EVOLUTION OF CEMENT INDUSTRY
IN GREECE
by
Dimitris Corcondjelos
SUBMITTED IN PARTIAL FULFILLEMENT
OF THE REQUIREMENTS OF THE
DEGREE OF
MASTER OF SCIENCE
IN CIVIL ENGINEERING
at the
MASSACHUSETTS INSTITUTE OF TECHNOLOGY
May 1987
A~
:·:
"copyright"
.1,-;"
Dimitris Corcondjelos, 1987
·
The author hereby grants to M.I.T. permission to reproduce and
to distribute copies of this thesis document in whole or in part.
Signature of Author
Department of Civil Engineering
May 19, 1987
Certified by
Fred Moavenzadeh
Thesis Supervisor
Accepted by
David H. Marks
Chairman, Department of Civil Engineering
EVOLUTION OF CEMENT INDUSTRY
IN GREECE
by
Dimitris Corcondjelos
Submitted to the Department of Civil Engineering
on May 19, 1987 in partial fulfillment of the
reguirements for the degree of Master of Science in
Civil Engineering
ABSTRACT
The Greek cement
industry,
being
the 3rd biggest
exporting
sector
of
the Greek
industry,
is of great
the Greek economy. The objective of this
importance for
the Greek
study
is to examine the current condition of
industry, the problems that it faces, the reasons
cement
and to make some proposals for
that caused that problems,
the future.
in low
The cement prices in the Greek market are kept
being under government control. Since they do not
levels,
to rely on
cover production costs, the cement companies had
the
years,
however,
last
profits.
In the
exports for
intense. The
become very
competition has
international
decline in the oil prices has decreased the purchasing power
of the Middle Eastern countries, the main importers of Greek
the decline in the domestic demand
cement. At the same time,
of the main cement producers has increased the supply, the
result being a dramatic decrease in the cement prices. The
the Greek cement companies,
of
of the debt
repayment
their
modernize
to
in order
in
1980's
undertaken
for
the
problems
additional
installations, has created
cement companies which have been loosing money since 1983.
In order to be able to draw conclusions about the future
analitically the
I examined
cement industry,
the Greek
of
evolutions in the cement production and imports of the main
important
cement, as well as the most
importers of Greek
competitors and their comparative advantages.
Penetration to new markets, common export efforts,
increased storage capacity and higher domestic prices are
the present
improve
some of the measures necessary to
companies
cement
condition of the Greek
Thesis Supervisor: Fred Moavenzadeh
Title: Professor of Civil Engineering
3
CONTENTS
Contents . . . . . . . . . . . . . . . . . . . . . . . .
3
Introduction . .
5
.
.
.
.
.
.
. . . . . . . . . .
1. Cement Manufacturing and Uses
.. . .
.
.............
10
2. International Conditions . . . . . . . . . . . . . . . .
13
. . . . . . . . . . . . . . . . . . .
13
2.1. General view
2.1.1.
. . . . . . . . . . . .
2.2.2. International Trade
. .....
2.2.1. Production-Consumption . ...
.
.
2.2.2. Trade.
2.3. European Cement Industry
History . .
..
.
.
.
.
.
.
25
.
.
26
.................
..
...
33
......
41
.................
3. Greek Cement Industry
15
25
. .......
2.2. International Conditions 1984-1985
3.1.
13
World Production and Consumption . .....
.
.
.
.
.... . .
.
. .. .
41
3.2. Formation of the Greek Cement Industry
......
46
..
......
52
3.3. Research and Education
. .....
.
54
3.5. Domestic Market . . . . . . . . . . . . . . . . . .
61
3.4. Importance to the Greek economy .....
3.6. Exports . .
.
.
. . . . . . ..
3.7. Financial Analysis
.
....
.. . . . . . .
.
71
. ...............
3.7.1. AGET . . . . . . . . . . . . . . . . . .. .
66
.
72
3.7.2. HALKIS
.
.
72
3.7.3. HALYPS
. . .
73
3.7.4. TITAN
. . .
73
r···
3.7.5. Productivity
·
·
·
74
·
4. Important Importers of Greek Cement
4.1. Saudi Arabia
102
. .
.
.
.
102
105
.
.
.
.
.
.
.
4.3. Algeria . .
.
.
.
.
.
.
m
...
6
...
0.
..
4.4. Libya . .
.
.
.
.
.
.
.
.
.
.
112
4.5. Nigeria . .
.
.
.
.
.
.
.
.
.
115
4.6. North Yemen . .
.
.
.
.
.
.
.
118
4.7. Remarks . .
.
.
.
.
.
.
.
.
121
. .
.
.
.
.
125
.
.
.
.
.
129
. .
.
.
.
.
134
4.2. Egypt . .
5. Competitors
5.1. Spain . .
5.2. Turkey
.
6. Perspectives of the Greek Cement
109
ndu stry
139
6.1. Domestic Demand . .
.
.
.
.
139
6.2. Exports . .
.
.
.
.
.
.
.
.
141
6.3. Proposals . .
.
.
.
.
.
.
.
144
Bibliography
. . . .
146
I NTRODUCDT I ON
The objective of
of
the
Greek
my thesis is to
cement
industry,
examine the condition
not
separated
international environment, but operating
from
the
in a complex market
which in the last years has become more and more tight.
In the
the
first chapter
methods used in the
a reference on
and
there is
a brief
description of
production of cement. There is also
its uses, mainly the
production of concrete,
its applications on construction.
In
the second
conditions
trade of
chapter
with regard
on the
cement. Cement was
1825. The
I
examined the
international
production, consumption
produced for the first
and
time in
world production
from 1.7
million tons
reached 950
million tons
in 1985. The
trade of
cement has
become more
complicated and
various methods are
being used
by
the cement manufacturers in
maintain their
are
used as
share in
a
may
periods
for
traditional
countries
from
access to
in the last years and
number of incentives in
range
Disrtibution terminals
greater flexibility. The
enabling suppliers
been very intense
order to increase or even to
the market.
for better
a mean
enter the
competition has
the suppliers offer
assistance
cement
is
to
extended
of
the
decreasing, while
new
The
receivable.
producers of
distant markets,
order to attract customers. These
direct financial
accounts
in 1880,
market, increasing
production
year by
year their
share. The
production and the
evolution
through time
are given
examined the European Cement
declining, is
In
exports of Greece,
cement industry
a
more detailed
is made. At
analysis
for the
of
the high
exceeded domestic
is composed of 4 firms
of total capacity equal to
are not considered
research in the fields
17 million tons
probable because
entering costs and the tight
are conducting
reference on
became self-sufficient
first time, exports
New entrants
Greek
cement was for the first time
production. The Greek cement industry
with 8 factories
of the
first there is a
Greece. Very soon Greece
1981,
per year.
I
Industry, whose role eventhough
its evolution since 1911, when
and in
2. Finally
still important in the international market.
chapter 3
produced in
in chapter
and their
market. All firms
of cement production,
trying to improve the quality and the production methods, and
to reduce the
one of the
consumption of energy. The
cement industry is
most important sectors of the
Greek economy, its
currency
inflows accounting
exports,
being
the
exchange. Cement
related to
Cement
consumption in
companies
have
from
contributed a lot
companies
are
entered
total value
contributor
the domestic
the
attempt to increase the
low prices, which are
profit
largest
of the
the construction activities, has
business in an
any
3rd
for 6%
of
of
foreign
market, being
been declining.
ready-mixed
concrete
quantities sold. The
under government control, hardly allow
sales
in the
domestic
to the financial problems
facing.
Exports,
despite
market
and
have
that the cement
the
unfavorable
international_ condititons,
contributing the
Greek
cement
operations
of
have
rigorous marketing
companies.
The
the
cement
Greek
problems exist, since only one
shown any losses. The main
mainly a
to
result of the
to
techniques used
financial
by the
results
companies
this
of
the
indicate
that
of the four companies has not
characteristic is their big debt,
heavy borrowing undertaken
improve the efficiency
in order
of their installations. To these,
1980 must
the productivity since
decline of
the continuous
been increasing,
also be added.
The
most
chapter 4.
in
examined
accounted
important
for
74%
Africa,
North
most
to
attempt
propable
that
competitors to the Greek
In
traditional
since
in
This,
however, was
increase
1985.
and
domestic
their
position, it
wiil
become
whether the
countries
to
appearance was
possible
Greek cement
in the
made
because
US dollar and the declining
competitors of
in
not
cement, has increased by 893%
able to retain a constant share
The
Algeria
Middle East
of the
exports,
importers of Greek
is doubtful
are
necessary for the Greek cement
cement
impressive
value of the
exports
future they
the
cement
cement exports. Diversification and
1983. An
market.
it
fact,
Greek
their geographic
penetration to new markets is
industry.
Greek
Egypt, and
Arabia,
countries
evident. Given
production is
is
the
Saudi
the total
of the
in all
However,
of
of
importers
of the
US
high
freight rates, and
industry will
be
in the US market.
the Greek
cement industry,
mainly
Spain and Turkey,
as well as the advantages
are
chapter
examined
in
proximity to
5. Greece's
the markets of
of each country
advantages
the Middle East,
are
its
its excellent
port facilities and the
operation of distribution terminals.
Spain's
the
advantages are
higher prices
market, the government subsidies, and
financing.
political
Middle
Turkey's
links
East,
However,
advantages
that it
and the
chapter
are
domestic
not
increase.
levels.
The
been
a
established as
and
cement
terminals
for
the Greek
of
the
and
Greek
cement in
there
should be
made for
are
the
are
activities
still,
is not expected
despite
the
cement
able
through
other
intense
to offer
low
network
of
a
subsidiaries.
industry
increase
is not expected to
cement
to decrease, since Greece has
services
investment that will further
effort
the
will most propably remain at
producer, being
excellent
distribution
of
Since
exports,
expected
the market
the Turkish
needs for infrastructure, it
competition, are not
necessary
of
and
the government.
construction
to decline significantly and it
prices
of
consumption
since
wiil
same
many countries
perspectives
examined. The
however, great
the
religious
be favorable, while Greece and Spain
6, the
market,
declining,
with
the
to retain their market shares.
are expected
industry
are
perspectives
industry do not seem to
domestic
the very good terms of
heavy subsidizing by
the longterm
In
has
in the
to
It
avoid
is
any
the capacity, since
expand. At the same
better coordination
time, an
between the
firms
four
in
the
fields
of
exports
promoting
and
distributing cement.
I would like
more
to mention that there is
detailed analysis
consumption,
and trade
cement pricing, there
thesis on
on many
issues
On many
of cement.
the production,
cases, such
as
made in my
was only a brief reference
the various methods used.
of this thesis
on
enough space for
The objective, however,
was not to focus on specefic
aspects of the
cement trade, but rather to provide the general framework in
which
the Greek
trends
in the
which the
survive.
cement industry
world cement
Greek cement
operates, as
production and
industry has to
well as
the
consumption in
adjust in
order to
C:HAPTFF
E-EFR
1
CEMENT MANUFACTURING AND USES
Portland
cement
is
the
of water. The
of
the
largest
are limestone,
used
material
clay,
shale,
marl,
hydraulic
industry, and substantial amounts of
Typical raw
and power.
seashells,
operations, some
continuous
moving machinery in any
fuel
for
cement manufacture requires many
exacting nature of portland
and
name
that hardens in the presence
cement, a cement
separate
generic
furnace slag,
blast
silica
and iron ore. The cement industry utilizes all forms of
sand
products, natural gas, and
energy: electric power, petroleum
Different fuels
coal.
are
used at
stages of
various
the
manufacturing process.
Either
of two
When rock is the
essentially alike.
as
as
large
crushers that
an
oil drum
reduce the size
are
the wet
ground with
in
process,
raw
to
are
crushing. Pieces of
fed
through
to less than 6
primary
in. Secondary
in size.
materials are
water, thoroughly mixed,
the form of slurry. In
processes
two
crushers then reduce the rock to about 1 in.
In
is used
principal raw material,
is quarrying and primary
the first step
rock
the
respects,
most
In
cement.
make
or "dry",
processes, "wet"
and fed
proportioned,
into
the kiln
the dry process the raw materials
are proportioned, dried and ground, blended, and fed into the
kiln
in
dry
their
The chemical
k:ilns
diamet er
slurry
with
r dry),
firebrick.
two
raw materials
inclined,
into the
is fed
level is an intensely hot
zone of
about 2700-
burning
of coal,
F
and the
kilns
Some
steel
have
a
750 ft. The kiln
25 ft. and are up to
larger than
0
the
huge cylindrical
place in
takes
lined
is slightly
axis
respects,
other
change necessary to convert
new compounds
rotary
In
are essentially alike.
processes
into
state.
raw material,
(either
At the
upper end.
lower
flame which provides a temperature
by
the
oil, or
controlled
precisely
natural gas
(or combinations
of
these fue is) under forced draft conditions.
Duri ng the burning process in
the kiln, elements in the
raw mater ial
are chemically recombined to
marble-si zed
substance
clinker,
pyrochemi cal
aluminium ,
product, is
of
oxides
by
much
one
of
calcium,
silicon,
the
of the heat
to handling
kiln and cooled
discharged from the
temperatu re
controlled
a closely
of
cement
quantities of other minerals. The
iron, and small
clinker is
Generally
combination
Portland
"clinker".
called
an intermediate
form a pelletized
various
types
of
from the cooler is
coolers.
returned to
to the ki in to increase heating efficiency.
Fina 1
grinding
reduces the
powder so fine that more than
that has
100,000 openings
clinker
and
gypsum to
a
80% will pass through a screen
per square
inch.
This
powder is
portland cement.
Nearly all cement is
used to produce concrete. Although
of its in-place cost,
concrete, and from 5% to 25%
key
forms
of a cement
The growth
the
of
level
a
has
essential
is
form
growth
in
activity,
and
wide
in
the mix
range
In
fact,
concrete.
of the
has
the
many
material,
applications
concrete in
some
Thus
the
construction
of
growth
the
relative
of
construction.
of construction
the
and
techniques,
Concrete
growing
on
or other
depends on
which
ideal construction
nearly all
demand depends
binds
a direct function
activity.
an
with
hydrated,
mass called
for concrete,
it
it is the
crushed stone,
market is
prestressd, etc).
(reinforced,
when
the rock-like
construction
that make
attributes
which
demand
in the
which,
sand, gravel,
into
materials
growth
paste
such as
aggregates
inert
the
weight of
cement combined
concrete. Portland
ingredient in
water,
of 12% of the
only an average
cement constitutes
markets, local
building
other
building
cost
of
materials.
Almost all
the
for
world is
finished
production of
demand for
raw
construction cement
portland cement,
cement
vary
manufactured throughout
although the
from country
specifications
to
specialty cements is determined
the end
materials, and
use, by the
by
the needed
requirements that
of the cement manufactured
most of the countries is a pure portland cement.
The
by the market
availability of
the strength
cement must meet. The majority
country.
the
in
E
CHAPTEIR
INTERNATIONAL CONDITIONS
2.1.
General View
Since
when
1825,
considerably. The
the
production
and
from
1.7
million
production stoped
in 1929-1947, was
the
tons
in
reconstructionwere an
production
was
cement increased
in the second
production of
Europe.
The
reached
1880,
30
War, the recession
War, the increase in the world
impressive, (per
year increase
Therefore after 1948
the needs for
cement
industry, and
being as
0.8%).
cement
Western
Due to the first World
in 1929, and the Second World
world
time
a result of the
countries of
the
millions in 1913.
the
first
British monopoly was curbed
the 19th century, as
U.S.
the
nowdays, the production of
produced, until
half of
for
impetus for the
milliontons
reached 951.5
in
1985,
(table 1).
2.1.1. World Production and Consumption
The
world
production
considerably from
1973, which is
and
130 million tons
a per year
consumption
in 1950, to 717
increase of 7.7%.
increased
tons in
The increase in
the
price of- oil
economic
in 1973
growth, resulted
consumption
of cement
in
increase
during
of
the
respectively),
construction
that,
this
period
had
a
of cement,
of
sector. Most
the
1981,
year
and 1981.
The
as the oil
higher
per
year
(12.2%
and
6.9%
development
the
world
the per
important, however,
and
increased their share
in
between 1976
consumption
1950
for the
oil producing as well
because
between
results
a decrease
by 2.6%
developing countries, (the
importing),
and its
of
their
is the
fact
developing
in the production of
countries
cement, from 16%
to 40%, and in the consumption from 22% to 40%.
Until
1990 the
1100-1200 million
developing
world production
tons. At the
both
countries,
is expected
to reach
same time, the share
in
the
production
of the
and
the
consumption, is expected to increase. Also the trend to build
with production capacity of
high-technology units
per day will
Many
increase.
which
countries
developing
(e.g. China
and
India),
(20-50 tons
per day) in
units have_
the advantages
production, low
a
shorter
dependence
do
they
build small
various parts of the
At
of low capital
the
same
from the industrial
the
time
cost per
the
factories
country. Such
transportation costs, and they
period.
have
not
and in which the demand is
necessary capital for such units,
high,
2000 tons
unit of
are built
in
technological
countries, is decreased to a
certain extent.
