Following the collation of the Global Cement Directory 2016, Global Cement has once again analysed the world's top 100 cement producers and looks at apparent consumption in different markets. The report is split into two parts: Part A summarises the content of the Global Cement Directory 2016 (available separately) and ranks each of the top 100 cement producers in the world by installed capacity. Part B is an analysis of global cement production capacity trends as a function of population size. Here is presented a preview of Part A, including the top 10 cement producers in 2015 and global production data.
Since the financial crisis in 2008, the global cement industry has undergone major changes. Industry-wide consolidation and increased operational efficiencies have been evident for some years now, most notably in the newly-completed merger of Lafarge and Holcim to form LafargeHolcim, as well as HeidelbergCement's recently-announced planned acquisition of Italcementi.
In the International Monetary Fund's (IMF) October 2015 World Economic Outlook Update, global GDP is expected to grow by 3.1% year-on-year, 0.2% lower than its July 2015 forecast and 0.4% lower than its April 2015 outlook. This follows 3.4% growth in 2014. Recovery has remained modest in the advanced economies, while growth in emerging and developing markets is expected to slow for the fifth consecutive year. The devaluation of the Chinese Renminbi and the weakening of emerging market currencies compared to the US Dollar have also stunted global GDP growth.
In spite of the financial crisis, global cement production has continued to grow, albeit unevenly. In 2014, the latest year for which full data is available from the United States Geological Survey (USGS), global cement production grew to approximately 4.18Bnt, up from 4.08Bnt in 2013 (Figure 1). China and India are by far the largest cement producing countries in the world, followed distantly by the US. China's cement production grew from 2.42Bnt in 2013 to 2.5Bnt in 2014, while India's remained flat at 280Mt. The top 10 cement producing countries in 2014 have changed slightly from 2013; Japan, which produced 58Mt of cement in 2014, was the number 10 cement producing country in 2014, but has now been overtaken by Indonesia, at 60Mt in 2014 (Table 1). Countries with notably large year-on-year increases in cement production in 2014 included Saudi Arabia (10.5%, 63Mt), the US (7.62%, 83.3Mt), Indonesia (7.14%, 60Mt) and Turkey (5.19%, 75Mt).
Rank | Country | 2013 cement production (Mt) | 2014 cement production (Mt) |
1 | China | 2420 | 2500 |
2 | India | 280 | 280 |
3 | USA | 77.4 | 83.3 |
4 | Iran | 72.0 | 75.0 |
5 | Turkey | 71.3 | 75.0 |
6 | Brazil | 70.0 | 72.0 |
7 | Russia | 66.4 | 69.0 |
8 | Saudi Arabia | 57.0 | 63.0 |
9 | Vietnam | 58.0 | 60.0 |
10 | Indonesia | 56.0 | 60.0 |
Above - Table 1: The top 10 cement producing countries in 2014. Source: The USGS Mineral Survey 2015.
According to the Global Cement Directory 2016, there were 2273 active integrated cement plants around the world in 2015 with 3.75Bnt/yr of capacity (Figure 2). Capacity is highly concentrated in Asia, although it is growing in the Middle East and Africa. In December 2014, Guyana got its first integrated cement plant in Everton, Region Six. It has 500,000t/yr of cement production capacity and was established by Caricom Cement Company. Similarly, Ghana got its first integrated cement plant from
Savanna Diamond Cement in Buipe in April 2015. It has 440,000t/yr of cement production capacity.
Global Cement Magazine has compiled a listing of the top 100 cement producers in the world, ranked by the installed capacity of their integrated cement plants (See page 18). This includes white cement plants, but excludes standalone grinding plants, cement plants under construction or in the planning stages, as well as mothballed cement plants. The top 10 global cement producers, as determined from the Global Cement Directory 2016, are shown in Table 2. Alongside this, the top 10 global cement producers, as determined by the producers' websites, is provided in Table 3. The difference between the two sources can be attributed to a number of factors, including different counting methods: Some companies have included grinding plants, while dual-stream white and grey cement plants also present a challenge for capacity calculations. Additionally, many company websites may feature out of date information or lack the required information. The rapidly-changing nature of the cement industry, with frequent alterations to production capacities and ownership status, also rapidly renders much data out-of-date.
Rank | Company | Country | Capacity (Mt/yr) | Plants |
1 | LafargeHolcim | Switzerland | 286.66 | 164 |
2 | Anhui Conch | China | 217.20 | 32 |
3 | CNBM (Sinoma) | China | 176.22 | 94 |
4 | HeidelbergCement | Germany | 121.11 | 79 |
5 | Cemex | Mexico | 87.09 | 56 |
6 | Italcementi | Italy | 76.62 | 60 |
7 | China Resources | China | 71.02 | 19 |
8 | Taiwan Cement | Taiwan | 63.72 | 6 |
9 | Eurocement | Russia | 45.18 | 17 |
10 | Votorantim | Brazil | 45.02 | 41 |
Above - Table 2: Global cement companies 1 - 10 ranked by installed capacity and colour-coded by world region. Source: The Global Cement Directory 2016.
