Building a green agenda for business

May 17 2008 by Chris Knox, The Journal

ONE of the region’s biggest construction groups is going green after buying two Newcastle businesses to help protect it from the credit crunch.

Esh Group, which has expanded strongly in recent years with large acquisitions, has just snapped up two Newcastle start-up environmental businesses and is now looking at putting wind farms on its new housing developments.

The County Durham group has splashed out on Pure Renewable Energies and The Green Energies as part of its efforts to create a more sustainable business model to help meet Government targets to reduce carbon emissions by 60% by 2050.

It will invest in Pure Renewable Energies which will plan, develop and construct wind farms throughout the UK, and Esh will also pump cash into The Green Energies to develop and supply devices to make houses more energy efficient, such as heat pumps, solar panels and small scale wind turbines.

Although Esh, which has 1,200 staff in 19 businesses, said the acquisitions would do little to bolster its £150m turnover in the short-term, it believes that they will play a major part in its target of reaching £250m by 2013, as the green message gains public support.

Esh chief executive Brian Manning said: “The deals are an important part of our future strategy. Generally speaking, for society and the public, it’s early days for the development, understanding and use of renewable energy and sustainable technologies.

“We firmly believe that’s got to change and we, as a business, are determined to develop our expertise and capability in these areas.”

Both businesses are relatively new, Green Energies started last year and Pure Renewable in 2005, and employ two staff each.

He realises that the extra expense of making houses more environmentally friendly may seem an odd approach to the credit crunch, but believes the move to greener practices will pay dividends in the long run.

“I don’t think people are that short sighted when it comes to the long-term cost benefits of greener homes, with lower fuel bills being a major plus point.

“ I think people are beginning to consider alternative means of cutting down on their bills during this difficult time as well as their responsibility to the environment.

“These purchases are definitely an investment in the future,” he said.

Timeline

1971: Construction firm Lumsden & Carroll formed in Esh Winning, County Durham

1976: Deerness Fencing formed

1993: Both companies combine to form the Esh Partnership

1996: Buys Sones Landscaping in Langley Moor, near Durham

1999: Esh Group formalised

2003: Moves to Bowburn headquarters

2004: Forms land regeneration company Esh Developments

2007: Buys Blyth-based David Wilkinson Building Contractors

2008: Buys Pure Renewable Energies and The Green Energies in Newcastle