In the face of the current and future complex domestic economic situation and enormous operating pressure, as well as the good economic development potential of other emerging markets in the world, the cement industry, as a traditional manufacturing industry, has formed a number of cement enterprises and engineering equipment enterprises with international competitiveness, which have formulated international strategies and stepped onto the stage of the international market.
Southeast Asia and Africa are the main areas for Chinese enterprises to invest in cement industry.
According to the latest data of the Ministry of Commerce at the end of October 2015, there are 77 approved enterprises with domestic enterprises as the main investors involved in overseas cement production and sales, and 89 overseas enterprises participating in the establishment and investment. From the perspective of the distribution of overseas investment enterprises, more than 90% of the enterprises are concentrated in Asia and Africa, of which Southeast Asia and Central Asia are the most, while Southern Africa, East Africa, South Asia, West Asia and West Africa are less, and a few enterprises are also concerned about Russia and Fiji. It can be seen that Chinese enterprises are more keen to invest in the cement market in Southeast Asia, South Asia and parts of Africa, but rarely in the Americas and Europe.
Figure 1: Investment Distribution of Domestic Approved Investors in Overseas Cement Market (by Region)
Data source: Ministry of Commerce, China Cement Network, China Cement Research Institute
Through the consumption pattern of the global cement market in recent years, we can also find that the related investment and trade behavior of Chinese cement enterprises conform to the development trend of the international cement market. From 2009 to 2014, the average annual growth rate of global cement consumption was 6.69%, with the fastest growth in the Asia-Pacific region, mainly due to the rapid growth of China's cement market, followed by Africa/Middle East, with an average annual growth rate of 5.5%, and Central and South America, with an average annual growth rate of more than 5%. Looking forward to the next five years, the global cement demand will reach 5.2 billion tons by 2019, while the average annual growth rate will drop to 4.54%. Africa/Middle East will be the fastest growing region. The Asia-Pacific region will decline due to the decline in the growth rate of the Chinese market, but the demand in Southeast Asia and South Asia will also have a good growth performance.
Table 1: Historical and Future Growth Performance of Global Regional Cement Demand from 2009 to 2019
Data source: worldcement, collated by China Cement Research Institute
Southeast Asia: the First Choice for Domestic Cement and Spare Parts Enterprises to Invest and Develop
Southeast Asia is the first stop of China's "21st Century Maritime Silk Road". The good bilateral trade relations between China and Southeast Asian countries, as well as the stable political environment and huge cement demand space in Southeast Asian countries, have become the preferred market for Chinese cement enterprises, cement engineering or equipment enterprises.
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