The
new trend
in the
cement industry,
which is
also
industry, is to replace oil with
adopted by the Greek cement
as a
coal
fuel.
production cost
industry
the cement
while
countries,
developing
(fig. 2).
is decreasing,
the total
60%-75% of
accounts for
the share
developed countries
the
total cost
in the
energy
In
the total energy
produced in these
the same
countries it has
been estimated that,
of 1,000-1,500
the amount
Energy
in
the
consumes
countries. For
2%-6% of
investment,
of
without big
million dollars,
in
1983 prices, could be saved.
2.1.2.
International Trade
of
production in
the
for cement
patterns
is
cement
shipped
by the
are affected
either
1985.
8% in
to
1970,
shipping
transportation and
available
cement has increased from 4%
trade of
The international
bulk
in
Distribution
type and
practices.
or
cost of
Finished
bags.
in
Bulk
distribution has become increasingly popular while the use of
bags
declined. Bulk
has
economies of
elimination
for
affords
scale in transport, reduction
of packaging
materials
the benefit
of
of handling, and
and equipment
required
bagging.
Because cement is a
one
shipping
to
another
value-to-weight
and
ratio,
within 150-200 miles of
commodity with
especially
cement
little variance from
because
plants tend
of
to
its
be
low
located
their principal markets. Beyond that
overland
point,
marketing areas
extended considerably by utilization
of distribution
customer's facilities.
by direct shipment to
production, or
is
distribution area
where their plants or
geographic area
the
in
compete
companies
cement
however,
general,
of
point
the
miles from
of
hundreds
perhaps
terminals,
In
with
less costly water transportation,
access to
can be
For companies
the product.
value of
to the
relation
in
excessive
costs become
transportation
located.
either through the spot market
Sales of cement are made
or
contracts
by
are favored
Contracts
if
services in order to
users
cement
serve
cement
and concrete
technical
mainly to
by
routine
carr ing out
The
quality.
the technology
kinds
of
se. Contracts
of
are attractive
large projects for
supply of large
and unhindered
provide
field uses
on the
all
on
testing
suppliers also
governments and cont actors of
which steady
a number of
attract c ntracts. Service laboratories
information of
cement and
the
provide and
have to
uppliers provide
deliveries. The
timing of the
they avoid
plan better
are also able to
t ey
the quantity
know
they
suppliers because
by the
of prices. They
dropping
the
businessmen.
or
governments
local
with
quantities
essential.
The price of cement in
the
law of
demand-supply. The
dropping in the
of
th
the domestic
last five year
production ir
spot market is determined by
demand for
as a result
cement has
been
of the increase
the countries-importers,
as
supply
of
cement
in
decline
has
facing. The
problems that they are
of the economic
well as
mainly
increased,
in
the consumption
because
of
Western
countries of
the
the
Europe. As a result, prices have been continuously dropping.
expected to be determined by the
The price of cement is
"competitive cost". Eventhough there is
market,
years
in
had
reality, the
as a result
intense
a fixed price in the
competetion
period from the time that
last
order to
in prices in
the decrease
achieved in the
is
The "competitive profit"
increase sales.
in the
the price decrease is announced to
the buyers, to the time that the competitors learn about this
the same levels, eventhough a
given the
is expected to
trade
international
decrease. The
small
remain at
increase may be achieved
especially in the
needs for increased consumption
developing countries.
Companies quote FOB (base) and delivered prices. Usually
on delivered prices,
made by the suppliers
price offers are
because the loading of the buyer's transportation means is an
more costly than loading a
incovenience for the supplier and
uniform type of transportation,
supplier. An other
make -offers on
incentive
delivered
freight charges and offer
The intense
more easily scheduled by the
for the cement manufacturers to
prices is
that
they can
absorb
lower delivered prices.
competition in the last
years has resulted
in changes on the trade of cement.
Substantial
accompanied
the
changes
rapid
in
growth
cement
of
distribution
cement
capacity
have
and
production.
and
The general
more
convenient
distribution
marketing
service
terminals as
become widespread.
emergence of
effect has
of
cement.
operating bases
For
plants
from which
to establish
from distantly
than
use
with
a
access
they are
a
of shipment
a cheap
The first
consuming area
can
advantage over suppliers operating
cement
can
water
utilized as
to distribute cement.
terminal in
has
in the
to
used as
of
to the
a major link
terminals are
terminals are relieved
nearby terminals
The
of distribution
located plants. Cement users
minimal
as speed
channel
markets, and
offer customers a service
access to
customers.
distribution terminals as
entering distant
company
a
provide faster
Several factors have contributed
transportation, distribution
way of
to
been to
of the need to
inventories,
be
with convenient
since
shipments
provided on short
is important
to the
carry more
from
notice. Insofar
users, suppliers
with terminals have a competitive advantage.
In
addition
competition,
one base price,
be
a
useful
A company with
tool
of
of prices,
in enabling
way
cutting
prices,
while
the various
set only
number of terminals
not be equal to
the transportation
In this
cement
one at each terminal. The base
at terminals need
served.
service
no terminals can
while one that serves a
may set a variety
price plus
as
implement selective pricing in
markets supplied.
base
serving
terminals may
manufacturers to
price quoted
to
terminals
costs to
can be
minimizing the
used
the factory
the terminals
as means
problems
of
associated
with preventing
such price
cuts
from spreading to
all
the
areas served.
Often the
operation of
joint ventures
the distribution
terminals are
with local businessmen. The
participation of
local businesmen offers
a knowledge of the
local market and
serves
reducing
as
a
mean
manufacturers in
capital
with
this way
local.
precision changes
when demand
of
local
antagonism.
also manage to
Cement
prices
in actual
replace company's
do
not
reflect
transaction prices.
is low, cement
with
In periods
companies tend to reach
more distant markets, absorbing
Cement
out for
freight charges. At times of
slack demand, price shading might also occur.
In the days of excess
easily described.
prices.
the
mill
delivered
were to
to
shifted
from a
surplus,
be made,
each destination.
situation of
pricing practices
plus
delivery
at destinations
customers.
change
Larger
prompt payment. On
the
than
the
charges from the
cement industry
have become
costs
tend
be
has
to capacity
more complex.
to
to
simply summed
capacity shortage
a variety of techniques, while
nonetheless
and delivered
the seller
As
indicators of transaction costs.
than a
prices
price plus actual transportation
factory
prices
Cement companies quoted FOB
To determine
which shipments
of demand, cement prices could be
less
Mill
reliable
A cement supplier may adopt
not modifying his mill price,
effective
price
usual discounts
are
occasion this has been
real requirement, with discounts
paid
by
offered
his
for
more an imaginary
given regardless of
20
whether
payments
are
prompt
establishment
or
expansion
Alternatively the
customers.
financial
The
At one
of
operations
of
may merely
suppler
cement
quarantee
customers. More frequently, the financial
bank loans made by
is
provided
assistance
also
provide direct investment funds for
extreme the supplier may
the
are
a wide gamut.
provided, may run
assistance actually
There
manufacturers.
cement
by
not.
financial assistance of cement
arrangements involving direct
customers
or
related
to
accounts
carrying
receivable for extended periods.
have resorted to phantom
Some producers
billing. In this
situation a supplier serving
different places
may agree
customer,
chosen may
introduce a zone price system
is quoted
may
areas in
for all
to the
the
lowest
at
plus freight charges. The delivery
suppliers
fictitious. Often
entirely
be
a customer at
cement sold
shipped,
where
of
regardless
combination of base price
point
to bill all
delivery point
where a single delivered price
which phantom
delivery billing
be practiced.
Cement
better cope
caused
companies
facors have
in production or marketing
to be gained
a program
various production operations under
Even where
economies
to
integration.
through the combining of
one management.
order
in
of vertical
adopt
There are economies
coordination
used integration
with increased competition. Several
firms to
combined,
have
may
of operations,
operations cannot
be
realized
or through
be physically
through
better
the elimination
of
21
certain transfer
(notably selling
costs,
with sifting goods fron one
Typically
order
to
material
and to minimize
(backward integration).
to protect
their
own
and
necessary
assure
in
try
stage of production to the next.
cement manufacturers
quarries
costs), associated
operate their
own
of
raw
sources
fluctuations in raw material costs
On the
other hand
markets by
cement companies
entering the
concrete business (forward integration).
ready-mixed
22
INTERNATIONAL PRODUCTION OF CEMENT
Year
World Produc.
(thous. tons)
1920
1930
1938
1950
1960
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
32,200
73,400
86,700
133,000
314,200
589,500
634,100
676,500
717,500
716,000
719,000
758,000
806,450
846,450
873,050
881,100
884,050
886,300
917,100
939,150
951,500
Table 1
Source: (5)
Index
5
12
15
23
53
100
108
115
122
121
122
129
137
144
148
150
150
150
156
159
162
23
ENERGY
IN THE CEMENT
Solid Fuels(%)
Finland
UK
Denmark
Luxemburg
Belgium
Switzerland
W. Germany
France
Norway
Spain
Sweden
Ireland
Italy
USA
Canada
Egypt
Nigeria
Turkey
GREECE
100
98.3
96
94.5
81
75.5
66
55
44
42.2
36
35.8
27.3
75
30
27
25
11
Liquid Fuels(%)
1.2
4
5.5
5
23.5
28
34
56
57.8
64
64.2
61.7
5
34
100
73
75
89
Table 2
Source: (29)
INDUSTRY
Gas(%)
0.5
14
1
6
11
1.1
20
36
-
24
ENERGY CONSUMPTION
aCeaeq~
umm
1.9m
IJ~oD
I.Mo
tlim
It•W
1.r00
V00
1=00
X00
'12x•
9.900
amo
i9m
14k0
lft5
1970
g.2
Fig. 2
Source: (29)
1975
25
International Conditions in 1984-1985
2.2.
In
The world
production
1984. At the
8%
in
from 590 million tons
increased by 1.3%
in 1985
international
same time the
million tons
in 1970.
compared to
trade increased to
1985.
Production-Consumption
2.2.1.
The Europe,
the
production reached 939
the world
1985 952 million tons,
in
and
1984
(West and East),
(tables, 3-4).
respectively,
continuously
consumption
while
10
it had
years ago,
world
the
of
41.8%
declines, since it holds
included),
Turkey
and
(USSR
Europe,
of
role
The
66%
(68.2% and
consumption areas
and
main production
and the South-East Asia are
the total.
53% of
Nevertheless, it remains the biggest producer-consumer and
deserves to
both
in
the countries
Spanish
French,
and
(18%),
considered to
(27%
production,
be
the
the CEMBUREAU
evident
and
the
countries, despite the expansion
since 1983.
of their economies
of
members
European Economic Community
the
decline is
be examined separetaly. The
it
Important
compared
(22%
the West
German,
increase in
the decline
is
with
(16%).
the Turkish
1983),
Impressive
in
the
is
production,
since 1983).
In Asia the
increasing power
is China,
(27% increase
in
26
1985),
which for
the 1985
in the world,
biggest producer
the
Indian
production,
cement
and
production
as
well as
industries of
for the
became
first time
The
(table 5).
the
decline
the high rates
Malaysia and
in
the
increase in
Japanese
the
of increase
of the
Indonesia deserve
to be
mentioned.
Regarding
the
production
consumption
of
the
decrease in the production of Brazil,
rest of the world, the
(26% since 1982),
and
The production of cement in
is impressive.
the rest of the world is characterized by stability.
2.2.2. Trade
West
important
Asia
and
North
and West
areas,
importing
absorbing
Africa
are
51%
the
of
the
most
world
imports.
The CEMBUREAU and
exporters of cement,
Japan
the East Asia countries
are the main
(71% of the total world production).
remained in
1985 in
the first
position of
the
exporting countries, despite the decline of its exports, (32%
since 1983+. Spain continued to hold the second position, but
the
Spanish
thousand
exports declined
tons. Only
the
about the
same quantity,
mentioned
that these
the
international
third
by
41%
exporter, Greece,
(4% increase in 1985).
three countries
trade.
since 1983
Regarding
It
conduct about
Turkey,
to
7800
exported
must be
41%
despite
of
the
27
impressive increase
1853 thousand
in its
tons and to
production, its
the
exports fell to
17th position, (7th
in 1983
important importers,
USA has
and 11th in 1984).
Regarding the
been the most
tons
imortant in 1985. It
in 1985,
Arabia,
years,
three most
an increase
from the
(table 6),
by 63%
first position
fell
to
imported 14,000 thousand
compared to
that it
the third
1984. Saudi
held in
the last
position in
1985,
behindEgypt, (table 7).
A more
an
exporter
detailed analysis of
and
Greece as
is made in chapter 3.6, while the most important
countries importers
4,
the position of
of Greek cement are
the most important
industries in chapter 5.
examined in chapter
competitors of the
Greek cement
28
1984
PRODUCTION
IMPORTS
EXPORTS
(million tons)
COSUMPTION
Europe
263.6
8.5
36.0
236.1
USSR
130.1
0.2
2.3
128.0
40.8
22.8
2.2
9.1
6.7
18.6
13.3
0.9
0.5
3.9
1.8
0.1
0.7
0.4
0.6
57.6
36.0
2.4
9.2
10.0
America
North
Central
South
144.9
78.2
27.0
39.7
10.7
8.9
1.4
0.4
7.6
2.9
2.8
1.9
148.0
84.2
25.6
38.2
Asia
West
S. West
S. East
East
353.1
45.4
35.6
25.2
246.9
32.9
19.8
2.9
5.3
4.9
23.6
2.8
1.1
19.7
362.4
62.4
38.5
29.4
232.1
6.6
0.6
0.2
7.0
939.1
71.5
71.5
939.1
Africa
North
East
South
West
Oceania
TOTAL
Table 3
Source: (5)
29
1985
PRODUCTION
IMPORTS
EXPORTS
(million tons)
COSUMPTION
Europe
251.8
8.3
32.8
226.7
USSR
131.0
1.0
2.3
129.7
16.5
53.3
33.6
1.0
0.5
3.9
1.5
0.3
0.6
0.2
0.6
Africa
North
East
South
West
40.5
22.9
2.4
8.0
7.3
11.0
2.6
8.3
8.9
America
North
Central
South
151.4
80.3
29.4
41.6
14.8
13.2
1.3
0.3
9.4
3.3
3.2
2.9
154.2
86.8
Asia
West
S. West
S. East
East
374.8
48.9
26.2
21.7
2.2
0.1
1.6
378.3
57.5
40.5
25.9
254.6
Oceania
TOTAL
38.0
25.2
262.7
6.9
951.5
13.4
2.9
4.1
5.9
0.7
67.3
Table 4
Source: (5)
17.9
0.2
67.8
27.9
39.6
7.3
949.2
30
IMPORTANT COUNTRIES-PRODUCERS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
China
USSR
Japan
USA
Italy
India
Spain
France
West Germany
South Korea
Mexico
Brasil
Turkey
Taiwan
Poland
Greece
UK
Rumania
1985
1984
1983
1982
133.0
129.0
76.4
70.3
37.3
31.0
24.2
23.5
22.9
22.0
21.3
19.0
17.7
15.3
14.9
13.7
13.4
13.0
121.1
130.1
78.4
70.5
38.9
29.1
26.6
24.0
26.2
20.4
18.4
19.5
15.7
13.3
16.4
13.5
13.6
14.0
105.0
131.5
84.7
68.5
40.2
25.4
31.2
25.8
27.9
22.5
17.3
20.9
13.9
15.0
16.4
14.2
13.5
15.0
86.0
124.0
80.4
57.2
41.6
20.4
30.2
27.7
27.8
17.9
19.2
25.6
16.0
15.0
16.0
13.4
13.0
15.1
Table 5
Source: (5)
(million tons)
1984
1984
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
(thousand tons)
IMPORTS-EXPORTS (thousand tons)
IMPORTS-EXPORTS
Country
Imports
Country
S. Arabia
Egypt
12,000
9,100
8,600
3,711
3,363
2,983
2,876
1.883
1,860
1,800
1,500
Japan
Spain
GREECE
Taiwan
S. Korea
Rumania
Canada
France
USSR
Mexico
Turkey
W. Germany
Belgium
E. Germany
USA
Singapour
Algeria
Netherlands
Hong Kong
Kuwait
W. Germany
N. Yemen
China
Malaysia
Bangladesh
Nigeria
UAE
Pakistan
Libya
Bahrain
Oman
Cameroun
1,438
1,150
1,145
800
800
700
700
600
550
Source: (4)
2,007
Yugoslavia
Venezuela
UAE *
1,000
Sweden
Netherlands
Table 6
11,279
10,439
7,332
3,559
3,177
3,124
2,827
2.683
2,300
1,932
1,623
1,237
1,200
1,200
1,062
1,019
Kuwait *
*
Exports
reexporting
767
709
32
1985
Country
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
USA
Egypt
S. Arabia
Singapour
Hong Kong
Algeria
Netherlands
Kuwait
W. Germany
China
IMPORTS-EXPORTS (thousand tons)
Country
Imports
Japan
Spain
GREECE
Taiwan
S. Korea
Canada
Rumania
France
Mexico
USSR
14,000
9,000
7,500
3,400
2,900
2,800
2,800
1,800
1,800
1,500
Table 7
Source: (4)
Exports
9,100
7,800
7,639
3,900
3,100
3,100
2,600
2.600
2,500
2,200
33
2.3.
