Downstream & Parallel Businesses
At CBA we have extensive experience in both downstream businesses (Readymix Concrete, concrete products, Dry Mortars, Bagged retail products) and parallel businesses such as aggregates quarries and pozzolan extraction businesses and extenders (slag and flyash). In certain markets, such products form an indispensable part of the cement supply chain and as such many cement producers are interested to invest in these businesses.
Recently, in the Western World markets, there has been a propensity by legislators to eliminate coal fired power stations. As such, we see a diminution in the availability of flyash. On the other hand, iron making blast furnaces are now in the hands of very few players wanting to extract as much value as possible from their by-products (GBFS). CBA’s team members have worked in many such projects in the past few years. Our experience spans from studies on extenders (GGBFS – slag, flyash) focusing on availability and economics to due diligence of acquisitions of slag grinding facilities to detailed studies on Limestone Cements. Another area of CBA’s expertise includes “concrete related chemicals”, a most important aspect of the cement downstream product range.
We have also been involved in the management of significant Readymix concrete and dry mortar businesses within a vertically integrated environment. Recently, we have assessed a new aggregate business in terms of strategic positioning and funding propositions. Our experience in the aggregates sector in certain geographies (USA, Europe) is extensive.
If you are considering projects in Downstream & Parallel businesses, please contact us to discuss our expertise.
CBA’s expertise on vertical integration is extensive. See here our high-level thoughts on Vertical Integration