Cement Industry is the largest construction material industry. It constitutes about 8% of the world’s overall industrial output. The United States, China, India and Brazil are the top 4 cement producers in the world. All these countries have one thing in common…they are located on major river systems. This facilitates cheap transportation of goods & resources for building materials industries to sell their products across vast geographical area. Most importantly, they are located near to sources of raw minerals which makes it easy for cost effective logistics. I will discuss some best Cement Industries in the World (Top 10) in this blog.
One reason why USA has a leading position is because they were able to store energy during 1970s , courtesy OPEC crisis that led us to switch from Mideast oil in favour of coal based power plants that in turn increased production of steel and as such cement production as well.
But China is catching up fast with America…in fact, it has overtaken USA in both infrastructure and industrial growth. It directly contributes to 60% of the world’s new cement demand! Countries like South Korea and Japan which were traditionally big producers of cement consumed their own production and today they are importing significantly from China.
South Asia is an emerging region for cement industry because unlike developed countries they will need more new buildings for establishing manufacturing base (factories) at lower costs. Infrastructure development like roads, bridges & dams will be a huge stimulus for industrial growth here (India).
The only countries that produce more than the top 5 countries on my list are Saudi Arabia, Iran, Russia and Germany. Saudi Arabia produces 79 million tons of cement annually, nearly 30% more than the next largest producer in China. Saudi Arabia is located along major ancient trade routes in the world which makes it very convenient to transport raw materials for cement making. Most importantly, they are home to vast reserves of oil which means cost effective energy supply to power industry.
The Middle East has historically been a very important source of natural minerals required for cement production. The region that consist of Iran, Iraq and Syria is estimated to contain 1/5th of all proven global oil reserves. The Persian Gulf region alone contains roughly 35% if total world’s oil reserves ˗ this represents nearly 1/3rd of the world’s oil supply! The growth potential for cement industry here is huge.
Russia has the second largest reserves of natural gas and the third largest coal reserves in world. Its close proximity to Europe ensures cheap energy supply which is the key input cost for any industry. The population density of European countries makes it nearly impossible to establish manufacturing based on low-cost labour so they import most of their goods & products from Russia itself which lowers transportation costs as well as ensures lucrative markets for Russian goods. Germany is one country you can rely upon when it’s about infrastructure & technology…
It is an important industry of the world which provides its product to many countries. Cement industries play a vital role in infrastructure growth of any country. With their timely delivery and advanced technology, they are popular among masses.
Best Cement Industries in the World
Following are the list of best cement industries in the world:
CNBM is a Chinese company which deals in building materials including cement and related products to over 120 countries around the world. It has been listed as number 3 among top 10 cement companies around the world by revenue earned from their businesses which is about 26 million US dollars ($26,000,000) for year 2014. It’s headquarter is located at Beijing, China. It has subsidiaries in more than 20 countries around the world. This is one the top cement industries in the world.
Holcim is a Swiss company which is one of the leading producers of cement and aggregates (crushed stone). It operates in over 80 countries worldwide covering each continent except Antarctica through some 150 country subsidiaries and other business enterprises as well as over 380 concrete production sites and quarries worldwide with its own fleet of more than 1,000 cement and raw material transport trucks.
Cemex is a Mexican multinational company which deals in building materials along with its subsidiaries in Central America, Europe and the Caribbean. Its headquarters are located at San Pedro Garza Garcia, near Monterrey, Mexico. It has been ranked as number one company in 2015 list of top cement industries in the world. The net sales revenue received by company was nearly 16 million tons with net profit margin of more than 3 billion dollars.
4. Anhui Conch Cement Company Ltd.
Anhui province is located on eastern region of China next to Shanghai City with its capital city Hefei. Conch Cement Company ltd. has been renamed as Anhui Conch Cement Co., Ltd after the takeover of its controlling stake by another Chinese company HeidelbergCement AG in January, 2008. The annual production capacity reached 56 million tons with 8 million tons of exports from China to other countries. In 2015 it was listed at number 4 among top 10 cement companies around the world. This is also one of the best industries of cement in the world.
5. Nippon Steel & Sumikin Bussan Corporation
Nippon steel and Sumikin bussan are a part of Nippon Steel Corporation which deals in cement, concrete and related construction materials across Japan, Asia and Oceania regions. It is headquartered at Tokyo, Japan with 19 manufacturing plants in eleven locations and one head office in Tokyo and four head offices at regional locations.