European Cement Industry
The
European Cement
non-profit
Association
organization. It
World War
and has
was
its base in
(CEMBUREAU), however, are in
are 19 countries of the
(table
8).
Greece
objective
members
other
created
international,
after the
Malmoe, Sweden.
Second
Its offices
Paris. Members of the CEMBUREAU
Western Europe and the Mediterranean
became
a
of this Paneuropean
or
is an
related
member
in
June
1962.
The
organization, is to help its
organizations,
to
increase
quantitavely and qualitatively the consumption of cement.
The CEMBUREAU
in which,
either permanently
production),
three
is governed by a
all members
permanent
Economical, as well
are
committees,
twelve member Committee
or alternately,
(according to
represented.
There are
also
Technical,
Marketing,
and
as temporary work groups
that deal with
specific problems.
The countries members of the CEMBUREAU are divided into
four groups.
-"Small countries"
It includes Denamark, Norway, Sweden,
Netherlands,
represent
Luxemburg,
the 10%
Portugal,
and
of the total production
members of the CEMBUREAU.
Finland, Iceland,
Ireland.
They
of the countries
-"Old
industrial Countries"
Includes
France,
Belgium,
West
Germany,
and
United
Kingdom. They represent 35% of the total production
-"Countries of the center"
Includes Austria, Italy
and Switzerland which represent
25% of the total CEMBUREAU production.
-"Countries exporters"
It includes
Spain, Greece,
and Turkey.
They represent
35% of the total CEMBUREAU production.
From
50
million
in 1956,
tons
production reached 216 million tons
recession
in
1976.
1978
Since
the
total
CEMBUREAU
in 1978, despite a small
the
production
has
been
constantly decreasing, (table 9).
The
old
production
industrial
in
countries
a
1974. After
reached
period
their
maximum
of stagnation,
their
production has been decreasing.
The
have
small countries
and
the countries
of the
center
a constant production.
The
countries exporters
production
until 1978,
but
had
a big
their
increase in
production has
their
remained
constant in the last years.
Important
involved
is
in the
1960, their number
the
cement
decrease
in
the
production. From
decreased to 180 in
number
of
firms
300 companies
in
1985. Most important
35
is considered- to be the decrease
in the number of
countries.
Contradictory
the
industrial
old
in
decrease
production
in 1984),
the
number
of
units remained about the
200,000 thousand
the
to
of
number
the
same, (550 in 1960, 440
same period the production
while in the
increased, from
the
firms,
firms in
tons per year,
per unit
to 500,000
tons per year.
The
consumption
countries has
capita
in
European
Economic
been declining constantly since
consumption in
the E.E.C.
1985, while in 1980 it was
12).
the
Community
1980. The per
countries was
442 Kg
541 Kg, a decrease by 18%,
in
(table
37
CEMBUREAU COUNTRIES
(thousand tons)
Year
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
Change per year,
Production
Exports
Exports
Production
180,350
187,900
200,900
209,300
204,100
195,000
200,550
207,150
215,900
214,150
213,450
210,300
202,390
198,390
189,990
182,495
8,000
10,550
12,500
14,050
15,050
17,100
18,800
24,850
30,450
28,700
27,800
32,900
33,300
32,350
28,440
25,040
1970-1984
Change in 1984-1985
Production
Exports
0.4%
9.5%
-4.0%
-12.0%
Table 9
Source: (4,5)
36
COUNTRIES-MEMBERS OF THE CEMBUREAU
Countries
Austria
Belgium
Denmark
Finland
France
W. Germany
GREECE
Iceland
Ireland
Italy
Luxemburg
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
UK
Firms
1984
1985
12
6
1
2
12
42
4
1
1
59
2
3
1
3
36
1
17
15
7
13
6
1
2
13
35
4
1
1
60
2
3
1
3
36
1
16
15
4
Production Capacity
1981
1985
6000
8000
2185
1990
27623
34400
12380
100
1960
52040
960
1700
2100
5450
34063
3070
5440
18735
14756
Production Capacity in thousand tons
P.C.P.F. :Production Capacity Per Factory
Table 8
Source: (4,5)
6000
8000
2080
1890
27623
34400
17180
100
2550
54520
960
1700
2100
6900
34078
3070
5440
21135
14924
P.C.P.F
400
2080
475
480
580
1910
100
1275
630
960
1700
700
1000
680
1020
450
540
570
38
CEMBUREAU COUNTRIES (1984)
(thousand tons)
Country
Production
Exports
Austria
Belgium
Denmark
Finland
France
W. Germany
GREECE
Iceland
Ireland
4,852
5,708
1,450
1,645
24,025
26,224
13,460
114
1,377
17
1,232
74
8
2,683
1,623
7,332
81
0.3%
21.6%
5.1%
0.9%
11.2%
6.2%
54.5%
5.9%
Italy
Luxemburg
38,891
973
522
682
1.3%
70.1%
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
UK
3,176
1,459
5,483
26,643
2,360
4,297
15,735
13,552
709
106
23
10,439
767
17
1,932
193
22.3%
7.3%
0.4%
39.2%
32.5%
0.4%
12.3%
1.4%
D.O.E.O. :Degree Of Export Orientation
Table 10
Source: (4,5)
D.O.E.O.
CEMBUREAU COUNTRIES (1985)
(thousand tons)
Country
Production
Exports
Austria
Belgium
Denmark
Finland
France
W. Germany
GREECE
Iceland
Ireland
Italy
Luxemburg
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
UK
4,541
5,537
1,418
1,608
23,546
22,944
13,639
117
1,487
37,632
853
2,877
1,354
5,364
24,200
2,050
4,254
17,700
13,403
15
1,084
5
4
2,591
1,496
7,600
249
384
662
474
8
68
7,803
603
17
1,853
153
D.O.E.O. :Degree Of Export Orientation
Table 11
Source: (4,5)
D.O.E.O.
0.3%
19.5%
0.3%
0.2%
11.0%
6.3%
55.7%
16.7%
1.0%
77.6%
16.5%
0.6%
1.3%
32.2%
29.4%
0.4%
10.5%
1.1%
PER CAPITA CEMENT CONSUMPTION
IN E.E.C. COUNTRIES (Kg)
Belgium
Denmark
France
GREECE
Ireland
Italy
Luxemburg
Netherlands
U.K.
W. Germany
Mean
1980
1981
1982
1983
1984
1985
570
313
524
708
534
723
828
430
256
528
486
235
501
670
540
745
786
361
221
475
465
225
455
636
454
719
736
325
230
440
415
239
421
637
417
693
769
337
243
450
411
266
390
621
386
677
789
333
245
406
408
282
381
595
358
654
750
322
242
374
541
502
-7.2%
469
-6.6%
Table 12
Source: (12)
462
-1.5%
457
-1.0%
442
-3.3%
CHAPTER
3
GREEK CEMENT INDUSTRY
History
3.1.
The
of
evolution
the
Greek cement
can
industry
be
divided into three periods.
Prewar period
1950-1973
1970- ...
In the first
oriented
towards
two periods, the Greek
cement industry is
the
The
domestic
market.
factory with a production capacity
in
1902 by
TITAN.
started operating.
1925 and
year,
the
to
cover
1920-1925,
55%
increased
needs
motivation
it was
first factory
HALYPS in 1939.
1965.. At, -first the production
enough
In 1911
of
OLYMPOS and HALKIS started
ATLAS and
the
of
the
after
for the
domestic
the
Greek
was
cement
small and
demand.
was
named
HERACLES
operations in
ATLAS went
consumption
1922
cement
of 10,000 tons, was built
Nicholaos Kanellopoulos.
In the same
first
In
bankrupt in
it was
the
period
imported.
construction
was
industry, which
not
a
The
big
expanded
rapidly. In 1938 only 7% of the consumption was imported. In
42
1920 the production was 20,000
tons, in 1930 180,000, and in
1938 313,000 tons, (table 13).
cement
tons, in
399,000
The
million tons.
1960 1.6
reached 20%
the
for
landmark
prohibition by the
As
in 1955 exports
to export again and
lost a
be a
considered to
cement industry,
exports
in 1933,
fell to zero. In 1947 the
government, for a few
Greek
result,
a
1929 fell to
were made
first exports
Greek
1970 4.6
and in
million tons,
production. 1973 is
of the
reached
production
the
(16,000 tons), but until 1935 they
cement industry started
to the
big push
imports from 84,000 tons in
1955. The
tons in
2,000
gave a
1950
In
industry.
for
increased needs
War, the
Marshal plan
and the
construction
Greek
World
the Second
After
the
of
because
months, to export.
big
in
share
their
traditional markets, (e.g. Libya).
the Greek cement industry
Since 1974
The
oriented.
totally in
based
the
first
in
increase
time
the
has become export
production
of
the increase in the exports.
exports
exceeded
domestic
cement
is
In 1981, for
consumption,
accounting for 52% of the total production, (table 14).
The
related
development
tao
the
of
industrial
"traditional" sectors,
basis of the
supplies
the
cement
industry
development
with low
importes high technology products.
closely
Greece.
(cement, textiles, leather),
Greek exports. In this way,
the foreigners
of
is
The
are the
the Greek industry
technology products,
and
This creates problems, at
least longterm, for the Greek industry and economy.
43
The
face,
problems that
need
technological
happen
evident.
in the
strategy,
improvement of
in
as
Greek industry
a
target
the
This did
not
problems are
now
the production.
and the
cement
the absence of state
industry competitive
economy.
the
of the
having
textile industry,
Contrary,
marketing and
an
proper
many sectors
abroad
industry,
the
dynamic
interference resulted in
contributing
to the
Greek
44
DELIVERIES OF CEMENT AND CLINKER (ALL TYPES)
Thousand Tons
YEAR
1914-20
1921-25
1926-30
1931-35
1936-40
1941-45
194650
51
52
53
54
55
56
57
58
59
60
1951-60
61
62
63
64
65
66
67
68
69
70
1961-70
71
72
73
74
75
76
77
78
79
80
1971-80
191480
81
HERACLES G.C.C.
DOMESTIC
TOTAL
27
27
106
106
393
393
504
528
619
619
122
122
479
505
150
159
194
236
237
286
309
401
458
569
536
595
496
533
560
578
582
609
706
726
4,230
4,692
647
858
893
910
996
1,017
1,143
1,161
1,274
1,342
1.353
1,423
1,413
1.586
1,533
1,680
1,756
2,075
1.911
2.032
13,121
14.064
2.022
2.240
2.334
2.696
2.577
2,700
2.053
2.756
2,014
3.014
2.075
3.086
2.490
4.305
2.576
4.481
2.905
4.780
2.787
4.822
23.833
34,880
43.436
55.938
2.836
5.541
EXPORT
24
- 26
9
42
49
92
111
59
35
18
27
20
462
11
17
19
18
68
70
173
127
319
121
943
218
362
123
703
1.000
1,011
1.815
1,905
1.875
2035
11.047
12.502
2.705
Table 13
Source: (I)
GREEK CEMENT INDUSTRY
DOMESTIC
EXPORT
TOTAL
116
116
213
213
665
665
36
1.068
1.104
1.413
.1.413
289
289
57
1.228
1.285
17
416
433
111
480
591
122
576
698
153
706
859
230
901
1.131
146
1.064
1,230
96
1,132
1,228
54
1.324
1,378
96
1,362
1,458
78
1.569
1,647
1.103
9,550
10,653
70
1.791
1,861
33
1.888
1,921
53
2.244
2.297
54
2.600
2,654
157
3.035
3,192
212
3,378
3.590
366
3.337
3,703
356
3,721
4.077
642
4.257
4.899
364
4.556
4,920
2.307
30807
33,114
677
4.885
5,562
804
5.547
6.351
376
6.104
6.480
2.042
4 972
7.014
3.059
4.863
7.922
3.406
5.333
8,739
4502
6.003
10.505
4.934
6.557
11.491
4 899
7.170
12.069
5.876
6.818
12.694
30.575
58.252
88.827
34.078
103.601
137.679
6.728
6631
13.359
GREEK CEMENT INDUSTRY
(thousand tons)
1970
1976
1978
1980
1982
1983
1984
1985
1.Production
capacity
5300
11000
11800
14000
15525
17000
17180
16930
2.Production
4900
8740
11490
12700
13330
14185
13610
13669
3.(2)/(1)
92%
80%
97%
91%
86%
84%
79%
4.Exports
340
3410
4930
5880
6950
7845
7332
7639
4900
8740
11490
12700
13330
14185
13610
13669
6%
39%
43%
46%
52%
55%
54%
Production
100
179
234
259
273
290
276
279
Exports
100
1003
1450
1729
2044
2307
2156
2245
Sales
100
178
234
259
272
289
278
279
5.Sales
6.(4)/(2)
81%
56%
Indices
Table 14
Source: (1,6,7,26)
Formation of the Greek cement industry
3.2.
from 5.3 million tons
The production capacity increased
in 1970 to 17 million tons
in
in 1985, (table 15). The increase
was almost the same, and as
the production
modern equipment of
can be attributed to the
over 80%. This
at high levels,
over capacity has been
degree of production
a result the
the Greek cement industry, as well as to the penetration into
until
their high demand,
markets which with
the foreign
did
recently,
not
allow
for
the
at least
of
decline
the
production.
The Greek cement industry is
factories
and total
capacity
composed of 4 firms with 8
of 17,000
thousand tons
per
year, (table 15).
"HERACLES", has
-A.G.E.T.
white cement
white cement,
portland,
produce
factories that
two
AA, portland
portland-high-resistant,
Greek-type, common
resistant
and
to
sulphates.
-TITAN, has
four factories that
produce portland-Greek
type, white, high resistant and resistant to sulphates
-HALKIS, has one factory that produces common portland
-HALYPS, has
one factory that produces
All the above
factories operate on a
portland Greek-
type.
the technological level of
be,
according
to
24-hour basis and
their facilities is considered to
international
advanced. The factory of A.G.E.T.
standards,
of
the
most
in Milaki in the island of
1983, was
it started operating in
the time that
Euboea, at
considered to be the most advanced.
A
convert their
the
come from
has
improvement
great
installations, so that
to
decision
they are able
to use,
as a fuel, either coal or oil, "with a simple phone call".
The
high cost
market, the
the
the
propable given
considered
domestic
It must
investors.
be
mentioned
that the
170-200 million US
the
new unit,
dollars, (table 16). An
such a unit in the island
cement,
both
possible
internationally
1 million tons
estimated to be
cost of such a unit is
per year. The
shape of
discourages
which
a unit, is considered to be
accepted size of
not
of a
for
demand
the
international,
and
market is
design and construction of such a
in
decline
the
and
oligopolistic
for the construction
time required for the
unit,
the
companies in
new
entrance of
about
attempt to build
of Crete had no results because of
the decline in the demand, both domestic and foreign.
The
cement
in
factories
Given
quarries.
limestone
the factory of
located
mainly
the
high
transportation
near port facilities. With the
costs, the factories are also
exception of
are
3). The factories are usually
around Athens and Volos, (fig.
near
Greece
all the
TITAN in Thessaloniki,
other factories have access to owned port facilities.
increase in
Facing an
tried
Thus
to minimize
they tried
cement kilns.
the oil prices,
production costs
to substitute
Despite the
Greek producers
by reducing
oil for
increase in
oil usage.
coal in
firing the
the price
of fuels,
the
17),
cost to the total cost, (table
percentage of the energy
for the
constant, especially
has remained
two bigger
companies that have completed the conversion to coal. Coal,
however, is a dirty fuel that requiers increased expenses for
the
protection
pollution
of the
is confronted
However, the use of
the
industry
order to
analyze
environment.
to
with the
air
additional
installed.
Drapetsona which was old and
now
the attempts
electric
power.
In
that continuously
exhaustion and measure the quantity
of dust emited, have been
Besides
of
electric filters.
pollution, devices
the factories's
closed and it is
use of
the problem
pollution control equipment has required
consume
prevent
Today
polluting
operating as
to
importance is considered to
The factory of AGET at
the environment, was
a distribution terminal.
prevent air
pollution,
of
great
be the creation of "green zones"
in and around the factories, as well as the recreation of the
quarries
than
that are
20,000 trees,
purpose. It must
an
exhausted.
