Forecast for construction materials - Cement and aggregates

New studies from The Freedonia Group, Inc., a Cleveland-based industry market research firm forecasts world demand
for cement to grow at a rate of 5.3 percent per year to 3.6 billion metric tons in 2012 and for construction aggregates to
grow at a rate of 4.7 percent annually through 2011 to 26.8 billion metric tons.

The report estimates that the Cement production by plants in India is set to increase at a rate of 8.2 percent per year to
237 million metric tons in 2012. The forecast for Construction aggregates demand in India is expected to rise at a 7.7
percent annual pace to 1.6 billion metric tons in 2011.

Cement forecast up to 2012

Cement gains will be driven by strong increases in cement consumption in the developing countries of the world, fuelled
by rising income levels and a focus on infrastructure development. Additionally, a rebound in cement demand in
industrialized markets such as the US, Japan and Germany will further boost advances.

Gains in global cement demand will slow considerably from the 2002-2007 period, which was characterized by double-
digit increases in demand in China. Since the country accounts for such a large portion of the market -- nearly half of
global cement demand in 2007 -- China is the primary driver of the world cement industry. According to the report,
product demand in India, the second largest national market for cement (though far smaller than first-place China), will
climb at the fastest rate of any major country. Although comparatively small, cement demand in Indonesia, Malaysia,
Nigeria and Vietnam is expected to record gains of seven percent per year or more.

In the developed areas of the US, Japan and Western Europe, cement sales increases will lag the global average,
although improvement over the 2002-2007 period is expected. In the US, for example, the market will benefit from a
recovery in residential building activity, as well as strong government spending on highway and road construction. In
Western Europe, a rebound in construction activity will benefit cement markets in countries such as Germany and
Portugal. A pickup in construction spending in Japan following an extended period of decline will help bolster overall
cement market growth.

The study informs that the demand for straight Portland cement, which currently accounts for 63 percent of all cement
sales worldwide, will be spurred by increases in global construction spending and further advances in manufacturing
technology. However, sales of blended cements will climb at a faster pace through 2012, driven by their relatively low
cost and favorable environmental profile. Ready-mix concrete is expected to be the fastest growing market through
2012, increasing its position as the largest outlet for cement. Consumer demand for cement will also expand at a
healthy pace, stimulated by overall market increases in developing areas, where consumer sales can account for half or
more of all cement demand.

Cement production in India

Demand for cement in India totalled 154 million metric tons in 2007, representing the second largest market in the world
behind China. Sales gains in India have exceeded both regional and global averages over the past decade, rising 7.5
percent per year from 1997 to 2007. Cement demand in the country has been stimulated by healthy increases in both
industrialization-related and infrastructure-related construction activity, attributable in large part to economic reforms that
have attracted significant foreign investment capital. The widespread use of concrete-based construction techniques
has also helped bolster overall Indian cement demand. The consumer market accounted for more than half of all
product sales in 2007. The construction contractor and concrete products markets are the next largest, followed by
ready-mix concrete and other applications.

India is also the second largest producer of cement in the world behind China, with 2007 industry output of 160 million
metric tons. Like China, India is a net exporter of cement, maintaining a trade surplus equivalent to four percent of
domestic production in 2007. Nepal, South Africa, Sri Lanka and the United Arab Emirates are among the biggest export
markets for Indian cement. India's net exports have risen over the decade from 1997 to 2007, driven primarily by strong
demand for cement in coastal Middle Eastern countries such as Kuwait, Yemen and the UAE.

According to the report, the market for cement in India is projected to rise at an 8.6 percent annual pace through 2012 to
233 million metric tons, among the fastest growth rates in the world, accelerating from the 2002-2007 period. Product
demand will be spurred by increasing urbanization, further growth in industrialization-related construction spending and
ongoing government efforts to expand and upgrade the country's physical infrastructure. For example, the eleventh
Five-Year Plan of India allocates $492 billion in infrastructure investment over the period from 2007-2012. The
government also plans to construct 45 million new units of housing by the end of 2012, boosting demand for cement.
Rising urban populations will drive strong increases in the use of cement in ready-mix concrete, with consumer demand
for cement -- which is associated more with rural areas -- growing at a below average pace. As in China, sales of
blended cement will rise at a significantly more rapid rate than Portland cement through 2012, due to government efforts
to utilize the fly ash waste byproducts created through coal combustion. Market gains through 2012 will be constrained
to some extent by greater competition for foreign investment funding as business conditions continue to improve region-
wide.

