Cemex UK confirms that it will not be bringing its cement plant at Barrington, Cambridgeshire back into production, but is moving to a phased demolition of the facility.

Originally mothballed in November 2008, Cemex UK has concluded there is no economic case to re-start production.

Commenting on the decision, Jesus Gonzalez, president Cemex UK operations said: "Regrettably we have come to the irreversible decision that Barrington Cement plant will not be bought back into production. This is due to the very challenging economic environment we are currently experiencing in the UK, with a declining domestic market and spare capacity in the rest of our operations elsewhere in Europe."

In addition there have been significant increases in manufacturing costs due to electricity market reforms and additional UK only carbon taxes. Therefore there is no sound business case for future investment in Barrington plant.

The first phase of the demolition will begin shortly. Cemex UK will continue to meet its obligations including restoration commitments.