In 1985
coming from
TITAN planted
nurseries created
be mentioned that in each
agriculturist employed,
responsible
and recreation of the environment.
more
for this
factory there is
for the
protection
PRODUCTION CAPACITY OF THE GREEK CEMENT INDUSTRY
(thousand tons per year)
1984
AGET
Factory HERACLES I
1.15
4.70
Factory OLYMPOS
Factory HERACLES II
1.60
7.45
TOTAL
TITAN
Factory
Factory
Factory
Factory
in
in
in
in
1.35
Patra
Viotia
Elefsina
Thessaloniki
5.10
2.10
7.20
1.20
5.83
1.35
2.20
1.08
1.20
5.83
3.10
3.10
0.80
0.80
17.18
16.93
2.20
1.08
TOTAL
1986
HALKIS
Factory in Halkida
HALYPS
Factory in Aspropyrgos
TOTAL
Table 15
Source: (12)
COST FOR THE CONSTRUCTION OF A UNIT
Land
Equipment
Transportation
Steel Structures
Assembling
Civil Engin. Works
Miscellaneous
1%
60%
4%
7%
3%
23%
2%
Table 16
PRODUCTION COST
Labor
Energy
-Fuel
-Electricity
Raw Materials
Miscellaneous
1977
1981
16%
35%
26%
9%
9%
40%
14%
48%
36%
12%
10%
28%
Table 17
Source: (1,6,7,26)
1983
9%
55%
37%
18%
22%
14%
1984
1985
10%
55%
34%
21%
20%
15%
12%
55%
32%
23%
19%
14%
D·C1
d
04ýZ9
c•z3
g
&t
Fig.
3
Research and Education
3.3.
companies
cement
Greek
The
in the fields of
research
all have
years. They
been
have
cement production for a number of
up-to-date scientific instruments.
1979 the
National Research
was founded
In these laboratories there is a
process with the
to improve the production
of raising
Furthermore, in
Institute in Cement
and it is financed by AGET.
object
equipped with
excellent laboratories,
the most
ceaseless effort
conducting
efficiency, reducing
energy consumption,
of cement. Among their activities,
and improving the quality
the following should be mentioned.
and
research
-Technical
studies
feasibility
on
the
possibility of vertical utilization of quarry material.
of current technological
-The study
might permit fuller use of
developments which
the energy lost in the production
process.
-Research on alternative fuels to replace oil or coal.
Many
of the
technology have
in cement
findings
seminars and conferences, where
presented at
been
they have been
well received by scientists and experts.
now considerable experience in
The Greek companies have
research
cement, and
process.
raw
on
material
for
use
in the
on technological improvements in
This
service, as well
enables
them
to provide
a
as consulting services for
the production in the countries
production
of
the productive
better
support
the increase of
of the Middle East and North
Africa.
A
main concern
personnel of all
fill
of
grades, and
matters,
energy
middle
organization,
prevention. This
classes
provided
management of
conservation,
which
is
the training
creation
of
technical
and
from the
continuous.
Visits
order to
administrative
human
envromental protection,
of
managers to
organized in
communications,
are separate
are
the
Seminars are
higher positions.
inform
the companies
and
relations,
accident
regular educational
abroad
for the training of the upper management.
are
also
54
3.4.
Importance to the Greek economy
to be one of the most
The cement industry is considered
sectors of
important
crisis for
has been
industry reached
enormous. The
a high point in
the investment is
than
the
1982 when it was
currency
outflows
1985
completion of
beginning of
the cement
future to reach
the 1980's.
investing,
to
the
as well
decrease in the demand,
not expected in the
due
23.5% of
fell to levels
long-term commitments of
industry, investment is
of the
in
Given the
1985.
short-term and
the level
the cement
industry, (table 18). Since 1982
oil, and the
conversion to
as
of
the cement
investment in
decreasing, and
that
of
its contribution to curbing the
the total investment in the
lower
the investment in
the Greek economy,
industry has been rising and
recession
a period
In
Greek industry.
the
Furthermore the
of
because
the
technological dependence from abroad, are high. This not only
has
negative effect
affects the
on the
companies. The
US dollar,
(fig. 4),
three- years for
company, TITAN,
debt
was in
decade the
excess
in
Middle East
three
resulted
of the
the period
four
in
losses
in the
companies. The
any losses mainly
domestic market has been
directed
and North Africa.
last
fourth
because its
currencies, (fig. 4 ). In
production was
also
big depreciation of the drachma
did not show
European
whole, but
intense investing in
1978-1982, combined with the
to
as a
economy
the
last
self-sufficient and the
to
the market
For the first
time
of
the
in 1981,
exports exceeded
were 274.1
been increasing
despite
the
currency inflows
in 1981
the
international
currency
are
of 56.2%
in
in 1985.
due
market.
We
outflows
industry
imported.
rate
increase
prices
to
the
As a
per year.
volume
attributed to
the
mention
the
in
the
that
the
of
the
activities
Fuel, equipment and
result
exports,
competition
however
from
of
Since
million US dollars
This can be
harsh
must
resulting
are high.
only 0.5%
the currency inflows
are decreasing from 274
declining
cement
at a
to 171 million
of the total
1973 they represented
In the period 1973-1981,
of the total.
1981,
currency inflows
millions dollars, representing 5.7%
exports, while in
value of
have
domestic consumption. The
net currency
spare parts
inflows
are
approximately equal to 55% of the currency inflows.
In table 21, the employment in the cement industry since
1973
is
presented. There
is
almost 2.5
times greater than
the
industry,
Greek
curbing
unemployment
constitutes
a
3.5% increase
the increase in the
(1.3%). However
is
its
negligible,
2% of the total employment.
per year,
whole of
contribution
since
it
in
only
56
GREEK CEMENT INDUSTRY
INVESTMENT (MILLION DR.)
Cement Industry
Total in manufacturing
1970
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
394
2,242
2,400
1,299
1,460
2,320
4,470
10,442
18,406
11,766
5,251
3,195
10,044
26,584
31,346
33,851
38,237
51,259
65, 847
72,549
78, 194
90,400
103,827
112, 820
FOREIGN CURRENCY INFLOWS (million
Cement( 1)
Industry(2)
Total(3)
1970
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
4.1
92.3
98.0
142.5
184.5
197.6
249.0
274.1
264.8
210.3
178.9
171.1
223.8
981.7
1160.2
1305.2
1542.1
1957.9
2249.5
2374.0
2011.0
1906.0
2002.0
2382.0
Currency inflows in present values
Table 18
Source: (2,12)
612.2
2029.9
2227.5
2522.4
2998.5
3932.0
4093.9
4771.5
4141.4
4105.4
4394.0
n. a
3.9
8.4
7.7
3.8
3.8
4.5
6.8
14.4
23.5
13.0
5.0
2.8
]r •
1/2
1/3
1.8
9.4
8.4
10.9
12.0
10.1
11.1
11.3
13.2
11.0
8.9
7.1
0.7
4.5
%
4.4
5.6
6.2
5.0
6.1
5.7
6.4
5.1
4.1
n.a
EXCANGE RATES
150
140
130
130
120
120
110
110
100
100
90
90
80
70
70
so
60
1982
192 193 1964
1983 1964 1965
Fig. 4
Source: (26)
1986
58
INVESTMENT IN THE GREEK CEMENT INDUSTRY
Year
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
Current Prices
546
373
153
319
282
394
840
828
1255
2160
2242
2400
1299
1460
2320
4470
10442
18406
11766
5251
3195
Inflation
index
45
47
47
47
47
49
51
53
62
77
89
100
113
126
151
189
234
285
342
404
505
Table 19
Source: (1,6,7,26)
Constant Prices 1976
1213
794
326
679
600
804
1647
1562
1976
2805
2519
2400
1150
1159
1536
2365
4462
6528
3440
1300
633
59
GREEK CEMENT INDUSTRY-CAPITAL
Year
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
Index
Prices 1976
86
100
107
113
122
136
162
199
219
227
231
14,925
17,325
18,475
19,634
21,170
23,535
27,997
34,525
37,965
39,265
39,898
Figures in million drachmas.
Table 20
Source: (Table 19)
EMPLOYEES IN THE GREEK CEMENT INDUSTRY
YEAR
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
EMPLOYEES
INDEX
3,898
4,236
4,646
4,702
4,717
5,457
5,435
5,508
6,363
5,814
5,589
5,680
5,571
100
109
119
121
121
140
139
141
163
149
143
146
143
Table 21
Source: (12)
Domestic Market
3.5.
cement in
of
Distribution
network of dealers. At the
and
SKYRODEMA S.A.,
LATO S.A.,
a
provide
they
costs), it is unlikely
The main reason for this
strategy which permits additional output
a tight market. Any
capacity.
integration
market
without affecting
for cement manufacturers
this manner
in
Some
other
are
outlets,
to
reasons
secure captive
diversification
the
profits. Other
to higher
equal, it is rational
sales
rest of
for the
prices
to contribute
will tend
expand
cement
which is especially important in
to market larger quantities
to
cause
that in this way they manage
forward integration seems to be
things being
to
basis
sufficient
manufacturers to integrade forward.
to 'be sold
CONCRETE S.A.,
AND STAR
saving opportunities offered (selling
business
already owns
S.A. Eventhough there are cost
TITAN one, INTERCONCRETE
that
a
same time cement companies create
ready-mixed concrete companies. AGET
their own
three,
made through
is
Greece
when
faced
with
for
promoting
consumers,
of business,
excess
forward
to
protect
and
quality
control.
The evolution of the
the construction
and
public
spending
consumption had
but in
needs of
on
domestic consumption is related to
the industry, the
infrastructure.
been increasing since the
the last years
it is
housing needs,
The
per
Second World War,
decreasing reaching 595
1985, while it was 720 Kg in 1980.
capita
Kg in
The consumption
been
analogous
increased in
of cement in the
to
the
the period
increased
again in
declining
since then.
period 1970-1985, has
investment
in
construction.
1970-1973, decreased
years
1975
to 1979,
The domestic
in 1973-1975,
and
it has
consumption from
1980, fell to 6,200 thousand
thousand tons in
It
been
6,820
tons in 1984,
and to 6,000 thousand tons in 1985.
in construction
The investment
per
15.7%
in
year
the
investment has decreased
than that
been less
the other two
in housing, and
to
increase, since
Examples
stage
of
categories has
has followed
the same
investment is not expected to
infrastructure is
projects that
1979,
that of 1970,
sector investment
The public
rate of
Since
to levels lower than
trend. Private and residential
increase further.
1975-1979.
period
The investment in
(table 22).
increased at a
are
is expected
far from
currently
in the
completed.
planning
are:
-The Athens International Airport at Spata.
-The Rion-Antirion Crossing.
-The Expansion of the Athens Subway
-Schools and Hospitals.
Since-the share of the
lower
than the
public sector in construction is
private, the
consumption of
cement in
the
domestic market is not expected to increase.
Many probems
the
level
prices,
of
for the
the
being under
Greek cement industry
prices in
the
domestic
government control,
arize from
market.
hardly cover
These
the
63
Cement companies
production cost.
by
40% in
market.
the Greek
market
are about
borrow, and
cement industry
does
finance its operations with
the ability to
in
Greek
the
this
domestic
heavy
market. Instead,
borrowing and
created problems for the cement industry.
60% of
the
countries, (table
the European Economic Community
23).Therefore, the
price increase
in the domestic
order to make profits from sales
Prices in
prices in
selling
ask for a
its
not
have
profits made by
they
have
to
repayment have
INVESTMENT IN CONSTRUCTION
(billion dr-1970)
Year
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
Total Invest.
45.
53.
63.
64.
43.
46.
49.
54.
57.
60.
54.
50.
43.
45.
41.
Private
28.9(64%)
33.2(62%)
40.0(63%)
43.6(67%)
27.7(64%)
30.1(64%)
32.8(67%)
38.6(71%)
42.3(73%)
45.0(75%)
41.3(76%)
35.2(70%)
28.4(65%)
28.1(62%)
23.2(55%)
Table 22
Source: (15)
Public
16. 6(36%)
20. 3(38%)
23. 6(37%)
21. 3(33%)
15. 7(36%)
16. 6(36%)
16. 5(33%)
15. 9(29%)
15. 3(27%)
15. 3(25%)
13. 3(24%)
15. 1(30%)
15. 3(35%)
17. 3(38%)
18. 7(45%)
PRICE OF CEMENT IN THE EEC COUNTRIES(dr/Kg)
Dec. 1981
June 1982
May 1983
June 1984
Marc.1985
UK
W. Germ.
France
Italy
4.505
3.070
2.534
2.075
5.060
3.315
2.923
2.465
5.804
4.253
3.361
3.152
6.622
5.308
3.978
3.523
6.635
5.647
4.453
4.014
Mean
EEC-9 (a)
3.082
3.548
4.291
4.830
5.255
Spain
GREECE(b)
2.528
2.151
3.088
2.452
3.540
2.591
4.609
2.961
4.843
3.258
69.8
69.1
60.4
61.3
62.0
%(b)/(a)
Table 23
Source: (26)
Exports
3.6.
not enough
was
in the
decline
domestic demand.
to cover
towards
since 1974
exports
cement exports
smaller firms,
of
of
32.5%
the
to 56%
Greek
be successful.
Greek
in 1985. In
A.G.E.T. 43.9%,
the total,
tons in
1984 TITAN
HALKIS 18.7%
the two
be mentioned however that
and 77.7%
HALYPS, exported 67.2%
HALKIS and
respectively.
total,
the
in 1975 and 7,600 thousand tons
6.9% in 1970
their production
of
the exports over the total sales,
4.4%. It must
and HALYPS
the
from 364 thousand
increased rapidly
33.0% of
same time
at the
considered to
in 1985. The percentage of
exported
the
The evolution
exports.
is
After 1974,
capacity, have made necessary the
1970, to 3,059 thousand tons
increased from
and
domestic demand
increase in the production
orientation
the production
1973, since
limited until
Exports were
A.G.E.T.
1985 TITAN
In
HALKIS
45.1%,
exported
and
18.7%,
HALYPS 3.6%, (table 24).
Greece exported 7,300 thousand
tons, being the
third biggest exporter
in the world, behind
Japan and Spain
who
10.3
In 1984
exported
and given
general,
not
such
a
Eventhough the
continued
cement
9.1 and
bad
tons respectively.
conditions, 1985
the international
for
year
exports of
to decline,
the
thousand tons
Greek
most of the
(Japan:-19%,
industry managed
from 7,300
million
cement
In
was
industry.
exporting countries
Spain:-24%), the
to increase
slightly its
in1984 to
7,639 thousand
Greek
exports,
tons in
67
1985,
(7,800 thousand
second position,
threatening Spain's
tons in 1985).
considered as
exports can be
of the Greek
The success
the result of a long-term systematic stategy to capture a big
this effort it used the most
share of the foreign market. In
modern and effective marketing techniques.
companies
Greek
Riyadh and
Jeddah), 3 in Egypt,
Port-Said),
1
advantages
of
Nigeria,
establishing
instead
of
bags.
1 in
(2 in Alexandria and
1
and
in
North
terminals,
The
Yemen.
besides
those
following: -Cement is carried in
earlier, are the
mentioned
bulk
in
distribution
Saudi Arabia, (Haql, Damman, Gizan,
5 of them in
terminals,
10
already
operate
In
this
way
there
is
an
elimination of the cost for
packaging. It must be mentioned
that
cement exported
90.5%
of
the Greek
is carried
in
bulk.
-The losses
of material
due to damaged
bags, (5%-8%),
are avoided.
-In
the companies
participate
the
domestic businessmen
the terminals
which
usually
help decisively
in
increase of sales since they have permanent interest.
-The
which
that operate
terminals are
they are
country,
well accepted
operating
while at
since they
the same
by the
create
time provide
countries in
value in
the
opportunities for
employment.
-Distribution
offer
higher
terminals,
flexibility
with their
to the
Greek
storing
cement
capacity
companies,
68
relieving
and
away,
sell right
to
burden
from the
them
enabling them to wait for better selling opportunities.
of terminals in a
The operation
a
certain market creates
permanent base in that market and is one of the steps that
the
Greek
has
industry
cement
the
spot market. The
in the
seldom fixed,
contract is
the
attempt of the
and it
cement in a
of
as in
usually fluctuates
spot market. The Greek companies decrease the price they
offer
soon
as
decreases
their
as
his own,
sell at
16.5
their profit
margins and
example, in order
to maintain
by squeezing
the Egyptian
share in
$/tn
share
their
threatens
that
someone
below cost. For
even selling
they
price
customers. The
attract
companies to
are almost
prices, however,
the hard competition and the
same given
have
and the rest
quantity exported is with contracts
60% of the
to
order
selling in the Spot Market.
permanent market share and avoid
of it
in
taken
by Turkey,
market threatened
eventhough the
production cost is
21 $/tn.
