CHILE Construction

Facts & Figures

The construction industry accounts for 7.8% of Chile’s GDP and represents 8.46% of the

employment market.

In 2014 a total 12.8million m2 of planning permission was granted throughout the country, with

record averages for the Chilean equivalent of Class A, B and C* properties.

Total Real Estate market value was US$5.19billion in 2014: US$3.49 billion in flats and US$1.7

billion in houses.

The construction industry accounts for 34% of national solid waste generation and 33% of

Greenhouse Gas emissions. It is responsible for 26% of energy used in the country.

Construction machinery imports reached US$1.8billion in 2014.

Construction materials used in Chile are mainly cement and steel. 84% of cement is produced

nationally and 16% is imported. Steel is similar with 81% national production and 19% imported.

In the months August to October 2015, US$96millon worth of public tenders specifically asking

for bridge construction or reconstruction were posted.

Chile is classified as “Developed” in the PPP Readiness Index by the Economist Intelligence Unit.

Business Opportunities

Chilean authorities took part in a trade mission to the UK at the end of September 2015 to meet with

BRE UK about the construction of 3 innovation parks across Chile.

Sustainable construction is expected to represent 15-20% of the construction sector in Chile by 2025.

Examples of tenders released by the government in 2015:

El Melón Tunnel: US$120million investment

Carriel Sur Airport: US$45 million investment

Diego Aracena Airport: US$48 million investment

Punilla Dam: US$387 million investment

In 2015 the government announced a planned US$2.2billion investment to build 6 new public hospitals

and repair, expand and modernise 56 older public hospitals.

Expertise in building management, waste management and energy sustainability in new and existing

builds is needed in the Chilean market, evident by the existence of government grants and schemes in

these areas.

66%

34%

Sales of Residential Buildings (Billions US$) 2014

Flats

Houses 46%54%

Planning Permission Granted (millions m2) 2014

MetropolitanRegion

Rest of theCountry

*Class A and B = Industry, Trade and Financial Establishments; Class C = Dwellings; Class D = Services

CHILE Construction

Key Players

The “big 5” construction companies in Chile comprises of market leader Salfacorp, followed by Salfacorp-

owned Tecsa Holding, Besalco, Socovesa and Sigdo Koppers.

Construction machinery is imported from all over the world, the market leader is Finning followed by

Komatsu and many others with minority market shares.

The cement market is led by Cementos Bío Bío, Cal INACESA, Ready Mix and Tecnomix whilst steel is

served by two producers: CAP and Gerdau Aza.

Challenges

The new labour reform will strengthen unionism amongst workers.

Lack of land availability in the Greater Santiago area means that 15-25% of property cost comes from

the price of land alone.

Obtaining a building permit can take up to 152 days with 13 different procedures involved (105 and 9

respectively in the UK).

Key Events

October 2015 – International Construction Fair – Santiago, Chile – www.feriadelaconstruccion.cl

November 2015 – Expocorma – Biobío, Chile – www.exporcorma.cl

May 2016 – Expovivienda – Santiago, Chile – www.feriaexpovivienda.cl

How Britcham Chile Services can help you

We offer entry, contact, professional, and growth and development services to facilitate your success in

one of the leading developing economies in the world.

These include:

Market overview & analysis

Identification and assessment of potential business partners

Introductions & appointments

Commercial representation

Marketing support

Networking

Back office and legal support

For more information and further discussion on how we can help, feel free to contact us on:

Telephone: +562 23704175 Email: business@britcham.cl