1st Global Cement and Concrete Conferrence and Exhibition 2010
2-3 February, Riyadh, Saudi Arabia
Image gallery for the Global Cement Arabia Conference 2010
View the presentations given at this conference
The first Global Cement and Concrete Conference took place in Riyadh, Saudi Arabia, on 2-3 February 2010, with the involvement of practically all the cement producers in the Kingdom of Saudi Arabia, and delegates from a total of 22 countries. Around 220 delegates registered to attend the event, as well as 30 international exhibitors. 24 papers were presented over the two days of the conference. The second Global Cement and Concrete Conference in Saudi Arabia will take place in March 2011, in Jeddah.
Despite the considerable difficulties involved in making the event happen, the efforts of all those involved paid off when the first-ever international cement and concrete conference and exhibition successfully took place in pleasant February temperatures in Riyadh, fast-developing capital of the Kingdom of Saudi Arabia, at the international-standard 5-star Sheraton Hotel. Altogether around 220 delegates attended the meeting, many more than were forecast, including participants from practically all cement-producing companies in Saudi Arabia, as well as representatives from the co-sponsor of the meeting, Saudi ReadyMix, one of the leading concrete companies in the country. As well as Saudi Arabia, there were delegates from the following countries: Austria, Bahrain, Belgium, China, Cyprus, Denmark, Egypt, Germany, India, Iran, Italy, Jordan, Kuwait, Netherlands, Oman, Qatar, Sweden, Switzerland, UAE, the UK and the USA.
The conference featured five main sessions, designed to address important areas of interest in the cement industry in the Arabian peninsula. The sessions were market developments; production advances; concrete and mortars; alternative fuels and the environment; and material handling. A total of 24 papers were given over the two days of the conference.
One of the highlights of the conference was the keynote presentation given by Mr Fadi Mujahed of Saudi ReadyMix, on the current status and likely future trends in the cement and concrete industries of Saudi Arabia. Mr Mujahed started by pointing out that Saudi Arabia has the largest population of any country in the GCC, 28 million, the largest economy (nearly double the total of all other GCC countries combined) and very large reserves of oil, effectively under-pinning the economy. Furthermore, Saudi Arabia is set to build one million housing units over the next five years, as well as hospitals, clinics, railways, power stations, desalination plants and waterworks, universities and schools and many other cement- and concrete-intensive infrastructure projects. Around 30Mt of cement was used in 2008, but nearly 37Mt was used in 2009 and cement consumption will probably top more than 45Mt in 2010.
Cement and concrete demand is concentrated in Saudi Arabia's major cities, including Riyadh, Jeddah, Makkah (Mecca), Dammam, Yanbu, Najran, Tabuk, Jizan, Hofuf and Al-Kohbar. Public expenditure is the largest driver of cement demand, largely for infrastructure and major development and diversification projects, and Mr Mujahed suggested that (even though some projects are currently on hold) the private sector needs to regain its confidence and to take up a larger part of the economy and of cement and concrete demand. Despite the huge demands for cement and concrete, there is still fierce competition, according to Mr Mujahed, between cement and concrete companies. Although there are no central records, it is estimated that there are currently over 350 ready-mixed concrete companies operating in Saudi Arabia, operating in the absence of national standards.
Very many new 'mega-projects' have been announced, with price-tags ranging from US$2bn-27bn, and likely to require in the region of 190Mm3 of concrete, and with construction times ranging from 2-20 years. The projects are in a variety of sectors – not just in real-estate – including mining, petrochemicals, ports and logistics and transportation, and are expected to account for around 10Mt of cement demand annually for the next five years at least. In addition to these projects, six massive new 'economic cities' are currently being built, costing up to US$30bn each. Cement and concrete consumption is mainly concentrated in the centre and east of the country, but with Jeddah also taking significant quantities.
Fadi Mujahed mentioned the forecast over-supply of cement, which is expected to amount to 12-17Mt/year, despite the huge tonnages of cement demand being forecast. An export drive is widely expected, as well as vertical integration in the industry, alongside possible mergers and acquisitions. Among many market developments is the mounting need for very high-strength (>80MPa) concrete for use in high-rise buildings. Although Jeddah's 'Mile-High' Tower has now been scaled back to a building of 'only'1000m, this would still be the world's tallest building by a long way.
The end of the first day of the conference was marked with a pleasant conference dinner by the air-conditioned pool-side in the Sheraton Hotel. Food at the conference and exhibition was uniformly excellent, with a delicious choice of 'western' and local dishes.
Throughout the conference, the exhibition area was extremely busy. The compact and atmospheric exhibition, with 30 international companies covering every aspect of the cement industry, heard voices from many countries and was always noisy with the sound of business. Many cosy meetings and deals took place in the corridors and alcoves surrounding the exhibition area. Feedback from exhibitors was extremely positive, with all participants declaring that they would return for the next event in Saudi Arabia in 2011.
At the very end of the conference, a number of prizes were awarded. Najran Cement won the award for the best exhibition stand, showing off its new cement plant, having used the opportunity of the exhibition to attract new concrete-industry customers from Saudi Arabia and beyond. The wide range of interests represented at the conference was reflected in the fact that all papers at the conference received votes for the 'best presentation' awards. However, in third place, with an interesting paper on how cement companies are increasingly having to pay premiums for other companies to take project management risks for them, was Piet Herrsche and co-authors from PEG S.A. In second place was the very popular paper by Mr Fadi Mujahed outlined above. However, in first place was the ever-young Karl Haugen of Haugen Systems, who, despite being only two days short of his 65th birthday, gave a dynamic, interesting and useful presentation on the cleaning options now available to cement plants – and how they can rapidly pay for themselves by recovering otherwise 'lost' product.
The feedback from the event was extremely positive, and the organisers are set to repeat the event in 2011, with the addition of further advanced planning, co-operation with local companies and ministries and high-level participation. We look forward to welcoming you to Global Cement and Concrete in Jeddah, Saudi Arabia, in March 2011.