Distribution terminals
means
that
promote
the
their
utilization of
extend. The
Greek
and low prices are
cement companies
exports.
Vertical
flexibility to absorb transportation
them to manage
shipments
in
integration
their subsidiaries are
shiping companies that
use
not the only
also used in
order
and
to
the
a great
they own, allow them the
costs. They also enable
better. For example,
by combining
the transportation of coal and cement they managed to offer a
competitive price in a distant
market, such as the US. Their
69
technical subsidiaries
customers,
technology
companies
their
on
of
the
field
uses
use. The
Greek
cement
responsible for
parent companies.
and coordinating
cement
all
provide technical information
the promotion
Their
cement
and
the
companies also
own
of the
exports of
activities include
managing
supply, transportation, and distribution of
that is shipped
activities
of
to the
include
to
the
opportunities overseas,
foreign potential markets
overseas terminals.
development
of
and the maintenance of
Additional
new
business
contact with
70
THE GREEK CEMENT INDUSTRY
TITAN
Year
AGET
1976
1983
1984
1985
3098
1976
1983
1984
1985
2075
2664
2662
2600
2321
2767
2750
2676
1976
1983
1984
1985
1011
3553
3367
3442
1372
2734
2421
2486
6170
6029
6042
Production
3701
5494
5171
5362
Domestic
HALKIS
HALYPS
1605
2092
2044
1852
342
439
412
383
Sales
745
752
672
532
Exports
871
1302
1373
1429
Thousand tons
Table 24
Source: (1,6,7,26)
193
156
117
109
152
286
320
274
Financial analysis
3.7.
In this
section I will
other operating
and the
condition
of the
picture
looking deeper
companies. In this analysis
data of
that we
have a
better
problems
of the
cement
25-48), so
business, (tables
their
industries, by
statements and
the financial
into
the financial
Greek cement
of the
results
try to interpret
the following performance ratios
were used:
Debt Ratio = Longterm liabilities / (Liabilities +
company's ability
appraise the
used to
It is
Equity).
to
its obligations, as well as its financial policy.
meet
Current
Ratio
obligations
its current
for a
allow
assets. A
possible
thumb is
Current
company's ability to
with a
shrinkage of
popular rule of
/
assets
Current
used to measure the
liabilities. It is
meet
=
of safety
margin
in its
value
to
various
a 2:1
considered to be
relationship.
Cash
Ratio =
to measure
used
obligations, by
is
Cash /
Current liabilities.
a businnes's
ability to
concentrating on
It is
meet its
liquid assets
current
whose value
fairly certain.
Net
the
sales
Profit Marain= Net income/Sales. It
efficiency
of operations,
that
is
that find their way into profits.
measures
the percentage
of
3.7.1.
A.G.E.T.
AGET
was
the
biggest
and wealthiest
companies in
1980. Its debt ratio
sales
their
found
into
then, and
declining since
8%
way
of the total sales.
the
cement
was 54%, while 7%
of its
profits.
of
Profits
have
ended with losses
1983
been
equal to
In 1985 AGET's losses equalled 4,216
million drachmas, that is 20% of the total sales.
were inadequate to cover working
Since the profits made
on
investment
and
capital
borrowing was necessitated. At
2,337 million
to banks
owned
In the
606%.
same year
negative. One of
renewal,
large-scale
December 31, 1979 the company
drachmas, while
in 1985
its
million drachmas, an increase by
had climbed to 14,170
debt
plant
the Net
Worth of
the company
the measures that the company
was
took in 1986
part of its debt, a measure that
was to provide stocks for a
improved its position.
3.7.2.
HALKIS
The
same
results of
the
path as of AGET. In
Halkis's
operations followed
the
1980 its debt ratio was 63%, while
the profits equalled 2% of the total sales. Operations became
especially
money
since
bad in
1982, and
then. Losses
in
has been
loosing
equalled 5,000
million
the company
1985
73
drachmas,
1985
almost 70%
Halkis owned
of the
total sales.
to the banks 5,800
At December
31,
million drachmas, for
which it payed as an interest only 4,412 million drachmas.
3.7.3.
HALYPS
Halyps is
the
the smallest of
biggest debtor,
must
be
since
mentioned that
1981.
Since
production, it is
international
frdm
is the
those
ratio being
the company
Halyps
exports more
Its debt to the
drachmas in
biggest debtor,
of AGET
and
Profit Margin which
This is
is also
1985. It
paid divident
60%
of
its
fluctuations in the
banks has increased
2,100 millions
in
that eventhough Halyps
its losses are
Halkis.
than
1981, to
must be mentioned, however,
91% in
has not
depending more on the
markets.
525 million
1985. It
the debt
the 4 companies. It
not as
reflected
was zero for Halyps, while
important as
on the
Net
it was -0.70
and -0.20 for Halkis and AGET respectively.
3.7.4,
TITAN
While AGET was the healthiest
the healthiest
notshowedany
reached
a low
company in
losses,
the
eventhough
point of
15
company in 1980, TITAN is
last years. In fact,
in
1983
the
million drachmas.
Net
It has
it has
Income
been
74
paying
divident for
year, which
each
the period 1980-1985, 0.64 and
reasons that TITAN had better
mainly in
constant in
has remained almost
Its debt ratio
since 1983.
increasing
has been
0.65 respectively. One of the
results is that its loans were
European currencies against which
the drachma did
not devaluate as much as it did against the US dollar.
the above
evident from
It is
analysis that
the Greek
cement companies face great
financial problems. However they
survive because they manage
to handle day-to-day cash flows.
This is succeeded, in a great extend, through agreements with
have agreed with
taxes every
true for
cement companies
and other institutions. The
the government
the government to pay a
certain amount for
month and not the total amount owed. The same is
payments for
the social security.
Regarding their
longterm debt, they repay part of it by issuing stocks to the
lending banks.
It
seems that
companies is
to stay
improve in the
regaining export
gained, confers
the main
interest of
in business,
future. A
related
the Greek
hoping that
cement
things will
issue is the high cost of
sales lost. The market
share
itself, once
cost advantages with respect to distribution
and production, but once lost, a market position is difficult
and expensive to establish.
75
Productivity
3.7.5.
in
(table
productivity
the
helped keep
employment,
and
output,
in capital,
harmonic increase
1980, the
49). Until
productivity,
in the
increase
impressive
in an
resulted
remained constant,
and personnel
working capital
the
the fact
same time
at the
1977, and
sales in
increase in
The important
cement industry.
of the
the productivity
that
negative evolutions appeared
the year in which
1980 is
at
relative high levels.
productivity
the
1980
Since
has declined significantly, combined
The
employment.
This
capital.
undertaken
by
is the
increase
the
of the
the
period
great degree justifies the decline
1980-1984, and which in a
in productivity,
with a decrease
that characterizes
phenomenon
constantly
the productivity
in sales,
the increase
declining. Despite
been
has
the working
impressive increase of
a
is
the
of
result
in
cement industries
Greek
investment
the
early
1980's, in order to replace oil with coal as a fuel.
A
significant
in
role
rates of
return on
investment, both
taxes. Accelarating inflation, (table
of
lower
adopt
pricing
inflation
costs of
profit rates.
on
policies
costs,
Business
to
before and
after
19), was a major cause
were slow
executives
reflect fully
particularly the
inventories, and
productivity
the
absolute decline since 1980 play
slowdown since 1977 and the
the
explaining
the
current
capital consumed.
impact
to
of
replacement
More important
76
have
been
the
governmental
rising
prevent
prices
from
decline
in the
rates of
proportion
of capital
return also
stocks
interest and principal on the
regulations, primarily
the
above
recession.
have
as much
costs.
reflects the
required for
to
The
growing
the payment
of
debt, as well as by government
environmental and
squeezed
unit
as
order
in
price controls,
profit
margins
health-safety. All
and
brought
on
AGET
BALANCE SHEET - 1980
Cash
Receivables
Inventories
Total current assets
Plant & equipment
TOTAL ASSETS
166
1,249
1,602
3,024
6,280
9,304
Current liabilities
Long-term liabilities
Equity
4,327
2,700
2,277
9,304
TOTAL LIABILITIES
ADDITIONAL INFORMATION
4,909
521
0.54
0.70
0.04
0.07
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
Figures in million drachmas
Table 25
Source: (I)
AGET
BALANCE SHEET - 1981
Cash
Receivables
Inventories
Total current assets
Plant & equipment
TOTAL ASSETS
329
2,203
1,657
4,189
11,401
15,590
Current liabilities
Long-term liabilities
Equity
4,770
9,307
2,513
15,590
TOTAL LIABILITIES
ADDITIONAL INFORMATION
5,891
630
0.79
0.88
0.07
0.05
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
Figures in million drachmas
Table 26
Source: (I)
79
AGET
BALANCE SHEET - 1982
209
2,287
2,328
Cash
Receivables
Inventories
Total current assets
Plant & equipment
TOTAL ASSETS
4,824
23,107
27,931
Current liabilities
Long-term liabilities
Equity
TOTAL LIABILITIES
11,024
11,849
5,058
27,931
ADDITIONAL INFORMATION
9,602
346
0.70
0.44
0.02
0.03
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
Figures in million drachmas
Table 27
Source: (I)
80
AGET
BALANCE SHEET - 1983
198
Cash
Receivables
Inventories
Total current assets
Plant & equipment
5,186
2,529
7,913
27,257
TOTAL ASSETS
35,170
Current liabilities
Long-term liabilities
Equity
16,187
15,186
TOTAL LIABILITIES
35,170
3,797
ADDITIONAL INFORMATION
11,892
(1,289)
0.75
0.44
0.01
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
(0.08)
Figures in million drachmas
Table 28
Source: (I)
AGET
BALANCE SHEET - 1984
Cash
Receivables
Inventories
Total current assets
Plant & equipment
310
7,824
3,916
12,050
28,314
40,364
TOTAL ASSETS
Current liabilities
Long-term liabilities
Equity
23,082
15,229
2,053
40,364
TOTAL LIABILITIES
ADDITIONAL INFORMATION
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
14,857
(1,744)
0.75
0.52
0.01
(0.10)
Figures in million drachmas
Table 29
Source:
(I)
82
AGET
BALANCE SHEET - 1985
Cash
Receivables
Inventories
Total current assets
Plant & equipment
TOTAL ASSETS
569
8,997
4,423
13,989
27,782
41,771
Current liabilities
Long-term liabilities
Equity
TOTAL LIABILITIES
29,944
13,990
(2,163)
41,771
ADDITIONAL INFORMATION
18,059
(4,216)
0.73
0.47
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
0.02
(0.20)
Figures in million drachmas
Table 30
Source: (I)
HALKIS
BALANCE SHEET - 1980
TOTAL ASSETS
37
828
868
1,733
5,618
7,351
Current liabilities
Long-term liabilities
Equity
TOTAL LIABILITIES
3,680
2,331
1,340
7,351
Cash
Receivables
Inventories
Total current assets
Plant & equipment
ADDITIONAL INFORMATION
2,561
144
0.63
0.47
0.01
0.02
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
Figures in million drachmas
Table 31
Source: (7)
HALKIS
BALANCE SHEET - 1981
83
1,681
843
2,607
6,313
8,920
Cash
Receivables
Inventories
Total current assets
Plant & equipment
TOTAL ASSETS
5,201
2,369
1,350
8,920
Current liabilities
Long-term liabilities
Equity
TOTAL LIABILITIES
ADDITIONAL INFORMATION
2,975
179
0.64
0.50
0.02
0.02
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
Figures in million drachmas
Table 32
Source: (7)
85
HALKIS
BALANCE SHEET - 1982
40
2,061
904
3,005
Cash
Receivables
Inventories
Total current assets
Plant & equipment
8,285
11,290
TOTAL ASSETS
5,191
Current liabilities
Long-term liabilities
Equity
4,373
1,726
11,290
TOTAL LIABILITIES
ADDITIONAL INFORMATION
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
4,309
(494)
0.66
0.58
0.01
(0.08)
Figures in million drachmas
Table 33
Source: (7)
86
HALKIS
BALANCE SHEET - 1983
17
Cash
Receivables
Inventories
Total current assets
Plant & equipment
2,293
1,040
3,350
10,384
13,734
TOTAL ASSETS
8,322
5,281
131
13,734
Current liabilities
Long-term liabilities
Equity
TOTAL LIABILITIES
ADDITIONAL INFORMATION
4,493
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
(1,589)
0.70
0.40
(0.25)
Figures in million drachmas
Table 34
Source: (7)
87
HALKIS
BALANCE SHEET - 1984
132
3,573
1,469
5,174
Cash
Receivables
Inventories
Total current assets
Plant & equipment
TOTAL ASSETS
11,484
16,658
13,552
5,980
Current liabilities
Long-term liabilities
Equity
(2,874)
16,658
TOTAL LIABILITIES
ADDITIONAL INFORMATION
5,425
(3,551)
0.72
0.38
0.01
(0.54)
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
Figures in million drachmas
Table 35
Source: (7)
88
HALKIS
BALANCE SHEET - 1985
Cash
Receivables
Inventories
Total current assets
Plant & equipment
101
3,819
1,362
5,282
11,705
TOTAL ASSETS
16,987
Current liabilities
Long-term liabilities
Equity
19,203
5,832
(8,048)
TOTAL LIABILITIES
16,987
ADDITIONAL INFORMATION
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
6,689
(4,969)
0.72
0.28
0.01
(0.70)
Figures in million drachmas
Table 36
Source: (7)
HALYPS
BALANCE SHEET - 1980
Cash
Receivables
Inventories
Total current assets
Plant & equipment
13
99
97
209
1,130
TOTAL ASSETS
1,339
612
519
208
Current liabilities
Long-term liabilities
Equity
1,339
TOTAL LIABILITIES
ADDITIONAL INFORMATION
284
9
0.71
0.34
0.02
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
Figures in million drachmas
Table 37
Source: (6)
HALYPS
BALANCE SHEET - 1981
10
71
106
187
1,249
1,436
Cash
Receivables
Inventories
Total current assets
Plant & equipment
TOTAL ASSETS
703
525
208
1,436
Current liabilities
Long-term liabilities
Equity
TOTAL LIABILITIES
ADDITIONAL INFORMATION
354
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
(9)
0.72
0.27
0.01
Figures in million drachmas
Table 38
Source: (6)
HALYPS
BALANCE SHEET - 1982
Cash
Receivables
Inventories
Total current assets
Plant & equipment
17
133
139
289
1,657
TOTAL ASSETS
1,946
905
650
391
Current liabilities
Long-term liabilities
Equity
1,946
TOTAL LIABILITIES
ADDITIONAL INFORMATION
453
(6)
0.62
0.32
0.02
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
Figures in million drachmas
Table 39
Source: (6)
HALYPS
BALANCE SHEET - 1983
23
204
Cash
Receivables
Inventories
Total current assets
Plant & equipment
TOTAL ASSETS
202
429
2,136
2,565
1,543
744
391
Current liabilities
Long-term liabilities
Equity
TOTAL LIABILITIES
2,565
ADDITIONAL INFORMATION
453
(110)
0.66
0.28
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
0.01
Figures in million drachmas
Table 40
Source: (6)
93
HALYPS
BALANCE SHEET - 1984
Cash
Receivables
Inventories
Total current assets
Plant & equipment
11
215
210
436
3,875
TOTAL ASSETS
4,311
Current liabilities
Long-term liabilities
Equity
2,607
1,483
221
TOTAL LIABILITIES
4,311
ADDITIONAL INFORMATION
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
453
(59)
0.79
0.17
Figures in million drachmas
Table 41
Source: (6)
HALYPS
BALANCE SHEET - 1985
Cash
Receivables
Inventories
Total current assets
Plant & equipment
TOTAL ASSETS
50
265
180
495
5,806
6,301
Current liabilities
Long-term liabilities
Equity
TOTAL LIABILITIES
4,382
1,739
180
6,301
ADDITIONAL INFORMATION
453
(42)
0.91
0.11
0.01
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
Figures in million drachmas
Table 42
Source: (6)
95
TITAN
BALANCE SHEET - 1980
Cash
Receivables
Inventories
Total current assets
Plant & equipment
TOTAL ASSETS
121
1,016
1,839
2,876
5,410
8,286
Current liabilities
3,378
Long-term liabilities
Equity
3,221
1,787
TOTAL LIABILITIES
8,286
ADDITIONAL INFORMATION
5,076
380
0.64
0.85
0.04
0.04
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
Figures in million drachmas
Table 43
Source: (26)
96
TITAN
BALANCE SHEET - 1981
99
1,428
Cash
Receivables
Inventories
Total current assets
Plant & equipment
2,809
4,336
7,155
11,491
TOTAL ASSETS
5,207
4,175
2,109
11,491
Current liabilities
Long-term liabilities
Equity
TOTAL LIABILITIES
ADDITIONAL INFORMATION
5,986
625
0.66
0.83
0.02
0.05
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
Figures in million drachmas
Table 44
Source: (26)
97
TITAN
BALANCE SHEET - 1982
162
1,944
3,157
5,263
9,532
Cash
Receivables
Inventories
Total current assets
Plant & equipment
14,795
TOTAL ASSETS
6,022
5,360
3,413
Current liabilities
Long-term liabilities
Equity
14,795
TOTAL LIABILITIES
ADDITIONAL INFORMATION
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
9,380
479
0.61
0.87
0.03
0.03
Figures in million drachmas
Table 45
Source: (26)
TITAN
BALANCE SHEET - 1983
259
2,213
2,829
5,301
11,066
16,367
Cash
Receivables
Inventories
Total current assets
Plant & equipment
TOTAL ASSETS
6,574
6,418
Current liabilities
Long-term liabilities
Equity
TOTAL LIABILITIES
3,375
16,367
ADDITIONAL INFORMATION
10,705
15
0.66
0.81
0.04
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
Figures in million drachmas
Table 46
Source: (26)
TITAN
BALANCE SHEET - 1984
Cash
Receivables
Inventories
Total current assets
Plant & equipment
TOTAL ASSETS
356
3,641
3,947
7,944
11,886
19,830
Current liabilities
Long-term liabilities
Equity
9,673
6,578
3,579
TOTAL LIABILITIES
19,830
ADDITIONAL INFORMATION
12,130
322
0.65
0.82
0.04
0.02
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
Figures in million drachmas
Table 47
Source: (26)
100
TITAN
BALANCE SHEET - 1985
Cash
Receivables
Inventories
Total current assets
Plant & equipment
361
4,286
3,389
8,036
12,661
20,697
TOTAL ASSETS
Current liabilities
Long-term liabilities
Equity
10,173
6,791
3,733
20,697
TOTAL LIABILITIES
ADDITIONAL INFORMATION
Depreciation
Net income
Debt ratio
Current ratio
Cash ratio
Net profit margin
13,690
301
0.65
0.79
0.04
0.02
Figures in million drachmas
Table 48
Source: (26)
101
Greek cement industry-Productivity
Year
Output/Labor
1975
1976
1977
1978
1979
1980
1981
92
100
120
113
119
124
113
123
136
129
132
1982
1983
1984
1985
Capital/Labor
100
107
105
116
120
160
184
188
195
Table 49
Source: (15)
Productivity
102
100
115
115
115
111
99
86
84
79
78
102
4
CHAPTER
IMPORTANT IMPORTERS OF GREEK CEMENT
Saudi Arabia
4.1.
