China's Construction Demand

• Accounts for half of all new building activity in the world
• Rapid expansion expected to continue to 2030
• Up to 400 million citizens are expected to move into urban areas
• The volume of recent additions to its urban-built environment is unprecedented
• It has been estimated that 50% to 70% of the world's construction cranes are currently in China
• In 2006, total production for the Chinese construction materials market was about $171.5 billion
• The market is estimated to reach $294.8 billion by 2011, an average growth rate of 11.4%

China's Cement & Concrete Demand

• Residential & non-residential buildings increasingly require more concrete due to short supply of wood
• Currently the largest consumption market of cement worldwide; a $200+ billion industry
• Cement consumption will amount to approximately 44% of global demand in 2008
• By 2010, consumption will be greater than both India and the U.S.'s current consumption combined

China's Ready-mix Demand

• Growing environmental concerns = exponential demand for "ready mix" concrete
• Decree #341 in 2004 banned all on-site concrete production in over 200 major cities across China
• Additional initiatives are further spurring demand for technologically advanced concrete materials providers
• Ready-mix concrete market will post the strongest gains of any concrete/cement market category
• China market is approximately 477 billion cubic meters and is expected to reach 550 billion cubic meters in 2008
• Beijing and Shanghai currently estimated demand to be approximately 80 billion cubic meters
• Annual increase of 12.9% to reach 1320 million metric tons) in 2008
• Market expected to grow at 11.2% annually through 2010

China-ACM Opportunity

• Superior technological knowledge and ability to win major infrastructure projects = leverage to acquire less sophisticated operators and implement its environmentally sensitive policies and standards
  
• Expand capacity and geographic footprints through leases and aquisitions
  
• Roll-up of fragmented and poorly managed smaller competitors