Cement production by plants in India is expected to increase 8.2 percent per year to 237 million metric tons in 2012,
trailing growth in local demand. Industry output will be driven by an expansion in the nation's production capabilities to
serve the rapidly growing cement market in India.

For example,Grasim Industries is planning a series of capacity expansions by 2010,including new plants in Kotputli,
Rajasthan and Tadpatri, Andhra Pradesh; as well as a new cement production line at its Shambhupura, Rajasthan
facility and an expansion of the company's plant in Pipavav, Gujarat.

However, net exports in India are expected to decline through 2012, and domestic demand consumes more of India's
cement production, as rising capacity in key destinations such as the Middle East reduces export opportunities.

Major locally headquartered manufacturers include ACC Limited, Ambuja Cements, Grasim Industries, India Cements,
JK Cement and Jaypee Group.

Together, these companies account for roughly half of the cement market in India. Holcim, which holds a controlling
interest in ACC and Ambuja Cements, is the leading supplier of cement to the Indian market, followed by Grasim.
Besides Holcim, a number of other foreign multinationals also have cement production facilities in the country, including
CIMPOR, HeidelbergCement, Italcementi and Lafarge.

Global demand for aggregate

Global demand for construction aggregates is expected to grow 4.7 percent annually through 2011 to 26.8 billion metric
tons, valued at $201 billion. Some of the strongest sales increases will be registered in India, already one of the largest
national markets, as well as in China. Smaller markets such as Indonesia, Thailand, Iran and developing countries in
Asia also will record strong gains, spurred by industrialization and continued growth in infrastructure construction.
Growing environmental and land-use concerns will spur above-average sales gains for aggregates composed of
recycled materials such as crushed hydraulic and asphaltic concrete and waste materials such as fly ash and blast-
furnace slag.

The report also states that advances will not be as strong in the developed areas of the world, which include the United
States, Japan and Western Europe. Infrastructure repair and maintenance construction will drive demand in these areas
through 2011. An increase in non-building construction projects in the U.S. also will contribute to overall aggregates
market growth, despite a slowdown in residential building activity.

The non-building construction market, which accounted for more than 70 percent of worldwide aggregates demand in
2006, is forecasted as the fastest growing segment. Gains in non-building construction will predominantly be fueled by
an increase in road and highway construction in developing nations.

According to the report, demand for construction aggregates used in production of asphaltic concrete will climb the
fastest of all major application categories, spurred by growth in road building and maintenance construction worldwide.
Aggregates used in hydraulic concrete applications, which accounted for approximately 40 percent of total 2006 product
demand, are expected to rise at a slightly more moderate pace.

Aggregate production in India

Demand for construction aggregates in India amounted to 1.1 billion metric tons in 2006, making the country the third
biggest aggregates market in the Asia/Pacific region and fourth largest market in the world (after China, the US and
Japan). Sales in India have risen an average of 7.7 percent annually over the past ten years, exceeding both regional
and global averages. A rapidly advancing economy and rising standards of living have helped increase overseas
investment in India, stimulating large amounts of industrialization and infrastructure-related construction activity.
However, Indian product demand (relative to construction spending and on a per capita basis) is substantially below
regional and world averages.

The most commonly used product type is crushed stone, making up 40 percent of total 2006 aggregates demand.
Gravel accounts for the next largest share of demand, followed by sand and other aggregate materials. Much of the
nation's aggregates supply is provided by small, locally based quarry and pit operators, although a few foreign
multinationals, such as CEMEX and Tarmac, operate aggregate mining and processing facilities in India, as well.
Construction aggregates demand in India is expected to rise at a 7.7 percent annual pace to 1.6 billion metric tons in
2011, a deceleration from the 2001-2006 period, but still above projected growth for the Asia/Pacific region as a whole.
Ongoing industrialization and government plans to expand and upgrade the country's physical infrastructure will fuel
market growth. For example, the Indian government has reported plans to invest approximately $500 billion for roads
and railways by 2012. However, as the pace of economic growth and construction activity rises throughout the region,
so will greater competition for funding from foreign investors, which will dampen aggregates demand to some extent.

