Monday, October 19, 2015

Cement makers regroup

Cement makers eye a turnaround

Cement manufacturing sector grew at a a meager 11% in 2012-13 and to only single digits in 2013-14, down from its peak of 31% in 2009-10. Sluggish demand from political unrest in 2013 and 2015 affected this sector, but cement makers are anticipating a turnaround next year.

Big infrastructure projects, the Padma bridge, an elevated expressway, metro rail, a few flyovers, a tunnel in Chittagong and seaports are part of the economies plan. These projects are expected to make a turnaround for the cement manufacturers, with a possible growth of 20-25% in the coming 5 years.


From a total capacity of 35 million tonnes a year, only half the demand is seen to be materialized. Bangladesh is also the smallest country in terms of per capita cement consumption with only 105kg, behind India, Pakistan, Sri Lanka, South Korea and the largest consumer, China with 1700kg.

In 2015 and beyond however, the political impact and the sluggish real estate is expected to be a thing of the past. 2015's growth is expected to be 4-5%. From over a 100 factories set up till 2010, only 32 are in operation, but things are looking up for the sector.

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