Cemex cements top spot in Europe

Materials giant Cemex has been confirmed as the largest player in the European aggregates sector, according to a report from BDS marketing.

The survey into markets for ready mixed concrete, asphalt and aggregates found Cemex marginally ahead of Lafarge, Holcim, Heidelberg Cement and Hanson. Anglo, CRH, Italcementi, Vinci and Bouygues round out the top 10.

However, these top-10 firms account for less than 30% of the total European aggregates market of 2.8 billion tonnes. This lack of consolidation is in stark contrast to the situation in the UK, where only five companies make up around 70% of the market.

According to BDS, the UK market is headed by Tarmac owner Anglo, with a touch over 20% market share, followed by Hanson, Cemex, Holcim - owner of Aggregate Industries - and Lafarge.

"The UK is a much more vertically integrated market than Europe, with companies traditionally having interests in quarrying, ready mix and asphalt," said BDS director Andy Sales. This has made them popular targets for acquisition, resulting in far greater consolidation than on the Continent, he added. "The integration costs of Holcim's takeover of Foster Yeoman will be minimal, yet they get a very broad package."

This vertical integration has led to gradual domestic consolidation over the past 30 years, a process that has been encouraged by the relatively small size of the UK.

[Contract Journal, 30 August 2006, p 11]