production could not follow the
Until 1981 the domestic
of the consumption. From 1981 and
very high rate of increase
on,
due
completion
to the
the
units,
new production
of
domestic production has been increasing. In 1984 it accounted
while in 1978 it was only
for almost 40% of the consumption,
the
to
future
position. The
the
competitve, given
of
the
of
rate
countries, which
last
years.
percentage
Between
(33%),
thousand tons in
1979
by
decline
decline
of
the
of the imports came from the
were almost
has been the
Spain who
more
Arabia.
During the last years, 50%
Greece and
be
despite the
the
and
improvements
purchasing power of Saudi
CEMBUREAU
will
port facilities. The factories
the better
exist are being improved,
that already
are built
new factories
exports
where
from
coast
east
its
of
advantage
exporter, taking
an
become
favorable geographic
in
and in the
become self-sufficient in cement
country to
is for
Arabian government
the Saudi
objective of
17%. The
and
biggest supplier
1984,
increasing
totally covered
its
Spain
sales
1979 to 4,027 thousand tons
in the
retained
from
by
its
2,700
in 1984. Greek
103
remained about
exports
given the increase of
thousand tons, but
share
has decreased
increase of
the
market, has
well
as the
from 28%
to 18%
the domestic production,
stagnation of
volume, equal
constant in
the Greek
been the turn
decline in
imports, the Greek
in 1984.
the works
Besides the
one of the
cement exports
towards
to 2,200
resons for
to the
Saudi
the Egyptian
market, as
undertaken by
the Greek
construction firms in the area.
Saudi production increased by
In 1985,
in 1984 to
thousand tons
increase
decline
in
the
of the
domestic
12%, from 8,500
9,500 thousand tons in
production,
consumption by
15%, has
combined
led to
1985. This
with
the
a dramatic
decrease in imports by 38%, (table 50). Greece has managed in
198"5 to
increase slightly its
share in the Saudi
23%, eventhough the quantity exported declined.
market to
104
PRODUCTION AND IMPORTS IN SAUDI ARABIA
(thousand tons)
Year
Production
Imports
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1250( 32%)
1300( 20%)
1292( 17%)
2700(68%)
Consumption
3950
6400
7792
9010
10500
13500
16800
19650
22700
20000
17000
5100(80%)
6500(83%)
7500(83%)
1510( 17%)
8000(75%)
2500( 25%)
3000( 22%)
10500(78%)
4800( 22%)
12000(78%)
12500(64%)
15900(66%)
12000(59%)
7150( 36%)
8300( 34%)
8500( 41%)
9500( 56%)
7500(44%)
ANALYSIS OF IMPORTS
Year
Spain
1979
1982
2734
(34)
3512
(30)
4371
(36)
4714
1983
3237
1980
1981
(38)
(20)
1984
1985
%
4027
(33)
1060
(14)
Greece
2260
(28)
2661
(25)
2341
(20)
2722
(22)
1392
CEMBUREAU
5327
(67)
6587
(63)
6859
(57)
7602
(61)
2180
4693
(29)
6809
(18)
(56)
1721
(23)
3975
(9)
(53)
Table 50
Source: (4,5)
Other
Total
2673
(33)
3913
8000
10500
(37)
5141
(43)
4898
(39)
11207
(71)
5191
(44)
3525
(47)
12000
12500
15900
12000
7500
105
Eimp
4.2.
in
Egypt
the
been
has
two years
last
the
biggest
having surpassed Saudi Arabia. The
importer of Greek cement,
constructing new houses is a result
great needs of Egypt for
of the high population growth, and the move of the population
According to
the cities.
towards
research, 5,000
a recent
destroyed each year in order to
acres of cultivated land are
provide land for the expansion of the cities.
Since
1974,
increasing
at a
thousand tons
the
rate
in 1974,
the same time
1984. At
consumption
of
16.2% per
of
has
cement
15,600 thoudand
it reached
3,000
and from
year,
been
tons in
alomost doubled,
the production has
covering now 42% of the domestic consumption.
In
depending
increase
of
on the
level of
foreign aid,
incentives.
attempt
The
infered from the
production can be
under construction,
increase
to
number of
The production
(table 51).
expected to reach 15,500 thousand
a policy
government with a
favored by the Egyptian
which is strongly
number
production is expected to
term, domestic
the long
domestic
the new units
capacity is
tons in 1990, while it was
only 4,900 thousand tons in 1983.
During the last years the
about 70%
by the countries
cement exports are covered at
members of the
CEMBUREAU. Spain
and Greece are the most important suppliers, supplying 60% of
the
total.
position
The
Greek
relatively to
cement
Spain
industry
who held
has
improved
the first
its
position
106
1984 the Greek share was
until 1980. In
and
offer as
a
increase
the distribution
which simplify
distribution terminals
process
The
Egypt, is basically a result of
of the Greek exports towards
the
32%.
result
competitive
prices.
The
Turkish exports to Egypt have
been rising in the last years,
and
captured 10%
in 1984
Turkish exports
market. In 1985 the Egyptian
5,720
thousand tons.
also increased
thousand tons
Greece,
for the
a
attributed
its
the consumption
tons in 1984
year in
a row
has
been the
exporting 2,708
to 23%,
to the
increase, the
the
total
big increase
by 4.6%.
biggest
thousand
(table 52).
has increased at
consumption. This
of the
has
to 14,020
imports increased slightly
cement consumption in Egypt
smaller than
rate
however,
increasing its share
1985 and
The per capita
Since,
Egyptian market,
of the
supplier
tons in
5th
Egyptian
production increased by 14%, to
from 13,700 thousand
in 1985,
of the
can
be
population. Despite
per capita consumption is
still very low
for a developing country, a fact that under normal conditions
indicates
Greek
that
there
are possitive
perspectives
cement industry in the near future.
for
the
107
PREDICTIONS FOR EGYPTIAN PRODUCTION
(thousand tons)
ALEXANDRIA PORTLAND CEMENT Co
-Old facilities
-Expansion
-Factory AMREYA 1
-Factory AMREYA 2
1984
1986
1988
1990
400
300
400
300
400
300
400
300
-
750
-
1000
800
1000
1000
Total
700
1450
2500
2700
NATIONAL CEMENT Co
-Old facilities
-First expansion
-Second expansion
420
580
240
300
580
1200
300
580
1200
300
580
1200
1240
2080
2080
2080
600
100
100
100
-Expansion 1
1100
1400
1400
1400
-Expansion 2
-
910
1400
1400
800
1400
1400
1400
-
-
950
1900
2500
3810
5250
6200
800
660
600
660
500
660
500
660
-
600
Total
HELOUAN PORTLAND CEMENT Co
-Old facilities
-Factory ASSIOUT
-Factory NAG HAMADI
Total
TOURAH PORTLAND CEMENT Co
-Old facilities
-Expansion
-Quarries
Total
SUEZ CEMENT Co
-Factory SUEZ
-Factory QUATTAMIA
Total
TOTAL-
-
1000
1530
1360
1960
2160
600
800
1000
1000
-
840
1260
1400
600
1640
2260
2400
6500
11220
14390
15540
Table 51
Source: (12)
100
108
PRODUCTION AND IMPORTS IN EGYPT
(thousand tons)
Year
Production
Imports
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
3588(100%)
3632(85%)
3170(76%)
3028(68%)
2987(54%)
3105(53%)
3432(45%)
4800(45%)
5500(43%)
5000(36%)
5720(41%)
97
603(15%)
1000(24%)
1416(32%)
2565(46%)
2810(47%)
4216(55%)
5772(55%)
7300(57%)
8700(64%)
8300(59%)
Consumption
3599
3941
4170
4438
5549
5914
7648
10572
12800
13700
14020
ANALYSIS OF IMPORTS
ANALYSIS OF IMPORTS
Year
Spain
Greece
1979
807
294
(11)
829
(30)
1859
(44)
(32)
1980
1981
1982
1983
1984
1985
%
1156
(41)
1551
(37)
945
(16)
2236
(31)
2257
(25)
1842
(22)
1933
(34)
2960
(41)
2923
(32)
2708
(33%)
Other
Total
1127
1438
2565
(44)
(56)
-
2003
76
(2)
822
(14)
301
(4)
796
(9)
1313
(16)
(71)
3487
(83)
4000
(69)
5705
(79)
6478
(72)
6308
(76)
807
(29)
729
(17)
1772
(31)
1595
(21)
2622
Turkey
CEMBUREAU
-
Table 52
Source: (4,5)
2810
4216
5772
7300
9100
(28)
1992
(24)
8300
109
4.3.
Algeria
The
tons
cement consumption
in 1970
to
8,800
increased
thousand tons
than
that of
which is
in 1980,
1984, (per
(per year
consumption,
the imports in 1980
13.8%). Therefore
tons
the
in
thousand
year
production increased at a rate
increase 10.3%). The domestic
higher
from 1,400
equal
increase
equalled 900 thousand
of the
to 18%
consumption,
against 68% in 1974.
increased, and
Since 1980 imports have
as result that
of the domestic production had
the same time
the
the increase at
consumption reached
in 1984.
thousand tons
8,800
consumption is a result of the
increase of the
to cover
Algerian government
the big
The
plans of the
housing needs
of the
imports were
covered
country.
In
the
mainly by
80% of
period since
the
the CEMBUREAU countries, which
the total
first position,
quantity. Until 1983,
of the total,
provided more than
Spain had
its exports totalling 30%-53%
and it was followed by
to this
held the
of the total,
Greece whose exports totalled 10%-29%
and France whose exports
1984,-however, Greece
terms,
1978,
totalled 10%-21%. In
more than doubled its
attributing
program of Algeria's urban
Greece's
exports in real
participation in
the
development, capturing 41% of the
total Algerian imports.
The Algerian
production in
5,500 thousand tons in 1984
1985 increased by
9%, from
to 6,096 thousand tons in 1985,
110
while at the same time
resulted
in a
thousand tons.
decrease
the consumption decreased by 3%. This
in
its imports
by
Greece, however, remained the
supplier, providing
2,500 thousand
total amount imported, (table 53).
25%, to
2,510
biggest cement
tons, almost 50%
of the
111
PRODUCTION AND IMPORTS IN ALGERIA
(thousand tons)
Year
Production
Imports
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
955( 32%)
1321( 40%)
1820( 47%)
2699( 66%)
3774( 78%)
4156( 82%)
4400( 76%)
4500( 60%)
4800( 59%)
5500( 62%)
2084(68%)
1959(60%)
2155(53%)
1367(34%)
1078(22%)
879(18%)
1400(24%)
3000(40%)
3396(41%)
3363(38%)
2510(29%)
6096( 71%)
Consumption
2938
3280
3880
4066
4852
5035
5800
7500
8196
8863
8606
ANALYSIS OF IMPORTS
Year
Spain
Greece
France
1979
512
(48)
370
263
(24)
183
(21)
227
(16)
304
(10)
609
(18)
1374
(41)
1231
(49)
106
(12)
166
(19)
237
(17)
629
(21)
724
(21)
592
(18)
301
(12)
1980
(42)
1981
459
1982
(33)
1593
(53)
1983
1984
1009
(30)
349
(10)
1985
%
150
(6)
Table 53
Source: (4,5)
CEMBUREAU
Other
Total
197
1078
719
(18)
160
879
(82)
928
(18)
472
1400
(66)
2819
(94)
2681
(79)
2721
(81)
(34)
181
3000
881
(82)
2008
(80)
(6)
715
(21)
642
(19)
502
(20)
3396
3363
2510
112
4.4.
Libya
increeased rapidly until 1974,
The consumption in Libya
500 thousand
from
tons in
3,100 thousand
1970 to
tons in
1974. From 1974 to 1978 there
was a decrease of the imports,
followed by an increase until
1981, when imports reached the
1981, there is a big increase
amount imported in 1974. Since
consumption of cement,
in the
of
based mainly on
the increase
a result, the
imports fell
domestic production. As
the
quantity consumed
of the
from 96%
to 15%
in 1972,
of the
quantity consumed in 1984.
the last
During
mainly by tme CEMBUREAU countries,
In the
quantity imported.
important share
15%
in 1984,
country that
same period,
Spain retained
has imerged as
is Turkey, while a big share
Eastern Europe.
to 4,450
the
domestic
decrease of
tons.
market
since
production by
the quantity
Greece managed
from 15%
the
Greece has
lost an
39% in
1979 to
total amount
share, (15%).
The
to Libya
is captured by the countries of
in 1985 declined
combined with the
7.5%,
resulted
imported by
to increase
to 29%.
its
an important exporter
Libyan consumption
thousand tons. This
covered
which provided 65% ot the
Libyan market, from
of the
while
imports were
years the
five
its share
This, however,
exported
by
increase of
in a
79%, to
by 5%,
dramatic
150 thousand
in the
can be
Greece to
libyan
misleading
Libya,
44
thousand tons, is almost negligible, (table 54).
Characteristic about the Libyan
market is the fact that
113
the
consumption
remained
indicative
per
during
the
about 1,300 Kg. This
constant,
only,
capita
is
considered
to be
last
years
has
number, eventhough
very
high
and
suggests that the domestic consumption is at the limit.
it
II4
PRODUCTION AND IMPORTS IN LIBYA
(thousand tons)
Year
Production
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
500( 16%)
Imports
2591( 84%)
2032( 75%)
1598( 60%)
1212( 53%)
1020( 39%)
'1080( 40%)
1700( 46%)
1800( 41%)
1600( 35%)
700( 15%)
150 (3%)
664( 25%)
1050( 40%)
1079( 47%)
1594( 61%)
1650( 60%)
2000( 54%)
2600( 59%)
3000( 65%)
4000( 85%)
4300( 97%)
Consumption
1267
1060
2291
2291
2614
2730
3700
4400
4600
4700
4450
ANALYSIS OF IMPORTS
CEMBUREAU
Year
Spain
Greece
1979
152
1980
258
(24)
231
(18)
352
(20)
275
(17)
150
(14)
22
(15)
398
(39)
363
96
648
(64)
740
(34)
(9)
(68)
1981
1982
1983
1984
1985
%
(15)
307
(24)
233
(13)
195
(12)
107
(15)
44
(29)
Turkey
531
(41)
325
(18)
344
(21)
133
(19)
(88)
1166
(65)
1072
(66)
523
(67)
86
(57)
Table 54
Source: (4,5)
1144
Other
372
(36)
340
(32)
156
(12)
634
(35)
528
(34)
177
(33)
64
(43)
Total
1020
1080
1300
1800
1600
700
150
115
4.5.
