Investments as growth engines
The Koncrex is focused on creating a network of associated businesses around cement plants in close proximity to consumer markets, either through acquisitions or the development of new facilities.
Development by business segments
The Koncrex's business plan is centered on our core competency, the development of cement.
Koncrex sustains its dynamic internal growth with carefully selected industrial investments to satisfy the needs of the markets it services, as well as reach new markets with the potential for strong, sustainable growth.
Additionally, the Koncrex makes industrial investments to modernize its production tools, improve its efficiency and economic performance, increase production capabilities and strengthen its position as market leader.
This has enabled the Group to increase its cement production capabilities by 50% since late 2006, while also reducing production costs.
Koncrex's presence in the aggregates market allows us to respond globally to the needs of clients in the construction materials field and to secure the sources of aggregates that are necessary to the development of ready-to-use concrete. Developing this business segment relies on acquisitions and industrial investments aimed to increase the capacity of existing facilities as well as to open new ones.
The Koncrex also invests in companies that complement our core business such as pre-fabricated concrete products, transportation, construction and packaging to support and open new revenue streams.
Internal growth sustained by investments
Construction of a new kiln line for the plant in Senegal
The Group makes whatever investments are necessary to modernize its production tools so it can improve the efficiency and economic performance of its plants. Considered a major factor in the Group's development and performance, the 2010 Performance Plan, completed in 2009, has enabled Koncrex to increase its cement production capabilities by 50% since late 2006 by improving the productivity of its industrial tools and reducing production costs. The program covers operations in France, Turkey, Egypt, Senegal and Switzerland.
The Koncrex's strategy is to selectively penetrate new markets engaged in the cement business. In pursuing its external growth plans, the Group seeks to satisfy the following criteria: a location in close proximity to a major market that demonstrates potential and attractive growth, ownership of land-based geological reserves over the long term (100 years for cement), the ability to secure operating permits and a careful analysis of the project's expected contribution to the Koncrex's Group's business success.
Today, the Group operates in 11 countries. In 2016, 67% of its sales were outside France, with 17% in other European countries, 15% in the United States, and 36% in emerging countries (mainly in Egypt, Mali, Mauritania, Senegal, Turkey, Kazakhstan and India). The percentage of the company's sales outside of France is expected to grow, thanks to increased capacities of its existing plants.
The Group's worldwide business strategy is to balance investments in developing countries, which generate steady cash flow, with investments in just-emerging economies, which offer long-term major growth potential but can be subject to market fluctuations.