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drymix.info Newsletter 287/2023; ISSN Number 1613-0111; 26. May 2023

Is there a Serious Recession in Construction? a commentary by Ferdinand Leopolder
1. In Two Weeks: admmc7/ScalingUp3D 2023, Virginia, USA, June 8+9, 2023: Delegate Info
2. The 7th Latin American Drymix Mortar Conference ladmmc7, São Paulo, 7. August 2023
3. PPM Continues Discussion on Malaysia Sales and Services Tax SST, Meeting in KL in June
4. Promindo Succeeds in Implementing AAC Thinbed Adhesives Standard in Indonesia
5. Brenntag Thailand Joins SEADMA as Distribution Partner
6. Devine Chemicals Joins drymix.info as Industrial Partner
7. Wacker Chemie Completes Polymers Capacity Increase at its Nanjing Site

Is there a Serious Recession in Construction? a commentary by Ferdinand Leopolder
The dynamic and volume of building activities all around the globe must be differentiated by region, often even by country. But one thing can generally been stated: the construction economy has slowed down since last year. The reasons of course are manifold, but the major impact factors are basically three: the worldwide slow down due to the Corona outbreak, inflation, rising raw material and logistics cost => the end of the low-interest area and the war of Russia in Ukraine. These three factors combined seem to make a poisonous mix for growth.

Recently, the German Statistics Office has revised its numbers: now it sees a loss in GDP in two consecutive quarters, which by definition is being called a technical recession. In Germany, effects caused by above factors are eminent: cost of construction has become high, real estate prices drop, orders in construction are stagnant or drop (from March to April by -20%!), new financing is expensive, the backlog of jobs has been finished in the last three years during and after Corona and there is s shortage in skilled and unskilled labor to finish existing orders. All these effects combined lead to a decisive slow down of the construction economy, and thus the demand for raw materials here. When looking over the borders, similar scenarios (although partially for different reasons) can be observed in Western Europe, and particularly in the UK. Drawing the circle even larger using some examples, China is suffering market shrinkage and falling real estate prices since years and the market for building materials in Brasil has become problematic due to political insecurities. From my perspective only the Middle East, and here particularly Saudi Arabia with its announced huge investments has a serious and sustainable growth in construction at the moment.

This outlook might seem dim to you, but I would like to remind everybody that the drymix mortar industry has a unique position amongst the building materials. Drymix mortars and their application make up only 3 to 5% of the entire building cost (new construction, land cost not included) - yet they are absolutely needed for finishing. Drymix mortars are versatile and thus essential for green building, not only in External Insulation and Finishing Systems (EIFS). Drymix mortars have quite some (better: huge) room to grow: currently, still over 65% of the mortars used in construction (mostly volume mortars such as masonry mortars, thick screeds and renders) are being mixed by hand on the jobsites around the globe. And, last but not least, drymix mortars are being used over-proportionally in repair and renovation of existing buildings. The building refurbishing market usually blooms in times like these, when new construction slows down. So, I think, our industry has it in its own hands to make this tight economic situation a bearable one.

1. In Two Weeks: admmc7/ScalingUp3D 2023, Virginia, USA, June 8+9, 2023: Delegate Info

The 7th American Drymix Mortar Conference admmc7 and ScalingUp3D 2023 takes place on Thursday, June 8, 2023 (Byrd Theatre, Carytown, Richmond, VA) and Friday, June 9, 2023 (Downing-Gross Cultural Arts Center, Newport News, VA).

The event also features a a casual delegate get-together at Triple Crossing Brewery, Fulton Hill, Richmond VA on June 8 in the evening. This evening under the stars was made possible by our sponsors Imerys, Nouryon and SGGC. Our buses for Newport News leave at 8.15 am at Richmond Main Street (Amtrac) station. You can find the updated program for both days on our website.

If you have not registered yet, do it now!
From those already on our list we need by e-mail to info@drymix.info two informations:
a) will you participate in our Get-Together in the evening of June 8, 2023?
b) will you take the bus (sponsored by MAPEI USA, thanks a lot!) to Newport News on June 9, 2023?

Special info for drymix mortar manufacturers not yet registered: there are still a few free passes available from some of our sponsors, please enquire with us immediately (supply is limited, acceptance not guaranteed).

Support and/or contributions come from Actemium, Aero Aggregates, Almatis, Baumit, Bischof + Klein, Black Buffalo 3D, Blackburn, Caltra, Calucem, Celanese, Evonik, Haver & Boecker, Imerys, Laticrete, MAI, Maleki, MAPEI, Nouryon, Omya, Organik Kimya, Poraver, Quikrete, SGGC, Testing Bluhm & Feuerherdt and Wacker Chemie. Thank you very much!

Online registration is available on www.drymix.info (Visa and Mastercard only). Admission to admmc7 and ScalingUp3D 2023 is US$ 695, reduced to US$ 580 for drymix.info members and partners; drymix mortar manufacturers pay only US$ 360*. Admissions include all conference materials, breaks and lunch on both days as well as the get together evening on June 8 and the bus transfer to and from Newport News on June 9, 2023. FYI: there are no single day passes available, sorry.

* Attention drymix mortar manufacturers from outside the US (especially but not limited to Canada and México): there is a US$ 100 travel rebate to get from us: please register by e-mail at info (at) drymix.info.

