Dublin, July 22, 2024 (GLOBE NEWSWIRE) -- The "Australia Cement Industry Market Size & Forecast by Value and Volume Across 50+ Market Segments for Cement Products, Distribution Channel, Market Share, Import - Export, End Markets - Databook Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The cement industry in Australia is expected to grow by 3.2% on an annual basis to reach US$ 1.89 billion in 2024.
The Australian cement market is expected to record steady growth over the medium term. With the growth opportunities at offering, global firms are acquiring domestic cement producers to further strengthen their operations in the Australian market. CRH, the Ireland-based global building materials solutions provider, acquired Australian firm Adbri in February 2024.
Saint-Gobain and Belgium-based Etex are other global firms that are expanding their footprint in the Australian market through acquisition deals. While the market is expected to record steady growth over the medium to long-term perspective, the rising import of cement can threaten energy and housing construction projects in the short term.
Global building material firms are acquiring Australian cement producers to strengthen their position in the market
CRH, the Ireland-based global building materials solutions provider, acquired Australian firm Adbri in February 2024. The deal is in partnership with Barro Group, which already controlled 43% of Adbri at the time of the acquisition announcement. CRH, notably, also held 4.6% in the firm and post-acquisition has a 57% stake in Adbri. The firm acquired around 53% stake in Adbri for A$1.1 billion.
- Adbri is one of the leading building materials firms in Australia. The firm has more than 200 plants and facilities across the nation. The acquisition will enable CRH to further expand its presence in the Australian market, where the firm has been operational for 15 years.
- The acquisition comes after Saint-Gobain agreed to acquire all outstanding shares of CSR in February 2024. CSR is another Australian manufacturer and supplier of building products, including cement. With this deal, Saint-Gobain is also seeking to strengthen its position in the Australian construction industry over the next few years.
- Belgium-based Etex, in October 2023, also announced that the firm is acquiring Australian firm BGC to expand its activities in the attractive Australian market. As part of the deal, Etex is acquiring BGC's plasterboard and fiber cement businesses. These acquisition deals are expected to further drive the competitive landscape in the Australian market over the medium term.
Cement shortage might threaten housing and clean energy projects in the Australian market in 2024
The construction industry has been struggling significantly over the last two years in Australia. Several big firms, in the sector, have announced liquidation due to higher construction material prices. This trend is expected to continue further over the medium term in the Australian market. This is due to the further increase in building materials, including cement prices. Notably, cement import has been on a steady rise over the last few years.
Several cement plants have been closed over the last decade. This also includes 10 lime kilns. There are currently only five cement plants in Australia, which are operated by three Australian firms. The rise in local production shortage is, therefore, expected to result in higher imports of cement and clinker over the medium term. The shortage in the domestic market will subsequently lead to higher prices, thereby affecting the construction industry as a whole.
While the building materials prices have eased in 2023, prices of cement and plaster products increased during the 12-month period. Rising transportation costs have added to the rise in cement price increase. If the trend persists, the surge in cement prices is expected to have a negative impact on the energy and housing construction projects in Australia in 2024. It is, therefore, crucial that the federal government reviews the cement manufacturing capabilities to ensure there is enough available to keep building essential construction projects over the medium term.
Federal government investment enables Cement Australia to upgrade its Railton facility in 2024
Cement Australia, is one of the main beneficiaries of the Federal government investment in Australia. The A$52 million investment, that the firm received from the Federal government, will enable it to improve its Railton facility in Tasmania.
The firm has announced to upgrade its kiln to use alternative fuel sources rather than coal when producing cement and clinker. This will result into lower carbon emissions at its century-old facility. The project will enable the firm to supply lower embodied concrete to commercial and infrastructure applications across the nation. Another firm receiving funding is the cement plant in Port Adelaide owned by Adbri, which has been allocated A$50 million to lower its emissions. This investment, from the Federal government, will aid the decarbonization efforts of the cement industry in Australia over the medium term.
The medium to long term growth story in Australia remains intact. The cement industry in Australia is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 3.3% during 2024-2028. The cement output in Australia is expected to increase from US$ 1.83 billion in 2023 to reach US$ 2.14 billion by 2028.
This market intelligence report provides a detailed view of market opportunities in the cement industry. With over 50+ KPIs, covering construction markets, distribution channel, end-user, and products in Australia, this databook offering primarily provides data-centric analysis with charts and tables.
Key Features
- Cement Market Dynamics: Provides a comprehensive data-centric view of size and structure, industry dynamics, and cement opportunities in the various end-user segments.
- Distribution Channel: Provides an in-depth analysis of cement distribution channel across products at country level in value terms.
- Cement Products: Provides demand analysis of market by 4 key segments: Portland Cement, Blended Cement, Specialty Cement, and Green Cement. This segment also includes in depth analysis of further sub-segments of 8 cement product types.
Report Scope
This databook offering provides a detailed data-centric analysis of the cement industry, covering market opportunity, and industry dynamics by cement products and end-user, construction market and distribution channel.
In addition, it also provides market size of the cement products and its demand analysis in Australia. With over 50+ KPIs at the country level, this report provides comprehensive understanding of market dynamics at a more granular level.
Australia Cement Outlook: 10-year market size & forecast in value and volume
Australia Cement Outlook by product type: 10-year market size & forecast in value and volume
- Portland cement
- Blended Cement
- Portland Cement
- Specialty Cement
- Green Cement
Australia Cement Market by type of Portland Cement, 2019-2028
- Type IS (X), Portland-Slag Cement
- Type IP (X), Portland-Pozzolan Cement
- Type IL (X), Portland-Limestone Cement
- Type IT, Ternary Blended Cement
Australia Cement Market by type of Specialty Cement, 2019-2028
- Rapid Hardening Cement
- High Alumina Cement
- White Cement
- Sulphate Resistant Cement
- Others
Australia Cement Market by Key Markets, 2019-2028
- Residential Buildings
- Non-Residential Buildings
- Infrastructure & Other Markets
Australia Cement Market by Distribution Channel, 2019-2028
- Direct Channel
- Indirect Channel
Australia Cement Market by End-User, 2019-2028
- Ready-Mix Concrete Producers
- Consumers
- Concrete Product Manufacturers
- Other End Users
Australia Cement Market Share by Key Players, 2023
Australia Cement Market Top Import Destinations, 2023
Australia Cement Market Top Export Destinations, 2023
For more information about this report visit https://www.researchandmarkets.com/r/t8whnl
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