The Materials sector can be divided into ‘Chemicals’, ‘Construction Materials’, ‘Containers & Packaging’, ‘Metals & Mining’ and ‘Paper & Forest Products’. These companies are typically at the upper end of the value chain, which produce products that are transformed by other companies. The exception to this rule could be Containers & Packaging, which is typically made from other base products.
Companies in this sector are typically asset-heavy and growth is limited by physical constraints such as the size of a company’s facilities or mines. Some segments in this industry are price-takers, where value is created by location, production efficiency, and/or providing high customer service. Other segments are price-setters where value can be achieved by offering innovative products.
AN Valuations and its global network has a wealth of experience in the Materials industry. Companies trust us for our experience and service-minded approach.