Rank | Company | Country | Capacity (Mt/yr) | Plants |
1 | CNBM (Sinoma) | China | 400.0 | - |
2 | LafargeHolcim | Switzerland | 386.5 | 180 |
3 | Anhui Conch | China | 285.0 | - |
4 | Jidong Development | China | 130.0 | 43 |
5 | HeidelbergCement | Germany | 129.1 | 1021 |
6 | Shanshui (Sunnsy) | China | 100.0 | - |
7 | Cemex | Mexico | 94.0 | 55 |
8 | China Resources | China | 78.3 | 24 |
9 | Taiwan Cement | Taiwan | 69.0 | 23 |
10 | Aditya Birla Group | India | 68.86 | 14 |
Above - Table 3: Global cement companies 1-10 ranked by installed capacity and colour-coded by world region. Source: Annual reports of respective companies and their websites. 1. Integrated cement and grinding plants.
The top 10 cement companies in 2015
In 2015 the top 100 global cement producers had a combined production capacity of 1.26Bnt/yr from 1110 integrated cement plants, according to the Global Cement Directory 2016. The top 10 cement companies had a combined production capacity of 1.19Bnt/yr (Table 2) from 559 cement plants.
Aside from company growth stemming from the new plant construction, acquisitions and upgrades, significant differences from the 'The top 100 global cement companies and past, present and future global cement trends' report, which was published in 2014, exist as more details have become available. Information regarding subsidiaries and precise shareholding arrangements has been provided. Grinding plants, which were previously believed to be integrated plants, have also been removed.
1. LafargeHolcim
LafargeHolcim was the largest cement company in 2015, with 286.66Mt/yr of cement production capacity from 164 cement plants, according to the Global Cement Directory 2016. LafargeHolcim said that it has 386.5Mt/yr of cement production capacity from 180 cement plants on its website.
Given that LafargeHolcim was founded in 2015 from the merger of Lafarge and Holcim, the third and fourth-largest cement producers in 2014, it is not yet possible to comment on its financial results. Additionally, to satisfy competition concerns, a large number of asset divestments, including a US$7.18bn package to Ireland's CRH, were necessary. This means that LafargeHolcim's financials will be very different to its former parents companies. LafargeHolcim states on its website that it has US$33.4bn of sales and an operating profit of US$4.1bn.
2. Anhui Conch
Anhui Conch was the second-largest cement company in 2015 with 32 cement plants and 217.20Mt/yr of cement production capacity, according to the Global Cement Directory 2016. In its 2014 annual report, Anhui Conch said that it had 400Mt/yr of cement capacity from an unspecified number of plants.
Anhui Conch said that China's GDP grew by 7% year-on-year in the first half of 2015, while
cement production fell by 5.3% to 1.08Bnt amid falling prices and profits. During the period, new clinker capacity fell by 40% to 20.9Mt and cement industry investments fell by 12.3% to US$6.79bn. As the year went on, the cement sector became ever-more challenging to operate in. In November 2015 Shanshui Cement (Sunnsy), one of China's top cement
producers, applied for provisional liquidation following a US$314m default on its onshore debt payments. It was at least the sixth Chinese company to default on the local bond market in 2015.
In the first nine months of 2015, Anhui Conch's sales fell by 13.1% year-on-year to US$5.95bn and its net profit fell by 25.3% to US$956m. In the first half of 2015, its cement and clinker sales grew by 1.6% to 115Mt. Although sales revenue fell in all regions of China during the period, its exports and overseas sales grew by 11.2% to US$134m. In the first half of 2015, Anhui Conch built 11 new grinding units and four new clinker lines in China. It also acquired Jiangxi Shengta Group, increasing its cement capacity by 5.4Mt/yr. Internationally, it started or continued projects in Indonesia, Myanmar, Laos and Cambodia.
3. China National Building Materials (CNBM)
China National Building Materials (CNBM) was the third-largest cement producer in 2015, with 94 cement plants and 176.22Mt/yrMt/yr of cement production
capacity, according to Global Cement data. In its 2014 annual report, CNBM claimed that it had 400Mt/yr of cement production capacity. It did not specify its cement plant numbers.
