Aerated concrete. LSR. Wall materials strengthen the position in the market of aerated concrete

In 2016, the market for aerated concrete in St. Petersburg and the Leningrad Region decreased by 1.4%, which confirmed the experts' forecasts for further decline. Despite the falling market "LSR. Wall materials "were able to increase their share by 3%.

According to the Marketing Directorate of LSR. Wall materials, the capacity of the aerated concrete market in St. Petersburg and the Leningrad Region decreased by 1.4% from 937 thousand square meters to 923,000 square meters in 2016. The main reason is the decrease in construction and the reduction in the number of constructed projects.  

"We expected that 2016 will be difficult for the producers of building materials, and our forecasts have been confirmed," said the manager of LSR. Wall Materials Sergey Begoulev. "Despite the overall market situation, the year for us was successful: thanks to a well-thought-out marketing and marketing policy, we retained the leading position and increased our share."

Leading manufacturers in the aerated concrete market

In 2016, five local producers were still represented in St. Petersburg and the Leningrad Region: the market leader -  LSR. Wall materials, Н + Н, EAB, 211 KZHBI, Stroykomplekt. The companies sell products both in St. Petersburg and the Leningrad region, and throughout the North-West, carrying out supplies to Moscow. The share of nonresident and foreign companies was less than 1%

Based on the results of 12 months, the share of LSR Wall Materials increased by 3% to 36%. From January to May 2016, the company recorded growth in sales of all aerated concrete densities AEROC. In May, LSR Wall Materials broke its own records, selling more than 64 thousand cubic meters of wall material.

The situation in the market

In 2016, the market of aerated concrete preserved the trend of 2015: a decline in developer activity and a slowdown in the pace of construction work reduced the demand for building materials. A number of small factories were forced to suspend production, minor reallocations occurred between existing players. In the conditions of the declining market in 2016, the competitive situation in the sales market, the struggle for customers, has become more acute. To maintain the level of sales, manufacturers conducted incentive events and promotions.

Substantial support to the market continues to be the growth of orders from private customers, who use aerated concrete for the construction of a country house. Seasonality of demand has also been preserved - the peak of sales has traditionally occurred in the spring-summer months.

Forecasts

According to forecasts of the Marketing Directorate of LSR Wall Materials, in 2017 a moderate growth phase will occur on the market. The incentive to this will be an improvement in the situation on the high-rise construction market and the further development of private housing construction. The alignment of the economic situation will also have a positive impact on the aerated concrete market.

If we talk about the cost of building materials, then in connection with the growth in production costs, a slight increase in prices is expected.

For information:

LSR Group — Diversified construction company, which operates in several complementary market segments. The company was established in 1993. The main activities are production of construction materials, construction and development. The group unites enterprises for extraction and processing of nonmetallic minerals, production and transportation of building materials, construction of buildings - from large-panel housing of mass series to elite houses built according to the projects of leading domestic and foreign architects. The core business of LSR Group is concentrated in St. Petersburg and the Leningrad Region, Moscow and the Moscow Region, Yekaterinburg and the Urals Region. In 2015, the revenue of LSR Group (in accordance with the financial statements prepared in accordance with IFRS) was 86,830 million rubles. LSR Group is a public company, its global depositary receipts are traded on the London Stock Exchange, and ordinary shares are traded on the MICEX-RTS Group's stock market.

Source: Press release of LSR Group