Chinese Building Materials Enterprises Accelerate Overseas Expansion to Seek New Growth Drivers

China’s building materials industry is accelerating its focus on overseas markets, with a number of listed companies taking frequent actions in overseas mergers and acquisitions, production capacity layout and channel construction. Going global has become an important direction for building materials enterprises to seek new growth momentum amid domestic market adjustments.

Recent moves by building materials enterprises show that listed companies are advancing their overseas expansion through multiple paths. On the evening of April 9th, Keda Industrial Co., Ltd. (Keda Manufacturing) announced that substantial progress had been made in its acquisition of a controlling stake in Guangdong Tefu International Holdings Co., Ltd. (Tefu International). 

According to Securities Times, the transaction price is 7.475 billion yuan, and Tefu International, as the core platform for Keda Manufacturing’s overseas business, currently operates 21 building ceramic production lines, 2 glass production lines and 2 sanitary ware production lines in 7 African countries, with an annual production capacity of about 200 million square meters of building ceramics, 2.6 million pieces of sanitary ware and 400,000 tons of building glass.

On the same day, Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (Oriental Yuhong) announced that its board of directors had approved a proposal for its wholly-owned subsidiary to acquire 100% equity of World Hardware & Plastic Factory Co., Ltd. This acquisition is a key measure to promote its international strategy. Prior to this, Oriental Yuhong has successively acquired Hong Kong Man Cheong Hardware & Building Materials Co., Ltd. and Chile’s Construmart S.A., and completed the delivery of 60% equity of Brazil’s Novakem in February 2026, leveraging the target companies’ local channel networks to achieve rapid market entry and in-depth development.

In addition, a relevant person in charge of Beijing New Building Materials Group Co., Ltd. (North Building Materials) stated at a recent performance briefing that the company’s internationalization focuses on Southeast Asia, Central Asia, Africa, Europe and the Mediterranean region. At present, it has put into production capacity in Tanzania, Uzbekistan and Thailand, gained a certain market share in Tanzania, and its Thai project achieved "production and profitability in the same year". According to Securities Times, North Building Materials is advancing overseas business through greenfield construction and investment mergers and acquisitions.

The accelerated overseas expansion of building materials enterprises is not accidental. Yan Yuejin, vice president of Shanghai Ehan Real Estate Research Institute, told Securities Daily that on the one hand, domestic market demand is still in an adjustment period, with the decline in real estate investment and new construction area suppressing the demand for building materials such as cement and waterproof materials. On the other hand, overseas markets, especially emerging ones, have strong demand for building materials amid ongoing infrastructure construction and urbanization.

Enterprises that took the lead in overseas layout have achieved performance growth. China West Cement Co., Ltd., a Hong Kong-listed company, launched its overseas strategy as early as 2020. In 2025, it achieved an operating income of 9.621 billion yuan, a year-on-year increase of 15.3%, and a net profit attributable to parent of 880 million yuan, a year-on-year increase of 40.5%. Its overseas operating income reached 4.701 billion yuan, accounting for 48.9% of the total.

Industry insiders believe that the growing overseas demand and relatively scattered competition pattern have enabled Chinese building materials enterprises to give full play to their advantages in cost control, engineering capabilities and industrial chain integration. Looking ahead, with the gradual release of overseas production capacity and improved channel systems, the international business of building materials enterprises is expected to continue contributing new growth.