Domestic cement market expected to top 600m euros

The cement market, one of the most dynamic sectors within the constructions industry, is expected to expand by around 15% this year in terms of volume, helped by a 4-5% price hike.
As a result, the value of the cement market could reach around 600 million euros this year, boosted by private sector investments.
The constructions market achieved a record high growth rate last year, around 20%, the most dynamic growth registered since 1990. The ballooning demand for construction materials generated growth on the cement market, with producers having to make massive investments in their production facilities.
Cement producers are expected to double their production capacities in the next 3 to 4 years, according to Carpatcement Holding representatives.
Holcim Romania announced investments worth 86 million euros this year, in the development of environmental protection, in the modernisation of production lines, in building concrete and aggregate-mixing stations, and in the development of logistical spaces.
According to Philippe Questiaux, the general manager of Lafarge Cement, the cement market is poised to witness a growth of around 15-20% this year, with the company having the necessary resources to sustain this rate.
Lafarge continues to carry out its investment programme, worth approximately 100 million euros, throughout the 2006-2012 period, in order to increase productivity and improve service quality and comply with the EU environmental protection requirements. The total investments operated by the three companies on the cement market exceeded 1 billion euros last year. Overall, the cement market increased by 26% last year, double the projected rate, reaching 7.7 million tonnes, with the market growth rate expected to remain at a level of 15% this year.
At present, cement consumption in Romania stands at 334 kg per capita, while the average consumption in other EU countries is of 538 kg per capita. Cement consumption is estimated to rise to 385 kg per capita in 2007 on private sector growth. The residential sector is now one of the most dynamic segments on the constructions market, with its potential being driven by the shortage of houses in Romania.
The cement segment is divided between 3 major players HeidelbergCement (Germany), Lafarge (France), Holcim (Switzerland), each controlling a third of the market.
In 2006 cement plants operated almost non-stop in order to meet market demand, which did not allow the producers to make necessary annual repairs.
“The constructions market will see an annual growth of around 12-15% in the next five years. The market is also expected to grow due to the start of major projects involving highways, rehabilitation projects relating to airports and harbours, modernisation works for national, county and communal roads, residential and warehouse works and by projects related to the thermal insulation of existing properties,” stated Mihai Rohan, general manager of Carpatcement Holding.