Cement usage climbs to 275-300 kg per capita

The cement market last year surged by 30% in terms of value, reaching an approximate 400 million euros, according to market estimates.

Market growth was made possible because cement consumption last year advanced by about 10%, and the average price rose to around 60-65 euros per tonne, from the 50-52 euros average of the previous years.

Rising utilities tariffs were the main factor behind the increase in cement prices.

Floods that hit Romania last year boosted cement and construction materials orders.

Due to the floods, cement producers had difficulties in covering demand for July-September 2005.

Cement consumption in Romania last year stood at about 275-300 kg per capita, up from 225 kg in 2003 and from 256 kg registered in 2004, according to some market information.

The cement market last year amounted to some 6.1 million tonnes of cement, up 10%. A similar pace of growth is forecast for 2006, as well.

The market is divided among three major global cement producers: Lafarge (France), HeidelbergCement (Germany) and Holcim (Switzerland).

Lafarge Romcim owns three plants in Medgidia, Hoghiz, Targu Jiu, while Germany”s HeidelbergCement has plants in Fieni, Bicaz, Deva. The Swiss own plants in Campulung, Alesd and Turda.

In 2005, the biggest player, Lafarge Romcim, posted a 10% growth in turnover to about 640 million RON (176 million euros), according to the company”s representatives.

Lafarge Romcim annually exports one million tonnes of cement, accounting for approximately 30% of the total volume of production.

Holcim Romania last year derived from all its three units-concrete, aggregates and cement, profit worth around 33 million euros, amid turnover standing at 166 million euros, 27% higher from 2004.

With a similar net margin as Lafarge Romcim and Carpatcement, it would mean that the net cumulated profits of the three major cement producers amounted to about 100 million euros in 2005.

In 2004, the value of the next profits registered by the three players exceeded 80 million euros, in line with data provided by the Ministry of Public Finances.

Carpatcement Holding hit turnover worth 194 million euros, up 22% from the previous year.

The three cement producers operating in Romania, Holcim, Lafarge and Carpatcement, were one year ago forced by the Competition Council to pay a fine of 28.5 million euros, the biggest fine in the history of the competition authorities, for having acted together to set cement sale prices. catalin.lupoaie@zf.ro