Amrize Ltd (AMRZ)

Amrize is the North American building business spun out of a European group: cement, concrete and roofing.

Cement and concrete obey the same geography as crushed stone: hauling further than a few dozen kilometres does not pay, so a plant serves its radius and faces almost no competition within it. Building a new plant near a city is blocked by environmental permitting — that is the protection of existing assets.

The separation from the European parent was done so that the American business would be valued by American standards and could allocate its own capital. Demand comes from road and industrial construction supported by government programmes. Risks: energy costs, emissions requirements in cement production and the housing cycle.