{"id":520625,"date":"2025-05-26T12:45:44","date_gmt":"2025-05-26T11:45:44","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=520625"},"modified":"2025-06-04T11:16:53","modified_gmt":"2025-06-04T10:16:53","slug":"goldbeck-seeks-to-apply-german-lessons","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/sections\/long-reads\/interviews\/goldbeck-seeks-to-apply-german-lessons-26-05-2025\/","title":{"rendered":"Goldbeck seeks to apply German lessons"},"content":{"rendered":"

The UK subsidiary of a German contractor is awaiting the arrival of its first licence-produced concrete products, enabling it to serve clients with domestically made materials instead of having to import them from mainland Europe.<\/span><\/p>\n

\"\"

Craig Davies. Credit: Goldbeck<\/p><\/div>\n

In late February, the business signed a licensing deal with precast concrete manufacturer Oranmore, with production due to begin in July. The first precast elements manufactured under licence will go into a multistorey car park in Wigan. \u201cWe\u2019ll start introducing other products as time goes on,\u201d says Goldbeck\u2019s UK-based managing director, Craig Davies.<\/span><\/p>\n

Goldbeck has fitted out a carousel production line at the Oranmore factory near Retford, Nottinghamshire, capable of turning out 65,000 square metres of precast in its first year and 80,000 square metres in its second.<\/span><\/p>\n

\u201cWe\u2019ve committed a significant amount of money into this process,\u201d says Davies. \u201cIt\u2019s been a two-year journey.\u201d Whereas Goldbeck owns 15 factories outright in Europe, this was its first licensing agreement \u2013 and the firm wants to roll out the method to more countries on the continent.<\/span><\/p>\n

He believes the deal with Oranmore will benefit the environment and save money in the long run. \u201cAt the moment, a lot of our product is coming from Germany, the Czech Republic and Poland, so you can imagine the transportation effort and emissions,\u201d he says.<\/span><\/p>\n

A growing business<\/b><\/h3>\n

Davies is eyeing growth from a modest base. The firm turned over \u00a316.8m in 2020\/21 but this doubled to \u00a334.7m the following year before stabilising at \u00a333.6m in 2022\/23. The business almost doubled its revenue again to \u00a365.2m in its latest accounts for the year to 31 March 2024.<\/span><\/p>\n

Goldbeck completed five UK projects in 2023\/24 with six others in progress by the end of March last year. The firm has been active in the UK market for two decades, building up a portfolio of multistorey car parks and logistics jobs.<\/span><\/p>\n

\u201cOver the past 12 months, we\u2019ve grown our logistics and warehousing portfolio,\u201d Davies tells <\/span>Construction News<\/span><\/i>. \u201cWe\u2019ve done a lot of work with Bentley Motors and are now doing a job for them in Crewe. And we\u2019re active with DP World in London Gateway, building sheds for them next to Tilbury docks. We\u2019ve done four jobs for them in the past two years.\u201d<\/span><\/p>\n

As part of its German parent\u2019s regional growth strategy, Goldbeck\u2019s UK business aims to grow by diversifying into commercial and residential projects. \u201cIt takes a lot of management effort \u2013 it’s not easy to enter and grow in a new market,\u201d says Davies, who has been with the firm since 2013.<\/span><\/p>\n

He adds that the company\u2019s senior management structure has become rather \u201cless German\u201d over the past two years, with Davies operating as UK managing director alongside his Germany-based colleague Michael Missfeld.<\/span><\/p>\n

Davies predicts that the drive for diversification should see Goldbeck\u2019s UK revenue reach \u00a380m in 2024\/25 and about \u00a3120m the year after. This would quadruple turnover in a three-year period \u2013 and he says \u201cwe\u2019ve pretty much got that in the order book already\u201d.<\/span><\/p>\n

Profitability is more problematic. The latest accounts show that Goldbeck\u2019s UK business fell further into the red with a pre-tax loss of \u00a34m compared with a loss of \u00a3289,800 the year before. This was partly due to investment in the Oranmore factory and expanding its UK footprint with new offices; Goldbeck has a presence in Birmingham, Runcorn, Cardiff and London. In his strategic report with the latest accounts, Davies said he expects the firm to be \u201cprofitable going forward\u201d.<\/span><\/p>\n

Ongoing projects<\/b><\/h3>\n

Ongoing projects include a<\/span> \u00a378m job in Cardiff, where the firm is working<\/span><\/a>\u00a0to deliver a new headquarters for the Welsh city\u2019s council.<\/span><\/p>\n

Goldbeck is currently engaged in the preconstruction phase but it aims to enter into a development agreement with the council later this summer. The job includes an 11,150 square metre replacement for Cardiff Council\u2019s existing 25,735 square metre headquarters, as part of Area A of the Atlantic Wharf regeneration project.<\/span><\/p>\n

\u201cBuilding will start sometime in early 2026,\u201d says Davies. \u201cAfter the councillors move into the new building, we will demolish the existing County Hall, build a new link road and create plots for development of other structures.\u201d<\/span><\/p>\n

Goldbeck\u2019s construction equity arm, Indigo, is providing finance for its work on Cardiff County Hall, although Davies says he cannot confirm the figure.<\/span><\/p>\n

Concrete for the new County Hall will feature new technology from German firm Sonocrete. It uses ultrasound waves to lower the embodied carbon content in concrete, meaning less cement is needed and the curing process is faster. \u201cWe\u2019re using this technology in our precast batching plant in Hamm, where the concrete for the new County Hall is going to come from,\u201d says Davies.<\/span><\/p>\n

Goldbeck began working on social housing jobs in Germany six years ago using a turnkey design-and-build approach, with the 2D frame manufactured in-house and bathroom pods supplied by a wholly owned subsidiary.<\/span><\/p>\n

\u201cWhat we do in Germany is like a car production line, which means we\u2019re highly scalable,\u201d says Davies, who wants to apply the same methods in the UK for sub-18-metre buildings. This means Goldbeck wouldn\u2019t have to engage with the gateway process for higher-risk buildings, he adds.<\/span><\/p>\n

Asked whether Goldbeck\u2019s plan to expand in the UK is badly timed given the persistently high insolvency rates in the construction sector, Davies answers with a different question.<\/span><\/p>\n

\u201cCan it get worse than the past five years? We\u2019ve gone through Covid, material price rises from the Ukraine war, a recession, and before that we had Brexit to cope with,\u201d he says. \u201cI see more stability now \u2013 material prices are much stabler, and the willingness to build seems to be growing from clients.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The UK subsidiary of a German contractor is awaiting the arrival of its first licence-produced concrete products, enabling it to serve clients with domestically made materials instead of having to import them from mainland Europe. In late February, the business signed a licensing deal with precast concrete manufacturer Oranmore, with production due to begin in …<\/p>\n","protected":false},"author":135716,"featured_media":520637,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[79553,570,559],"tags":[],"class_list":["post-520625","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-features","category-interviews","category-long-reads"],"yoast_head":"\nGoldbeck seeks to apply German lessons | Construction News<\/title>\n<meta name=\"description\" content=\"The UK subsidiary of a German contractor is awaiting the arrival of its first licence-produced concrete products, enabling it to serve clients with\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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