상품DB/체코 역청질 및 광물성 재료 혼합기 시장동향(2014.12)/역청질과 광물성 재료의 혼합기

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체코 역청질 및 광물성 재료 혼합기 시장동향(2014.12)

게시일

2015-12-17

국가

체코

작성자

오새봄(프라하무역관)

품목

역청질과 광물성 재료의 혼합기

품목코드

847432

작성일자: 2014.12.1

작성자: 프라하 무역관 Mr. Martin Jirovec, 박정현 (jhpark1@kotra.cz)          

1. Demand Trend

□ Construction industry outlook

 ○ Construction industry is one of the most important sectors of the national economy; with a share over 10% of GDP.

 ○ At the beginning of the century, Czech building industry has undergone a period of very rapid development, the volume of construction output grew year on year by 10%. Overall, construction output Czech Republic in 2000~2007 increased by 61%

Year	Construction production index		Buildings		Civil engineering works
	y-o-y	average of 2010=100	y-o-y	average of 2010=100	y-o-y	average of 2010=100
2000		67,5		76,9		48,4
2001	110,4	74,5	110,5	85,0	110,0	53,2
2002	103,0	76,8	102,7	87,2	104,3	55,5
2003	109,3	84,0	105,5	92,0	121,6	67,5
2004	108,8	91,4	107,4	98,8	112,9	76,2
2005	105,2	96,1	104,9	103,7	105,8	80,6
2006	106,0	101,9	105,0	108,8	108,8	87,8
2007	107,1	109,1	110,7	120,5	97,9	85,9
2008	100,0	109,1	96,5	116,2	109,9	94,4
2009	99,1	108,0	93,1	108,2	114,1	107,7
2010	92,6	100,0	92,4	100,0	92,8	100,0
2011	96,4	96,4	99,6	99,6	90,3	90,3
2012	92,4	89,1	93,5	93,1	90,0	81,3
2013	93,3	83,1	94,4	87,9	90,7	73,8
H1 2014	106,0	91,3	105,7	93,7	106,1	86,5

Source: Czech Statistical Office

 ○ In 2013, the construction production fell by 8.3% in y-o-y. Building construction output fell by 8.1% and civil engineering recorded a decline in construction output by 8.8%. Construction output in 2013 decreased compared with conjunctural year 2008 by 25.1%.

 ○ In 2013, the demand for construction industry and its production has decreased for the fifth year in a row, business profitability has reduced, continue of increase of the supply and exceeding demand. Thus the trend continued when construction companies lost their supply of work due to a drop in orders.

 ○ There are too much building capacities on the market at the current level of demand and will undoubtedly result in changes of the market and perhaps even its redistribution in the medium term.

Construction development (Czech Republic, 2009~2013)

Segment	2009		2010		2011		2012		2013
	Nr.	CZK million	Nr.	CZK million	Nr.	CZK million	Nr.	CZK million	Nr.	CZK million
Ground construction	2113	53380	1715	46519	1629	36053	1711	40811	2813	34787
Civil engineering works	2279	140361	2198	75664	1961	82557	2684	70942	3636	76275
from that: Transport infrastructure	935	97502	761	23721	736	27559	1028	27963	1676	45418
Technical infrastructure	1344	43129	1437	51932	1225	54998	1656	42979	1960	30857
Total	4392	194011	3913	122173	3590	118610	4395	111753	6449	111062

Source: UPR Praha

 ○ The biggest crisis of the transport infrastructure construction has come in 2010 when no project has been started and the part of the construction industry has fallen over 75%. The trend has been continuing until the end 2013. Though according to the last development it seems the industry has reachech the bottom and strated to recovery.

 ○ Nevertheless the transport infrastructure construction represents about 25% of the total construction works and over half share of total contracts' value.

□ Construction materials industry

 ○ In the Czech Republic, the industrial production of building materials is carried out and fully operated by private companies after privatization in 1990´s. Czech construction has industrial production of building materials at a rate that is sufficient to the needs of industry.

 ○ Before the crisis (in r. 2007), the offer of building materials was stabilized at a level of about 90 billion CZK/ year, supplied by approx. 250 companies. In general, the production costs are almost at the same level of average prices achieved in the EU. A crucial part of local manufacturers are capitally and organizationally linked with the producers of building materials EU countries.

 ○ From an economic perspective, there is significant distribution of raw materials and manufacturing capacity, which are, except enterprises for manufacturing cement and kaolin, in all regions of the Czech Republic. This fact let to wide spread the quarrying and manufacturing of especially silicate raw materials. Like the entire Czech economy as well as fields of industry of building materials experiencing significant changes as a result of the global economic crisis started after 2007.

 ○ Consumption of building materials is not dependent only on the financial volume of construction work, but also on the type of construction activities, physical volumes of construction and the used technology. This dependence is most obvious in the consumption of cement, which is such an unwritten barometer of the development of construction and investment projects. The latest figures from Cement Manufacturers Association of the Czech Republic shows that the decline continued in cement production in 2013 and significantly lags behind the most successful years 2007 and 2008.