Nigeria
tons
a
1970-1981 at
period
thousand
reaching 7,900
high rate,
in 1981, up from 1,100 thousand tons in 1970, (per year
increase 19.6%). However, the
payments,
continue
which
in a
resulted
90%.
in the
in Nigeria increased
of cement
The consumption
difficulties in the balance of
until
but 34%
of
1981.
accounted for 72% of
domestic production
time,
have
almost
eventhough increased, did not
demand in
the
present
consumption by
decline of the cement
The domestic production,
cover
the
In 1984,
however,
the total quantity
consumed, mainly because of the decrease of the consumption
The
are
imports
at an
countries
increasing
provided 70% of the total
in 1984.
the
The most
first
rate.
The CEMBUREAU
countries
consumption in
is Spain
Greece is holding the
second position
207 thousand tons in
1984 (18%). The
4,100 thousand tons. The
the
quantity
33%
since
tons
almost constant to
increase of the Nigerian production
thousand tons, resulted
imported to 765
1984.
which holds
its share, (1979:26%,
Nigeria in 1985, remained
to 3,340
by
quantity imported in 1979, and 94%
position and is increasing
with exports totalling
thousand
CEMBUREAU
important supplier
1981:34%, 1984:52%).
by 11%,
the
mainly
covered
in a
decrease of
thousand tons, a
decrease by
Greek
exports to
Nigeria
in 1985,
accounting
for
were
11% of
only
the
86
total
quantity imported, (table 55).
Despite the
increase of the consumption
of cement, the
116
per
capita consumption
1981),
which
indicates
supposing
remains
at low
was further decreased
high
that the
possibilities
to 45 Kg in
for
economical problems
surpassed and that its
levels,
(99 Kg
1984. This
increased
of Nigeria
economy will expand.
in
exports,
will be
117
PRODUCTION AND IMPORTS IN NIGERIA
(thousand tons)
Year
Production
Imports
-- -- - -- -- -- -- - -- -- -- -
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
- - -
1380(44%)
1274(38%)
1400(24%)
1500(27%)
2000(35%)
2400(39%)
2700(34%)
3268(44%)
3000(48%)
3000(72%)
3340(81%)
-
- - -
-
- -
Consumption
- -
- -
1738(56%)
2051(62%)
4500(76%)
4100(73%)
4000(65%)
4000(61%)
5200(66%)
4168(56%)
3300(52%)
1145(28%)
765(19%)
- - -
- -
- -
- -
-
- -
-
3118
3325
5870
5570
6000
6100
7900
7436
6300
4145
4105
ANALYSIS OF IMPORTS
Year
Spain
1979
1047
1980
1981
1982
1983
1984
(26)
1347
(34)
1772
(16)
1630
(39)
1427
(43)
599
(52)
1985
221
(29)
Greece
588
(15)
421
(10)
806
(34)
458
(11)
592
(18)
Turkey
Total
1180
(29)
985
(24)
4000
1056
5200
3994
(19)
174
4168
(96)
3235
(4)
(98)
1087
(2)
(94)
727
(95)
(6)
140
2820
(4)
186
(3)
196
(4)
3015
(76)
4144
459
(11)
447
(14)
207
(18)
86
(11)
Table 55
Source: (4,5)
Other
CEMBUREAU
(71)
(81)
65
58
38
(5)
4000
3300
1145
765
118
4.6.
North Yemen
1982, North
Until
expansion,
however,
Yemen, despite
its steady
small
In the
been a
had
there
has
been
consumption of cement
market.
a
tremendous
economic
years,
last
increase
by 152%. The production
in
the
has also been
per year, accounting for 22%
increasing at high rates, 92.6%
of the consumption in 1984, against 10% in 1980.
period 1979-1982 were covered mainly
The imports in the
by
the
quantity
important
Until 1982,
imported.
CEMBUREAU AND 75%
Greece
of the total imports.
of the imports, the
the increase
result of the CEMBUREAU countries,
the
tons
total of
were
1,800 thousand
provided
by
to
industry,
the suppliers
share of Greece, and
the
as a
1,461 thousand
tons imported,
non-members
might be
most
declined. In 1984, out of
of
the
CEMBUREAU.
the Greek cement
countries of
export cement at prices
Europe which
quantity of
the
Since 1983, despite
estimations by executives of
According
of
been the
had
of the
99%
supplier, providing
75%
provided
which
countries,
CEMBUREAU
the Eastern
below cost, (DUMPING),
and they do not want their policy to become known.
The
production
constant,
equal to
of
North
500 thousand
consumption decreased by 35%
decreased by
thousand tons
Yemen
44%, from 1,800
in 1985. Greece
volume of its exports and
in
tons. Since
1985
remained
the domestic
to 1,500 thousand tons, imports
thousand tons in 1984 to 1,000
managed to increase
both the
its share to 417,000 thousand tons
119
and 42% respectively,
56).
an increase by 32%
since 1984, (table
tons)
120
PRODUCTION AND IMPORTS IN NORTH YEMEN
(thousand tons)
(thousand
Year
Production
1975
60( 38%)
60( 23%)
60( 17%)
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
Imports
Consumption
100( 62%)
160
260
360
460
560
665
870
912
2300
2300
1500
200( 77%)
300( 83%)
400( 87%)
500( 89%)
600( 90%)
800( 92%)
688( 75%)
1915( 83%)
1800( 78%)
1000( 67%)
62( 13%)
65( 11%)
65( 10%)
70( 8%)
224( 25%)
385( 17%)
500( 22%)
500( 33%)
ANALYSIS OF IMPORTS
Year
Spain
Greece
1979
54
(11)
56
112
(22)
(9)
1
(64)
636
3
(80)
516
1980
1981
(-)
1982
386
(75)
108
(-)
1983
CEMBUREAU
221
(44)
444
(74)
643
1985
%
(-)
(-)
5
316
3
(18)
417
(42)
156
(26)
157
(20)
520
(75)
110
(25)
(7)
339
(19)
420
(42)
Table 56
Source: (4,5)
279
Total
500
(56)
(80)
(7)
1984
Other
168
1805
(93)
1461
(81)
580
(58)
600
800
688
1915
1800
1000
121
4.7.
Remarks
concentration. Saudi Arabia, Egypt, and
their high degree of
in the
to
completion of
order
in
become
to
exporters. Given
future
their
is most propable that in the future
geographic position, it
competitors.. From
they will become
the
the countries there is an attempt
the
and in
self-sufficient
is evident from
As it
production
their
incerase
Greek cement will
the future demand for
developments.
on these
East and
the Middle
the countries of
production of
analysis, in all of
above
are the developments
the Greek cement industry
North Africa, since
depend
exports. Of great
of the Greek cement
Algeria represent 74%
interest for
exports is
the Greek cement
characteristic of
A major
due to the
1981 and on,
domestic production
new production units, the
has been increasing. Most evident is the case of Egypt, whose
production is expected to
deserves,
however,
to
be
divergence has been observed
the one
forecasted. Often
delayed
and
level;
It
the
mentioned
that
1990. It
significant
between the investment made and
operations at many
production
does not
reach
factories are
the
expected
due to organizational problems.
is
penetration to
evident
therefore
new markets
of the cement importing
because of
the
that
diversification
is necessary.
and
Theoritically all
countries are possible customers for
the Greek cement industry.
either
until
increese by 240%
Nevertheless, this is impossible,
small purchasing
power
of many
of
122
these
countries,
or because of substantial
many competitors of the
advantages that
Greek cement industries have, mainly
the shortest distance.
The attempt
new
markets
was
concentration
countries, (not
category
Saudi
table
cement industry to
evident
87% in
from
increased
more
on
decreased from
derived
of the Greek
Arabia,
1984, to
25,
1985.
The
Egypt,
and
75% in 1985.
Greek cement
in
1985
and by
includes Mauritius,
degree
of
Algeria
has
As it
exports
893%
can be
to
traditional importers of Greek
by 417%
Cameroun, (143
in
expand to
"other"
cement), has
since 1983.
(114 thousand
thousand tons), Lebanon, (53
tons in
This
1985),
thousand tons),
and others.
An impressive
USA, where
entrance was
TITAN exported 590
of growth of the US economy
construction
14,000
can
threaten
thousand
the
tons in
the US
transportation of
transportation
industries
at which
The
Greek
especially
thousand tons. The
cement
in 1985.
share
coal
managed to
of
The Greek
Spain
market in
to
on
for
the US
continent with the
the
TITAN.
market
The
Greek
cement
to a level
competitive price.
has
been
factory of
been modified in order
3,000
combining the
squeeze the freight rates
behalf of
Kamari has already
exported
1985. By
Greece,
totalled
cement industries
which
transportation costs provided a
concern
of the
high rate
imports which
cement to the American
of
the market
in the last 4 years, has boosted
activities and
thousand tons
made in
growing,
TITAN
in
to produce cement
123
US specifications.
according to
creation of
negotiating the
of the US
East Coast
at $40-45
market they expect to
By being able to
offer cement
the US
$60 which is the price in
get a big share of the US market. This
US market,
interest in the
capacity of
with a total distribution
per ton versus
in the
a distribution terminal
tons per year.
2,000 tousand
TITAN is
same time
At the
has been the result of
however,
the appreciating dollar and the decline in the freight rates,
as
well as
According to
the
high
rate of
executives of the
reverse of these trends, as
growth
The importing countries in
exports.
industry, the
debt
of
the
less attractive,
progress is expected.
general, are not expected to
production in the
there is a negative
development, e.g.
excessive and continuous decline of
space
economy.
US
their needs through domestic
future. Unless
enough
high
investment
and, at least in the near future, no
near
cement
Greek
well as the
cement companies have made this
cover all of
of the
in
the
the oil prices, there is
international market
for
the
Greek
124
ANALYSIS OF GREEK EXPORTS
(thousand tons)
1.
Saudi Arabia
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Egypt
Libya
Nigeria
Algeria
Persian Gulf
N. Yemen
Red Sea
Iraq
Jordan
Syria
Tunis
Sudan
Oman
Yugoslavia
UAE
USA
Other
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Saudi Arabia
Egypt
Libya
Nigeria
Algeria
Persian Gulf
N. Yemen
Red Sea
Iraq
Jordan
Syria
Tunis
Sudan
Oman
Yugoslavia
UAE
USA
Other
1975
1976
1977
1978
1979
1980
192
1698
596
412
42
7
54
10
-
810
1253
116
345
601
2
102
102
5
1
1045
55
794
877
495
604
25
205
265
5
72
1933
81
394
493
402
952
10
416
6
2
95
1
35
13
16
14
35
2260
293
405
581
272
139
112
573
102
15
4
71
11
18
10
3
2656
829
363
421
189
15
386
352
497
7
12
53
5
25
7
16
1981
1982
1983
1984
1985
2336
1860
306
806
227
2718
1933
255
453
305
2736
2960
195
617
609
2176
2882
106
207
1354
1721
2708
44
86
1231
635
50
24
70
245
522
74
328
235
40
107
39
135
262
-
316
109
21
2
417
162
3
-
40
27
6
10
12
1
29
5
-
21
-
-
-
-
12
Table 57
Source: (12)
8
-
5
2
72
154
590
643
125
5
CHAPTER
COMPETITORS
countries and the countries
of East Asia
are the
most important
exporters of
the countries of
the Middle and
North Africa
The CEMBUREAU
South Korea),
(Japan,
cement, while
are
CEMBUREAU
countries. The
important importing
the most
of Africa and Asia up to
countries cover basically the needs
the Persian Gulf.
cement
are
exports
appear to
important competitors
The
countries.
be
will
most
the last
and in
be Spain,
countries
two
These
Turkey.
years
CEMBUREAU
the
the Greek
competitors of
most important
Therefore the
examined
analitically later in this chapter.
As
it
has
50% of its production. Eventhough
industry exports more than
the
increasing,
been
the
its
of
volume
exports
the currency
-of
Greece,
dollars in 1985,
international
neutralizes the
has
been
this activity
have
years
last
from
data provided
According to
currency
inflows
were
a decrease by 38% since
dollars). The decline in the
the declining,
in the
inflows
constantly declining.
Bank
This
171
by
million
1981 (274 million
currency inflows is a result of
in US dollars, of
markets.
cement
Greek
the
been mentioned,
alredy
the price of cement in the
continuous decline
beneficial influence of the
in
prices
depreciation of
126
production of
for the
their
loans
sight
the
in
dollars.
depreciation
of
the drachma
May be, if
conditions
perspectives do
not appear
Eventhough at
first
the
Greek
high levels
were held at
competition
the
through, since
such
but
exist,
not
would
is not expected
it
intensive and
in the last years is very
favors
it creates more problems than
the prices
adverse
these
Greek companies, since
are mainly
cement industry, it comes that
it solves.
dollar also
cement. The appreciating
financial cost for the
increases the
the cost
indirectly (electricity, oil)
or
directly (coal),
either
dollar influences,
of
the appreciation
Furthermore
dollar.
US
against
currency),
Greek
(the
drachma,
to change.
the supply by
increase of
demand
of the
decline
especially
countries
production.
An
countries importing
cement,
East
power and
purchasing
lower
and the
improvement
because of
decreased
the
their
their domestic
the increase of
however is
of
The demand
East.
Middle
the Middle
of
the
the developed countries,
of the
of the
those
of
prices is a result
cement
decline in the
The
expected
when
the
Iran-Iraq war and the fights in Lebanon will stop.
In
by
general, importing
the importing
heavy product,
countries, since
and transportation
considerably. Greece has
distance from the Arabian
port facilities,
cement is
consider unprofitable
cement is
a cheap
costs increase
a big advantage on
and
its price
this. Its small
markets and the excellent existing
confine transportation costs
and therefore
127
the
freight rates after 1982 had
the
importance
of
however, facilitated
Greek cement exports to
Another advantage
own
advantage.
It
has,
distant areas,
USA and countries of the Indian Ocean.
especially to
they
as a result the decline in
geographic
this
decline in
that the
price. It must be mentioned
the final
and
of the Greek cement
operate
distribution
industry is that
terminals
near
the
consumption areas.
On
the other
ability to
of
low
hand, some
or
government subsidies.
the
by
some
and importers.
exporters
A
cement industry, as well as
the
countries members
arizes
from the
which offer
cement at
the
Greek
also
other
between
some
for the
Greek
for the cement industries of all
Community,
European Economic
enforced by
DUMPING policy
below
cement at prices
rVery low prices in
many countries
of the
cost. Countries
not interest
hard currency. As an example,
by 10
political,
serious problem
of the
Europe, especially,
Eastern
are
There
high
special varieties
also through
and
religious
relationships,
receive
practiced through
Competition is also
countries.
have the
either because
the
because
primarily,
cement, and
quality of
offered
very low prices,
offer cement at
cost,
foreign competitors
in profits,
order to cover their
sell
needs in
prices in the Middle East fell
dollars per ton as a result of the dumping. Because of
problems
cement
that the DUMPING
industries, it
policy
was
has created
announced on
for the
October 11,
1984, that cement would be subjected to the 1574/70
decision
128
of the Monetary Committee, in order to offset
the taxes that
burden exports, (return of stamp-tax, etc.). However, because
of the
Greek membership in the
European Economic Community,
these subsidies will be in effect only through the transitory
period. Analytically these
subsidies and their
evolution in
the future are:
-Export subsidies on FOB values.
Until 1987: 10%
From 1987: 4.5% on exports to E.E.C.
6.0% on exports to the rest of the world
From 1990: 0%
on exports to E.E.C.
From 1992: 0%
on all exports
-Interest rate subsidies.
Until
6/8/87 : 6%
6/9/87 -3/31/87: 5%
4/1/87-12/31/87: 3%
From
1/1/88 : 0%
-Stamp tax returns.
From
6/30/87: 4.8%
- 7/1/86-12/31/86: 4.56%
1/1/87-2/28/78 : 0.78%
3/1/87-12/31/87: 0.54%
From 1/1/88
Exports, however,
has
: 0%
will not be subject
been in effect in Greece since 1/1/87.
to A.V.Tax
which
129
5.1.
Spain
cement inustry is composed
The Spanish
50 production units with
that own
of
thousand
34,000
per
tons
of 36 companies
total production capacity
These
year.
units
are
geographically distributed as following:
3,000
of
capacity
total production
and
facilities
port
with good
on Atlantic Ocean,
are located
-7 factories
thousand tons per year.
