- The Asia-Pacific construction materials market had a market value of $862.8 billion in 2021
- Anhui Conch Cement Company, BBMG, Holcim, Semen Indonesia (Persero), and China National Building Material Group were the leading players in the Asia-Pacific market
- Chinese cement manufacturers Anhui Conch Cement and BBMG dominate the Asia-Pacific construction materials market
Competitive Landscape Overview
The Asia-Pacific construction materials market is highly fragmented with many independent local producers in several markets. Additionally, in most markets, large private and public companies compete against each other, some of which are significantly vertically integrated. Therefore, there is intense competition throughout this market which can lead to lower prices and lower sales volumes in some markets, negatively affecting earnings and cash flows. Leading Chinese cement manufacturers dominate this market with Anhui Conch Cement and BBMG among the leading players.
Leading Players
- Anhui Conch Cement Company is the largest construction materials provider based in Wuhu, Anhui, China. It produces and distributes a range of cement and clinker products.
- BBMG is the third largest building materials manufacturer. BBMG produces and distributes cement and modern building materials. Its product portfolio includes furniture, wall body and insulation, decorative and fitting materials and mineral wool acoustic boards, among others.
- The Holcim Group is one of the largest construction materials providers in Asia-Pacific. The company is based in Jona, Switzerland, and is a supplier of cement and aggregates (crushed stone, gravel, and sand). Holcim is engaged in the manufacture, distribution, and marketing of building materials, and also provides ready-mix concrete, asphalt, and other value-added services.
- Semen Indonesia (Persero) is a cement state-owned company and the market leader in Indonesia’s cement sector, with a market share of c. 50% in its domestic market. The company offers various types of cement such as portland cement type I-V, specially blended cement, portland pozzolan cement, Portland composite cement, super masonry cement, brick install mortar, filler mortar, and oil well cement.
- China National Building Material Group is the fourth largest construction materials provider based in Beijing, China, and provides cement, glass, lightweight building materials, glass fibers, intech buildings, composite materials, and refractory materials to the industrial sector.
What strategies do the leading players follow?
In 2018, Holcim introduced “Strategy 2022 – Building for Growth”. To achieve growth, Holcim invested in markets with greater opportunities while being more selective in other markets and executed more aggressive strategies for aggregates and ready-mix Concrete alongside its already strong cement business.
The company continues to invest in the development of new innovative materials continuously expanding the range of smart building solutions to make buildings more energy efficient, resilient, and durable from foundation to rooftop, from new buildings to renovating old ones. However, the company is also able to use its financial power to purchase the company at the forefront of innovation in the construction materials industry.
What are the strengths of leading players?
- Anhui Conch Cement Company possesses a wide range of end markets, which enables the company to gain growth opportunities in emerging markets. It aims to promote innovation and technology innovation to expand its cement business through the adoption of energy conservation and emission reduction and developing a recycling economy. It carries out innovative technology in the new dry-process cement technique, consumption reduction, and application of energy conservation. It also strives to maintain a low-cost advantage in the industry by minimizing coal and energy utilization, improving efficiency, and controlling costs.
- BBMG is focusing on R&D activities to develop high-performance and energy-efficient products. In 2021, the company invested $51.9 million in technology R&D, while it carried out 28 major science and technology projects. Its strong manufacturing capabilities helped to meet the growing demand for its products. BBMG has an annual clinker production capacity of 110 million tons and a cement production capacity of 170 million tons. It has a ready-mix concrete production capacity of 65 million tons annually. It produces aggregates and grinding aids and admixture of 38.5 million tons and 0.3 million tons annually. Moreover, the company has limestone reserves of 1,800 million tons in Beijing, Tianjin and Hebei, China.