Import and export of HS Code 847432 (Czech Republic, 2000~H1 2014)

(Unit: US$ thousand)

Balance and turnover of HS Code 847432 (Czech Republic, 2000~H1 2014)

 ○ The market of asphalt mixing plants is closely connected to the construction industry. The investments into the infrastructure projects (roads, highways and reconstructions) create the core of demand. As it has been mentioned above, the decrease of public expenditure into the network development has caused significant problems of the whole industry. Companies have missed a demand and therefore didn´t want to invest into new facilities or technology. The overcapacities have made pressure on prices and there were cases of shutting down of some facilities (eg. Bily Kamen in 2012).

Example: production of asphalt mixtures by a company Silasfalt

Source: Silasfalt

Production of selected products in the Czech Republic (2011~2013)

Segment	2011		2012		2013
	US$ thousand	y-o-y (%)	US$ thousand	y-o-y (%)	US$ thousand	y-o-y (%)
Sorting, screening, separating, washing machines; crushing, grinding, mixing, kneading machines excluding concrete/mortar mixers, machines for mixing mineral substances with bitumen	72,192	+36.6	46,342	-35.8	42,937	-7.3
Machines and mechanical appliances, having individual functions, for mixing, kneading, crushing, grinding, screening, sifting, homogenizing, emulsifying or stirring (excluding robots)	32,579	+178.2	28,619	-12.1	17,021	-40.5

Source: Czech Statistical Office

 ○ The Czech goverment has significantly reduced funds for new projects and stopped even the development of new roads. The situation changed in 2014 when the government has announced increase in funding by approximately US$ 250 million to US$ 3.4 billion.

 ○ The praparation works on transport network development has started which should result in increase of road projects and subsequently the demand for asphalt.

 ○ Producers of asphalt material will consider the improving of current facilities according to the demand planning. Though according to the economic crisis there is a change of investors thinking. More companies consider establishment of common mixing plant (more companies own the facility) or to bring used technology from abroad.

 ○ On the other hand companies are looking for costs reduction and performance improvement. Therefore asphalt mixing plants are being upgrated to decrease energy consumption. There are investments directing to insulation of the asphalt storage silos and tanks or piping; more attention is paid to correct setting of burners and its effective utilization.

 ○ Some of companies have decided to bring warm asphalt to the market and have started to purchase technologies for its production as it reduces operation cost comparing to hot asphalt mixtures. The preffered technology is foam bitumen when water and air is added to the mixture at certain stage. The energy consumption of this technology is significantly cheaper when using gas as a fuel.

 ○ The recycling of old asphalt roadway is another trend that seems to be alternative. The advantage lay in economical and ecological sphere - speed and time of reconstruction, the waste management is becomming more important.

Import of HS Code 847432 (Czech Republic, 2000~2013)

(Unit: US$ thousand)

Period	Commodity	Stat. value
2000	Machines for mixing mineral substances with bitumen	1,663
2001	Machines for mixing mineral substances with bitumen	2,678
2002	Machines for mixing mineral substances with bitumen	1,292
2003	Machines for mixing mineral substances with bitumen	1,791
2004	Machines for mixing mineral substances with bitumen	3,920
2005	Machines for mixing mineral substances with bitumen	481
2006	Machines for mixing mineral substances with bitumen	5,374
2007	Machines for mixing mineral substances with bitumen	2,941
2008	Machines for mixing mineral substances with bitumen	12,050
2009	Machines for mixing mineral substances with bitumen	2,775
2010	Machines for mixing mineral substances with bitumen	6,395
2011	Machines for mixing mineral substances with bitumen	25
2012	Machines for mixing mineral substances with bitumen	4,926
2013	Machines for mixing mineral substances with bitumen	2,975

 ○ There are several projects for replacing technology or for brand new mixing plant. Companies mainly preffer well known brands like Ammann or Benninghoven. Since 2012 there have been 5 requested assasments on environment impact which should be done in near futere. Since 2003 there has been constructed or reconstructed 17 asphalt mixing plants in the Czech Republic. Companies looking for upgrading current facilities could be Colas, Viasfalt, Swietelsky asw. Performance about 160 or 240 tons/h is the most common output of requested asphalit mixing plants.

2. Competition Trend

 ○ Local market is well developed and main Eurpean brands are established here. There were different approaches of the main competitors on local market.

Main exporting countries of HS Code 847432 (Czech Republic, 2013)

        (Unit: US$ thousand)

Commodity	Partner country	Stat. value
Machines for mixing mineral substances with bitumen	Slovakia	2,064
Machines for mixing mineral substances with bitumen	Germany	298
Machines for mixing mineral substances with bitumen	Austria	263
Machines for mixing mineral substances with bitumen	Hungary	185
Machines for mixing mineral substances with bitumen	United States of America	165

 ○ Companies like Ammann or Benninghoven have own branches in CEE region.