World Cement (published 04/2008, 435 pages) is available for $5,800 and World Construction Aggregates to 2011
(published 12/2007, 321 pages) is available for $5,200 from The Freedonia Group, Inc.

For more details, please contact:

Corinne Gangloff
The Freedonia Group, Inc.
767 Beta Drive,
Cleveland, OH 44143-2326.
USA
Tel: 440.684.9600,
Fax: 440.646.0484 or
E-mail: pr@freedoniagroup.com
Web: www.freedoniagroup.com

Repairs, rehabilitation, water proofing of existing RCC buildings and durability of new RCC buildings
(structures)

The Institution of Engineers (India) Maharashtra State Centre, is organising a 2-day workshop with practicals on
'Repairs, rehabilitation, water proofing of existing RCC buildings and durability of new RCC buildings (structures)' on
October 4 and 5, 2008 at Mumbai

The course is designed for owners / users, civil engineers, architects, builders, contractors, supervisors, Society office
bearers from top management to grass root level staff.

For more details, please contact :

The Institution of Engineers (India)
Maharashtra State Centre,
15, Haji Ali Park,
K. Khadye Marg,
Mahalakshmi,
Mumbai 400 034.
Tel: (022) 23543650 / 23542943.
Fax: (022) 23542942.
E-mail: ieimsc@gmail.com
Web: www.ieimaharashtra.org

ACI News

216.1-07: Code requirements for determining fire resistance of concrete and masonry construction assemblies

Fire resistance of building elements is an important consideration in building design. While structural design
considerations for concrete and masonry at ambient temperature conditions are addressed by ACI 318 and ACI
530/ASCE 5/TMS 402, respectively, these codes do not consider the impact of fire on concrete and masonry
construction. This standard contains design and analytical procedures for determining the fire resistance of concrete
and masonry members and building assemblies. Where differences occur in specific design requirements between this
standard and the aforementioned codes, as in the case of cover protection of steel reinforcement, the more stringent of
the requirements shall apply. Price: $51.50 (ACI members $31.00).

355.2-07: Qualification of post-installed mechanical anchors in concrete & commentary

ACI 355.2 prescribes testing programs and evaluation requirements for post-installed mechanical anchors intended for
use in concrete under the design provisions of ACI 318. Criteria are prescribed for determining whether anchors are
acceptable for use in uncracked concrete only or in cracked, as well as uncracked, concrete. Performance categories
for anchors are established, as are the criteria for assigning anchors to each category. The anchor performance
categories are used by ACI 318 to assign capacity reduction factors and other design parameters. Price: $56.50 (ACI
members $34.00)

440R-07: Report on Fiber-Reinforced Polymer (FRP) Reinforcement for Concrete Structures

Applications of fiber-reinforced polymer (FRP) composites as reinforcement for concrete structures have been growing
rapidly in recent years. In addition to the material properties of the constituent materials (that is, resins and fibers) and
products, current knowledge of FRP applications, such as internal reinforcement including prestressing, external
strengthening of concrete and masonry structures, and structural systems, is discussed in detail. The document also
addresses durability issues and the effects of extreme events, such as fire and blast. This publication can be ordered in
traditional hard copy or downloaded instantly to your computer in PDF format. Price: $87.50 (ACI members $53.00)

548.8-07: Specification for Type EM (Epoxy Multi-Layer) Polymer Overlay for Bridge and Parking Garage Decks

This Specification covers epoxy multi-layer (EM) polymer overlays for bridge and parking garage decks. Type EM
polymer overlays incorporate a low-modulus epoxy binder and selected aggregate to produce a flexible, skid-resistant,
and waterproof overlay. The overlay may be used for both new construction and rehabilitation. The overlay is placed by
applying the neat epoxy binder to the surface and broadcasting aggregate. This Specification includes requirements for
chemical components, aggregates, storage and handling, surface preparation, surface profile, mixing, placement, and
finishing. This publication can be ordered in traditional hard copy or downloaded instantly to your computer in PDF
format. Price: $27.50 (ACI members $17.00)

For more details, please contact:

American Concrete Institute
P.O. Box 9094
Farmington Hills, MI 48333-9094
USA
Tel: 1-248-848-3800
E-mail: bkstore@concrete.org
Web: www.concrete.org