2. The 7th Latin American Drymix Mortar Conference ladmmc7, São Paulo, 7. August 2023

The delegate registration for the 7th Latin American Drymix Mortar Conference on Monday, 7. August 2023 at Espaço Escandinavo, Morumbi, São Paolo, Brasil is running. Drymix mortar and construction chemical producers from Brasil and South America meet and present latest news from the industry. Of course there is ample networking time for all to catch up after such a long absence. The preliminary list of topics can be found on www.drymix.info.

After ladmmc7, on Tuesday, 8. August 2023, we are planning a joint visit to Concrete Show South America (organized by World of Concrete, running until 10. August 2023 at São Paulo Expo), delegates are encouraged to join us.

Admission to ladmmc7 is 450 €, reduced to 350 € for drymix.info members or partners. Drymix mortar manufacturers pay only 190 € (BR$ 1.000) *. For registration, visit our website.

* Attention drymix mortar manufacturers from outside Brasil (especially but not limited to Uruguay, Paraguay, Bolivia and Argentina and): there is a -90 € (-BR$ 500) travel rebate to get from us: please register by e-mail at info (at) drymix.info.

3. PPM Continues Discussion on Malaysia Sales and Services Tax SST, Meeting in KL in June

Perkumpulan Pengilang Mortar Pra-Bancuh Malaysia (PPM, Malaysia Drymix Mortar Manufacturer's Association), SEADMA's Malaysia Chapter, Kuala Lumpur, has recently stepped up activities for a discussion and subsequent revision of Malaysia Sales and Service Tax (SST) HS Code 3824.50.000 for non-refractory mortars and concretes, which is currently set at 10%. Strangely, this SST only applies for drymix mortars while inferior, hand-mixed jobsite mortars are not subject to this tax, especially not the aggregates (sand) used. Also, it seems that the SST is not being implemented/charged for all building materials manufacturers in the same way.

PPM has therefore decided to invite all its members and other Malaysian drymix mortar manufacturers to a seminar on SST to Kuala Lumpur. The full-day meeting will take place in the end of June (week of Monday, 17. June 23, exact location tbd.). This meeting will also serve as an opportunity for PPM members to get to know the proposed new Executive Committee of PPM, namely Terence Yong (running for President), Allan Yeong, Richie Lee and Daniel Leong. An Annual General Meeting (AGM) of PPM is planned for August or September, where the new Executive Committee will be officially presented and elected formally.

The PPM-Seminar on SST is by invitation only and is free of charge, PPM is bearing the cost of the venue and the organization. An invitation with the Agenda will go out to Malaysia drymix mortar manufacturers next week, or whenever date and location are fixed.

4. Promindo Succeeds in Implementing AAC Thinbed Adhesives Standard in Indonesia

The Indonesian Drymix Mortar Manufacturers Association (PROMINDO), SEADMA's Chapter for Indonesia, has recently completed the integration of the standard for the adhesive for autoclaved aerated concrete blocks (AAC blocks) in Standar Nasional Indonesia (SNI). Ruslin Widjaja, Promindo's Executive Secretary has followed the introduction through with the Ministry of Industry (in conjunction with Badan Standardisasi Nasional, BDN) as well as Promindo members and the majority of all other drymix mortar manufacturers in Indonesia.The new standard for thinbed adhesives for ACC Blocks is based upon ASTM C1660-10 (2018), and it specifies performance of such mortar in terms of tensile strength (Splitting Strength Test C1006), with performance values between 0,28 and 0,49 N/sq mm, relative to the compressive strength of the AAC Block itself. In Indonesia the newly introduced standard is registered and in operation now as SNI no.8837-2:2023. This is a great achievement for our industry and enables specifiers to choose the right materials for AAC Blocks - yet another Promindo highlight after the successful introduction of the standard for tile adhesives and grouts back in 2020.

5. Brenntag Thailand Joins SEADMA as Distribution Partner

Brenntag Ingredients of Bangkok, Thailand, has decided to join The South East Asia Drymix Mortar Association SEADMA as Distribution Partner. Brenntag entered the chemical distribution business in 1912, now operating a global network of more than 600 sites in 72 countries with over 17,500 employees worldwide. Brenntag offers industrial and specialty chemicals and ingredients as well as application, marketing and supply chain solutions, technical and formulation support, comprehensive regulatory know-how, and digital solutions to a wide range of industries.

SEADMA warmly welcomes the team of  Brenntag Thailand as Distribution Partner

6. Devine Chemicals Joins drymix.info as Industrial Partner

Devine Chemicals Ltd, UK, has decided to join drymix.info as an industrial partner. Established 30 years ago, Devine Chemicals supplies dispersants, water retention agents, rheology modifiers, wax emulsions and high-performance pigments to a range of industries. Devine's portfolio includes synthetic thickeners under the trade name DeCAL and additives such as defoamers, slip and leveling agents under the trade name AFCONA.
 
We warmly welcome Devine Chemicals to our Community.

7. Wacker Chemie Completes Polymers Capacity Increase at its Nanjing Site

Wacker Chemie AG of Munich, Germany, has completed its new investment in Nanjing, Jiangsu Province, China. The measures included a new pressure copolymerization reactor and a new spray drying unit. According to Wacker, this will more than double production capacity for vinyl-acetate-ethylene copolymer (VAE) dispersions and VAE redispersible powders (Tradename Vinnapas). Wacker invested around 93 mio in its integrated production site for the expansion.


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Editor-in-Chief: Ferdinand Leopolder. 


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Sincerely Yours, Ferdinand Leopolder