According to a report published by Timetric, ‘Construction in Russia – Key Trends and Opportunities to 2018’, infrastructure construction is the biggest market within Russia’s construction industry. Valued at US$82.4 billion in 2013, it is forecast to grow at a CAGR of 8.49% to 2018 as the government invests in infrastructure projects ahead of the 2018 FIFA World Cup. The country is also investing in improving its road network, with the value of road infrastructure predicted to rise to US$42.4 billion by 2018. In 2013, the value of road infrastructure was estimated at US$29.2 billion, 35.4% of the total value of infrastructure construction.
However, Timetric notes that the current political situation in the region, along with imposed sanctions, could impact the forecast figures.
“Prolonging sanctions would affect the country’s economy, with a negative impact on the construction sector. Investment in the infrastructure sector has one of the largest budgets among governmental development programs. Under difficult circumstances it may be tempting, or even necessary, to reduce it,” said Timetric analyst Andrzej Katolo.
The full Timetric report can be found here.
As reported yesterday, it has been announced that Buzzi Unicem’s subsidiary Dyckerhoff GmbH will acquire Lafarge UralCement for an enterprise value of €104 million. This comprises a 1.1 million tpa cement plant in Korkino, some 40 km south of Chelyabinsk. The purchase will increase Buzzi Unicem’s production capacity in Russia to around 4.5 million tpa. Lafarge will remain present in the country, particularly in the Moscow market, retaining the 2 million t Ferzikovo plant that was inaugurated earlier this year.
Adapted from press releases by Louise Fordham
Read the article online at: https://www.worldcement.com/europe-cis/17092014/growth-predicted-for-russian-infrastructure-construction-sector-497/