01/17/2008 15h42

Sale of cement grows 10% and breaks record

Valor Econômico - 01/17/2008

The Brazilian cement industry broke the record of production and sales in 2007, reaching 45.8 million tons, from which 44.6 million were sold in the domestic market, registering a growth of 10.1% in the year. José Otavio de Carvalho, executive secretary of the National Union of the Cement Industry (SNIC), said the consumption of cement was pushed up by the home building industry. "It was basically the result of the great "boom" of the real estate sector that caught on in the entire country". For this year, the entity expects an increase between 10% and 11% with sales reaching the mark of 50 million tons/year, because of the "PAC effect". The scenario outlined by the SNIC is one of maintenance of the heating of civil construction enabled by the credit offer of the banks, the capitalization of builders and land developers, and the expected beginning of the works of the PAC. In spite of the advance in the production and sale of cement, which confirms last year's increase of the investments, the per capita consumption of the product in 2007 reached 240 kilos per inhabitant, a growth of 7% in relation to 2006, but still below of the world average of 390 kilos/year. For 2008, taking into account the projected expansion for the industry, the per capita consumption of cement may reach 265 kilos in Brazil. "It is a significant number, but it is still far from the world average", said Carvalho. The country is still far from consuming cement as in Spain (1 thousand kilos per inhabitant) and in Greece (1.1 thousand per inhabitant). The installed capacity of the cement industry in the country is currently at 62 million tons a year. It may be increased up to 2010 as result of the investments announced by the companies. Altogether, 10 large groups operate in the sector. Votorantim, Grupo João Santos, Cimpor, Holcim, Lafarge, Camargo Corrêa, Cimento Tupi, Ciplan, Cimento Liz, and Cimento Itambé.