Polish cement producers expect growth

Polish cement producers expect growth
18 January 2006

Polish cement producers forecast five per cent sales growth in 2005 in comparison to the year 2004. In 2004, 11.06Mt were sold, or 4.6 per cent more than in 2003. However, sales rose only by 2.3 per cent and amounted to 11.3Mt. The first half of the year was very weak, sales decreases amounted to 20 per cent.

“Since January, sales kept growing. In September, we noticed a 15 per cent growth against the same period of 2004, and in November – by 30 percent, Andrzej Balcerek, the chairman of the Cement Producers Association (SPC) and the CEO of Gorazdze Cement company said. In his opinion, so good results signal growth in the sector.

“We have expected that at the beginning of 2005. It came later but there is a chance that it will remain in 2006. We cautiously estimate that cement growth will amount to 4-5 per cent in comparison to 2005. This would be a decent result”, Andrzej Balcerek said.

“In 2005, the value of construction production rose by six per cent in comparison to 2004. This year, at least 10 per cent growth rate should be expected as an effect of EU funds, Zbigniew Bachman, the head of the Polish Construction Industrial and Trade Chamber said.

Cement producers are most likely going to raise prices to make up for poor years. “Gorazdze Cement have decided to increase prices by 10 percent”, Andrzej Balcerek concluded.

Published under Cement News