Construction Admixture Chemical and Improved Geographical Reach

Rapid industrialization and urbanization are leading to speedy infrastructural development, thus playing a vital role in the development of nations. The construction industry has witnessed expeditious growth with the rising demand for aesthetic and durable infrastructures, resulting in the expansion of the market of construction additives and concrete admixtures. The growing modern infrastructure, increased commercial and residential construction activities, and smart city development projects are creating ample opportunities in the concrete admixture construction chemical market, thus leading the market growth. 

With the rising importance of the concrete admixture chemicals, the global market of the concrete admixture construction chemical is expected to witness strong growth. According to Allied Market Research, the global concrete admixtures construction chemical market is anticipated to grow at a significant CAGR from 2017 to 2023. Market has various types of admixtures like silica fume, fly ash, waterproofing agents, water-reducing agents, air-entering agents, and market is expecting many new products with the latest technological development. 

Due to government regulations that encourage low-cost housing construction and residential projects, the concrete admixture construction chemicals are in high demand. The swift industrial expansion is boosting the use of concrete admixture construction chemicals for the construction of commercial buildings, thus influencing the market revenue.  

The market players are involved in various strategic partnerships, acquisitions and mergers to expand the business and drive greater growth across the industry. Saint-Gobain, a French construction materials manufacturer has announced plans to acquire a leading U.S.-based manufacturer of sustainable construction chemicals, GCP Applied Materials. Saint-Gobain will acquire GCP Applied Materials for $2.3 billion. Saint-Gobain will pay GCP $32.00 per share, in cash for all of its shareholdings. The closing of the transactions is expected by the end of 2022. According to Saint-Gobain's chief executive officer, Benoit Bazin this acquisition marks a "positive step" for the firm in strengthening its global leadership in the construction chemical market and expanding its regional presence in North America and emerging countries. 

GCP Applied Technologies, headquartered in Massachusetts, United States, has a sale of around $1 billion; it has 50 manufacturing plants in 38 countries, and around 1,800 employees. The president and chief executive officer of GCP Applied Materials, Simon Bates considers Saint-Gobain as an ideal partner for GCP’s growth. It has strong financial and commercial resources, along with expertise in innovation and commercialization. As per Saint-Gobain, this acquisition will generate value in the third year after the transaction is completed. Benoit Bazin considers that by combining the innovation capabilities of Saint-Gobain with GCP's strong geographic reach, this deal will result in significant profitable growth and value creation for Saint-Gobain's shareholders, as well as attractive development prospects for both teams around the world. 

GCP's specialty building materials business in North America will be merged into Saint-Gobain's CertainTeed business, which will serve the local clients in the American region after the acquisition closes. Also, concrete admixtures and cement additives will merge with the Chryso company, which Saint-Gobain purchased earlier this year, and bring it under the umbrella of the high-performance solutions segment.  

Euclid Chemical, a prominent provider of concrete and masonry construction products, recently announced the acquisition of Brett Admixtures, a company that has exclusively developed and promoted Euclid solutions since 1998. As per Tom Gairing, president of Euclid Chemical, the company will be able to achieve more growth across the business as a result of this acquisition. This is because Brett Admixtures has a strong understanding of Euclid’s line of products; it has the same corporate culture and practices throughout the organization and has a massive list of loyal customers. 

Along with the market growth, new advancements are in the process of bettering the industry around the globe. Sika, a Swiss chemical business, has developed concrete admixtures which use the Limestone Calcined Clay Cement (LC3) technology to reduce CO2 emissions. This development was made in collaboration with the Swiss Federal Institute of Technology Lausanne. This technology seeks to provide the ease of production of high-quality and long-lasting cement with less clinker. The concrete admixtures from Sika allow calcined clay to be used in concrete while minimizing carbon emissions. This technology gives Sika the possibility to assist the construction sector in adopting it swiftly and efficiently and has the potential to play a big and rising role in the concrete industry.  

Sika has signed a deal to buy MBCC Group, formerly known as BASF Construction Chemicals - a leading global supplier of construction chemicals for CHF 5.5. This acquisition will improve Sika's regional footprint while complementing and broadening its product and solution offerings in core technologies and its Target Markets. The combined company will be a significant accelerator in allowing Sika and MBCC Group customers and the construction sector to accelerate the transition to a more sustainable future. Sika and MBCC Group's combined operational and manufacturing footprints are expected to generate excellent integration possibilities, including revenue and cost synergies. By 2025, annual synergies are estimated to range between CHF 160 and CHF 180 million. Regulatory permission is required for the acquisition. Sika is certain that it will receive the necessary approvals and will work closely with the authorities. The deal is expected to close by year 2022. 

As the construction industry is witnessing a boom, the demand for the concrete admixture construction chemicals market is expected to register phenomenal growth. The ongoing construction projects around the world are expected to drive the demand for concrete admixture construction chemicals. However, the performance of the market is also dependent on government initiatives.