Will the “thawing weather” in the construction market coincide with spring in Russia?

Three thousand years ago, the Egyptians discovered astringency during roasting and fine grinding of rocks, including gypsum and limestone. The Egyptian pyramids still stand precisely due to this. The progress of humanity was moving forward, the pace of construction grew and the majority of buildings were constructed of cement and concrete. Currently, the market of cement, which is called "bread" of the construction industry, as well as the construction materials market in general, are going through some hardships. But it will surely regain the lost positions.

According to the Federal State Statistics Service, 53,6 million tons of cement were produced in 2008. To produce 1 cubic meter of concrete it requires about 400 kg of cement. In connection with this we can conclude that in 2008 there were produced 134 million tons of concrete, of which 40% were used to manufacture dry building mixes, 50% were used to produce structures and elements, and 10% were used for other purposes.

The level of cement production in Russia during the period from January to May 2009 has decreased by 33.2% as compared to the previous period and according to statistics it equals to 14.7 million tons. This means that activity in the market of reinforced concrete structures and construction in general reduced significantly.

The pace of construction really slowed down: in response to the crisis the majority of developers had to freeze some construction projects or to postpone the launch of new projects. The future of the cement and concrete markets depends on the pace of construction. The construction boom and the period when producers could earn easy money and excess profit were wave-washed by the global crisis.

Today the industry is in stagnation, and it will last until the need for building materials is resumed. Manufacturers will have to fight for customers and for their competitiveness. For there are some companies (especially with foreign financing) which take advantages of the market quiet conditions and invest in future productive capacity planning to “pick the plum” in future. Let us remind that some plants were built yet in the Soviet period, and their equipment is now worn out. "Whatever does not destroy me, makes me stronger", so think the manufacturers who consider the crisis as an opportunity for further development and investment in modernization.

The crisis and changes it caused to production of cement and construction industry development in general are extensively discussed in media, at conferences, offices and business meetings. There are taken some specific steps aimed at improvement of the situation.
According to the representative of the Department of Industry and Infrastructure of the Government of the Russian Federation, a package of anti-crisis measures that will overcome the recession and by the end of the year stimulate the economic growth, was introduced to the State Duma.

The majority of analysts predict the revival of the construction industry and production of building materials to take place in spring’2010. It is then when, according to experts, the construction will return to the level of 2006-2007. Spring 2010 is the high time to show your achievements, share experiences, find new customers and partners.

A bit less than a month prior to arrival of the “official” spring - from 2 to 5 February the Sokolniki park will host the International Specialized Exhibition BETONEX / cement, concrete for capital and landscape construction 2010.

Exhibition BETONEX (www.betonexpo.ru) is a unique event bringing together the specialized companies engaged in production of cement, concrete, and numerous equipment for their production.

The exhibition themes cover a lot of related areas, such as concrete transporting facilities, drying systems, monolithic house-building, floors, architectural concrete, and many other things.

The event is organized by MVK International Exhibition Company, one of the leaders of the Russian exhibition market in terms of total exhibition area, turnout of exhibitors and visitors, and ability to handle numerous responsibilities from hotel accommodation, and customs clearance, to sightseeing program and delivery of flowers to the exhibition stands. Apart from offices in Russia, MVK Company has subsidiaries in Toronto, Frankfurt am Main, Tel-Aviv, Shanghai and Istanbul.

One of the most important partners and co-organizer of the exhibition is the Union of Cement Manufacturers Soyuzcement.

The exhibition features a highly topical event program. The core issues of discussion will be those of the global economic crisis, the results of the “off-year” in the construction industry. The effect of the government's anti-crisis measures in the construction market and the forecast for the nearest future are no less topical issues.

Among the exhibitors are the industry leaders: EVROMEK, S.R.S. - Concrete lines and plants; EUROCEMENT – Cement production, Lafarge - Cement, concrete; SEBRYAKOVCEMENT - production of clinker and cement, and many other Russian and foreign companies.


Betonex 2010 will be held for the eighth time. Throughout its long history the exhibition has gained high reputation among the leading companies and industry professionals.

BETONEX will be held as a part of the 18th International Construction Week STROYTECH 2010, the leading specialized exhibition of the construction industry. The exhibition occupies four modern exhibition pavilions. Attendance capacity of STROYTECH is about 8 000 people. And more than 200 companies take part in the exhibition which geography comprises a plethora of Russian regions. Along with domestic producers the exhibition welcomes the companies from CIS countries, the exhibition also enjoys popularity in Europe and the Middle East.


What will the coming year bring us, will the construction industry enjoy the long-awaited thaw, will the numerous construction sites be put in operation – only time will tell. In the meantime, we should hope for the better, develop the anti-crisis strategy, fight for every customer and make the right investment!

[Thursday, February 18, 2010]