Exclusive extracts from this 70-page-long report:
- Who are the key players?
The cement industry is capital intensive and the construction of a new production line can represent more than two years of full capacity sales. As a result, the sector has witnessed growing concentration since the 1970s. In recent times, consolidation has further increased with the merger of Lafarge and Holcim, and also Heidelberg and Italcementi, all ranked among the industry's top players in terms of annual production capacity. However, the industry remains highly fragmented in emerging markets, particularly in India and China where multinational corporations compete with national and regional cement producers. [...]
Groups analysed in this report include: CRH, LafargeHolcim, HeidelbergCement, Cemex, Siam Cement, Anhui Conch, Taiheiyo Cement, UltraTech Cement, Votorantim Cimentos and Dangote.
- What are the players' strategies?
CRH has been moving forward with its withdrawal from a number of non-core markets following years of acquisitions. Over 2000-17, the group acquired over 650 small and large companies. However, due to the global downturn in construction, CRH has had to write-off the value of a number of acquisitions. This has resulted in its plan to ditch underperforming operations and funnel investments into growth businesses. In 2017, CRH disposed of its Americas Distribution assets, among others. […]
- What are the players' key growth and profitability drivers?
Cemex's net sales grew 13.9% yoy in 2016, owing to improved pricing in most markets where it conducts operations. However, cement sales volumes were flat yoy, while ready-mix concrete sales volumes dropped slightly. With the exception of S&C America, where revenue rose by 5.4%, all regions posted double-digit yoy revenue growth in 2016.