Consumption of ACC (autoclaved cellular concrete) will increase by around 15% this year, a rate that could be doubled by a 10-15% price increase. Under the circumstances, the ACC market is estimated to eventually range between 170-180m euros, according to players in the industry.
Demand for masonry materials peaked last year, leading to the sale of the entire quantity of ACC available on the market. In recent years, to be able to meet market demand, producers within the industry have operated massive investments in order to reach production levels of 300,000-400,000 cubic metres, up around 20-30% against previous years.
In total, ACC production reached 1.9-2 million cubic metres last year, an increase of around 10% year-on-year. Imports account for around 5% of the overall ACC market, which are mainly operated by the German company Xella Porenbeton Holding, while companies in Bulgaria and Hungary make additional imports.
Regarding the progression of ACC prices, market players expect them to increase by around 10-15%, as a result of the price increase for raw materials (cement and lime). The average price per cubic metre of ACC currently stands at around 70 euros, including VAT. Celco Constanta, the biggest company on the market, in the first nine months of 2006, generated a turnover worth 18m euros, up 11% against the same period last year. Celco is also one of the most profitable firms on the market, currently operating a 10m-euro greenfield investment.
Last year’s market growth was strongly reflected in ACC producers’ results. For example, in 2006, Macon Deva, a construction supplies producer, which last year was taken over by Polish investment fund, Enterprise Investors, reached a 30m-euro turnover, up 30% year on year. Macon expects its turnover to hit 38m euros this year, an increase of 25% against last year’s results. The company also intends to invest around 4.5m euros this year.
Construction materials producer, Prefab Bucharest in the first nine months of last year derived a turnover worth 19.7m euros, up 20% against the previous year.
ACC producers’ high profitability caught the attention of investment funds, which are in search of profitable placements on the market. The first to acquire such a manufacturer was Enterprise Investors, which paid around 35m euros for Macon Deva last year. Elpreco Craiova is another ACC producer held by an investment fund. The company, controlled by the US fund Broadhurst, last year operated investments worth 4.5m euros. In 2006, it generated a turnover worth around 39m euros, up approximately 27% against 2005. Elpreco’s ACC sales reached 64.5m RON (18.3m euros) in 2005, 25% higher year on year.
Another important ACC producer, Simcor SA, budgeted a 52m-euro turnover last year, up around 15% against the previous year, while Prefabricate Vest finalised investments worth some 12m euros last year.
ACC market
ACC consumption will increase by around 15% this year, a rate that may double due to a 10-15% price increase
The market is likely to total around 170-180m euros this year
ACC producers have operated massive investments in recent years in order to reach production levels of 300,000-400,000 cubic metres, up around 20-30% against the previous years
ACC overall production hit 1.9-2m cubic metres last year, up about 10% against the previous year