In the first nine months of 2015, CNBM's sales fell by 13% year-on-year to US$12.1bn and its profit fell by 70.7% to US$253m. During the first half of 2015, it produced 111Mt and sold 108Mt of cement in China, where 90% of its cement business operates. CNBM attributed the profit loss to 'a substantial
decrease in price as a result of multiple factors, including significant slow-down in the growth of cement demand and severe overcapacity in the industry.'
In China CNBM operates its cement interests via the following subsidiary companies, each of which has its own subsidiaries:
- China United (100% stake): 101Mt/yr of cement production capacity from more than 30 subsidiaries in Shandong, Jiangsu, Henan, Hebei, Anhui and Sichuan. It produced 21.9Mt and sold 19.9Mt of cement in the first six months of 2015.
- South Cement (80% stake): 148Mt/yr of cement production capacity in Zhejiang, Shanghai, Jiangsu, Anhui, Hunan, Jiangxi and Guangxi. It produced 43.1Mt and sold 42.1Mt of cement in the first half of 2015.
- North Cement (70% stake): 33Mt/yr of cement production capacity , a joint venture with Liaoyuan Jingang Cement and Hony Capital Management. It produced 6.51Mt and sold 6.79Mt of cement in the first six months of 2015.
- Southwest Cement (70% stake): 117Mt/yr of cement production capacity via Chongqing Kehua Group, Sichuan Lisen, Yunnan Simao Jianfeng Cement and Guizhou Taian Cement (70Mt/yr), among others. It produced and sold 39.2Mt of cement in the first half of 2015.
In September 2015 CNBM and Asia Cement made an offer to buy the 62.4% stake of Shanshui Cement that they don't already own. Tianrui (International) Holding Co, which, with a 28.1% stake, is Shanshui Cement's largest shareholder, has said that it will not accept the offer. "We don't think a general offer can solve the problem of Shanshui Cement, it will be useless finally. Tianrui won't accept any general offer," said Tianrui in a statement. This occurred two months before Shanshui Cement's US$314m default.
4. HeidelbergCement
HeidelbergCement was the number four cement company in 2015 with 121.11Mt/yr cement production capacity from 79 cement plants, according to Global Cement data. HeidelbergCement said that it has 129.1Mt/yr of cement production capacity, as well as 102 cement and grinding plants, on its website.
In the first nine months of 2015, HeidelbergCement's sales grew by 8.27% year-on-year to US$10.8bn and its profit grew by 2.72% to US$813m. It also reduced its debt to US$6.4bn. HeidelbergCement's cement and clinker sales fell by 1.1% to 60.6Mt in the first nine months of 2015. Increased sales in Africa, particularly Togo, in North America and in the UK, were outweighed by declines in the Europe, central Asia and Asia Pacific regions. During the period, HeidelbergCement commissioned a new clinker plant in Togo, which helped to increase its already-strong African sales volumes. It also sold its North American (excluding Western Canada) and UK building products business, Hanson Building Products, to Lone Star Funds. Hanson Building Products was later re-branded as Forterra.
In July 2015, HeidelbergCement announced plans to acquire a 45% stake in Italcementi for around US$1.84bn in cash and HeidelbergCement shares. The acquisition, which is expected to close in the first half of 2016, is subject to customary conditions, including approval by the competition authorities. This will be followed by a mandatory public takeover offer to all remaining Italcementi shareholders for some US$4.07bn. As highlighted in "HeidelbergCement acquires Italcementi: Global, regional and national changes," in the September 2015 issue of Global Cement Magazine, the acquisition will expand HeidelbergCement's operations in Mediterranean countries such as Italy and Egypt as well as in France and Belgium. There is a high degree of complementarity in their assets. Of the 43 countries in which they are active, only six (Belgium, Canada, China, India, Kazakhstan and the USA) have both HeidelbergCement and Italcementi capacity. As such, few asset sales are expected to be required by competition authorities. The deal will be paid for in cash and is underwritten by Deutsche Bank and Morgan Stanley. Some of the financing will be repaid through asset sales, although none has yet been announced.
5. Cemex
Cemex was the fifth-largest cement producer in 2015, with 56 cement plants and 87.09Mt/yr of cement production capacity, according to the Global Cement Directory 2016. Cemex states that it has 94Mt/yr of cement production capacity from 55 cement plants.
In the first nine months of 2015, Cemex's sales fell by 7% year-on-year to US$10.7bn and its operating earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 1% to US$1.97bn. Its revenue fell in all regions except the US and Asia, where it grew by 8% and 10% respectively. However, Cemex's cement sales grew by 1% to 49.6Mt. Volume increases were reported in Mexico (4%), the US (1%) and Asia (17%).
During the period, Cemex announced significant asset divestments in Croatia, Austria, Hungary, Bosnia and Herzegovina, Montenegro and Serbia. The main cement assets were 1.66Mt/yr of cement production capacity from three cement plants in Croatia. The deal is expected to be finalised in early 2016 for US$234m. Cemex also completed the construction of the first phase of a new grinding plant in Ciudad Sandino, Nicaragua (Figure 3).
