Holcim has sent a letter to some of its customers announcing a rise in prices of certain products in response to the energy crisis created by the conflict in the Middle East.

The confidential letter, seen by BMN, is co-signed by Niels Bills, Landscape Product Director, and Ben Warren, Building Products Director, and was sent to "individuals with procurement responsiblities". 

After thanking the reader from their "continued partnership and for the trust [they] place in Holcim UK as [their] materials provider", the company informs customers that from 18 March, a surcharge of 5.35% will be applied to all concrete products, although readymix products are excluded from this and may be subject to a separate surcharge.  

Explainding the decision, the letter invoques "the escalating Middle East Energy Crisis", which "has caused an immediate and unprecented surge in global energy and fuel markets". A short list of those increases is then included. 

The letter goes on: "This crisis directly impacts our business through manufacturing energy costs and logistics. The speed and scale of those costs increases have reached a level that we can no longer mitigate internally. To ensure the continuity of supply, we must implement an urgent Energy Crisis Surcharge across all orders, quotes and contracts.

"Whilst there is volability in the costs, we have taken a considered approach to implement a surcharge to reflect the range of prices. If there is a significant change in oil price, we will keep you informed of any further adjustments."

Ian Dean, Managing Director for Concrete Products at Holcim UK, told BMN: "Recent developments in the Middle East have driven sharp increases in the global cost of energy, fuel, and raw materials like bitumen, impacting our direct costs from plant processing to marine and road logistics.

"While we have absorbed these rising input costs for as long as possible, the scale and speed of these external pressures, including higher freight and haulage rates, mean we must implement a transparent surcharge to ensure the continued availability of our products and the safe, sustainable operation of our sites.

"This independent commercial decision is a necessary, data-driven measure to manage the current volatility; the surcharge is designed to be responsive to the market, and we remain committed to adjusting it as these specific global commodity pressures stabilise."