn Sands has been a longstanding presence at the Port of Newport since 1994. Severn Sands has long-term licences to dredge 500,000 tonnes of sand a year using its 60-metre suction dredger, the MV Penfret. With estimates suggesting that 17% of the sand and gravel used in England and Wales is supplied by the marine aggregates industry, Breedon is ideally placed to continue growing its business locally and meet the demand for additional housing in the region.

In line with their strategic vision, Breedon has ambitious plans for the future. One of their goals is to increase their market share in South Wales to include the supply of sand dredged via the MV Penfret to their concrete plant based in Roath Dock at ABP’s Port of Cardiff, and to also supply their concrete plant at ABP’s Port of Swansea.

Breedon has further solidified their presence through strategic supply contracts with local and national construction companies, including industry leader Persimmon. With their renewed commitment to the Port of Newport, their recent acquisition and their expansion plans, Breedon is well-positioned to seize opportunities and contribute to the thriving construction landscape in the region.

Helen Thomas, Head of Property, Wales and Short Sea Ports, ABP said, “We’re delighted to see Breedon extend their commitment to ABP’s Port of Newport and also look to grow their presence across ABP’s other ports in South Wales. The Port of Newport is ideally located to support Breedon to meet their customers’ needs with excellent links to the nearby M4 and direct rail connection, and will be vital to helping them fulfil their growth plans.”

Chris Burgess, Regional Land and Mineral Resources Manager, Breedon said, “This renewed lease agreement and our extended presence at the Port of Newport reflects Breedon’s continued support of the construction industry in Wales. Our strategic vision includes expanding our reach across South Wales and further contributing to the region’s growth. We look forward to continuing a successful partnership with ABP.”