Why Multinational Construction Firms Prefer White Cement?

Highlights:

• Introduction
• Reasons behind the growing adoption of WOPC
• Mergers and acquisitions in the industry

White cement, also called white ordinary Portland cement (WOPC), is similar to conventional cement, with a different color and fineness. The typical grey color of regular cement compounds is mainly due to iron and manganese oxides. On the other hand, white Portland has a minimal amount of these chemicals, thus providing it a pale whitish hue. In the past few years, the applicability of white cement has increased immensely, thereby creating numerous growth opportunities for the industry.

Growing emphasis on infrastructure development impacting the industry positively

Since the second half of the 20th century, many Western countries have focused on improving their public infrastructure to enhance the living standards of their citizens. The governments in these nations have launched several initiatives to boost construction in residential, commercial, and industrial sectors, thus creating new opportunities for real estate developers and builders. As a result of these investments, these countries offer world-class amenities to their citizens, thereby improving their way of living.

In the last few decades, several developing countries such as India, China, Brazil, Egypt, Indonesia, Argentina, etc., have started emulating these development practices and initiated projects that provide major support to construction companies operating in these sovereign states. For instance, governments in China and India have recently launched the ‘Housing for All’ scheme that aims to provide affordable residential space to low and middle-income populations. This growth in the construction sector is expected to expand the scope of the white cement industry in the coming period.

Additionally, the advantages offered by white cement over its traditional counterpart have made it an ideal compound for builders developing premium and luxury real estate properties. Firstly, compared to conventional cement, WOPC offers better aesthetics, especially while constructing architectural components such as floors, walls, worktops, etc. The preference for white cement has, hence, grown for applications like grouting, crack filling, and tiling, thus improving the revenue share of the industry. The sector, which accounted for $10.1 billion in 2023, is predicted to gather a revenue of $15.2 billion by 2033, growing at a CAGR of 4.2% during 2024-2033.

Apart from aesthetics, WOPC offers better adhesion as compared to other construction aggregates, thus making it an essential raw material in the modern construction industry. The chemical composition of white cement helps it to bond with other chemicals such as distemper, paints, waterproofing solutions, putty, etc. Thus, the use of WOPC aids builders create walls, floors, and ceilings with a smooth and finer finish, thus improving their quality and durability. Moreover, the water resistance capability of white cement is much better than normal cement compounds. Hence, WOPC has become widely popular in equatorial regions and countries where rainfall is a common phenomenon as the climate conditions are always humid and moist. Furthermore, the bright white exterior walls reflect sunlight during hot summers, keeping the interior cool. This is another reason why this compound is preferred in hot and arid regions.

Additionally, the data presented by several environmental studies highlight that white cement is a more sustainable option and has minimal impact on terrestrial and aquatic ecosystems. Also, energy consumption in the case of WOPC production is substantially less than that required for conventional cement manufacturing. With many developed and developing countries passing laws and regulations to promote green building initiatives, the demand for white cement is anticipated to grow significantly in the coming period.

Along with governmental initiatives, private companies, too, have started investing in eco-friendly white cement products to cater to the evolving dynamics and strengthen their foothold in the industry. For instance, in July 2023, Dyckerhoff, a cement and concrete manufacturer, announced the launch of a new pozzolanic white cement product. Approved by the German Cement Association, this new solution emits 15% less carbon dioxide as compared to other CEM I concrete aggregates. As per many industry experts, this product launch is anticipated to help Dyckerhoff expand its footprint across the globe in the coming period.

Cementir and UltraTech capitalizing on the opportunities offered by the industry

In the last few years, the landscape of white cement has witnessed a huge increase in competition among different industry stakeholders. Many leading companies are establishing alliances with their peers to maximize their revenue share in the long run. For example, in July 2024, UltraTech Cement, a major Indian firm, released a press statement highlighting that it had acquired a 25% stake in RAKWCT, a UAE-based cement company. Similarly, in August 2024, Cementir Holdings, a cement manufacturer, announced the acquisition of a 25.4% stake in an Egyptian cement enterprise, Sinai White Portland Cement Co SAE (SWCC). With this move, Cementir indirectly holds more than 96% capital share of SWCC.

To summarize, the growth of the white cement industry is attributed to the rising pace of infrastructure development in developed and developing countries. Additionally, the advantages offered by WOPC such as sustainability and durability have made it a popular choice across the globe.

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