6. Italcementi
Italcementi was the sixth-largest cement producer in 2015 with 60 cement plants and 76.62Mt/yr of cement production capacity, according to Global Cement data. On its website, Italcementi claims to have 60Mt/yr of cement production capacity from 46 cement plants.
In the first nine months of 2015, Italcementi's sales grew by 3.2% year-on-year to US$3.43bn. It reported a US$8.64m loss for the period, improved upon from a US$68m loss in the same period of 2014. Italcementi's cement and clinker sales fell by 1.4% to 32.1Mt, with 1.8% volume growth in North America overshadowed by declines in the Europe (3.2%), Asia (0.1%), North Africa and Middle East (3.8%) regions.
During the period, Italcementi, via its Essroc subsidiary, acquired a 500,000t/yr blast furnace slag grinding plant in Camden, New Jersey, US (Figure 4) and other minor operations from Holcim US. In September 2015, Italcementi sold its 5.24% stake in West China Cement through its Chinese CimFra Limited subsidiary for US$41.6m, subject to further adjustment.
7. China Resources Cement
China Resources Cement was the number seven cement company in 2015 with 71.02Mt/yr of cement production capacity and 19 cement plants. In its 2014 annual report, China Resources Cement claimed that it had 24 integrated cement plants and 78.3Mt/yr of cement production capacity. Through equity interests and joint ventures, it had an additional 10.9Mt/yr of cement capacity.
In the first nine months of 2015, China Resources Cement's sales fell by 15.5% year-on-year to US$2.55bn and its profit fell by 60.6% to US$165m. However, its cement sales grew by 7.53% to 54Mt. Growth was reported in Guangdong, Guangxi, Yunnan and Guizhou, while sales in Fujian, Hainan and Shanxi declined.
8. Taiwan Cement
Taiwan Cement was the eighth-largest cement producer in 2015. It had 63.72Mt/yr of cement production capacity from six cement plants, according to the Global Cement Directory 2016. Via its 2014 annual report, Taiwan Cement claimed that it had 69Mt/yr of cement production capacity.
In 2014, the most recent year for which information is available, Taiwan Cement's sales grew by 6.8% year-on-year to US$2.14bn and its net income grew by 8% to US$309m. Its cement sales were flat at 54Mt, as 4.84% growth to 47.7Mt in China was overshadowed by a 25.9% fall to 6.3Mt in Taiwan.
9. Eurocement
Eurocement was the ninth-largest cement producing company in 2015 with 17 cement plants and 45.18Mt/yr cement production capacity. The company stated on its website that it had 18 cement plants with 50Mt/yr of cement production capacity. Eurocement does not make financial data publicly-available. During 2015, Eurocement continued with its ongoing programme of expansions and upgrades, which will ultimately be completed for all of its cement plants.
10. Votorantim
Votorantim was the number 10 cement producer in 2015. It had 45.02Mt/yr of cement production capacity and 41 cement plants, according to Global Cement data. On its website, Votorantim said that it had 54.4Mt/yr of cement capacity and 34 cement plants.
In the second quarter of 2015, Votorantim's revenue grew by 17% year-on-year to US$2.03bn and its net income grew by 18% to US$158m. Its cement sales fell by 2% to 9.24Mt, while its first half 2015 sales hit 17.2Mt. Cement accounted for 45% of Votorantim's revenue in the second quarter of 2015. The company said that its sales in Brazil suffered from 'the deterioration of the macroeconomic scenario,' although its total sales grew thanks to higher volumes in the US and higher prices in Turkey and Morocco.
In 2015, Votorantim made two major cement plant investments in Brazil. A new 2Mt/yr cement plant was completed in Edealina, Goiás in the second half of 2015, while a new 1.2Mt/yr cement plant in Primavera, Pará is due for completion in the first half of 2016. It also announced that it would triple the production capacity of its cement plant in Sivas, Turkey from 600,000t/yr to 1.8Mt/yr for US$158m. The project is due for completion in April 2017.
This article is an excerpt from 'The top 100 global cement companies in 2015 and global per capita capacity trends.' The report is for purchase for £100GBP on 4 January 2016 via the following link:
www.proids-online.com/products/reports/the-top-100-report
The full report includes:
- Listing of the Top 100 global cement producers, according to the Global Cement Directory 2016;
- Listing of the Top 68 global cement producers, according to producer websites and research;
- Analysis of the financial data and key events of the Top 10 global cement producers in 2015;
- Analysis of global cement production capacity, including grinding capacity, as a function of population size.