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Sector of heavy precast concrete products in Poland with potential for continued consolidation
22 aug 2023
Despite numerous acquisitions completed in recent years, the sector of precast concrete products remains highly fragmented, and it still offers a considerable potential for continued consolidation. New investors emerge on the market practically every year, but they rarely invest in ground-up construction of production plants. They tend to rely on assets of acquired companies or their business partners.
Despite slowdown in the construction sector, the sector of heavy precast concrete products in Poland continues to attract interest from entities hailing from multiple industries. It is practically the only segment of the broadly defined market of construction materials that sees several major acquisitions every year.
Recent years have seen increased involvement of both concrete producers (e.g. Lafarge Polska, Thomas Beton, Betard) and construction companies (Goldbeck, Depenbrock, Dekpol).
Interestingly, practically all market players tend gain a foothold in the Polish precast concrete sector through acquisition of an existing precast concrete plant rather than greenfield plant construction. As far as long-standing producers present in Poland are concerned, there have not been many companies that decided to set up new production plants in recent years, either. These include a new plant built by Grupa Pekabex in Gdansk and the construction of a Rector Polska production plant in Mszczonow.
Revenue reported by top 50 producers from sales of heavy precast concrete products sector topped PLN 3.5bn in 2021. This equals to a little over PLN 70m in sales revenue per company. Most manufacturers of precast concrete products operating in Poland are still relatively small companies, which lack a sufficient scale of business activities. Half of the reviewed companies reported up to PLN 40m from sales of heavy precast concrete products in 2021. Fewer than 20 companies posted PLN 50m-100m in sales revenue. And there were only six companies to book revenue of over PLN 100m.
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