-26
have a
Valenthia. They
of
the
Toledo
and
internal
the
Madrid
mainly
cities,
big
around
country,
in
located
are
factories
of 14,200
total production capacity
thousand tons per year.
Mediterranean, having
are located on the
-17 factories
capacity equal to
facilities and total production
good port
16,800 thousand tons per year.
As
Spanish
export
companies,
oriented
derived
from
over 50%
of
America), and
Furthermore- it
cement production
the
oriented towards
the rest
be
must
Africa
the west,
and
is
Middle
(USA
and
domestic market.
towards the
mentioned
the
of
the distribution
(North
East,
towards
export
is
East), 9%
South
can be
it
that
in
the
first
category are included the biggest and most modern units. This
showes that the
the
main target
Middle
markets
of
markets
to which the
of the
East and
Spanish exports
North
Africa,
the
is the
same
Greek cement industry has concentrated
for its exports, (table 57).
130
The Spanish production in the
stagnation
(around 30,000
however,
years,
the
thousand tons).
production
falling,
is
last two
to
26,200
related to the domestic consumption,
is still, however, high
(16,000
In the
24,200 thousand tons in 1985. It
tons in 1984, and
thousand
last years has shown some
thousand tons
1985), which
in
has been
declining
since 1979.
highest
9,900 thousand
13%
to
to 1983, Spanish exports
increased from
amount exported.
At the same
6%.
In
1984
production, the volume of
towards America
Middle East
decrease
Middle
of the
industry
year for
almost
total
America fell
decrease
of
the
exports remained the same. Exports
the exports towards
exported. This
of the appreciation of the US
dollar and the
purchasing power
In 1985
the
to
decrease
a decline by 18%
had managed to
constant to
11,000
of the
output
Spanish exports as
years they
to Africa
of the
time, exports to
the
in 1970.
of the quantity
continued
thousand tons,
to 91%
despite
declined to 89%
East.
86%
increased to 17%, while
was the result
against
thoudand tons,
and 123 thousand tons
tons in 1980
Middle East
from
with 13,200
period from 1978
In the
and
1983
point in
reaching their
increased rapidly
exports have
Spanish
countries of
of the
and
it
Spanish
cement
reached
24,000
since 1984. 1985 was
well. Eventhough in
keep the volume of
thousand tons,
the
a bad
the last
their exports
in 1985
exports
declined by 24% to 7,800 thousand tons, (table 58).
In
the domestic
market the
consumption is declining.
131
This
is a
result
of
the
decline
of
the
construction
existing shortages in housing.
activities, despite the still
The domestic demend is expected
to remain at the same levels
for the next years.
The
Spanish
cement
concentrate
on exports,
larger than
the domestic
Greece is expected
almost
90% of
towards
the
to be
financing. The
subsidies,
of both
The
the
Community,
and the
of Spain
very
in the
competitiveness of
exports is expected to decline.
this
domestic market,
good
high subsidies, however, will
the entrance
targeted
advantage in
prices in the
and
to be
fact that
countries are
Spanish
to
competition with
intensified, given the
be the higher
because of
continue
will continue
consumption. The
same markets.
government
will
since output
the exports
struggle will
the
industry
terms
of
be interrupted
European Economic
the Spanish
cement
132
SPAIN-EXPORTS
(thousand tons)
1979
1980
1981
1982
1983
1984
1985
807
Egypt
Nigeria
Libya
545
Algeria
S. Arabia 2734
Other Asia
3048
& Africa
1156
1347
258
394
3612
1551
1771
231
459
4371
945
1630
352
1593
4714
2236
1427
275
1009
6046
2257
599
150
349
4027
1842
221
22
150
1060
2070
3747
1498
912
1088
912
USA
876
538
253
334
272
303
54
199
787
1664
3109
CEMBUREAU
129
247
519
642
314
74
28
40
116
18
23
16
Other
108
103
104
38
43
43
411
TOTAL
8813
9814
13444
11683
13072
10267
7803
Country
--
--
---
--
Venezuela
Other
Europe
Table 58
Source: (4,5)
76
133
SPAIN
Year
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
Exports
Production
3,575
4,868
7,919
9,762
8,948
9,938
12,026
11,835
13,250
10,267
7,803
24,404
25,961
29,442
32,064
29,315
29,630
30,493
30,228
31,229
29,643
24,200
Per year change:
3.7%
1970-1984 production:
1.0%
1975-1984 production:
1984-1985 production:-18.0%
Figures in thousand tons
Table 59
Source: (4,5)
(% of Prod.)
exports: 40.9%
exports: 12.6%
exports:-24.0%
14.6
18.8
26.9
30.4
30.5
33.5
39.4
42.4
42.4
34.6
32.2
134
5.2.
Turkey
presence
The
markets
has
Turkey in
become
that
advantages,
of
important
only
after
increasing presence of the
prices, the
has
countries of
with
Its
for the
position, the low
Turkish construction
and the religious and political
companies in the Middle East
that it
cement
1982.
a serious competitor
make Turkey
industry are, its geographic
Greek cement
links
international
the
East and
the Middle
North Africa.
The Turkish cement industry
factories with
with 35
thousand
tons
capacity of
located
total production capacity
per year.
23
of
12,400 thousand tons,
in the
is composed of 15 companies
interior of
of 18,700
the factories
with
(66% of the
total),
the country.
total
6 factories
are
with
capacity equal to 3,700 thousand tons per year are located in
Istanbul. The
and 3
rest factories are
on the Black Sea.
near the sea do not
The
above
located, 3 on
the Aegean
The few factories that
are located
have access to suitable port facilities.
indicate
that
the Turkish
cement
industry
is
oriented towards the domestic market.
In
the
consumption of
period
1970-1985
the
cement has showed, in
production
and
the
general, an increasing
trend. The exports have also increased from 922 thousand tons
in 1975,
to 4,000
result of the
the
exports in
thousand tons
in 1982.
attempt of the Turkish
order to
improve the
This has
been a
government to increase
balance of
payments.
135
to the
given
motives were
Many
exporters,
such as
high
subsidies and financing with very low interest rates.
Almost
towards
of
all
was the
war, totalling
are
of the Middle East
and North Africa.
presence in the Iraqi
market before the
the countries
Impressive
(92%-96%),
exports,
Turkish
the
1,300 thousand tons
in 1982, and
the recent
but stabilized share in the Egyptian market, (table 59).
exercised by
The competition
result of
links that Turkey has with
secondarily
construction
the religious
and political
many countries of the region, and
subsidies. The
high government
of the
markets of
a qualitative or a price competition.
the Middle East is not
It is primarily the
Turkey in the
firms undertaking
works
in
Turkish
East,
the Middle
played a key role in promoting Turkish cement exports.
have
Given the
above, the
industry do
Turkish cement
the
longterm
perspectives of
export
to be
not seem
favorable,
especially if we consider the following:
-The absence of infrastructure
-The absence
by
of competitive cost, which
is now covered
government subsidies.
-The big needs for
The
per
compared
capita consumption
confirms the
cement exports
thousand
of
cement
is low,
(267
Kg),
to that of the CEMBUREAU countries, (442 Kg).
The evolution of
years
construction in the domestic market.
the Turkish exports in
above
estimation.
the last three
Since 1982,
have been continuously declining,
tons in
1982, to
2,330
tons in
Turkish
from 4,000
1983, and
1,930
136
thousand
for 1985.
1984. More
tons in
Despite the impressive increase
by 13%, from 15,700 thousand
tons
in
1985,
Turkey
exporter
in
by
1984 to 1853 thousand tons
from
the
1982,
5th
fell
the numbers
in the production
tons in 1984 to 17,700 thousand
exports decreased
the
thousand tons in
60).
characterisic are
position that
to
the
4%,
from
1,931
in 1985, (table
it
17th
held
in
as
an
1985.
137
TURKEY-EXPORTS
(thousand tons)
1985
1984
1983
1982
1981
1980
1979
Country
---------------------------------------------------------------1313
796
301
822
76
11
Egypt
9
69
232
196
Nigeria
133
344
325
531
96
Libya
1
3
71
28
127
530
Syria
9
68
211
1267
2077
47
Iram
Other Asia
372
775
1223
1227
74
229
& Africa
CEMBUREAU
Other
Europe
Other
33
43
100
-
-
88
221
50
1072
792
3357
4165
2369
147
158
----------------------------------------
TOTAL
For
1979 there are not data per country available.
Table 60
Source: (4,5)
1931
1853
138
TURKEY
Year
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
Production
10,891
12,421
13,869
15,409
13,906
12,910
15,149
15,960
13,863
15,735
17,700
Imports
-
Per year change:
1970-1984 production: 7.1%
1975-1984 production: 4.2%
1984-1985 production:12.4%
Figures in thousand tons
Table 61
Source: (4,5)
Exports (X of Prod.)
922
910
941
821
1,072
788
3,389
4,186
2,331
1,932
1,853
exports: 14.7%
exports: 8.6%
exports:- 4.0%
8.5
7.3
6.8
5.3
7.7
6.1
22.4
26.2
16.8
12.3
10.5
139
CHAPTER
6
PERSPECTIVES OF THE GREEK CEMENT INDUSTRY
6.1.
Domestic Demand
As it
for cement
is a function
both
Greece,
rate of development
domestic demand
activities in
of the construction
public and private. According
construction
private
been mentioned, the
has already
to estimations,
the high
expected to reach
is not
that it enjoyed in the previous decade.
The factors that pose restraints
in the increase of the
construction activities of the private sector are:
-The number of the houses
and in relation
4,500,000
is estimated to be
to the population, it is one
of the highest
in Europe.
-The
higher
increase in
the
cost
of the
houses
at a
rate
than that of the labor.
-The decrease of the rate of population growth.
-The 1ow return of the buildings as an investment.
The
factors
that
increase
the
private
construction
activities are:
-The low quality
of almost 3,000,000 houses
degree balances the big number of houses.
which in a
140
of the
-The attitude
medium-income families, makes the
investment attractive,
residential
since it
high
offers a
degree of safety.
trend for
-The
is
house
increasing
the aquisition
to
perspectives of
The
than those
favorable
second, (summer),
medium-income families.
the
more
construction are
the public
of the
for infrastructure
needs
of a
private, since
projects in
there are
big
and the
the country,
new 5-year plan gives priority to public construction.
In
either
general
constant or
participation
lower than
or lower
the
total
increase at
to
of the public
that
demand
The
per capita
in
Europe, (595
low
rates, since
the
the constant
domestic
consumption is
constant or to increase
consumption in Greece is one of
Kg against 442
for further increase.
remain
sector in construction is quite
houses, the
expected either to remain
to
expected
private septor. Given
of the
for
demand is
slightly.
the highest
Kg), and there is no margin
141
6.2 Exports
in the
some problems
industry faces
Greek cement
The
international markets, the reasons beeing:
-The low price of cement in the domestic market does not
to
companies
subsidize
Greece.
as
decreased the
The
purchasing
in
decline
power
intense
continue to
the
prices
oil
main
of the
have,
much depending on
countries that are as
negative effects on
The
exports.
and will
competition has,
international
exports
their
the Greek
will enable
profits that
for satisfactory
allow
importers
has
of
Greek cement, especially of those in the Middle East.
-The
domestic
has
countries
cement
develo[ed
industry
rapidly,
in
many
importing
imports
replacing
with
domestic production.
- The DUMPING
in
govrnments apply
policy that many foreign
order to promote cement exports.
-The decline of the freight rates has deprived Greece of
its advantage because of its geographic position.
tight
-The
control
of
the
governmental
bureaucracy
creates problems to the Greek exporters.
The effects,
cement industry are
however, on the Greek
not expected to be very serious since:
-The
high
stability,
exports
are
degree
since the
of
concentration
countries
concentrated,
are
on which
in
a
insures
the Greek
better
some
cement
financial
142
position.
not
is
infrastructure
-The
yet
those
in
completed
countries.
war and the fights in Lebanon
-The end of the Iran-Iraq
in the region, since reconstruction
will increase the demand
will be necessary.
oil
from
conversion
-The
to coal,
fuel,
a
as
has
increased the competitiveness of the Greek cement industry by
production cost.
lowering the
decision
-The
the
of
Committee
Monetary
with which
cement will be relieved from export taxes.
Furthermore
for
elasticity
exist
there
because
near future.
and
Even
contractors
when
materials
the
cling
to customary
recognized, time
construction equipment. Also additional
reevaluate --the
decrease
is low
in
planned, and specifications
economic alternatives
some engineers
construction
technological possibilities
are fully
to
commitments
incorporated. Also
having been
low demand
Demand elasticity
certain technological
construction projects previously
for material
expected
is not
cement,
in the
dramatically
the
consumption, given
cement
of
is required
methods.
substitute
to shift
time is necessary to
of
multi-dimensional
end-product differences.
Given the
to
hold its
important
above, the Greek cement
share
in the
competitor will
industry is expected
international
continue to
market. The
be Spain.
most
Since the
143
advantages of -each country
important
changes
market is expected.
in
their
are not
shares
expected to
in
the
change, no
international
144
6.3.
Proposals
Any
created
have
financial
big
to
at
while
expand,
same
the
the
cement
not expected
market is
international
the
time,
repayment,
for
problems
the domestic
companies. Furthermore
and its
past years
in the
heavy borrowing
production
be avoided since
Greek cement industry must
capacity of the
the
the
increase
will
that
investment
competition will become more intense.
markets is necessary, especially
The penetration in new
in
is
population
whose
new
the
services,
The
new
cement
domestic
companies,
(experience and
common effort
promoting and
can
companies
per
capita
for penetrating
domestic
with
already existing markets. Instead
a contractor, Greek
with
the
ventures
joint
be
but
exampe is Sudan
Kg. An alternative
could
markets
companies in
underdeveloped,
and
million
20
is only 25
consumption
as
are classified
start to develope. Such an
will soon
which
to
that
countries
of remaining
partners
become
providing
consulting
know-how).
by
the Greek
distributing Greek
cement companies
cement exports
for
could have
the form of-Common
Greek
construction
of
warehouses accesible
companies. The increased storing
greater
flexibility
to
the
Greek
capacity
companies in
their production.
-Creation of common exporting divisions.
to
all
will allow
marketing
145
-Cooperation
with
agents
domestic
that
have
wil
a
permanent interest for the promotion of Greek exports
Working
penetrating
already
be the
together may
enlarging their
and
new markets
existing markets,
most appropriate
especially
the high
way for
share in
the
competitive
markets of the Middle East.
Another necessary
measure that
should be taken,
price in
the domestic
market to
increase the
above cost,
level
profits
from
so that
selling
in
the companies
the
domestic
is to
a reasonable
are able
to have
market, that
will
ease the pressure that arizes form their high debt.
Cement industry is a very
important sector of the Greek
economy to allow for its bankruptcy.
146
B I BL I OGHIAPHY
1. AGET, Balance Sheets 1979-1985
2. BANK OF GREECE, Information Sources 1978-1985
3. BUSINESS
AND
Cement
FINANCE,
"Future still
promising
for
Greek
Industry", July 17, 1982, p. 18-22
4. CEMBUREAU, World Statistical Review: Exports - Imports
5.
CEMBUREAU, World
Statistical
Review: Trade
- Production -
Consumption
6.
CHALIPS, Balance Sheets 1981-1985
7.
CHALKIS, Balance Sheets 1979-1985
8.
CIMENT ET CHAUX, "L' effort de restructuration de 1' industrie
cimentiere Europeene se poursuit depris une trentaine d'
annees", 11/1985, p. 10-12
9.
CIMENT ET
CHAUX, "L' industrie cimentiere
2/1986, p.13 -15
mondiale en 1984",
147
10. CHOSH, "Efficiency in location
flows: The
and international
Indian cement industry", Amsterdam, 1981
11. EXPRESS, Construction Materials, Athens, June 28, 1973
12. FEDERATION
OF
Review,
13. FRANCIS
THE
GREEK
Statistical
INDUSTRIES,
CEMENT
1985
A., "The
cement industry
1796-1914:
A
history",
London, 1977
14. KASIMATIS P., "The construction in Greece", Athens, 1976
15. KOTSOLIS S., "Greek cement industry", June 1986, Athens, Greece
16. LITTLE.
A.D. CONSULTING FIRM, "The Middle East opportunities
for Greek exports", Cambridge, Massachusetts 1977
17. NATIONAL
STATISTICAL
AGENCY
OF
Statistical
GREECE,
data
1970-1985
18. NIKIFORIADES,
"Electricity in the Greek
Industry", Technical
Chamber of Greece, Athens, 1980
19. O.E.C.D., "The cement industry", Paris, 1975
20. O.E.C.D., "Etudes economiques: Greece", Paris, 1975
148
21. PAPANDROPOULOS
industry?",
22. PAPANDROPOULOS
A.,
times
" Hard
for
the
Greek
cement
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