 ○ Company Ammann has bought local producer of construction cranes and vehicles to continue in production of own construction compact machines and vehicles. The company has several offices and 4 key representatives mainly for street machines. The asphalt mixing plants are promoted and sold via own office in Brno - the second biggest city in the Czech Republic. Ammann also estanblishes regional training centers (including simulator) for asphalt mixing operators to increase the awareness and train partners coplemented by the feedback from customers and operators.

 ○ Benninghoven has had central office that took care about the Czech Republic and Slovakia from Germany. In 2013, the company has decided to open own branch office in the Czech Republic (near Prague) to support local presence, marketing activities, sales and service.

 ○ The Austrian brand Teltomat from GP Günter Papenburg AG has been one of the most important technologies in the past. The Austrian brand is represented on Czech market by company Fama s.r.o.

 ○ The company Ermont/Fayat have some plants in the Czech and Slovakia though its position in not significant on the market. Its position decreases as the representation is insufficient and marketing lackes behind. The company has signed cooperation contract with strong local company Agrotec.

 ○ Local manufacturers and distributors:

  - There is also a Czech significant manufacturer of asphalt mixing plant - company ASKOM. The company has 20years tradition and references in supplying asphalt mixing plants and services in consulting trough renovation of existing plants up to the delivery and installation of a new plant. They provide customized plants according tu customer´s needs. Askom hasn´t supplied any plant in 2013 because of the crisis.

 ○ G Asfalt is the local company doing business in asphalt - mixtures development. The company cooperates with company Askom and local university and have developed a mixing plant for the production of Crumb Rubber modified Bitumen (Asphalt-rubber).

 ○ Baest Machines and structures is the second important player on the market. It is the engineering company supplying steel structures, pressure vessels, tanks for chemical, petrochemical and food industries and agriculture, as well as components and complete units for bituminous mixing plants, concrete mixing plants, silos a hoppers, petrol filling stations and the wide variety of equipment for energy industry and environmental projects, including stainless steel products.

 ○ There are several companies offering mobile machines for asphalt like Wirtgen CZ (brands: Wirtgen, Vögele, Hamm, Kleemann), Bagela/Dokado (brand: Bagela Baumachinen).

 ○ Some part of the asphalt mixing plant are delivered by companies Haveko s.r.o.

 ○ Customers eveluatte propsals and offers not only according to the final price though the mixing technology but incorporate the operational costs and environment.

3. Retail Price Trend & Distribution Structure information

□ Retail price trend

 ○ The economic crisis has brought not only decrease in demand. As companies were not open to do new investments into the technology, suppliers were forced to decrease price. The competition remains or even has strenghten though prices are still low.

 ○ The retail price is hard to define as every project has a different conditions and various additional works and services connected to the renewal/ construction.

 ○ There have been information on a reconstruction of one asphalt mixing plant. The capacity has increased to 160 tons/hour. The price has reached US$ 2.8 million for the total supply including new electric wiring etc. It is important to mention that majority of the supply has been made ‘in house = by customers´ employees which decreases costs.

 ○ The technology itself could vary around US$ 1.8~2.5 million for standard 160 tons type.

 ○ Used technology - Teltomat MT 80 (over 10 years old) costs about 160,000 Eur.

 ○ Asphalt mixing plant Benninghoven TBA 240 U-C (year 2008) - price 750,000 Eur

 ○ Asphalt mixing plant Ammann model 55 (year 1979) - price 20,000 Eur

□ Distribution structure information

 ○ The distribution and service belongs to important part of potential success.

 ○ Service and spare parts for special cases have to be outstanding to compete to well established competitiors like Ammann. In case of a failure of the technology, it is necessary to privide quick replacement that will enable to continue in operation. It is very important for local potential clients.

Distribution structure diagram

Diagram suitable for SPECO if no foreign office

 

4. Summary

 ○ The economic development of the asphalt market segment has gone through hard time in the Czech Republic as the crisis hit the manufacturers through significant decrease of investments from the government. The situation is changing and funds for infrastructure have increased. It should result in larger demand.

 ○ The situation has caused market restructuring and investment postponing. Companies haven´t invest much into new facilities and preffered reconstructure or upgrade of current plants or in some cases import of used plants.

 ○ This creates good starting conditions for new player on the market as companies should prepare new investments into production. It is important to consider the type of possible business model - representation or branch office.

 ○ Finding a local partner/ representative that would secure good marketing is the most important part if SPECO would not consider establishment of own branch for a region at the first time. The partner should provide sales support, repairs and warehouse of spareparts to enable competitive services representing crucial part for customer´s decision. Or it is possible to join forces with some company that could produce some part of the plant locally which would decrease costs (especially transport - eg. storage silos etc.) and could offer interesting synergy.

 ○ The potential client are mainly sceptic to new brands on the market therefore it is important to do first reference eventhough there doesn´t have to be any profit. When there is a reference plant that customers can visit and see on own eyes, sales are much more easier. In general, local companies are aware of the strengths of Korean companies though especially mixing plants they are not sure whether the price would be competitive if transport costs will be included.