Sub-Saharan Africa: Opportunities and Threats
The formation of Lafarge Africa also foreshadows a fierce battle to divide up the market among the three cement producers in the sub-Saharan African market, Lafarge, Dangote and PPC. The three companies are now expanding rapidly in several countries. Recently, for example, PPC announced a proposed merger with AfriSam. Given the low per capita consumption of cement in this region, the earlier entry into this market will also mean greater gains. Unfortunately, many cement companies are also scarred on their way to this path, especially during the Ebola epidemic. In order to invest in this area, enterprises must first make a full market assessment, otherwise it will lead to endless economic losses.
The opening of ASEAN
The Association of Southeast Asian Nations (ASEAN) will form a common development market and set import taxes for the allies from 2015. Cement producers are turning more of their attention to the common market. Holcim Philippines, for example, announced in February 2014 that it was considering postponing the construction of a new plant after a situation analysis. The main reason for the delay is that ASEAN will announce economic integration in 2015, including the Philippines, when tariff rates on goods will be abolished. ASEAN member countries, including fast-growing countries such as Indonesia and Thailand, can see their cement industry entering a stage of rapid development. However, not all allies can eat this "big cake", such as the Philippines may be eliminated.
New Opportunities in Southeast Asia: Myanmar and Thailand
Myanmar's domestic cement market is becoming more and more attractive with the continuous development of economy, the acceleration of urbanization and the growth of housing construction projects. In 2014, Siam Group of Thailand built its first cement factory in the country, breaking the pattern of exporting cement only to Myanmar. Conch Cement and Lafarge Cement have also invested in the construction of cement plants in the country. At the same time, Thailand, which has stepped out of the economic downturn, is also unwilling to lag behind, and the cement industry has also shown new development potential. The increase in government projects and the decline in oil prices have created advantages for the development of the industry. Siam Cement Group of Thailand has said that domestic cement demand will grow by at least 5% in the second quarter of 2015.
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