LafargeHolcim is a Swiss company formed by the merger of two leading companies Lafarge and Holcim in 2015. It has been listed as number 5 among top 10 cement companies around the world with turnover of nearly 40 million tons.
7. China Resources Cement Holdings Limited
China resources cement holdings limited is a Chinese publicly traded company which operates as holding group for subsidiaries dealing with cement, concrete and ready mix concrete across China. The company chairman is Mr Yang Zhiqiang who is also acting as a president of subsidiary China resources building materials distribution services limited. In 2014 its total revenue received was 25 million tons. In 2015 it was listed as number 6 among top 10 cement companies around the world.
8. Anhui Conch
Anhui conch is a Chinese company which is engaged in the production of cement, concrete and related construction materials with its subsidiary located in Hong Kong. It has been listed at number 7 among top 10 cement companies around the world along with turnover of nearly 35 million tons.
9. The HeidelbergCement Group
HeidelbergCement group is a German multinational company dealing in building materials including cement, aggregates (crushed stone), concrete and ready-mix concrete across Europe, Northern Africa, Asia Pacific, North & South America regions with its subsidiaries in more than 40 countries. Its headquarters are located in Heidelberg, Germany with net sales revenue of 41 million tons in 2014. In 2015 it was listed at number 8 among top 10 cement companies around the world along with turnover of nearly 40 million dollars.
10. Buzzi Unicem SpA
Buzzi unicem is an Italian multinational building materials company which deals in aggregates (crushed stone), cement, and ready-mix concrete and related products across Europe, North & South America, and Asia Pacific regions having subsidiaries in more than 20 countries. It is headquartered at Milan, Italy with its regional office located at Amsterdam, Netherlands. The net sales revenue received by the company is over 28 million tons with operating profit margin of more than 1 billion US dollars ($1,000,000,000).
Northern Africa, Asia Pacific, North & South America regions with its subsidiaries in more than 40 countries. Its headquarters are located in Heidelberg, Germany with net sales revenue of 41 million tons in 2014. In 2015 it was listed at number 8 among top 10 cement companies around the world along with turnover of nearly 40 million dollars.
So, these are some best cement industries in the world.
Why these Companies are too famous?
After telling some top industries of cement in the world i want to discuss why these industries are famous. These companies are famous because they satisfy their customer needs by providing quality products. The companies make use of modern technology for the manufacturing of cement and related construction materials which is not possible by any other company.
The Companies also provide flexible instalment options to its customers for purchase of its products which brings more sales revenue every year. Some of the companies have faced tough times in 2008 due to financial crisis but all are back on track with positive results. This shows their ability to get out from difficult situations successfully.
It may be noted that this list is based on 2015 data, so there might be chance that new entrant would replace some old company in future years if they continue to receive good cash flow, profits and growth rate.
Benefits of to buy Cement from these Companies
The benefits of buying cement and related construction materials from these companies are:
Cement and aggregates (crushed stone) is needed by everyone for their family and commercial use every now and then. Hence we find that most of the population prefers to buy products from top 10 cement companies around the world which keep them regularly supplied with quality products at reasonable prices. This trend has been growing rapidly year after year as more people see value in investing their hard earned money on such reliable brands.
People would obviously like to receive high standard customer service & support which they view as a part of total cost received for purchase of product. So people always prefer those companies who provide good customer care along with quality products. This positive feedback helps each company grow and expand their business.
There is no reason to buy low quality cement and related construction materials when they know good companies offer vast range of products at reasonable price. So people don’t hesitate in buying new products from top 10 cement companies around the world which bring them many advantages.
People also prefer to buy these brands because these have a good market reputation by providing quality services since years, so that new customers can be added easily. It has been seen that people tend to rely on quality driven brands therefore top 10 cement companies around the world are becoming popular among new customers every day & year respectively.
In addition, these best cement industries have their own websites along with social media accounts where they regularly inform about latest product launches, offers or deals etc. This way they reach the customers without any extra efforts which is one of the major reasons why they are so famous.
These top cement industries in the world (in 2015) are famous because of their market reputation by providing quality services which attracts new customers. These brands also offer vast range of products at reasonable prices, therefore people prefer to buy these brands for their family and commercial use regularly.
For more articles click here