Construction Chemicals in China

Released on = April 20, 2007, 10:45 pm

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = Chinese construction sector holds vast opportunities for
construction chemicals

Home to the most rapidly growing major construction sector in the world, China has
become a booming market for construction chemicals, with demand more than
quadrupling since 1994 to reach nearly 31 billion yuan ($3.7 billion) in 2004.

Press Release Body = Construction Chemicals in China

Chinese construction sector holds vast opportunities for construction chemicals

Home to the most rapidly growing major construction sector in the world, China has
become a booming market for construction chemicals, with demand more than
quadrupling since 1994 to reach nearly 31 billion yuan ($3.7 billion) in 2004.
Although growth rates will moderate as China's economy slows to a more sustainable
level, continued double digit advances will maintain strongly increasing annual
value gains through 2014.

Freedonia's study, \"Construction Chemicals in China\", provides a comprehensive
overview of the emerging opportunities available to chemical companies in China's
surging construction sector. In this study, key industry data is presented on a
historical basis (1994, 1999, 2004), along with demand forecasts to 2009 and 2014 by
product type, major market and Chinese geographic region. In addition to an
examination of China's construction industry, Freedonia also presents a detailed
analysis of China's competitive construction chemicals industry, narrating
competitive strategies, merger and acquisition activities, and marketing efforts,
along with providing market share information and profiles of over 25 domestic and
international companies.
Additional Information

Coatings to lead widespread chemical gains

Amidst robust demand increases for all of the major construction chemicals, the
dominant coatings and sealers market will advance the most rapidly. Chemical
consumption is trending toward the use of higher quality products as building and
infrastructure longevity becomes more important and construction techniques advance
to meet the needs of increasingly complex projects.

Nonbuilding market to post strongest gains

Benefitting from the continued expansion of government-funded infrastructure
construction projects, construction chemical demand in the nonbuilding sector will
lead market gains through 2009. China is undertaking a massive extension of its
transportation infrastructure to accommodate what is the fastest growing major motor
vehicle market in the world, while simultaneously undertaking a wide ranging effort
to meet the country's surging demand for electricity. The larger residential and
nonresidential building markets will undergo exceptional gains as well, bolstered by
the continued privatization of home ownership, growing manufacturing output and the
ongoing replacement of poorly constructed older buildings.

Coastal regions continue to dominate demand

Despite the central government's efforts to expand economic development in the
poorer western regions of China, these areas will continue to account for a small
portion of the overall construction chemical market through 2009. Demand will remain
concentrated in the more populous and affluent coastal regions, most notably in the
prosperous Central-East region. Distinct differences in regional construction
activity have a substantial effect on the construction chemicals market; for
example, the widespread construction of skyscrapers in the Eastern areas has boosted
regional demand for the cement additives necessary to meet more stringent building
requirements


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